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        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, February 3, 2010, Vol. 11, No. 023

                            Headlines



C R O A T I A

JADRANSKA PIVOVARA: To Face Liquidation if Buyer Not Found


G E R M A N Y

E-MAC DE: Fitch Affirms Ratings on Class C Notes at 'CCC'
GENERAL MOTORS: Must Boost Contribution to Opel Unit, Germany Says
HECKLER & KOCH: S&P Gives Negative Outlook; Affirms 'B-' Rating
RIMMELE: Acquired by Austria's Wienerberger; Terms Not Disclosed
S-CORE 2007-1: S&P Affirms 'D' Rating on Class F Notes

SUEDZUECKER INT'L: Fitch Affirms 'BB+' Sub. Hybrid Bond Rating
TITAN EUROPE: Moody's Reviews 'Ca' Rating on Class E Notes

* GERMANY: Merkel's Coalition Divided Over Bank Bailout Fund


G R E E C E

* GREECE: EU to Impose Stringent Rescue Measures


I R E L A N D

B&R HOMES: Creditors Meeting Set for February 10
HEAVEN AND EARTH: Creditors Meeting Set for February 16
HUBERT TULLY: Creditors Meeting Set for February 16
KELSEY MANUFACTURING: Appoints David Van Dessel as Liquidator
KEVIN ARUNDEL: Creditors Meeting Set for February 9

MEGHNA LIMITED: Creditors Meeting Set for February 12

* IRELAND: NAMA Will Miss Feb. 12 Target Date, Awaits EU Approval
* IRELAND: Corporate Insolvencies Down 34% in January 2010


I T A L Y

FIAT SPA: Expects Car Sales to Drop in Italy in Coming Months


N E T H E R L A N D S

LISTRINDO CAPITAL: Moody's Affirms 'Ba2' Senior Debt Rating


R U S S I A

GLOBEXBANK CJSC: Fitch Assigns 'D/E' Individual Rating


S P A I N

BBVA FINANZIA: S&P Lowers Rating on Class C Notes to 'BB-'
CIRSA GAMING: Moody's Reviews 'B2' Corporate Family Rating
FONCAIXA FTGENCAT: Moody's Confirms 'Ba2' Rating on Class D Notes
PYMES BANESTO: Fitch Junks Rating on Class C Notes From 'B'

* SPAIN: 12.1% of Companies Have High Risk of Defaulting in 2010


S W E D E N

FORD MOTOR: Resumes Vehicle Production in China


T U R K E Y

ANADOLU EFES: Fitch Gives Stable Outlook; Affirms 'BB+' Ratings
DOGAN YAYIN: Court Cancels TRY772.5 Mln Tax Penalties


U K R A I N E

BANK KHRESCHATYK: Moody's Withdraws 'E+' Bank Strength Rating
CONCERN STIROL: Fitch Withdraws 'B-' Issuer Default Rating


U N I T E D   K I N G D O M

ABITIBIBOWATER INC: Bridgewater Unit Files for Administration
BRITISH AIRWAYS: AA-Iberia Tie-Up Close to Securing EU Approval
COCKBURNS OF LEITH: Suitors Have Until Today to Submit Bids
EXPRESS SERVICE: In Administration; 30 Jobs at Risk
KAUPTHING SINGER: PwC Will Take Claim Against Parent to Court

LINKTIP: In Liquidation; About 10 Jobs Affected
MADOFF SECURITIES: Yacht Dispute Shouldn't Be Decided in U.K.
MOUCHEL GROUP: Lenders Agree to Ease Fixed Charge Cover Covenant
MULTIBUILD HOLDINGS: Balfour Beatty Buys Two Units for GBP1.9 Mln
READER'S DIGEST: UK Arm Faces Collapse After Pension Deal Fails

ROYAL BANK: JPMorgan Has Concerns Over Sempra Commodities Deal
SOVEREIGN MARINE: US$30 Million to Be Distributed to Creditors

* UK: Fiscal Policy Fails to Help Stresses on Businesses, PwC Says


X X X X X X X X

* IATA Expects More Bankruptcies in Global Airline Industry
* Political Interference Greatest Risk Facing Banking Industry
* European Real Estate Sector in for Long, Slow Haul to Recovery

* Brown Rudnick Elects Four Lawyers to the Firm Partnership




                         *********



=============
C R O A T I A
=============


JADRANSKA PIVOVARA: To Face Liquidation if Buyer Not Found
----------------------------------------------------------
STA reports that Slovenian beverage group Pivovarna Lasko is
selling its 99% stake in Croatian subsidiary Jadranska pivovara.

According to the report, Jadranska pivovara chief executive Nenad
Buljan said Wednesday last week the subsidiary will be liquidated
if the Slovenian owner fails to find adequate buyer soon.


=============
G E R M A N Y
=============


E-MAC DE: Fitch Affirms Ratings on Class C Notes at 'CCC'
---------------------------------------------------------
Fitch Ratings has downgraded the class A and B notes of E-MAC DE
2005-I B.V., E-MAC DE 2006-I B.V. and E-MAC DE 2006-II B.V.,
respectively.  Fitch has simultaneously removed the affected notes
from Rating Watch Negative, and assigned Outlooks among other
rating actions.

The transactions are securitizations of German residential
mortgage loans originated by GMAC-RFC Bank GmbH.

The rating actions on the class A and B notes reflect a further
deterioration in the transactions' performance in terms of
delinquencies of three months or longer.  Additional data which
the agency has requested on defaults and property foreclosures in
the underlying mortgage pool, as well as information on the timing
of loss declaration, has mostly not been received to date.  The
agency has therefore made conservative assumptions on the level of
defaults based on the current arrears levels and available
information on losses.

Whilst the agency had already downgraded the three transactions'
junior tranches in 2008, the class A notes (classes A1 and A2 for
E-MAC DE 2006-II) have been downgraded to reflect concerns about
future performance and the limited data availability.

Having incorporated more conservative foreclosure frequency and
market value decline assumptions, compared with the initial
ratings, for all classes of notes, Fitch has resolved the RWN
status.  The agency has assigned Stable Outlooks to the class A, B
and C notes.  A Negative Outlook has been assigned to class D
notes as the future performance of the transactions remains
uncertain.

At the November 2009 payment date, the number of loss declarations
in the three transactions increased significantly: losses
resulting from 10 loans (E-MAC DE 2005-I), 12 loans (E-MAC DE
2006-I) and 13 loans (E-MAC DE 2006-II) were declared.  More loss
declarations are expected by Fitch for the next payment date.
While excess spread was sufficient to cover losses in E-MAC DE
2005-I and E-MAC DE 2006-II, it did not cover all the losses in E-
MAC DE 2006-I.  Therefore, the reserve fund was drawn and now
stands EUR843,778 below its target level of EUR9,500,000.  The
class F notes of E-MAC DE 2006-II were paid in full at the August
2009 payment date.

Fitch has continued to request additional information and data
with the aim of reducing uncertainty regarding the future
performance of the transactions.  More clarity has been reached on
the investor reports, leaving only minor questions like the
definition of certain figures outstanding.  However, no clarity
could be ascertained on the timing of loss declaration.  Whilst
additional losses have been declared, the figures remain low
compared to the continued high arrears levels.  The servicer has
committed to deliver additional data to back up the agency's
assumptions on the level of defaults as well as on the severity of
losses.  Such data has not yet been received.  Fitch considers the
responsiveness and communication with GMAC-RFC to be below market
standards.

The ratings actions are:

E-MAC DE 2005-I B.V. (E-MAC DE 2005-I):

  -- Class A (ISIN XS0221900243): downgraded to 'AA' from 'AAA';
     removed from RWN; assigned Stable Outlook; Loss Severity
     rating is 'LS-1'

  -- Class B (ISIN XS0221901050): downgraded to 'A' from 'A+';
     removed from RWN; assigned Stable Outlook; 'LS-4'

  -- Class C (ISIN XS0221902538): affirmed at 'BBB-'; removed from
     RWN; assigned Stable Outlook; revised to 'LS-4' from 'LS-5'

  -- Class D (ISIN XS0221903429): affirmed at 'B+'; removed from
     RWN; assigned Negative Outlook; 'LS-5'

  -- Class E (ISIN XS0221904237): affirmed at 'CCC'; Recovery
     Rating (RR) of 'RR5'

  -- Class F (ISIN XS0221922056): Paid in Full

E-MAC DE 2006-I B.V. (E-MAC DE 2006-I):

  -- Class A (ISIN XS0257589860): downgraded to 'A+' from 'AAA';
     removed from RWN; assigned Stable Outlook; 'LS-2'

  -- Class B (ISIN XS0257590876): downgraded to 'BBB' from 'A';
     removed from RWN; assigned Stable Outlook; 'LS-4'

  -- Class C (ISIN XS0257591338): affirmed at 'BB'; removed from
     RWN; assigned Stable Outlook; revised to 'LS-5' from 'LS-4'

  -- Class D (ISIN XS0257592062): affirmed at 'B'; removed from
     RWN; assigned Negative Outlook; 'LS-5'

  -- Class E (ISIN XS0257592575): affirmed at 'CCC'; 'RR5'

  -- Class F (ISIN XS0257704717): Paid in Full

E-MAC DE 2006-II B.V. (E-MAC DE 2006-II):

  -- Class A1 (ISIN XS0276932539): downgraded to 'A+' from 'AAA';
     removed from RWN; assigned Stable Outlook; 'LS-2'

  -- Class A2 (ISIN XS0276933347): downgraded to 'A+' from 'AAA';
     removed from RWN; assigned Stable Outlook; 'LS-2'

  -- Class B (ISIN XS0276933859): downgraded to 'BBB' from 'A';
     removed from RWN; assigned Stable Outlook; 'LS-4'

  -- Class C (ISIN XS0276934667): affirmed at 'BB'; removed from
     RWN; assigned Stable Outlook; 'LS-5'

  -- Class D (ISIN XS0276935045): affirmed at 'B'; removed from
     RWN; assigned Negative Outlook; 'LS-5'

  -- Class E (ISIN XS0276936019): affirmed at 'CCC'; 'RR5'

  -- Class F (ISIN XS0276936951): Paid in Full


GENERAL MOTORS: Must Boost Contribution to Opel Unit, Germany Says
------------------------------------------------------------------
Germany wants General Motors Co. to increase its contribution to
the Opel unit's reorganization before considering whether to
provide state aid, Andreas Cremer at Bloomberg News reports,
citing two people familiar with the matter.

GM has said it will provide EUR600 million (US$836 million) for
Opel's restructuring and ask for as much as EUR2.7 billion from
European governments, including the U.K., Spain and Poland,
Bloomberg discloses.

Bloomberg relates the people said Germany made money available
last year to keep Opel afloat and is more cautious about providing
aid after GM backed out of an agreement to sell the unit to Magna
International Inc., the bidder favored by Germany.

According to Bloomberg, the people said the German government
expects GM to file a request for state loans by mid-February.

Bloomberg relates Stefan Weinmann, a spokesman for GM Europe, said
Opel plans to put in a request for financial aid once the review
is completed as early as this week.

"The German government has set out a process for how to apply for
aid, and we're following that," Bloomberg quoted Mr. Weinmann as
saying.  "Part of the requirement is to have an outside party
review the request."

Bloomberg notes the people said Dusseldorf-based auditing firm
Warth & Klein GmbH was hired to evaluate Opel's cost-savings plan
and the results of its study will form the basis of GM's
application.

                        About General Motors

General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908.  With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries.  GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling.  GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany.  GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.

GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code.  Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.

At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.

                    About Motors Liquidation

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.

The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts.  Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company.  GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel.  Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors.  GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


HECKLER & KOCH: S&P Gives Negative Outlook; Affirms 'B-' Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Germany-based small-arms defense contractor Heckler &
Koch GmbH to negative from stable.  At the same time, S&P affirmed
the 'B-' long-term corporate credit rating on HK and the 'B-'
issue rating on the EUR120 million 9.25% senior secured notes
issued by the group.  The recovery rating on these notes is
unchanged at '4'.

"The ratings on HK primarily reflect S&P's view of the group's
very high leverage, "very aggressive" financial policy, small
size, limited liquidity, and relatively low customer and
geographic diversification," said Standard & Poor's credit analyst
Andres Albricci.  "Nevertheless, the group benefits from leading
niche market positions, strong technological expertise, and
relatively good visibility on revenues."

HK's operating performance in the first nine months of 2009 was
quite good, with revenues of EUR163 million, more than 26% up from
the same period in 2008.  Reported EBITDA was up by about
EUR4 million to EUR34.2 million.  Profitability over the period
was slightly down from the same period in 2008; the EBITDA margin
was 21%, compared with 23%.  This decline was mainly due to a
relatively weak third quarter; nevertheless S&P anticipates that
HK will likely achieve an EBITDA margin of 21% for the full year,
in line with 2008.

S&P views HK's financial risk profile as highly leveraged,
underpinned by a financial policy that S&P consider "very
aggressive", "very weak" liquidity position and high level of
debt.  S&P adjusts reported debt by adding the value of the
payment-in-kind (PIK) notes of EUR100 million nominal value,
issued by HK's indirect parent, Heckler and Koch Beteiligungs GmbH
(HKB; not rated); these notes were worth about EUR152 million
including accrued interest at the end of 2009.  Since any early
repayment of HK's outstanding bond would require a proportional
reduction of HKB's PIK notes, S&P believes HK's ability and
willingness to refinance are limited by the decision of its
shareholders to link the repayment of the PIK notes to the
repayment of the bond issued by HK.  In addition, HK decided to
pay dividends to its shareholders in the last quarter of 2009; S&P
views this decision as a negative, and believe that it further
weakens HK's liquidity position and highlights the aggressiveness
of its financial policy.

The group's credit metrics are weak, in S&P's view, due to the
high level of debt and limited cash flow generation.  Funds from
operations (FFO) generated in the first nine months of 2009 were
about EUR18 million, and free operating cash flow was about
EUR27 million.  The higher level of FOCF is explained by a
significant positive working capital inflow of about
EUR17 million, which more than offset capital expenditures of
EUR8 million.  Overall, S&P anticipate that credit metrics at the
end of 2009 will be only marginally better than in 2008, when FFO
to debt was 10.3% and debt to EBITDA was 7.5x, mainly due to
higher EBITDA and FFO levels.

"The negative outlook reflects S&P's view of the increasing risk
that HK might not be able to successfully refinance its bond
maturing in 2011," said Mr. Albricci.  "It also reflects S&P's
view of HK's "very aggressive" financial policy, which led to the
decision to start paying dividends despite HK's "very weak"
liquidity position and refinancing needs."

S&P will closely monitor HK's situation in the coming months.  S&P
could lower the ratings if S&P see a growing risk that the group
is unlikely to refinance the bond.  Similarly, S&P could lower the
ratings if S&P came to believe that HK's liquidity position is
worsening further.

S&P could revise the outlook to stable if S&P were to become more
certain that HK will be able to refinance its bond.  Any revision
of the outlook would also depend on S&P's assessment of HK's
liquidity position and financial policy at the time of the
refinancing.


RIMMELE: Acquired by Austria's Wienerberger; Terms Not Disclosed
----------------------------------------------------------------
Flemming E. Hansen at Dow Jones Newswires reports that
Wienerberger AG said Monday it acquired insolvent German clay
block producer Rimmele for an undisclosed sum.

Dow Jones relates Austria-based Wienerberger said the transaction
was completed in January in the form of an asset deal.

Rimmele, Dow Jones discloses, employs 28 people and generated
revenue of EUR8.5 million in 2008, but was recently declared
insolvent.

"We reacted quickly and used the opportunity presented by these
bankruptcy proceedings to strengthen our regional portfolio in
Germany," Dow Jones quoted Wienerberger Chief Executive Heimo
Scheuch as saying in a statement.


S-CORE 2007-1: S&P Affirms 'D' Rating on Class F Notes
------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
S-CORE 2007-1 GmbH's class A1, A2, B, C, D, and E notes and S-CORE
2008-1 GmbH's A1, A2, B, C, D, and E notes.

The rating actions on S-CORE 2007-1's notes follow S&P's
assessment of continued deterioration in the underlying portfolio.
According to the latest available information, the weighted-
average equivalent rating of the assets in the portfolio was 'B',
as opposed to 'BBB-' at closing.  While the current asset
weighted-average rating of 'B' is the same as the level in
September 2009 (when S&P placed S-CORE 2007-1's notes on
CreditWatch negative), some further assets have defaulted since
September 2009.  These defaulted assets are no longer included in
this average because they no longer form part of the collateral.

Since closing, S-CORE 2007-1 has registered nine defaulted loans
for a cumulative amount of EUR22.2 million (with three accounting
for EUR4.2 million since the September CreditWatch placement).
Available excess spread is not sufficient to cover these defaults,
resulting in a full depletion of the cash reserve and an uncured
principal deficiency ledger (PDL).  The current balance of the PDL
is EUR10.96 million, an increase of EUR1.8 million over the
balance reported in the previous quarter.

A further contributing factor to the action on S-CORE 2007-1, has
been S&P's assessment of the deterioration in the credit quality
of the 10-largest obligors in the transaction.  At closing, these
accounted for 19.39% of the total portfolio and were all rated
above iBBB- according to Deutsche Bank AG's internal rating scale.
As of Dec. 30, 2009, the share these assets comprise had increased
to 20.39% of the total portfolio.  S&P understand that the ratings
assigned to the assets under Deutsche Bank's internal rating scale
have been lowered by an average of 3.2 notches, and Deutsche Bank
currently assigns its internal rating of below iBBB- to five of
these assets.  Following the deterioration in the credit quality
of these assets, S&P has placed a greater emphasis on the event
risk represented by the potential default of one or more of these
assets.

S&P believes that the portfolio underlying S-CORE 2008-1 has also
been subject to credit deterioration.  S&P's average equivalent
rating of the portfolio has dropped to 'BB' from 'BBB-' at
closing.

Since closing, S-CORE 2008-1 has registered eight defaulted loans
for a cumulative amount of EUR13.2 million.  The principal
deficiency ledger is EUR3.4 million, a slight decrease relative to
the balance in the previous quarter.  S-CORE 2008-1 has also fully
depleted its available reserve fund.  However, compared with S-
CORE 2007-1, in S&P's view, S-CORE 2008-1 has a stronger ability
to reduce its outstanding PDL balance, because it has higher
available excess spread and a lower PDL amount.

S-CORE 2008-1 benefits from a more granular portfolio than S-CORE
2007-1 which, in S&P's view, somewhat mitigates the concentration
risk which is an important driver in the downgrades in S-CORE
2007-1.  The 18-largest exposures in S-CORE 2008-1's underlying
portfolio (all have equal principal balances) have seen an average
reduction of their rating on Deutsche Bank AG's internal rating
scale of two notches.  Deutsche Bank rated all but three of the 18
loans iBBB- at closing.

                           Ratings List

                        S-CORE 2007-1 GmbH
        EUR509.65 Million Asset-Backed Floating-Rate Notes
                  And Class F Floating-Rate Notes

                         Ratings Affirmed

                        Class       Rating
                        -----       ------
                        F           D

      Ratings Lowered and Removed From CreditWatch Negative

                               Rating
                               ------
              Class       To            From
              -----       --            ----
              A1          AA            AAA/Watch Neg
              A2          BBB-          AAA/Watch Neg
              B           BB            AA/Watch Neg
              C           B+            A-/Watch Neg
              D           B             BBB/Watch Neg
              E           CCC           B/Watch Neg

                        S-CORE 2008-1 GmbH
         EUR460 Million Asset-Backed Floating-Rate Notes
                     and Floating-Rate Notes

                               Rating
                               ------
              Class       To            From
              -----       --            ----
              A1          AA            AAA/Watch Neg
              A2          A             AAA/Watch Neg
              B           BBB           AA/Watch Neg
              C           BB+           A/Watch Neg
              D           BB-           BBB/Watch Neg
              E           B-            BB/Watch Neg


SUEDZUECKER INT'L: Fitch Affirms 'BB+' Sub. Hybrid Bond Rating
--------------------------------------------------------------
Fitch Ratings has revised its rating Outlook on Suedzuecker AG's
Long-term foreign currency Issuer Default Rating of 'BBB' to
Stable from Negative.

Fitch has also affirmed Suedzucker AG's Long-term foreign currency
IDR of 'BBB' and its short-term foreign currency IDR of 'F3', as
well as Suedzucker International Finance B.V.'s senior unsecured
rating of 'BBB' and subordinated hybrid bond rating of 'BB+'.

Fitch has concurrently withdrawn its ratings on Suedzucker AG and
Suedzucker International Finance B.V.

The Outlook revision reflects the recovery underway in
Suedzueker's core sugar segment, which, together with a sizable
cash payment from the EU sugar restructuring fund, has led to a
significant reduction in the group's financial leverage.

Fitch will no longer provide ratings or analytical coverage of
Suedzucker.


TITAN EUROPE: Moody's Reviews 'Ca' Rating on Class E Notes
----------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade several CMBS Notes issued by Titan Europe 2006-3 plc
(amounts reflect initial outstandings):

  -- EUR471.975M Class A Commercial Mortgage Backed Floating Rate
     Notes due 2016, Aa1 Placed Under Review for Possible
     Downgrade; previously on Sep 30, 2009 Downgraded to Aa1

  -- EUR245.427M Class B Commercial Mortgage Backed Floating Rate
     Notes due 2016, Ba2 Placed Under Review for Possible
     Downgrade; previously on Sep 30, 2009 Downgraded to Ba2

  -- EUR51.917M Class C Commercial Mortgage Backed Floating Rate
     Notes due 2016, B2 Placed Under Review for Possible
     Downgrade; previously on Sep 30, 2009 Downgraded to B2

  -- EUR56.637M Class D Commercial Mortgage Backed Floating Rate
     Notes due 2016, Caa2 Placed Under Review for Possible
     Downgrade; previously on Sep 30, 2009 Downgraded to Caa2

  -- EUR37.9M Class E Commercial Mortgage Backed Floating Rate
     Notes due 2016, Ca Placed Under Review for Possible
     Downgrade; previously on Sep 30, 2009 Downgraded to Ca

Moody's does not rate the Class G and Class H Notes issued by
Titan Europe 2006-3 plc.  The Class X and Class F Notes issued by
Titan Europe 2006-3 plc are not affected by this rating action.

Titan Europe 2006-3 plc closed in June 2006 and represents the
securitization of initially eighteen commercial mortgage loans
originated by Credit Suisse International.  At closing, the loans
were secured directly or indirectly by first-ranking legal
mortgages over 40 commercial properties located in France (44% of
the original portfolio by underwriter market value), Germany
(28%), The Netherlands (15%), Belgium (7%) and Luxembourg (6%).
The properties were predominantly office (52%) followed by mixed-
use (26%), retail (12%) and the remaining pool comprised other
types including hotels (7%).  As of the last IPD in October 2009,
14 loans remained in the pool, secured over 36 properties.  The
aggregate outstanding balance was EUR846.6 million.

The review action has been prompted by a new valuation received
for the property securing the Quelle Nurnberg Loan (11.0% of the
current portfolio) which was called by the special servicer
following the loan's transfer into special servicing.  The
valuation concludes that the property has a market value of
EUR12.5 million as of 1 January 2010.  Moody's understands that
the substantial reduction in value is due to the costs of adpating
the building to new tenants, the limitations in use and the
challenges in attracting new tenants.  Since December 2009, the
Property has been empty and has generated no rental income.  As a
consequence, this new market value is effectively a vacant
possession value (VPV).  It represents an 89% decline to the VPV
as of December 2005 (EUR102.4 million; valuation carried out by
Colliers CRE) and a 79% decline to the VPV as of January 2009
(EUR59 million; valuation carried out by Colliers CRE).  It is
also below the VPV of EUR45 million assumed by Moody's in its
latest review of the transaction in September 2009.

The Quelle Nurnberg Loan originally had a whole loan balance of
EUR109.4 million, of which EUR99.4 million was securitized in this
transaction.  The loan provides for some amortization on a
quarterly basis and is scheduled to mature in January 2013.  It
was transferred into special servicing initially in September 2009
following a payment default under the facility agreement.
Furthermore, on 1 September 2009, insolvency proceedings over the
parent company of the sole tenant, Quelle AG, were opened.  As the
insolvency administrator decided to liquidate the tenant, it
terminated the lease agreement with effect 31 December 2009.

In addition, two other loans in the pool are in special servicing.
The SQY Quest Loan (12.8% of the current pool) was transferred
into special servicing following a notice sent by the borrower
stating that it is generally unable to pay its debts as they
become due.  The property securing the loan, the SQY Quest
Shopping Centre located 20 km south west of Paris, is reported to
suffer from high rental arrears and vacancy of approximately 11%.
The Special Servicer continues to negotiate the terms of a workout
scenario with the borrower.  The Monnet Loan (8% of the current
pool) was transferred into special servicing on 29 September 2009
as the borrower did not cure a DSCR covenant breach in the
permitted grace period.  Moody's understands that the Special
Servicer is currently in discussion with the borrower regarding
the options going forward.

Moody's expects that the new market value information for the
Quelle Nurnberg Loan property will impact the special servicer's
work-out strategy going forward and might therefore negatively
impact the portfolio's expected loss.  Moody's expects pressure on
the current rating levels, especially on Class B, Class C, Class D
and Class E and to a lesser extent on the rating of Class A Notes.
The Class F Notes are not affected as they are already rated C,
Moody's lowest rating.  During its review, Moody's will analyse
the details and the impact of the new valuation as well as the
actions taken by the special servicer in relation to the Quelle
Nurnberg Loan and the other two loans in special servicing.  In
addition, Moody's will re-assess the performance of the remaining
loans against its expectations as of September 2009.


* GERMANY: Merkel's Coalition Divided Over Bank Bailout Fund
------------------------------------------------------------
Brian Parkin at Bloomberg News reports that Chancellor Angela
Merkel's coalition is divided over a bailout fund for banks
proposed by Deutsche Bank AG Chief Executive Officer Josef
Ackermann, with parties split on whether taxpayers should shoulder
some of the cost.

Bloomberg relates Michael Meister, deputy parliamentary head of
Ms. Merkel's Christian Democratic Union, said in an interview the
German financial industry should pay for the whole fund, while the
finance spokesman for the Christian Social Union, one of three
blocs in her government, countered that banks alone can't afford
it.

According to Bloomberg, the dispute in Germany stems from a
proposal Mr. Ackermann made in November for a risk fund backed by
the government.  German officials are working on proposals to be
presented at a G-20 summit in Canada in June, Bloomberg discloses.
The coalition has said it will propose a law on executive pay this
month, enshrining a plan outlined by Mr. Ackermann in December in
which Germany's eight largest banks and three top insurers agreed
to impose self-restraint on pay, Bloomberg recounts.

Bloomberg notes that while Ms. Merkel's coalition agrees on the
need for a broad banking overhaul, they disagree on the form any
proposed levy might take and how big the fund should be.
Lawmakers from the CDU and their CSU allies will meet in Berlin on
Feb. 7 to 8 to hammer out a joint position, Bloomberg discloses.

The third coalition member, the Free Democratic Party, is pushing
for a deposit-guarantee fund to be financed by the banks in
addition to the crisis fund Mr. Ackermann has proposed, Bloomberg
states.


===========
G R E E C E
===========


* GREECE: EU to Impose Stringent Rescue Measures
------------------------------------------------
Iain Dey at The Sunday Times reports that European officials this
week will set a four-month deadline for the Greek government to
impose a stringent regime of budget cuts and financial reforms.

According to the report, leaked documents have revealed Brussels
will publish a plan for Greece this week, under the headline
"Urgent measures to be taken by May 15, 2010".

The report says the package includes demands to "cut average
nominal wages, including in central government, local governments,
state agencies and other public institutions".

Greece has been under pressure from international investors over
fears it will default on its debts, precipitating an unprecedented
strain on the euro, the report notes.  Fears of a Greek debt
default have spread concerns that other EU countries could face
problems -- including Ireland, Spain, Portugal or Italy, the
report recounts.

                            Bailout

Jana Randow and Francine Lacqua at Bloomberg News report that
German Economy Minister Rainer Bruederle ruled out a rescue for
Greece.

"I don't think that a bailout is the right way because German and
French taxpayers can't pay for Greece," Bloomberg quoted Mr.
Bruederle as saying in an English-language interview in Davos,
Switzerland Saturday.  "Maybe they will give certain help, but
first it's for the Greeks to solve their problems."

                            Overblown

Patrick Donahue at Bloomberg News reports that the German
government said market reaction to Greece's financial situation is
overblown, and that there's no need to discuss steps by European
Union states to help the Greek government cut the budget deficit.

"The successful Greek bond sale on Jan. 25 confirms that the Greek
government continues to have access to international capital
markets," Bloomberg quoted German Finance Ministry spokesman
Michael Offer as saying in Berlin Friday.  "The signals are being
read more or less calmly from our side."

Greek bonds have slumped on speculation the country will need help
from the EU to cut the region's widest budget deficit and tame its
rising debt, Bloomberg discloses.

Bloomberg notes Greek officials say they have no knowledge of an
EU bailout plan and the country's prime minister, George
Papandreou, said Thursday that Greece was being victimized by
rumors on the financial markets.

"Of course there's a lot of speculation involved," Mr. Offer said,
according to Bloomberg.  "We would urge you not to overestimate
the financial- market developments."


=============
I R E L A N D
=============


B&R HOMES: Creditors Meeting Set for February 10
------------------------------------------------
A meeting of creditors of B&R Homes Limited will take place at
9:00 a.m. on February 10, 2010, at:

         The Ardmore Hotel
         Tolka Valley
         Finglas
         Dublin 11
         Ireland

The registered address of the company is at:

         Lourich House
         Kilmurray
         Kilmacanogue
         Co Wicklow
         Ireland


HEAVEN AND EARTH: Creditors Meeting Set for February 16
-------------------------------------------------------
A meeting of creditors of Heaven and Earth Day Spa Limited will
take place at noon on February 16, 2010, at:

         12 Lower Kilmacud Road
         Stillorgan
         Co Dublin
         Ireland

The registered address of the company is at:

         13 Deansgrange Business Park
         Blackrock
         Co Dublin
         Ireland


HUBERT TULLY: Creditors Meeting Set for February 16
---------------------------------------------------
A meeting of creditors of Hubert Tully & Co Limited will take
place at 11:15 a.m. on February 16, 2010, at:

         The Valley Inn
         Dunleer
         Co Louth
         Ireland

The registered address of the company is at:

         West Street
         Drogheda
         Co Louth
         Ireland


KELSEY MANUFACTURING: Appoints David Van Dessel as Liquidator
-------------------------------------------------------------
David Van Dessel of Kavanagh Fennell was appointed liquidator of
Kelsey Manufacturing Limited on January 29, 2010.

The registered address of Kelsey Manufacturing Limited is at:

         Bodal
         Gowran
         Co. Kilkenny
         Ireland


KEVIN ARUNDEL: Creditors Meeting Set for February 9
---------------------------------------------------
A meeting of creditors of Kevin Arundel Restaurants.com Limited
will take place at 11:00 a.m. on February 9, 2010, at:

         Herbert Hotel
         Herbert Road
         Dublin 4
         Ireland

The registered address of the company is at:

         52 St. Laurences Road
         Chapelizod
         Dublin 20
         Ireland


MEGHNA LIMITED: Creditors Meeting Set for February 12
-----------------------------------------------------
A meeting of creditors of Meghna Limited will take place at 10:00
a.m. on February 12, 2010, at:

         D4 Hotel
         Ballsbridge
         Dublin 4
         Ireland

The registered address of the company is at:

         109 Lower Baggot Street
         Dublin 2
         Ireland


* IRELAND: NAMA Will Miss Feb. 12 Target Date, Awaits EU Approval
-----------------------------------------------------------------
RTE Business, citing the Irish Independent, reports that the
National Asset Management Agency will not begin operating on its
scheduled date because the European Commission has not yet
approved the Government's solution to the banking crisis.

According to the report, the agency's target of February 12 to
begin buying toxic bank loans is likely to be missed as the
commission has extended its examination of NAMA.

The report says the delays are also being caused by the banks'
failure to get their paperwork completed and the Government's
failure to find investors to take a stake in the so-called special
purpose vehicle -- a device to ensure that NAMA's EUR54 billion of
debts are not counted as part of the national debt by the
commission.


* IRELAND: Corporate Insolvencies Down 34% in January 2010
----------------------------------------------------------
RTE Business says a new report by InsolvencyJournal.ie show fewer
companies went bust in January 2010 than in December 2009.

According to RTE, the number of insolvencies dropped 34%, from 156
(five per day) to 103 (three per day).

RTE says the report reveals construction is still the worst
affected sector, with 32 firms going out of business in January --
33% of the total.

Despite the difficulties caused by the cold snap and the slump in
trading during the January sales, there was an improvement in
retail, down 44% to 10 insolvencies, RTE notes.

RTE relates the statistics show receivership went up markedly in
January, the statistics show.  Receivers were appointed to 21
companies last month -- up 200% on the December 2009 figure, as
banks increasingly move to have receivers appointed to recover
their debts, RTE states.

Creditors' voluntary liquidations accounted for 82% of all
insolvencies last month while there were only two court appointed
liquidations, RTE discloses.


=========
I T A L Y
=========


FIAT SPA: Expects Car Sales to Drop in Italy in Coming Months
-------------------------------------------------------------
Marco Bertacche at Bloomberg News reports that Fiat SpA said it
expects a "significant" drop in their car sales in Italy in coming
months as orders for new vehicles declined 50% in January from the
end of 2009.

Bloomberg relates Fiat group's car sales in Italy rose 30% last
month to 66,081 vehicles.  According to Bloomberg, Fiat said the
increase is due to a jump in orders at the end of 2009.

                          About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.  With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.

                           *     *     *

Fiat S.p.A. continues to carry a Ba1 long-term rating from Moody's
Investors Service with negative outlook.


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


LISTRINDO CAPITAL: Moody's Affirms 'Ba2' Senior Debt Rating
-----------------------------------------------------------
Moody's Investors Service has affirmed the Ba2 senior unsecured
debt rating on the US$300 million 9.25% notes due 2015 issued by
Listrindo Capital B.V.  The notes are unconditionally and
irrevocably guaranteed by Cikarang Listrindo.

The rating has been removed from its provisional status following
the completion of the bond issue.  The outlook on the rating is
stable.

The bond proceeds will be used to pay down in full the outstanding
principal amount on Cikarang's long-term back loan, to finance the
part of the expansion plan and for general corporate purposes.

Moody's notes that the final structure of the notes has changed.
Rather than a bullet bond maturity, the notes now include a
partial amortizing feature with principal payments of
US$50 million in January 2013, US$50 million in January 2014, and
US$200 million at maturity in January 2015.  Furthermore, the
notes include an offshore interest reserve account in which
Cikarang will pre-fund the semi-annual interest payments on a
monthly basis.

Moody's sees no impact from the changes in the notes' structure.
The amortizing feature will reduce some of the refinancing risk at
maturity and spread it out across earlier years, while the
offshore interest reserve account will provide additional
protection to bondholders.

The last rating action on Cikarang was January 13, 2010 when
Moody's assigned the Ba2 corporate family rating and the (P)Ba2
senior secured bond rating.

PT Cikarang Listrindo is the exclusive IPP supplier of electricity
to a wide range of mostly foreign-owned companies in five
industrial estates in the Cikarang area outside Jakarta.  It owns
and operates a 518MW natural gas-fired combined cycle power
station, and distributes directly to the companies located on the
industrial estates.  Its current capacity expansion plan, upon
completion, will increase the company's installed generation
capacity to 646MW.  It also has an offtake agreement for part of
its power with PT Perusahaan Listrik Negara (PLN, Ba2/stable).
Cikarang is owned by three Indonesian families.


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


GLOBEXBANK CJSC: Fitch Assigns 'D/E' Individual Rating
------------------------------------------------------
Fitch Ratings has assigned CJSC Globexbank a Long-term local
currency Issuer Default Rating of 'BB' with Evolving Outlook.
Fitch presently rates GB at Long-term foreign currency IDR 'BB'
with an Evolving Outlook, Short-term IDR 'B', Individual Rating
'D/E', Support Rating '3' and National Long-term rating 'AA-
(rus)' with an Evolving Outlook.

Fitch has also assigned GB's two upcoming issues of senior
unsecured bonds, Series BO-1 and Series BO-2, each with a nominal
value of RUB5 billion, expected Long-term local currency ratings
of 'BB' and expected National Long-term ratings of 'AA-(rus)'.

The bonds' final ratings will be assigned by Fitch at a later
date.  The final ratings will be contingent upon receipt of final
documents conforming to information already received.

The notes will have an expected maturity of three years.  GB's
obligations under the notes will rank equally with the claims of
other senior unsecured creditors, except the claims of retail
depositors.  Under Russian law, the claims of retail depositors
rank above those of other senior unsecured creditors.  At end-
2009, retail deposits accounted for 22% of GB's total liabilities,
according to the bank's financial accounts under Russian
Accounting Standards.

GB was established in 1992 and until 2008 was a captive bank,
primarily providing financing to its shareholder's investment
projects in the real estate and construction sectors.  In October
2008, following a major liquidity shortfall, VEB bought GB for a
token sum as a measure aimed at stabilizing the banking sector.
At end-2009, VEB owned 98.94% of GB.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings.  Collectively these
ratings drive Fitch's Long- and Short-term IDRs.


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


BBVA FINANZIA: S&P Lowers Rating on Class C Notes to 'BB-'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative all of BBVA Finanzia Autos 1, Fondo de
Titulizacion de Activos' notes.

The rating actions follow S&P's credit and cash flow analysis.

As of December 2009, the fund had accrued almost EUR19 million of
loans in arrears between 90 and 365 days, representing 4.06% of
the outstanding balance of the collateral pool.  S&P considers
that the deal is exposed to the risk that a large portion of these
delinquent loans may default in the short to medium term
(defaulted loans are defined as loans in arrears for more than 12
months).  S&P expects the current adverse employment and wage
dynamics in Spain to continue to weigh on the performance of
consumer loans.

Defaults have already started to erode credit enhancement in the
transaction because the issuer has made repeated drawings on the
cash reserve (the first-loss piece in the transaction).  As of the
January interest payment date, the reserve fund balance was
EUR1.7 million, 12.59% of its target amount.

A rapid increase in defaulted loans may also trigger a deferral in
interest payments on the class C notes.  The issuer defers
interest payments on this class if written-off loans are more than
8.5% of the original collateral balance.  As per the last investor
report, write-offs were 4.28% of the original collateral balance.

A further issue is the actual level of recoveries, which are
currently coming through at a lower level than S&P had initially
expected.  As per the last investor report, the deal recovered
41.65% of arrears over 90 days, and 8.93% on defaulted loans.

Consequently, S&P revised its assumptions on defaults and
recoveries for this transaction.  S&P's credit and cash flow
analysis shows that the current available credit enhancement is
not sufficient to maintain the current ratings.

BBVA Finanzia 1's pool was originated by Finanzia Banco de Credito
S.A., the consumer finance arm of BBVA.  It closed in April 2007
and its revolving period ended in April 2008, one year ahead of
the scheduled date, because the delinquency rate was higher than
the trigger threshold level.

                           Ratings List


     BBVA Finanzia Autos 1, Fondo de Titulizacion de Activos
         EUR800 Million Asset-Backed Floating-Rate Notes

       Rating Lowered and Removed From Creditwatch Negative

                               Rating
                               ------
         Class         To                  From
         -----         --                  ----
         A             AA+                 AAA/Watch Neg
         B             A-                  A/Watch Neg
         C             BB-                 BB/Watch Neg


CIRSA GAMING: Moody's Reviews 'B2' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the B2 corporate family rating and probability of
default rating of Cirsa Gaming Corporation S.A.  As a result, the
B3 rating on the bonds due 2012 and B2 rating on the bonds due
2014, remain on review for possible downgrade.

Simultaneously, the rating agency has also withdrawn the
provisional (P)B3 rating on the proposed 9.50% (revised from
original 9.25%) senior secured notes due 2020.  On January 7,
2010, Cirsa had offered to exchange EUR230 million notes due 2012
and EUR270 million notes due 2014 for new longer-term and higher-
coupon secured notes due 2020 to be issued by Cirsa Funding
Luxembourg, a wholly-owned subsidiary of Cirsa.  However,
following an unsuccessful exchange (less than 50.1% acceptances
under each of the existing 2012 and 2014 bonds), Cirsa has
withdrawn and terminated the offer.  Moody's has withdrawn the
(P)B3 rating on the new notes accordingly.

The review was prompted by Moody's concerns related to the tight
liquidity management that exposes Cirsa to continued uncertainty
of having to refinance a number of short term bilateral bank
facilities, which might have exhausted headroom under the current
rating category.  The previous plan to offer an exchange bond
included some additional financing that would have mitigated the
liquidity constraints of Cirsa.  Failure to appropriately address
the liquidity concerns and/or a deviation in the operating
performance against current expectations, could trigger a
downgrade.

The ratings placed under review for possible downgrade are:

  -- the B2 CFR and PDR of Cirsa Gaming Corporation S.A.

These instrument ratings remain on review for possible downgrade:

  -- the B2 rating (LGD 3) on the EUR270 million 8.75% senior
     notes due 2014 issued by Cirsa Finance Luxembourg S.A.

  -- the B3 rating (LGD 4) on the EUR230 million 7.875% senior
     notes due 2012 issued by Cirsa Capital Luxembourg S.A.

The provisional rating withdrawn is:

  -- the (P)B3 rating on the proposed 9.50% (9.25% original)
     senior secured notes due 2020 which will now not be issued by
     Cirsa Funding Luxembourg S.A.

The last rating action was implemented on January 11, 2010, when
Moody's assigned a (P) B3 rating on the proposed 9.50% (9.25%
original) senior secured notes due 2020 and placed Cirsa's bond
ratings on review for possible downgrade.

Headquartered in Terrassa, Spain, Cirsa is a leading Spanish
gaming company with substantial operations in Italy and Latin
America.  In the nine months ended September 2009, Cirsa reported
gross operating revenues of ca. EUR1.2 billion and EBITDA of
EUR157 million.


FONCAIXA FTGENCAT: Moody's Confirms 'Ba2' Rating on Class D Notes
-----------------------------------------------------------------
Moody's Investors Service has taken these actions on the long-term
credit rating of these notes issued by Foncaixa Ftgencat 3, FTA:

  -- class A(G) notes, Confirmed at Aaa, previously placed under
     review for downgrade on 23 March 2009

  -- class B notes, Upgraded to Aa3 from A1, previously placed
     under review for downgrade on 23 March 2009

  -- class C notes, Confirmed at Baa2, previously placed under
     review for downgrade on 23 March 2009

  -- class D notes, Confirmed at Ba2, previously placed under
     review for downgrade on 23 March 2009

Moody's initially assigned definitive ratings on 16 November 2005.

The rating action concludes the rating review resulting from
Moody's revision of its methodology for granular SME portfolios in
Europe, Middle East and Africa.  This revised methodology was
introduced on March 17, 2009 and the affected transactions had
been subsequently placed on review for downgrade on March 23,
2009.

As a result of its revised methodology, Moody's has reviewed its
assumptions for Foncaixa Ftgencat 3 collateral portfolio, taking
into account anticipation of performance deterioration in the
current down cycle, and the exposure of the transaction to the
real estate sector (either through security in the form of a
mortgage or debtors operating in these markets).  The
deterioration of the Spanish economy has been reflected in Moody's
negative sector outlook on Spanish SME securitization
transactions.  To date, this transaction has been performing
better than the Spanish SME index.  As of December 2009, the
outstanding 90+ delinquency rate is at 1.75% of current balance
and the cumulative defaults (more than 12 months in delinquencies)
stand at 0.39% of original balance.  At end of December 2009 the
reserve fund level was built up from EUR6,401,699 in November to
EUR6,494,668 and is now almost at its target level of
EUR6,500,000.

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the low Ba-range for the non-real-estate debtors.
Additionally, loans in arrears are notched down depending on the
length of time the loans have been in arrears, and performing
loans not in building and real estate sector with relatively long
seasoning are notched up depending on their actual seasoning.

At the same time Moody's estimated the remaining weighted average
life of the portfolio equal to 4.4 years.  As a consequence, these
revised assumptions have translated into a cumulative mean default
assumption of 7.5% of the current outstanding portfolio amount.
When converting this number into a cumulative mean default rate of
original portfolio balance, the revised expected cumulative
default rate is 4.8% compared to an initial assumption of 2.5% at
closing.  Given the high granularity of the outstanding portfolio
(effective number of borrowers is 1,292 as of December 2009),
Moody's applied a normal inverse distribution to derive the
probabilities of its default scenarios.  The volatility was
slightly reduced to 54% from 60% assumed at closing, taking into
account the significant concentration in the construction &
building sector.  According to Moody's sector classification the
portion of this sector in the outstanding pool balance as of
December 2009 was 45%.  Stochastic recoveries were modeled
assuming a 65% mean recovery rate and a 20% standard deviation.
This compares to an initial assumption at closing of 32.5% fixed
recovery rate.  This strong increase in the recovery rate is
mainly due to the high percentage of mortgage securities (mainly
residential) backing the securitized loans with low LTV and long
seasoning of the loans.  The constant prepayment rate Moody's used
in its cash flow model was decreased to 5% and aligned to the
average CPR observed so far.  This compares to 15% assumed at
close.  Moody's tested various sensitivities around these
assumptions in order to determine its final view on the ratings.

In summary, Moody's concluded that the negative effects of the
revised default and volatility assumptions could be offset by the
increase in credit enhancement and the recovery rate expectations
for the outstanding A(G), B, C and D notes.  In particular the
doubling of credit enhancement for the benefit of the class B
notes more than offset the revised assumptions which resulted in
an upgrade.

The class A(G) notes benefit from a guarantee from the Generalitat
de Catalunya (A1) for interest and principal payments.  Moody's
has determined that the expected loss associated with class A(G)
without giving benefit to the Generalitat de Catalunya guarantee
is consistent with a Aaa rating.

Foncaixa Ftgencat 3, FTA is a securitization fund, which purchased
a pool of loans granted to Spanish SMEs and individuals originated
by Caja de Ahorros y Pensiones de Barcelona.  In the provisional
pool as of November 2005 the portfolio consisted of 11,267 loans
and 9,230, debtors.  The loans were originated between 1988 and
2005, with a weighted average seasoning of 2.2 years and a
weighted average remaining term of 13.8 years.  As of December
2009 the outstanding portfolio counted 4,219 loans with 3,524
debtors.  The weighted average seasoning was calculated at 7 years
with a weighted average remaining term of 13.2 years.  In terms of
geographic concentration, the pool was and still is fully
concentrated in Catalonia.  At close the concentration in the
building and real estate sector equaled to 40% of the original
portfolio amount.  As of December 2009, this percentage made up
approximately 45% and the pool factor was 42%.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.

Moody's is closely monitoring the transaction.


PYMES BANESTO: Fitch Junks Rating on Class C Notes From 'B'
-----------------------------------------------------------
Fitch Ratings has downgraded all four classes of PYMES BANESTO 2,
FONDO DE TITULIZACION DE ACTIVOS, removed the notes from Rating
Watch Negative and assigned Negative Outlooks to all note classes,
excluding class C.

The rating actions resolve the RWN status assigned in August 2009
following the release of Fitch's revised criteria for rating
European granular pools of small corporate loans on July 23, 2009.

The rating actions taken are:

  -- EUR111,990,440 class A1 (ISIN ES0372260002) downgraded to
     'BBB-' from 'AA'; removed from RWN; assigned Negative
     Outlook; assigned Loss Severity Rating 'LS-3'

  -- EUR450,892,553 class A2 (ISIN ES0372260010) downgraded to
     'BBB-' from 'AA'; removed from RWN; assigned Negative
     Outlook; assigned Loss Severity Rating 'LS-2'

  -- EUR24,300,000 class B (ISIN ES0372260028) downgraded to 'B'
     from 'BBB'; removed from RWN; assigned Negative Outlook;
     assigned Loss Severity Rating 'LS-5'

  -- EUR34,000,000 class C (ISIN ES0372260036) downgraded to 'CC'
     from 'B' removed from RWN

The rating actions noted above reflect the application of the
agency's updated SME criteria.  As a result, the agency applied
the underlying performing SME loans a 'B+' default probability
benchmark which had the effect of increasing Fitch's initial
portfolio default expectations.  The rating actions also
considered the credit performance of the transaction, the modest
obligor and industry concentration in the pool, as well as the
unsecured nature of 62% of the underlying collateral.  The
magnitude of the rating actions was also driven by the relatively
low credit enhancement in place and limited structural
deleveraging due to the two-year revolving period.  Positively,
the revolving period ended in December 2008 and the transaction
has begun to amortize outstanding notes and this allows for CE to
grow over time.

The transaction has reported average performance to date since
closing in 2006.  Ninety day plus arrears stood at 2.32% of the
current collateral balance at year-end 2009.  Cumulative reported
defaults have totaled 1.01% of the initial collateral balance and
have been provisioned for out of available excess spread and the
cash reserve fund.  As of the last reporting date, the reserve
fund balance stood at EUR20.3m, representing 81% of its required
amount.

As part of its analysis, the agency was obliged to making some
assumptions related to key loan characteristics.  While the agency
requested detailed loan-by-loan data from the transaction
management company, no complete information was provided.  As a
result, the agency made assumptions regarding select collateral
attributes based on reported aggregate figures, and tested various
sensitivity scenarios.

PYMES BANESTO 2, FTA is a cash flow securitization of an initially
revolving and now static pool of traditional secured and unsecured
SME loans granted by Banco Espanol de Credito SA (rated
'AA'/'F1+'/Stable).  The fund is managed by Santander de
Titulizacion.


* SPAIN: 12.1% of Companies Have High Risk of Defaulting in 2010
----------------------------------------------------------------
A total of 12.1% of Spanish companies have a high risk of
defaulting on their payment commitments during 2010.

This is the main conclusion of the study prepared by Iberinform, a
company that specializes in default risk management and company
appraisals, after applying the mathematical models of its
predictive delinquency rating to a sample of nearly 700,000
companies.

The evolution of this indicator, which was 9.6% one year ago,
shows a progressive consolidation of default risk.

During 2009 we have seen an improvement in the systems used by
companies for risk selection and the management of client credit,
largely provided by external suppliers such as Iberinform, which
are capable of supplying up to date information on their clients
and appraisals that make it possible to simplify these processes.
This corporate service, which enables them to identify the clients
with worse financial situations, has made it possible to minimize
the impact and transfer of default.  Nevertheless, this study by
Iberinform shows that the business environment still has a high
level of default risk, explained Iberinform's general manager,
Andres Ohlsson.

To calculate a company's default risk, Iberinform''s analysts take
into account a set of economic, financial and commercial
variables, obtained from objective data, together with the
experience accumulated by the firm over more than 35 years.
Through the analysis of historical data, Iberinform has
constructed predictive models that enable extremely precise
estimates to be made of the likelihood that Spanish companies will
default on their payment obligations.

                Data by Autonomous Region and Sector

The analysis by Autonomous Region shows wide variations.  In
general, companies located in coastal areas show a higher
probability of default during 2010 than those located in the
interior.  The levels in Madrid and Catalonia are below average,
with 9.2% and 9.6% respectively.  By sector, the construction
industry shows the highest levels of risk (14.9%), significantly
above other sectors.  Better performance is expected in
agriculture (6.4%), finance (7.9%) and energy (9.4%), which
present risk levels below 10%.

"These figures are important for understanding the market trends,
but they cannot be used to decide on specific operations: all
sectors and geographical areas, without exception, have present
business opportunities that we should not miss as well as default
risks that we should not ignore.  The key decision is the one
taken company by company and to do this we need to have a tool
that enables us to know our clients better," added Ohlsson.

Iberinform, part of the Credito y Caucion Group, is a company that
specializes in the management and drafting of commercial and
financial reports, as well as marketing databases.  Its reports
and its company appraisals and sectorial, pre-trial and
international analyses help companies to make business decisions
and manage their client and supplier risks.  It is the only
supplier in the market with its own network of researchers who
complete and update information from public sources through in-
person interviews, preparing 800,000 investigated reports annually
on average.  It also has marketing databases and registry services
that provide rapid and convenient access to land, companies and
traffic registers.


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


FORD MOTOR: Resumes Vehicle Production in China
-----------------------------------------------
China Daily reports that a joint venture partner of Ford Motor Co.
resumed making buses in China after determining that the gas pedal
assembly doesn't have the same problem that forced a recall of
millions of Toyota vehicles.

The Wall Street Journal's Matthew Dolan has reported that Ford
Motor has stopped production of a full-size commercial vehicle in
China after discovering that the gas pedal used came from the
supplier involved in the recall at Toyota Motor Co.  The Journal
reported that Ford spokesman Said Deep indicated the production
halt affects the diesel version of Ford's full-size Transit
Classic commercial vehicle that Ford makes in China with one of
its joint-venture partners, Jiangling Motors Corp.

The Journal noted Ford said that so far there have been no reports
in China of Ford drivers experiencing the same type of
uncontrolled acceleration problems that prompted Toyota to issue a
massive recall and halt sales of most of its popular models in the
U.S.

As widely reported, Toyota said it is suspending the U.S. sale and
production of eight models involved in an earlier recall.  Those
models account for more than half its U.S. deliveries and include
top-selling Camry and Corolla cars.

                             About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents.  With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo.  The company provides financial
services through Ford Motor Credit Company.

At Sept. 30, 2009, the Company had US$203.106 billion in total
assets against US$210.376 billion in total liabilities.

On March 4, 2009, Ford deferred future interest payments on its
6.50% Junior Subordinated Convertible Debentures due January 15,
2032, beginning with the April 15, 2009 quarterly interest
payment.

As reported by the Troubled Company Reporter on Nov. 4, 2009,
Moody's Investors Service upgraded the senior unsecured rating of
Ford Motor Credit Company LLC to B3 from Caa1.  This follows
Moody's upgrade of Ford Motor Company's corporate family rating to
B3 from Caa1, with a stable outlook.  Ford Credit's long-term
ratings remain on review for further possible upgrade.

On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford
Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'.  Ford
Motor Co. carries a long-term issuer default rating of 'CCC', with
a positive outlook, from Fitch Ratings.


===========
T U R K E Y
===========


ANADOLU EFES: Fitch Gives Stable Outlook; Affirms 'BB+' Ratings
---------------------------------------------------------------
Fitch Ratings has changed Turkish brewer Anadolu Efes Biracilik ve
Malt Sanayii A.S.'s Outlook to Stable from Negative.  The ratings
have been affirmed at Long-term foreign and local currency Issuer
Default 'BB+' and National Long-term 'AA+(tur)'.

The change of Outlook reflects the resilient performance of Efes
through the economic crisis of 2008/2009 and improved consumer
spending, as well as the stabilization of the exchange rates.  The
company's earnings are mainly in TRY and rouble, while most of its
debt is denominated in EUR and the US$.

"Fitch's concerns about refinancing risk have also abated and the
company is, as of FYE09, in a stronger cash flow and leverage
position to withstand new challenges in its core markets of Turkey
and Russia," said Giulio Lombardi, Senior Director in Fitch's
European Leisure and Consumer Products Group.

Fitch believes that higher excise duties introduced on beer in
January 2010 in Turkey and Russia, combined with a potential
restriction on the sale of beer in kiosks in Russia, will create a
challenging operating environment for Efes in 2010.  Yet, while
Efes's plan to pass on the duty increases fully in Turkey and to a
large extent in Russia would cause volume to decline and limit the
company's ability to further raise prices during the year, such
effects would likely be moderate given the general high consumer
price inflation.  Fitch also believes that Efes should be able to
largely compensate profit margin erosion with the decline of raw
material costs at its Turkish unit and, at its international
subsidiary Efes Breweries International, the recent appreciation
of the Russian rouble.

In affirming the ratings, Fitch has taken into account Efes's
virtually unchallenged leadership position in the Turkish beer
market (over 88% share) which remains in a growth mode.  In
Turkey, Efes generates healthy and defensive cash flow, whereas
its 73.5%-owned international subsidiary, EBI, has achieved an
increasingly established profile.  However, Fitch expects that,
once beer demand resumes its long term growth trajectory in Russia
and the other countries where EBI operates, the subsidiary is
likely to absorb more resources for capex and, possibly,
acquisitions.  Overall, Efes's beer unit has started generating
positive cash flow from FY09, which would provide strong support
to the ratings.

Fitch, however, notes that Efes currently maintains large cash
balances that effectively cause its gross leverage to be
significantly higher (estimated at 2x for FYE09) than net leverage
and be at the limit of what is compatible with the current 'BB+'
rating.  Compared to other international brewers, Efes has a high
proportion of short-term debt, currency mismatch between debt and
cash flow, limited geographic diversification profile as well as
being small in size.

Fitch calculates a net lease and put-option adjusted leverage
(after de-consolidating 50.3%-owned Coca Cola Icecek
('BBB-'/Stable)) of 1.6x at FYE08 for Efes's beer unit.  The
agency estimates that, due to higher EBITDA and a sharp reduction
of capex and working capital in the year, cash accumulation would
have enabled net leverage to decrease to approximately 1x at
FYE09.  For FY10, despite the higher excise duties, Fitch expects
net leverage to improve further or, at worse, remain unchanged.


DOGAN YAYIN: Court Cancels TRY772.5 Mln Tax Penalties
-----------------------------------------------------
Delphine Strauss at The Financial Times reports that a court
canceled TRY772.5 million (US$519 million) of tax penalties
totaling TRY914 million that were imposed on Dogan Yayin Holding
last February 2009.

According to the report, Dogan Yayin on Jan. 31 said it will no
longer be obliged to provide collateral against that portion of
the fine, which related to the 2007 sale of a 25% in Dogan TV to
Germany's Axel Springer.  The FT recalls Axel Springer delayed
plans to increase its stake in Dogan Yayin when the group failed
to reach a settlement of the multibillion tax fine.

The finance ministry is likely to appeal the ruling, and Dogan
Yayin must still fight other tax fines that totaled TRY4.8 billion
after interest and late payment penalties, the FT notes.

Aydin Dogan, the 74-year-old veteran of Turkey's partisan media
sector, has been struggling to secure the future of his group
after clashing with Recep Tayyip Erdogan, prime minister, over his
publications' critical coverage, the FT recounts.

As reported in the Troubled Company Reporter-Europe on Sept. 14,
2009, the FT said the tax fine is equivalent to more than
four-fifths of the combined market value of Dogan Holding and
Dogan Yayin.  The FT disclosed one banker expressed incredulity at
the size of the fine, given it related largely to share
transactions between relatively small subsidiaries of Dogan Yayin,
and said it was big enough to threaten the group's survival.

Dogan Yayin Holding AS -- http://www.dyh.com.tr/-- is a Dogan
Group holding company based in Istanbul, Turkey, established as a
media-entertainment conglomerate, active in the newspaper,
magazine and book publishing, television and radio broadcasting,
printing and news media sectors through its subsidiaries.  Its
publishing and broadcasting products include magazines, daily
newspapers, national and international television stations,
thematic and interactive television channels and radio stations.
DYH also runs a television production and a record label company,
as well as two printing companies.  It operates websites designed
for various purposes, and offers a digital television platform, in
addition to other online and digital services.  DYH is active in
the retail sector through D&R and Yaysat, which distribute the
Holding's products.  It also provides foreign trade, factoring and
mortgage services.  DYH holds international partnerships with such
companies as AOL-Time Warner, the Universal Music Group and Burda
GmbH.


=============
U K R A I N E
=============


BANK KHRESCHATYK: Moody's Withdraws 'E+' Bank Strength Rating
-------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of Bank
Khreschatyk: bank financial strength rating of E+, the long-term
and short-term local currency deposit ratings of B2/Not Prime, the
long-term and short-term foreign currency deposit ratings of
B3/Not Prime, and national scale rating of A3.ua.  The long-term
local and foreign currency deposit ratings carried a negative
outlook while the bank financial strength rating carried a stable
outlook.

Moody's has withdrawn these ratings for business reasons following
the official request from Khreschatyk.

As of the date of the ratings withdrawal, Khreschatyk had no
outstanding debt rated by Moody's.

Moody's previous rating action on Khreschatyk was on May 12, 2009
when the rating agency downgraded the global foreign currency
deposit rating to B3 with negative outlook, from B2, following the
downgrade of Ukraine's foreign currency bank deposit ceiling to B3
with negative outlook, from B2.

Headquartered in Kiev, Ukraine, Khreschatyk reported total assets
(under Ukrainian Accounting Standards) of US$751 million as of
September 30, 2009.


CONCERN STIROL: Fitch Withdraws 'B-' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has withdrawn Ukraine-based OJSC Concern Stirol's
Long-term Issuer Default rating 'B-' with Negative Outlook and
Short-term IDR 'B'.

The withdrawal is due to a lack of information.  Fitch will no
longer provide ratings or analytical coverage on Stirol.


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


ABITIBIBOWATER INC: Bridgewater Unit Files for Administration
-------------------------------------------------------------
AbitibiBowater said Tuesday its Bridgewater Paper Company Limited
subsidiary has filed for administration in the United Kingdom. The
BPCL Board of Directors made this decision only after all other
options to keep these U.K. operations solvent were exhausted.

The AbitibiBowater creditor protection proceedings and the BPCL
filing for administration are separate and distinct legal
processes.  The possible outcomes of AbitibiBowater's creditor
protection filings will not necessarily reflect on the future of
BPCL in its administration filing, and vice versa.
AbitibiBowater's ongoing efforts to restructure and emerge from
its creditor protection filings continue to progress in the normal
course.

"We recognize the impact the filing has on our U.K. employees and
business partners; however, these actions were necessary and
represent the best course of action going forward," stated David
J. Paterson, AbitibiBowater President and Chief Executive Officer.

Throughout the BPCL administration filing, AbitibiBowater will
help ensure European customers continue to receive quality
products and service, free of business interruptions.  "We remain
committed to building on our many decades of sales into the
international marketplace, and Europe is strategic to the
Company's current and future sales efforts," added Paterson.

Joint Administrators from Ernst & Young LLP have been appointed as
part of this filing and will manage the affairs, business and
assets of BPCL.  The Joint Administrators are exploring various
options which will determine how the BPCL filing will unfold.  All
media questions related to the administration process should be
directed to Vicky Conybeer at Ernst & Young at +44(0)20 7951 0868.
For day-to-day business inquiries, parties should continue to
communicate with their regular BPCL contacts.

AbitibiBowater is the parent company of Bridgewater Paper Company
Limited through its corporate subsidiaries.

                    About AbitibiBowater Inc.

Headquartered in Montreal, Canada, AbitibiBowater Inc. --
http://www.abitibibowater.com/-- produces a wide range of
newsprint, commercial printing papers, market pulp and wood
products.  It is the eighth largest publicly traded pulp and paper
manufacturer in the world.  AbitibiBowater owns or operates 23
pulp and paper facilities and 28 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 90 countries, the Company is
also among the world's largest recyclers of old newspapers and
magazines, and has third-party certified 100% of its managed
woodlands to sustainable forest management standards.
AbitibiBowater's shares trade over-the-counter on the Pink Sheets
and on the OTC Bulletin Board under the stock symbol ABWTQ.

The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296).  Judge Kevin J. Carey
presides over the case.  The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day.  Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel.  Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel.  Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings.  The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC.  The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348).  Judge Carey also
handles the Chapter 15 case.  Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.

As of Sept. 30, 2008, the Company had US$9,937,000,000 in total
assets and US$8,783,000,000 in total debts.

Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News.  The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).


BRITISH AIRWAYS: AA-Iberia Tie-Up Close to Securing EU Approval
---------------------------------------------------------------
Nikki Tait and Pilita Clark at The Financial Times report that the
planned global tie-up between British Airways, American Airlines
and Iberia has moved closer to securing a regulatory green light
in Europe.

The FT relates BA and the European Commission, Europe's top
antitrust watchdog, confirmed on Sunday that competition officials
had started consulting with rival airlines, such as Virgin
Atlantic, about the concessions that the three carriers had
offered to address potential anti-competitive implications of the
deal.

According to the FT, if the feedback is positive, the next stage
would be for Brussels to publish the commitments formally, offer
all interested parties a chance to respond and then, if all goes
smoothly, make the pledges legally binding in return for approval
of the deal.

However, there is no guarantee that the deal will be cleared as a
result of the comments received in the current consultation, the
FT says.  The Commission could either seek additional commitments
or changes to the current proposals, the FT states.

Even if the EU regulatory process is advancing, the airlines will
still need approval for the tie-up from Washington, the FT notes.

In a separate report the FT's Pilita Clarks says the airlines must
get approval from the Department of Transportation in Washington
to effectively collude on pricing and services without fear of
being penalized for anti-competitive behavior.

This is the third time British Airways and American Airlines have
tried to get such approval in Washington in the past 14 years, the
FT recounts.

According to the FT, Willie Walsh, BA chief executive, has said he
was confident the BA-AA-Iberia deal would get approval this time
without having to surrender slots because the 2007 EU-US Open
Skies agreement had since opened Heathrow to the two rival
alliances.

The open skies deal signed in 2007 gave airlines from each side
greater access to the other's markets but was criticized by UK
politicians in particular for being too generous to the US, the FT
discloses.

                       About British Airways

Headquartered in Harmondsworth, England, British Airways Plc,
along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is
engaged in the operation of international and domestic scheduled
air services for the carriage of passengers, freight and mail and
the provision of ancillary services.  The Company's principal
place of business is Heathrow.  It also operates a worldwide air
cargo business, in conjunction with its scheduled passenger
services.  The Company operates international scheduled airline
route networks together with its codeshare and franchise partners,
and flies to more than 300 destinations worldwide.  During the
fiscal year ended March 31, 2009 (fiscal 2009), the Company
carried more than 33 million passengers.  It carried 777,000 tons
of cargo to destinations in Europe, the Americas and throughout
the world.  In July 2008, the Company's subsidiary, BA European
Limited (trading as OpenSkies), acquired the French airline,
L'Avion.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Nov. 12,
2009, Moody's placed the Ba3 Corporate Family and Probability of
Default Ratings of British Airways plc and the senior unsecured
and subordinate ratings of B1 and B2 under review for possible
downgrade.


COCKBURNS OF LEITH: Suitors Have Until Today to Submit Bids
-----------------------------------------------------------
Nathalie Thomas at The Scotsman reports that the potential buyers
of Cockburns of Lieth have until today, Feb. 3, to submit their
bids for the company.

According to the Scotsman, a deadline for bids had previously been
set for Monday evening but Ernst & Young, which has taken control
of the business, said it has now been extended until midday today
amid "plenty of interest".

The Scotsman notes a spokeswoman for Ernst & Young said the
administrators had so far received no approaches from any members
of the previous management.

The Scotsman recalls last week administrators made five of the
merchant's seven staff redundant.  They are now inviting bids for
the stock and the brand but there are no plans to continue trading
the business, the Scotsman says.

Citing Scotland On Sunday, the Troubled Company Reporter-Europe
reported yesterday that Cockburns of Leith went into
administration after more than 200 years of trading.  Scotland On
Sunday disclosed the company called in administrators Ernst &
Young on Friday after its directors concluded that the business
"could no longer continue to trade".  According to Scotland On
Sunday, the company, which was founded in 1796, has fallen victim
to effects of the global economic downturn and increased
competition from the supermarkets.

Cockburns of Lieth is one of Scotland's oldest wine merchants.


EXPRESS SERVICE: In Administration; 30 Jobs at Risk
---------------------------------------------------
The Scotsman reports that Express Service Stations has gone into
administration, putting 30 jobs at risk.

The report relates Matt Henderson at Johnston Carmichael has been
appointed administrator to the company, which operated four Shell
stations, three in Cumbernauld and one in Clarkston.

According to the report, the administrator said the company hit
financial difficulty late last year.

"We have secured ongoing supplies to enable the business to
continue trading as normal.  Several inquiries from interested
parties have already been received," the report quoted
Mr. Henderson as saying.


KAUPTHING SINGER: PwC Will Take Claim Against Parent to Court
-------------------------------------------------------------
Manx Radio reports that PricewaterhouseCoopers, the liquidators of
Kaupthing Singer and Freidlander Isle of Man, say they will go to
court in their claim against the collapsed bank.

According to the report, the claim by PwC against the parent bank
in Iceland, Kaupthing Bank hf, has been rejected by the winding-up
committee.

The report relates liquidator Mike Simpson has been told the
parental guarantee, intended to cover any debts owed by the Isle
of Man subsidiary, was not binding and therefore will not be
honored.

Mr. Simpson who is in the capital, Reykjavik, will now take the
matter to the Icelandic courts, the report notes.


LINKTIP: In Liquidation; About 10 Jobs Affected
-----------------------------------------------
Joanna Bourke at RoadTransport.com reports that LinkTip has gone
into liquidation, resulting in the loss of approximately 10 jobs.

The report recalls creditors at the Willenhall firm petitioned for
the 31-year-old company to go into liquidation on December 21,
2009.  Paul Anthony Saxton, of Elwell Watchorn & Saxton LLP, was
subsequently appointed liquidator, the report recounts.

According to the report, the company had specialized in
manufacturing vehicles for the recycling sector, but had seen a
decline in demand over the last few years.

"It was particularly painful for me to see the business I started
more than 30 years ago fall victim to the economic recession
brought about by the banks, and the inevitable consequences for
some suppliers and staff," the report quoted Roger Fleetwood, the
firm's founder, as saying.


MADOFF SECURITIES: Yacht Dispute Shouldn't Be Decided in U.K.
-------------------------------------------------------------
James Lumley and Lindsay Fortado at Bloomberg News report that
Andrew Morritt, Chancellor of the High Court, ruled that a dispute
over the ownership of Bernard Madoff's US$7 million yacht
shouldn't be decided in the U.K.

"This court has no jurisdiction to hear or determine the claims,"
Bloomberg quoted Judge Morritt as saying in a ruling delivered in
London Monday.

According to Bloomberg, the yacht, named "Bull," was seized by
French authorities last year at the request of investment firm
Financiere Meeschaert.  The firm, which invested in Madoff's Ponzi
scheme, brought a lawsuit in France seeking control of the yacht
to return money to its clients, Bloomberg discloses, citing
Meeschaert's lawyer, Vasanti Selvaratnam.

Bloomberg relate Meeschaert said in a court filing Grant Thornton
LLP, the liquidators for London-based Madoff Securities
International Ltd. "asserted their claim to ownership" of the
yacht in courts in France, the U.K. and the Cayman Islands, where
the boat is registered.

Meeschaert, as cited by Bloomberg, said the liquidators are "forum
shopping"and argued that the dispute should be heard in France
because the boat was moored and seized there.

The case is In the Matter of Madoff Securities International, GLC
173/09, Chancery Division, High Court (London).

                About BLMIS and Madoff Securities

London-based Madoff Securities International Limited is a money
management business of Bernard L. Madoff in the United Kingdom.

Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.

On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970.  The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).

On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893).  The case is before Hon. Burton Lifland.  The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).  Roughly US$100 million to US$500
million in assets and more than US$1 billion in debts were listed
for Madoff Securities.

The Chapter 15 case was later transferred to Manhattan.  In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.

Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.).


MOUCHEL GROUP: Lenders Agree to Ease Fixed Charge Cover Covenant
----------------------------------------------------------------
Alistair Gray and John O'Doherty at The Financial Times report
that Mouchel Group Plc has renegotiated one of its banking
covenants to cope with the potential cost of fending off any
hostile bid.

According to the FT, lenders to Mouchel, which include Lloyds
Banking Group and Royal Bank of Scotland, have agreed to
temporarily ease the so-called fixed charge cover covenant for the
next year, in part to give it freedom to fund its defense.

The Wall Street Journal reported on January 22, 2010, that the
Panel on Takeovers and Mergers in the U.K. said defense company,
VT Group PLC, must, by 1700 GMT on March 8, either announce a
intention to make an offer for Mouchel or announce that it doesn't
intend to make an offer.

According to the FT, Mouchel's covenant had stipulated that its
fixed-charge cover -- the ratio between profits and fixed costs,
such as lease repayments -- must not fall below 2 times.  The
company, as cited by the FT, said its lenders had to reduce that
limit to 1.875 times.

The renegotiation, which Mouchel said was a "precautionary
measure", is the latest twist in a two-month, GBP385 million
takeover saga that has prompted the Takeover Panel to impose a
"put up or shut up" deadline on VT, the FT relates.

The FT notes Richard Cuthbert, chief executive of Mouchel, said
that the covenant change had only been "minor".

"We felt it was prudent to remove any uncertainty attached to this
covenant by agreeing this easement with our banking group," the FT
quoted Mr. Cuthbert as saying.

Mouchel, which had net debt of about GBP101 million at the end of
July, is due to issue a trading update in February, the FT states.

The Panel on Takeovers and Mergers is an independent body,
established in 1968, whose main functions are to issue and
administer the City Code on Takeovers and Mergers and to supervise
and regulate takeovers and other matters to which the Code
applies.  Its central objective is to ensure fair treatment for
all shareholders in takeover bids.

Mouchel Group plc -- http://www.mouchel.com/-- is a consulting
and business services company supporting clients in developing and
managing their infrastructure assets.  The Company operates in
three segments: Government Services, Regulated Industries and
Highways.  The Government Services segment provides a range of
services to central and local government together with health and
education authorities.  The Regulated Industries segment provides
a portfolio of consulting, design, asset modeling and asset
management, and is a provider in the water sector.  It supports
the development of new product and systems technologies in the
areas of leakage management, flood prevention, water treatment and
public health.  The Highways segment delivers a planning, design,
maintenance and operations service to highway authorities.  It
enables the management of the movement of people, goods and
services.


MULTIBUILD HOLDINGS: Balfour Beatty Buys Two Units for GBP1.9 Mln
-----------------------------------------------------------------
Rhiannon Hoyle at Construction News reports that Balfour Beatty
has acquired Stockport-based Multibuild Hotels and Leisure and
Multibuild Interiors for GBP1.9 million.

According to Construction News, the companies -- which were owned
by Multibuild Holdings -- are based in Stockport and specialize in
the construction and fit-out of hotel and leisure facilities.

Construction News recalls Multibuild went into a company voluntary
arrangement in December after running into financial difficulties.

As reported by the Troubled Company Reporter-Europe on Jan. 18,
2010, Construction News said Multibuild will be wound up once its
recently agreed company voluntary arrangement comes to an end.
Construction News disclosed the GBP69 million turnover firm's
latest accounts, filed at Companies House on Christmas Eve, reveal
that the directors have "resolved to wind up the company", and
that as such it is no longer operating as a going concern.
Construction News said details of the CVA show Multibuild had
about 250 creditors, which were owed a total of GBP11.3 million.
Under the terms of the CVA, creditors were asked to accept a
percentage of the debts they are owed, Construction News
disclosed.


READER'S DIGEST: UK Arm Faces Collapse After Pension Deal Fails
---------------------------------------------------------------
Patrick Hosking at The Times reports that The Reader's Digest
Association, Ltd., the British arm of Reader's Digest, was on the
brink of financial collapse Monday night after a deal to prop up
its sagging pension fund fell apart.

According to the report, the jobs of 135 employees and the full
pensions of 1,600 past and present employees in the UK hung in the
balance after negotiations between the American parent, Reader's
Digest Association, and Britain's Pensions Regulator reached
deadlock.

In January, the UK entity came to an agreement with the trustees
of its pension plan and the UK Pension Protection Fund to resolve
the company's UK pension fund deficit.  According to The Times,
Reader's Digest had proposed to inject GBP10.9 million and one
third of the equity of the UK business into the pension fund,
which has a shortfall of GBP125 million.  The scheme would then
have been transferred to the Pension Protection Fund, the industry
lifeboat, the report says.

The agreement was contingent on approval from the UK Pensions
Regulator, which has indicated that it will not approve the
pension application.  On Monday, the Company said that, in light
of this unexpected ruling, the UK entity is now reviewing its
options in an attempt to find a solution.

"If a deal cannot be agreed between RDA Inc and the Pensions
Regulator, RDA Inc will not be able to continue its support for
the UK company.  If that is the case, the directors of the UK
business will have no choice but to file for administration," The
Times quoted a spokesman for RDA as saying.

On Monday, Reader's Digest said it has elected to temporarily
delay its emergence from Chapter 11 bankruptcy in the U.S. to
address the issue involving the pension program of the UK entity.
RDA said the issue is specific to the UK entity and does not
involve any other RDA company.  RDA's restructuring plan was
confirmed by the United States Bankruptcy Court for the Southern
District of New York on January 15, 2010, enabling the company to
choose its date for emergence. RDA expects to emerge within the
next few weeks.

               About The Reader's Digest Association

RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world.  The
company builds multi-platform communities based on branded
content.  With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries.  It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year.  Its global headquarters are in Pleasantville, N.Y.

Reader's Digest said that as of June 30, 2009, it had total assets
of US$2.2 billion against total debts of US$3.4 billion.

Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel.  Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel.  Ernst & Young LLP is auditor.  Miller Buckfire
& Co, LLC, is financial advisor.  AlixPartners, LLC, is
restructuring consultant.  Kurtzman Carson Consultants is notice
and claims agent.

The Official Committee of Unsecured Creditors is tapping BDO
Seidman, LLP, as financial advisor, Trenwith Securities, LLP, as
investment banker and Otterbourg, Steindler, Houston & Rosen,
P.C., as counsel.

Bankruptcy Creditors' Service, Inc., publishes Reader's Digest
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Reader's Digest and its affiliates
(http://bankrupt.com/newsstand/or 215/945-7000)


ROYAL BANK: JPMorgan Has Concerns Over Sempra Commodities Deal
--------------------------------------------------------------
Ellen Kelleher at The Financial Times reports that JP Morgan now
has concerns about buying the US division of RBS Sempra's
commodities trading business after revelations about a likely
crackdown on bank trading across the Atlantic.

According to the FT, it is understood that the US division of RBS
Sempra's commodities operations could be put up for sale
separately in an attempt to avoid any complications that might
arise if restrictions on bank trading were put in place by the
Obama administration.

The sale of the combined group, a joint venture between Royal Bank
of Scotland, and US group Sempra Energy, was triggered by a
European Commission state-aid ruling that ordered RBS to divest
its 51% stake, the FT notes.

The FT notes a person familiar with the negotiations on Sunday
described the talks continuing between JPMorgan and RBS as
"constructive".

For RBS, a swift sale of the business is part of the drive by
Stephen Hester, chief executive, to push ahead with the bulk of
the European Union-ordered divestments as quickly as possible to
draw a line under the bank's troubles, the FT says.

                           About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's
(RBS Group) and The Royal Bank of Scotland's Individual Ratings to
'D/E' from 'E' and removed the Rating Watch Positive.  The upgrade
of the Individual Ratings reflects improvements in the group's
capital combined with some progress in restructuring the balance
sheet.


SOVEREIGN MARINE: US$30 Million to Be Distributed to Creditors
--------------------------------------------------------------
The scheme payment percentage for Sovereign Marine & General
Insurance Company Limited has been increased from 65% to 80% with
effect from February 1, 2010.

The joint scheme administrators of Sovereign, John Wardrop and
Mike Walker, both partners in KPMG's restructuring practice in the
UK, stated that payments are expected to be made to all creditors
with an agreed scheme liability during March and April 2010.

Mr. Wardrop commented: "We are pleased to announce a further
US$30million will be distributed to Sovereign's creditors.  This
significant increase in the payment percentage from 65% to 80% is
the second since the bar date of April 7, 2008.  We are committed
to ensuring all Sovereign's assets are distributed to the
creditors as swiftly as possible.  To date, scheme claims of
US$200 million have been agreed with approximately US$130 million
paid to scheme creditors.  We are currently working to agree the
remaining claims."

Sovereign entered provisional liquidation in July 1997, following
which a scheme of arrangement was authorized by the court.  The
scheme became effective in January 2000.  On September 17, 2007,
the High Court of Justice sanctioned a closing scheme of
arrangement which became effective and binding on Sovereign and
its scheme creditors on October 10, 2007, with a claims bar date
of April 7, 2008.


* UK: Fiscal Policy Fails to Help Stresses on Businesses, PwC Says
------------------------------------------------------------------
Business leaders from PwC across the UK identify fiscal policy's
failure to adequately address the stresses on businesses as the
main concern for clients.  While the prevailing view from UK
businesses is that the economy is nearing or has already reached
the bottom of the recession, fear of a W-shaped or 'double dip'
recession remains high.  Low business investment was reported as a
key issue in all regions except London and the South East.  This
reflected both the lack of available credit and lackluster
business confidence.  Poor availability of credit also remains a
key problem across the country, particularly for small and medium
sized enterprises.

The inaugural issue of the PricewaterhouseCoopers' Regional Trends
Survey collates the results of a poll of PwC's regional business
leaders on the current prevailing sentiment among the wider
business community in their regions.  It also gives an outline of
UK business health, prospects and concerns.  Key findings include:

   -- political instability a key concern;
   -- lackluster business confidence;
   -- niche businesses a hit in the North;
   -- construction and engineering hardest hit sectors; and
   -- tax rises stifling entrepreneurship.

Kevin Nicholson, head of regions, PricewaterhouseCoopers LLP said:
"While there are regional variances in key business issues and
concerns, there is consensus across all regions of the importance
of government spending and the public sector to regional economic
growth.  Concern over the extent and nature of public spending
cuts yet to be detailed is widespread.  The extent of expenditure
cuts, given the fiscal deficit, is only now becoming apparent, and
the likelihood is that local authorities and regional governments
across the country will see significant cutbacks."

The North, Northern Ireland and South East regions also suggest
that political instability is a key concern possibly preventing
business confidence from recovering more strongly.  Uncertainty
regarding future taxes and post-election spending in these
regions, and additionally in Scotland, is leading businesses to
err on the side of caution when considering investment decisions.

Despite indications that the recession may be reaching its lowest
point, London and the North both report concerns over a potential
double dip, given that precedent from previous recessions points
to a rise in SME administrations in the post recession upturn.
The Midlands report significant skepticism about the government-
reported increases in bank lending, and suggest that increased
liquidity is being offered very selectively and under what are
often prohibitively strict terms.

                Niche Businesses a Hit in the North

Manufacturing has suffered from weak demand and uncertainty
remains as to when this is likely to pick up.  Wales & West,
Scotland and the North identify the weak pound as a driver of
improving exports, but rising costs of energy and other raw
materials have squeezed margins.  The North region reports the
relative success of niche manufacturers who have adopted new
manufacturing techniques at the expense of less efficient
mainstream companies.

The retail sector has seen decline in the North, though other
regions such as London have reported steady growth.  In the wider
services sector, Northern Ireland reports that the recession has
hit hard in a sector it considers strategically important to the
region.  Again, in the North the impression that smaller, niche
hotels have outperformed their larger counterparts prevails,
though north of the border in Scotland, hotels across the board
have benefited from buoyant tourist season as cautious
holidaymakers refrain from heading overseas.

Major upheavals in the financial services industry have led to
significant redundancies in the North and London, with most other
regions also seeing some effects.  London, as the center of the UK
financial market, saw most losses earlier in the crisis.  Business
services companies, too, have reduced head counts in an effort to
cut costs as clients seeking discounts are forcing margins down,
though the Midlands have seen Legal services firms performing
better than the national average over the period.

         Construction and Engineering Hardest Hit Sectors

The Midlands, Northern Ireland and the North have all seen
declines in house building activity, though house prices have
shown some signs of recovery in recent months, which may help to
reverse this trend.  Given that consumer credit markets are still
feeling the squeeze, however, it is probable that this is
predominantly a supply side phenomenon; full recovery is likely to
be some way off.

Kevin Nicholson, head of UK regions, PricewaterhouseCoopers LLP
says: "In the private sector many large construction projects have
been mothballed due to financial constraints.  Whether public
sector spending continues to take up the slack in the industry
after the upcoming general election remains hugely uncertain.
There is no doubt that the general sentiment amongst UK businesses
we work closely with is one of lackluster confidence."

Declines in the construction, manufacturing and financial services
industries have been significant contributors to rising
unemployment across the UK.  The rise has been markedly higher in
the Midlands than in other UK regions and above average in the
North, with the South East taking over from Northern Ireland in Q4
2008 as the region with the lowest unemployment rate. London has
the highest unemployment rate at 9.0%.

                Tax Rises Stifling Entrepreneurship

The South East suggested that tax rises are stifling
entrepreneurship in the region, a view which is echoed in London
where there are concerns that the 50% rate and changes to non-
domicile tax policy have led to executives and senior management
moving elsewhere. In Scotland, quantitative easing is judged to
have had little visible effect on the Scottish financial sector,
and other broad policies such as VAT cuts have had similarly
little noticeable effect. Meanwhile Northern Ireland feels that
Westminster-centric policies are simply not having an impact
locally.

The PwC Regional Trends Survey was carried out directly with our
regional leaders with input from client teams to give an overview
of business confidence and trends in the each region.  In
conducting the survey, regional leaders were asked to give an
indication of the current prevailing sentiment among the wider
business community in their region.

The regions are London, Midlands, The North, Northern Ireland,
Scotland, The South East and West & Wales.


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


* IATA Expects More Bankruptcies in Global Airline Industry
-----------------------------------------------------------
The International Air Transport Association on Friday reported
December and full-year 2009 demand statistics for international
scheduled air traffic that showed the industry ending 2009 with
the largest ever post-war decline.  Passenger demand for the full
year was down 3.5% with an average load factor of 75.6%.  Freight
showed a full-year decline of 10.1% with an average load factor of
49.1%.

"In terms of demand, 2009 goes into the history books as the worst
year the industry has ever seen. We have permanently lost 2.5
years of growth in passenger markets and 3.5 years of growth in
the freight business," said Giovanni Bisignani, IATA's Director
General and CEO.

International passenger capacity fell 0.7% in December 2009 while
freight capacity grew 0.6% above December 2008 levels.  Yields
have started to improve with tighter supply-demand conditions in
recent months, but they remained 5% to 10% down on 2008 levels.
"Revenue improvements will be at a much slower pace than the
demand growth that we are starting to see.  Profitability will be
even slower to recover and airlines will lose an expected US$5.6
billion in 2010," said Mr. Bisignani.

Seasonally adjusted demand figures for December compared to
November 2009 indicate a 1.6% rise in passenger traffic while
freight remained basically flat with a 0.2% decline.
International Passenger Demand

December 2009 passenger demand recorded a 4.5% improvement
compared to December 2008, with a load factor of 77.6%.  While
this is an 8.4% demand improvement from the February 2009 low
point, it is still 3.4% below the early 2008 peak.

    * Carriers in Asia-Pacific, Europe and North America recorded
      year-on-year declines in passenger demand of 5.6%, 5.0% and
      5.6% respectively in 2009.  Asia-Pacific carriers stand out
      as benefitting most from the year-end upturn with an 8.0%
      year-on-year improvement in December.  This reflects their
      35% contribution to the year-end rise boosted by the
      significant economic upturn in the region.  By contrast,
      European carriers saw a 1.2% decline and North American
      carriers declined by 0.4%.  While both North American and
      European carriers saw demand improvements in the first half
      of the year, the second half was basically flat.

    * Middle Eastern carriers generated the fastest growth in
      passenger traffic at the end of the year with a 19.1%
      increase in December (and 11.2% growth for the entire year).
      These gains result from Middle Eastern carriers taking a
      larger share of long-haul connecting traffic over their
      hubs.

    * Latin American carriers recorded 7.1% growth in December.
      Full-year traffic growth was constrained to 0.3% due to the
      impact of Influenza A(H1N1) fears during the second and
      third quarters.

    * Africa's carriers experienced a sharp decline of 6.8% in
      2009 primarily on an exceptionally weak first half.  Their
      year ended with December demand at 3.1% above previous year
      levels.

                   International Freight Demand

December 2009 freight demand showed a 24.4% improvement on
December 2008 with a load factor of 54.1%.  This improvement is
exaggerated by the exceptionally weak performance in December 2008
which was the low point on the cycle.  Freight demand is still 9%
lower than the peak in early 2008.  Optimism is returning to the
industry as purchasing managers survey indicators reached a 44-
month high in December pointing towards increased freight volumes
in the coming months.

    * Asia-Pacific carriers accounted for over 60% of the increase
      in international air freight markets over the past 12
      months -- outperforming their 45% market share.  Despite
      this improvement, Asia-Pacific carriers' freight volumes
      remain 8% below peak levels.

    * European carriers remain 20% below 2008 peak levels
      reflecting the glacial pace of economic recovery in Europe
      compared to Asia-Pacific.

    * Middle East carriers and Latin American carriers are smaller
      market participants, but ended the year better than peak
      levels by 7% and 21% respectively.

"The industry starts 2010 with some enormous challenges.  The
worst is behind us, but it is not time to celebrate.  Adjusting to
2.5-3.5 years of lost growth means that airlines face another
spartan year focused on matching capacity carefully to demand and
controlling costs," said Mr. Bisignani.

"We also face a renewed challenge on security as a result of the
events of 25 December 2009.  The approach of the Obama
administration is encouraging with Department of Homeland Security
Secretary Janet Napolitano visiting IATA's offices in Geneva to
engage industry to find solutions.  We agreed that governments and
industry must cooperate and we are preparing for a meeting in the
coming weeks to follow-up on our recommendations which focused on
finding more efficient ways to implement intelligence-driven and
risk-based security measures," said Mr. Bisignani.

"Governments and industry are aligned in the priority that we
place on security.  But the cost of security is also an issue.
Globally, airlines spend US$5.9 billion a year on what are
essentially measures concerned with national security.  This is
the responsibility of governments, and they should be picking up
the bill," said Mr. Bisignani.

                           *     *     *

Chan Sue Ling and Liza Lin at Bloomberg News report that
Mr. Bisignani said the global airline industry will take at least
three years to recover from a travel slump caused by the worst
recession in six decades.

Bloomberg also reports that Chris Tarry, an independent analyst in
London, who has followed the industry for more than two decades,
said, "A lot of capacity is going to come into the industry.
Capacity will mean that prices and fares go down, so it will make
it even more difficult for a recovery in profit."

"It's going to be a bumpy road," Mr. Tarry said, according to
Bloomberg.

Bloomberg relates the trade group said globally, airlines will
probably post losses totaling US$5.6 billion this year.  That's
about half of last year's estimated US$11 billion deficit,
Bloomberg notes.

Bloomberg relates IATA Chief Economist Brian Pearce said while the
industry's worst loss to date was almost US$13 billion in 2001
following the Sept. 11 terror attacks, an US$80 billion revenue
decline last year was "vastly bigger" than anything previously
experienced.

Bloomberg further notes Mr. Bisignani said more airlines will go
bankrupt.  Bloomberg, citing IATA, discloses about 34 carriers
have gone out of business since 2008.

"I don't think bankruptcies are over for airlines anywhere across
the world," Mr. Tarry said, according to Bloomberg.  "Although
2009 has been difficult for airlines, for some airlines, 2010 may
be more difficult still."


* Political Interference Greatest Risk Facing Banking Industry
--------------------------------------------------------------
The greatest risk now facing the banking industry is not financial
but political, according to the latest "Banking Banana Skins"
survey conducted by the CSFI in association with
PricewaterhouseCoopers.

The annual poll of banking risk puts "political interference" at
the top of a list of the 30 most serious risks to banks during
this period of financial crisis.  The poll is based on responses
from 450 senior figures from the financial world in 49 countries.

Respondents, who include practicing bankers as well as close
observers of the financial scene and regulators, said that the
"politicization" of banks as a result of bail-outs and takeovers
posed a major threat to their financial health.

This view was shared by all types of respondents in all the major
banking regions, though for different reasons. Bankers saw
politics distorting their lending decisions.  Non-bankers said
that political rescues had damaged banks by encouraging reckless
attitudes.  Regulators worried that governments would withdraw
their support from banks before they had time to rebuild their
financial strength, precipitating another collapse.

"Political interference" has never appeared as a risk in 15 years
of "Banana Skins" surveys.  The top risk is closely linked to the
No. 3 risk, "Too much regulation", and the concern that banks will
be further damaged by over-reaction to the crisis.

David Lascelles, survey editor, said: "It is ironic that politics
should emerge as a risk when the banks had to be rescued in the
first place.  But there is clearly a crisis in the relationship
between banks and society, and it will take years to rebuild
trust.  Until it is, banks will operate under a financial
handicap."

John Hitchins, UK banking leader, PricewaterhouseCoopers LLP said:
"With political interference as the top risk and too much
regulation at number three, the concern is that the financial
crisis has taken the banking industry's future out of its own
hands.  The dash by governments to rescue their banks from
disaster may have staved off a collapse of the system, but it has
left attitudes to the banking industry deeply politicized.  A
proportionate response is now needed to avoid damaging the banks'
long term capacity to return public funds and enable them to play
their essential role in the wider economy effectively.

"This year's survey is a well timed warning that the cumulative
effect of current regulatory initiatives may have unintended
consequences.  The need to rebuild trust between banks and
regulators is therefore more acute than ever."

Many of the risks identified by the survey -- notably credit risk
at No. 2 -- stem from concern about the effects of the recession
on the banking industry.  The bulk of respondents were gloomy
about the outlook, fearing a "double dip" recession with a further
wave of bad debts hitting the banks.  The mood was particularly
dark in the Asia Pacific region where respondents are worried that
a new asset bubble may burst, bringing about a collapse of
confidence in the credit markets.

The poll also reflects concern about the banks' ability to manage
themselves safely.  "Banana Skins" such as the quality of risk
management, corporate governance and management incentives all
feature prominently as potential sources of risk.

But some risks are also seen to be easing as the world pulls out
of the crisis.  A number of financial risks -- liquidity,
derivatives, credit spreads and equities -- are down on the
previous poll in 2008.  A striking fall is the risk from hedge
funds, down from No. 10 to No. 19, as their threat is seen to
diminish.  "Financial plumbing" risks are also seen to be low:
back office, payments systems etc.  All performed well in the
crisis.  Environmental risk is at an unchanged No. 25 position
despite the heat generated by the Copenhagen Summit.

The CSFI's "Banana Skins" series provides periodic snapshots of
the risk landscape in the financial services sector.  As well as
the banking series, the CSFI conducts surveys of the risks in
insurance and microfinance.

The Centre for the Study of Financial Innovation, founded in 1993,
-- http://www.csfi.org.uk-- is an independent not-for-profit
think tank based in London which researches the future of
financial services.  It has an affiliate in New York, New York
CSFI.  The CSFI has been producing regular Banana Skins surveys
since 1995.


* European Real Estate Sector in for Long, Slow Haul to Recovery
----------------------------------------------------------------
With some credit easing and property values stabilizing, Europe's
real estate industry will see some improvement in 2010, but still
faces a 'long, slow haul' to recovery, according to Emerging
Trends in Real Estate(R) Europe 2010, published Monday by the
Urban Land Institute (ULI) and PricewaterhouseCoopers.

The seventh annual report is based on surveys and interviews with
well over 600 of the industry's leading authorities, including
investors, developers, financiers, and property managers.
Overwhelmingly, respondents cite the need to move forward
cautiously, as Europe's economy remains fragile due to high
unemployment and low consumer spending.

Additionally, the report notes the looming problem of massive
refinancing of real estate debt totaling hundreds of billions
worth of euros.  The industry is apprehensive as it is not clear
how this will play out, in terms of whether financial institutions
will sell real estate assets and loans or "extend and pretend."
This challenge for the real estate sector is compounded by
uncertainty over how, and when, European governments might wean
their respective economies off the massive injections of state
support.  An abrupt withdrawal of the stimulus funds could derail
the recovery, and even push the economy back into recession, the
report notes.

John Forbes, real estate leader in Europe, Middle East and Africa,
PricewaterhouseCoopers, remarked: "This year there is a sense of
cautious optimism. Sentiment regarding investment prospects has
stabilized and although sentiment regarding development continues
to decline, it is a less dramatic fall than that witnessed last
year.  The key issue is the occupier side of the equation.
Investors are nervous and they are concentrating on the deeper,
more liquid markets."

"Europe's economic recovery is underway, but it will be sluggish
and uneven," said ULI Europe Chairman Alexander Otto. "We are
looking at a crawl back up the hill, and how much values recover
will depend on where Europe ends up economically against global
competition."  Mr. Otto, chief executive officer of ECE
Projektmanagement in Hamburg, Germany, noted that in general,
Germany is viewed more favorably for investment and development
activity than other countries, due primarily to its broad economy.
In terms of individual cities, Munich and Hamburg were ranked by
the report as the top two prospects in 2010 for existing
portfolios, a ranking they also held in 2009.  "The diverse
economic base and even balance between supply and demand has kept
office markets in both cities healthy, making them an appealing
choice for investment," Mr. Otto said.

Paris was ranked third by Emerging Trends in terms of prospects
for existing portfolios, edging out London due in part to the
general perception that it has a wider economic base and is less
dependent than London on the financial services sector.
Interviewees pointed to the low level of vacancies in Paris,
raising its ratings for investment opportunities and, to a lesser
extent, for development.

Investor sentiment regarding London "improved significantly" from
2009, due primarily to a market correction led by an infusion of
funds from the Middle East and Asia.  The city ranked fourth in
2010 for investment in existing properties and first for new
acquisition opportunities.  For acquisitions, the main focus is
offices, with nearly half the respondents citing that as the
preferred asset type.  Despite some skepticism over the limited
extent of the rebound, some interviewees indicated that they are
confident enough about London to make development plans for 2011,
if not for this year.

William Kistler, president of ULI EMEAI (Europe, Middle East,
Africa and India) noted that in the current environment, there is
a tendency among investors to focus on markets they know.
"Transparency and liquidity attract investors who would not
consider other markets, and this is holding true for both London
and Paris," Mr. Kistler said.  "These markets have strong interest
from non-European investors.  2010 is all about playing it safe
and avoiding risk."

Additional markets rounding out the "top ten" named by Emerging
Trends for existing property performance prospects are Vienna,
Milan, Istanbul, Berlin, Rome and Frankfurt.

In terms of property types, the quality of the location, building
and tenant is the main consideration, according to the report.
Centre city offices, high-end street retail and shopping centers
are the top commercial investment choices for 2010.  Residential
investments are also highly rated.  Although mainstream property
types are preferred, niche sectors continue to have some limited
appeal, including student housing, self storage, retirement homes,
social housing, healthcare facilities and infrastructure.  Green
development of any kind is gaining significance, particularly with
the European Union introducing compulsory energy efficiency
ratings for buildings.  "It should become part of the DNA of our
businesses," said one respondent.

Among the top tips from the report's respondents:

    * Keep it simple: Go for "plain vanilla real estate
investments that everybody understands."

    * Best buys: Core is king.  Stick to core and core-plus
investments in large, liquid markets.

    * Development: For those with the stomach for risk, buy land
and start building up a pipeline of projects. Residential and
mixed-use are the best sectors.

    * Go for debt: Buy a bank or set up a lending platform.  Now
is a great time to lend on real estate, if you have the right
skill-set and no legacy issues.  Values are low and "the gap
between cost of funds and loan margins is as good as it gets". Or,
buy distressed debt at a discount.

    * Green is good: Real estate is on the front line in the
battle against climate change.  "There is now a clear realization
that environmental and social responsibility is connected to
economics.  It has become an action issue."

                  About the Urban Land Institute

The Urban Land Institute -- http://www.uli.org/-- is a global
nonprofit education and research institute supported by its
members.  Its mission is to provide leadership in the responsible
use of land and in creating and sustaining thriving communities
worldwide.  Established in 1936, the Institute has nearly 33,000
members representing all aspects of land use and development
disciplines.


* Brown Rudnick Elects Four Lawyers to the Firm Partnership
-----------------------------------------------------------
Brown Rudnick, an international law firm has elected four
attorneys to the partnership: Patrick Elliot, Diane M. Nardi,
Gordon Z. Novod and Daniel J. Saval.  Among the new partners is
one British lawyer practicing in Brown Rudnick's London office, as
well as attorneys in the Firm's New York office.

Brown Rudnick's CEO Joseph F. Ryan said, "Our Firm's reputation is
rooted in the excellence of our lawyers.  Each of our new partners
brings to the Firm the hallmarks of success -- legal acumen,
superior client service, business savvy and good corporate
citizenship.  We appreciate their overall contributions and
welcome them to the partnership."

Patrick Elliot represents clients in matters relating to
insolvency, restructuring and commercial litigation.  He acts for
hedge funds, insolvency practitioners, private equity houses,
corporate, technology and media clients.  His work includes
contractual, intellectual property, trust, employment and property
disputes, antecedent transactions and directors' breaches of duty.
He has advised clients on making recoveries from the Lehman group
and in the Enron and TXU CVAs, in relation to the Cross-Border
Insolvency Regulations 2006, attempted guarantee stripping in a
CVA, breach of trust, schemes of arrangement, MVLs, unfair
prejudice petitions, administration applications, arbitrations,
dishonest assistance, charge holder claims, transfers of IPRs,
ROT, and misfeasance.

Diane M. Nardi's practice encompasses complex commercial
litigation matters, including breach of contract actions,
intellectual property matters, partnership disputes and federal
civil RICO defense.  Through her work with the New York chapter of
Volunteer Lawyers for the Arts and in conjunction with the Firm's
Center for the Public Interest, she provides legal assistance, on
a pro bono basis, to artists who are unable to afford private
counsel.  Similarly, Ms. Nardi manages the Manhattan Legal
Services/Brown Rudnick Summer Unemployment Insurance Pro Bono
Program, which assists indigent individuals in New York who are
appealing the denial of their unemployment benefits.

Gordon Z. Novod represents creditors' committees, bondholders,
distressed investors, lenders, indenture trustees, trade
creditors, debtors, licensors, and other parties-in-interest in
bankruptcy-related proceedings, out-of-court restructurings, and
distressed asset and debt transactions.  His industry experience
spans the automotive, construction, energy, entertainment, gaming,
manufacturing, and retail sectors.  He has drafted and negotiated
all aspects of plans of reorganization and has negotiated debtor-
in-possession financing and cash collateral use, as well as asset
sale-related matters.  He also advises clients on complex
corporate and credit documents, including indentures, credit
agreements, intercreditor agreements, security and sale-leaseback
agreements, and other documents related to lending transactions.

Daniel J. Saval focuses his practice in the area of corporate
restructuring and creditors' rights.  He frequently represents
official and ad hoc committees, major creditors, indenture
trustees and other significant parties in all aspects of complex
Chapter 11 cases and out-of-court restructuring transactions.  He
has experience in negotiating and documenting Chapter 11 plans and
financing arrangements, contested DIP financing, valuation and
plan confirmation proceedings, cross-border insolvency
proceedings, and a broad range of bankruptcy litigation matters.
He also has experience in complex bond indenture litigation.

                     About Brown Rudnick LLP

Brown Rudnick -- http://www.brownrudnick.com/-- is an
international law firm with offices in the United States and
Europe.  The firm represents clients from around the world,
providing business-focused solutions that address today's ever-
changing, ever-demanding competitive marketplace.  With an
entrepreneurial and collaborative mindset, Brown Rudnick offers a
broad slate of capabilities and talents in areas that include:
Bankruptcy & Corporate Restructuring, Complex Litigation, Finance,
Corporate, Intellectual Property, Real Estate, Government
Contracts, Government Law & Strategies, Energy, and Health Law.


                            *********

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.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

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., Frederick,
Maryland USA.  Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Joy A. Agravante and Peter A. Chapman, Editors.

Copyright 2010.  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$625 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 Christopher Beard at 240/629-3300.


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