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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

             Tuesday, May 24, 2005, Vol. 6, No. 101

                            Headlines

C Z E C H   R E P U B L I C

UNION POJISTOVNA: Financial Ministry Cancels License


G E R M A N Y

COMBE GMBH: Court Sets Claims Verification September
DIRK RAKOW: Interim Administrator Takes over Operations
EDA BACKWAREN: Creditors Meeting Set Next Month
ELEKTRO RAHM: Claims Deadline Nears
EMMERMANN GMBH: Bankruptcy Proceedings Begin

ENCON GMBH: Sets Creditors Meeting July
FISCHER GMBH: Hechingen Court Appoints Interim Administrator
HERMANN HAGEDORN: Creditors Claim Due Next Month
IL SOLE: Applies for Bankruptcy Proceedings
KORPERWERKSTATT GMBH: Under Bankruptcy Administration

MG TECHNOLOGIES: Denies Reported Sale of Loss-making Subsidiary
MG TECHNOLOGIES: Lurgi Opens Chemical Plant in China
PRIMACOM AG: Q1 Net Loss Swells to EUR29 Million
PROFIMAZ AUDIOVISUELLES: Falls into Bankruptcy


I T A L Y

ALITALIA SPA: Board Defers Approval of Annual Report
AVIO HOLDING: Suffers Downgrade as Financial Position Weakens
CIRIO FINANZIARIA: Del Monte Urges San Miguel to Revive Offer
PARMALAT U.S.A.: Court Okays Brooklyn Landlords Settlement Pact


P O L A N D

NETIA SA: Q1 Net Profit Surges to PLN23.3 Million


R U S S I A

AGRO-URAZOVSKOYE: Bankruptcy Proceedings Begin
BELOMORSKOYE: Succumbs to Bankruptcy
BSK: Proofs of Claim Deadline Nears
EUROPE-SERVICE: Under Bankruptcy Supervision
KPD-2: Deadline for Proofs of Claim June 16

OAO GAZPROM: Issues EUR1 Billion Eurobonds
OAO GAZPROM: Fitch Mulls Upgrade of 'BB' Ratings
PROD-MASH: Undergoes Bankruptcy Supervision Procedure
SLANTSEVSKAYA MOVABLE: Declared Insolvent
SV: Textile Factory Succumbs Bankruptcy

TOMAROVSKAYA MOVABLE: Bankruptcy Hearing Resumes June
URMANTAVSKIY WOOD-PROM-KHOZ: Declared Insolvent
YUKOS OIL: Subsidiary Loses RUB8 Billion Back-tax Case
YUKOS OIL: TNK-BP Eyes Mazeikiu Nafta Stake


S W I T Z E R L A N D

KABA HOLDING: Shakes up Management
SWISS INTERNATIONAL: CLA Negotiations Fail
SWISS INTERNATIONAL: Shareholders Extend Term of Five Directors


U K R A I N E

FINIST: Under Bankruptcy Supervision
HODORIV' MEAT: Temporary Insolvency Manager Takes over Helm
KERCH: Urges Creditors to File Claims
LUTSK' AUTO 0201: Declared Insolvent
NORD: Court Appoints Temporary Insolvency Manager

PERSPEKTIVA: Bankruptcy Supervision Starts
SAFRONIYEVE UGIDDYA: Court Appoints Insolvency Manager
UKRKULTSERVICE: P. Rodin Appointed Liquidator
YAGOTIN' FOOD: Succumbs to Bankruptcy
YUST: Dnipropetrovsk Court Opens Bankruptcy Proceedings


U N I T E D   K I N G D O M

AIR BLAST: Decides to Call in Administrators
BARLOW CLOWES: Final Creditors Meeting Set June
BLUE MOON: Administrators from S. F. Plant Move in
BONNER & KNAPP: Hires Administrators from Rothman Pantall & Co.
BRITEL DEVELOPMENTS: Hires Deloitte & Touche to Liquidate Assets

CARRINGTON STREET: Members Decide to Wind up Business
CHARLES HENRY: Files for Administration
COSMACK MANAGEMENT: Winding-up Report Out June
COSTAIN GROUP: Court Approves Share Capital Reduction
COSTAIN GROUP: Fitch Affirms 'B' Ratings, Stable Outlook

DD TRADING: Hires Sharma & Co. as Administrator
DISTRIBUTED TECHNOLOGY: Names Vantis Business Administrator
EXECUTIVE CATERING: Hires Administrator from Begbies Traynor
GARDEN COTTAGE: Food Wholesaler in Administrative Receivership
GLASSMAN (MIDLANDS): Appoints Administrators from KPMG

GRUPPO LAVORI: Sets Creditors Meeting Friday
HERITAGE PRINT: Names Milner Boardman & Partners Administrator
I-BUS (UK): Middleton Administrator Takes over Operations
KAKTUS LIMITED: Hires Administrator from Maidment Judd
LALAZAR LIMITED: Sets Creditors Meeting June 17

LATSEL LIMITED: Hires KPMG to Wind up Business
MG ROVER: PwC Targets 'Phoenix Four' Directors
MULTI TIE: Liquidator to Give Report Mid-June
OAKBURN IMPORT/EXPORT: Calls in P&A Partnership Administrator
REDFERN INVESTMENTS: Liquidator from Duncan Sheard Moves in

RODOLPH & HELLMANN: Meeting of Creditors Set Next Month
ROONEY CONSTRUCTION: Construction Firm Calls in Administrators
ROYAL MAIL: Technically Insolvent, Says Finance Director
SPA LEISURE: General Meeting Set Next Month
STRATAGAS PLC: Members Pass Winding-up Resolutions

TMA GLOBAL: Sets Creditors Meeting Thursday
TRANQUIL STORM: In Administrative Receivership
WALKER PROCESS: Administrator from Tenon Recovery Moves in
WHIRLYBIRDS LIMITED: Members Pass Winding-up Resolutions
YELL FINANCE: Moody's Affirms Ba2 Rating, Outlook Stable
ZEN WALLCOVERINGS: Names Milner Boardman Administrator

* Large Companies with Insolvent Balance Sheets


                            *********


===========================
C Z E C H   R E P U B L I C
===========================


UNION POJISTOVNA: Financial Ministry Cancels License
----------------------------------------------------
The finance ministry has revoked the license of bankrupt insurer
Union Pojistovna, Czech News Agency says.

A ministry spokesman, Marek Zeman, said the insurer has not been
operating since August 2004 when the Prague Municipal Court
declared the company bankrupt.

CONTACT:  UNION POJISTOVNA A.S.
          HavlIckova 15
          110 00 Praha 1
          Phone: 296 332 872, 296 332 870
          Fax: 296 332 871
          E-mail: sekretariat_praha@unionpoj.cz
          Web site: http://www.unionpoj.cz


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


COMBE GMBH: Court Sets Claims Verification September
----------------------------------------------------
The district court of Charlottenburg opened bankruptcy
proceedings against Combe GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until July 25, 2005 to register their
claims with court-appointed provisional administrator Dr.
Wolfgang Schroder.

Creditors and other interested parties are encouraged to attend
the meeting on June 30, 2005, 9:25 a.m. at the district court of
Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock
Saal 218, at which time the administrator will present his first
report of the insolvency proceedings.  The court will verify the
claims set out in the administrator's report September 1, 2005,
9:05 a.m. at the same venue.

CONTACT:  COMBE GMBH
          Lankwitzer Str. 39,12107 Berlin

          Dr. Wolfgang Schroder, Administrator
          Genthiner Str. 48, 10785 Berlin


DIRK RAKOW: Interim Administrator Takes over Operations
-------------------------------------------------------
The district court of Heidelberg opened bankruptcy proceedings
against Dirk Rakow e.K. on May 1.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until June 15, 2005 to register their claims with
court-appointed provisional administrator Dr. Dieter Thuennesen.

Creditors and other interested parties are encouraged to attend
the meeting on July 8, 2005, 9:30 a.m. at the district court of
Amtsgerichts Heidelberg, 69115 Heidelberg, Kurfuerstenanlage 21,
EG, Saal 12 at which time the administrator will present his
first report of the insolvency proceedings.  The court will also
verify the claims set out in the administrator's report during
this meeting, while creditors may constitute a creditors
committee and or opt to appoint a new insolvency manager.

CONTACT:  DIRK RAKOW E.K.
          Hotel & Restaurant Schnookeloch
          Haspelgasse 8, 69117 Heidelberg

          Dr. Dieter Thuennesen, Administrator
          Im Breitspiel 21, 69126 Heidelberg
          Phone: 06221/1850126
          Fax: 06221/1850103


EDA BACKWAREN: Creditors Meeting Set Next Month
-----------------------------------------------
The district court of Kleve opened bankruptcy proceedings
against EDA Backwaren und Lebensmittel GmbH on May 3.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 9, 2005 to
register their claims with court-appointed provisional
administrator Horst Piepenburg.

Creditors and other interested parties are encouraged to attend
the meeting on June 30, 2005, 9:30 a.m. at the district court of
Kleve, Hauptstelle, Schlossberg 1, 47533 Kleve, Erdgeschoss, C
58 at which time the administrator will present his first report
of the insolvency proceedings.  The court will also verify the
claims set out in the administrator's report during this
meeting, while creditors may constitute a creditors committee
and or opt to appoint a new insolvency manager.

CONTACT:  EDA BACKWAREN UND LEBENSMITTEL GMBH
          Max-Planck-Str. 15, 47647 Kerken-Nieukerk
          Contact:
          Ali Cebeci, Manager
          Berliner Str. 43 a, 48691 Vreden, Coskun Guel Ottostr.
          44, 47198 Duisburg

          Cengiz Cebeci, Administrator
          Frankenstr. 248, 45134 Essen
          Horst Piepenburg, Heinrich-Heine-Allee 20, 40213
          Dusseldorf
          Phone: 0211/492240
          Fax: 0211/494087


ELEKTRO RAHM: Claims Deadline Nears
-----------------------------------
The district court of Kaiserslautern opened bankruptcy
proceedings against Elektro Rahm KG on April 19.  Consequently,
all pending proceedings against the company have been
automatically stayed.  Creditors have until June 2, 2005 to
register their claims with court-appointed provisional
administrator Paul Wieschemann.

Creditors and other interested parties are encouraged to attend
the meeting on July 4, 2005, 2:35 p.m. at Saal 15,
Justizzentrum, Bahnhofstrasse 24, 67655 Kaiserslautern at which
time the administrator will present his first report of the
insolvency proceedings.  The court will also verify the claims
set out in the administrator's report during this meeting, while
creditors may constitute a creditors committee and or opt to
appoint a new insolvency manager.

CONTACT:  ELEKTRO RAHM KG
          Zwergstr. 10, 67722 Winnweiler
          Contact:
          Ulli Rahm, Manager

          Paul Wieschemann, Administrator
          Flickerstal 2, 67657 Kaiserslautern
          Phone: 0631/341950
          Fax: 0631/470269


EMMERMANN GMBH: Bankruptcy Proceedings Begin
--------------------------------------------
The district court of Hildesheim opened bankruptcy proceedings
against Emmermann GmbH & Co. KG on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 29, 2005 to register their
claims with court-appointed provisional administrator Bernd
Wetjen.

Creditors and other interested parties are encouraged to attend
the meeting on July 18, 2005, 9:00 a.m. at Saal 124,
Hauptgebaude, Kaiserstrasse 60, 31134 Hildesheim at which time
the administrator will present his first report of the
insolvency proceedings.  The court will also verify the claims
set out in the administrator's report during this meeting, while
creditors may constitute a creditors committee and or opt to
appoint a new insolvency manager.

CONTACT:  EMMERMANN GMBH & CO. KG.
          Zur Dessel 3, 31028 Gronau

          EMMERMANN GESCHAFTSFUEHRUNGS-GMBH
          Zur Dessel 3, 31028 Gronau
          Contact:
          Carsten Emmermann, Manager
          Zur Dessel 3, 31028 Gronau

          Bernd Wetjen, Administrator
          Alter Markt (Kaiserhaus) 1, 31134 Hildesheim
          Phone: 91710
          Fax: 917171


ENCON GMBH: Sets Creditors Meeting July
---------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against encon GmbH Bautrager und Projektentwicklung on April 25.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 20, 2005
to register their claims with court-appointed provisional
administrator Christoph Mathern.

Creditors and other interested parties are encouraged to attend
the meeting on July 20, 2005, 10:30 a.m. at the district court
of Chemnitz, Saal 24, im Gerichtsgebaude Fuerstenstrasse 21, at
which time the administrator will present his first report of
the insolvency proceedings.  The court will also verify the
claims set out in the administrator's report during this
meeting, while creditors may constitute a creditors committee
and or opt to appoint a new insolvency manager.

CONTACT:  ENCON GMBH BAUTRAGER UND PROJEKTENTWICKLUNG
          Chemnitzer Strasse 69, 09212 Limbach-Oberfrohna
          Contact:
          Uwe Stephan, Manager

          Christoph Mathern, Administrator
          Kanzlerstr. 32, 09112 Chemnitz
          Web site: http://www.poessl.com


FISCHER GMBH: Hechingen Court Appoints Interim Administrator
------------------------------------------------------------
The district court of Hechingen opened bankruptcy proceedings
against Fischer GmbH on May 1.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until June 24, 2005 to register their claims with
court-appointed provisional administrator Dirk Eichelbaum.

Creditors and other interested parties are encouraged to attend
the meeting on July 6, 2005, 3:00 p.m. at the district court of
Hechingen, Heiligkreuzstrasse 9, Zimmer 054 at which time the
administrator will present his first report of the insolvency
proceedings.  The court will also verify the claims set out in
the administrator's report during this meeting, while creditors
may constitute a creditors committee and or opt to appoint a new
insolvency manager.

CONTACT:  FISCHER GMBH
          Fachbetrieb fuer Ausbau und Fassade
          Ellenstr. 29, 72469 Messstetten-Heinstetten
          Contact:
          E. Fischer und D. Fischer, Manager
          72469 Messstetten-Heinstetten

          Dirk Eichelbaum, Administrator
          Mohlstrasse 38, 72074 Tuebingen
          Fax: 07071/400753


HERMANN HAGEDORN: Creditors Claim Due Next Month
------------------------------------------------
The district court of Darmstadt opened bankruptcy proceedings
against Hermann Hagedorn GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 7, 2005 to register their
claims with court-appointed provisional administrator Uwe H.
Gesper.

Creditors and other interested parties are encouraged to attend
the meeting on July 14, 2005, 9:45 a.m. at the district court of
Darmstadt, Saal U2, Gebaude E, Landwehrstrasse 48, 64293
Darmstadt, at which time the administrator will present his
first report of the insolvency proceedings.  The court will also
verify the claims set out in the administrator's report during
this meeting, while creditors may constitute a creditors
committee and or opt to appoint a new insolvency manager.

CONTACT:  HERMANN HAGEDORN GMBH
          Marie-Curie-Strasse 3, 68519 Viernheim
          Contact:
          Franz Glanzner, Manager

          Uwe H. Gesper, Administrator
          L 11, 20-22, 68161 Mannheim
          Phone: 0621/129430
          Fax: 0621/152466


IL SOLE: Applies for Bankruptcy Proceedings
-------------------------------------------
The district court of Hamburg opened bankruptcy proceedings
against Il Sole Restaurations GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 24, 2005 to register their
claims with court-appointed provisional administrator Dr. Sven-
Holger Undritz.

Creditors and other interested parties are encouraged to attend
the meeting on July 22, 2005, 11:00 a.m. at the district court
of Hamburg Insolvenzgericht, Weidestrasse 122d, 22083 Hamburg,
Saal 1, 2. Ebene (Zi. 2.18), at which time the administrator
will present his first report of the insolvency proceedings.
The court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors committee and or opt to appoint a new
insolvency manager.

CONTACT:  IL SOLE RESTAURATIONS GMBH
          Nienstedtener Strasse 2c, 22609 Hamburg
          Contact:
          Marlis Monesi, Manager

          Dr. Sven-Holger Undritz, Administrator
          Jungfernstieg 51, 20354 Hamburg
          Phone: 808136-212
          Fax: 808136-119


KORPERWERKSTATT GMBH: Under Bankruptcy Administration
-----------------------------------------------------
The district court of Bochum opened bankruptcy proceedings
against Korperwerkstatt GmbH Fitness-Gymnastik-Tanz on May 3.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 24, 2005
to register their claims with court-appointed provisional
administrator Frank Imberger.

Creditors and other interested parties are encouraged to attend
the meeting on July 28, 2005, 9:20 a.m. at the district court of
Bochum, Hauptstelle, Viktoriastrasse 14, 44787 Bochum,
Erdgeschoss, Saal A29, at which time the administrator will
present his first report of the insolvency proceedings.  The
court will also verify the claims set out in the administrator's
report during this meeting, while creditors may constitute a
creditors committee and or opt to appoint a new insolvency
manager.

CONTACT:  KORPERWERKSTATT GMBH FITNESS-GYMNASTIK-TANZ
          Herner Str. 401, 44807 Bochum
          Contact:
          Bettina Kahl, Manager

          Frank Imberger, Administrator
          Huestrasse 34, 44787 Bochum
          Phone: 964 91-0
          Fax: 964 91-33


MG TECHNOLOGIES: Denies Reported Sale of Loss-making Subsidiary
---------------------------------------------------------------
Mg technologies AG has called pure speculation the report by
German magazine "Wirtschaftswoche", which stated that the
divestment of subsidiary Lurgi cannot be ruled out.

The sale of the plant engineering company Lurgi is not under
consideration, the company said in a statement.

In an interview with "Wirtschaftswoche" in which the situation
at Lurgi was mentioned, the Chairman of mg's Executive Board,
Jurg Oleas, said: "We have now made a good amount of progress
and intend to generate significant profits at Lurgi this year
after a long period of losses.  But Lurgi will still keep us
occupied for a number of years."

Mg technologies AG is an international technology group that
focuses on specialty mechanical engineering -- especially
process engineering and components -- and plant engineering.  Mg
generated sales of EUR4.1 billion in fiscal 2004.  At December
31, 2004, it employed around 17,000 people and is one of the
world's market and technology leaders in 90% of its businesses.

CONTACT:  MG TECHNOLOGIES AG
          Kommunikation
          Bockenheimer Landstrasse 73-77
          D-60325 Frankfurt am Main
          Phone: +49-69-7 11 99-241
          Fax: +49-69-7 11 99-112
          E-mail: info.mg@mg-technologies.com
          Web site: http://www.mg-technologies.com


MG TECHNOLOGIES: Lurgi Opens Chemical Plant in China
----------------------------------------------------
Lurgi, a subsidiary of mg technologies AG, together with
partners Eastman Chemical Company (U.S.A.) and SK Chemicals Co.
(S Korea), has brought one of the world's largest and most
modern terephthalic acid plants on stream in the Chinese city of
Shaoxing.  The plant is designed for an annual production
capacity of 660,000 tons of terephthalic acid and it was
constructed for Zhejiang Hualian Sunshine Petrochemical Co. Ltd.

The plant will put innovative E PTA technology (Eastman Polymer-
Grade Terephthalic Acid), jointly developed by Lurgi and
Eastman, into use for the first time.  This differs from
conventional processes in that its capital investment and
production costs are substantially lower.  Terephthalic acid is
in great demand as a basic chemical used in the manufacture of
PET bottles and containers, all types of polyester fibers and
other industrial plastics.

"The successful implementation of this new technology on an
industrial scale will bring good prospects for Lurgi in the
Chinese market," states Klaus Moll, who is responsible for the
segment Plant Engineering in mg's Executive Board.  "We are in a
position to significantly increase the availability of high-
quality E PTA as an alternative to conventional PTA in the
booming Chinese market."

Mg technologies AG is an international technology group that
focuses on specialty mechanical engineering -- especially
process engineering and equipment -- and plant engineering.  The
company generated sales of roughly EUR4.1 billion -- excluding
Dynamit Nobel and other discontinued operations -- in 2004.  At
December 31, 2004, it employed around 17,000 people and is one
of the world's market and technology leaders in 90% of its
businesses.

CONTACT:  MG TECHNOLOGIES AG
          Kommunikation
          Bockenheimer Landstrasse 73-77
          D-60325 Frankfurt am Main
          Phone: +49-69-7 11 99-241
          Fax: +49-69-7 11 99-112
          E-mail: info.mg@mg-technologies.com
          Web site: http://www.mg-technologies.com


PRIMACOM AG: Q1 Net Loss Swells to EUR29 Million
------------------------------------------------
For first quarter ended March 31, 2005, revenues reached EUR54.3
million, a 6.2% increase over the first quarter ended March 31,
2004.

Operating profit decreased, due to extraordinary expenses of
financial restructuring to EUR3.9 million in the first quarter
of 2005 compared with EUR5.5 million in the first quarter of
2004.  EBITDA for the first quarter of 2005 fell to EUR25.2
million, a 4.0% decrease compared with first quarter 2004
EBITDA.

In the first quarter of 2005, EBITDA and operating profit was
negatively impacted by the high-level of EUR3.0 million
professional fees, related to the ongoing efforts to achieve a
financial restructuring of the Company.  Of the EUR3.0 million,
EUR2.8 million relates to the indemnification by PrimaCom, under
the Senior and Second Secured Facility agreements, of costs
incurred by the respective bank groups for their legal and
accounting advice, together with the corresponding costs of
PrimaCom's own lawyers.

Net loss for the first quarter of 2005 was EUR29.0 million
compared with a net loss of EUR25.9 million for the first
quarter of 2004.  Revenue generating units increased by 33,804
or 2.4% from 1,405,086 at March 31, 2004 to 1,438,890 at March
31, 2005, with a decline in analog customers of 2.0% being
offset by substantial growth in both Internet and telephony
customers.

PrimaCom continues to focus on revenue improvements, cost
reduction management and profitability improvements and actively
pursues all opportunities to reorganize its debt and equity
structure.

CONTACT:  PRIMACOM AG
          An der Ochsenwiese 3
          D-55124 Mainz
          Investor Relations
          Phone: +49(0)6131 944 522
          Fax: +49(0)6131 944 508
          E-mail: investor@primacom.de
          Web site: http://www.primacom.de


PROFIMAZ AUDIOVISUELLES: Falls into Bankruptcy
----------------------------------------------
The district court of Bochum opened bankruptcy proceedings
against ProfiMAZ Audiovisuelles Mediencenter Bochum GmbH on May
4.  Consequently, all pending proceedings against the company
have been automatically stayed.  Creditors have until June 20,
2005 to register their claims with court-appointed provisional
administrator Frank Imberger.

Creditors and other interested parties are encouraged to attend
the meeting on July 28, 2005, 8:50 a.m. at the district court of
Bochum, Hauptstelle, Viktoriastrasse 14, 44787 Bochum,
Erdgeschoss, Saal A29, at which time the administrator will
present his first report of the insolvency proceedings.  The
court will also verify the claims set out in the administrator's
report during this meeting, while creditors may constitute a
creditors committee and or opt to appoint a new insolvency
manager.

CONTACT:  PROFIMAZ AUDIOVISUELLES MEDIENCENTER BOCHUM GMBH
          Josef-Baumann-Strasse 18, 44805 Bochum
          Contact:
          Juergen Wolf, Manager

          Frank Imberger, Administrator
          Huestrasse 34, 44787 Bochum
          Phone: 964 91-0
          Fax: 964 91-33


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


ALITALIA SPA: Board Defers Approval of Annual Report
----------------------------------------------------
The board of troubled national carrier, Alitalia S.p.A.,
postponed the approval of the 2004 results to May 26, 2005, Il
Sole 24 Ore says.

The original schedule was May 20, 2005, but the board decided to
postpone the meeting to wait for the European Commission's
approval of its restructuring plan.  According to the report,
the company cannot indicate that Alitalia is a going concern if
the plan fails to pass E.U. scrutiny.  The regulator is
currently looking for traces of illegal state aid in the rehab
plan and is expected to make a decision later this month.

Meanwhile, the board recently appointed Riccardo Raimondi chief
executive of Alitalia Airport, the carrier's airport handling
unit.  Mr. Raimondi is the former director of operations at
Aeroporti di Roma (ADR), operator of Rome's airports.

CONTACT:  ALITALIA S.p.A.
          Viale A. Marchetti 111
          00148 Rome, Italy
          Phone: +39 06 6562 2151
          Fax: +39 06 6562 4733
          Web site: http://www.alitalia.it


AVIO HOLDING: Suffers Downgrade as Financial Position Weakens
-------------------------------------------------------------
Moody's Investors Service downgraded the Senior Implied Rating
of Avio Holdings S.p.A. to B1 from Ba3 and the rating of EUR200
million notes at Avio's subsidiary, ASPropulsion Capital B.V. to
B3 from B2.  The rating outlook is stable.  This ends the review
for possible downgrade initiated in February 2005.

Moody's concluded that the weakening in Avio's operating results
and financial position, compared to initial expectations,
justifies the downgrade from existing rating levels.  Moody's
further concluded that a series of financial transactions at
Avio's parent companies do not add near term pressure to the
borrowing group, although they do make it less likely that
bondholders will benefit from any future equity market
transactions.  The stable outlook reflects Avio's ability to
generate free cash flow and the company's overall good market
position within its industry.

Ratings downgraded are:

(a) Senior implied rating to B1 from Ba3

(b) ASPropulsion Capital B.V.: EUR200 million senior unsecured
    notes maturing in 2013 downgraded to B3 from B2,

(c) Avio Holding S.p.A.: Unsecured issuer rating to B3 from B2

The outlook for all ratings is stable.

Avio Holding S.p.A. and its indirect subsidiary, ASPropulsion
Capital B.V., were placed under review in February 2005
following the announcement of a proposed debt issuance in the
form of PIK notes and repurchase of third-party debt at a
holding company level, and a shortfall in expectations
concerning operating results.

Weakening of cash flow and operating results due to lower than
expected operating performance since the initial transaction in
2003 pressure Avios' ratings.  A downgrade was envisaged in the
initial press release if cash flows turn negative which has not
materialized so far.  However, given the weakening credit
metrics, especially a higher than targeted Debt/EBITDA ratio of
5.6 times despite significant amortization of senior debt, the
expectation that the company's future operating performance will
not strengthen to previously anticipated levels, delays in
Italian government payments which depresses cash flows and adds
uncertainty, and Total Coverage of approximately 1 times, a one
notch downgrade is considered appropriate.  The outlook for the
ratings is stable, since both the positive industry outlook for
aero engines and spare parts, and Avio's good market position
within its industry, as well as positive recent trading
indications for Q1 2005, add some cushion to claims of
creditors.

The ratings are supported by Avio's continuing ability to
generate operating cash flows even at depressed growth and
margin levels.  Avio also maintains adequate liquidity given
available cash balances of EUR30 million and a EUR150 million
unutilized revolver at FYE 2004.  In addition, Avio's management
expects payment delays in Italian government receivables to be
resolved by or in Q3 2005.  Moody's also recognizes the
political and strategic importance of Avio to the Italian
government as a stabilizing factor for the credit quality of
noteholders.

Avio's weakened operating and financial metrics for the
financial years 2003/2004 are based on Avio's lower than
expected performance in the Military, Space and Civil MRO
divisions, even when considering the fall in the U.S. Dollar
against the Euro.  Moody's believes that performance metrics
have some room for improvement, but will not recover to
previously anticipated levels.  Continuing risk factors for
Avio's business include low future prospects of Civil MRO given
the delays of internal restructuring efforts for this division
in spite of market recovery signs.  Avio's Civil unit, which has
performed favorably relative to other segments, remains exposed
to movements in the USD/EUR exchange rate, which constrains its
potential to benefit from an upward swing in the product life
cycle.

Moody's expects that Avio's future operating cash flow will be
able to support the company's ongoing business activities
including average capex of EUR40 million and peaking R&D
expenses of EUR63 million in 2005 (representing about 5% of 2005
targeted revenues).  Avio used EUR40 million of cash on hand in
addition to operating cash flow to finance 2004 cash outflows
(including debt pre-payments of approximately EUR110 million).
Cash sources included a series of exceptional payment
settlements with related to the acquisition.  Liquidity pressure
in 2005 and 2006 is benign given that the next mandatory senior
debt repayment is not due until 2007 (EUR53.2 million).

The ratings will be subject to downward pressure if total
operating performance and profitability show a decline on a
currency adjusted like-for-like basis.  Given the high leverage
of the company Moody's also emphasizes that Avio needs to
generate strong cash flows to support ongoing operating and debt
servicing needs.  In addition, ratings could come under pressure
if Avio does not receive delayed payments from the Italian
government by October 2005, the timeframe in which the company
has stated it expects resolution.  A failure to receive these
payments could have negative impact on liquidity at a time when
Avio will need to make long-term capital and working capital
investments.

The ratings could improve if Avio shows strong sales and profit
growth in an upturning market of aero engines and spare parts.
Besides, given some remaining uncertainty concerning timing of
recovery in the space division for Ariane 5 contracts, credit
quality would benefit from a higher than expected rebound in
sales and earnings.  The ratings could also be positively
impacted by the return of the Civil MRO division to a positive
contribution on a net cash basis.  Finally, if the company
continues to reduce senior debt ahead of its current envisaged
repayment schedule resulting in Total Debt/EBITDA improving to
below 3.5x, existing ratings should be assessed more positively.
(Moody's debt ratio includes the vendor loan but not the newly
issued PIK debt in debt numbers, as the PIK was issued at a
parent company and proceeds were not downstreamed into the
borrowing group.)

Moody's recognizes that the issue of a EUR375 million floating
rate PIK Note due in 2015 by Aero Invest 1 S.A., the indirect
parent of Avio Holding S.P.A. has a limited impact on the credit
quality of existing debt within the restricted group.  The PIK
Note represents the only debt by that issuer and is effectively
subordinated to debt of the issuer's subsidiaries, including
debt under the Credit Facilities and Senior Notes.  Aero Invest
1 SA is not part of the restricted group as defined in the
intercreditor agreement but is subject to payment limitations
due to restrictions on Avio Holding S.p.A.'s ability to make any
prepayments or cash interest distributions as defined by the
subordination agreement.  Moody's emphasizes however that the
PIK Note imposes additional indirect pressure on Avio's capital
structure by increasing parent company obligations with the PIK
note likely to be repaid first in the event of a future IPO.  In
case of non-redemption of the PIK Note at an IPO, incentives
will remain to service PIK Note interest payments prior to other
debt instruments further down in the capital structure of Avio
Holding S.p.A.

Registered in Italy, Avio is a leading designer and manufacturer
of subsystems and components for military and civil aircraft
engines and a producer of propulsion systems for space launch
vehicles and tactical missile applications.  Revenues were
EUR1.2 billion in 2004.

CONTACT:  MOODY'S INVESTORS SERVICE LTD.
          London
          Amanda Neff, VP - Senior Credit Officer
          Corporate Finance Group
          For Journalists
          Phone: 44 20 7772 5456

          MOODY'S INVESTORS SERVICE
          New York
          Marie Menendez, VP - Senior Credit Officer
          Corporate Finance Group
          For Journalists: 212-553-0376


CIRIO FINANZIARIA: Del Monte Urges San Miguel to Revive Offer
-------------------------------------------------------------
Del Monte Pacific Ltd. has reportedly asked San Miguel
Corporation to resubmit its offer for Cirio Finanziaria S.p.A.'s
40% share in the company.

"Del Monte offered us again.  It shows that we still have one of
the best offers (for Del Monte)," the Philippine company's
president and chief operating officer Ramon Ang was quoted by
BizWorld as saying.  He did not say whether Southeast Asia's
largest food and beverage conglomerate would lodge a bid or not.

Cirio canceled the sale in April after Filipino-Chinese
businessman Lucio Tan and San Miguel dropped their bids for the
stake.  The buyers reportedly balked at the asking price.  In
January, Mr. Tan's acquisition vehicle, Basic Holdings, offered
US$180 million to be paid in tranches.  Cirio had wanted US$150
million to US$250 million for the shares.

The pullout left the family of former Philippine Agriculture
Secretary Luis Lorenzo, which already owns 21% of Del Monte, as
the only major contender for the shares.  It has the option to
match the best bid for these shares.

Also interested in the stake are Japan's Sumitomo, Heinz, and
Fresh Del Monte of the U.S.  Del Monte Pacific is the world's
largest pineapple producer.  Its integrated pineapple growing
and processing facility has an estimated market capitalization
of about US$425 million.  It is 10% owned by the Singapore
government; the remaining 30% share by the public.

Cirio, the canned tomatoes and fruit producer, has been selling
assets to pay creditor.  It was forced into liquidation after
defaulting on EUR1 billion bonds and investors rejected a
restructuring plan.

CONTACT:  Administrative Address
          Strada Provinciale per Podenzano,
          10 - 29010 San Polo di Podenzano
          Phone: 0523 536123
          Fax: 0523 379257
          Web site: http://www.cirio.it


PARMALAT U.S.A.: Court Okays Brooklyn Landlords Settlement Pact
---------------------------------------------------------------
Marcia L. Goldstein, Esq., at Weil, Gotshal & Manges LLP, in New
York, relates that in April 2004, Parmalat U.S.A. Corporation
and its debtor-affiliates agreed on a revised business strategy
that called for Farmland Dairies LLC to concentrate on its
fresh-milk and nationwide extended-shelf-life milk business and
to divest its non-core operations.

To that end, Farmland and its advisors have marketed and
successfully sold a number of surplus assets and non-operating
properties pursuant to previous Court orders.  That strategy led
to Farmland's determination to consolidate its fluid milk
business previously conducted at its facilities in Brooklyn, New
York, with its operations based out of its headquarters in
Wallington, New Jersey.  Subsequently, on January 14, 2005,
Farmland officially shut down its Brooklyn Operations.  Among
the additional non-core operations currently slated for
divestiture are Farmland's remaining Brooklyn assets.

Over a span of many years, in connection with its Brooklyn
Operations, Farmland entered into 11 real property leases with
various landlords:

   -- Stanley Avenue LLC,
   -- Stanita Service Corp.,
   -- Ronwal Corp.,
   -- The Red Banana, LLC, and
   -- Walter's Realty, LLC.

In addition, Farmland owns certain parcels of real property in
Brooklyn, New York, which are contiguous to the Leased
Properties and were used as part of the Brooklyn Operations.
Farmland is also the owner of a large quantity of equipment
utilized to operate its Brooklyn business.

Given that the Brooklyn Operations have been successfully
consolidated with the Wallington Operations, Farmland no longer
has any use for the Leased Properties, Owned Properties, or
Equipment located there, Ms. Goldstein notes.  Pursuant to its
Plan, Farmland has determined to reject the Brooklyn Leases,
with the rejection to be deemed effective as of March 31, 2005,
except those pertaining to certain "Occupied Properties," whose
governing leases Farmland will reject upon giving notice to the
affected lessor -- currently anticipated to occur at the end of
April, or in early May, 2005, following an auction of the
Equipment in Brooklyn.

Accordingly, as of March 31, 2005, Farmland entered into a
settlement agreement with the Brooklyn Landlords to resolve all
outstanding claims related to the rejection of the Leases, and
to sell the Owned Properties to the Brooklyn Landlords'
designee, Anita & Stanley Eisenberg Dynasty Trust, in a private
sale pursuant to a Real Estate Contract, dated as of April 6,
2005.

In addition, the Settlement Agreement affords Farmland the
opportunity to auction the Equipment and, therefore, realize
additional cash resources with which to fund its reorganization.

Farmland sought and obtained the U.S. Bankruptcy Court for the
Southern District of New York's authority to enter into the
Settlement Agreement with the Brooklyn Landlords.

The salient terms of the Settlement Agreement are:

   (a) Farmland will vacate the Leased Properties, provided,
       however, that Farmland will temporarily remain in
       possession of the Occupied Properties pending the
       occurrence of an auction of the Equipment;

   (b) Following an auction of the Equipment at the Occupied
       Properties, any Equipment not sold in the Auction will be
       abandoned by Farmland.  Farmland will bear no liability
       or costs whatsoever arising from or related to the
       subsequent removal of the Abandoned Equipment from the
       Occupied Properties;

   (c) Farmland must provide 14-day written notice to the
       Landlords of the date by which it will vacate the
       Occupied Properties.  The Notice will be effective on the
       later of (i) 14 days after service, and (ii) the date on
       which Farmland actually vacates the Occupied Properties.
       Prior to the Notice Effective Date, Farmland will:

       * pay all rent and real estate tax obligations allocated
         to the Occupied Properties;

       * pay any utility charges related to the period of
         Farmland's possession of the Occupied Properties; and

       * continue to maintain any currently existing insurance
         policies pertaining to the Occupied Properties.

       However, that any monthly amounts paid by Farmland will
       be pro rated based on the Notice Effective Date;

   (d) In connection with the rejection of all Leased Properties
       and pursuant to Section 365(g) of the Bankruptcy Code,
       the Landlords will have an allowed general unsecured
       claim against Farmland for $1,741,071.45, which includes
       any rejection damages related to the Leased Properties,
       and any general damages or environmental claims related
       to the Leased Properties;

   (e) The Purchaser agrees to purchase the Owned Properties for
       $3,000,000, on the terms set forth in a separate Purchase
       Agreement;

   (f) At the closing of the Sale of Owned Properties, Farmland
       will buy-back the Rejection Claim for $975,000 in cash,
       which amount will be offset from the Sale Price.  The
       Landlords will pay Farmland $2,025,000 in cash in full
       satisfaction of the Sale Price and in full and final
       settlement of the Rejection Claim.  After consummation of
       the Buy-Back, Farmland will be entitled to all
       distributions made on account of the Rejection Claim
       pursuant to the Plan;

   (g) The Landlords' cost, if any, of removing the Equipment
       will be treated as a general unsecured claim against
       Farmland, not to exceed $100,000.  The Landlords will
       have 45 days from the Notice Effective Date to file the
       Removal Claim, which must be supported by appropriately
       detailed documentation establishing that the Landlords
       actually expended the claimed amounts in connection with
       the removal of the Equipment;

   (h) The Landlords agree to indemnify and hold Farmland and
       its affiliates harmless from any and all environmental
       claims, obligations, and damages related to the Leased
       Properties or Owned Properties; and

   (i) The parties agree to full releases of claims through and
       including the execution of the Settlement Agreement,
       except for claims and obligations otherwise preserved
       and, with respect to the Landlords, certain proofs of
       claim -- Claim Nos. 676, 677, and 679 -- filed against
       Farmland.

Headquartered in Wallington, New Jersey, Parmalat U.S.A.
Corporation -- http://www.parmalatusa.com/-- generates more
than EUR7 billion in annual revenue.  The Parmalat Group's 40-
some brand product line includes milk, yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.  The company employs over 36,000
workers in 139 plants located in 31 countries on six continents.
It filed for chapter 11 protection on February 24, 2004 (Bankr.
S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L.
Goldstein, Esq., at Weil Gotshal & Manges LLP represent the
Debtors in their restructuring efforts.  On June 30, 2003, the
Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417
in debt.  (Parmalat Bankruptcy News, Issue Nos. 51 & 53;
Bankruptcy Creditors' Service, Inc., 215/945-7000)

CONTACT:  PARMALAT U.S.A. CORPORATION
          520 Main Ave.
          Wallington, NJ 07057
          Phone: 973 777 2500
          Fax:   973 777 7648
          Toll Free: 888 727 6252
          Web site: http://www.parmalatusa.com


===========
P O L A N D
===========


NETIA SA: Q1 Net Profit Surges to PLN23.3 Million
-------------------------------------------------
Netia S.A. posted unaudited consolidated financial results in
accordance with IFRS E.U.[*] for the first quarter ended March
31, 2005.

Financial Highlights

(a) Revenues for Q1 2005 were PLN216.4 million (EUR53.0
    million), a year-on-year increase of 4%;

(b) EBITDA for Q1 2005 was PLN85.6 million (EUR21.0 million),
    representing an EBITDA margin of 39.5% and a year-on-year
    increase of 13%;

(c) Net profit for Q1 2005 was PLN23.3 million (EUR5.7 million),
    representing a net profit margin of 10.8%;

    Please see section "Other Highlights" for notes regarding
    the impact of adjustments resulting from the adoption of the
    IFRS 2 and the IFRS 3 as of January 1, 2005.

(d) Cash at March 31, 2005 was PLN357.8 million (EUR87.6
    million) as compared to PLN185.0 million at March 31, 2004
    and PLN301.9 million at December 31, 2004; and

(e) Netia Mobile Sp. z o.o., Netia's subsidiary, was announced a
    winner of the UMTS tender, concluded by the Polish regulator
    ("URTiP") on May 9, 2005.  The tender for acquiring
    available GSM 1800 MHz band, in which Netia participated in
    parallel, remained unresolved.  In accordance with the
    tender procedure, Netia Mobile Sp. z o.o. has until May 16,
    2005 to apply to the President of URTiP for the reservation
    of the UMTS frequencies.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
[*] In accordance with the International Financial Reporting
Standards (IFRS), the International Accounting Standards
(IAS) and the related interpretations announced in the form of
regulations of the European Commission.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Operational Highlights

(a) Sales of telecommunications products other than traditional
    direct voice (including indirect voice, data transmission,
    interconnection revenues, wholesale, intelligent network and
    other telecom services) increased their share of total
    revenues from telecom services to 39% or PLN84.2 million
    (EUR20.6 million) in Q1 2005 from 33% in Q1 2004;

(b) Revenues from business customers accounted for 72% of total
    telecom revenues in Q1 2005;

(c) Subscriber lines (net of voluntary churn and disconnections)
    were 424,585 at March 31, 2005 as compared to 424,658 at
    March 31, 2004 and 424,802 at December 31, 2004.  Business
    customer lines increased 5% year-on-year to 145,658 and
    these now account for 34.3% of total subscriber lines;

(d) Average monthly revenue per line (with regard to direct
    voice services) decreased by 11% to PLN101 (EUR25) in Q1
    2005 from PLN113 in Q1 2004 and by 4% from PLN105 in Q4
    2004, reflecting the continued overall tariff reduction
    trends in the sector; and

(e) Headcount of the Netia group was 1,204 at March 31, 2005,
    compared to 1,393 at March 31, 2004 and 1,234 at December
    31, 2004.

Wojciech Madalski, Netia's President and Chief Executive
Officer, commented: "Netia's growth from new products continued
its momentum and cash generation rose strongly in Q1 2005.
Products other than traditional direct voice telephony grew 26%,
with data services leading the way with increases of 39% year-
on-year and 13% compared to Q4 2004, as Netia continued to gain
ground with business customers.

"EBITDA growth of 13% was driven by continued tight control of
costs throughout the organization.  Netia's combination of top-
line growth and efficiency focus is contributing to rising cash
generation.  Our cash position nearly doubled year-on-year, from
PLN185 million in Q1 2004 to PLN358 million at March 31, 2005,
as we consistently drive performance with the objectives of
growing Netia's after capex free cash flow.

"This in turn is enabling Netia to return funds to shareholders
while maintaining a high degree of strategic flexibility and
financial strength to seize new opportunities.  I'm proud to
report that, for the first time ever, the Company has paid a
dividend, and we commenced our share and warrant repurchase
program -- a strong vote of confidence in Netia's future."

Kent Holding, Netia's Chief Financial Officer, added: "Revenue
and EBITDA growth are in line with our expectations.  Strong
cash generation resulted in a free cash flow spread (EBITDA
margin less capex as a percentage of revenues) of 16 percentage
points.  Following a PLN39 million first-ever dividend payout to
shareholders in April 2005, Netia's cash position remains
strong.

"The Q1 2005 results reflect accounting adjustments related to
the implementation of new IFRS standards, which are explained in
detail in this announcement.  In accordance with IFRS best
practices in the telecom sector, additional presentation changes
were introduced with regard to the netting of certain revenues
and operating costs, with corresponding adjustments to all
comparatives.  Reported revenues rose 4% to PLN216 million in Q1
2005 from PLN207 million in Q1 2004, while revenues excluding
the impact of these presentation changes rose 6% to PLN225
million from PLN212 million in Q1 2004.  The netting of certain
revenues and costs also has the effect of boosting the EBITDA
margin in Q1 2005 to 39.5% versus 37.9% before this adjustment."

Netia S.A. (WSE: NET) is Poland's largest alternative provider
of fixed-line telecommunications services.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please note that the changes in the presentation format,
consistent with good IFRS practices, were introduced as of
January 1, 2005 with regard to the reclassification of the cost
of traffic termination, including intelligent network revenue
sharing, (previously shown separately under the "Other operating
expenses" category).  These expenses are now transferred to
telecommunications revenue and netted against the related
revenue categories (i.e., "Interconnection revenues" and
"Intelligent network services" lines).  Due to the above, the
comparative figures for periods ended through December 31, 2004
were adjusted accordingly and therefore vary from the figures
reported previously.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

A copy of this report is available free of charge at
http://bankrupt.com/misc/Netia(Q12005).pdf

CONTACT:  NETIA S.A.
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061
          Jolanta Ciesielska (Media)
          Phone: +48-22-330-2407

          Mark Walter
          Taylor Rafferty, London
          Phone: +44-(0)20-7614-2900

          Yuhau Lin
          Taylor Rafferty, New York
          Phone: +1-212-889-4350


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


AGRO-URAZOVSKOYE: Bankruptcy Proceedings Begin
----------------------------------------------
The Arbitration Court of Belgorod region commenced bankruptcy
proceedings against Agro-Urazovskoye after finding the open
joint stock company insolvent.  The case is docketed as #A08-
5635/04-2B.  Mr. S. Klimov has been appointed insolvency
manager.  Creditors have until June 16, 2005 to submit their
proofs of claim to 308033, Russia, Belgorod, Post User Box 671.

CONTACT:  AGRO-URAZOVSKOYE
          Russia, Belgorod region,
          Valujskiy region, Sobolevka

          Mr. S. Klimov
          Insolvency Manager
          308033, Russia, Belgorod region,
          Post User Box 671
          Phone: (0722) 36-16-54


BELOMORSKOYE: Succumbs to Bankruptcy
------------------------------------
The Arbitration Court of Kareliya republic commenced bankruptcy
proceedings against Belomorskoye (TIN 1011005323) after finding
the open joint stock company insolvent.  The case is docketed as
A26-4431/04-18.  Mr. V. Zlokazov has been appointed insolvency
manager.  Creditors have until June 16, 2005 to submit their
proofs of claim to 190020, Russia, Saint-Petersburg, Obvodnogo
Kanala Quay, 193.

CONTACT:  BELOMORSKOYE
          186523, Russia, Kareliya republic,
          Belomorskiy region, Pushnoy

          Mr. V. Zlokazov
          Insolvency Manager
          190020, Russia, Saint-Petersburg,
          Obvodnogo Kanala Quay, 193


BSK: Proofs of Claim Deadline Nears
-----------------------------------
The Arbitration Court of Belgorod region commenced bankruptcy
proceedings against BSK after finding the building contractor
insolvent.  The case is docketed as A08-15634/04-2B.  Mr. S.
Klimov has been appointed insolvency manager.  Creditors have
until June 16, 2005 to submit their proofs of claim to 308033,
Russia, Belgorod, Post User Box 671.

CONTACT:  BSK
          Russia, Belgorod region, Sosnovka

          Mr. S. Klimov
          Insolvency Manager
          308033, Russia, Belgorod region,
          Post User Box 671
          Phone: (0722) 36-16-54


EUROPE-SERVICE: Under Bankruptcy Supervision
--------------------------------------------
The Arbitration Court of Stavropol region has commenced
bankruptcy supervision procedure on limited liability company
Europe-Service.  The case is docketed as A63-18/05-S5.  Mr. D.
Eroshkin has been appointed temporary insolvency manager.
Creditors may submit their proofs of claim to 355003, Russia,
Stavropol, Mira Str. 460/3, Office 7.

CONTACT:  EUROPE-SERVICE
          357115, Russia, Stavropol region,
          Nevinnomysk, Montazhnaya Str.

          Mr. D. Eroshkin
          Temporary Insolvency Manager
          355003, Russia, Stavropol,
          Mira Str. 460/3, Office 7


KPD-2: Deadline for Proofs of Claim June 16
-------------------------------------------
The Arbitration Court of Tatarstan republic commenced bankruptcy
proceedings against KPD-2 after finding the factory insolvent.
The case is docketed as A65-9036/2004-SG4-35.  Mr. A. Yasko has
been appointed insolvency manager.  Creditors have until June
16, 2005 to submit their proofs of claim to 350058420095,
Russia, Tatarstan republic, Kazan, Vosstaniya Str. 119A.

CONTACT:  KPD-2
          420087, Russia, Tatarstan republic,
          Kazan, Daurskaya Str.

          Mr. A. Yasko
          Insolvency Manager
          420095, Russia, Tatarstan republic,
          Kazan, Vosstaniya Str. 119A


OAO GAZPROM: Issues EUR1 Billion Eurobonds
------------------------------------------
OAO Gazprom placed on Friday a new EUR1 billion 10-year
RegS/l44A Eurobond issue.

The issue was priced at par with a coupon of 5.875%, paid
annually.  ABN AMRO and Credit Suisse First Boston acted as
joint lead managers for the deal.  The proceeds of the issue
will be used for general corporate purposes.  The securities
were placed with investors in Europe, the U.S. and Asia.

CONTACT:  OAO GAZPROM
          16 Nametkina
          117997 Moscow, V-420,
          Russia
          Phone: +7-95-719-3001
          Fax: +7-95-719-8333
          Web site: http://www.gazprom.ru


OAO GAZPROM: Fitch Mulls Upgrade of 'BB' Ratings
------------------------------------------------
Fitch Ratings is keeping Russia-based OAO Gazprom's Senior
Unsecured foreign currency and local currency 'BB' ratings on
Rating Watch Positive, despite the cancellation of its merger
with OAO Rosneft.  The Watch is expected to be resolved by end-
June 2005, when the government is anticipated to make a decision
on an increase in its ownership in Gazprom.

In November 2004, Fitch changed the Rating Watch on Gazprom's
Senior Unsecured foreign currency and local currency ratings to
Positive from Evolving, following the agency's Sovereign
upgrade.  The Positive Watch reflected the increased likelihood
of an upgrade for Gazprom, due to its strategic linkage to the
state and synergies to be gained from an increase of state
ownership.  Originally, this increased state ownership was to
come in the form of an exchange of 100% of the shares in state-
owned OAO Rosneft for a 10.7% increase in shares of Gazprom.

Although this merger has now been officially cancelled, Fitch
believes it is probable that the state will increase its
ownership share in Gazprom to 50% plus one share from 39.3% via
a cash purchase of Gazprom's shares, although full details on
the timing and financing of this new transaction are not yet
certain at this stage.  Fitch, however, expects the transaction
to be completed by end-June 2005.  Once the transaction is
completed and the full details confirmed by Fitch, the agency
anticipates upgrading Gazprom's Senior Unsecured foreign
currency and local currency ratings by one notch, pending a
reassessment of Gazprom's credit profile in the wake of rising
gas prices.

At the same time, Fitch remains concerned about the company's
high total debt levels and increasing operating costs over the
course of 2004 and 2005.

Fitch will continue to closely monitor events related to this
transaction and will take appropriate rating action as
necessary.

CONTACT:  FITCH RATINGS
          Jeffrey Woodruff, Moscow
          Phone: +7-095-956-9986

          Isaac Xenitides, London
          Phone: +44 207 417 4300

          Media Relations: Alex Clelland, London
          Phone: +44 20 7862 4084


PROD-MASH: Undergoes Bankruptcy Supervision Procedure
-----------------------------------------------------
The Arbitration Court of Belgorod region has commenced
bankruptcy supervision procedure on close joint stock company
Prod-Mash (TIN 3123029750).  The case is docketed as A08-
2157/05-2 B.  Mr. Y. Shevchenko has been appointed temporary
insolvency manager.  Creditors may submit their proofs of claim
to Russia, Belgorod, Preobrazhenskaya, 132-28.  A hearing will
take place on July 7, 2005.

CONTACT:  PROD-MASH
          309000, Russia, Belgorod region,
          Belgorod, Magistralnaya Str. 55 B

          Mr. Y. Shevchenko
          Temporary Insolvency Manager
          Russia, Belgorod region,
          Preobrazhenskaya, 132-28
          Phone: (0722) 32-16-96, 36-45-68


SLANTSEVSKAYA MOVABLE: Declared Insolvent
-----------------------------------------
The Arbitration Court of Saint-Petersburg and the Leningrad
region commenced bankruptcy proceedings against Slantsevskaya
Movable Mechanized Column-15 (TIN 4713000032) after finding the
close joint stock company insolvent.  The case is docketed as
A56-29601/02.  Mr. V. Sardiev has been appointed insolvency
manager.  Creditors may submit their proofs of claim to 197349,
Russia, Saint-Petersburg, Post User Box 797.

CONTACT:  Mr. V. Sardiev
          Insolvency Manager
          197349, Russia, Saint-Petersburg,
          Post User Box 797


SV: Textile Factory Succumbs Bankruptcy
---------------------------------------
The Arbitration Court of Kursk region has commenced bankruptcy
supervision procedure on close joint stock company SV.  The case
is docketed as A35-91/05 g.  Mr. V. Goldin has been appointed
temporary insolvency manager.

Creditors may submit their proofs of claim to 394000, Russia,
Voronezh, Main Post Office, Post User Box 227.  A hearing will
take place on July 13, 2005, 3:00 p.m. at the Arbitration Court
of Kursk region located at Russia, Kursk, K. Marksa Str. 25.

CONTACT:  SV
          Russia, Kursk region,
          Glushkovo, Gorkogo Str. 19.

          Mr. V. Goldin
          Temporary Insolvency Manager
          394000, Russia, Voronezh,
          Main Post Office, Post User Box 227


TOMAROVSKAYA MOVABLE: Bankruptcy Hearing Resumes June
-----------------------------------------------------
The Arbitration Court of Belgorod region has commenced
bankruptcy supervision procedure on close joint stock company
Tomarovskaya Movable Mechanized Column.  The case is docketed as
A08-909/05-24-2 B.  Mr. O. Savkin has been appointed temporary
insolvency manager.  A hearing will take place on June 30, 2005.

CONTACT:  TOMAROVSKAYA MOVABLE MECHANIZED COLUMN
          Russia, Belgorod region, Yakovlenskiy region,
          Tomarovka, Promyshlennaya Str. 10

          Mr. O. Savkin
          Temporary Insolvency Manager
          Russia, Belgorod region,
          Pushkina Str. 49a, Office 6


URMANTAVSKIY WOOD-PROM-KHOZ: Declared Insolvent
-----------------------------------------------
The Arbitration Court of Bashkortostan republic commenced
bankruptcy proceedings against Urmantavskiy Wood-Prom-Khoz (TIN
0240000580) after finding the municipal unitary enterprise
insolvent.  The case is docketed as A07-9615/02-A-RSA/KhRM.  Mr.
F. Khamzin has been appointed insolvency manager.  Creditors
have until June 16, 2005 to submit their proofs of claim to
450077, Russia, Bashkortostan republic, Ufa, Sotsialisticheskaya
Str. 45, Office 19-22.

CONTACT:  Mr. F. Khamzin
          Insolvency Manager
          450077, Russia, Bashkortostan republic, Ufa,
          Sotsialisticheskaya Str. 45, Office 19-22


YUKOS OIL: Subsidiary Loses RUB8 Billion Back-tax Case
------------------------------------------------------
Moscow's Arbitration Court on Wednesday said the Federal Tax
Services has the right to recover against Yukos Oil subsidiary
Samaraneftegaz RUB8 billion in taxes and fines for 2001.

Shares in Yukos' subsidiaries, including Samaraneftegaz, were
seized in April in relation to a suit filed against the group by
Yuganskneftegaz, a former unit.  Yuganskneftegaz is blaming
Yukos for an alleged RUB163 billion loss.

On Wednesday, the court said Samaraneftegaz evaded taxes by
setting up dependent businesses in territories with beneficial
taxation, making its tax exemptions illegal.

Samaraneftegaz countered the evidence in the case were obtained
illegally.  Press secretary Roman Naumov said his camp will
dispute the decision in the Supreme Arbitration Court.  A
company source told Kommersant the unit will likely be separated
from Yukos within two months.

According to the report, the current events run parallel to the
eventual sale of Yuganskneftegaz in December.  The subsidiary
was first burdened with heavy tax so that its initial price was
reduced to US$8.65 billion, when its fair estimate was higher
than US$14 billion.

Analysts' current valuation of Samaraneftegaz, which produces
about 12 million metric tons of oil per year, puts its top price
at US$5 billion.

Samaraneftegaz is faced with a horde of issues that could lower
its value.  One is the RUB23.5 billion tax claim against it for
2001-2003.  Another is the US$526.141 million loan, guaranteed
by Yuganskneftegaz and Samaraneftegaz, that is now being called
by Societe Generale S.A.

Samaraneftegaz is also facing accusations from the Samara
regional prosecutor's office of increasing oil production in
1999 and 2000, and underpaying the tax on mineral wealth in 1999
and 2000 by RUB3.6 billion.  The prosecutors are demanding the
return of RUB7 billion.

It is believed that the ultimate motive of the assault on Yukos
is to render the firm bankrupt so that state-owned Rosneft, the
new owner of Yuganskneftegaz, could obtain control over all its
assets.  Because Samaraneftegaz stocks are frozen, court
bailiffs could not sell it for other Yukos debt.  The unit may
in the long run end up with Rosneft.

CONTACT:  OAO NK YUKOS
          31A Dubininskaya St.
          115054 Moscow, Russia
          Phone: +7-95-232-3161
          Fax: +7-95-232-3160
          Web site: http://www.yukos.com


YUKOS OIL: TNK-BP Eyes Mazeikiu Nafta Stake
-------------------------------------------
TNK-BP, one of the country's largest oil producers, is mulling
to acquire the 53.7% stake of troubled fuel giant Yukos Oil in
Lithuanian refinery Mazeikiu Nafta, MosNews says.

Vladimir Ruga, in an interview with daily Lietuvos Rytas,
revealed TNK-BP wants to expand in the Baltic region through
acquiring the Yukos' majority stake.  Mr. Ruga said, "Our firm
is ready to consider the possibility of acquiring a stake in
Mazeikiu Nafta if we see that it will guarantee strategic
advantages."

The Lithuanian government holds the holds a 40.66 stake in
Mazeiku, giving it a voice in any new ownership deal.
Lithuanian Prime Minister Algirdas Brazauskas recently said
Mazeiku might fall into new hands by June, but refused to name
possible bidders for Yukos' shares.

A source close to Yukos, however, revealed the oil group is
currently holding talks with several local and Western companies
over a possible sale of its Mazeiku stake, which the embattled
firm values at around US$1 billion.  Yukos, however, might be
forced to accept an offer between US$800 million to US$900
million due to its pending legal and financial problems.  As of
this time, only two parties have expressed interest in acquiring
Yukos' stake: the Lithuanian government and Lukoil, the
country's largest oil company after Yukos' downfall.

CONTACT:  OAO NK YUKOS
          31A Dubininskaya St.
          115054 Moscow, Russia
          Phone: +7-95-232-3161
          Fax: +7-95-232-3160
          Web site: http://www.yukos.com

          TNK-BP LTD.
          18/2 Schipok St.
          115093 Moscow, Russia
          Phone: +7-095-745-78-46
          Fax: +7-095-787-96-42
          Web site: http://www.tnk-bp.ru

          OAO LUKOIL
          11 Sretenski Blvd.
          101 000 Moscow, Russia
          Phone: +7-095-927-4444
          Fax: +7-095-916-0020
          Web site: http://www.lukoil.com


=====================
S W I T Z E R L A N D
=====================


KABA HOLDING: Shakes up Management
----------------------------------
Rudolf Weber appointed CEO of the Kaba Group as of mid-2006 -
Ulrich Graf to become chairman after the General Meeting in 2006

The Board of Directors of Kaba Holding AG has appointed Rudolf
Weber the new CEO of the Kaba Group.  Mr. Weber has been a
member of the board since 1998 and is currently CEO of Fr.
Sauter AG in Basel.  He will assume the responsibility for the
Group's operations as of mid-2006.

Also, the Board of Directors intends to nominate the current
CEO, Ulrich Graf, as its chairman after the General Meeting in
2006.  This will assure sustainability in the successful
implementation of the Group's strategy as well as continuity in
appointments for top management positions.

Kaba's Board of Directors has appointed experienced entrepreneur
Rudolf Weber as the Group's new CEO.  Mr. Weber, 55, who has a
degree in engineering (ETH) and a degree in business
administration (HSG), has been the CEO of Fr. Sauter in Basel
since 2001.  With revenues of some CHF300 million, Sauter is one
of the major players in the European building automation market.
Weber has also been a member of the Board of Directors of Kaba
Holding AG since 1998.

Kaba's current chairman Rudolf Hauser said: "The generational
change at the helm was planned and prepared with a long-term
perspective.  Rudolf Weber is thoroughly acquainted with Kaba,
which makes him an ideal choice.  I am also confident that the
timing is right.  After the General Meeting in 2006, I can pass
on the chairmanship with great optimism.  We have decided to
break the news early because this is in the interest of a well-
implemented and harmonious transition."

Within the scope of this transition, the current CEO Ulrich Graf
stands ready to be elected Chairman of the Board said:
"Continuity in its strategic directions is of decisive
significance for Kaba.  As chairman, I intend to keep the Group
on a sustainable and successful course.  Long-term planning in
the recruitment of talent for top executive positions has always
been a key issue for me as well; in my view, it is the most
important success factor.  Particularly in top management, I
find it most appropriate to appoint candidates from within
because they know the business and can aim for success
immediately."

Ulrich Graf has held various executive positions within the Kaba
Group since 1976.  In the meantime, the company has evolved from
a producer of mechanical parts (sales of the Bauer Group
approximately CHF40 million in 1975/76) to a high-tech security
corporation (sales approx CHF1 billion, net income CHF57 million
after Swiss GAAO FER in 2003/04).  Graf can entrust to the hands
of his successor a globally active, market-listed technology
leader in the domains of locking systems, access control,
enterprise data collection, security doors, automatic doors, and
key cutting systems.

CONTACT:  KABA HOLDINGS AG
          Hofwisenstrasse 24
          8153 Ruemlang,
          Switzerland
          Phone: +41 44 818 90 11
          Fax: +41 44 818 90 18


SWISS INTERNATIONAL: CLA Negotiations Fail
------------------------------------------
The Swiss International Board of Directors on Thursday reviewed
the status of contract negotiations with cabin and cockpit
personnel, which began back in January.  It was ascertained that
virtually no progress has been made in negotiations with Kapers,
Unia or Swiss Pilots.  Intensive negotiations are taking place
with Aeropers but no binding results have yet been achieved.

The Board of Directors has expressed clearly its disappointment
at the current status of the negotiations for a new Collective
Labour Agreement.  The airline can reach its goal of becoming a
sustainably profitable company only if it has a cost structure
that is in line with market conditions.  To that end, Swiss must
cut jobs in those areas of the company where overstaffing
exists, increase productivity and implement a competitive salary
structure.  Without a substantial contribution from the unions,
it will not be possible to complete the turnaround in the near
future or experience future growth.

The Board of Directors urges the unions representing flying
personnel to move away from their positions, some of which are
being stubbornly adhered to, and to make a comprehensive
contribution toward improving the company's cost structure.  The
Board regrets that Swiss Pilots has once again opted to seek
legal arbitration rather than negotiate with the company.  Swiss
remains willing to find solutions at the bargaining table.

Swiss remains determined to find, together with its unions,
sustainable and forward-looking solutions that safeguard jobs.

The Board of Directors acknowledged with satisfaction the
conclusion of a new CLA with the unions representing ground
staff, which became effective April 1, 2005.

Member of Swiss management and the Management Board are also
making a contribution by foregoing 10% of their variable salary
component and up to five days of vacation.

CONTACT:  SWISS INTERNATIONAL
          Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone: +41 (0) 848 773 773
          Fax: +41 61 582 35 54
          E-mail: communications@swiss.com
          Web site: http://www.swiss.com


SWISS INTERNATIONAL: Shareholders Extend Term of Five Directors
---------------------------------------------------------------
Swiss International presented results for the 2004 business year
at its shareholders' assembly on May 19, 2005.  The company's
shareholders accepted all of the proposals put forward by the
Board of Directors items.  They duly granted discharge to the
Board of Directors and approved the re-election of all directors
nominated.

Under the planned take-over of Swiss International Air Lines AG
by Deutsche Lufthansa AG a reduction in the size of the Board of
Directors is foreseen, as is a new election of the board's
members during the course of the business year.  Until this
happens, the existing Board of Directors is to remain in office.

Swiss shareholders thus approved the board's proposal and
extended by one year the mandates of board members Pieter Bouw,
Claudio Generali, Jacques Aigrain, Michael Pieper and Peter
Siegenthaler.  The mandates for Walter Bosch and Jan Audun
Reinas run until 2006, while that of Rolf Jetzer carries through
until 2007.  In other business, the assembly soundly rejected a
request for an independent audit put forward by Hans-Jacob
Heitz.

This year's Shareholders' Assembly took place in the Basel
Messehalle with 574 shareholders attending.  Together they
represented 85.77% of Swiss share capital.

CONTACT:  SWISS INTERNATIONAL
          Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone: +41 (0) 848 773 773
          Fax: +41 61 582 35 54
          E-mail: communications@swiss.com
          Web site: http://www.swiss.com


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


FINIST: Under Bankruptcy Supervision
------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
supervision procedure on OJSC Finist (code EDRPOU 01049054) on
March 29, 2005.  The case is docketed as 23/228-b.  Mr. I. Gusar
(License Number AA 719858) has been appointed temporary
insolvency manager.  The company holds account number
26006301290043 at Prominvestbank, Leningradske branch in Kyiv
region, MFO 322108.

Creditors may submit their proofs of claim to:

(a) FINIST
    03164, Ukraine, Kyiv region,
    Ak. Bulahovskij Str. 2

(b) Mr. I. Gusar
    Temporary Insolvency Manager
    01030, Ukraine, Kyiv region, a/b 29
    Phone/Fax: (044) 236-11-17

(c) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


HODORIV' MEAT: Temporary Insolvency Manager Takes over Helm
-----------------------------------------------------------
The Economic Court of Lviv region commenced bankruptcy
supervision procedure on OJSC Hodoriv' Meat Combine (code EDRPOU
00443826) on March 4, 2005.  The case is docketed as 6/53-8/32.
Mr. Lubomir Cherevatij (License Number AA 630123) has been
appointed temporary insolvency manager.  The company holds
account numbers 2600510013578, 2600800013578 and 2604200013578
at JSCB Ukrsocbank, Lviv regional branch, MFO 325019.

Creditors may submit their proofs of claim to:

(a) HODORIV' MEAT COMBINE
    81750, Ukraine, Lviv region,
    Zhidachivskij district, Shevchenko Str. 222

(b) Mr. Lubomir Cherevatij
    Temporary Insolvency Manager
    79022, Ukraine, Lviv region,
    Gorodotska Str. 277, a/b 10296

(c) ECONOMIC COURT OF VOLINSKA REGION
    43010, Ukraine, Volinska region,
    Lutsk, Voli Avenue, 54-a


KERCH: Urges Creditors to File Claims
-------------------------------------
The Economic Court of AR Krym region commenced bankruptcy
supervision procedure on Kerch (code EDRPOU 22235695).  The case
is docketed as 2-5/4154-2005.  Mr. Nikonov Vyacheslav (License
Number AA 779188) has been appointed temporary insolvency
manager.  The company holds account number 26002500117471 at
JSCB Ukrsocbank, MFO 324098.

Creditors may submit their proofs of claim to:

(a) KERCH
    98300, Ukraine, AR Krym region,
    Kerch, Kirov Str. 11a

(b) Mr. Nikonov Vyacheslav
    Temporary Insolvency Manager
    95017, Ukraine, AR Krym region,
    Simferopol, M. Zalki Str. 7 b/29
    Phone: 8 (0652) 26-98-76
                    26-98-71

(c) THE ECONOMIC COURT OF AR KRYM REGION
    95000, Ukraine, AR Krym region,
    Simferopol, Karl Marks Str. 18


LUTSK' AUTO 0201: Declared Insolvent
------------------------------------
The Economic Court of Volinska region commenced bankruptcy
proceedings against Lutsk' Auto-Transport Enterprise-0201 (code
EDRPOU 05383997) on March 28, 2005 after finding the open joint
stock company insolvent.  The case is docketed as 7/118-B.  Mr.
Lubomir Cherevatij (License Number AA 630123) has been appointed
liquidator/insolvency manager.

Creditors may submit their proofs of claim to:

(a) LUTSK' AUTO-TRANSPORT ENTERPRISE-0201
    43018, Ukraine, Volinska region,
    Lutsk, Lvivska Str. 154

(b) Mr. Lubomir Cherevatij
    Liquidator/Insolvency Manager
    79022, Ukraine, Lviv region,
    Gorodotska Str. 277, a/b 10296

(c) ECONOMIC COURT OF VOLINSKA REGION
    43010, Ukraine, Volinska region,
    Lutsk, Voli Avenue, 54-a


NORD: Court Appoints Temporary Insolvency Manager
-------------------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
supervision procedure on Investing Building Company Nord (code
EDRPOU 25271326) on March 29, 2005.  The case is docketed as
23/230-b.  Mr. Yurij Palshin (License Number AA 668344) has been
appointed temporary insolvency manager.

Creditors may submit their proofs of claim to:

(a) NORD
    04119, Ukraine, Kyiv region,
    Simyi Hohlovih Str. 15

(b) Mr. Yurij Palshin
    Temporary Insolvency Manager
    01030, Ukraine, Kyiv region, a/b 254

(c) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


PERSPEKTIVA: Bankruptcy Supervision Starts
------------------------------------------
The Economic Court of Dnipropetrovsk region commenced bankruptcy
supervision procedure on LLC Perspektiva (code EDRPOU 24244907)
on February 22, 2005.  The case is docketed as B 15/36/05.  Mr.
Leonid Talan (License Number AA 216750) has been appointed
temporary insolvency manager.  The company holds account number
2600010098801 at JSCB Ukrsocbank, Dnipropetrovsk branch, MFO
305017.

Creditors may submit their proofs of claim to:

(a) PERSPEKTIVA
    Legal address:
    49070, Ukraine, Dnipropetrovsk region,
    Lenin Str. 2-A/2

    Actual address:
    49070, Ukraine, Dnipropetrovsk region,
    Karl Libkneht Str. 9/101

(b) Mr. Leonid Talan
    Temporary Insolvency Manager
    49000, Ukraine, Dnipropetrovsk region, a/b 158

(c) ECONOMIC COURT OF DNIPROPETROVSK REGION
    49600, Ukraine, Dnipropetrovsk region,
    Kujbishev Str. 1a


SAFRONIYEVE UGIDDYA: Court Appoints Insolvency Manager
------------------------------------------------------
The Economic Court of Sumi region commenced bankruptcy
proceedings against Safroniyeve Ugiddya (code EDRPOU 30390717)
on April 4, 2005 after finding the limited liability company
insolvent.  The case is docketed as 6/121-04.  Mr. Vadim Zakorko
(License Number AA 719836) has been appointed
liquidator/insolvency manager.

Creditors may submit their proofs of claim to:

(a) SAFRONIYEVE UGIDDYA
    41500, Ukraine, Sumi region,
    Putivlskij district, Nova Sloboda

(b) Mr. Vadim Zakorko
    Liquidator/Insolvency Manager
    40030, Ukraine, Sumi region,
    Proletarska Str. 69, 2nd floor

(c) ECONOMIC COURT OF SUMI REGION
    40030, Ukraine, Sumi region,
    Shevchenko Avenue, 18/1


UKRKULTSERVICE: P. Rodin Appointed Liquidator
---------------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
proceedings against Ukrkultservice (code EDRPOU 30936095) on
April 5, 2005 after finding the limited liability company
insolvent.  Mr. P. Rodin has been appointed
liquidator/insolvency manager.  The company holds account number
26003002108001 at CB Nadra, Shevchenkivske branch in Kyiv
region, MFO 320973.

Creditors may submit their proofs of claim to:

(a) UKRKULTSERVICE
    Ukraine, Kyiv region,
    Zakrevskij Str. 41-a/113

(b) Mr. P. Rodin
    Liquidator/Insolvency Manager
    Ukraine, Kyiv region,
    Shalom-Alejhem Str. 15/187

(c) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


YAGOTIN' FOOD: Succumbs to Bankruptcy
-------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
supervision procedure on OJSC Yagotin' Food Products Plant (code
EDRPOU 00378508).  The case is docketed as 16/11 b-05.  Mr.
Sergij Krupenko (License Number AA 668345) has been appointed
temporary insolvency manager.  The company holds account number
2600300190098 at JSCB Praveks Bank, MFO 321983.

Creditors may submit their proofs of claim to:

(a) YAGOTIN' FOOD PRODUCTS PLANT
    07700, Ukraine, Kyiv region,
    Yagotin, Shevchenko Str. 219

(b) Mr. Sergij Krupenko
    Temporary Insolvency Manager
    02183, Ukraine, Kyiv region, a/b 93
    Mobile: (050) 595-99-97

(c) ECONOMIC COURT OF KYIV REGION
    01033, Ukraine, Kyiv region,
    Zhelyanska Str. 58 b


YUST: Dnipropetrovsk Court Opens Bankruptcy Proceedings
-------------------------------------------------------
The Economic Court of Dnipropetrovsk region commenced bankruptcy
proceedings against Yust (code EDRPOU 25021718) on April 12,
2005 after finding the limited liability company insolvent.  The
case is docketed as B 40/149/04.  Mr. Krupenko (License Number
AA 630052) has been appointed liquidator/insolvency manager.
The company holds account number 26008050301583 at CB
Privatbank, MFO 305299.

Creditors may submit their proofs of claim to:

(a) Mr. Krupenko
    Liquidator/Insolvency Manager
    49040, Ukraine, Dnipropetrovsk region, a/b 2350
    Phone/Fax: (0562) 31-82-12

(b) ECONOMIC COURT OF DNIPROPETROVSK REGION
    49600, Ukraine, Dnipropetrovsk region,
    Kujbishev Str. 1a


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


AIR BLAST: Decides to Call in Administrators
--------------------------------------------
Simon Franklin Plant and Daniel Plant (IP Nos 9155, 9207) have
been appointed administrators for Air Blast Technologies
Limited.  The appointment was made May 10, 2005.  The company
treats and coats metals.  Its registered office is located at
Lutomer House, 100 Prestons Road, London E14 9SB.

CONTACT:  S. F. PLANT & CO.
          Lutomer House Business Centre
          100 Prestons Road
          London E14 9SB
          Phone: 0207 538 2222
          Fax: 0207 538 3322


BARLOW CLOWES: Final Creditors Meeting Set June
-----------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

         IN THE MATTER OF Barlow Clowes Gilt Managers Ltd.

Notice is hereby given, pursuant to section 146 of the
Insolvency Act 1986 that a Final Meeting of the Creditors of
Barlow Clowes Gilt Managers Ltd. will be held at
PricewaterhouseCoopers LLP, Lennox House, Beaufort Buildings,
Spa Road, Gloucester GL1 1XD, on June 22, 2005 at 10:30 a.m. for
the purposes mentioned in section 146 of the said Act, that is
receiving the Liquidator's report of the winding-up, and
determining whether the Liquidator should have his release under
section 174 of the said Act.

A. R. Stanway, Liquidator
May 13, 2005

CONTACT:  PRICEWATERHOUSECOOPERS LLP
          Lennox House
          Beaufort Buildings
          Spa Road
          Gloucester GL1 1XD
          Phone: [44] (1452) 332200
          Fax: [44] (1452) 874622
          Web site: http://www.pwcglobal.com


BLUE MOON: Administrators from S. F. Plant Move in
--------------------------------------------------
Simon Franklin Plant and Daniel Plant (IP Nos 9155, 9207) have
been appointed administrators for publishing company Blue Moon
Publishing Limited.  The appointment was made May 9, 2005.  Its
registered office is located at Lutomer House, 100 Prestons
Road, London E14 9SB.

CONTACT:  S. F. PLANT & CO.
          Lutomer House Business Centre
          100 Prestons Road
          London E14 9SB
          Phone: 0207 538 2222
          Fax: 0207 538 3322


BONNER & KNAPP: Hires Administrators from Rothman Pantall & Co.
---------------------------------------------------------------
R. D. Smailes and S. B. Ryman (Office Holder Nos 8975, 4371)
have been appointed administrators for real estate company
Bonner & Knapp Limited.  The appointment was made May 5, 2005.
Its registered office is located at Clareville House, 26-27
Oxendon Street, London SW1Y 4EP.

CONTACT:  ROTHMAN PANTALL & CO.
          Clareville House,
          26-27 Oxendon Street,
          London SW1Y 4EP
          Phone: +44 (0) 20 7930 7272
          Fax: +44 (0) 20 7930 9849
          E-mail: london@rothman-pantall.co.uk
          Web site: http://www.rothman-pantall.co.uk


BRITEL DEVELOPMENTS: Hires Deloitte & Touche to Liquidate Assets
----------------------------------------------------------------
At the general meeting of Britel Developments (Bracknell)
Limited, the special and ordinary resolutions to wind up the
company were passed.  J. R. D. Smith and N. J. Dargan of P.O.
Box 810, Athene Place, 66 Shoe Lane, London EC4A 3WA have been
appointed joint liquidators of the company.

CONTACT:  DELOITTE & TOUCHE LLP
          Athene Place
          66 Shoe Lane
          London EC4A 3BQ
          Phone: 00 44 (0) 207 936 3000
          Fax: 00 44 (0) 207 779 4001
          Web site: http://www.deloitte.com


CARRINGTON STREET: Members Decide to Wind up Business
-----------------------------------------------------
Name of companies:
Carrington Street Lasts Limited
Fineline Last Company Limited
Looms Limited

At the extraordinary general meeting of these companies on May
10, 2005 held at Thorpe House, 93 Headlands, Kettering,
Northamptonshire NN15 6BL, the special resolution to wind up the
company was passed.  Richard Frank Simms of F A Simms & Partners
Plc, Insol House, 39 Station Road, Lutterworth, Leicestershire
LE17 4AP has been appointed liquidator of the company.

CONTACT:  F A SIMMS & PARTNERS PLC
          Insol House
          39 Station Road
          Lutterworth
          Leicestershire LE17 4AP
          Phone: 01455 557111
          Fax: 01455 552572
          E-mail: rsimms@fasimms.com


CHARLES HENRY: Files for Administration
---------------------------------------
Michael Edward George Saville and Rob Sadler (IP Nos 7250, 9172)
have been appointed joint administrators for Charles Henry
Wallace Limited.  The appointment was made May 11, 2005.  The
company wholesales meat.  Its registered office is located at 30
Park Cross Street, Leeds LS1 2QH.

CONTACT:  BEGBIES TRAYNOR
          30 Park Cross Street, Leeds LS1 2QH
          Web site: http://www.begbies.com


COSMACK MANAGEMENT: Winding-up Report Out June
----------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

           IN THE MATTER OF Cosmack Management Limited

Notice is hereby given, pursuant to section 146 of the
Insolvency Act 1986, that a General Meeting of Creditors of
Cosmack Management Limited will be held at the offices of BDO
Stoy Hayward LLP, 8 Baker Street, London W1U 3LL on June 17,
2005, at 11:00 a.m. for the purpose of having an account laid
before the Meeting showing the manner in which the winding-up
has been conducted and the property of the Company disposed of,
and of hearing any explanation that may be given by the
Liquidators.

A. P. Supperstone, Joint Liquidator
May 9, 2005

CONTACT:  BDO STOY HAYWARD LLP
          8 Baker Street
          London W1U 3LL
          Phone: 020 7486 5888
          Fax: 020 7487 3686
          E-mail: london@bdo.co.uk
          Web site: http://www.bdostoyhayward.co.uk


COSTAIN GROUP: Court Approves Share Capital Reduction
-----------------------------------------------------
The special resolution, passed by the board of Costain Group plc
at the extraordinary general meeting held on 28 April 2005,
approving the reduction of share capital and cancellation of
share premium account in the Company, was approved by the
Companies Court on 18 May 2005 and was registered at Companies
House Friday.

Following this capital reduction, each shareholder will hold the
same number of shares and each holding will bear the same
relationship to the total issued share capital and market
capitalization of the Company as does a shareholder's current
shareholding.  The only difference will be that the nominal
value of the ordinary shares will now be 5 pence.

CONTACT:  COSTAIN GROUP PLC
          Costain House, Nicholsons Walk
          Maidenhead
          SL6 1LN, United Kingdom
          Phone: +44-1628-842-444
          Fax: +44-1628-674-477
          Web site: http://www.costain.com

          Stuart Doughty, Chief Executive
          Charles McCole, Finance Director
          Graham Read, Public Relations
          Phone: 01628 842 444

          COLLEGE HILL
          Mark Garraway
          Matthew Gregorowski
          Phone: 020 7457 2020


COSTAIN GROUP: Fitch Affirms 'B' Ratings, Stable Outlook
--------------------------------------------------------
Fitch Ratings affirmed U.K.-based engineering and construction
group Costain Group Plc's ratings at Senior Unsecured 'B' and
Short-term 'B'.  The Outlook is Stable.

The ratings reflect Costain's established market position in the
U.K. engineering and construction sector, and the progress
management have made in adopting a more risk-averse business
model.  Furthermore, the group's growing forward order book of
GBP1.5 billion (as at Q105) provides a good platform for further
growth underpinned by continued favorable market conditions in
public and private sectors.  Nevertheless, Costain remains small
compared to often larger peers and is active in cyclical and
competitive markets, even if this is partly offset by longer
term contracts.

The ratings also reflect Costain's still weak financial profile
evident in low -- albeit improved -- profitability, negative
operational cash flow, a reliance on profits from joint ventures
in overseas property development, together with a continued
sizeable net pension liability.  An important support factor for
the rating remains a continued net cash position, which at FYE04
was GBP45.2 million (excluding GBP18.9 million of restricted
cash included in JVs), which partly covered the growing pension
deficit of GBP69.2 million.  On a pension adjusted basis, net
debt to EBITDA was acceptable albeit higher at 1.6x (FY03:
1.2x).  Gross borrowings remained minimal.  Fitch notes that the
company intends to resume dividend payments from 2006 and is
currently reviewing the balance between the requirements of its
pension scheme and the company's obligations.

The Stable Outlook reflects Fitch's expectation that Costain
will continue to grow and strengthen its business profile aided
by a continuation of generally favorable U.K. market conditions.
However, this is offset by uncertainty over future dividend
policy and the level of pension contributions.  A rating upgrade
would depend on a sustained improvement in margins, a return to
positive operational cash flow generation and a further
improvement in the group's business mix.  A rating downgrade
could occur in the future if profit margins decrease,
operational cash flow remains negative or there was a material
eroding of the group's net cash position, for example by way of
dividend payments or increased pension contributions.

CONTACT:  FITCH RATINGS
          Alex Herbert, London
          Phone: +44 (0) 20 7417 6334

          Monica Klingberg Insoll
          Phone: +44 (0) 20 7417 4281

          Media Relations:
          Alex Clelland, London
          Phone: +44 20 7862 4084


DD TRADING: Hires Sharma & Co. as Administrator
-----------------------------------------------
G. D. Sharma (IP No 9145) has been appointed administrator for
DD Trading Limited.  The appointment was made May 12, 2005.  The
company is into commodity trading.  Its registered office is
located at 50 Newhall Street, Birmingham B3 3QE.

CONTACT:  SHARMA & CO.
          50 Newhall Street
          Birmingham
          West Midlands B3 3QE
          Phone: 0121 248 5007
          Fax: 0121 248 5010
          E-mail: gagen@sharmaandco.com


DISTRIBUTED TECHNOLOGY: Names Vantis Business Administrator
-----------------------------------------------------------
Mark Newman (IP No 8723) has been appointed administrator for
Distributed Technology Limited.  The appointment was made May
12, 2005.  The company distributes electronic components.  Its
registered office is located at Judd House, East Street,
Tonbridge, Kent TN9 1HG.

CONTACT:  VANTIS BUSINESS RECOVERY
          Judd House
          East Street
          Tonbridge
          Kent TN9 1HG
          Phone: 01732 378680
          Fax: 07917260099
          E-mail: mark.newman@vantisplc.com


EXECUTIVE CATERING: Hires Administrator from Begbies Traynor
------------------------------------------------------------
Jamie Taylor and David Paul Hudson (IP Nos 002748, 008977) have
been appointed administrators for caterers Executive Catering
Limited.  The appointment was made May 12, 2005.  Its registered
office is located at 10 Portland Business Centre, Manor House
Lane, Datchet, Slough, Buckinghamshire SL3 9EG.

CONTACT:  BEGBIES TRAYNOR
          The Old Exchange, 234 Southchurch Road
          Southend-on-Sea SS1 2EG
          Phone: 01702 467255
          Fax: 01702 467201
          E-mail: southend@begbies-traynor.com
          Web site: http://www.begbies.com


GARDEN COTTAGE: Food Wholesaler in Administrative Receivership
--------------------------------------------------------------
William Jeremy Jonathan Knight (IP No 2236) has been appointed
administrator for Garden Cottage Foods Limited.  The appointment
was made May 11, 2005.  The company wholesales non-specialized
foods.

CONTACT:  JEREMY KNIGHT & CO.
          68 Ship Street
          Brighton
          Sussex BN1 1AE
          Phone: 01273 203654
          Fax: 01273 206056
          E-mail: jknight@mistral.co.uk


GLASSMAN (MIDLANDS): Appoints Administrators from KPMG
------------------------------------------------------
Howard Smith, Richard Dixon Fleming (IP Nos 9341, 8370) and
Paul Andrew Flint (IP No 9075) have been appointed
administrators for Glassman (Midlands) Ltd.  The appointment was
made May 11, 2005.  Its registered office is located at 30-31
Carlton Business Centre, Station Road, Nottingham NG4 3AA.

CONTACT:  KPMG LLP
          1 The Embankment
          Neville Street
          Leeds
          West Yorkshire LS1 4DW
          Phone: 0113 231 3332
          Fax: 0113 231 3183
          E-mail: richard.fleming@kpmg.co.uk

          KPMG LLP
          St James' Square
          Manchester
          Greater Manchester M2 6DS
          Phone: 0161 838 4000
          Fax: 0161 838 4040


GRUPPO LAVORI: Sets Creditors Meeting Friday
--------------------------------------------
The creditors of Gruppo Lavori Speciali Limited will meet on May
27, 2005 at 11:00 a.m.  It will be held at 17-19 Foley Street,
London W1W 6DW.  Creditors who want to be represented at the
meeting may appoint proxies.  Proxy forms must be submitted
together with written debt claims to 17-19 Foley Street, London
W1W 6DW not later than 12:00 noon, May 26, 2005.

CONTACT:  MENZIES CORPORATE RESTRUCTURING
          17-19 Foley Street
          London W1W 6DW
          Phone: 020 7291 9750
          Fax: 020 7291 9777
          E-mail: mcr@menzies.co.uk
          Web site: http://www.menzies.co.uk


HERITAGE PRINT: Names Milner Boardman & Partners Administrator
--------------------------------------------------------------
Colin Burke and Gary J. Corbett (IP Nos 8803, 9018) have been
appointed joint administrators for The Heritage Print Company
Limited.  The appointment was made May 12, 2005.  The company
manufactures wallpaper.  Its registered office is located at
Britannia Mill, Cross Street, Darwen, Lancashire BB3 2PN.

CONTACT:  MILNER BOARDMAN & PARTNERS
          Century House, Ashley Road,
          Hale, Cheshire WA15 9TG
          Phone: 0161 927 7788
          Fax: 0161 927 7733
          E-mail: info@milnerb.co.uk
          Web site: http://www.milnerboardman.co.uk


I-BUS (UK): Middleton Administrator Takes over Operations
---------------------------------------------------------
Michael Francis Stevenson and Julie Anne Palmer (IP Nos 8154,
8835) have been appointed administrators for I-Bus (UK) Limited.
The appointment was made May 11, 2005.  The company manufactures
computers and process equipment as well as other special purpose
machines.  It also handles hardware consultancy.

CONTACT:  MIDDLETON PARTNERS
          65 St Edmunds Church Street,
          Salisbury, Wiltshire SP1 1EF
          Phone: 01722 435 192
          Fax: 01722 421102
          E-mail: julie@middletonpartnerssalisbury.co.uk
          Web site: http://www.middletonpartners.co.uk


KAKTUS LIMITED: Hires Administrator from Maidment Judd
------------------------------------------------------
A. D. Kent (Office Holder No 8764) has been appointed
administrator for Kaktus Limited.  The appointment was made May
13, 2005.  The company is a consultant for information
technology.  Its registered office is located at 11 Goldington
Road, Bedford, Bedfordshire MK40 3JY.

CONTACT:  MAIDMENT JUDD
          60/62 High Street
          Harpenden
          Hertfordshire AL5 2SP
          Phone: 01582 469700
          Fax: 01582 460674
          E-mail: akent@maidmentjudd.co.uk


LALAZAR LIMITED: Sets Creditors Meeting June 17
-----------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

                IN THE MATTER OF Lalazar Limited

Notice is hereby given, pursuant to section 146 of the
Insolvency Act 1986, that a General Meeting of Creditors of
Lalazar Limited will be held at the offices of BDO Stoy Hayward
LLP, 8 Baker Street, London W1U 3LL, on June 17, 2005, at 11:00
a.m. for the purpose of having an account laid before the
Meeting, showing the manner in which the winding-up has been
conducted and the property of the Company disposed of and of
hearing any explanation that may be given by the Liquidators.

A. P. Supperstone, Joint Liquidator
May 9, 2005

CONTACT:  BDO STOY HAYWARD LLP
          8 Baker Street
          London W1U 3LL
          Phone: 020 7486 5888
          Fax: 020 7487 3686
          E-mail: london@bdo.co.uk
          Web site: http://www.bdostoyhayward.co.uk


LATSEL LIMITED: Hires KPMG to Wind up Business
----------------------------------------------
At the general meeting of Latsel Limited on April 28, 2005, the
special and ordinary resolutions to wind up the company were
passed.  Jeremy Simon Spratt and Finbarr Thomas O'Connell of
KPMG LLP, 8 Salisbury Square, London EC4Y 8BB have been
appointed joint liquidators of the company.

CONTACT:  KPMG LLP
          PO Box 695,
          8 Salisbury Square,
          London EC4Y 8BB
          Phone: (020) 7311 1000
          Fax: (020) 7311 3311
          Web site: http://www.kpmg.co.uk


MG ROVER: PwC Targets 'Phoenix Four' Directors
----------------------------------------------
The Phoenix Four is facing a potential lawsuit that could spell
the end of their business venture.

According to The Scotsman, legal experts are advising MG Rover
administrators, PricewaterhouseCoopers, on possible steps to
recover money from the four directors.  If successful, the
lawsuit could force them to return a large chunk of the GBP40
million payout they received in their five years at the helm.
John Towers, Peter Beale, John Edwards and Nick Stephenson, who
bought MG Rover for GBP10 in 2000 from BMW, make up the Phoenix
Four.

The four directors are also facing pressure from the trustees of
MG Rover's pension fund, which has a shortfall of as much as
GBP400 million.  Failure to contribute could push the company
they control, Phoenix Venture Holdings, into administration and
trustees may compel Pensions Regulator to force a payment.

MG Rover may also face action from the Department of Trade and
Industry after the latter hears a report on its collapse
prepared by Sir Bryan Nicholson, the chairman of the Financial
Reporting Council.  According to the report, DTI is poised to
investigate transactions leading up to the collapse, including
the segregation of the company's profitable assets from the
loss-making ones.  The result of the investigation, together
with information obtained from PwC, may lead to the directors'
ouster.

CONTACT:  MG ROVER GROUP LIMITED
          Longbridge, Bickenhill
          Birmingham B31 2TB
          Phone: +44-121-475-2101
          Fax: +44-121-482-2403
          Web site: http://www1.mg-rover.com


MULTI TIE: Liquidator to Give Report Mid-June
---------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

    IN THE MATTER OF Multi Tie Distribution Network Limited

Notice is hereby given that the Final Meeting of Creditors of
Multi Tie Distribution Network Limited will be held at the
offices of Grant Thornton U.K. LLP, Lees House, 21 Dyke Road,
Brighton, East Sussex BN1 3GD, on June 16, 2005, at 10.00 a.m.
to receive the Liquidator's report of the winding-up and to
determine whether the Liquidator should have his release.

A Creditor entitled to attend and vote at the Meeting may
appoint a proxy to attend and vote in his place.  Proxy forms
must be returned to the offices of Grant Thornton U.K. LLP, Lees
House, 21 Dyke Road, Brighton, East Sussex BN1 3GD, by no later
than 12:00 noon on June 15, 2005.

J. Earp, Liquidator
May 11, 2005

CONTACT:  GRANT THORNTON U.K. LLP
          Lees House
          21 Dyke Road
          Brighton BN1 3GD
          Phone: 0870 381 7001
          Fax: 0870 747 6605
          Web site: http://www.grant-thornton.co.uk


OAKBURN IMPORT/EXPORT: Calls in P&A Partnership Administrator
-------------------------------------------------------------
Ian Michael Rose and Robert Michael Young (IP Nos 9144, 7875)
have been appointed administrators for Oakburn Import/Export
Limited.  The appointment was made May 3, 2005.  The company
wholesales floor-covering material.

CONTACT:  THE P&A PARTNERSHIP
          The Old Barn, Caverswall Park, Caverswall Lane
          Stoke on Trent ST3 6HP
          Phone: (0114) 275 5033
          Fax: (0114) 276 8556
          E-mail: info@poppletonappleby.co.uk
          Web site: http://www.thepandapartnership.com


REDFERN INVESTMENTS: Liquidator from Duncan Sheard Moves in
-----------------------------------------------------------
At the extraordinary general meeting of Redfern Investments
Limited on April 28, 2005 held at Duncan Sheard Glass, 43 Castle
Street, Liverpool L2 9TL, the subjoined special resolution to
wind up the company was passed.  Jean McKay Ellis of Duncan
Sheard Glass, 43 Castle Street, Liverpool L2 9TL has been
appointed liquidator of the company.

CONTACT:  DUNCAN SHEARD GLASS
          Castle Chambers,
          43 Castle Street, Liverpool L2 9TL
          Phone: 0151 243 1200
          Fax: 0151 236 1430
          E-mail: liverpool@dsg.uk.com


RODOLPH & HELLMANN: Meeting of Creditors Set Next Month
-------------------------------------------------------
The creditors of Rodolph & Hellmann Logistics Limited will meet
on June 2, 2005 at 11:00 a.m.  It will be held at the Holiday
Inn, Birmingham City Centre, Smallbrook, Queensway B5 4EW.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Baker Tilly, 5th Floor, Exchange House, 446
Midsummer Boulevard, Central Milton Keynes not later than 12:00
noon, June 1, 2005.

CONTACT:  BAKER TILLY
          5th Floor, Exchange House,
          446 Midsummer Boulevard,
          Central Milton Keynes MK9 2EA
          Phone: 01908 687 800
          Fax:   01908 687 801
          Web site: http://www.bakertilly.co.uk


ROONEY CONSTRUCTION: Construction Firm Calls in Administrators
--------------------------------------------------------------
Ian Green and David Walker of PricewaterhouseCoopers were
appointed administrators of Rooney Construction Limited on 17
May 2005.  Rooney Construction Limited is based in Dudley,
Northumberland and employs 45 people.  It provides building and
construction services to a number of private and public sector
clients including local health authorities.

Ian Green, Joint Administrator, said: "Following our review of
the business and contact with the main customers it has become
clear that there is no realistic prospect of saving the business
as a going concern.

"The company has struggled to collect debt owed by certain
customers and has been loss-making for some time.  Thirty-six
staff have been made redundant and the remainder have been
retained to wind down the business over the next few days.
Clearly this is extremely disappointing news for all
stakeholders.  Any interested parties are advised to contact us
as soon as possible."

CONTACT:  ROONEY CONSTRUCTION LIMITED
          Rowlands Buildings, Dudley
          Cramlington, Northumberland NE23 7QQ
          Phone: 01912500148

          Zaria Pinchbeck
          Phone: 01423 565533

          Sean Hamilton
          Phone: 0191 269 4434

          Ian Green
          Partner
          Phone: 0113 289 4000


ROYAL MAIL: Technically Insolvent, Says Finance Director
--------------------------------------------------------
State-owned courier Royal Mail is "technically insolvent,"
Europe Intelligence Wire cites the group's finance director as
saying.

Marisa Cassoni, Royal Mail's finance director, revealed the
group currently has GBP2.5 billion-pension deficit under the old
accounting standards.  The deficit, however, is expected to rise
to GBP4.6 billion once the group adopts International Financial
Reporting Standards (IFRS).  Ms. Cassoni said, "This produces a
negative balance sheet."

Ms. Cassoni added that since Royal Mail is technically
insolvent, it could not pay out dividends to the state, its sole
shareholder.  The company, however, will still operate as going
concern since it has positive cash flow, Ms. Cassoni stressed.
Royal Mail was able to hike its annual profits from GBP220
million in 2004 to GBP537 million for 2004.

Allan Leighton, the group's chairman, revealed Royal Mail has to
avail of more than GBP2 billion in fresh funds to prop up its
thinning margins.  The chairman said will ask financial
assistance from banks to provide the amount.  Mr. Leighton
stressed the group needs to invest further before the market
shifts to full competition within the next six months.  He also
revealed the state is mulling to restructure the group's balance
sheet, but did not provide details on how it would be done.

Mr. Leighton is pushing for Royal Mail's part-privatization,
with employees gaining a share of the group.  He said, "it is my
intention to drive a bigger share of the success of the company
to the people who work there."

The government, however, remains firm in its decision not to
privatize Royal Mail, the Communication Workers Union stressed.
The union commented that it is now time to end "futile
speculation" over different ownership models.

CONTACT:  ROYAL MAIL HOLDINGS PLC
          148 Old St.
          London EC1V 9HQ
          Phone: +44-20-7250-2888
          Fax: +44-20-7250-2244
          Web site: http://www.royalmailgroup.com


SPA LEISURE: General Meeting Set Next Month
-------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

               IN THE MATTER OF Spa Leisure Ltd.

Notice is hereby given, pursuant to section 146 of the
Insolvency Act 1986, that a General Meeting of the Members of
Spa Leisure Ltd. will be held at Baker Tilly, Brazennose House,
Lincoln Square, Manchester M2 5BL, on June 7, 2005, at 10:00
a.m. to be followed at 10:30 a.m. by a Final Meeting of
Creditors for the purpose of receiving an account showing the
manner in which the winding-up has been conducted and the
property of the Company disposed of and of hearing any
explanation that may be given by the Liquidators.

A Member or Creditor entitled to vote at the above Meetings may
appoint a proxy to attend and vote instead of him. A proxy need
not be a Member of the Company.  Proxies to be used at the
Meetings must be lodged with the Liquidators at Baker Tilly,
Brazennose House, Lincoln Square, Manchester M2 5BL, no later
than 12:00 noon on the day prior to the meeting.

S. M. Quinn, Liquidator
May 6, 2005

CONTACT:  BAKER TILLY
          Brazennose House
          Lincoln Square
          Manchester M2 5BL
          Phone: 0161 834 5777
          Fax: 0161 835 3242
          Web site: http://www.bakertilly.co.uk


STRATAGAS PLC: Members Pass Winding-up Resolutions
--------------------------------------------------
At the extraordinary general meeting of the members of Stratagas
Plc on May 5, 2005 held at Century House, St James Court, Friar
Gate, Derby DE1 1BT, the special and ordinary resolutions to
wind up the company were passed.  Edward T. Kerr of PKF has been
appointed liquidator of the company.

CONTACT:  PKF
          Pannell House,
          159 Charles Street,
          Leicester LE1 1LD
          Phone: 0117 906 4000
          Fax: 0117 974 1238
          E-mail: info.bristol@uk.pkf.com
          Web site: http://www.pkf.co.uk


TMA GLOBAL: Sets Creditors Meeting Thursday
-------------------------------------------
The creditors of TMA Global Limited will meet on May 26, 2005 at
10:00 a.m.  It will be held at Rothman Pantall & Co, Clareville
House, 26-27 Oxendon Street, London SW1Y 4EP.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Rothman Pantall & Co, Clareville House, 26-27
Oxendon Street, London SW1Y 4EP not later than 12:00 noon, May
25, 2005.

CONTACT:  ROTHMAN PANTALL & CO
          Clareville House,
          26-27 Oxendon Street,
          London SW1Y 4EP
          Phone: +44 (0) 20 7930 7272
          Fax: +44 (0) 20 7930 9849
          E-mail: london@rothman-pantall.co.uk
          Web site: http://www.rothman-pantall.co.uk


TRANQUIL STORM: In Administrative Receivership
----------------------------------------------
GMAC Commercial Finance Plc appoints David Harry Gilbert and
Simon James Michaels (Office Holder Nos 2376/01, 8824/01) joint
administrators for printing company Tranquil Storm Limited (Reg
No 04408904, Trade Classification: 10).  The application was
filed May 9, 2005.

CONTACT:  BDO STOY HAYWARD LLP
          8 Baker Street
          London W1U 3LL
          Phone: 020 7486 5888
          Fax: 020 7487 3686
          E-mail: london@bdo.co.uk
          Web site: http://www.bdostoyhayward.co.uk


WALKER PROCESS: Administrator from Tenon Recovery Moves in
----------------------------------------------------------
Ian William Kings (IP No 7232) has been appointed administrator
for Walker Process Engineering Limited.  The appointment was
made May 11, 2005.

The company specializes in welding, pressure vessels and
fabricates high-pressure pipe work.  Its registered office is
located at Tenon Recovery, Tenon House, Ferryboat Lane,
Sunderland SR5 3JN.

CONTACT:  TENON RECOVERY
          Tenon House, Ferryboat Lane,
          Sunderland SR5 3JN
          Phone: 0191 511 5000
          Fax:   0191 511 5001
          Web site: http://www.tenongroup.com


WHIRLYBIRDS LIMITED: Members Pass Winding-up Resolutions
--------------------------------------------------------
At the extraordinary general meeting of the members of
Whirlybirds Limited on May 4, 2005 held at Lovewell Blake, 89
Bridge Road, Oulton Broad, Lowestoft NR32 3LN, the special,
ordinary and extraordinary resolutions to wind up the company
were passed.  Christopher Robin Ashe and Andrew John Turner of
Lovewell Blake, 89 Bridge Road, Oulton Broad, Lowestoft NR32 3LN
have been appointed joint liquidators of the company.

CONTACT:  LOVEWELL BLAKE
          89 Bridge Road
          Oulton Broad
          Lowestoft
          Suffolk NR32 3LN
          Phone: 01502 563921
          Fax: 01502 584630
          E-mail: ajt@lovewell-blake.co.uk


YELL FINANCE: Moody's Affirms Ba2 Rating, Outlook Stable
--------------------------------------------------------
Moody's Investors Service affirmed the ratings of Yell Finance
B.V. (following the company's announcement that it has signed a
definitive agreement to acquire Transwestern Publishing (TWP),
rated B1, developing outlook.  Consideration for the debt and
equity of TWP is US$1,575 million, which Yell is financing with
debt.

Ratings affirmed are:

(a) Senior implied rating of Ba2,

(b) Issuer rating of B1,

(c) 10.75% GBP 162.5 million Senior Notes due 2011 affirmed at
    B1,

(d) 10.75% US$ 200 million Senior Notes due 2011 affirmed at B1,

(e) 13.5% US$187.4 million Senior Subordinated Notes due 2011
    affirmed at B1,

(f) GBP860 million Senior Credit facilities affirmed at Ba2

The outlook on all ratings is stable.

The ratings affirmation reflects the strategic rationale for the
acquisition, Yell's track record in successfully integrating
other US acquisitions, the company's strong cash flow generation
combined with ongoing improvements in its operations in the U.S.
However, Moody's views the acquisition price as aggressive and
as a result, the ratings, although affirmed, are now considered
weakly positioned in the rating category.

Consideration of US$1,575 million for TWP represents an
acquisition multiple of c. 15.7x TWP's FY04 EBITDA of US$99.3
million which, in Moody's view is expensive and reflects a
defensive strategic rationale for the acquisition.  Of
particular concern is the fact that over the short-term, TWP's
cash flow is not sufficient to offset Yell's increased interest
burden.  The acquisition materially increases Yell's leverage
from 2.7x net debt/adjusted EBITDA as of 31 March 2005 to 4.3x
on a pro forma basis, however the affirmation reflects Moody's
expectation that leverage will fall to around 4.0x by March 2006
and remain in the range of 3x to 4x EBITDA on an ongoing basis.

The transaction will be funded through a new GBP2 billion
facility which will also replace Yell's existing GBP 860 million
senior credit facilities.  The rating on the existing facilities
will be withdrawn upon repayment.  Moody's does not rate the new
senior credit facilities.

Moody's notes that the acquisition is consistent with Yell's
stated strategy of growth through selective acquisitions in the
U.S.  Pro forma for the acquisition, Yell's U.S. revenues and
EBITDA will account for approximately 55% and 48% of total group
revenues and EBITDA, respectively.  The affirmation reflects
benefits from increased scale and geographic coverage.  Pro
forma for the acquisition, Yellow Book, Yell's U.S. subsidiary,
will be the fifth largest directories publisher in the U.S. with
pro forma annual revenues of approximately US$1.5 billion.
Geographic scope of Yellow Book and TWP are broadly
complementary and combined will cover a total of 45 states.

Yell has identified synergies of up to US$69 million per annum,
which it believes are achievable by 2008/2009.  However, Moody's
notes the cash drain over the next two years by additional
annual interest costs in excess of US$65 million, working
capital investments of approximately US$35 million per annum and
higher operating expenses of approximately US$20 million on an
ongoing basis.  Furthermore, Moody's notes the potential for
management to be stretched given the ongoing regulatory review
in the U.K. while integrating TWP.  Nevertheless, Moody's takes
comfort from the fact that Yell has demonstrated an ability to
successfully integrate large scale acquisitions while generating
revenue and margin uplift and costs savings.

The stable outlook reflects Moody's expectation that Yell will
return to its stated financial leverage profile of 3x to 4x
EBITDA over the next twelve months, that the U.S. operations
will continue to strengthen and that the company's U.K.
generated cash flows, which underpin the ratings, remain solid
in the face of increasing competition.  The Ba2 rating continues
to reflect the possibility of small bolt-on acquisitions, but
any additional debt-funded large acquisitions would put downward
pressure on the rating.  Any near term manifestation of negative
pressure from the ongoing review by the U.K. Competition
Commission could also result in downward pressure on the rating.
A transition to positive would result from cumulative
improvements in credit ratios, notably retained cash flow to
total debt in the high teens, as the company integrates TWP and
the US business continues to mature.

Completion of the acquisition is subject to Yell shareholder
approval and is subject to Hart Scott Rodino notification.

Yell, based in Reading, England is, through its indirectly
wholly owned subsidiary Yellow Pages U.K., the leading publisher
of classified directories in the U.K. and through its
subsidiary, Yellow Book, is a leading independent directories
publisher in the U.S.

CONTACT:  Moody's Investors Service Ltd.
          London
          Niel Bisset, Senior Vice President
          Corporate Finance Group

          London
          Amanda Neff, VP - Senior Credit Officer
          Corporate Finance Group

          For Journalists
          Phone: 44 20 7772 5456


ZEN WALLCOVERINGS: Names Milner Boardman Administrator
------------------------------------------------------
Colin Burke and Gary J. Corbett (IP Nos 8803, 9018) have been
appointed joint administrators for Zen Wallcoverings
(Properties) Limited.  The appointment was made May 12, 2005.

The company handles business and employers organizations.  Its
registered office is located at Britannia Mill, Cross Street,
Darwen, Lancashire BB3 2PN.

CONTACT:  MILNER BOARDMAN & PARTNERS
          Century House, Ashley Road,
          Hale, Cheshire WA15 9TG
          Phone: 0161 927 7788
          Fax: 0161 927 7733
          E-mail: info@milnerb.co.uk
          Web site: http://www.milnerboardman.co.uk


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders   Total    Working
                                   Equity      Assets   Capital
                        Ticker     (US$MM)    (US$MM)   (US$MM)
                        ------   -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                              (531)       1,471      129


BELGIUM
-------
City Hotels               CITY.BR     (7)         210      (15)
Real Software             REAL.BR   (202)         176      (17)
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)


DENMARK
-------
Elite Shipping                       (28)         101       19


FRANCE
------
Acces Industrie                      (32)         124      (63)
Arbel                     PA.ARB     (50)         213      (47)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Bull S.A.                 BULP.PA   (912)         902      (38)
Charbo De France                  (3,872)       4,738   (2,868)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256       21
Compagnies de
   Machines Bull                    (139)         137       (6)
Euro Computer System                (110)         682      377
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (68)         233       29
LVL Medical Group         LVLM.PA     (8)         149       (6)
Oeneo S.A.                SABT.PA    (12)         292       38
Pneumatiques Kleber S.A.             (34)         480      139
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
St Fiacre (FIN)                       (1)         111      (33)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Agor AG                   DOOG.BE     (8)         392     (126)
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG        (8)         111      N.A.
Glunz AG                  GLUG        (0)         428      (17)
Kamps AG                  KMPSF.PK   (93)       1,075      (61)
Kaufring AG               KAUG       (19)         151      (51)
Mannheimer AG                        (15)         879      N.A.
Marbert AG                MTBG       (13)         144      (50)
Nordsee AG                            (8)         195      (31)
Primacom AG               PRIG      (106)       1,264      (50)
Rinol AG                  RLIG       (25)         178      (53)
Schaltbau Hold            SLTG       (38)         150      (26)
Senator Entertainment
    AG                    SENGk.BE  (153)         126     (148)
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
VBH Holding AG            VBHG       (54)         337      (80)
Vivanco Gruppe                       (55)         131      (31)


GREECE
------
Delta Ice Cream                       (3)         183      (14)
DryShips Inc.             DRYS        (4)         184      (29)


ITALY
-----
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                       (31)         793     (248)
Gruppo Coin S.p.A.        GC        (111)         974      (97)
I Grandi Viaagi S.p.A.    IGV.MI     (31)         533     (140)
Lazio S.p.A.              LAZI       (27)         426     (175)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (16,510)       5,285     (332)
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)


LUXEMBOURG
----------
Oriflame Cosmetics S.A.   ORI.ST     (44)         378       97


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
Numico N.V.               NUMC      (422)       1,982      327
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Pan Fish ASA                         (24)         514      327
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Mostostal Zabrze          MECOF.PK    (6)         227     (366)


RUSSIA
------
Kamchatskenergo                     (107)         291   (7,319)
Zil Auto                            (147)         349   (9,974)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.                     (116)       1,283     (278)
Avanzit S.A.              AVZ.MC    (117)         457     (247)
Santana Motor S.A.                   (46)         223       41
Sniace S.A.                          (16)         136      (34)


SWITZERLAND
-----------
Kaba Holding AG           KABZN      (23)         582      260
Swisslog Holding-R        SLOG       (98)         354      151


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Anker PLC                 ANK.L      (22)         115       13
Avis Europe PLC           AVE.L      (34)       3,877     (606)
Bonded Coach
   Holiday Group Plc                  (6)         188      (44)
Blenheim Group                      (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Plc        BGY     (5,342)       3,438      229
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Center Parcs (UK)
    Group Plc             CQY        (77)         423     (227)
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST       (65)         396       (4)
Danka Bus System          DNK.L      (51)         585       82
Dawson Holdings           DWN.L      (19)         142      (33)
Dignity Plc               DTY.L     (148)         485      (89)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music
   Industries Group       EMI     (1,318)       3,472     (293)
Euromoney Institutional
   Investor Plc           ERM.L     (113)         236      (66)
Gallaher Group            GLH       (492)       6,304      116
Gartland Whalley                     (11)         145       (8)
Global Green Tech Group             (156)         408      (18)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV       (130)         997      (56)
Invensys PLC                        (559)       5,885      882
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L     (26)       1,176     (182)
Jessops Plc               JSP.L       (8)         297        7
Lambert Fenchurch Group               (1)       1,827        3
Lattice Group                     (1,290)      12,410   (1,228)
Leeds United              LDSUF.PK   (73)         144      (29)
M 2003 Plc                        (2,204)       7,205     (756)
Manchester City                      (17)         154      (21)
Misys Plc                 MSY       (334)         934       44
Mytravel Group            MT.L    (1,118)       2,551     (533)
Orange Plc                ORNGF     (594)       2,902        7
PD Ports Plc              PDP.L     (282)         361        0
Premier Foods Plc         PFD.L     (565)       1,105       34
Probus Estates Plc        PBE.L      (28)         113      (35)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,092)       3,245      (68)
Saatchi & Saatchi         SSI       (119)         705      (41)
Seton Healthcare                     (11)         157        0
SFI Group                           (108)         178     (162)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,361)
Virgin Mobile
   Holdings Plc           VMOB.L    (101)         278      (80)

Each Tuesday edition of the TCR-Europe contains a list of
companies with insolvent balance sheets based on the latest
publicly available balance sheet available to our editors at the
time of publication.  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.


                            *********


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.  Larri-Nil Veloso, Ma. Cristina Canson,
Liv Arcipe, Julybien Atadero and Jay Malaga, Editors.

Copyright 2005.  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$575 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.


                 * * * End of Transmission * * *