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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, June 7, 2005, Vol. 6, No. 111

                            Headlines

F R A N C E

ABELIA DECORS: Employees Cement Fate in Liquidation
EUROTUNNEL SA: Board Rift Threatens to Stymie Restructuring
LEGRAND HOLDING: Fitch Affirms Ratings at 'BB-/BB+'
SAVONNERIE BERNARD: Mulls Closure of Reze Site


G E R M A N Y

AUGUSTA TECHNOLOGIE: Names Daniel Wiest Supervisory Board Member
B&B BRAND: Creditors Claim Due This Week
BORUSSIA DORTMUND: Turkish Businessman Dangles EUR100 Mln Offer
COMET FILMTHEATERBETRIEBS: Declared Insolvent
INFINEON TECHNOLOGIES: Parts with Wearable Electronics Biz

LANXESS AG: Severing Ties with Troubled Fine Chemicals Unit
LUEGRO 10.: Creditors Meeting Set Early Next Month
MBI MITTELDEUTSCHE: Engineering Firm Files for Bankruptcy
MS SCHRODER: Syke Court Appoints Administrator
VOLKSWAGEN AG: Changchun Plant to Cut Cost by CNY3 Billion


I R E L A N D

ELAN CORP.: Shares Plunge on 4th Suspected PML Case


N O R W A Y

DNO ASA: Secures US$100 Million Bond Loan


R U S S I A

ATOM-STROY: Proofs of Claim Deadline Expires Today
AUTO-COLUMN 1747: Bankruptcy Hearing Resumes June 29
AUTO-TRANSPORT INDUSTRIAL: Succumbs to Bankruptcy
AVANGARD: To Hold Public Auction Tomorrow
BYKOVO: Airport Operator Falls into Insolvency

CONCERN IN-MASH: Undergoes Bankruptcy Supervision Procedure
HOME CREDIT: Proposed Loan Participation Notes Rated 'B-'
METROMEDIA INTERNATIONAL: To Restate 2004 Financial Reports
MURZITSKOYE: Proofs of Claims Deadline Expires Today
PRIGORODNOYE: Gives Creditors Until Next Month to File Claims

RUSSIAN BANK: Long-term Deposit Rating Raised to Ba1
SOROKINSKIY: Under Bankruptcy Supervision
TYUMEN-REM-SERVICE: Creditors' Claims Due Today


S W I T Z E R L A N D

ABB LTD.: U.S. Unit Has Until Next Week to File Amended Plan
SAIRGROUP: EUR142 Million Payment to LTU, LoMa Sustained
SAIRGROUP: Rules out Recovery of Loan to Air Littoral
SAIRGROUP: Writes off Restructuring Aid to AOM/Air Liberte
SAIRGROUP: Voids Potential Claim on Fokker 100 Aircraft Takeover

SAIRGROUP: Considers Pursuing Claims Against JTLC
SAIRGROUP: To Examine Contractual Claim Against Volare CEO
SAIRGROUP: To Pursue Claims Against Bar & Karrer Law Firm
SAIRGROUP: Rules out Claims Against Swissotel CEO
SAIRGROUP: To Review Possible Avoidance Action Against CSG, UBS

SAIRGROUP: Drops State Liability Claim
SAIRGROUP: Sells Avireal for CHF269 Million
SWISS INTERNATIONAL: AirTrust Mulls Squeeze-out Merger
SWISS INTERNATIONAL: Gets IOSA Registration Certificate


U K R A I N E

BOGATIR: Donetsk Court Opens Bankruptcy Proceedings
GLUHIV: Court Appoints Temporary Insolvency Manager
MIR: Names Mikola Yarkovenko Insolvency Manager
NEMSHYEVE' BIOCHEMICAL: Succumbs to Insolvency
ROMNAFTOPRODUCT: Court Freezes Debt Payments

STANICHNO-LUGANSKA MACHINE: Declared Insolvent
TOREZ' AUTO-TRANSPORT 11413: Insolvency Manager Takes over Helm
TREST GENICHESKAGROBUD: Under Bankruptcy Supervision
UKRZHILSTROJ: Court Orders Debt Moratorium
VUGLEDONTEHPOSTACHANNYA: Bankruptcy Supervision Starts


U N I T E D   K I N G D O M

AFONICS FIBREOPTICS: Appoints Baker Tilly Administrator
ALPHAFIELD LIMITED: Sets Creditors Meeting July 1
ARC RISK: Loss Widens Despite Brisk Sales
BRITISH NUCLEAR: 500 to Lose Jobs in Sellafield Restructuring
C. H. BEAVIS: Hires Portland Business as Administrator

CORUS GROUP: Loses Two Directors to Retirement
CREATURE SHOP: U.S. Owner Feels Pinch of Weak Dollar
DAWSON INTERNATIONAL: Chairman Defends GBP450,000 Windfall
DISHLEY EXHIBITIONS: Hires Administrators from Elwell Watchorn
EMPRESS HOMES: Liquidator to Present Final Report July

NORTHERN FOODS: Names New Finance Director
RENTOKIL INITIAL: Names Chief Financial Officer
RICHARD PORCH: Creditors Meeting Set Later this Month
SCOTTISH POWER: Potential Buyers Hover over
TALARIAN LIMITED: Hires Grant Thornton Liquidator

TELEWEST GLOBAL: Viacom Eyes Flextech's Cable Channels
VEDANTA RESOURCES: Issuing Final Dividend of US11.55
WM MORRISON: To Sell 12 Safeway Stores in Ireland

* Large Companies with Insolvent Balance Sheets


                            *********


===========
F R A N C E
===========


ABELIA DECORS: Employees Cement Fate in Liquidation
---------------------------------------------------
Wallpaper-maker Abelia Decors will be liquidated after employees
junked a proposed rescue plan, Les Echos says.

A commercial court gave Abelia in mid-March a two-and-half month
respite to recover from its financial problems.  The group
failed to attract investors despite gaining a vital deal in the
U.K.  Abelia blamed its demise to tough competition from water-
based paints and to the collapse of German parent VDN, which
owes it EUR6 million.

The group's liquidation is expected to dramatically affect the
operations of its Puteaux unit and ACR Logistics, which provided
transport for Abelia.  Abelia employs around 300 people and
books an annual turnover of EUR53 million.

CONTACT:  ABELIA DECORS S.A.
          95 R Du Chateau D'Eau Zi
          80100 Abbeville
          Phone: +33 322 20 11 00
          Fax: +33 322 20 11 20
          Web site: http://www.abelia.fr


EUROTUNNEL SA: Board Rift Threatens to Stymie Restructuring
-----------------------------------------------------------
Eurotunnel S.A.'s annual meeting next Friday promises to be
controversial as it could determine the fate of the firm.

Rivalry for the position of chairmanship is tight, and creditors
are opposed to either party's business plans.  The board is
pushing for Jacques Gounon to carry their position forward, but
he is expected to be challenged by French politician Nicolas
Miguet, who was instrumental in ousting the previous management.
Both are proposing deals that could force creditors to write off
as much as EUR5 billion (GBP2.75 billion) in debt.

Creditors think either party's proposals are unrealistic, making
support from shareholders unlikely.  Eurotunnel needed the
approval to start negotiations with creditors.  Without a
restructuring plan, it could be forced to bankruptcy in the near
term.  The firm already warned of a possible default on
contractual debt repayments from the first half of 2007.

Eurotunnel has debt of EUR9 billion.  It said it must trim down
the figure to EUR3.3 billion to be sustainable.  Its operating
profit last year of GBP171 million was hit by GBP298 million of
interest payments.

Eurotunnel manages the Channel Tunnel infrastructure. It runs a
fleet of shuttle trains and receives toll revenues from other
train operators including Eurostar.

CONTACT:  EUROTUNNEL S.A.
          Cheriton Park
          Cheriton High Street
          Folkestone
          Kent CT19 4QS
          United Kingdom
          Phone: +44-1303-288-750
          Fax: +44-1303-850-360
          Web site: http://www.eurotunnel.co.uk


LEGRAND HOLDING: Fitch Affirms Ratings at 'BB-/BB+'
---------------------------------------------------
Fitch Ratings affirmed Legrand Holding S.A.'s EUR350 million and
US$277.5 million senior notes at 'BB-'.  The agency has also
affirmed Legrand's Senior Unsecured rating at 'BB+' with a
Positive Outlook.

The ratings reflect Legrand's leading global market positions,
strong product portfolio and growing EBITDA margin.  During 2003
and 2004, Legrand focused on cash flow generation and reduced
net leverage to 3.1x at end-2004 from 4.7x at end-2002.  This
was achieved through a combination of operating efficiency
programs and improvement in working capital management.
However, the company has recently resumed an acquisitive
strategy with the announcements in late 2004 and early 2005 of
three small acquisitions of companies with combined revenues of
around EUR130 million.

The Positive Outlook reflects Legrand's improving operating
performance and decreasing financial leverage.  The Outlook is
based on Fitch's understanding that Legrand intends to continue
to reduce its financial debt and to fund any acquisitions from
cash flow.

The 'BB-' rating on the senior notes reflects Fitch's view of
the limited recovery potential for noteholders in a distress
scenario.  The senior notes are structurally subordinated and
rank behind the senior credit facilities, Yankee Bonds and trade
creditors of Legrand S.A.  The senior notes do not benefit from
any upstream guarantees from the operating company.  While the
level of senior debt ranking ahead of the notes has reduced
significantly since 2003, Fitch notes the ability of Legrand to
increase senior debt to fund acquisitions.

In December 2004, Legrand refinanced its EUR2.2 billion senior
credit facilities put in place in 2002 with EUR1.4 billion five-
year facilities consisting of a EUR700 million amortizing term
loan and a EUR700 million revolving credit facility.

Legrand is a leading worldwide manufacturer of low-voltage
electrical fittings and accessories.  In 2004, Legrand generated
net sales of EUR2,926 million, a 5.9% increase on 2003 (8.8%
increase excluding FX impact and changes in consolidation).
EBITDA of EUR630 million in 2004 was 9.7% ahead of 2003 as the
EBITDA margin increased to 21.5% from 20.8%.  The increase in
profitability was primarily a result of the increase in revenues
and the productivity improvements and operating efficiencies
noted above.  The improvement in operating performance continued
in Q1 2005 as Legrand reported a 4.8% year-on-year increase in
revenues and a 5.5% year-on-year increase in EBITDA.

CONTACT:  FITCH RATINGS
          Roger Coyle, London
          Phone: +44 (0) 20 7862 4105

          Elisabetta Zorzi, Milan
          Phone: +39 02 8790 87213

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


SAVONNERIE BERNARD: Mulls Closure of Reze Site
----------------------------------------------
The Reze site of perfume maker Savonnerie et Parfumerie Bernard
may close down after it filed for temporary receivership on May
25, 2005, Les Echos says.

Alain Bernard, chairman of Savonnerie, said sales have fallen in
the past two years.  While in receivership, the company plans to
focus on marketing the new Ma Provence concept, which requires a
drop in production at the Reze plant.  Savonnerie employs around
129 workers there.

CONTACT:  SAVONNERIE ET PARFUMERIE BERNARD
          1 rue des Chevaliers
          BP 2015
          44 406 Reze Cedex
          Phone: (33) 02 40 13 50 50
          Fax: (33) 02 40 05 47 06
          Web site: http://www.spbernard.com


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


AUGUSTA TECHNOLOGIE: Names Daniel Wiest Supervisory Board Member
----------------------------------------------------------------
Reinhard Klahr has resigned from the Supervisory Board of
AUGUSTA Technologie AG for importance reasons.  The Managing
Board has proposed the appointment of Dr. Daniel Wiest,
Diplom-Kaufmann, as Mr. Klahr's successor.

Wiest is CFO of APCOA Parking AG, Stuttgart, and has intense
experience in the management of holding companies, controlling
and finance.

The Managing Board

                            *   *   *

Augusta Technologie's EBITDA in Q1 2005 amounted to EUR3.6
million (Q1 2004: EUR0.1 million).

EBIT totaled EUR2.2 million (Q1 2004: -EUR1.2 million).
Overall, AUGUSTA recorded a profit for the period of EUR 0.3
million in Q1 2005 (loss for Q1 2004: EUR1.6 million) and a
profit per share of EUR0.03 (loss per share in Q1 2004:
EUR0.13).

The entry of the resolutions by the Extraordinary General
Meeting in the commercial register for the Company on April 29,
2005, paved the way after Q1 2005 for AUGUSTA to successfully
conclude its restructuring.

CONTACT:  AUGUSTA TECHNOLOGIE AG
          Wilhelm-Leuschner-Strasse 9-11, Frankfurt am Main
          Zip: D-60329
          Lena Trautmann, Investor Relations
          Phone: 0049-(0)69-242669-19
          Fax: 0049-(0)69-242669-40
          E-mail: trautmann@augusta-ag.de


B&B BRAND: Creditors Claim Due This Week
----------------------------------------
The district court of Muenchen opened bankruptcy proceedings
against B&B Brand- u. Bausanierung GmbH + Co. KG on May 2.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 10, 2005
to register their claims with court-appointed provisional
administrator Dr. Martin Prager.

Creditors and other interested parties are encouraged to attend
the meeting on July 11, 2005, 9:10 a.m. at Infanteriestr. 5,
Sitzungssaal 102 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:  B&B BRAND- U. BAUSANIERUNG GMBH + CO. KG
          Gewerbestr. 4 in 85652 Landsham

          Dr. Martin Prager, Administrator
          Barthstr. 16, 80339 Muenchen
          Phone: 089/8589633
          Fax: 089/85896350


BORUSSIA DORTMUND: Turkish Businessman Dangles EUR100 Mln Offer
---------------------------------------------------------------
Turkish businessman Sadettin Saran has offered EUR100 million to
acquire troubled football club Borussia Dortmund (BVB),
Turkishpress.com says.

Mr. Saran, who also holds EUR5 million worth of stake in BVB,
met with club officials during the European Champions League
final held in Istanbul, Turkey, according to daily Bild.  Mr.
Saran said he aimed to bring BVB back to the Super League.

BVB chairman Reinhard Raubal said they would review Mr. Saran's
offer and would announce a decision this week.  Aside from his
stake in BVB, Mr. Saran also has interests in textile retail,
real estate, weapon systems and helicopters in Germany.

BVB recently adjusted its 2004 loss forecast by 9.4% to EUR78.2
million from previous estimate of EUR68.8 million due to higher
cost in organizing matches.  The only publicly listed football
club in the country, BVB averted bankruptcy in March by buying
back a stake held by Molsiris, a division of Commerzbank that
bought the club's 95% stake in its Westfallen stadium.  In
exchange, Molsiris returned EUR52 million to Borussia and
reduced its annual rent and deferred the EUR15 million rent for
2005 and 2006.

CONTACT:  BORUSSIA DORTMUND GMBH & CO. KGAA
          Rheinlanddamm 207-209
          44137 Dortmund
          Phone: +49 (2 31) 9 02 00
          Web site: http://www.borussia-dortmund.de


COMET FILMTHEATERBETRIEBS: Declared Insolvent
---------------------------------------------
The district court of Monchengladbach opened bankruptcy
proceedings against Comet Filmtheaterbetriebs GmbH on May 9.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 13, 2005
to register their claims with court-appointed provisional
administrator Eberhard Stock.

Creditors and other interested parties are encouraged to attend
the meeting on July 4, 2005, 8:40 a.m. at the district court of
Monchengladbach, Hohenzollernstr. 157, 41061 Monchengladbach,
Erdgeschoss, Sitzungssaal A 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:  COMET FILMTHEATERBETRIEBS GMBH
          Viersener Str. 8
          41061 Monchengladbach
          Viersener Str. 8
          41061 Monchengladbach
          Phone: 02161 8144-0
          Fax: 02161 8144-222

          Hans-Juergen Brandtner, Administrator
          Eberhard Stock, Wilhelmshofallee 75, 47800 Krefeld


INFINEON TECHNOLOGIES: Parts with Wearable Electronics Biz
----------------------------------------------------------
Within the framework of a management buy out, Infineon
Technologies AG has turned over its activities in the area of
wearable electronics to the company Interactive Wear AG iG of
Wessling, Germany.  Infineon had conducted research on the
integration of electronic functions into textiles and developed
this technology to the point that it is ready for the market.
Nevertheless, it has discontinued these activities as part of
its strategic restructuring and concentration on its core
business.

As part of this MBO, which has now been completed, the rights to
Intellectual Property (IP), such as patents and licenses, now
belong to Interactive Wear, along with developmental hardware
and software and the existing customer base as well as the parts
inventory and the finished wearable electronics products.  The
parties involved have agreed not to make the purchase price
public.

"By spinning off its wearable electronics activities, Infineon
is following through on its strategy and is concentrating on its
core business," said Dominik Asam, Corporate Vice President for
Strategy, Investor Relations and Mergers & Acquisitions at
Infineon Technologies AG.

Infineon's former head of engineering for wearable electronics
and current CTO at Interactive Wear, Markus Strecker, is
participating in the MBO.  This specialist for sensor technology
played a substantial role in the efforts that turned research
results into marketable products.  The MBO is being supported by
former partner companies, consultants and industry insiders.
Andreas Ropert will assume the role of chief executive officer,
and Ms. Awa Garlinska will chair the supervisory board.  All the
people serving in Interactive Wear's management have been in
contact with Infineon (or with Siemens, before it spun off
Infineon) for many years or have served as executives in that
company.

Andreas Ropert, Interactive Wear's CEO, comments: "We are
delighted that the acquisition of Infineon's wearable
electronics activities went so smoothly.  We will now
concentrate our consulting, development, production, and sales
efforts fully on one business - wearable electronics.  Thanks to
the technological head start and network of partners that we
acquired from Infineon, and to the extremely positive market
appraisal from various analysts, who anticipate a market volume
of up to one billion U.S. dollars for technical textiles in
2008, we see excellent market opportunities and developmental
potential for our company."

In order to ensure continuity right from the start for all of
the wearable electronics activities, Dr. Stefan Jung, the former
head of Infineon's activities in this field, has been appointed
to Interactive Wear's supervisory board.  Furthermore,
Interactive Wear will employ additional members of Infineon's
technical team.

Interactive Wear's company headquarters are located in the
Application Center in the Technology Park in Oberpfaffenhofen
(Wessling), Germany, which is being subsidized by the State of
Bavaria as part of its 'high-tech offensive.'

The company's first official appearance will take place from
June 7 - 9, 2005 at the "Avantex 2005 - International Forum for
Innovative Apparel Textiles" trade show, which is organized by
Messe Frankfurt.  Interactive Wear can be found there at Hall 3,
Level 1, Walkway A, Stand 07.

About Interactive Wear AG iG

Interactive Wear AG iG is active in the integration of
electronic components and systems into textile products.  At its
disposal is one of the world's leading platforms for wearable
electronics technology.  The company has positioned itself as
both an electronics specialist for the textile industry and a
textile specialist for the electronics industry.  As a one-stop
shop with a solid claim to market leadership, Interactive Wear
covers all developmental and production phases in the "wearable
electronics" area -- from consulting to custom development
projects and all the way to the delivery of complete products
that are ready for volume sales.  For OEMs and ODMs, Interactive
Wear supplies tailored production solutions.  Besides fashion
trends, the target markets primarily include sportswear and
healthwear, safety clothing and protective workwear.  Further
information is available at http://www.interactive-wear.com

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor
and system solutions for automotive, industrial and multimarket
sectors, for applications in communication, as well as memory
products.  With a global presence, Infineon operates through its
subsidiaries in the U.S. from San Jose, CA, in the Asia-Pacific
region from Singapore and in Japan from Tokyo.  In fiscal year
2004 (ending September), the company achieved sales of EUR7.19
billion with about 35,600 employees worldwide.  Infineon is
listed on the DAX index of the Frankfurt Stock Exchange and on
the New York Stock Exchange (ticker symbol: IFX).  Further
information is available at http://www.infineon.com.

CONTACT:  INTERACTIVE WEAR AG IG
          Andreas Ropert
          Phone ++ 49 8153 / 281945
          E-mail: andreas.roepert@interactive-wear.com

          INFINEON TECHNOLOGIES AG
          P.O. Box 80 09 49
          D-81609 Muenchen
          Germany
          Phone: +49-89-234-29593
          Fax: +49-89-234-28482
          Reiner Schoenrock, Media Relations Contact
          E-mail: reiner.schoenrock@infineon.com

          Saswato Das
          U.S.A.
          Phone: +1-212-529 1789
          Fax: +1-212-529 1902
          E-mail: saswato.das@infineon.com

          Kaye Lim
          Asia
          Phone: +65-6840-0689
          Fax: +65-6840-0073
          E-mail: kaye.lim@infineon.com

          Hirotaka Shiroguchi
          Japan
          Phone: +81-3-5449-6795
          Fax: +81-3-5449-6401
          E-mail: hirotaka.shiroguchi@infineon.com

          Investors and Analysts based in Europe
          Phone: +49-89-234 26655
          E-mail: investor.relations@infineon.com

          Investors and Analysts based in North America
          Phone: +-1-408 501 6800
          E-mail: investor.relations@infineon.com


LANXESS AG: Severing Ties with Troubled Fine Chemicals Unit
-----------------------------------------------------------
Chemicals company LANXESS AG is realigning its Styrenic Resins
and Fine Chemicals business units.  An accord has been reached
with the employee representatives on a savings package for these
operations.

Plant consolidation and agreed reductions in personnel costs
should yield total annual savings of EUR100 million as of 2008.
The aim is to restructure both units and make them
internationally competitive.  The facilities of the Styrenic
Resins business unit in both Dormagen and Tarragona will be
retained.

In the Fine Chemicals business unit, several unprofitable
facilities will be closed down and others amalgamated.  This
business unit will be carved out to form a legally independent
subsidiary.  In Germany a total of 960 positions are to be
eliminated in a socially responsible manner.  The employment
pact for the German sites, which precludes dismissals for
operational reasons before the end of 2007, will be adhered to.

Details remain subject to negotiation.  The agreements necessary
for the planned measures to be implemented have yet to be
concluded.

A copy of the company's financial statements is available free
of charge at http://bankrupt.com/misc/LanxessAG(Q12005).pdf.

CONTACT:  LANXESS AG
          Building K10
          51369 Leverkusen
          Phone: +49-214 300
          Fax: +49-214 30 40 944
          E-mail: ir@lanxess.com
          Web site: http://www.lanxess.com


LUEGRO 10.: Creditors Meeting Set Early Next Month
--------------------------------------------------
The district court of Syke opened bankruptcy proceedings against
Luegro 10. Projektgesellschaft mbH & Co. KG on May 9.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until July 28, 2005
to register their claims with court-appointed provisional
administrator Dr. Juergen Sander.

Creditors and other interested parties are encouraged to attend
the meeting on July 7, 2005, 9:35 a.m. 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 on Sept. 8, 2005, 9:00 a.m. at the
district court of Syke, Saal 112, Nebenstelle, Hauptstr. 5A,
Syke.

CONTACT:  LUEGRO 10. PROJEKTGESELLSCHAFT MBH & CO. KG
          Bahnhofstrasse 6, 27239 Twistringen

          LUEGRO IMMOBILIEN- UND BETEILIGUNGSGESELLSCHAFT MBH
          Contact:
          Heinrich Luehrsen, Manager
          Rudolf Luehrsen, Manager

          Dr. Juergen Sander, Administrator
          An der Beeke 22, 28844 Weyhe


MBI MITTELDEUTSCHE: Engineering Firm Files for Bankruptcy
---------------------------------------------------------
The district court of Leipzig opened bankruptcy proceedings
against MBI Mitteldeutsche Bauservice- und Ingenieurgesellschaft
mbH on May 12.  Consequently, all pending proceedings against
the company have been automatically stayed.  Creditors have
until July 6, 2005 to register their claims with court-appointed
provisional administrator Dr. Lucas F. Flother.

Creditors and other interested parties are encouraged to attend
the meeting on Aug. 3, 2005, 11:00 a.m. at the district court of
Leipzig 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:  MBI MITTELDEUTSCHE BAUSERVICE- UND
          INGENIEURGESELLSCHAFT MBH
          Kochstr. 51, 04275 Leipzig
          Contact:
          Michael Seifert, Manager

          Dr. Lucas F. Flother, Administrator
          Nikolaistrasse 3-5, 04109 Leipzig


MS SCHRODER: Syke Court Appoints Administrator
----------------------------------------------
The district court of Syke opened bankruptcy proceedings against
MS Schroder Bau GmbH on May 11.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until Aug. 11, 2005 to register their claims with
court-appointed provisional administrator Dr. Christian Willmer.

Creditors and other interested parties are encouraged to attend
the meeting on June 23, 2005, 10:35 a.m. 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 on Sept. 15,2 005, 10:30 a.m. at the
district court of Syke, Saal 112, Nebenstelle, Hauptstr. 5 A,
Syke.

CONTACT:  MS SCHRODER BAU GMBH
          Verdener Landstrasse 167, 31582 Nienburg/Weser
          Contact:
          Angelika Schroder, Manager

          Dr. Christian Willmer, Administrator
          Georgstrasse 5, D-27283 Verden


VOLKSWAGEN AG: Changchun Plant to Cut Cost by CNY3 Billion
----------------------------------------------------------
First Auto Works-Volkswagen, one of Volkswagen AG's two major
joint ventures in China, targets a CNY3 billion cost reduction
in 2005, said the South China Morning Post Monday.

Spokeswoman Ji Yongliang reportedly disclosed the Changchun
plant aims at increasing productivity, the level of local
content and outsourcing as part of its emergency "survival
plan."

The report came after Volkswagen revealed plans to increase
annual production capacity in China to 900,000 units from
648,490 last year.  This is reportedly in keeping with the goal
of CEO Bern Pischetrieder to top last year's EUR2.015 billion
full-year operating profit.

The joint venture, which posted a CNY400 million loss in the
first quarter of 2005, plans to trim expenses on parts and
components by CNY2.8 billion.  By using domestic parts, the
business expects local content to increase from 60 percent to 80
percent.

To enhance productivity, workers will have two shifts, instead
of three, with an individual quota of 29.2 units a year in 2005,
and increasing to 37.2 by 2009.

The business, which carries the Audi brands and Volkswagen's
Golf, Bora and Jetta cars, also eyes an output of one Jetta in
30 hours, from the current 35 to 38 hours.

The "survival plan" will also see the firm signing service
companies to provide meals for workers and handle logistics.

Along with Shanghai Auto Industry Corp., the Changchun plant
sold a total of 16,000 units in the first quarter, 20% lower
than last year's sales figure.

Volkswagen's automotive business recently posted a EUR107
million net loss, blamed on the delay in the launch of the
new Golf, Jetta and Passat models.  It also faulted the
strong euro and the ongoing price reduction in the U.S. and
Europe to boost sales.

CONTACT:  VOLKSWAGEN AG
          Brieffach 1848-2
          38436 Wolfsburg, Germany
          Phone: +49 53 61 90
          Fax:   +49 53 61 92 82 82
          Web site: http://www.volkswagen.de


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


ELAN CORP.: Shares Plunge on 4th Suspected PML Case
---------------------------------------------------
A fourth suspected case of PML in a former Tysabri patient has
reportedly dragged down both Elan Corp. and Biogen Idec Inc.

According to MarketWatch, shares of Elan dropped 14% to US$6.85,
while Biogen shares plunged 4% closing at US$38.07 by the end of
trade Thursday.

Last month, Elan's shares rose on the drug's growing chances of
returning to the market due to patients' and healthcare
companies' demands.  At the company's annual meeting, Chief
Executive Officer Kelly Martin expressed confidence Tysabri
would be back in some capacity.

On Thursday morning, the Boston Globe revealed documents from
the Food and Drug Administration, noting a fourth suspected case
of PML.  The newspaper added all four PML patients had died.

The two companies pulled out Tysabri from the U.S. market and
all ongoing clinical trials in February, following reports
the drug triggered progressive multifocal leukoencephalopathy
(PML), a rare and frequently fatal, demyelinating disease of the
central nervous system.

FDA confirmed the report of a fourth possible PML case, but
along with Biogen it disclosed the patient was still alive.
Biogen also said only two of the earlier patients died, while
the third had survived.

The two companies' safety evaluation concerning Tysabri and any
possible link to PML is ongoing, the results of which are
expected to be out by summer.  Biogen, which earlier stressed
more PML cases could emerge, mulls consulting with FDA over
Tysabri's return following the review.

Meanwhile, some analysts are positive of the drug's chances of
being re-initiated in clinical trials and released in the market
again, as Boston Globe also linked the fourth PML case to
another Biogen drug, Avonex.  The drug, when combined with
Tysabri, is said to lower immunity further against the disease,
prompting analysts to suspect Tysabri could be use as
monotherapy.

CONTACT:  ELAN CORPORATION PLC
          Lincoln House
          Lincoln Place
          Dublin2
          Ireland
          Phone: +353 1 709 4000
          Fax: +353 1 709 4108
          Web site: http://www.elan.com

          BIOGEN IDEC INC.
          14 Cambridge Center
          Cambridge, MA 02142
          Phone: 617-679-2000
          Fax: 617-679-2617
          Web site: http://www.biogenidec.com


===========
N O R W A Y
===========


DNO ASA: Secures US$100 Million Bond Loan
-----------------------------------------
On June 3, DNO A.S.A. signed a loan agreement for a new bond
loan facility in an amount up to US$100 million.  The new
facility (FRN DNO A.S.A. Open Bond Issue 2005/2012 with Call,
ISIN NO 001 027052.3) has been signed with Norsk Tillitsmann
A.S.A. as trustee for the bondholders.

The bond loan facility is structured as a senior unsecured USD
loan, with seven years maturity and floating interest rate based
on three months Libor + 3.5%.  The initial issue under the loan
facility is for an amount of US$60 million, with funding on June
6, 2005.  The loan is issued at par (100%).  DNO has a call
option after three years at 103%.

DNO has applied for listing of the new bond loan on the Oslo
Stock Exchange.  Loan documentation will be presented at
http://www.dno.no.

Proceeds from the new bond loan will secure long-term financing
of investments in exploration and development of DNO's extensive
portfolio of petroleum licenses, as well as refinancing of
short-term debt.  The new USD-based loan will also reduce
foreign currency risk exposure related to DNO's balance sheet
and revenues.

Mandated arrangers of the bond loan facility are Fearnley Fonds
A.S.A. and Straumur Investment Bank in Iceland.  The initial
issue has been sold to investors in Iceland, Norway and the U.K.

CONTACT:  DNO A.S.A.
          Helge Eide, Managing Director
          Haakon Sandborg, Chief Financial Officer
          Phone: (47) 55 22 47 00 / (47) 23 23 84 80
          Web site: http://www.dno.no


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


ATOM-STROY: Proofs of Claim Deadline Expires Today
--------------------------------------------------
The Arbitration Court of Krasnoyarsk region commenced bankruptcy
proceedings against Atom-Stroy after finding the limited
liability company insolvent.  The case is docketed as A33-
3936/2005.  Mr. A. Kulesh has been appointed insolvency manager.
Creditors have until June 7, 2005 to submit their proofs of
claim to 662970, Russia, Krasnoyarsk region, Zheleznogorsk,
Krupskoy Str. 5, Apartment 24.

CONTACT:  ATOM-STROY
          662970, Russia, Krasnoyarsk region,
          Zheleznogorsk, Shtefana Str. 1

          Mr. A. Kulesh
          Insolvency Manager
          662970, Russia, Krasnoyarsk region,
          Zheleznogorsk, Krupskoy Str. 5, Apartment 24


AUTO-COLUMN 1747: Bankruptcy Hearing Resumes June 29
----------------------------------------------------
The Arbitration Court of Voronezh region has commenced
bankruptcy supervision procedure on open joint stock company
Auto-Column 1747.  The case is docketed as A14-1618/2005-5/16b.
Mr. V. Volodin has been appointed temporary insolvency manager.

Creditors may send their proofs of claim to 394055, Russia,
Voronezh, Konno-Streletskaya Str. 45.  A hearing will take place
on June 29, 2005, 10:00 a.m. at the Arbitration Court of
Voronezh region located at Russia, Voronezh, Srednemoskovskaya
Str. 77, Room 302.

CONTACT:  AUTO-COLUMN 1747
          394038, Russia, Voronezh region,
          Kosmonavtov Str. 6

          Mr. V. Volodin
          Temporary Insolvency Manager
          394055, Russia, Voronezh region,
          Konno-Streletskaya Str. 45


AUTO-TRANSPORT INDUSTRIAL: Succumbs to Bankruptcy
-------------------------------------------------
The Arbitration Court of Krasnoyarsk region commenced bankruptcy
proceedings against Auto-Transport Industrial Corporation after
finding the open joint stock company insolvent.  The case is
docketed as A33-31705/04-S4.  Mr. A. Zyatkov has been appointed
insolvency manager.

CONTACT:  AUTO-TRANSPORT INDUSTRIAL CORPORATION
          662313, Russia, Krasnoyarsk region,
          Sharypovo, Ashpyl, Dorozhnaya Str. 8

          Mr. A. Zyatkov
          Insolvency Manager
          660049, Russia, Krasnoyarsk region,
          Mira Pr. 36, Rooms 407, 422


AVANGARD: To Hold Public Auction Tomorrow
-----------------------------------------
The insolvency manager of close joint stock company Avangard
will sell its property on June 8, 2005, 11:00 a.m.  The public
auction will take place at Russia, Stavropol, Lermontova Str.
343, Office 4.  Up for sale are different buildings and
equipment.  Starting price: RUB1,457,292.  The list of
documentary requirements is available at Russia, Stavropol,
Lermontova Str. 343, Office 4.

CONTACT:  AVANGARD
          Russia, Stavropol region,
          Svetlograd, Prom.Zone

          Insolvency Manager
          Russia, Stavropol region,
          Lermontova Str. 343, Office 4
          Phone: (8652) 37-16-93, 37-16-92


BYKOVO: Airport Operator Falls into Insolvency
----------------------------------------------
The Arbitration Court of Moscow region commenced bankruptcy
proceedings against Bykovo after finding the airport operator
insolvent.  The case is docketed as A41-K2-15450/04.  Mr. A.
Amelyakin has been appointed insolvency manager.  Creditors may
submit their proofs of claim to 119415, Russia, Moscow, Post
User Box 103.

CONTACT:  BYKOVO
          140150, Russia, Moscow region, Ramenskiy region,
          Bykovo, Sovetskaya Str. 19

          Mr. A. Amelyakin
          Insolvency Manager
          119415, Russia, Moscow region,
          Post User Box 103


CONCERN IN-MASH: Undergoes Bankruptcy Supervision Procedure
-----------------------------------------------------------
The Arbitration Court of Bashkortostan republic has commenced
bankruptcy supervision procedure on open joint stock company
Concern In-Mash.  The case is docketed as A07/7412/05-G-MOG.
Mr. R. Shuvarov has been appointed temporary insolvency manager.

Creditors have until June 17, 2005 to send their proofs of claim
to 453130, Russia, Bashkortostan republic, Sterlitamak, Gogolya
Str. 122.   A hearing will take place on July 28, 2005, 2:00
p.m.

CONTACT:  CONCERN IN-MASH
          453130, Russia, Bashkortostan republic,
          Sterlitamak, Gogolya Str. 122

          Mr. R. Shuvarov
          Temporary Insolvency Manager
          453130, Russia, Bashkortostan republic,
          Sterlitamak, Gogolya Str. 122
          Phone/Fax: (3473) 26-65-00


HOME CREDIT: Proposed Loan Participation Notes Rated 'B-'
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' senior
unsecured debt rating -- based on draft issue documentation --
to the proposed Loan Participation Notes to be issued by, but
with a limited recourse to, Eurasia Capital S.A. (not rated) for
the sole purpose of funding a loan to Russia-based Home Credit
and Finance Bank LLC (HCFB; B-/Stable/C).  The amount and the
tenor of the notes will be specified at placement.

The credit risk of the Loan Participation Notes wholly reflects
the counterparty credit ratings on HCFB.

"The ratings on HCFB are constrained by the bank's short track
record in the undeveloped and high-risk, but fast growing,
consumer finance market in Russia," said Standard & Poor's
credit analyst Irina Penkina.  In addition, the bank has a
relatively low, albeit improving, profitability and a lack of
funding diversification.  Positive rating factors include a
supportive owner (Czech Republic-based PPF Group; not rated),
which has provided financial assistance and technical expertise.
"In addition, HCFB currently benefits from satisfactory
capitalization and good macroeconomic prospects in Russia,"
added Ms. Penkina.

With US$926 million in assets and US$108 million in reported
equity at March 31, 2005 (under International Financial
Reporting Standards), HCFB is a relatively small financial
institution focused on providing point-of-sale (POS) lending and
revolving credit facilities to the Russian mass retail market.
HCFB has a short track record, having started operations in
2002; nevertheless, via its fast-growing regional distribution
network, HCFB already holds a sizeable share in POS lending in
Russia.

Ratings information is available to subscribers of RatingsDirect
at http://www.ratingsdirect.com. It can also be found at
http://www.standardandpoors.com. Alternatively, call one of the
following Standard & Poor's numbers: London Ratings Desk (44)
20-7176-7400; London Press Office Hotline (44) 20-7176-3605;
Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm
(46) 8-440-5916; or Moscow (7) 095-783-4017.  Members of the
media may also contact the European Press Office via e-mail:
media_europe@standardandpoors.com

CONTACT:  STANDARD AND POOR'S RATINGS SERVICES
          Group E-mail Address
          FIG_Europe@standardandpoors.com


METROMEDIA INTERNATIONAL: To Restate 2004 Financial Reports
-----------------------------------------------------------
Metromedia International Group, Inc. determined that it would
restate certain reports made previously on Form 10-K and Form
10-Q to reflect corrections of past accounting errors.

The decision was made in consultation with both KPMG Limited
(the Russian member firm of KPMG International), the Company's
current independent auditor, and KPMG LLP (the U.S. member firm
of KPMG International), the Company's independent auditor prior
to July 9, 2004.

Accordingly, the financial statements contained in the Company's
periodic reports previously filed with the United States
Securities and Exchange Commission and the previously announced
unaudited financial results for the year and quarter ended
December 31, 2004 should no longer be relied upon.

These required adjustments do not have any impact on earnings
per share from continuing operations, cash flow, current assets
and liabilities; or the Company's actual ownership interest in
business ventures as originally stated; and the Company believes
that these adjustments do not affect the actual value of the
Company's past and present ownership interest in PeterStar or
Magticom.

Preparation of the restated financial statements will further
delay the Company's filing with the U.S. SEC of its Annual
Report on Form 10-K for the fiscal year ended December 31, 2004
(Current Annual Report), its Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 2005 (Current Quarterly
Report) and the preliminary proxy statement (Proxy Statement) to
provide the necessary information in respect of, and to solicit
the necessary stockholder vote in favor of, the previously
announced proposed sale of PeterStar.

The Company cannot at this time provide any further guidance as
to when the restated financial statements, the annual audited
financial statements for fiscal year 2004 and the first quarter
2005 unaudited financial statements will be completed or when
the Current Annual Report, the Current Quarterly Report, the
Proxy Statement or amended historical periodic reports will be
filed with the U.S. SEC.  A summary of significant items that
the Company has currently determined to represent accounting
errors, which it will address in the Current Annual Report, the
Current Quarterly Report and any amended historical periodic
reports is as:

(a) Historical Error in Accounting - Accounting for Investment
    in Telcell Wireless, LLC:

The Company determined that its historic accounting treatment
for its 70.41% membership interest in Telcell Wireless LLC, an
intermediate holding company, is incorrect.  Telcell was formed
in January 1996 for the purpose of holding the Company's
interest in Magticom Ltd. (a wireless telephony operator
centered in Tbilisi, Georgia, and currently has a 49% ownership
interest in Magticom and no other assets or liabilities.

The Company has now determined that its use of the consolidation
method of accounting, since 1996, is not appropriate for its
ownership interest in Telcell and that it should have followed
the equity method of accounting.  The net effect of this error
in accounting are:

     (i) the error in accounting resulted in an overstatement of
         US$10.3 million in each of the following line items
         identified within the Company's consolidated balance
         sheet as of December 31, 2003: "Investment in and
         advances to business ventures", "Total long-term
         assets", "Total assets", "Minority interest" and "Total
         liabilities and stockholders' deficiency";

    (ii) the error in accounting resulted in an overstatement in
         each of the following line items identified within the
         Company's consolidated statement of operations for the
         year ended December 31, 2003: "Equity in income of and
         write-downs of investments in unconsolidated investees"
         by $4.4 million; "Minority interest" by $4.3 million;
         and "Selling, general and administrative expense" by
         $0.1 million; and

   (iii) the error in accounting resulted in an understatement
         in the "Equity in loss of and write-downs of
         investments in unconsolidated investees" line item by
         $1.7 million; and an overstatement of the "Minority
         interest" line item by $1.7 million within the
         Company's consolidated statement of operations for the
         year ended December 31, 2002.

(b) Historical Error in Accounting - Depreciation of fixed
    assets at business ventures that were treated as
    discontinued components:

On September 30, 2003, the Board of Directors formally approved
management's plan to dispose of all remaining non-core media
business ventures of the Company, and the Company concluded that
such business ventures met the criteria for classification as
discontinued business components, as outlined in SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets"
("SFAS No. 144").  As a result, these business ventures were
presented as discontinued business components within the
Company's consolidated financial statements in accounting
periods subsequent to third quarter 2003; However, the Company
continued to recognize depreciation and amortization expense of
its long-lived assets at these business ventures, up through the
first quarter of 2004.  The net effect of this error in
accounting are:

     (i) the error in accounting resulted in an understatement
         of "Income from discontinued components, net" by US$1.0
         million within the Company's fourth quarter 2003
         consolidated statement of operations, which resulted in
         an increase in "Net loss attributable to common
         stockholders of US$1.0 million or US$0.01 per common
         share;

    (ii) the error in accounting resulted in an understatement
         of "Income from discontinued components, net" by US$0.2
         million within the Company's first quarter 2004
         consolidated statement of operations, which resulted in
         an increase in "Net loss attributable to common
         stockholders of $0.2 million or $0.00 per common share;
         and

   (iii) the error in accounting resulted in an overstatement of
         "Income from discontinued components, net" by $1.2
         million within the Company's third quarter 2004
         consolidated statement of operations, which resulted in
         a decrease in "Net loss attributable to common
         stockholders of $1.2 million or $0.01 per common share.

The Company could identify additional transactions requiring
adjustments to prior-year financial statements.

As previously announced by the Company, the trustee of the
Company's outstanding $152.0 million 10 1/2 % Senior Notes Due
2007 issued a notice that the Company's failure to deliver its
Form 10-K to the trustee is a default under the indenture
governing these Senior Notes and that the Company must deliver
its Form 10-K, and certain other annual certificates as required
under the Indenture, to the trustee no later than June 3, 2005,
the sixtieth day following the receipt of the trustee's notice,
in order to avoid an event of default on the Senior Notes.  The
Company has now concluded that it will be unable to deliver its
Form 10-K and the Certificates to the trustee on or prior to
June 3, 2005 and therefore an event of default will occur.  Upon
the occurrence of an event of default, the trustee or holders of
at least 25% of the aggregate principal amount of the Senior
Notes outstanding can declare all Senior Notes to be due and
payable immediately.  If this were to happen, the Company would
not have sufficient corporate cash available to meet this
obligation.

The Company and the holder of in excess of 80% of the aggregate
outstanding principal amount of the Senior Notes have reached an
agreement in principle, subject to preparation and execution of
definitive documentation, in respect of a waiver to prevent the
occurrence of an event of default under the Senior Notes as a
result the foregoing through July 15, 2005.  No event of default
in respect of the foregoing will exist during the period of the
waiver and the Senior Notes cannot be declared due and payable
immediately based on the foregoing during such period.

The purchasers in the previously announced agreement concerning
sale of the Company's ownership interest in PeterStar have the
right to terminate the sale agreement, if the closing of the
sale does not occur on or before September 30, 2005.  One of the
conditions to closing the sale is an affirmative vote by holders
of a majority of the Company's stockholders in favor of the
sale.  Unless and until the Company files its Form 10-K and is
otherwise current in filing its required periodic U.S. SEC
filings, the Company will not be able to finalize and mail a
proxy statement to its stockholders to provide information
about, and to solicit the necessary vote in favor of, the
proposed sale transaction.  Given the delay associated with the
restatement of historical financial statements, it may not be
possible to complete these actions prior to September 30, 2005.

Consequently, the Company and purchaser have agreed in principle
to extend the date, currently September 30, 2005, after which
the sale agreement can be terminated, to a date not earlier than
December 31, 2005.  The Company remains committed to
recommending the PeterStar sale to its shareholders and
presenting this transaction for a vote by the shareholders at
the earliest possible date.

About Metromedia International Group

Through its wholly owned subsidiaries, the Company [MIG;
currently traded as: (PINK SHEETS: MTRM)-Common Stock and (PINK
SHEETS: MTRMP)]-Preferred Stock owns interests in communications
businesses in the countries of Russia and Georgia.  Since the
first quarter of 2003, the Company has focused its principal
attentions on the continued development of its core telephony
businesses, and has substantially completed a program of gradual
divestiture of its non-core cable television and radio broadcast
businesses.  The Company's core telephony businesses include
PeterStar, the leading competitive local exchange carrier in St.
Petersburg, Russia, and Magticom, Ltd., the leading mobile
telephony operator in Tbilisi, Georgia.

CONTACT:  METROMEDIA INTERNATIONAL GROUP, INC.
          Ernie Pyle
          Phone: 704-321-7380
          E-mail: investorrelations@mmgroup.com
          Web site: http://www.metromedia-group.com


MURZITSKOYE: Proofs of Claims Deadline Expires Today
----------------------------------------------------
The Arbitration Court of Nizhniy Novgorod region commenced
bankruptcy proceedings against Murzitskoye after finding the
grain receiving enterprise insolvent.  The case is docketed as
A43-6284/05-18-222.  Mr. I. Kuznetsov has been appointed
insolvency manager.  Creditors have until June 7, 2005 to submit
their proofs of claim to 603138, Russia, Nizhniy Novgorod, Post
User Box 108.  A hearing will take place on Sept. 6, 2005, 2:00
p.m.

CONTACT:  MURZITSKOYE
          Russia, Nizhniy Novgorod region,
          Sechenovskiy region, Murzitsy

          Mr. I. Kuznetsov
          Insolvency Manager
          603138, Russia, Nizhniy Novgorod,
          Post User Box 108


PRIGORODNOYE: Gives Creditors Until Next Month to File Claims
-------------------------------------------------------------
The Arbitration Court of Tyumen region commenced bankruptcy
proceedings against Prigorodnoye (TIN 7215007810, OGRN
1027201593033) after finding the close joint stock company
insolvent.  The case is docketed as A-70-10172/3-2004.  Mr. S.
Pshonko has been appointed insolvency manager.  Creditors have
until July 7, 2005 to submit their proofs of claim to 625000,
Russia, Tyumen, Gertsena Str. 78, Office 313.

CONTACT:  PRIGORODNOYE
          Russia, Tyumen region,
          Zavodoukovsk, Timiryazeva Str. 5

          Mr. S. Pshonko
          Insolvency Manager
          625000, Russia, Tyumen region,
          Gertsena Str. 78, Office 313


RUSSIAN BANK: Long-term Deposit Rating Raised to Ba1
----------------------------------------------------
Moody's Investors Service has raised the long-term deposit
rating of Russian Bank for Development (RBD) to Ba1 from Ba3,
placing it at the same level as other rated state-owned banks in
Russia.  The outlook for the rating is positive, in line with
Moody's outlook on the intrinsic ability of the Russian
government to provide support.  The rating is not constrained by
the country ceiling for foreign currency bank deposits, but may
follow a potential future upward movement of the ceiling if
Moody's sees the bank's systemic importance growing closer to
that of larger state-owned banks in Russia.  This rating action
does not affect either the bank's Not-Prime short-term deposit
rating or its financial strength rating of E+ (stable outlook).

According to Moody's, the upgrade incorporates an increased
likelihood of support for the bank from the Russian authorities
in the event of need, reflecting the government's more
interventionist stance towards the economy.  It also
incorporates a general consensus among government bodies with
regard to the need of a development bank as an instrument of the
state industrial policy, and the increased ability of the
authorities to support RBD in extremis.  However, as RBD's
overall importance to both the banking system and the economy is
still significantly lower than that of the larger state-owned
banks such as Sberbank, Vneshtorgbank and Vnesheconombank, its
future rating moves are likely to depend on its ability to play
a more prominent role within the banking system, as well as on
its intrinsic strength and franchise development.

Russian Bank for Development is headquartered in Moscow, Russia,
and reported total assets of US$316 million and capital of
US$212 million under US GAAP at 31 December 2004.

CONTACT:  MOODY'S INVESTORS SERVICE CYPRUS LIMITED
          Limassol
          Adel Satel, Managing Director
          Financial Institutions Group

          Limassol
          Andrey Naumenko, Vice President - Senior Analyst
          Financial Institutions Group

          For Journalists
          Phone: 44 20 7772 5456


SOROKINSKIY: Under Bankruptcy Supervision
-----------------------------------------
The Arbitration Court of Ivanovo region has commenced bankruptcy
supervision procedure on limited liability company Sorokinskiy.
The case is docketed as A17-1246/05-10-B.  Ms. E. Pukhova has
been appointed temporary insolvency manager.  Creditors may
submit their proofs of claim to 153034, Russia, Ivanovo,
Karyernaya Str. 2-22.  A hearing will take place on Sept. 19,
2005, 1:00 p.m.

CONTACT:  SOROKINSKIY
          Russia, Ivanovo region,
          Bolshoye Sorokino

          Ms. E. Pukhova
          Temporary Insolvency Manager
          153034, Russia, Ivanovo region,
          Karyernaya Str. 2-22


TYUMEN-REM-SERVICE: Creditors' Claims Due Today
-----------------------------------------------
The Arbitration Court of Tyumen region commenced bankruptcy
proceedings against Tyumen-Rem-Service after finding the open
joint stock company insolvent.  The case is docketed as A-70-
1457/3-2005.  Mr. S. Pshonko has been appointed insolvency
manager.  Creditors have until June 7, 2005 to submit their
proofs of claim to 625000, Russia, Tyumen region, Gertsena Str.
78, Office 313.

CONTACT:  TYUMEN-REM-SERVICE
          Russia, Tyumen region,
          Chekistov Str. 42

          Mr. S. Pshonko
          Insolvency Manager
          625000, Russia, Tyumen region,
          Gertsena Str. 78, Office 313


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


ABB LTD.: U.S. Unit Has Until Next Week to File Amended Plan
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
Combustion Engineering, Inc., until June 13, 2005, to file an
amended plan of reorganization and accompanying disclosure
statement.

Previously, the Honorable Judith K. Fitzgerald approved CE's
prepackaged Disclosure Statement and said she will recommend
confirmation of the Plan if CE can demonstrate that direct
creditors of Basic, Incorporated and ABB Lummus Global, Inc.,
received adequate notice about the proceedings and plan-related
injunctions and releases other than by general publication.

The rejected Plan aimed to extinguish ABB Ltd.'s asbestos-
related liabilities.

Because the Plan compromised asbestos-related personal injury
claims, approval from the District Court was required before it
can be confirmed.  CE got that approval from District Court
Judge Alfred M. Wolin.

However, plan confirmation was halted when the United States
Court of Appeals for the Third Circuit rejected the prepackaged
chapter 11 plan.

The Third Circuit rejected the Debtor's appeal based on three
principal issues:

First, on the facts in Combustion Engineering's case, the
petitioners questioned whether the Bankruptcy Court has "related
to" jurisdiction over the derivative and non-derivative claims
against the non-debtors Basic and Lummus.  The Third Circuit
said the factual findings in the Bankruptcy Court were
insufficient.

The Third Circuit vacated the Sec. 105 injunction in favor of
Basic and Lummus.

Second, the appellants opposing the Combustion Engineering plan
asked the Third Circuit whether a non-debtor that contributes
assets to a post-confirmation trust can take advantage of Sec.
105 of the Bankruptcy Code to cleanse itself of non-derivative
asbestos liability.  No, the Third Circuit said, a Sec. 105
channeling injunction can't extend to nonderivative third-party
actions against a debtor's non-debtor friends.

Third, the petitioners asked the Third Circuit to look at the
two-trust structure and use of "stub claims" in the voting
process -- which allowed certain asbestos claimants who were
paid as much as 95% of their claims prepetition to vote to
confirm a Plan under which they appear to receive a larger
recovery than other asbestos claimants -- and decide whether
that scheme is permitted under the Bankruptcy Code.  The Third
Circuit said the scheme may violate the Bankruptcy Code and the
"equality among creditors" principle that underlies it.  The
Third Circuit remanded this issue to the District Court for
further development and review in considering any revised
reorganization proposal.

                     The Chapter 11 Filing

ABB Ltd.'s U.S. subsidiary, Combustion Engineering, Inc., filed
for chapter 11 protection on February 17, 2003, and delivered
its prepackaged plan to the U.S. Bankruptcy Court for the
District of Delaware that day to halt and resolve the tide of
asbestos-related  personal injury suits brought against the
companies.  Over the dozen years prior to the chapter 11 filing
-- according to information obtained from
http://www.LitigationDataSource.com-- the number of claims
against Combustion Engineering, its affiliates, ABB and former
joint venture partners, skyrocketed:

     Year   Asbestos Claims Asserted Against CE
     ----   -----------------------------------
     1990   18,891 .
     1991   19,000 .
     1992   20,000 +
     1993   21,000 +
     1994   22,000 ++
     1995   23,842 +++
     1996   27,577 ++++++
     1997   28,976 +++++++
     1998   28,264 ++++++
     1999   33,961 ++++++++++
     2000   39,138 +++++++++++++
     2001   54,569 ++++++++++++++++++++++++
     2002   79,204 ++++++++++++++++++++++++++++++++++++++++

CE is named a defendant in cases pending in multiple
jurisdictions, with plaintiffs alleging injury as a result of
exposure to asbestos in products manufactured or sold by CE or
that was contained in materials used in CE's construction or
maintenance projects.

               Combustion Engineering's History

Combustion Engineering was formed in Delaware in 1912 as
The Locomotive Superheater Co. and manufactured and sold
superheaters for steam locomotives.  From the 1930s forward,
CE's core business is designing, selling and erecting power-
generating facilities, including major steam generators.  CE
also services large steam boilers and related electrical power
generating equipment.  From the 1930s through the 1960s,
asbestos insulation was used on many CE boilers.

                    Bankruptcy Professionals

Jeffrey N. Rich, Esq., at Kirkpatrick & Lockhart LLP, and Laura
Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub, P.C., represent Combustion Engineering.

The Blackstone Group, L.P., provides CE with financial advisory
services.

David M. Bernick, Esq., at Kirkland & Ellis, provides legal
advice to ABB.

The CE Settlement Trust, holding the largest unsecured claim
against CE's estate, is represented by Hasbrouck Haynes, Jr.
CPA, at Haynes Downard Andra & Jones LLP.

CONTACT:  ABB LTD.
          Affolternstrasse 44
          8050 Zurich, Switzerland
          Phone: +41 43 317 7111
          Fax:   +41 43 317 4420
          Web site: http://www.abb.com


SAIRGROUP: EUR142 Million Payment to LTU, LoMa Sustained
--------------------------------------------------------
Circular No. 5

Ladies and Gentlemen

In this letter we will be updating you on the matters of
avoidance claims state liability and Avireal AG.

                      I. AVOIDANCE CLAIMS

Introduction

Based on the report from Ernst & Young AG on the Swissair case,
payments made by SairLines from Jan. 1, 2005 to Oct. 5, 2001
(date on which the provisional debt restructuring moratorium was
granted) have been examined to establish whether or not they are
voidable under Art. 285 following the Swiss Debt Enforcement and
Bankruptcy Law (DEBL) and whether or not the payments that have
been made can be reclaimed from the recipients in question.  The
review was conducted as:

(a) Payments to SairGroup, Swissair Swiss Air Transport Company
    Ltd. and SairGroup Finance (NL) B.V. were not examined in
    greater detail, as these companies are also in debt
    restructuring liquidator or have gone into bankruptcy.  In
    order to safeguard the rights of SairLines, possible
    avoidance claims will be registered as creditors' claims or
    claims against the estate in the debt restructuring or
    bankruptcy proceedings respectively of these companies.  The
    liquidation bodies of SAirGroup and Swissair will then
    decide whether to accept or reject SAirLines' claims when
    drawing up the schedule of claims as part of the debt
    restructuring proceedings.  The receiver of SAirGroup
    Finance (NQ B.V. (FinBV) will perform this function in
    accordance] with Dutch rules.  An appeal might still be
    lodged if the claims registered by SAirLines were to be
    rejected;

(b) In early October 2001, SAirLines granted loans to various
    companies within the Swissair Group (SR Technics, Swissport,
    Gate Gourmet, Avireal AG and Pro Taxi AG) in order to
    guarantee their liquidity.  These loans have since been
    repaid (SR Technics, Avireal AG and Pro Taxi AG) or settled
    in connection with the sale of the companies during the debt
    restructuring moratorium and as approved by the debt
    restructuring judge (Swissport and Gate Gourmet).  The
    granting of the loans thus did not result in a reduction in
    SAirlines' assets.  Where repayment in full proved
    impossible, the loan debtors have been released from their
    residual obligations by final settlement agreements.  The
    granting of loans was therefore not investigated further
    with a view to possible avoidance claims;

(c) The payments made by SAirLines were divided into the
    following groups; Payments to LTU companies, payments
    concerning Air Littoral, payments concerning the
    restructuring of AOM / Air Liberte, payments concerning the
    take over of the Fokker 100 aircraft, guarantee payments,
    and special cases;

(d) The review focused primarily on whether or not the payments
    made by SAirLines can be challenged on the basis of what is
    known as voidability for intent (Art. 288 DEBL).  By way of
    exception, in this particular matter, the existence of a
    voidable gift (Art. 286 DEBL) or the possibility of
    voidability due to insolvency (Art. 287 DEBL) was also
    examined where there were the corresponding indications;

(e) These questions were looked into for each payment:

    (i) Were individual or all other creditors put at a
        disadvantage by the payment?

   (ii) Did SAirLines or its governing or executive bodies
        deliberately cause a disadvantage to creditors, or did
        it at least anticipate that such disadvantage might
        result?

  (iii) In exercising due diligence, could the favored
        creditors recognize an intention on the part of
        SAirLines to cause a disadvantage to creditors?

(f) The timing of the payment and the closeness of the
    creditor's relationship with SAirLines -- i.e. their
    knowledge about the financial situation -- are of crucial
    importance in assessing the subjective elements; the
    intention to cause injury to creditors and the extent to
    which this intention might be recognized by the favored
    creditors.  The events of 11 September 2001 were highly
    significant in this context, as they had considerable
    negative financial implications for the whole of the
    aviation industry.

This grid was used: http://bankrupt.com/misc/SAirlines_Grid.pdf.

The investigations produced the following results for the
individual payment groups.

Payments to LTU Companies

In the summer of 2001, SairLines paid EUR33,745,264 to the LTU
companies and EUR108,382,800 to LoMa Beteiligungsgesellschaft
mbH:

The SairLines participations in the LTU companies and in LoMa
Beteiligungsgesellschaft mbH were sold by SairLines in autumn
2001 during the debt-restructuring moratorium and with the
permission of the debt-restructuring judge.  Reciprocal claims
were settled in the context of the sale.  The sale documents
contain the corresponding waivers and netting clauses according
to which the parties agree not to pursue any further claims.
This waiver also applies to any avoidance claims.  Therefore,
the voidability of the two payments mentioned above cannot be
claimed.


SAIRGROUP: Rules out Recovery of Loan to Air Littoral
-----------------------------------------------------
In 1999 and 2000, SAirGroup and SAirLines respectively acquired
a participation in Air Littoral.  On 30 June 2001, SAirLines,
SAirGroup, Air Littoral and Marc Dufour concluded an agreement
on the sale and restructuring of Air Littoral.  SAirLines thus
withdrew from its participation in Air Littoral and undertook,
together with SAirGroup, to contribute to Air Littoral's capital
increase, to subsidize its restructuring and to grant it a loan.

The loan was subsequently never paid out by SAirLines owing to a
lack of liquidity.  In fulfillment of the agreement dated 30
June 2001, however, in July and August 2001 SAirLines did make
three payments of EUR22,867,353 each to Air Littoral for the
latter's capital increase as well as one payment of
EUR45,734,705 as a contribution to Air Littoral's restructuring.
There was no counterperformance on the part of Air Littoral.
The payments resulted in a reduction of the assets of SAirLines;
it can therefore be stated objectively that creditors were put
at a disadvantage.

The extent to which Air Littoral, its governing and executive
bodies and the purchaser of SAirLines' participation, Marc
Dufour, were -- at the time the payments were made -- aware of
the poor financial situation of SAirLines is therefore of
crucial importance in determining whether or not the payments in
question can be challenged.  The payments were made in the
period from early July until mid-August 2001, thus some time
before 11 September 2001.  For this reason alone it is difficult
to prove that the persons involved at Air Littoral were aware of
SAirLines' poor financial situation at the time the payments
were made.  There are no specific indications that these persons
were in possession of such knowledge.

Furthermore it has to be taken into consideration that, on 29
May 2002, Air Littoral obtained a ruling against SAirLines
before the Montpelier Tribunal de Commerce, a court of first
instance, which obliged SAirLines and SAirGroup to pay the loan
amount of FRF100 million, and around EUR15 million respectively,
in accordance with the agreement dated 30 June 2001.  The court
judged the loan, like the other payments, to be a contribution
to the restructuring of Air Littoral.  An appeal was lodged
against the judgment, out proceedings were layer subpoenaed
following the initiation of bankruptcy proceedings against Air
Littoral.  As a result, there is no legally enforceable judgment
in this case. The circumstances described above nonetheless make
it more difficult to challenge the payments that were made.  Air
Littoral is now in bankruptcy.  Even a successful avoidance
action, would yield only that part of the bankruptcy dividend
accruing to the claim.  Under these circumstances, an avoidance
action for the payments to Air Littoral in the name of SAirLines
would appear to have little chance of success.


SAIRGROUP: Writes off Restructuring Aid to AOM/Air Liberte
----------------------------------------------------------
On 18 September 1998, SAirGroup and the Marine-Wendel and Alpha
Group investor groups agreed to jointly take over 100% of the
share capital of AOM Participations S.A., which -- in its
capacity as holding company -- controlled AOM Minerve S.A.
(AOM).  On the basis of this agreement, SAirLines acquired a
49.5% participation in AOM Participations S.A. on 2 February
1999.  At the same time, the MarineWendel investor group -- or
rather Taitbout Antibes B.V., which it controlled -- took a
further 50.01% of the shares in AOM Participation S.A.  In 2000,
AOM Participations also acquired the airline Air Liberte and its
parent holding company Participations Aeronautiques S.A.
respectively from British Airways Plc and Groupe Rivaud.

With judgment of the French commercial court of Creteil/Paris of
27 July 2001, the airlines of AOM and Air Liberte -- by then
over indebted and subject to creditor protection arrangements --
were transferred to Holco S.A.  The restructuring program
presented by Holco S.A. was approved at the same time.  On 31
July/1 August 2001, AOM/Air Liberte, SAirGroup, SAirLines and
Holco S.A. signed a "protocole transactionnel", which was
submitted to the commercial court for review and approved by it.
The "protocole transactionnel" set out the terms of the
withdrawal of SAirGroup and SAirlines from their participations
in AOM/Air Liberte.

In compliance with the commercial court ruling, SAirGroup and
SAirlines respectively undertook, inter alia, to make a
contribution totaling FRF1.3 billion (approximately CHF325
million) to the restructuring of AOM/Air Liberte.  Pursuant to
the "protocole transaczionnel" between early August arid early
September 2001 SAirlines made three payments of EUR45,734,705,
EUR15,244,902 and EUR91,469,410 to Holco S.A., as well as one
payment of EUR7,622,451 in procedural costs to Maitre Baudoin
Libert, an "Administrateur Judiciaire" in charge of the correct
enforcement of the "plan de cession".  The remaining payments
provided for by the agreement were subsequently never made owing
to a lack of liquidity on the part of SAirlines.  These
unremitted payments are currently the subject of several pending
court cases in France and Switzerland.

In establishing the voidability of the payments made in
connection with the withdrawal from the AOM and Air Liberte
holdings, the crucial point is whether or not the recipients of
the payments or their governing and executive bodies were aware
of the poor financial situation at SAirlines at the time the
payments were made, and thus whether or not they must at least
have been able to discern an intention to put certain creditors
at a disadvantage.  The first thing to state in this connection
is that the payments were all made prior to 11 September 2001.
Furthermore, there are no indications that SAirlines' poor
financial situation had been recognizable to the persons
concerned.  The payments were made in accordance with a payment
schedule that had been determined in advance.  There were no
specific collection activities on the part of the beneficiaries,
which might have led to conclude that they were aware of
SAirlines' financial difficulties.  An avoidance action in
connection with these payments by SAirlines would thus appear to
have little prospect of success.


SAIRGROUP: Voids Potential Claim on Fokker 100 Aircraft Takeover
----------------------------------------------------------------
In March 1993, the French regional airline TAT European Airlines
S.A. concluded a leasing agreement with each of Barclays Bail
S.A. and Credit Agricole Indosuez.  The agreements concerned one
and two Fokker 100 aircraft respectively (F-GIOI, F-GIOJ and F-
GIOK).  Ownership of the aircraft remained with Barclays (F-
GIOI) and GIE Jet 11-12/Credit Agricole (F-GIO and FGIOK).

British Airways Plc (British Airways) guaranteed Barclays and
Credit Agricole the fulfillment of TAT's obligations from these
leasing agreements, up to a maximum of US$16 million (Barclays)
and US$47 million (GIE Jet 11?12/Credit Agricole).  The purchase
of Participations Aeronautiques S.A. -- which held 60% of TAT --
by AOM Participations S.A. in 2000 also gave SAirLines and
SAirGroup respectively an indirect holding in TAT.  This was the
reason why SAirGroup undertook in an agreement dated 7 April
2000, inter alia, to indemnify British Airways in the event that
recourse be sought to it in connection with one of the listed
guarantees.  SAirGroup also undertook to ensure that British
Airways was released from all of its listed obligations.

As the deterioration of TAT's financial situation meant that it
was no longer able to fulfill its obligations under the leasing
agreements, Barclays and GIE Jet 11-12/Credit Agricole made
guarantee claims against British Airways.  For its part, British
Airways demanded that it be indemnified by SAirGroup on the
basis of the guarantee agreement dated 7 April 2000.  To settle
the situation and to fulfill the obligation that SAirGroup had
assumed to release British Airways from its guarantee
obligations, SAirGroup and British Airways concluded a
settlement agreement with each of Barclays and GIE Jet 11-
12/Credit Agricole in August 2001.  Under the terms of these
agreements, SAirGroup acquired the three Fokker 100 aircraft F-
GIOI, F-GIOJ and F-GIOK.  In return, British Airways was
released from its guarantee obligations towards Barclays and GIE
Jet 11-12/Credit Agricole.

On the basis of the above settlement agreements, on 6 August
2001 SAirLines paid EUR21,128,494 and US$22,573,916 to Dominique
Garnier, Paris, in favor of GIE Jet 11-12/Credit Agricole, for
the two Fokker 100s (F-GIOJ and F-GIOK), followed on 29 August
2001 by a payment of US$16,199,669 to Barclays for the Fokker
100 (F-GIOI).  Since the aircraft were acquired in return, a
certain degree of counterperformance was associated with these
payments.  This is true regardless of the fact that ownership of
the aircraft was transferred to SAirGroup, not SAirLines.  Any
claims that SAirLines might have against SAirGroup in this
connection will be treated as described in section 1.a above.
The payments made by SAirLines in connection with the three
Fokker 100 thus resulted in a reduction in the assets of
SAirLines only to the extent to which the sum paid exceeded the
value of the aircraft.  The payments were made prior to 11
September 2001.  There are no indications that Dominique
Garnier, GIE Jet 11-12/Credit Agricole or Barclays were aware of
the financial situation at SairLines at that time.  Although
Barclays is a financial institution, its business ties with
SAirLines were limited to the transaction concerning the Fokker
100 aircraft.  On the basis of these considerations, SairLines
would not have much chance of success if it were to challenge
the payments to GIE Jet 11-12/Credit Agricole and Barclays.


SAIRGROUP: Considers Pursuing Claims Against JTLC
-------------------------------------------------
In addition to the aforementioned guarantees in favor of
Barclays and Credit Agricole, British Airways had entered into
further guarantee undertakings in favor of Jet Trading and
Leasing Company Limited (JTLC), Prop Leasing and Trading Company
Limited (11PLTC11)' Transregiolise GIE (Transregiolise) and
Aircraft International Renting A.I.R. (A.I.R.) in respect of TAT
obligations arising from a variety of aircraft leasing
agreements.  In the agreement dated 7 April 2000, SAirGroup
further undertook to release British Airways also from these
guarantees.  On this basis, SAirLines made payments to JTLC of
US$8,113,258 on 6 August 2001 and US$8,578,002 on 27 August
2001, in addition to US$1,989,228 to Transregiolise on 31 August
2001, US$7,202,800 (17 August 2001) and US$2,099,500 (4
September 2001) to A.I.R, and EUR1,324,602 (13 September 2001)
and US$3,174,283 (18 September 2001) to PLTC.

There was no counterperformance for these payments.  They
reduced the assets of SAirLines and resulted in a disadvantage
of creditors.  Whether or not these payments are voidable
depends upon whether the recipients would have been able, when
exercising due diligence, to recognize an intention to cause a
disadvantage to other creditors.  With the exception of the
payments to PLTC, all payments were executed prior to 11
September 2001.  There are no indications to suggest that JTLC,
Transregiolise and A.I.R. were aware of SAirLines' desperate
financial situation when the payments were made and could thus
have recognized that they would put creditors at a disadvantage.
An avoidance claim by SAirLines in connection with the payments
to TLC, Transregiolise and H.1.R. thus has little chance of
success.

The situation is different with regard to PLTC.  Unlike the
payments to TLC, Transregiolise and A.I.R., the payments to PLTC
were made after 11 September 2001, on 13 September 2001 and 18
September 2001.  Given the statements made under section 1.f
above, it would be appropriate to investigate further and
possibly even pursue avoidance claims in connection with the
payments made by SAirLines to PLTC.


SAIRGROUP: To Examine Contractual Claim Against Volare CEO
----------------------------------------------------------
Special Cases

(a) Swiss Federal Tax Administration (securities trading duties)

On 30 January 2001, SAirLines made a CHF601,313 payment marked
"securities trading duties" ("Effektenhjnd1erabgabe") to the
Swiss Federal Tax Administration.

The payment of an outstanding bill for securities trading duties
is a payment for which there is no counterperformance; the tax
is owed unconditionally.  It is not a gift, however, because
there is a statutory obligation to pay.  For this reason, an
avoidance claim is out of question.

The avoidability of a payment to the Swiss Federal Tax
Administration in the sense of voidability for intent would
require proof that the Swiss Federal Tax Administration would
have been able to recognize as early as 30 January 2001 that
SAirLines intended to favor the Administration or place other
creditors at a disadvantage.  There is no evidence for this.
Consequently, not all of the conditions for a voidability claim
in connection with the payment to the Swiss Federal Tax
Administration are fulfilled.

(b) CSFB Credit Suisse First Boston

Following the investment in Sabena in 1995, a strategy was
formulated for a step-by-step full takeover of Sabena by the
Swissair Group.  This strategy was drawn up in connection with
the further integration between the Swissair companies and
Sabena that was planned for a second stage in 1999 and 2000.
Credit Suisse First Boston (CSFB), London, was involved in this
project in an advisory capacity.  On 18 October 2000, it
submitted an invoice of EUR2,029,385.80 to SAirLines for the
related charges and services rendered during the period of 1
October 1999 to 1 October 2000.  SAirLines paid this sum on 9
January 1001.

Given the very early date of payment, which was long before the
debt-restructuring moratorium was granted on 5 October 2001, it
is virtually impossible to prove that CSFB knew about the
desperate financial situation at SAirLines when the payment was
made.  The fact that, as a bank, CSFB can be assumed to have had
more detailed information about SAirLines' financial
circumstances has no bearing here.  In January 2001, it could
still not have been expected that the Swissair Group would
collapse.  Consequently, the conditions for an avoidance action
in connection with the payment to CSFB are not fulfilled.

(c) Vincenzo Soddu

On 19 January 2001, SAirLines transferred CHF5 million to
Vincenzo Soddu.  This payment was made in connection with the
participation in the Volare Group and was based on an agreement
dated 5 July 2000, in which SAirLines had undertaken to pay
Vincenzo Soddu a total of CHF5 million.  Of this figure, CHF2.5
million was understood to be a bonus for the successful merger
of the two airlines Volare and Air Europe under the Volare
Holding umbrella.  The remaining CHF2.5 million was to be paid
to Vincenzo Soddu as remuneration, provided he remained CEO of
Volare Holding for at least three years.  Under the terms of the
agreement, this second tranche was to be paid at the same time
as the first.  In the event that he ceased to be CEO of Volare
Holding before the end of the three-year period, Vincenzo Soddu
would have to repay the second tranche to SAirlines.  Vincenzo
Soddu undertook to furnish a bank guarantee of CHF2.5 million as
security for this repayment.  He did not fulfill this
obligation, however.

A successful avoidance action in connection with the CHF5
million payment rests on proof that Vincenzo Soddu must have
been able to recognize SAirLines' financial difficulties when
the payment was made.  There are no indications that Vincenzo
Soddu had any knowledge on 19 January 2001 of SAirLines'
financial situation, such that he would have been able to
recognize any intention on the company's part to favor specific
creditors.  The timing of the payment was relatively long before
the debt-restructuring moratorium was granted on 5 October 2001.
There would thus appear to be little prospect of a successful
avoidance action in connection with the payment to Vincenzo
Soddu.  Whether or not SAirLines can make a contractual claim
from the agreement with Vincenzo Soddu will be examined
separately.

(d) Homburger Law Firm

On 4 October 2001 and 5 October 2001, SAirLines made two
payments of CHF500,000 each, marked "retainer for future work"
to the Zurich law firm Homburger.  These payments were based on
correspondence/invoices for advance payments to the Homburger
law firm, which were dated 30 September 2001 and 5 October 2001.

Following granting of the debt restructuring moratorium by the
single judge of the district court of Zurich on 5 October 2001,
the Homburger law firm acted on behalf of SAirlines during the
debt restructuring moratorium and has continued to do so since
debt restructuring liquidation proceedings began.  In
particular, it has been involved in the sales of the Gate
Gourmet Group, the Swissport Group, Avireal AG and the Nuance
Group.  The payments of 4 and 5 October 2001 to the Homburger
law firm were set off against services provided after 5 October
2001.  SAirlines thus received the corresponding
counterperformance for its payments and the payments can
therefore not be challenged.


SAIRGROUP: To Pursue Claims Against Bar & Karrer Law Firm
---------------------------------------------------------
(e) Bar & Karrer Law Firm

On 5 October 2001, SAirlines paid CHF200,000 to the Zurich law
firm Bar & Karrer.  Bar & Karrer had been instructed in an
engagement letter dated 2 May 2001 to conduct a variety of
investigations into potential liability claims under corporate
law.  On this basis, Bar & Karrer provided the corresponding
services in the period from May to September 2001.  The
CHF200,000 payment on 5 October 2001 had probably been requested
as an advance.  The amount was used to pay outstanding invoices
for services rendered prior to 5 October 2001, however.  The
outstanding invoices as at 5 October were CHF195,906.75, dated
24 August 2001, CHF31,881.90, dated 25 September 2001 and
CHF28,065.85, dated 28 September 2001.

In addition to these invoices, a fee note for CHF23,214.90 dated
15 January 2002 was submitted at a later date.  This fee note
also invoiced services provided prior to 5 October 2001.  The
Bar & Karrer law firm registered a claim of CHF79,069.40 in the
SAirlines debt restructuring proceedings.  It can be inferred
from the invoices that were submitted that the CHF200,000 was
applied as full payment of the invoice for CHF195,906.75 and
partial payment of the invoice dated 25 September 2001.  It is
therefore clear that there were no subsequent services on the
part of the Bar & Karrer law firm in return for the 5 October
2001 payment.  Consequently, the creditors of SAirlines were put
at a disadvantage by this payment.  Given the circumstances on 5
October 2001, SAirLines's intention and acceptance of putting
creditors at a disadvantage were obvious.  The Bar & Karrer law
firm would also have been able to recognize this intention on 5
October 2001.  The prospects for an avoidance action in
connection with this payment are therefore promising, and
SAirlines will be pursuing this claim.


SAIRGROUP: Rules out Claims Against Swissotel CEO
-------------------------------------------------
(f) Andreas Meinhold

Up to 6 June 2001, Andreas Meinhold was CEO of Swissotel
Management Ltd., a subsidiary of S Air Relations AG.  S Air
Relations AG was absorbed by merger into SAirlines as at the end
of June 2001, with the transaction retroactively becoming
effective as per 1 January 2001.  A settlement agreement
regarding Andreas Meinhold's severance package was concluded
between S Air Relations AG and Andreas Meinhold on 25 June 2001
as part of the sale of Swissotel Management Ltd. to Raffles
Holding.

Under the terms of the settlement agreement, S Air Relations AG
undertook to pay Andreas Meinhold US$2,979,683 in connection
with his employment contract and a further US$2,830,000 relating
to a retention agreement concluded on 7 October 2000.  SAirGroup
(not S Air Relations AG or SAirlines) made the payments of
US$2,830,000 (value date 6 July 2001) and US$2,979,682 (value
date 9 July 2001).  The sums in question were nonetheless
reimbursed to SAirGroup from an S Air Relations AG account as of
value date 18 September 2001.  Ultimately, the payments to
Andreas Meinhold were made by S Air Relations AG.  As a result
of the merger with SAirlines, however, this had the effect of
reducing the assets of SAirLines.

The claims fulfilled by the payments to Andreas Meinhold were
based on his contractual agreements with S Air Relations AG.  S
Air Relations AG was not overindebted at the time the payments
were made on 6 and 9 July 2001.  Rather, the insolvency of S Air
Relations AG is a result of its merger with SAirLines.  This
cannot be held against Andreas Meinhold, however.  A successful
avoidance action against the claims would revive Andreas
Meinhold's underlying claims against S Air Relations AG.

According to Art. 748 cif. 2 of the old Swiss Code of
Obligations that was in force at the time, in the case of a
merger the assets of the company that is to be dissolved -- S
Air Relations AG in this case -- are to be managed separately
until its creditors are satisfied or their claims secured. Art.
748 cif. 5 of the old Code of Obligations states that if the
merged company -- here SAirLines -- is bankrupt or enters into
debt restructuring liquidation, the assets of the dissolved
company are to be handled separately.  They are to be used, as
far as necessary, exclusively to satisfy the creditors of the
dissolved company.  According to present knowledge, the
disposable assets of S Air Relations AG are sufficient to meet
all of the known claims against S Air Relations AG, including
those of Andreas Meinhold, should they be revived.  The
creditors of S Air Relations AG were thus not put at a
disadvantage by the payments to Andreas Meinhold.  Under the
given circumstances, the pursuit of an avoidance claim on behalf
of SAirLines against Andreas Meinhold has little chance of
success.


SAIRGROUP: To Review Possible Avoidance Action Against CSG, UBS
---------------------------------------------------------------
(g) Credit Suisse Group and UBS Ltd. ("Phoenix transaction")

Under the terms of the Phoenix plan, on 30 September 2001 Credit
Suisse Group (CSG) and UBS Ltd. acquired SAirLines'
approximately 70% block of shares in Crossair Ltd. at a price of
CHF258 million.  The agreement between CSG and UBS states that
SAirlines was to use the purchase price to maintain the
airline's related ancillary operations of SR Technics,
Swissport, Gate Gourmet and Atraxis, as well as to continue
Swissair flight operations up to 3 October 2001.  Using the
purchase price in this way was primarily in the interest of
Crossair Ltd. and thus also its shareholders, CSG and UBS.  It
was planned at that time that Crossair Ltd. would take over a
part of the flight operations of Swissair and continue these
operations after the end of October 2001.  Maintaining airline-
related ancillary operations and the cessation of Swissair
flight operations in an orderly manner were therefore crucial to
the success of the Phoenix project.

Under the terms of the agreement with CSG and UBS, from the
proceeds of the Crossair sale SAirLines paid out around CHF207
million in loans to then-subsidiaries in the period 3-5 October
2001.  The recipients of these loans included Swissair, SR
Technics, Swissport and Gate Gourmet.  A portion of these loans
can no longer be repaid by the recipients.  The assets of
SAirLines were therefore diminished by the granting of these
loans.  It must be borne in mind, however, that the granting of
these loans also helped SAirLines to preserve the value of the
subsidiaries -- which could later be sold.  Further
investigation is therefore required to establish whether or not
SAirLines actually suffered a loss out of the Phoenix deal, and
whether or not SAirLines intended to put its creditors at a
disadvantage.

CSG and UBS were favored indirectly by the use of the Crossair
purchase price as described above.  Under certain circumstances,
this type of indirect benefit can also be challenged and
reclaimed.  For an avoidance action to be successful, however,
CSG and UBS would have had to be able to recognize an intention
on the part of SAirLines to cause a disadvantage to creditors in
early October 2001.  On 30 September 2001, both banks were very
familiar with the financial situation of SAirLines.  If
SAirLines had intended to cause a disadvantage to its creditors,
this would have been evident to CSG and UBS.

A summary examination of the Phoenix deal revealed that it is
not possible at this time to conclusively assess the
opportunities and risks attached to an avoidance action against
CSG and UBS.  The possibility of SAirlines making avoidance
claims at this point in time should nonetheless be looked into
in greater detail and such claims pursued if appropriate.

8. Conclusion

In the light of the above assessment, the Liquidators and the
Creditors' Committee will generally refrain from pursuing
avoidance claims, with the exception of these claims:

(a) Avoidance claims against SAirGroup and Swissair in debt
    restructuring liquidation;

(b) Avoidance claims against the third-party creditors which
    have received payments from SAirLines:

    (i) SAirGroup Finance (NQ B.V.: Payment of US$9,480,905,
        value-dated 29 June 2001

   (ii) Prop Leasing and Trading Company Limited (PLTC):
        Payments of EUR1,324.602, value-dated 13 September
        2001, and US$3,174,283, value-dated 18 September 2001

  (iii) Bar & Karrer law firm: Payment of CHF200,000, value-
        dated 5 October 2001

(c) Avoidance claims against Credit Suisse Group and UBS Ltd.
    relating to the use of funds resulting from the sale of the
    Crossair participation, as agreed in connection with the
    Phoenix transaction.

The avoidance claims with which the Liquidators and the
Creditors' Committee wish to proceed are being further pursued
by SAirLines itself.


SAIRGROUP: Drops State Liability Claim
--------------------------------------
II. State Liability Action Against the Swiss Confederation on
      Grounds of Failure to Fulfill Supervisory Obligations

To prevent the statute of limitations coming into effect, on 19
September 2003, SAirLines in debt restructuring liquidation,
together with SAirGroup in debt restructuring liquidation,
Flightlease AG in debt restructuring liquidation and Swissair
Swiss Air Transport Company Ltd. in debt restructuring
liquidation (Swissair) made a submission to the Swiss Federal
Department of Finance petitioning for damages of CHF1 billion
against the Swiss Confederation.  The grounds for the petition
was the allegation that the Federal Office for Civil Aviation
(FOCA) had neglected its supervisory obligations in respect of
Swissair and SAirGroup respectively.

The Swissair companies requested that the Federal Department of
Finance suspend the action for an initial period so that the
legal situation could be examined before proceedings were
pursued.  On 27 October 2003, the Federal Department of Finance
ruled that proceedings be suspended as requested.

In January 2004, Prof. Dr. Tobias Jaag and Dr. Markus Russli, of
the law firm Umbricht, Attorneys at Law, were engaged to provide
a legal opinion on the Swissair companies' entitlement to take
action against the Swiss Confederation.  The legal opinion was
submitted to the Liquidators in April 2004.  The opinion first
points out that, of the four Swissair companies, only Swissair
was dedicated to the commercial transportation of persons and
goods and that only this company held an operating license from
the FOCA or a license to operate certain air routes from the
Federal Department of Environment, Transport, Energy and
Communications (DETEC).  Supervision on the part of the
Confederation was therefore limited to Swissair.

According to the opinion, SAirLines, SAirGroup and Flightlease
AG, which were not subject to supervision by the Confederation,
cannot charge the Confederation with any breach of its
supervisory obligations whatsoever.  There was thus never any
corresponding liability to SAirlines and its creditors.  Even if
SAirlines had been subject to federal supervision, the opinion
states that the criteria for liability on the part of the Swiss
Confederation would not have been fulfilled.  The protection of
the financial interests of the creditors of a company or of the
company itself is not one of the direct objectives of federal
supervision of civil aviation.  Furthermore, liability would
also have been ruled out owing to the high degree of fault on
the part of SAirlines and its governing and executive bodies.

On the basis of the opinion provided by Prof. Dr. Tobias Jaag
and Dr. Markus Russli, the Liquidators and the Creditors'
Committee will not pursue the state liability claim on behalf of
SAirlines.



                 III. Waiver of Disputed Claims

1. General

Each creditor is entitled to request the assignment of the right
to take legal action in respect of those legal claims for which
the Liquidators and the Creditor's Committee decide not to
further pursue them (Art. 325 in conjunction with Art. 260
DEBL).  A creditor who requests assignment is entitled to assert
the legal claim at his own risk and expense.  In the event that
he should win the legal action, he is entitled to use any award
to cover both the costs incurred and his claims against
SAirLines.  Any excess amount would have to be surrendered to
the liquidation assets.  If the creditor should lose the action,
he is liable for any court and legal fees.

2. Assignment requests by individual creditors

Creditors are hereby offered the option of being assigned the
right to raise an action in respect of any avoidance claims by
SAirLines which the liquidation bodies have declined to assert
(see 1.8 above) and in pursuance of the state liability action
against the Swiss Confederation for breach of duty of
supervision (see II above).  As far as avoidance claims are
concerned, creditors' attention is drawn to the fact that in
order to safeguard their rights they should take initial legal
steps by 26 June 2005.  Each creditor can obtain from the Co-
Liquidator Karl Wuthrich a CD-Rom containing a list of possible
claims arising from voidable acts, for which an assignment of
the right to pursue an action is offered, as well as the
relevant documents.  These documents can also be inspected at
the office of the Co-Liquidator.  Orders can be placed by
telephone on +41 43 222 38 30 (German), +41 43 222 38 40
(French) and +41 43 222 38 50 (English).

Requests for assignment within the meaning of Art. 260 DEBL may
be lodged with the undersigned Liquidator Karl Wuthrich in
writing by 10 June 2005 at the latest (date of postmark of a
Swiss post office).  The right to request assignment will be
deemed to have be forfeited if this deadline is not met.


SAIRGROUP: Sells Avireal for CHF269 Million
-------------------------------------------
                        IV. Avireal AG

In Circular no. 4, we were able to announce to creditors that a
sale and purchase agreement for the takeover of Avireal AG by
Burgring Immobilien AG had been concluded in January 2005.  The
deal has since been approved by the Creditors' Committees of
SAirLines and SAirGroup and the sale went through at the end of
April 2005.

The purchase price for the shares, the "Avireal" brand and the
loans from SAirLines and SAirGroup was CHF269,018,199.38.  It
will be divided between SAirLines and SairGroup as:

SAirLines:

Repayment of loan:                         CHF12,600,000.00

Shares in Avireal AG                       CHF160,054,438.90

SAirGroup:

Repayment of loan, following set-off of
Counter-claims by Avireal AG:              CHF95,763,760.48

"Avireal" brand and building lease for
Oberhau:                                   CHF600,000.00

Reciprocal claims between the Avireal companies, SAirLines and
SAirGroup have also been settled as part of the sale of Avireal
AG.

Further information for creditors, again in the form of a
circular, is planned for the autumn of 2005.

Yours sincerely,
SAirLines in debt restructuring liquidation

The Liquidators
Karl Wuthrich
Dr. Roger Giroud

CONTACT:  SAIRLINES
          Hotline: (Deutsch) +41-43-222-38-30
          Francais: +41-43-222-38-40
          English: +41-43-222-38-50-18


SWISS INTERNATIONAL: AirTrust Mulls Squeeze-out Merger
------------------------------------------------------
Following the expiration of the offer period, Lufthansa and the
Almea Foundation hold a total of 96.0% of the share capital of
Swiss International Air Lines Ltd. via the Swiss-domiciled
company AirTrust AG.  Contractual undertakings to sell have been
obtained from Swiss' major shareholders accounting for 84.6% of
Swiss' share capital; and a further 11.4% of Swiss shares have
been offered for sale to AirTrust by the company's minority
shareholders.

AirTrust submitted a public tender offer to all Swiss minority
shareholders on May 4, 2005.  By the end of the offer period on
June 2, 2005, AirTrust had been offered a total of
6,098,426 Swiss shares for purchase.  This corresponds to 73.6%
of the 8,281,110 Swiss shares held by minority shareholders at
the end of the offer period.

Subject to the pending anti-trust approval, AirTrust declares
the public tender offer to be successful.

As specified in the offer prospectus, a grace period of ten
trading days will start from June 9 until June 22, 2005, during
which remaining minority shareholders will be able to
subsequently accept the tender offer.

With a total shareholding of 96% of Swiss' share capital,
AirTrust now holds more than the minimum number of Swiss shares
required to effect a squeeze-out merger of minority
shareholders.  In view of this, and following the procurement of
the requisite approval from the E.U. competition authorities and
the expiration of the grace period, AirTrust might consider the
possibility of effecting a squeeze-out merger of Swiss and
AirTrust, with due compensation of the remaining Swiss
shareholders.

CONTACT:  DEUTSCHE LUFTHANSA AG
          Corporate Communications
          Phone: +49 69 696 - 2999
          Fax: +49 69 696 - 95428
          Web site: http://presse.lufthansa.com

          SWISS INTERNATIONAL AIR LINES LTD.
          Corporate Communications
          Phone: +41 848 773 773
          Fax: +41 44 564 2127
          E-mail: communications@swiss.com


SWISS INTERNATIONAL: Gets IOSA Registration Certificate
-------------------------------------------------------
Swiss International successfully passed the IATA Operational
Safety Audit (IOSA) and is now registered as IOSA Operator.
Swiss is now among the 40 odd airlines, which reached this
internationally recognized standard, after a thorough evaluation
in all areas of Operations, Safety and Security.  The
Registration Certificate is valid for two years.

The objective of the IOSA audit (IATA Operational Safety Audit)
is to reach an internationally recognized and comparable
standard in operation and safety management.  The mutual
recognition of IOSA audits prevents that for a codeshare
partnership each airline has to audit their partner.

IATA accredited Audit Organizations perform the audits with
specially trained auditors and according to internationally
recognized procedures.  The procedures comprise a checklist with
739 standards, split in eight sections, covering the areas of
Corporate Organization & Management, Flight Operations,
Operational Control & Flight Dispatch, Aircraft Engineering &
Maintenance, Cabin Operations, Aircraft Ground Handling, Cargo
Operations and Operational Security.

Manfred Brennwald, Chief Operations Officer: "We are proud to be
registered as IOSA Operator.  Several codeshare partners already
advised us about their recognition of our IOSA audit and refrain
from doing their own audits, which saves a lot of time and
costs.

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
=============


BOGATIR: Donetsk Court Opens Bankruptcy Proceedings
---------------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
proceedings against Bogatir (code EDRPOU 30835173) on April 19,
2005 after finding the limited liability company insolvent.  The
case is docketed as 15/206 B.  Mr. Ivanov Oleksij (License
Number AA 779273) has been appointed liquidator/insolvency
manager.

CONTACT:  BOGATIR
          Ukraine, Donetsk region,
          Velikonovoselkivskij district,
          Bogatir, Miru Str. 23

          Mr. Ivanov Oleksij
          Liquidator/Insolvency Manager
          Ukraine, Donetsk region,
          Rozi Luksemburg Str. 20/65

          ECONOMIC COURT OF DONETSK REGION
          83048, Ukraine, Donetsk region,
          Artema Str. 157


GLUHIV: Court Appoints Temporary Insolvency Manager
---------------------------------------------------
The Economic Court of Sumi region commenced bankruptcy
supervision procedure on Gluhiv (code EDRPOU 30941613) on April
7, 2005.  The case is docketed as 7/26-05.  Mr. Yevgen Chuprun
(License Number AA 779228) has been appointed temporary
insolvency manager.  The company holds account number
2600016180010 at JSCB Pravex-Bank, Gluhiv branch, MFO 337858.

CONTACT:  GLUHIV
          41400, Ukraine, Sumi region,
          Gluhiv, Proletarska Str. 3

          Mr. Yevgen Chuprun
          Temporary Insolvency Manager
          Ukraine, Sumi region,
          Petropavlovska Str. 74, Room 49 A

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


MIR: Names Mikola Yarkovenko Insolvency Manager
-----------------------------------------------
The Economic Court of Lugansk region commenced bankruptcy
proceedings against Mir (code EDRPOU 30764108) on March 18, 2005
after finding the limited liability company insolvent.  The case
is docketed as 11/85 b.  Mr. Mikola Yarkovenko (License Number
AA 419214) has been appointed liquidator/insolvency manager.

CONTACT:  MIR
          91000, Ukraine, Lugansk region,
          Krasnodonskij district, Ogulchansk

          Mr. Mikola Yarkovenko
          Liquidator/Insolvency Manager
          Ukraine, Lugansk region, Radyanska Str. 66/20

          ECONOMIC COURT OF LUGANSK REGION
          91000, Ukraine, Lugansk region,
          Geroiv VVV Square, 3a


NEMSHYEVE' BIOCHEMICAL: Succumbs to Insolvency
----------------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
proceedings against Nemshyeve' Biochemical Products Plant (code
EDRPOU 00479729) on April 8, 2005 after finding the close joint
stock company insolvent.  The case is docketed as 222/2 b-04.
Mr. Y. Zajtsev (License Number AA 779190) has been appointed
liquidator/insolvency manager.

CONTACT:  NEMSHYEVE' BIOCHEMICAL PRODUCTS PLANT
          07854, Ukraine, Kyiv region,
          Borodyanskij district, Nemishayeve,
          Biohimichna Str. 1

          ECONOMIC COURT OF KYIV REGION
          01033, Ukraine, Kyiv region,
          Zhilyanska Str. 58 b


ROMNAFTOPRODUCT: Court Freezes Debt Payments
--------------------------------------------
The Economic Court of Sumi region commenced bankruptcy
supervision procedure on CJSC Romnaftoproduct (code EDRPOU
31765982) on March 21, 2005 and ordered a moratorium on
satisfaction of creditors' claims.  The case is docketed as
6/35-05.  Mr. Mikola Ribalchenko (License Number AB 116152) has
been appointed temporary insolvency manager.  The company holds
account number 260073418 at OJSC Oshadbank, Romni branch, MFO
337728.

CONTACT:  ROMNAFTOPRODUCT
          Ukraine, Sumi region,
          Romni, Poltavska Str. 145-a

          Mr. Mikola Ribalchenko
          Temporary Insolvency Manager
          Ukraine, Kyiv region, Av. Antonov Str. 3/4

          ECONOMIC COURT OF SUMI REGION
          40000, Ukraine, Sumi region,
          Shevchenko Avenue, 18/1


STANICHNO-LUGANSKA MACHINE: Declared Insolvent
----------------------------------------------
The Economic Court of Lugansk region commenced bankruptcy
proceedings against Stanichno-Luganska Machine-Technological
Station (code EDRPOU 23486703) on April 5, 2005 after finding
the limited liability company insolvent.  The case is docketed
as 9/15 b.  Mr. Sergij Zhezherya (License Number AA 630099) has
been appointed liquidator/insolvency manager.

CONTACT:  STANICHNO-LUGANSKA MACHINE-TECHNOLOGICAL STATION
          Ukraine, Lugansk region,
          Stanichno-Luganskij district,
          Valujske, Michurin Str. 38 a

          Mr. Sergij Zhezherya
          Liquidator/Insolvency Manager
          91493, Ukraine, Lugansk region,
          Yuvilejne, Shahtarskij quarter, 5/58

          ECONOMIC COURT OF LUGANSK REGION
          91000, Ukraine, Lugansk region,
          Geroiv VVV Square, 3a


TOREZ' AUTO-TRANSPORT 11413: Insolvency Manager Takes over Helm
---------------------------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
proceedings against Torez' Auto-Transport Enterprise 11413 (code
EDRPOU 03113704) on April 11, 2005 after finding the limited
liability company insolvent.  The case is docketed as 5/132 b.
Mr. Davidenko Oleksij (License Number AA 218601) has been
appointed liquidator/insolvency manager.  The company holds
account number 26005303460177 at Prominvestbank, Torez branch,
MFO 334286.

CONTACT:  TOREZ' AUTO-TRANSPORT ENTERPRISE 11413
          86600, Ukraine, Donetsk region,
          Torez, Shosejna Str. 1

          ECONOMIC COURT OF DONETSK REGION
          83048, Ukraine, Donetsk region, Artema Str. 157


TREST GENICHESKAGROBUD: Under Bankruptcy Supervision
----------------------------------------------------
The Economic Court of Herson region commenced bankruptcy
supervision procedure on OJSC Trest Genicheskagrobud (code
EDRPOU 01352965).  The case is docketed as 6/88-B.  Mr.
Zaporozhets Dmitro (License Number AA 487833) has been appointed
temporary insolvency manager.  The company holds account number
26009322725001 at CB Privatbank, Herson branch, MFO 352479.

CONTACT:  TREST GENICHESKAGROBUD
          75500, Ukraine, Herson region,
          Genichesk, Miru Avenue, 51

          ECONOMIC COURT OF HERSON REGION
          73000, Ukraine, Herson region,
          Gorkij Str. 18


UKRZHILSTROJ: Court Orders Debt Moratorium
------------------------------------------
The Economic Court of Odessa region commenced bankruptcy
supervision procedure on CJSC Ukrzhilstroj(code EDRPOU 20921080)
on April 1, 2005 and ordered a moratorium on satisfaction of
creditors' claims.  The case is docketed as 7/66-05-3346.  Mr.
Sergij Chornomorets (License Number AA 484172) has been
appointed temporary insolvency manager.

CONTACT:  UKRZHILSTROJ
          65014, Ukraine, Odessa region,
          Lidersovskij Boulevard, 9

          Mr. Sergij Chornomorets
          Temporary Insolvency Manager
          65011, Ukraine, Odessa region,
          Pushkinska Str. 54/4
          Phone: (0842) 32-90-21

          ECONOMIC COURT OF ODESSA REGION
          65032, Ukraine, Odessa region,
          Shevchenko Avenue, 4


VUGLEDONTEHPOSTACHANNYA: Bankruptcy Supervision Starts
------------------------------------------------------
The Economic Court of Lugansk region commenced bankruptcy
supervision procedure on Vugledontehpostachannya (code EDRPOU
23773549) on April 12, 2005.  The case is docketed as 20/47 b.
Mr. Andrij Golosov (License Number AA 216813) has been appointed
temporary insolvency manager.

CONTACT:  VUGLEDONTEHPOSTACHANNYA
          94100, Ukraine, Lugansk region,
          Bryanka, Zhukovskij Str. 1a

          Mr. Andrij Golosov
          Temporary Insolvency Manager
          91019, Ukraine, Lugansk region,
          Kirov Str. 18/12
          Phone: (0642) 52-74-93

          ECONOMIC COURT OF LUGANSK REGION
          91000, Ukraine, Lugansk region,
          Geroiv VVV Square, 3a


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


AFONICS FIBREOPTICS: Appoints Baker Tilly Administrator
-------------------------------------------------------
Richard Paul Rendle and Guy Edward Brooke Mander (IP Nos 5766,
8845) have been appointed joint administrators for Afonics
Fibreoptics Limited.  The appointment was made May 23, 2005.
The company manufactures electronic components.

CONTACT:  AFONICS FIBREOPTICS LIMITED
          16 Thorney Leys Business Park
          Witney, Oxfordshire OX28 4GW
          United Kingdom
          Phone: 44 01993 709030

          BAKER TILLY
          3rd & 4th Floors
          Temple Plaza
          Temple Row
          Birmingham
          West Midlands B2 5AF
          Phone: 0121 214 3100
          Fax: 0121 214 3101
          E-mail: hedleybrunt@hotmail.com


ALPHAFIELD LIMITED: Sets Creditors Meeting July 1
-------------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

               IN THE MATTER OF Alphafield Limited

A Meeting of Creditors of Alphafield Limited has been summoned
under section 146 of the Insolvency Act 1986 for the purpose of
receiving the final Liquidators' report of the winding-up and
determining whether the Joint Liquidators should be granted
their release under section 174 of the Insolvency Act 1986.

The Meeting will be held at 1 More London Place, London SE1 2AF,
on July 1, 2005, at 11:00 a.m.  A proxy form must be lodged with
me not later than June 30, 2005, to entitle you to vote by proxy
at the Meeting.

A. J. R. Wollsaton, Liquidator
May 27, 2005

CONTACT:  ERNST & YOUNG LLP
          1 More London Place
          London SE1 2AF
          Phone: +44 [0] 20 7951 2000
          Fax: +44 [0] 20 7951 1345
          Web site: http://www.ey.com


ARC RISK: Loss Widens Despite Brisk Sales
-----------------------------------------
ARC Risk Management Group plc has noted an increase in full year
loss despite the rise in its sales, said AFX News Friday.

In the full year to March, the company registered pretax loss of
GBP1.153 million from GBP925,246 a year earlier, while sales
jumped to GBP1.122 million from GBP971,427 in 2004.

The company, which provides security risk management services
through its three divisions, also disclosed it raised GBP320,000
through a placing of 32 million new shares at 1 pence each with
directors and other investors.

The extra working capital is necessary to augment revenues for a
healthy cash flow, as corporate restructuring prepares the
company for a positive year in 2005, it said.  ARC Risk
Management looks capable of achieving that, following major
agreements and the slash in its burn rate.

Chairman Simon Richards said: "We anticipate an increase in
positive newsflow as discussions with potential customers
crystallize into contracts and we look forward with confidence."

He is also counting on the contribution of its Red24 unit, which
provides online access to professional 24-hour security and
safety advice to its members.  Its ARC Risk Management division
provides insurance market services and corporate consulting,
while the ARC Training unit offers training courses in business
security and training management.

CONTACT:  ARC RISK MANAGEMENT GROUP PLC
          73 Watling St., 4th Fl.
          London
          EC4M 9BL, United Kingdom
          Phone: +44-207-332-5600
          Fax: +44-207-236-3918
          Web site: http://www.arcrisk.com


BRITISH NUCLEAR: 500 to Lose Jobs in Sellafield Restructuring
-------------------------------------------------------------
British Nuclear Group is about to embark on a second phase of
business improvement at Sellafield which continues the change in
mission on the site with increased future emphasis on clean-up.

Following the restructuring of the senior management group
earlier this year, the Company is now preparing to look for
efficiencies in the next layer of management and also to drive
out unnecessary bureaucracy from across the site.

This will ensure that the right skills are in place to operate
the site to the highest levels of safety and effectiveness.  It
will be achieved using a phased process over the next two years
but will still create opportunities to recruit graduates,
trainees, apprentices and special skills.

The site currently employs around 10,000 people but each year
around 200 leave through retirement or to work elsewhere.  This
is called natural wastage.  Over the next couple of years it is
anticipated that the managerial restructuring and general
business improvements will reduce the total number of staff by
approximately 500.  However, this is not a set quota or target
and the figure will be whatever results from the business
improvement process.  The Regulators would be fully consulted on
any changes that may affect safety under the Management of
Change arrangements.  Natural wastage and some limited voluntary
severance opportunities will enable the group to make the
necessary changes and leave room for some recruitment as well.
There will be no compulsory redundancies.

Barry Snelson, Managing Director of Sellafield, said: "This is
another step along the way of the change program at Sellafield
as we prepare for the future as a decommissioning and clean-up
organization.  Just as we did with the senior management
restructuring, we will achieve this with prudence, sensitivity
and always with safety as our guide."

This restructuring program has been under discussion with the
trades union and staff side representatives for some time.

CONTACT:  BRITISH NUCLEAR GROUP
          1100 Daresbury Park
          Daresbury
          Warrington
          WA4 4GB
          Phone: 01925 833030
          Web site: http://www.britishnucleargroup.com


C. H. BEAVIS: Hires Portland Business as Administrator
------------------------------------------------------
James Richard Tickell and Carl Derek Faulds (IP Nos 8125,
008767) have been appointed joint administrators for C. H.
Beavis & Partners Limited.  The appointment was made May 25,
2005.  The company is into civil engineering and construction.

CONTACT:  C. H. BEAVIS & PARTNERS LIMITED
          Southview Cottages,
          Newnham Road, Hook,
          Hampshire RG27 9LS
          Phone: 01256-762612

          PORTLAND BUSINESS & FINANCIAL SOLUTIONS LTD.
          1640 Parkway
          Solent Business Park
          Whiteley
          Fareham
          Hampshire PO15 7AH
          Phone: 01489 550 440
          E-mails: carl.faulds@portland-solutions.co.uk
                   james.tickell@portland-solutions.co.uk


CORUS GROUP: Loses Two Directors to Retirement
----------------------------------------------
As previously reported, Mr. Maarten van Veen and Mr. Stuart
Pettifor retired from the Board of Corus Group plc on 31 May
2005.

Maarten van Veen was appointed a non-executive director of the
Company in 1999 on the merger of British Steel plc and
Koninklijke Hoogovens N.V.  He is Chairman of the Health, Safety
and Environment committee and a member of the Remuneration
committee.

He joined the Board of Management of Koninklijke Hoogovens N.V.
in 1978 and was appointed Chairman in 1993.  He was appointed to
the Supervisory Board in 1998.  He is a member of the
Supervisory Boards of Koninklijke Volker Wessels Stevin N.V.
(Chairman), ABN AMRO Holdings N.V. and ABN AMRO Bank N.V. (Vice
Chairman), Akzo Nobel N.V. and Imtech N.V. (Vice Chairman).  He
is Chairman of the Royal Concertgebouw Orchestra.

Stuart Pettifor was appointed an Executive director of the
Company in September 2001 and became Chief Operating Officer in
March 2003.  He joined British Steel in 1963 and held a number
of senior positions within the Company prior to becoming
President and Chief Executive of Avesta Sheffield AB, a publicly
quoted subsidiary of British Steel, in 1997.  He remained in
this position until Avesta Sheffield AB merged with Outokumpu
Steel of Finland to form AvestaPolarit Oyj Abp in 2001 when he
became Deputy Chief Executive Officer and President, Coil
Products, of the new company.

                            *   *   *

In March, Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Corus to 'BB-' from 'B+' and
affirmed its 'B' short-term corporate credit rating.  The
outlook is stable.

At the same time, Standard & Poor's raised its senior secured
bank loan ratings on Corus to 'BB' from 'BB-', and its senior
unsecured debt ratings on Corus and Corus Finance PLC to 'B+'
from 'B-'.

The senior unsecured debt ratings on Corus and Corus Finance
have been raised by two notches, reflecting the one-notch
increase in the long-term corporate credit rating as well as
improved recovery prospects following a reduction in the group's
secured revolving credit facility to EUR800 million (US$1.07
billion) from EUR1 billion.

The ratings on Corus reflect the group's difficulties in
attaining cost competitiveness in its U.K. operations after
years of underinvestment.  Profitability remains weaker than
peers, highlighting a need for Corus to continue the drive for
cost reduction and efficiency improvements across the group and
to complete the restructuring of its U.K. asset base.  The
restructuring plans aim to restore competitiveness vis-a-vis
European competitors by the end of 2006.

CONTACT:  CORUS GROUP PLC
          30 Millbank
          London SW1P 4WY
          United Kingdom
          Phone: +44-20-7717-4444
          Fax: +44-20-7717-4455
          Web site: http://www.corusgroup.com

          National & Trade Media
          Annanya Sarin, Corporate Relations
          Phone: +44 20 7717 4532

          Wales Media
          John Kavanagh
          Phone: 01633 755140
                 07710 371323


CREATURE SHOP: U.S. Owner Feels Pinch of Weak Dollar
----------------------------------------------------
Creature Shop's 23 permanent staff and dozen more freelancers
could lose their jobs.  According to The Times Saturday, owner
Jim Henson Company is considering the closure of the London
studio to tax uncertainties and the weakening dollar.

Peter Schuber, president of the Jim Henson Company, said: "It is
much more about the tax incentives and lack thereof for doing
work in London, as well as the miserable dollar right now."  But
he clarified it was "premature to say everything is closing,"
although "everything is under review."

Mr. Schuber also said the parent company would continue working
in the United Kingdom, while noting the revision of section 48
tax benefits for films that cost more that GBP15 million makes
it "cheaper" for American filmmakers to work elsewhere.

Production is said to be more expensive by 30 percent than it
was 18 months ago with the falling of the dollar against the
pound.  The situation could trigger the decline of the British
film industry, according to analysts.

Meanwhile, the Film Council, representing the industry, is
currently discussing a framework for tax relief with the
Treasury, which is expected to be realized in the next few
weeks.

The Creature Shop, which opened in London 26 years ago, has made
popular characters for films ranging from Labyrinth to the
animatronic pig in Babe, and of course, The Muppets.

CONTACT:  CREATURE SHOP
          30 Oval Road
          Camden, London NW1 7DE
          Phone: +44(0)20 7428 4000
          Fax: +44(0)20 7428 4001
          E-mail: enquiries@jhcs.co.uk
          Web site: http://www.creatureshop.com


DAWSON INTERNATIONAL: Chairman Defends GBP450,000 Windfall
----------------------------------------------------------
Dawson International chairman Mike Hartley defended his half-
million pound paycheck, claiming he brought the group to its
"best shape it has been for years," The Scotsman says.

Mr. Hartley, who received a performance-related bonus of
GBP200,000 in addition to his basic salary of GBP250,000, said
that although GBP450,000 represents a "huge amount for a small
company," the figure covered his payment for 18 months, which he
initially deferred due to cash flow problems.  He said the bonus
was based on strict performance-related criteria, which
shareholders approved during Dawson's EGM in June 2004.  Mr.
Hartley claimed he achieved the criteria, which include the
disposal of certain assets like Ballantyne and the restructuring
of the group's finances.

Mr. Hartley said, "Getting GBP14.5 million for Ballantyne was
certainly a good achievement given the state of the market at
the time, while our financial status is undoubtedly healthier
than it's been for a long time."

With Mr. Hartley at the helm, the group's total debt has shrunk
from GBP25 million to around GBP10 million.  Mr. Hartley claimed
the company saved around GBP1 million in finance and legal costs
with him personally dealing with recent acquisitions and
disposals.

Dawson is currently facing GBP29.3 million in pension deficit,
no thanks to new FRS 17 reporting standards.  The gap increased
slightly during the year due to falling bond rates on the
measurement of liabilities.  Dawson plans to ask shareholders in
June to amend board's borrowing powers to deal with the pension
deficit.

CONTACT:  DAWSON INTERNATIONAL PLC
          Lochleven Mills
          Kinross
          KY13 8GL, United Kingdom
          Phone: +44-1577-867000
          Fax: +44-1577-867010
          Web site: http://www.dawson-international.co.uk


DISHLEY EXHIBITIONS: Hires Administrators from Elwell Watchorn
--------------------------------------------------------------
Paul Anthony Saxton and David John Watchorn (IP Nos 6680, 8686)
have been appointed joint administrators for Dishley Exhibitions
Ltd.  The appointment was made May 27, 2005.  The company is
into internal/external exhibition.  It also offers promotional
and advertising display services.  Its registered office is
located at Wolfhunt House, 18 High Street, Mansfield Woodhouse,
Nottinghamshire NG19 8AN.

CONTACT:  DISHLEY EXHIBITIONS LTD.
          PO Box 95
          Loughborough
          Leicestershire LE11 5ZJ
          United Kingdom
          Phone: 0845 130 27 37 (local rate)
          Fax: 01509 646583
          ISDN: 01509 210027
          24hr Helpline: 07850 251764
          Web site: http://www.dishley.co.uk

          ELWELL WATCHORN & SAXTON
          109 Swan Street,
          Sileby, Leicestershire, LE12 7NN
          Phone: (+44) 01509 815150
          Fax: (+44) 01509 815121
          E-mail: office@ews-insolvency.co.uk
          Web site: http://www.ews-insolvency.co.uk


EMPRESS HOMES: Liquidator to Present Final Report July
------------------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

             IN THE MATTER OF Empress Homes Limited

Notice is hereby given, pursuant to Section 146 of the
Insolvency Act 1986, that a Final Meetings of Creditors and
Members of Empress Homes Limited will be held within the offices
of PKF (UK) LLP, Accountants & business advisers, 78 Carlton
Place, Glasgow G5 9TH on July 13, 2005 at 11:00 a.m. and 11:30
a.m. respectively for the purposes of receiving the Liquidator's
Report on the conduct of the winding-up, to determine the manner
in which the books, accounts and documents of the Company should
be disposed of, and determining whether, in terms of Section 174
of the Insolvency Act 1986, the Liquidator should receive his
release.

Any creditor entitled to attend and vote at the Meeting is
entitled to appoint a proxy to attend and vote in their stead,
and such proxy need not be a creditor.  A proxy to be used at
the Meeting must be lodged with me at PKF (UK) LLP, Accountants
& business advisers, 78 Carlton Place, Glasgow G5 9TH, before or
at the Meeting at which it is to be used.

Bryan Jackson, Liquidator

CONTACT:  PKF
          78 Carlton Place
          Glasgow G5 9TH
          Phone: 0141 429 5900
          Fax: 0141 429 5901
          E-mail: info.glasgow@uk.pkf.com
          Web site: http://www.pkf.co.uk

          Bryan Alan Jackson
          E-mail: bryan.jackson@uk.pkf.com


NORTHERN FOODS: Names New Finance Director
------------------------------------------
Jez Maiden will join the board of Northern Foods plc, at a date
to be confirmed, as Group Finance Director.  He is currently
Group Finance Director of British Vita plc, a position he has
held since 2002.  Prior to that, he was Director of Finance of
Britannia Building Society and Group Finance Director of Hickson
International plc.

David Nish will also join the board on 1 July 2005 as a non-
executive director and Chairman of the Audit Committee.  He is
Executive Director, Infrastructure of Scottish Power plc, and
was prior to that, Group Finance Director, a position that he
held since 1999.

The appointment of David Nish follows the announcement on 28
February 2005 that Peter Blackburn CBE will retire as Chairman
and from the board at the Company's AGM on 21 July 2005.  He
will be succeeded by current Deputy Chairman, Anthony Hobson.
At that time, Colin Dyer will become Deputy Chairman and Orna Ni
Chionna will become the Senior Independent Director and Chair of
the Remuneration Committee.

Peter Blackburn said: "We are delighted to welcome Jez and David
to Northern Foods.  They bring a wealth of strategic, operating
and financial expertise and we look forward to their
contribution during this period of major change for the
business.  Similarly, I am equally pleased that the new roles
for Colin and Orna will ensure continuity at board level.
Finally, I would also like to thank Ian Ellis for his invaluable
contribution as Head of Finance over the past year."

                            *   *   *

Northern Foods began restructuring and refocusing its business
in Autumn 2003.  It appointed Chief Executive, Pat O'Driscoll,
at the end of March 2004.  In the last 12 months, it launched a
comprehensive strategic review of the business, established a
new management team, and simplified its business structure and
factory reorganization.

CONTACT:  NORTHERN FOODS PLC
          2180 Century Way, Thorpe Park
          Leeds
          LS15 8ZB, United Kingdom
          Phone: +44-113-390-0110
          Fax: +44-113-390-0211
          Web site: http://www.northern-foods.co.uk


RENTOKIL INITIAL: Names Chief Financial Officer
-----------------------------------------------
Rentokil Initial plc has appointed Andrew Macfarlane as Chief
Financial Officer with effect from September 9.

Mr. Macfarlane will join the group on August 8 and will have a
hand-over period with the current Finance Director, Roger Payne
who is retiring.

Mr. Macfarlane is currently Group Finance Director of Land
Securities, where he has been since 2001, having joined to help
implement a new strategy and to strengthen the contribution of
the group's finance function.

Aged 48, he brings a wide range of financial and transactional
experience across a broad spectrum of industries both in the
U.K. and abroad, having worked for Coopers & Lybrand, Ernst
&Young and more recently Bass (now InterContinental Hotels
Group).

Rentokil Initial's Chief Executive, Doug Flynn, said: "I am
delighted that Andrew will be joining at this challenging and
exciting time.  Andrew's experience in a number of important
areas will be extremely valuable to me and the management team
as we work to revive the company's fortunes."

                            *   *   *

Shareholders have recently approved the proposed scheme of
arrangement to introduce a new listed holding company, Rentokil
Initial 2005 plc, which will be renamed Rentokil Initial plc
upon the Scheme becoming effective.

The issued ordinary share capital of New Rentokil Initial is
expected to be admitted to the Official List and to trading on
the London Stock Exchange's market for listed securities at 8:00
a.m. on 21 June 2005.  It is also expected that Rentokil Initial
ordinary shares will be delisted at that time.

CONTACT:  RENTOKIL INITIAL PLC
          Felcourt
          East Grinstead
          West Sussex RH19 2JY
          Phone: +44-1342-833-022
          Fax: +44-1342-326-229
          E-mail: pr@rentokil-initial.co.uk
          Web site: http://www.rentokil-initial.com

          Roger Payne, Finance Director
          Phone: 01342 833022


RICHARD PORCH: Creditors Meeting Set Later this Month
-----------------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

   IN THE MATTER OF Richard B. Porch & Co. (Shefford) Limited

Notice is hereby given, pursuant to section 146 of the
Insolvency Act 1986, that a Meeting of the Creditors of Richard
B. Porch & Co. (Shefford) Limited will be held at RSM Robson
Rhodes LLP, Colwyn Chambers, 19 York Street, Manchester M2 3BA,
on June 28, 2005, at 10:00 a.m. for the purpose of receiving the
Liquidator's report of the winding-up and determining whether
the Liquidator should be released under section 174 of the
Insolvency Act 1986.  A Creditor entitled to attend and vote at
the Meeting may appoint a proxy to attend and vote in his place.
It is not necessary for the proxy to be a Creditor. Proxy forms
must be returned to RSM Robson Rhodes LLP, 186 City Road, London
EC1V 2NU, by not later than 12:00 noon on June 27, 2005.

M. J. Hore, Liquidator
May 25, 2005

CONTACT:  RSM ROBSON RHODES LLP
          Colwyn Chambers
          19 York Street
          Manchester M2 3BA
          Phone: +44 (0)161 236 3777
          Fax: +44 (0)161 455 3444
          Web site: http://www.rsmi.co.uk


SCOTTISH POWER: Potential Buyers Hover over
-------------------------------------------
Utility giants Centrica and E.On might lodge take over offers
for ScottishPower plc sometime next year, according to The
Scotsman.

ScottishPower was subject of takeover speculations in the U.K.
after the sale last week of its U.S. arm PacificCorp to American
billionaire Warren Buffet for a net loss of GBP442 million.  The
US$9.4 billion (GBP5.1 billion) disposal took about two-thirds
off its value.

But analysts think an acquisition by a U.K. player could meet
face tough problems with regulator Ofgem, which is intent on
maintaining tight competition on the power supply sector.

Centrica, which is the owner of British gas and Scottish Gas,
captures 57% of the gas market share in the U.K.  German E.On's
Powergen has nearly half of that, which is just a little bigger
than ScottishPower's.

One City energy analyst said the scenario is difficult but not
impossible, according to the report.  For instance,
ScottishPower may be broken up with Centrica taking control of
the generation and network assets; the supply business could be
sold to an overseas player or venture capitalist group.

The sale of PacifiCorp could take between 12 and 18 months to
complete, giving the prospective buyers enough time to plot an
acquisition strategy.

CONTACT:  SCOTTISH POWER PLC
          1 Atlantic Quay
          Glasgow
          G2 8SP, United Kingdom
          Phone: +44-141-248-8200
          Fax: +44-141-248-8300
          Web site: http://www.scottishpower.plc.uk

          Jennifer Lawton, Head of Investor Relations
          Phone: 0141 636 4527

          David Ross, Investor Relations Manager
          Phone: 0141 566 4853

          Colin McSeveny, Group Media Relations Manager
          Phone: 0141 636 4515


TALARIAN LIMITED: Hires Grant Thornton Liquidator
-------------------------------------------------
At the meeting of Talarian Limited on April 25, 2005, the
resolution to wind up the company was passed.  Andrew Conquest
of Grant Thornton UK LLP, Grant Thornton House, Melton Street,
Euston Square, London NW1 2EP has been appointed liquidator of
the company.

                            *   *   *

In March 2, 1998 Talarian Limited was previously named Cutting
Point Limited.

CONTACT:  TALARIAN LTD.
          100 New Bridge Street
          LONDON EC4V 6JA
          Company No. 03513106

          GRANT THORNTON U.K. LLP
          Grant Thornton House
          Melton Street
          Euston Square
          London NW1 2EP
          Phone: 020 7383 5100
          Fax: 020 7383 4715
          Web site: http://www.grant-thornton.co.uk


TELEWEST GLOBAL: Viacom Eyes Flextech's Cable Channels
------------------------------------------------------
Cable channels from Telewest Global Inc. have attracted a bid
interest by New York-based Viacom Inc., said the Wall Street
Journal Sunday, quoting a person privy to the deal.

Telewest's Flextech unit is likely to put channels such as
Living and Challenge up for sale with the company's merger with
NTL Corp., in the wake of Telewest's restructuring under a U.K.
bankruptcy protection last year.

The Sunday Times earlier revealed Viacom was interested in the
channels, which could be valued at GBP800 million, while the
newspaper notes other bidders may follow.

The move is said to be part of Viacom's plans to widen its
global cable presence by introducing new channels
internationally.  In 2004, it acquired a majority stake in
German music channel Viva.

The company, which owns MTV, CBS, and Paramount Pictures, also
mulls separating its cable and movie studio ventures from the
broadcast and radio operations.

On Friday, Viacom's Class B shares plunged US 5 cents, closing
at US$34 on the New York Stock Exchange.  Shares in Telewest, on
the other hand, closed at US$21 on Nasdaq, lower by 14 cents.

CONTACT:  TELEWEST GLOBAL, INC.
          160 Great Portland St.
          London
          W1W 5QA, United Kingdom
          Phone: +44-20-7299-5000
          Fax: +44-20-7299-5495
          Web site: http://www.telewest.co.uk

          VIACOM INC.
          New York, NY 10036
          Phone: 212-258-6000
          Fax: 212-258-6464
          Web site: http://www.viacom.com

          NTL INCORPORATED
          Bartley Wood Business Park
          Bartley Way
          Hook
          Hampshire R627 9UP
          Phone: +44-1256-75-2000
          Fax: +44-1256-75-4100
          Web site: http://www.ntl.com


VEDANTA RESOURCES: Issuing Final Dividend of US11.55
----------------------------------------------------
The Board of Directors of Vedanta Resources plc recommended a
final dividend of US11.55 cents per Ordinary Share on 2 June
2005 in respect of the year ended 31 March 2005.  Subject to the
approval of shareholders at the Company's Annual General Meeting
to be held on 3 August 2005, the final dividend will be paid out
in U.S. dollars on 19 August 2005 to those shareholders on the
Register on 22 July 2005.

Shareholders may elect to receive the dividend in U.K. pounds
sterling if they wish.  The Board has determined that the
exchange rate to be applied to convert the dividend into U.K.
pounds will be GBP0.550 to the U.S. dollar, equating to 6.3525
pence per Ordinary Share.  This exchange rate is based on the
average exchange rate for the five business days prior to the
announcement of the Company's results on 2 June 2005.

Shareholders wishing to receive their dividends in U.K. pounds
sterling should notify the Company's Registrars by 5 August
2005.  The Company's Registrars can also arrange for dividends
to paid direct into shareholders' U.K. bank accounts.  This
arrangement will only be available in respect of dividends paid
in U.K. pounds sterling.

The Company's Registrars are Computershare Investor Services PLC
and can be contacted at PO Box 82, The Pavilions, Bridgwater
Road, Bristol BS99 7NH or on telephone number +44 (0) 870 702
0000.

CONTACT:  VEDANTA RESOURCES PLC
          44 Hill Street Mayfair
          London
          United Kingdom
          W1J 5NX
          Phone: +44 20 7629 6070
          Fax: +44 20 7629 7426
          Web site: http://www.vedantaresources.com

          Investor Relations
          John Smelt, Head
          Phone: +44 20 7499 5900
                 +44 787 964 2675

          James Murgatroyd
          Robin Walker
          Finsbury
          Phone: +44 20 7251 3801


WM MORRISON: To Sell 12 Safeway Stores in Ireland
-------------------------------------------------
Wm Morrison Supermarkets PLC revealed Monday the sale by Safeway
Stores (Ireland) Limited of twelve stores and the benefit of
four development agreements in Northern Ireland to Asda Stores
Limited.

The aggregate price payable by Asda is GBP73.6 million in cash
plus the value of fuel stocks at the properties on completion.
The transaction is conditional upon OFT approval and the
obtaining of certain third party consents.  Completion is
expected to take place over a ten-week period commencing in
September 2005.

The 12 stores which are subject to the sale are Ballyclare,
Bangor, Belfast - Shore Road, Belfast - Westwood, Coleraine,
Cookstown, Dundonald, Enniskillen, Kilkeel, Newtownards, Omagh,
and Strabane.

The disposals are in line with Morrisons strategy of
concentrating on its mainland U.K. network.

CONTACT:  WM MORRISON SUPERMARKETS PLC
          Hilmore House
          Thornton Road
          Bradford
          West Yorkshire
          England
          BD8 9AX
          Phone: +44 1274 494166
          Fax: +44 1274 494831
          Web site: http://www.morereasons.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                              (421)       1,700      183


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
Genesys S.A.              GNS.PA     (15)         136        3
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)


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
Numico N.V.               NUMC      (422)       1,982      376
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
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


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      (24)       2,686     (420)
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     (1,411)       3,235     (252)
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                        (963)       4,861      882
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L     (26)       1,176     (182)
Jessops Plc               JSP.L      (14)         321        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    (1,613)       2,199     (463)
Orange Plc                ORNGF     (594)       2,902        7
PD Ports Plc              PDP.L     (282)         361        0
Premier Foods Plc         PFD.L      (29)       1,059       20
Probus Estates Plc        PBE.L      (28)         113      (35)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,072)       3,382      (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.


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