BRIEF-Quantum Property says still engaging with advisors to assess unit liquidation impact

* Still engaging with legal advisors to assess impact ofliquidation of unit A Million Up Investments 105Source text for Eikon: Further company coverage:

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Polish presidential aide says banks safe despite SK Bank failure

WARSAW, Nov 27 (Reuters) - The Polish president's economicadvisor Zdzislaw Sokal told Reuters that the failure of SK bankwhich cost other lenders some 1.4 billion zlotys ($348.17million) would not.

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UPDATE 1-Poland seeks to reassure on health of its banks

WARSAW, Nov 27 (Reuters) - The Polish banking sector remainssound despite the costs incurred from this week's failure of SKBank, the economic adviser to the country's president said onFriday.

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Spanish government says Abengoa viable, needs partner

MADRID, Nov 27 (Reuters) - Spain's Economy Minister Luis deGuindos said on Friday that the government believed troubledrenewable energy group Abengoa was viable, though itwas waiting for more.

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BRIEF-Lithuanian Shipping: general director applies for company bankruptcy proceedings

* Says its general director applied to District Court ofKlaipeda to initiate company bankruptcy proceedingsSource text for Eikon:

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UPDATE 2-AIB notches up AT1 debut on comeback trail

LONDON, Nov 26 (IFR) - Allied Irish Banks easily placed500m of Additional Tier 1 bonds with investors on Thursdaymorning, an endorsement of its turnaround since being bailed outby the government.

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Poland's Getin Noble says to pay $30 mln for SK Bank bankruptcy

WARSAW Nov 24 Polish lender Getin Noble Bank said on Tuesday that it would have to pay an estimated 120 million zlotys ($30 million) into a state bank guarantee fund to cover the bankruptcy of a small local lender SK Bank.

The fee will have an impact on the lender's results in the fourth quarter of this year, it said in a statement. ($1 = 4.0064 zlotys) (Reporting by Adrian Krajewski; Editing by Marcin Goettig)

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AIB sets initial price thoughts on 500m Additional Tier 1 bond

LONDON, Nov 26 (IFR) - Allied Irish Banks is marketing a500m perpetual non call five-year Additional Tier 1 bond at7.5% area, according to a lead.

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BRIEF-Poland's PKO says SK Bank failure to lower its Q4 net by $68 mln

* Costs associated with the bankruptcy of small Polishlender SK Bank will lower PKO BP's fourth-quarter net profit by274 million zlotys ($68.1 million), PKO said in a statement onThursday.

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Creditors of Spain's Abengoa to meet KPMG on Monday-source

MADRID, Nov 27 (Reuters) - Various bank creditors of Spain'sAbengoa will meet KPMG on Monday, a sourceinvolved in the talks said on Friday.

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Puerto Rico's development bank says creditor meeting is 'positive'

SAN JUAN Nov 20 Puerto Rico's Government Development Bank on Friday presented some of the island's creditors with more details on a forthcoming plan to consolidate their bonds into a single bond exchange, in a meeting the GDB's president called "very positive and productive."

Melba Acosta, the president, spoke to reporters after a meeting between the GDB and advisers to some of the U. S. territory's financial creditors in New York.

GDB has said it plans to offer creditors a universal debt exchange, or "superbond," which in essence would allow bondholders across several Puerto Rican credits to exchange their debt for a single new bond.

But with existing bonds backed by different revenue streams from the various issuing authorities, such as the GDB itself and Puerto Rican sales tax authority COFINA, Acosta said revenue streams might be consolidated to support the new bond.

"If we have different credits that have different repayment sources . there will most probably be a consolidation of repayment sources," Acosta said.

The bond offer may also include variations to accommodate the details of different bond agreements, rather than a strict one-size-fits-all approach, said Acosta, who did not attend the meeting but was briefed on it.

Puerto Rico is in the midst of an economic crisis, facing a 45 percent poverty rate, heavy emigration to the mainland United States and $72 billion in debt.

Its governor, Alejandro Garcia Padilla, has called for concessions from bondholders but has faced resistance, with creditors demanding his administration do more to reform spending.

Friday's meeting in New York was open to creditor advisers who had signed nondisclosure agreements, only about 15 percent, according to a Friday note by Height Securities Puerto Rico analyst Daniel Hanson.

Acosta said attendees included lawyers and financial advisers to holders of general obligation bonds, which carry constitutional protections; bonds issued by the GDB; COFINA bonds; and cooperatives and mutual funds with exposure to Puerto Rican debt.

The meeting comes ahead of a Dec. 1 hearing about Puerto Rico before the U. S. Senate Judiciary Committee, as Congressional Republicans mull whether to support legislation that could help Puerto Rico restructure its debt.

Dec. 1 is also the day when Puerto Rico owes $355 million in bond payments on which some analysts have said it is likely to default.

Hanson said Friday's creditor meeting might have been an attempt to "demonstrate to the U. S. Congress that the GDB is serious" about government reforms. (Reporting by a contributor in San Juan; Editing by Leslie Adler)

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AIB to price 500m PNC5 AT1 bond at 7.375% yield

LONDON, Nov 26 (IFR) - Allied Irish Banks will price its500m perpetual non call five-year Additional Tier 1 bond at ayield of 7.375%, following guidance of 7.50% area, according toa lead.

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Marseille court selects Corsica's Rocca group for SNCM bid

MARSEILLE, France Nov 20 The Marseille commercial court on Friday selected Corsican transport entrepreneur Patrick Rocca as preferred bidder for France-Corsica ferry operator SNCM.

The ruling clears the way for SNCM majority shareholder Transdev, a transport firm jointly owned by water and waste group Veolia and French state bank CDC, to sell SNCM. The company has been under court protection since late last year, when it failed to repay a loan to Transdev.

(Reporting by Jean-François Rosnoblet, writing by Geert De Clercq; Editing by Laurence Frost)

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PRESS DIGEST - Wall Street Journal - Nov 2

n">Nov 2 The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

- Sprint Corp Chief Executive Marcelo Claure is looking to shave as much as $2.5 billion from the company's operating expenses in the next six months. Among the first things to go: free water bottles and yogurt.(on.wsj.com/1N6CUNG)

- A short seller attacking Valeant Pharmaceuticals International Inc has pulled back on hints that he would unleash new bombshell revelations Monday about the drug company. (on.wsj.com/1KRISA2)

- The Affordable Care Act's third open enrollment season got under way, with a new array of health plans that show how the law's influence is starting to transform the insurance industry. (on.wsj.com/1Wq1EdV)

- There is a new price surge in the pharmaceutical industry - for a limited number of government-issued vouchers that drug makers, including AbbVie Inc and Sanofi SA, are buying to speed products to market. (on.wsj.com/1NLeufs)

- The United Auto Workers union is facing new pressures after a split vote at two plants showed the union's leadership still has much work ahead if it wants members to ratify a new four-year contract with General Motors Co. (on.wsj.com/1MsbnW9)

- Newspaper publisher Freedom Communications Inc, owner of the Orange County Register, on Sunday filed for bankruptcy-court protection with a plan to sell the beleaguered company to a local investment group led by the company's publisher. (on.wsj.com/1RItgEh) (Compiled by Rishika Sadam in Bengaluru)

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Bankrupt Walter Energy set to auction U.S. coal assets

* Judge approves rules for January auction

* Unions, retirees oppose sale that seeks to end labor pacts

* Walter Energy warns liquidity to run out by February

By Tracy Rucinski

CHICAGO, Nov 24 Bankrupt Walter Energy Inc received court approval on Tuesday to auction its coal assets as part of a proposal to emerge from bankruptcy that has faced fierce opposition from unions and retirees in its home state of Alabama.

Walter Energy is one of four debt-laden U. S. coal producers that have sought Chapter 11 protection this year as plummeting commodity prices, weak demand and increased environmental regulation hurt operations.

The company has an offer from senior lenders for assets set to go on the auction block, including its mines in Alabama - the heart of its business - in exchange for cancelling $1.25 billion of its debt.

The lenders have also offered $5.4 million in cash.

The lenders' bid is subject to a higher proposal at the auction. The money raised will be distributed to other creditors.

To appease lenders' demands for the sale, Walter Energy has asked for court approval to reject collective bargaining agreements for more than 800 union workers and terminate retirement benefits for some 3,000 retirees.

United Mine Workers of America opposes the plan.

"If successful, Walter Energy will force many retirees into making life or death decisions about getting needed health care or buying food," UMWA said in a statement on Tuesday.

"Nobody gave them their health care and pension benefits - they earned them," it said.

U. S. Bankruptcy Judge Tamara Mitchell approved the rules for the auction, scheduled for Jan. 5, on Tuesday, and reminded workers and retirees in the court room that a separate hearing would be held on Dec 15. and Dec. 16 to discuss the labor pacts.

A hearing to approve the result of the auction is set for Jan. 6.

Walter Energy, which exports metallurgical coal globally, warned in court documents that its liquidity will run out by the end of January if the sale does not go through.

More than 90 percent of Walter Energy's coal sales in 2014 consisted of steel-making coal, which has suffered depressed prices and low demand from China. The company also produces coke and natural gas, besides thermal coal. Its operations in Canada are not part of the auction.

The case is In re Walter Energy Inc., 15-02741, U. S. Bankruptcy Court, Northern District of Alabama (Birmingham). (Reporting by Tracy Rucinski; Editing by Bernard Orr)

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UPDATE 1-Marseille court selects Corsica's Rocca group for SNCM bid

(Adds detail on Rocca bid, impact on Veolia, other bidders)

MARSEILLE, France Nov 20 The Marseille commercial court on Friday selected Corsican transport entrepreneur Patrick Rocca as preferred bidder for France-Corsica ferry operator SNCM.

The ruling clears the way for SNCM majority shareholder Transdev, jointly owned by water and waste group Veolia and French state bank CDC, to sell SNCM.

The company has been under court protection since late 2014, when it failed to repay a loan to Transdev, which owns 66 percent of SNCM.

An SNCM sale would allow Veolia and CDC to unwind their Transdev 50-50 joint venture.

Veolia wants to get out of the transport business by selling part of its stake to CDC, which has agreed to buy out Veolia on condition that SNCM is sold first.

Rocca's offer specifies he will keep 873 of the some 1,500 full-time jobs at SNCM, leave SNCM's current management in place and proposes to offer staff a 10 percent stake in SNCM.

The European Union in 2013 ordered SNCM to repay 440 million euros worth of illegal state aid but the takeover and restart of SNCM's operations under new ownership will allow the EU's legal claim to expire.

The three other groups submitted an SNCM bid to the court: Mexico's Baja Ferries, Corsican consortium Corsica Maritima and a group including Greek maritime transport group Arista.

SNCM unions said they plan to strike on Saturday. (Reporting by Jean-François Rosnoblet; writing by Geert De Clercq; editing by Laurence Frost and Jason Neely)

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U.S. bankruptcy lawyer faces fresh creditor attack over Caesars

n">Oct 30 Junior creditors of Caesars Entertainment launched a fresh attack against a top U. S. restructuring attorney, alleging that James Sprayregen of Kirkland & Ellis misled a judge and asking that the law firm be disqualified from parts of the casino group's bankruptcy case.

Jones Day, the junior bondholders' law firm, asked the court to reconsider a May order that allowed the bankrupt unit of Caesars Entertainment Corp to hire Kirkland, led by Sprayregen.

The dispute between two of the best-known law firms in corporate restructuring adds another layer of feuding to Caesars' $18 billion bankruptcy, which involves the biggest U. S. private equity and hedge fund firms.

In a new court filing on Friday, Jones Day revealed evidence from a board meeting of the operating unit that it says shows testimony by Sprayregen at a trial over Kirkland's hiring by Caesars was incomplete and misleading.

Kirkland & Ellis denied the allegation and said it was without merit.

"Mr. Sprayregen testified truthfully and accurately at the retention hearing. Kirkland & Ellis is disinterested and fully qualified to represent the debtors, as the Bankruptcy Court previously ruled," the law firm said in an emailed statement. It said it is preparing a response.

Sprayregen, known as the "godfather of restructuring" for leading some of the biggest Chapter 11 cases, sparred with Jones Day's Bruce Bennett in the bankruptcy of the city of Detroit.

Jones Day initially filed a redacted version of the motion last week, but U. S. Bankruptcy Judge Benjamin Goldgar in Chicago rejected that for procedural reasons.

Junior creditors have been trying to prove that the Caesars parent and affiliate transferred the best properties out of the operating unit, which the junior creditors have said amounted to asset stripping.

A special governance committee of the bankrupt operating unit's board investigated the asset transfers and found them "constructively fraudulent."

However, rather than take legal action over those asset transfers, the operating unit's full board authorized a New York lawsuit to have the transfers declared legal. That would protect the parent company that now owns those top resorts at the expense of the operating unit, and the operating unit's creditors.

Stephen Lubben, a law professor at Seton Hall, said the confusion over Kirkland's role in representing the special committee may not be enough to disqualify firm, which would cost it millions of dollars in fees.

"But, again, this is not going to help relations in this case." (Reporting by Tracy Rucinski in Chicago and Tom Hals in Wilmington, Del.; Additional reporting by Jim Christie in San Francisco; Editing by Matthew Lewis)

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S&P maintains CC rating on Puerto Rico after U.S. Treasury proposal

SAN JUAN Oct 23 Standard & Poor's on Friday maintained its CC rating on $47.5 billion of tax-backed Puerto Rican bonds, reflecting a negative outlook after the U. S. Treasury Department pushed Congress to pass laws to address the island's economic crisis.

The U. S. commonwealth, facing $72 billion in debt, has said it could run out of cash by next June, and some analysts believe it will default as early as Dec. 1, when it owes a $355 million payment.

Treasury's proposal, the Obama administration's first public directive on how to address the U. S. territory's problems, would allow the Puerto Rican government to file for bankruptcy, improve its Medicaid and Medicare funding levels, and extend earned income and child tax credits to the island.

In a Friday statement, S&P said its rating "reflects our view that a default is highly likely, with or without enactment of this proposal."

S&P reasoned that, if enacted, bankruptcy could hurt rather than help bond prices by giving Puerto Rico court-sanctioned leverage to restructure.

The proposal is likely to face an uphill climb in Washington, which means a default likely could occur before legislation is passed anyway, S&P added.

At a Thursday hearing on the island's fiscal problems, held by the U. S. Senate Committee on Energy and Natural Resources, lawmakers expressed skepticism toward a timely passage of any Puerto Rico legislation.

Democratic senators urged Treasury to find creative ways to address Puerto Rico's problem itself, while Republicans demanded the island's government be more forthcoming about its financial statements.

The question of bankruptcy is central to Puerto Rico's crisis, because the commonwealth is excluded from the debt restructuring laws that govern U. S. states.

Some Puerto Rican leaders support granting the commonwealth the right to put certain ailing agencies into bankruptcy, which would put the island on an even footing with states.

Treasury's proposal would go a step further, allowing the government itself to file bankruptcy.

Creditors generally oppose bankruptcy in any form, because it would make it easier for Puerto Rico to cut their repayments.

(Reporting by Nick Brown; Editing by Leslie Adler)

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Lehman Brothers returns in deal that led to First Data IPO

WILMINGTON, Del Oct 22 First Data Corp's Chief Executive Officer Frank Bisignano hailed a $3.5 billion fund-raising in July 2014 for drawing a "who's who in equity investing" and paving the way for the payment processor's huge IPO last week.

The 2014 deal included one unusual investor: Lehman Brothers, the bank that collapsed in 2008 at the height of the financial crisis.

Lehman may be long gone from Wall Street, but its bankruptcy estate still manages a portfolio of more than $10 billion in assets, exceeding the market capitalization of fashion house Ralph Lauren Corp or property investment firm Kimco Realty Corp.

From an office in Manhattan, Lehman's staff manage piles of cash and securities, interests in real estate and private equity investments, including a stake in Formula One motor racing.

While bankruptcy estates focus on liquidating assets for the benefit of creditors, Lehman dusted off its investing expertise last year and spent $151 million on private placement of stock in First Data.

According to a court filing, the money was spent on a "pro-rata" share of the private placement, indicating Lehman had a previous relationship with First Data. Lehman provided financing in 2007 for the buyout of First Data, which was led by KKR & Co.

"When you get a $3.5 billion vote of confidence by some fabulous investors," Bisignano told an analysts call in July 2014, "the who's who in equity investing in it gives your customers great confidence in your ability."

The private placement of stock was credited by Bisignano for providing cash to pay down First Data's debt and returning the company to profit after years of losses.

Lehman's management can make investments if they determine it will likely benefit creditors.

Lehman and First Data declined to comment on the Lehman stake.

Lehman did not disclose how the First Data investment performed.

KKR, which was the lead investor in the 2014 private placement, has estimated in securities filings the value of its investment in First Data rose about 13 percent from the private placement through June 30. However, those gains may have been offset after First Data cut the IPO price by 20 percent from the top of its target range.

Shares in First Data were little changed at $15.36 on Thursday, below the $16 IPO price.

COMPLEX CASES

Lehman emerged from bankruptcy in 2012 with a new board selected by creditors, overseen by Chairman David Pauker, formerly the executive managing director of Goldin Associates, a financial consultancy. Christopher O'Meara, a former chief financial officer of Lehman, is the chief executive.

"I do think it's remarkable both how significant Lehman's assets have turned out to be and how much they still have," said David Skeel, a professor at University of Pennsylvania Law School.

The First Data deal is not even the largest investment by the bankrupt firm. In 2012, it ponied up about $3 billion to buy two minority positions held by other banks in Archstone, an owner of apartment complexes, giving it full ownership. It later sold Archstone for $6.5 billion.

Lehman had teamed up with Tishman Speyer to acquire Archstone for $22.2 billion, including debt, in 2007.

In total, Lehman's bankruptcy estate has distributed $105.4 billion to creditors. Of that, $77.2 billion was paid to third-party claims, with the rest paid to other Lehman affiliates. While more than $1 trillion of claims were filed, the estate will recognize about $330 billion, according to court documents.

Jonathan Lipson, a professor at Temple University School of Law, said the case could still require years of work as the estate pursues lingering litigation and awaits overseas affiliates to complete their liquidations.

"Enron's estate lasted forever and ever," Lipson said, referring to the power company that filed in 2001 and closed its bankruptcy case only last year. "That's what happens with really complex cases." (Reporting by Tom Hals in Wilmington, Delaware; Editing by Carmel Crimmins and Frances Kerry)

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South Africa's Evraz to defend its rescue against parent in court

JOHANNESBURG Oct 23 South Africa's Evraz Highveld Steel and Vanadium will defend its business rescue proceedings in court against British parent Evraz , the company said in a statement on Friday.

The South African steelmaker, seeking protection from creditors after heavy losses due to cheap imports from China, said East Metals AG and Mastercroft S. A. R. L had instituted court proceedings to have a vote by creditors earlier this month declared invalid.

Both are subsidiaries of the London-listed parent company, which acquired the South African steelmaker in 2008.

Creditors last week approved the South African steelmaker's rescue plan, which recommended an offer by Hong Kong based metals company, International Resources Limited, be accepted.

"Highveld and the BRPs intend opposing the application," said South Africa's Evraz, referring to itself and the business rescue practitioners that manage the company's protection from creditors.

The steelmaker in July issued notices to around 1,000 employees, nearly half its workforce, and closed its iron and steel making operations, saying that it would be a temporary measure and production will resume once market conditions improve and the company finds funding for its operations.

South Africa's government said in August it will impose a 10 percent import tariff on steel imports to protect the struggling industry.

(Reporting by TJ Strydom, editing by David Evans)

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Transaero creditor Sberbank says new owners could not save airline-RIA

MOSCOW Oct 22 Russia's biggest lender Sberbank does not believe the indebted Transaero airline could be saved even if it changes owners, RIA news agency quoted Sberbank First Deputy Chief Executive Maxim Poletaev as saying on Thursday.

The creditor would not withdraw its lawsuit seeking to declare Transaero bankrupt but was ready for talks with a co-owner of Russia's S7 Airlines who had signed an agreement to buy at least 51 percent of Transaero from its current owner, Poletaev was quoted as saying. (Reporting by Jack Stubbs; Writing by Maria Kiselyova)

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Russia's Sberbank has created 100 pct provisions for Transaero debt - CFO

LONDON Oct 22 Sberbank, Russia's largest bank, has created 100 percent loan-loss provisions for its loans to Transaero and any negative impact from the airline's problems would be minimal, Sberbank's chief financial officer told Reuters.

"We have quite limited exposure to Transaero so it would be a minimal negative impact if any, and provisions created are in the amount of 100 percent anyway," Alexander Morozov said in an interview after Sberbank's investor day in London. (Reporting by Sujata Rao; Writing by Alexander Winning; editing by Katya Golubkova)

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UPDATE 2-Puerto Rico utility inches closer to deal with insurers -source

(New throughout, adds background and analysis of negotiations with insurers)

By Nick Brown

SAN JUAN Oct 28 (Reuters) - Insurers of Puerto Rico Electric Power Authority bonds on Wednesday delivered terms for a debt restructuring to the utility, moving it a step closer to an accord with its last key creditor class, a person with direct knowledge of the matter told Reuters.

The insurers have been negotiating to provide a surety bond to serve as a reserve fund to effect a broader debt restructuring with the utility's other creditors.

Terms for the surety bond now need to be assessed by PREPA before a final deal can be struck.

A spokeswoman for PREPA and its chief restructuring officer, Lisa Donahue, declined to comment.

INSURERS WITH LEVERAGE

Insurers have taken center stage in talks to fix PREPA's balance sheet. Facing more than $8 billion in debt, PREPA reached deals in September with bondholders and lenders, who accepted 15 percent payment reductions in exchange for new bonds.

The Puerto Rican government has praised the deal as it undertakes similar restructuring talks with other creditors to reduce its $72 billion in total debt.

But the PREPA deal cannot work unless bond insurers, including Assured Guaranty and MBIA's National Public Finance Guarantee (NPFG), sign on.

When bondholders and lenders agreed to their deals, they did so on the premise that their new debt would be safer than the old, in part because PREPA would be required to maintain reserve funds.

The insurers are the ones negotiating to provide those reserves, in the form of a surety bond, a pot of liquidity they would guarantee, said the people close to the matter. Without the deal, talks could devolve into long, costly litigation.

Some remaining sticking points are economic, for example, the size and duration of the surety bond, said one source.

Another issue is governance. NPFG had criticized a proposed fiscal control board to oversee Puerto Rico's finances because the governor would appoint members without input from creditors, a second source said.

Changing the proposal is unlikely in practice, but the dispute underscores the credibility gap the government faces with creditors.

NPFG has taken the lead in restructuring talks, in part because it has more PREPA exposure than other insurers, with nearly $770 million in debt service due between 2016 and 2020, according to public documents. Assured, for example, has just $262 million in PREPA debt service through 2020, documents show.

Insurers are generally more resistant to concessions than bondholders because they guarantee debt at par, and are on the hook for losses. Bondholders, conversely, can acquire debt at discounts and still profit when principal values are cut.

NPFG, which faces its own financial struggles stemming from the global recession, has also been wary of making concessions at PREPA in part because it may have to make concessions to other Puerto Rican debt issuers, sources said.

In a note on Wednesday, Height Securities analyst Ed Groshans said bond insures are "at risk" of having to make payouts as soon as Jan. 1, when Puerto Rico could default on a $535 million payment of its general obligation debt.

PREPA, on the other hand, has been criticized by NPFG for refusing to raise rates on consumers, a move NPFG felt would have allowed it to pay its debt without a restructuring.

Representatives Assured and NPFG declined to comment. (Reporting by Nick Brown in San Juan; Editing by Lisa Von Ahn and David Gregorio)

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