TCREUR_Public/050627.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Monday, June 27, 2005, Vol. 6, No. 125

                            Headlines

C Z E C H   R E P U B L I C

CZECH AIRLINES: Reports CZK324.2 Million Full-year Profit
IP BANKA: Court Invalidates Board Reshuffle, Name Change


G E R M A N Y

A-DIRECT GESELLSCHAFT: Proofs of Claim Deadline July 15
AUTOHAUS REHSE: Mannheim Court Appoints Interim Administrator
D'AGNONE AGENTUR: Advertising Firm Declares Bankruptcy
DAIMLERCHRYSLER AG: Expects Profit to Double in Four Years
EKRA EDUARD: Screen Printing Specialist Declared Bankrupt

ENDLER & PRANGEMEIER: Creditors' Claims Due Next Month
FJH AG: Full-year Losses Balloon to EUR122.5 Million
HOLZFACHZENTRUM GSCHWANDER: Creditors' Claims Due July 6
IHG IMMOBILIEN: Sets Creditors Meeting July 25
INFINEON TECHNOLOGIES: Selling DRAM Unit, Says Report

KARSTADTQUELLE AG: Sells Golf House for EUR23 Million
KUEHN ELEKTROINSTALLATIONEN: Court to Verify Claims October
SEKTOR ONLINE: Court Appoints Dr. Andres Administrator
SOTILLO SCHIEFER: Under Bankruptcy Proceedings


N E T H E R L A N D S

NUMICO N.V.: Acquires Full Ownership of Mellin S.p.A.
NUMICO N.V.: Closes US$425 Million Notes Offering
ROYAL SHELL: Nigerian Communities Sue to Protect Air


R O M A N I A

CFR MARFA: Moody's Reviews Rating for Possible Upgrade


R U S S I A

ALROSA COMPANY: Ratings Up to Ba2/Ba3 Under Moody's New Criteria
YUKOS OIL: Court to Consider Claims Related to Unit's Sale July
YUKOS OIL: Elects New Directors to Board


S W E D E N

SAS AB: Subordinated Debt Raised to B3 from Caa1


S W I T Z E R L A N D

SWISS INTERNATIONAL: AirTrust Acquires 98.7% of Share Capital


U K R A I N E

NAK NAFTOGAZ: Moody's Raises Rating to Ba2
UKRSIBBANK: US$125 Million Eurobond Rated 'B-'


U N I T E D   K I N G D O M

ACORN HIPFLASKS: Calls in Liquidator from Nottingham Watson
ADAMS BROS.: Files for Liquidation
A.R.D. ELECTRONICS: Hires Administrator from Ideal Corporate
BAL CONSTRUCTION: Names Nottingham Watson Liquidator
BRISTOL-MYERS SQUIBB: Members Final Meeting Set August

BUCKLEY ELEMENTS: Liquidator from Walletts Insolvency Moves in
CULPEPER LIMITED: Creditors Meeting Set Next Week
DERBY NEW: Members Final Meeting Set Third Week of July
D.N. AND A.M. DANIELS: Hires Grant Thornton as Administrator
DUNHOLM PUBLICITY: Sets General Meeting Next Month

FEDERAL-MOGUL: U.K. Court Offers Directions on Legal Issues
FEDERAL-MOGUL: District Court Lifts Navigant Fee Cap Estimate
FEDERAL-MOGUL: PD Panel Presents Expert at Estimation Trial
GENERAL BRIDGE: Names Price & Co Liquidator
HAVERSTOE BUILDING: Sets Creditors Meeting Friday

HEPBURN HOLDINGS: Members Okay Winding-up Resolutions
HIRAM WILD: Members Opt for Liquidation
IGNIUS LIMITED: Members Pass Extraordinary Resolution
INMARSAT PLC: Appoints Three New Non-executive Directors
INNISFAIL LAUNDRY: Hires Liquidators from Rothman Pantall & Co.

MCA PAYROLL: Liquidator From Thorntonrones Moves in
MOWLEM PLC: New Chairman to Assume Post Next Month
MYTRAVEL GROUP: Pre-tax Loss Down to GBP114 Million
MYTRAVEL GROUP: Sells Hotel Interests for EUR57.75 Million
NU SPIRIT: Hires Liquidator from Grant Thornton

PROFILE MEDIA: Gives up U.S. Arm to Focus on U.K. Operations
RAMCO ENERGY: Splits Chairman, CEO Posts
REGENTREALM LIMITED: Senior Unsecured Rating Lowered to 'B-'
RIVER TEES: Names Administrator from Tenon Recovery
ROYAL & SUN ALLIANCE: Sells 21.5% Stake in Rothschilds

SCATS FEEDS: Liquidator from Grant Thornton Moves in
SFI GROUP: Falls into Administration
VECTURA GROUP: Pre-tax Loss Down to GBP8.8 Million


                            *********


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


CZECH AIRLINES: Reports CZK324.2 Million Full-year Profit
---------------------------------------------------------
Czech Airlines reported an audited net profit of CZK324.2 million
in 2004.  Using the International Financial Reporting Standards
(IFRS), the profit came to US$22.9 million.

"IATA (International Air Transport Association) has put CSA on
its list of fastest growing airlines in 2004.  Despite the
current turbulent environment, influenced mostly by the steep
rise in oil prices, we succeeded in increasing our level of
profit and improving our operating results as well," says
Jaroslav Tvrdik, President and Chairman of Czech Airlines.

Other transport figures, such as the number of carried
passengers, also grew dynamically.  The airline extended its
network by adding 10 new destinations in 2004 and increased
flight frequencies to 19 cities.  These moves increased passenger
traffic to 4.34 million, representing a year-on-year increase of
20.6%.  CSA also achieved significant success by re-entering the
charter market, where it holds a 20% share, in 2004.

Pursuant to its fleet extension plan, CSA obtained 10 aircraft in
2004, ending the year with 45 airplanes in total.  The company
puts a high emphasis on modernizing its fleet to increase
competitiveness and reduce costs.

In terms of on-time performance, Czech Airlines ranked 6th on the
AEA (Association of European Airlines) annual chart for 2004.
The strategic goal of the company was to reach 7th place by 2006,
hence this represents another expectation exceeded, thanks to
CSA's highly proficient and responsible employees.

CONTACT:  CESKE AEROLINIE A.S.
          Prague Ruzyni Airport
          160 08 Prague, 6, Czech Republic
          Phone: +42 220 104 310
          Fax:   +42 224 81 04 26
          Web site: http://www.csa.cz


IP BANKA: Court Invalidates Board Reshuffle, Name Change
--------------------------------------------------------
The Municipal Court in Prague has ruled invalid the change of
name of bankrupt securities IP Banka to IP Exit, Czech News
Agency says.

The court likewise declared invalid the shakeup in the board of
directors and supervisory board, according to former board member
Tomas Kopriva.  These changes were made during the group's annual
general meeting in July 2004 pursuant to an order by CNB, the
country's central bank.  Troubled Company Reporter said on July
20, 2004 that Ceskoslovenska obchodni banka (CSOB), IP Banka's
new majority owner, had called for the meeting to push for
changes in the composition of both boards.

The ruling is not yet effective.  CSOB has declined to comment on
the matter.

CONTACT:  IP BANKA a.s.
          6410 V Celnici 10 Praha 1
          117 21
          Phone: 221033131
          Fax: 221033150
          Web site: http://www.ipbanka.cz


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


A-DIRECT GESELLSCHAFT: Proofs of Claim Deadline July 15
-------------------------------------------------------
The district court of Hamburg opened bankruptcy proceedings
against a-direct Gesellschaft fuer Personalmanagement mbH on June
1.  Consequently, all pending proceedings against the company
have been automatically stayed.  Creditors have until July 15,
2005 to register their claims with court-appointed provisional
administrator Dr. Sven-Holger Undritz.

Creditors and other interested parties are encouraged to attend
the meeting on August 12, 2005, 12:20 p.m. at the district court
of Hamburg, Insolvenzgericht, Weidestrasse 122d, 22083 Hamburg,
Saal 1, 2. Ebene (Zi. 2.18), at which time the administrator will
present his first report of the insolvency proceedings.  The
court will also verify the claims set out in the administrator's
report during this meeting, while creditors may constitute a
creditors committee and or opt to appoint a new insolvency
manager.

A-direct provides personnel management services in Hamburg and
Duesseldorf.  Its portfolio comprises personnel settlement,
acceptance of projects (outsourcing) as well as training and
continued educational measures.  Through the specialized
departments a-direct IT, a-direct Medical, a-direct Commercial
and a-direct SAP, the company features appropriate knowledge of
the respective requests and over contacts to corresponding
businesses and applicants.  Visit http://www.a-direct-gmbh.defor
more information.

CONTACT: A-DIRECT GESELLSCHAFT
         FUER PERSONALMANAGEMENT MBH
         Reesendamm 3 / Ecke Jungfernstieg
         20095 Hamburg
         Contact:
         Wolfgang Fries and Olaf Makus, Managers
         Phone: 040 - 300 96 - 10
         Fax: 040 - 300 96 - 59
         E-mail: kontakt@a-direct-gmbh.de

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


AUTOHAUS REHSE: Mannheim Court Appoints Interim Administrator
-------------------------------------------------------------
The district court of Mannheim opened bankruptcy proceedings
against Autohaus Rehse GmbH on June 1.  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 Tobias Hoefer.

Creditors and other interested parties are encouraged to attend
the meeting on Aug. 29, 2005, 10:45 a.m. at the district court of
Mannheim, 68149 Mannheim, Schloss, Westfluegel, 2. Stockwerk,
Raum 232 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.  Visit
http://www.rehse.de/for more information.

CONTACT:  AUTOHAUS REHSE GMBH
          Karl-Josef Rehse
          Saarburger Ring 19-21, 68229 Mannheim

          Tobias Hoefer, Administrator
          Soldnerstr. 2, 68219 Mannheim
          Phone: 0621/877080


D'AGNONE AGENTUR: Advertising Firm Declares Bankruptcy
------------------------------------------------------
The district court of Bonn opened bankruptcy proceedings against
D'Agnone Agentur fuer Kommunikation und Druck GmbH on June 10.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until July 25, 2005 to
register their claims with court-appointed provisional
administrator Dr. Christian Frystatzki.

Creditors and other interested parties are encouraged to attend
the meeting on September 2, 2005, 10:00 a.m. at the district
court of Bonn, Insolvenzgericht, Wilhelmstrasse 21, 53111 Bonn,
2. Stock, Saal S 2.22, 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.

D'Agnone Agentur provides advertising and other related products
and services.

CONTACT:  D'AGNONE AGENTUR FUER KOMMUNIKATION UND DRUCK GMBH
          Dickstrasse 10, 53773 Hennef
          Contact:
          Uwe D'Agnone, Manager
          Phone: +49 (2242) 925 70
          Fax: +49 (2242) 92 57 70

          Dr. Christian Frystatzki, Administrator
          Sankt Augustiner Strasse 94 a, 53225 Bonn
          Phone: 0228/ 40 09 40
          Fax: 40 09 479


DAIMLERCHRYSLER AG: Expects Profit to Double in Four Years
----------------------------------------------------------
By 2008, DaimlerChrysler AG would be looking at profits of
EUR11.2 billion, Focus-Money reported recently.

According to the German magazine, the company projects last
year's operating profit of EUR5.75 billion to double in four
years.  The figures allegedly come from internal planning
documents obtained by the magazine, Reuters said in a separate
report.  The company has refused to confirm or deny them.

Focus-Money said that DaimlerChrysler's Mercedes division targets
an operating profit of EUR4.7 billion by 2008, counting on the
EUR300 million contribution by its Smart venture.  It added
U.S.-based Chrysler group aims to book EUR2.3 billion in profit
on top of the EUR2 billion and EUR2.2 billion from the commercial
vehicles business and its services operations, respectively.

The report follows the release of a study made by the European
Automobile Manufacturers, which shows a 12.8% drop in Mercedes'
market share in May.

DaimlerChrysler has predicted operating profit to increase
slightly this year despite a EUR1.2 billion charge to account for
the restructuring of its Smart venture.  This venture has already
cost the group EUR512 million and Daimler said it could miss
annual sales goal of 80,000 units, as sales in the first quarter
only came to 14,500.  The company has recalled 58,000 of its
forTwo models in Germany for possible defects.

CONTACT:  DAIMLERCHRYSLER AG
          70546 Stuttgart, Germany
          Phone: +49 711 17 0
          Fax: +49 711 17 22244
          Web site: http://www.daimlerchrysler.com


EKRA EDUARD: Screen Printing Specialist Declared Bankrupt
---------------------------------------------------------
The district court of Heilbronn opened bankruptcy proceedings
against EKRA Eduard Kraft GmbH on June 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until July 29, 2005 to register their
claims with court-appointed provisional administrator Gerhard
Tonhauser.

Creditors and other interested parties are encouraged to attend
the meeting on July 13, 2005, 10:30 a.m. at the district court of
Heilbronn, 74072 Heilbronn, Rollwagstr. 10 A, Erdgeschoss, Saal 4
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 Aug. 29, 2005, 10:30 a.m. at
the same venue.

EKRA is a leading manufacturer of screen printers in Germany,
with more than 2,500 installations to account for.  It has been
in business for the past fifty years.  EKRA is also present in
Asia, and America.  Visit http://ww.ekra.comfor more
information.

CONTACT:  EKRA EDUARD KRAFT GMBH
          Contact:
          Karl-Heinz Metz
          Sonja Kraft-Metz
          Zeppelinstr. 16, 74357 Bonnigheim
          Phone: +49 (0) 71 43 88 44-0
          Fax: +49 (0) 71 43 88 44-22
          Web site: http://ww.ekra.com

          Gerhard Tonhauser, Administrator
          Moltkestr. 40, 74072 Heilbronn


ENDLER & PRANGEMEIER: Creditors' Claims Due Next Month
------------------------------------------------------
The district court of Fuerth opened bankruptcy proceedings
against Endler & Prangemeier Software GmbH on June 9.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until July 27, 2005 to
register their claims with court-appointed provisional
administrator Joachim Exner.

Creditors and other interested parties are encouraged to attend
the meeting on September 5, 2005, 9:30 a.m. at the district court
of Fuerth, Zi. 216/II, Dienstgebaude Baumenstrasse 28, 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:  ENDLER & PRANGEMEIER SOFTWARE GMBH
          Junker-Bleymann-Str. 13
          91466 Gerhardshofen
          Phone: 09163 996763

     Joachim Exner, Administrator
          Stahlstrasse 17, 90411 Nuernberg
          Phone: 0911/9512850
          Fax: 0911/95128510


FJH AG: Full-year Losses Balloon to EUR122.5 Million
----------------------------------------------------
The Executive Board of consulting and software firm FJH AG has
released results for 2004.

According to these results, the year was marked by several
special factors.  Business suffered from the persistent
reluctance of the insurance sector to invest.  Its pension
schemes business also failed to develop as expected.

Costs associated with the extensive restructuring measures
started in the middle of the year, together with one-off special
depreciations, also influenced the result.

Group revenues, following IFRS, stood at EUR67.7 million (2003:
EUR120.1 million), while the result after tax stood at -EUR122.5
million (2003: EUR4.3 million) and the EBIT at -EUR123.2 million
(2003: EUR6.4 million).

Adjusted for a number of one-off and final-time effects such as
special expenditure for personnel measures, depreciations in
relation to the sale of Heubeck AG, the use of stricter criteria
in the IFRS balance sheet reporting process and accruals for
impending losses, the 2004 EBITDA would have amounted to
-EUR17.1 million.  The operating cash flow amounted to -EUR10.1
million.  FJH AG's equity capital, according to the German
Commercial Code (HGB), stands at EUR10.5 million.

The way 2005 has progressed so far indicates that the measures
introduced are starting to make an impact.  The company expects
that the first quarter of 2005 will show a positive EBIT.

As a response to the persistently weak market, the company
introduced an extensive restructuring program back in mid-2004.
The main thrust of these activities involved focusing on the
group's core areas of expertise in the life assurance sector.

As part of these measures, Heubeck AG was sold with effect from
December 30, 2004, since realizing the synergies would have tied
up management capacities and capital for some considerable time.
The cost-cutting measures that have been started in the previous
year were also stepped up, and human resources capacities
adjusted to the changed market conditions.

Including the redundancies with effect from December 31, 2004 and
the sale of Heubeck AG, the number of employees was reduced by
around 370 to 667, which corresponds to around a third of the
workforce.  This caused special expenditure of around EUR3
million, but will lead to cost savings of around EUR12 million in
2005.  Other special expenditures of around EUR17.6 million
occurred for depreciations associated with the sale of Heubeck
AG.

In the third quarter, a revaluation of software projects was
started.  In the context of the third-party-administration of so
called Riester pensions, the actual number of policies that lies
below the original estimates of the insurers was taken as a basis
for the assessment.  The new, stricter criteria were applied for
the Software Revenue Recognition.  This led to a significant
value correction in the balance sheet item "Accounts receivable."
With the closure of the third quarter, these balance sheet
activities accounted for some EUR56 million, while in the fourth
quarter, further corrections of around EUR9.5 million were made.
EUR2.5 million of these were associated with the
third-party-administration activities.

As part of the ongoing restructuring program, the company sold a
license extension for an administration system to BHW
Lebensversicherungs AG in June 2005.  This system has been
developed for BHW over recent years.  All in all, FJH will
achieve net revenues of around EUR2.6 million from this
transaction.  The maintenance and further development of the
system will in future be handled by the Brain Force Group, which
will also take on a number of FJH employees who have worked on
the project.

With the presentation of the year's results, the previously
announced changes on the Executive Board became effective.
Ulrich Korff took over the position of CEO from Prof. Dr. Manfred
Feilmeier.  Also longstanding FJH employee Thomas Junold was
promoted from management level to Member of the Board.

CONTACT:  FJH AG
          Leonhard-Moll-Bogen 10
          81373 Munich
          Germany
          Phone: +49 (0) 89 769 01 - 144
          Fax: + 49 (0) 89 743 717 31
          E-mail: thomas.meindl@fjh.com
          Web site: http://www.fjh.com


HOLZFACHZENTRUM GSCHWANDER: Creditors' Claims Due July 6
--------------------------------------------------------
The district court of Mannheim opened bankruptcy proceedings
against Holzfachzentrum Gschwander GmbH on June 1.  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 Tobias Hoefer.

Creditors and other interested parties are encouraged to attend
the meeting on Aug. 29, 2005, 10:00 a.m. at the district court of
Mannheim, 68149 Mannheim, Schloss, Westfluegel, 2. Stockwerk,
Raum 232 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.

Visit http://www.gschwander-holz.de/for more information.

CONTACT:  HOLZFACHZENTRUM GSCHWANDER GMBH
          Contact:
          Klaus Gschwander
          Michael Jager
          Carl-Benz-Str. 2, 69198 Schriesheim
          Web site: http://www.gschwander-holz.de/

          Tobias Hoefer, Administrator
          Soldnerstr. 2, 68219 Mannheim
          Phone: 0621/877080


IHG IMMOBILIEN: Sets Creditors Meeting July 25
----------------------------------------------
The district court of Muenchen opened bankruptcy proceedings
against IHG Immobilien Handelsges. mbH on May 18.  Consequently,
all pending proceedings against the company have been
automatically stayed.  Creditors had until June 24, 2005 to
register their claims with court-appointed provisional
administrator Dr. Josef Hingerl.

Creditors and other interested parties are encouraged to attend
the meeting on July 25, 2005, 9:40 a.m. at Infanteriestr. 5,
Sitzungssaal 102. Amtsgericht Muenchen 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:  IHG IMMOBILIEN HANDELSGES. MBH
          Geschwister-Scholl-Ring 14 in 82110 Germering

          Dr. Josef Hingerl, Administrator
          Terminalstrasse, Mitte 18 (MAC), Ebene 7
          Buero 7375, 85356 Muenchen-Flughafen
          Phone: 089/9758230-0
          Fax: 089/9758230-6

          IMMOBILIEN HANDELS GESELLSCHAFT MBH
          Pfaffstr. 2
          D-74189 Weinsberg
          Phone: 07134-91 07 10
          Fax:  07134-91 07 50
          E-mail: info@ihg.ag
          Web site: http://www.ihg.ag/


INFINEON TECHNOLOGIES: Selling DRAM Unit, Says Report
-----------------------------------------------------
Semiconductor manufacturer Infineon Technologies is considering
the sale of its troubled memory chip (DRAM) unit, Handelsblatt
says.

The group might also spin off the unit, possibly placing it on
the stock market either in September or October, according to the
daily.  Observers say Infineon could also look for a partner from
the memory chip industry.

Former head Ulrich Schumacher had originally proposed the
spin-off, which met strong opposition that eventually led to his
resignation in March 2004.  The DRAM industry is currently
struggling as production cost exceeds current prices.

Chief executive Wolfgang Ziebart denies the report.

CONTACT:  INFINEON TECHNOLOGIES AG
          St. Martin Str. 53
          81669 Munich
          Phone: +49-89-234-0
          Fax: +49-89-234-2-84-82
          Web site: http://www.infineon.com


KARSTADTQUELLE AG: Sells Golf House for EUR23 Million
-----------------------------------------------------
The sale process for the specialty retail chains of the
KarstadtQuelle Group is proceeding as planned.

Germany's leading provider of golf articles, Golf House GmbH, has
been sold to ARQUES Industries AG, Starnberg, effective June 21,
2005.  Golf House GmbH has a total of 19 branches in Germany and
a Golf House branch in Marbella/Spain.  Furthermore, Golf House
also operates mail order business.  In 2004, Golf House employed
a staff of 165 people in Germany and eight employees in Spain,
generating net sales of around EUR23 million.

"By selling Golf House, we are continuing our divestment program
as scheduled," said the Chief Financial Officer of KarstadtQuelle
AG, Harald Pinger, on Tuesday in Essen.

"We are systematically staying by our course of restructuring and
reorienting the Group."

"This transaction again shows that ARQUES has established itself
as a strong partner for international corporations hiving off
non-core activities," stated ARQUES Director Dr. Martin
Vorderwuelbecke.

"In Golf House, we have added another interesting brand to our
portfolio.  As a fashionable sport, there is a great deal of
potential in golf and ARQUES will be focusing intensively on
developing and expanding this business."

In addition to selling the specialty retail chains Sinn Leffers,
Wehmeyer and Runners Point, KarstadtQuelle AG is planning to
dispose of the 75 department stores of Karstadt Kompakt GmbH by
the end of the third quarter of 2005.  Here, the Company is
currently implementing the final bidding procedure. Four bidders
have been selected, with whom the Company has now entered more
detailed negotiations.

CONTACT:  KARSTADTQUELLE AG
          Theodor-Althoff-Str. 2
          D-45133 Essen
          Phone: +49-201-727-1
          Fax: +49-201-727-5216
          Web site: http://www.karstadtquelle.com

          Corporate Communications
          Jorg Howe
          Phone: + 49 (0)201/727-25 38
          Fax: + 49 (0)201/727-37 09
          E-mail: joerg.howe@karstadtquelle.com

          ARQUES Industries AG
          Muenchner Str. 15a
          82319 Starnberg
          Phone: +49 (0) 8151-651 0
          Web site: http://www.arques.de


KUEHN ELEKTROINSTALLATIONEN: Court to Verify Claims October
-----------------------------------------------------------
The district court of Charlottenburg opened bankruptcy
proceedings against Kuehn Elektroinstallationen GmbH on June 9.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until August 20, 2005
to register their claims with court-appointed provisional
administrator Dr. Bjorn Gehde.

Creditors and other interested parties are encouraged to attend
the meeting on July 18, 2005, 9:10 a.m. at the district court of
Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal
218, at which time the administrator will present his first
report of the insolvency proceedings.  The court will also verify
the claims set out in the administrator's report on October 17,
2005, 9:25 a.m. at the same venue.

Since 1970, Kuehn Elektroinstallationen GmbH has been carrying
out electrical services, repair and maintenance in Germany.

Its portfolio includes electric installations of all types,
including antennas, satellites, communication and alarm systems
as well as masonry and tile installations.

Visit http://www.elektro-kuehn.defor more information.

CONTACT:  KUEHN ELEKTROINSTALLATIONEN GMBH
          Berliner Str. 5,13089 Berlin
          Phone: 030/ 421 74 60
          Fax: 030/ 428 06 147
          E-mail: Berlin@Elektro-Kuehn.de

          Dr. Bjorn Gehde, Administrator
          Goethestr. 85, 10623 Berlin


SEKTOR ONLINE: Court Appoints Dr. Andres Administrator
------------------------------------------------------
The district court of Duesseldorf opened bankruptcy proceedings
against Sektor Online Services GmbH on June 15.  Consequently,
all pending proceedings against the company have been
automatically stayed.  Creditors have until July 22, 2005 to
register their claims with court-appointed provisional
administrator Dr. Winfrid Andres.

Creditors and other interested parties are encouraged to attend
the meeting on August 12, 2005, 8:35 a.m. at the district court
of Duesseldorf, Hauptstelle, Muehlenstrasse 34, 40213
Duesseldorf, 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.

Sektor provides consulting, project management and communications
services through its Duesseldorf offices.  Its workforce is made
up of specialists in the fields of 3D, broadcasting, content
management, multimedia and programming.

Visit http://www.sektor.comfor more information.

CONTACT:  SEKTOR ONLINE SERVICES GMBH
          Am Bonneshof 5, 40474 Duesseldorf
          Phone: +49 211 54009-0
          Fax: +49 211 54009-33
          E-mail: info@sektor.com
          Contact:
          Mahmoud Chatah, Manager
          Mintarder Weg 119, 40885 Ratingen

          Dr. Winfrid Andres, Administrator
          Neuer Zollhof 3, 40221 Duesseldorf


SOTILLO SCHIEFER: Under Bankruptcy Proceedings
----------------------------------------------
The district court of Koln opened bankruptcy proceedings against
SOTILLO Schiefer GmbH on June 1.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until July 10, 2005 to register their claims with
court-appointed provisional administrator Karl-Dieter.

Creditors and other interested parties are encouraged to attend
the meeting on Aug. 2, 2005, 9:00 a.m. at the district court of
Koln, Hauptstelle, Luxemburger Strasse 101, 50939 Koln, 12.
Etage, Raum 1240 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:  SOTILLO SCHIEFER GMBH
          Richard-Seiffert-Str. 26, 51469 Bergisch Gladbach

          Karl-Dieter Sommerfeld, Administrator
          Hammerweg 3, 51766 Engelskirchen
          Phone: 02263/9039-0
          Fax: +492263903910


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


NUMICO N.V.: Acquires Full Ownership of Mellin S.p.A.
-----------------------------------------------------
Royal Numico N.V. completed the acquisition of Italian Baby Food
company Mellin S.p.A.

Numico has acquired 100% of the share capital of Mellin for a
total consideration of EUR400 million paid equally in cash and
shares.  The total amount of Numico shares outstanding has
subsequently increased by 6,711,409 shares to 173,060,014 shares.

The company disclosed Friday that the Italian antitrust
authority has approved its acquisition of Mellin S.p.A.

Jan Bennink, CEO of Numico, said: "We are very pleased with the
positive outcome from the Italian antitrust authority.  The
agreed reduction of consumer prices, which formed an integral
part of our business plan, will help bolster growth in this very
attractive market with low per capita consumption.  We remain
confident with the anticipated level of synergies which will
allow the acquisition to be accretive from year one."

Royal Numico is a high-growth, high-margin specialized nutrition
company with leading positions in Baby Food and Clinical
Nutrition and brings products to the market under the brand names
Nutricia, Milupa and Cow & Gate, among others.  The company
serves customers in over 100 countries and employs approximately
11,000 people.

CONTACT:  ROYAL NUMICO N.V.
          P.O. Box 75538, 1118 ZN Schiphol Airport
          The Netherlands
          Phone: +31 20 456 9000
          Fax: +31 20 456 8000
          Corporate Communications
          Phone: +31 20 456 9077
          Investor Relations
          Phone: +31 20 456 9003
          Web site: http://www.numico.com


NUMICO N.V.: Closes US$425 Million Notes Offering
-------------------------------------------------
Royal Numico N.V. has completed the issuance of US$425 million of
senior notes through a private placement in the United States of
America.

The senior notes of US$425 million consist of 4 tranches with
maturities of seven years (US$90 million), nine years (US$85
million), ten years (US$165 million) and twelve years (US$85
million).

The U.S. private placement provides Numico with an excellent
opportunity to diversify the company's capital structure and
further improve its overall debt maturity profile at very
attractive conditions.  The notes have an overall average
maturity of approximately 10 years and have been swapped into
euros at a fixed rate of under 4% -- a clear reflection of
Numico's strong financial position today.

The proceeds will be used to repay part of the EUR627 million
subordinated convertible bonds 2000, due on Monday 27 June 2005.
The remaining portion of the bonds will be paid by the bank loan
facility of EUR1 billion, of which EUR175 million was drawn down
as at 31 March 2005.

Royal Numico is a high-growth, high-margin specialized nutrition
company with leading positions in Baby Food and Clinical
Nutrition and brings products to the market under the brand names
Nutricia, Milupa and Cow & Gate, among others.  The company
serves customers in over 100 countries and employs approximately
11,000 people (see also: http://www.numico.com).

CONTACT:  ROYAL NUMICO N.V.
          Corporate Communications
          Phone: +31 20 456 9077

          Investor Relations
          Phone: +31 20 456 9003


ROYAL SHELL: Nigerian Communities Sue to Protect Air
----------------------------------------------------
Royal Shell and its partners are facing a lawsuit at the federal
high court of Nigeria in Benin city for alleged environmental
violations, according to The Guardian.

Local rural communities, including Gbarain in the Bayelsa state,
claim Shell caused pollution and global warming by flaring gas.
The government has prohibited the burning of excess hydrocarbons
since 1984, but oil companies have continued to do so through
special concessions.  It plans to completely stop the practice by
2008.  Shell said last month it could not meet the deadline
because its Nigerian partners had not yet received state funds
for the project.  A spokesman said Shell will stop flaring gas in
2009 whether or not it finds an economic solution, or it might
just close its last 17 low-production fields.

CONTACT:  ROYAL DUTCH/SHELL GROUP OF COMPANIES
          Carel van Bylandtlaan 30
          2596 HR The Hague
          The Netherlands
          Phone: +31 70 377 9111
          Fax: +31 70 377 3115
          Web site: http://www.shell.com/


=============
R O M A N I A
=============


CFR MARFA: Moody's Reviews Rating for Possible Upgrade
------------------------------------------------------
Moody's Investors Service placed under review for upgrade the
Senior Unsecured (foreign currency) -- B2/UR-U -- rating of CFR
Marfa, S.A. in light of the introduction of its new rating
methodology for government-related issuers (GRIs).

In April 2005, Moody's published a Rating Methodology report,
entitled "The Application of Joint-Default Analysis to
Government-Related Issuers".  The new methodology formally
disaggregates the ratings of GRIs into four components: (i) an
assessment of the GRI's baseline credit risk, (ii) the default
risk of the supporting government, (iii) the default dependence
between the GRI and the government, and (iv) the expected level
of support from the government.

See list of all corporate GRIs in Europe, the Middle East and
Africa (EMEA) region affected by the new rating methodology,
including the rating changes resulting from the application of
the methodology at http://bankrupt.com/misc/GRI_Rating.htm

For a detailed discussion of how Moody's evaluates corporate GRIs
in practice, please refer to Moody's Special Comment entitled
"Rating Government-Related Issuers in European Corporate
Finance", published at http://www.moodys.com.

As previously indicated, in addition to the ratings assigned to
issuers and debt securities, Moody's has also published ranges of
methodology inputs for each GRI, as:

(a) Baseline credit assessment, on a scale of 1 (lowest credit
    risk) to 6 (highest credit risk),

(b) Local currency bond rating of the supporting government (as
    published by Moody's),

(c) Dependence, expressed as low, medium or high,

(d) Support, expressed as low, medium or high

For details of these input ranges for individual GRIs, please
refer to the Credit Opinions for each corporate GRI in the EMEA
region.  Please also refer to the separate Addendum to Moody's
new GRI special comment ("Rating Government-Related Issuers in
European Corporate Finance -- Addendum"), which outlines the
ranges of inputs and rating outcomes for every corporate GRI in
the EMEA region by sector and by country.

See list outlining ratings affirmed, upgraded, or placed under
review for upgrade following the application of the GRI rating
methodology at http://bankrupt.com/misc/GRI_Rating.htm.

The parent company is listed, with the rated entity in
parentheses, the rated class of debt, and the final rating
outcome and rating outlook.

CONTACT:  MOODY'S INVESTORS SERVICE LTD.
          London
          Michel A. Madelain/Eric de Bodard
          Managing Directors
          European Corporate Group
          For Journalists
          Phone: 44 20 7772 5456


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


ALROSA COMPANY: Ratings Up to Ba2/Ba3 Under Moody's New Criteria
----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Alrosa Company
with no change in rating outlook in light of the introduction of
its new rating methodology for government-related issuers (GRIs)
as:

(a) Alrosa Company Ltd. (Alrosa Company Ltd.) -- Corporate
    Family Rating (foreign currency) -- to Ba2/STA from B1

(b) Alrosa Company Ltd. (Alrosa Company Ltd.) -- Issuer Rating
    (foreign currency) -- to Ba3/STA from B3

(c) Alrosa Company Ltd. (Alrosa Finance S.A.) -- Backed Senior
    Unsecured (foreign currency) -- to Ba3/STA from B3

In April 2005, Moody's published a Rating Methodology report,
entitled "The Application of Joint-Default Analysis to
Government-Related Issuers".  The new methodology formally
disaggregates the ratings of GRIs into four components: (i) an
assessment of the GRI's baseline credit risk, (ii) the default
risk of the supporting government, (iii) the default dependence
between the GRI and the government, and (iv) the expected level
of support from the government.

See list of all corporate GRIs in Europe, the Middle East and
Africa (EMEA) region affected by the new rating methodology,
including the rating changes resulting from the application of
the methodology at http://bankrupt.com/misc/GRI_Rating.htm.

For a detailed discussion of how Moody's evaluates corporate GRIs
in practice, please refer to Moody's Special Comment entitled
"Rating Government-Related Issuers in European Corporate
Finance", published at http://www.moodys.com.

As previously indicated, in addition to the ratings assigned to
issuers and debt securities, Moody's has also published ranges of
methodology inputs for each GRI, as:

(a) Baseline credit assessment, on a scale of 1 (lowest credit
    risk) to 6 (highest credit risk),

(b) Local currency bond rating of the supporting government (as
    published by Moody's),

(c) Dependence, expressed as low, medium or high,

(d) Support, expressed as low, medium or high

For details of these input ranges for individual GRIs, please
refer to the Credit Opinions for each corporate GRI in the EMEA
region.  Please also refer to the separate Addendum to Moody's
new GRI special comment ("Rating Government-Related Issuers in
European Corporate Finance -- Addendum"), which outlines the
ranges of inputs and rating outcomes for every corporate GRI in
the EMEA region by sector and by country.


See list outlining ratings affirmed, upgraded, or placed under
review for upgrade following the application of the GRI rating
methodology at http://bankrupt.com/misc/GRI_Rating.htm.

The parent company is listed, with the rated entity in
parentheses, the rated class of debt, and the final rating
outcome and rating outlook.

CONTACT:  MOODY'S INVESTORS SERVICE LTD.
          London
          Michel A. Madelain/Eric de Bodard
          Managing Directors
          European Corporate Group
          For Journalists
          Phone: 44 20 7772 5456


YUKOS OIL: Court to Consider Claims Related to Unit's Sale July
---------------------------------------------------------------
The Arbitration Court of Moscow has set the main hearing on Yukos
Oil's claim for compensation on losses incurred through the sale
of Yuganskneftegaz for July 18, according to
RosBusinessConsulting.

During a preliminary examination, the court allowed the
defendant's request for Yukos to specify the size of the claim.
The losses on the sale of Yuganskneftegaz were estimated at
RUR324 billion (approximately US$11.32 billion).

During the same examination, the court did not allow Yukos to
recover a number of documents.

Yukos' main unit was sold by the government in December to a
little-known firm OOO Baikalfinansgroup for US$9.35 billion
(RUR260.75 billion).  The disposal was aimed at extracting
payment for the firm's US$27.5 billion tax bill for 2000-2003.

Baikal was purchased by state-owned Rosneft within weeks.

Yukos is an oil-and-gas company headquartered in Moscow, Russia.
It filed for chapter 11 protection on Dec. 14, 2004 (Bankr. S.D.
Tex. Case No. 04-47742).  But the case was dismissed in February
24, 2005.  Zack A. Clement, Esq., C. Mark Baker, Esq., Evelyn
H. Biery, Esq., John A. Barrett, Esq., Johnathan C. Bolton, Esq.,
R. Andrew Black, Esq., Fulbright & Jaworski, LLP, represent the
Debtor in its restructuring efforts.  When the Debtor filed for
protection from its creditors, it listed $12,276,000,000 in total
assets and $30,790,000,000 in total debts.

CONTACT:  YUKOS OIL
          Web site: http://www.yukos.com/
          International Information Department
          Hugo Erikssen
          Phone: +7 095 540 6313
          E-mail: inter@yukos.ru

          Investor Relations Contact
          Alexander Gladyshev
          Phone: +7095 788 00 33
          E-mail: investors@yukos.ru


YUKOS OIL: Elects New Directors to Board
----------------------------------------
The Annual General Meeting of Yukos Oil Company on June 23 in
Moscow elected this new Board of Directors:

(a) Yury Beilin - Deputy CEO, Yukos Oil Company;

(b) Francois Buclez - Director, Cube Capital Ltd.;

(c) Victor Geraschenko - Chairman of the Board of Directors,
                         Yukos Oil Company;

(d) Alexey Kontorovich - Director of the Institute of Oil and
                         Gas Geology, Siberian Branch of the
                         Russian Academy of Sciences;

(e) Bernard Loze - President, Loze & Associes;

(f) Yury Pokholkov - President, Tomsk Polytechnic University;

(g) Yevgeny Saburov - Director, Institute of Problems of
                      Investing, Academic Advisor to Institute
                      of Education Development of "Higher School
                      of Economics" University;

(h) Alexander Semikoz - Advisor to Executive Board,
                        Representative of Moscow Narodny Bank on
                        the Board of Directors of Commercial
                        Bank "Eurofinance Mosnarbak", Moscow
                        Narodny Bank, London;

(i) Ivan Silayev - President of the Russian Union of Mechanical
                   Engineers;

(j) Steven Theede - President and CEO, Yukos Oil Company;

(k) Vladimir Forosenko - independent consultant;

After the AGM the new Board of Directors at its first meeting
elected Victor Geraschenko as its Chairman.

The Annual Meeting also approved the Annual Report and financial
accounts of Yukos Oil Company for 2004, including the Profit and
Loss Account.  The Meeting decided not to pay a dividend for
2004.

Following the ruling of the Arbitration Court of Moscow of 22
June 2003, invalidating and nullifying the additional issue of
Yukos Oil Company's shares, the Meeting was to approve
appropriate amendments to the Charter of Yukos Oil Company.
However, the changes to the Charter have not been made because
less than 75% of the Meeting's quorum voted in favor of the
decision.

PricewaterhouseCoopers Audit ZAO has been approved as Yukos'
auditors under Russian and International Accounting Standards.

During the AGM an outline was provided of the Company's legal
activity in Russia and of Yukos' Application to the European
Court of Human Rights.  It was recognized that Yukos attaches
great importance to the European Court's assessment of its
complaint and is committed to pursuing its Application to the
European Court, in the interest of all stakeholders, come what
may.

CONTACT:  YUKOS OIL
          Web site: http://www.yukos.com/
          International Information Department
          Hugo Erikssen
          Phone: +7 095 540 6313
          E-mail: inter@yukos.ru

          Investor Relations Contact
          Alexander Gladyshev
          Phone: +7095 788 00 33
          E-mail: investors@yukos.ru


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


SAS AB: Subordinated Debt Raised to B3 from Caa1
------------------------------------------------
Moody's Investors Service upgraded with no change in outlook the
ratings of SAS AB in light of the introduction of its new rating
methodology for government-related issuers (GRIs) as:

(a) SAS AB (SAS AB) -- Corporate Family Rating (foreign
    currency) -- to B1/NEG from B2,

(b) SAS AB (SAS AB) -- Issuer Rating (foreign currency) -- to
    B2/NEG from B3,

(c) SAS AB (SAS Denmark-Norway-Sweden) -- Backed Senior
    Unsecured (foreign currency) -- to B2/NEG from B3,

(d) SAS AB (SAS Denmark-Norway-Sweden) -- Backed Subordinate
    (foreign currency) -- B3/NEG from Caa1

It also affirmed with no change in rating outlooks SAS AB's (SAS
Denmark-Norway-Sweden) Commercial Paper at NP.

In April 2005, Moody's published a Rating Methodology report,
entitled "The Application of Joint-Default Analysis to
Government-Related Issuers".  The new methodology formally
disaggregates the ratings of GRIs into four components: (i) an
assessment of the GRI's baseline credit risk, (ii) the default
risk of the supporting government, (iii) the default dependence
between the GRI and the government, and (iv) the expected level
of support from the government.

See list of all corporate GRIs in Europe, the Middle East and
Africa (EMEA) region affected by the new rating methodology,
including the rating changes resulting from the application of
the methodology at http://bankrupt.com/misc/GRI_Rating.htm.

For a detailed discussion of how Moody's evaluates corporate GRIs
in practice, please refer to Moody's Special Comment entitled
"Rating Government-Related Issuers in European Corporate
Finance", published at http://www.moodys.com.

As previously indicated, in addition to the ratings assigned to
issuers and debt securities, Moody's has also published ranges of
methodology inputs for each GRI, as:

(a) Baseline credit assessment, on a scale of 1 (lowest credit
    risk) to 6 (highest credit risk),

(b) Local currency bond rating of the supporting government (as
    published by Moody's),

(c) Dependence, expressed as low, medium or high,

(d) Support, expressed as low, medium or high

For details of these input ranges for individual GRIs, please
refer to the Credit Opinions for each corporate GRI in the EMEA
region.  Please also refer to the separate Addendum to Moody's
new GRI special comment ("Rating Government-Related Issuers in
European Corporate Finance -- Addendum"), which outlines the
ranges of inputs and rating outcomes for every corporate GRI in
the EMEA region by sector and by country.

See list outlining ratings affirmed, upgraded, or placed under
review for upgrade following the application of the GRI rating
methodology at http://bankrupt.com/misc/GRI_Rating.htm.

The parent company is listed, with the rated entity in
parentheses, the rated class of debt, and the final rating
outcome and rating outlook.

CONTACT:  MOODY'S INVESTORS SERVICE LTD.
          London
          Michel A. Madelain/Eric de Bodard
          Managing Directors
          European Corporate Group
          For Journalists
          Phone: 44 20 7772 5456


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


SWISS INTERNATIONAL: AirTrust Acquires 98.7% of Share Capital
-------------------------------------------------------------
Lufthansa and the Almea Foundation now hold 98.7% of the share
capital of Swiss International Air Lines Ltd. via the
Swiss-domiciled AirTrust AG following the expiration of the grace
period for the present public purchase offer.  Contractual
undertakings to sell their Swiss shares have been obtained from
major shareholders accounting for 84.6% of Swiss share capital;
and minority shareholders representing a further 14.1% of Swiss
share capital have offered to sell their shares to AirTrust under
the present share offer.

AirTrust submitted a public tender offer to all Swiss minority
shareholders on May 4, 2005.  By the end of the grace period
following the initial offer period on June 22, 2005, AirTrust had
been offered for purchase a total of 7,561,226 Swiss shares,
representing 91.2% of the 8,291,248 SWISS shares held by minority
shareholders at the end of the grace period.

The shares offered will be purchased at the offer price of
CHF8.96 net per share, subject to and following the approval of
Lufthansa's proposed acquisition of SWISS by the E.U. competition
authorities.

Having secured 98.7% of Swiss share capital by the end of the
public offer, AirTrust now holds more than the minimum number of
Swiss shares required to initiate a "squeeze-out" procedure to
obtain the remaining shares.  Thus, once Lufthansa's acquisition
of Swiss has been approved by the E.U. competition authorities
and the public purchase offer has been completed, AirTrust will
effect this squeeze-out against a cash compensation to acquire
the remaining publicly held Swiss shares.

CONTACT:  DEUTSCHE LUFTHANSA AG
          Corporate Communications
          Phone: +49 69 696 51014
          Fax: +49 69 696 95428
          Web site: http://media.lufthansa.com

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


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


NAK NAFTOGAZ: Moody's Raises Rating to Ba2
------------------------------------------
Moody's Investors Service upgraded the Senior Unsecured (foreign
currency) rating of NJSC Naftogaz of Ukraine to Ba2/STA from B2
with no change in rating outlook in light of the introduction of
its new rating methodology for government-related issuers (GRIs).

In April 2005, Moody's published a Rating Methodology report,
entitled "The Application of Joint-Default Analysis to
Government-Related Issuers".  The new methodology formally
disaggregates the ratings of GRIs into four components: (i) an
assessment of the GRI's baseline credit risk, (ii) the default
risk of the supporting government, (iii) the default dependence
between the GRI and the government, and (iv) the expected level
of support from the government.

See list of all corporate GRIs in Europe, the Middle East and
Africa (EMEA) region affected by the new rating methodology,
including the rating changes resulting from the application of
the methodology at http://bankrupt.com/misc/GRI_Rating.htm.

For a detailed discussion of how Moody's evaluates corporate GRIs
in practice, please refer to Moody's Special Comment entitled
"Rating Government-Related Issuers in European Corporate
Finance", published at http://www.moodys.com.

As previously indicated, in addition to the ratings assigned to
issuers and debt securities, Moody's has also published ranges of
methodology inputs for each GRI, as:

(a) Baseline credit assessment, on a scale of 1 (lowest credit
    risk) to 6 (highest credit risk),

(b) Local currency bond rating of the supporting government (as
    published by Moody's),

(c) Dependence, expressed as low, medium or high,

(d) Support, expressed as low, medium or high

For details of these input ranges for individual GRIs, please
refer to the Credit Opinions for each corporate GRI in the EMEA
region.  Please also refer to the separate Addendum to Moody's
new GRI special comment ("Rating Government-Related Issuers in
European Corporate Finance -- Addendum"), which outlines the
ranges of inputs and rating outcomes for every corporate GRI in
the EMEA region by sector and by country.

See list outlining ratings affirmed, upgraded, or placed under
review for upgrade following the application of the GRI rating
methodology at http://bankrupt.com/misc/GRI_Rating.htm.

The parent company is listed, with the rated entity in
parentheses, the rated class of debt, and the final rating
outcome and rating outlook.

CONTACT:  MOODY'S INVESTORS SERVICE LTD.
          London
          Michel A. Madelain/Eric de Bodard
          Managing Directors
          European Corporate Group
          For Journalists
          Phone: 44 20 7772 5456


UKRSIBBANK: US$125 Million Eurobond Rated 'B-'
----------------------------------------------
Fitch Ratings assigned Bayerische Hypo- und Vereinsbank AG's
US$125 million 8.95% limited recourse loan participation notes
due July 2008 a final Long-term 'B-' rating.  The notes are to be
used solely for financing a loan to JSIB 'UkrSibbank' ('UkrSib',
rated Long-term foreign currency 'B-' (B minus)/Stable Outlook,
Short-term 'B', Support '5', Individual 'D/E') under a loan
agreement.  HVB will only pay noteholders principal and interest,
if any, received from UkrSib under the loan agreement.  Further
details on the structure of the issue can be found in Fitch's
announcement on 1 June 2005 (see http://www.fitchresearch.com).

UkrSib was founded in 1990 in Kharkov in the east of Ukraine, but
its head office is now in Kiev, the capital.  It was the fifth
largest bank in Ukraine by assets at end-2004, after having grown
very quickly since 2000, and it has a presence in most regions in
the country.  The bank is ultimately controlled by two
shareholders who also have a number of substantial industrial
interests.

CONTACT:  FITCH RATINGS
          Vladlen Kuznetsov, Moscow
          Phone: +7 095 956 9901

          James Watson
          Phone: +7 095 956 9901

          Media Relations:
          Jon Laycock, London
          Phone: +44 20 7417 4327


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


ACORN HIPFLASKS: Calls in Liquidator from Nottingham Watson
-----------------------------------------------------------
At the extraordinary general meeting of Acorn Hipflasks Limited
on June 14, 2005 held at 12 St Paul's Square, Birmingham B3 1RB,
the extraordinary and ordinary resolutions to wind up the company
were passed.  P. Nottingham of Nottingham Watson, 12 St Paul's
Square, Birmingham B3 1RB has been appointed liquidator of the
company.

CONTACT:  NOTTINGHAM WATSON
          1st Floor
          12 St Paul's Square
          Birmingham
          West Midlands B3 1RB
          Phone: 0121 236 6004
          Fax: 0121 236 6011
          E-mail: pnottingham@notwat.com


ADAMS BROS.: Files for Liquidation
----------------------------------
At the extraordinary general meeting of Adams Bros. (Handley)
Limited (t/a Victory Tours) on June 2, 2005 held at St Leonards
Hotel, 185 Ringwood Road, St Leonards, Ringwood, Hampshire BH24,
the subjoined extraordinary resolution to wind up the company was
duly passed.  M. H. Linton of Leigh & Co, Brentmead House,
Britannia Road, London N12 9RU and C. Jackson, of Tenon Recovery,
Highfield Court, Tollgate, Chandlers Ford, Eastleigh SO53 3TZ
have been appointed joint liquidators of the company.

CONTACT:  TENON RECOVERY
          Highfield Court, Tollgate, Chandlers Ford,
          Eastleigh, Hampshire SO53 3TZ
          Phone: 023 8064 6464
          Fax: 023 8064 6666
          E-mail: southampton@tenongroup.com
          Web site: http://www.tenongroup.com


A.R.D. ELECTRONICS: Hires Administrator from Ideal Corporate
------------------------------------------------------------
Andrew Rosler (IP No 9151) has been appointed administrator for
A.R.D. Electronics Plc.  The appointment was made June 14, 2005.

The company sells electronic goods.  Its registered office is
located at 11 Nicholas Street, Burnley BB11 2AL.

CONTACT:  IDEAL CORPORATE SOLUTIONS LIMITED
          10 Eagley House,
          Deakins Business Park,
          Bolton BL7 9RP


BAL CONSTRUCTION: Names Nottingham Watson Liquidator
----------------------------------------------------
At the extraordinary general meeting of Bal Construction Limited
on June 14, 2005 held at 12 St Paul's Square, Birmingham B3 1RB,
the extraordinary and ordinary resolutions to wind up the company
were passed.  P. Nottingham of Nottingham Watson Ltd., 12 St Paul
's Square, Birmingham B3 1RB has been appointed liquidator of the
company.

CONTACT:  NOTTINGHAM WATSON
          1st Floor
          12 St Paul's Square
          Birmingham
          West Midlands B3 1RB
          Phone: 0121 236 6004
          Fax: 0121 236 6011
          E-mail: pnottingham@notwat.com


BRISTOL-MYERS SQUIBB: Members Final Meeting Set August
------------------------------------------------------
The final meeting of members of Bristol-Myers Squibb
International Limited will be on August 8, 2005 at 10:00 a.m.  It
will be held at the offices of PricewaterhouseCoopers LLP,
Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the liquidator.  Members who want to be represented at
the meeting may appoint proxies.

CONTACT:  PRICEWATERHOUSECOOPERS LLP
          Cornwall Court, 19 Cornwall Street,
          Birmingham B3 2DT
          Phone: [44] (121) 200 3000
          Fax:   [44] (121) 200 2464
          Web site: http://www.pwc.com


BUCKLEY ELEMENTS: Liquidator from Walletts Insolvency Moves in
--------------------------------------------------------------
At the extraordinary general meeting of Buckley Elements Limited
on June 14, 2005 held at the offices of Walletts Insolvency
Services, Adventure Place, Hanley, Stoke-on-Trent, Staffordshire
ST1 3AF, the extraordinary resolution to wind up the company was
passed.  Michael Francis McCarthy of Walletts Insolvency
Services, 2-6 Adventure Place, Hanley, Stoke-on-Trent,
Staffordshire ST1 3AF has been appointed liquidator of the
company.

CONTACT:  WALLETTS INSOLVENCY SERVICES
          Adventure Place, Hanley,
          Stoke on Trent, Staffordshire ST1 3AF
          Phone: (01782) 212326
          Fax: (01782) 212326


CULPEPER LIMITED: Creditors Meeting Set Next Week
-------------------------------------------------
The creditors of Culpeper Limited will meet on July 4, 2005 at
12:00 noon.  It will be held at Sherlock Holmes Hotel, 108 Baker
Street, London W1U 6LJ.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Tenon Recovery, 73 Baker Street, London W1U 6RD
not later than 12:00 noon, July 1, 2005.

CONTACT:  TENON RECOVERY
          Sherlock House
          73 Baker Street
          London W1U 6RD
          Phone: 020 7935 5566
          Fax: 020 7935 3512
          E-mail: bakerstreet@tenongroup.com
          Web site: http://www.tenongroup.com


DERBY NEW: Members Final Meeting Set Third Week of July
-------------------------------------------------------
The final meeting of the members of Derby New Wood Limited will
be on July 22, 2005 at 11:00 a.m.  It will be held at the offices
of Campbell Crossley and Davis, 348-350 Lytham Road, Blackpool,
Lancashire FY4 1DW.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the Liquidator.  Members who want to be represented at
the meeting may appoint proxies.  Proxy forms must be lodged with
Campbell Crossley and Davis, 348-350 Lytham Road, Blackpool,
Lancashire FY4 1DW not later than 12:00 noon, July 21, 2005.


CONTACT:  CAMPBELL CROSSLEY & DAVIS
          348-350 Lytham Road
          Blackpool
          Lancashire FY4 1DW
          Phone: 01253 349331
          Fax: 01253 349435
          E-mail: ian.williamson@crossleyd.co.uk


D.N. AND A.M. DANIELS: Hires Grant Thornton as Administrator
------------------------------------------------------------
Samantha Keen and Nigel Morrison (IP Nos 9250, 1294) have been
appointed administrators for D.N. and A.M. Daniels (Plant Hire)
Limited.  The appointment was made June 15, 2005.

The company is into building and civil engineering works.  Its
registered office is at Rubis House, 15 Friarn Street,
Bridgwater, Somerset TA4 3LH.

CONTACT:  D.N. AND A.M. DANIELS (PLANT HIRE) LIMITED
          Tudor Cottage, Purbrook Heath,
          Waterlooville, Hampshire PO7 5RX
          Phone: 01329226440

          GRANT THORNTON U.K. LLP
          31 Carlton Crescent
          Southampton SO15 2EW
          Phone: 023 8022 1231
          Fax: 023 8022 4017
          Web site: http://www.grant-thornton.co.uk


DUNHOLM PUBLICITY: Sets General Meeting Next Month
--------------------------------------------------
The general meeting of Dunholm Publicity Limited will be on July
18, 2005 at 10:30 a.m.  It will be held at 7 St Petersgate,
Stockport, Cheshire SK1 1EB.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the liquidator.  Members who want to be represented at
the meeting may appoint proxies.

CONTACT:  BENNETT VERBY
          7 St Petersgate
          Stockport
          Cheshire SK1 1EB
          Phone: 0161 477 9345
          Fax: 0161 429 7224
          E-mail: v.simmons@bennettverby.co.uk


FEDERAL-MOGUL: U.K. Court Offers Directions on Legal Issues
-----------------------------------------------------------
The English solicitors for the Administrators of the English
Companies in the Federal-Mogul Group informed Judge Lyons that
the Administrators filed an application with the English High
Court of Justice.

On behalf of the Administrators of T&N Limited, Denton Wilde
Sapte tells the Bankruptcy Court that the Administrators asked
Justice David Richards "for directions concerning the conduct of
these cases and in particular the determination of English law
affecting the treatment of [U.S.] asbestos claims in English
insolvency proceedings relating to the [U.K.] Debtors."

Mr. Sapte relates that at the conclusion of a hearing held on
June 9 and 10, 2005, Justice Richards gave directions for future
conduct of the Application.

The core issues that the parties identified for Justice Richards
to address are whether, under the English law:

   (1) the choice of law applicable to the US asbestos claims
       would be governed by either the common law or the
       provisions of the Private International Law
       (Miscellaneous Provisions) Act 1995; and

   (2) the law to be applied to the quantification of damages in
       respect of the claims would be English law.

A full-text copy of the Judgment, together with the letter from
Denton Wilde and an amended application, is available free of
charge at http://bankrupt.com/misc/dentonwildesapte.pdf

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies with worldwide revenue of some US$6
billion.  The Company filed for chapter 11 protection on October
1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J.
Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at
Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at
Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C.,
represent the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they listed
US$10.15 billion in assets and US$8.86 billion in liabilities.
At Dec. 31, 2004, Federal-Mogul's balance sheet showed a US$1.925
billion stockholders' deficit.  At Mar. 31, 2005,
Federal-Mogul's balance sheet showed a US$2.048 billion
stockholders' deficit, compared to a US$1.926 billion deficit at
Dec. 31, 2004.  Federal-Mogul Corp.'s U.K. affiliate, Turner &
Newall, is based at Dudley Hill, Bradford. (Federal-Mogul
Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service,
Inc., 215/945-7000)


FEDERAL-MOGUL: District Court Lifts Navigant Fee Cap Estimate
-------------------------------------------------------------
As previously reported, the U.S. Bankruptcy Court for the
District of Delaware expanded Navigant Consulting, Inc.'s fee cap
to US$184,207 and reiterated that the cap was without prejudice
to the right of the Official Committee of Property Damage
Claimants to ask for further modification.

As reported in the Troubled Company Reporter on Jan. 17, 2005,
the Asbestos Property Damage Committee appointed in Federal-Mogul
Corporation and its debtor-affiliates' chapter 11 cases hired
Navigant Consulting to serve as its asbestos claims consultant.

The Asbestos Property Damage Committee said that valuation of
asbestos bodily injury claims is a critical aspect of the plan
process in Federal-Mogul's Chapter 11 cases.  Under the Plan of
Reorganization, recovery for asbestos property damage creditors
is tied to the projected value of asbestos bodily injury claims
under the proposed trust distribution procedures.  Moreover,
under the proposed Plan, each creditor and equity holder
constituency represented by the Plan Proponents actually stands
to gain from a higher estimate of bodily injury claims.

Theodore J. Tacconelli, Esq., at Ferry, Joseph & Pearce, P.A., in
Wilmington, Delaware, asserts that no cap on Navigant's fees is
necessary.  Navigant has provided cost-effective services to the
PD Committee and has performed its estimate at far less expense
than any of the other consultants providing similar services to
other constituencies in the Debtors' cases.  Mr. Tacconelli notes
that Legal Analysis Systems, Inc., the asbestos claims consultant
retained by the Official Committee of Asbestos Claimants, has
billed over US$1.3 million and is subject to no cap on its fees.
Similarly, the Analysis Research Planning Corporation, consultant
to the Legal Representative for future Asbestos Claimants, has
billed over US$2 million and similarly is subject to no cap.  Mr.
Tacconelli, thus points out that the PD Committee's opponents in
the asbestos litigation are not hampered by any limitation on the
costs their claims consultants incur.

In light of the expansion of the scope of estimation hearing and
to take account of developments since the preparation of the PD
Committee's initial estimate, including new case law on
estimation of asbestos bodily injury claims, the PD Committee
asks Judge Rodriguez for approval to modify Navigant's retention
to perform additional services.  The PD Committee asks the
District Court to eliminate the limitation on fees previously
imposed by the Bankruptcy Court.

Accordingly, Judge Rodriguez lifts the Fee Cap for Navigant
Consulting with respect to the work performed for the estimation
hearing.

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies with worldwide revenue of some US$6
billion.  The Company filed for chapter 11 protection on October
1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J.
Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at
Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at
Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C.,
represent the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they listed
US$10.15 billion in assets and US$8.86 billion in liabilities.
At Dec. 31, 2004, Federal-Mogul's balance sheet showed a US$1.925
billion stockholders' deficit.  At Mar. 31, 2005,
Federal-Mogul's balance sheet showed a US$2.048 billion
stockholders' deficit, compared to a US$1.926 billion deficit at
Dec. 31, 2004.  Federal-Mogul Corp.'s U.K. affiliate, Turner &
Newall, is based at Dudley Hill, Bradford. (Federal-Mogul
Bankruptcy News, Issue No. 80; Bankruptcy Creditors' Service,
Inc., 215/945-7000)


FEDERAL-MOGUL: PD Panel Presents Expert at Estimation Trial
-----------------------------------------------------------
On the fourth day of the trial to estimate the asbestos personal
injury claims against Federal-Mogul Corporation and its
debtor-affiliates, Adam P. Strochak, Esq., at Weil Gotshal &
Manges, LLP, in New York, representing the Property Damage
Committee, continued cross-examining Dr. Mark Peterson.  He noted
that Dr. Peterson cited three things that made it particularly
complex to determine the appropriate forecast claim values in
Turner and Newall's case:

    (1) the Tweedale book [MAGIC MINERAL TO KILLER DUST; Turner
        and Newall and The Asbestos Hazard by Geoffrey Tweedale.
        The book is an account of the UK asbestos health
        problem, which provides an in-depth look at the
        occupational health experience of one of the world's
        leading asbestos companies -- British asbestos giant,
        Turner and Newall];

    (2) the loss of the obscurity that T&N enjoyed within the
        Center for Claims Resolution; and

    (3) the bankruptcy filings of other defendants.

"Is that correct, Dr. Peterson, that those are the three things
that you believed made it complex to forecast claim values for
T&N?" Mr. Strochak asked.

Actually, Dr. Peterson says, he listed six different factors that
would cause the average settlement amounts against Turner &
Newall to have increased as of the end of 2001 and 2002 as its
liability continued that adds complexity.  "The more important
issue is that all of those factors have the same effect, leading
to higher average settlements compared to the settlements that
Turner & Newall had made previously as a CCR member."

Dr. Peterson points out that Turner & Newall was one of those
companies that knew the asbestos in their products were killing
people and injuring others as early as the 1920s and 1930s.
"They refused to tell their workers . . . and explicitly
considered and decided not to inform workers of these dangers and
continued to expose people, creating the public health crisis
that we have with regard to persons exposed to asbestos.  A lot
of those culpable actions were done in concert and Turner and
Newall participated in organizations and corresponded with
Johns-Manville and other companies where they agreed to do that.
So to that extent, it's kind of hard to separate out Turner &
Newall's culpability from that of its co-conspirators, but Turner
& Newall also maintained a strong record of how it treated its
own workers in, primarily in the U. K. and just a complete
disregard for their injuries and their unwillingness to assume
the cost of death benefits or other matters, even though Turner &
Newall had documentation and internally recognized that it was
responsible for those deaths and that kind of callousness is not
really on record for any other defendant that I'm aware of."

Mr. Strochak referred Dr. Peterson to his deposition that T&N is
probably the "worst" of any asbestos defendant.  "That was your
testimony, right, sir?"

Representing the Official Committee of Asbestos Claimants, Elihu
Inselbuch, Esq., at Caplin & Drysdale, Chartered, objected to the
form of question.  Nathan Finch, Esq., at Caplin & Drysdale,
Chartered, argued that the question is vague and imprecise.

Mr. Strochak explained that he thinks Dr. Peterson view is that
one of the reasons why T&N is becoming a better target because is
it was in fact more culpable.  "What I'm trying to do is shed
some light on that culpability factor."

After expressing some concerns, Judge Rodriguez permitted Mr. C
Strochak to ask the question.

"Dr. Peterson," Mr. Strochak began, "I believe you've testified
that you had never seen a defendant that faced such a conjunction
of horrid things about what happened to it, that was the perfect
storm analogy that you drew, correct?"

"Certainly at that point in time no one, no other asbestos
defendant was facing the conjunction of circumstances that this
one was," Dr. Peterson replied.

In its history, T&N had approximately 381,000 claims against it
and it had resolved roughly 250,000 of those claims.

Mr. Strochak reminds Dr. Peterson that on direct testimony, he
said that T&N had only a small share of CCR liability except with
respect to the last couple of years of CCR's existence.

"I think I testified that it had around 10% or 11%, that may have
been on direct, cross, of the CCR liability.  And the CCR
liability itself was maybe half -- it was less than half of the
liability of all asbestos defendants, so it represents a couple
percent of the total liabilities across all defendants."

Mr. Strochak asked about CCR's total average historical payments.

According to Dr. Peterson, he had data from GAF that he reported
in GAF Holding that he assumed was the total payments by CCR, but
he never had a chance to confirm that either with GAF with the
Center for Claims Resolution.  Dr. Peterson said the GAF was not
cooperative about data issues and the CCR refused to talk to him
about its full liability.

Mr. Strochak points Dr. Peterson to the CCR values he reported
for mesothelioma from 1990 through 1999.

Dr. Peterson said that was his understanding at the time.  "I
think at the time I didn't have the concern that the sum may be
less than the parts, that's something that really occurred to me
looking right now at the GAF contributions."

"Dr. Peterson, did you ever do a comparison between the reported
information for T&N and the information you had for CCR to
determine what T&N's share really was?  Did you ever do a
comparison to see what percentage of CCR Mesothelioma payments
T&N represented?"

Dr. Peterson said what concerns him now is what he assumed to be
the total CCR settlements may not reflect the true picture.

"I'm beginning to get worried that maybe that the GAF -- that the
CCR data doesn't really reflect 100%.  I'm no longer -- you've
shaken my confidence here," Dr. Peterson said.

Mr. Strochak points out that Dr. Peterson has testified in a
variety of different cases on estimation of asbestos personal
injury claims.  "So as a general proposition, it is your view,
sir, that the liability of any particular bankruptcy debtor is
affected by the bankruptcies of other companies, right?"

"In each of those cases my job is to estimate what would have
been the liability for that company had it not entered
bankruptcy, what the asbestos creditors would be owed as
creditors of the company.  And in each case the bankruptcies of
eight other prominent defendants in 2000, 2001 would have
exacerbated the situation for each of those companies, they would
have expected to receive more claims and had to pay more money
for those claims, yeah, certainly," Dr. Peterson said.

"So just to take a hypothetical example, in the Owens Corning
case, you would hypothesize that Owens Corning may face more
liability on account of the bankruptcies of T&N, G-1 Holdings,
and Armstrong, correct?"

"Yes."

"And, likewise, in Armstrong, you would have hypothesized that
Armstrong would face more liability on account of the
bankruptcies of Owens Corning, G-1, and T&N, right?"

"Yes."

Dr. Peterson explained that in each instance, the companies that
went into bankruptcy were no longer contributing to compensation
of victims.  "And once the bankruptcies for any of the other
companies are confirmed, each and every one of those companies
will be paying impaired values, they will be paying pennies on
the dollar.  And so whoever was left outside in my analysis, the
company whose liability I'm estimating would both immediately and
over the long-term be expected to pay more because of the
unavailability of compensation from all of the other defendants.
And when you put together the fact that all of these other
defendants, including in this case Turner & Newall, would only be
paying pennies on the dollar once they come out, the total
compensation provided against all of the nine debtors that's
entered bankruptcy in 2000, 2001 would never reach the level that
it was before.  So it's not a windfall for the plaintiffs, it's
just a recognition that these are all insolvent companies that
can no longer pay their full obligation and you have to take that
into account.  And everyone I know who makes observations about
the asbestos litigation system recognizes it and takes it into
account, it's a fact."

According to Dr. Peterson, there are several thousands of
asbestos defendants.  Rand Corporation, where Dr. Peterson worked
for 25 years doing quantitative empirical research with regard to
the legal system, counts 8,000 defendants.

Mr. Strochak refreshed Dr. Peterson's recollection about the
Owens Corning case.  Mr. Strochak noted that Dr. Peterson
criticized the estimate of one of the opposing consultants who
testified in Owens Corning alleging that he had made improper
adjustments.  According to Mr. Strochak, Dr. Peterson alleged
that Dr. Frederick C. Dunbar had made inappropriate adjustments
that would reduce greatly his projected claim values below the
amounts that claimants had actually received in the past.  Dr.
Dunbar was retained as asbestos claims valuation expert by Credit
Suisse First Boston, the agent for Owens Corning's prepetition
lenders.

"Dr. Peterson, you came to the conclusion that it was
inappropriate for Dr. Dunbar to reject Owens Corning's actual
experience, correct?"

"I came to the conclusion that the particular steps that he did
to adjust its historical experience were biased and
inappropriate.  I didn't testify that it may be appropriate to
make correct adjustments in certain circumstances, it's just he
didn't do it."

Dr. Peterson said the historic claims experience of a company has
to be the place to start.  So he looked at Turner & Newall's
claims experience and he looked at Owens Corning's claims
experience.

Mr. Strochak notes that Dr. Peterson also criticized some of Dr.
Thomas E. Vasquez's conclusions in Owens Corning.  Dr. Peterson
opined that Dr. Vasquez used improper forecasting technique.

"I think Dr. Vasquez was either given poor instructions or did
not -- his report was not prepared for litigation, it was a
report that was prepared for Owens Corning internally and became
discussed and an exhibit in the litigation.  Dr. Vasquez finally
testified, but it wasn't prepared for litigation purposes," Dr.
Peterson said.

Mr. Strochak asked Dr. Peterson if, in the most recent history,
he observed a reduction in the level of claiming activity.

"I think in the last year and-a-half they're down, but in most
recent years they were up sharply after the time of the
bankruptcy and then beginning in late [2003 and 2004] . . .
claims against -- particularly the nonmalignant claims against
asbestos defendants have dropped off sharply because of the
pendency of the legislation in the U.S. Senate."

Mr. Strochak also reminded Dr. Peterson that he testified that
punitive damages really were not an issue for T&N because it
wasn't a litigating defendant in the system.  Mr. Strochak points
out that Dr. Peterson only knew of one punitive damages verdict
against T&N in its history.

"In your view, the threat of punitive damages has an impact on
settlement only when defendants are actually trying to settle a
case during trial, is that right?"

Dr. Peterson replied that no one has done an empirical study of
that.

"When I was at Rand, I tried to do an empirical study of what I
called the shadow effects of punitive damages and said this is no
practical way to do it, there's no appropriate research method,
so there isn't direct data with regard to it.  But in my opinion,
the threat of punitive damages would be clear in cases going to
trial.  My opinion is it would have little or no effect outside
of that.  Perhaps among cases prepared for trial it might.  But
the testimony both of Mr. Hanly and of his peers in the Owens
Corning case as well as plaintiffs' lawyers is that it isn't a
consideration.  And, as I've said earlier when you asked me about
the hedge on a bet, that the settlement process in asbestos
litigation has taken on a life of its own, it has its own market,
it's only modestly effected by any kind of trial judgments.
Because at this point in time when asbestos defendants have
settled hundreds of thousand of claims, when this defendant
settled 250,000 claims, there was a great deal of experience and
expectation on both sides is that they set a value and it's hard
to disturb that value other than kind of general trends.  And a
single event is not like to the disturb -- general changes from
the -- big changes in the litigation process, like the
bankruptcies that have occurred or leaving CCR, will distort and
change the trends.  A single trial is not going to have much
impact in the world when so many cases have been settled
already."

On re-direct examination, Mr. Inselbuch asked Dr. Peterson if he
made a caveat in his testimony that because it was based upon CCR
values, it should not be presumed to be accurate for the future.

Dr. Peterson replied that he made that caveat three or four times
in his testimony.  One of Dr. Peterson's caveats stated that:

    "It is unlikely that T&N would have been able to continue to
    resolve its asbestos liabilities for the amounts that it
    paid as a CCR member.  T&N would have had to pay
    considerably more on average to resolve claims in the future
    both because it lost the negotiating and tactical advantages
    that it had as a CCR member and also because it would have
    faced sharply increased demands and settlement expectations
    as other asbestos defendants entered bankruptcy in 2000 and
    2001.

    "These changes would have been particularly sharp for T&N
    because of its history in manufacturing and selling many and
    particularly dangerous asbestos products.  Even CCR members
    who did not have the burdens of T&N's particular corporate
    history saw their settlement values increase by multiples in
    the early 2000s after leaving CCR.  T&N would likely have
    had to pay even greater increases."

The Asbestos Claimants Committee and the Futures Representative
had asked Dr. Peterson to prepare a rebuttal report to Dr. Robin
Cantor's expert report.  A full-text copy of Dr. Peterson's 34-
page Rebuttal Report is available for free at:
http://bankrupt.com/misc/PetersonRebuttal.pdf

                   PD Committee's Medical Expert
                          Dr. Hans Weill

Due to an accident, Dr. Weill, the PD Committee's medical expert,
can't attend the Estimation Trial.

Peter M. Friedman, Esq., at Weil, Gotshal & Manges LLP, presented
Dr. Weill's testimony.

Dr. Weill is a pulmonologist who is a former President of
American Thorasic Society with 35 years of active involvement in
the diagnosis, research and treatment of individuals exposed to
asbestos and other inhalents.  He's published some 50 articles
related to asbestos.

According to Mr. Friedman, Dr. Weill had testified that there has
be a marked downward trend in American workers' exposure to
asbestos beginning in 1972.  "On the issue of over reading and
under reading of asbestosis, Dr. Weill's report and testimony
indicate that since the late 1980s, he and other practicing
colleagues have rarely seen new cases of asbestos and believe
it's a gradually vanishing disease."

"His reports notes the evidence of systematic over diagnosis by
screening facilities which cannot be explained simply by random
variables among B readers.  In addition, his report indicates
that any estimation which does not take into account systematic
over diagnosis of asbestos will overestimate the incidents of
valid claims.  Dr. Weill testified that death certifies which
other witnesses have relied upon for counting the instances of
asbestos are not a reliable source of information about the cause
of death unless the death is cancer, but as for asbestosis
they're not reliable."

"He discussed his peer reviewed article which demonstrated that
lung cancer can only be caused by asbestos exposure if the person
with cancer has asbestosis.  And his report and his trial
testimony have detailed criticisms of the Cullen study, which Dr.
Welch relies on, and also demonstrates how the Cullen study,
which is in evidence here which Dr. Welch relies on, actually
support Dr. Weill's peer reviewed theory that asbestosis is a
necessary [precursor] for lung cancer to be related to asbestos
exposure."

"Dr. Weill also testified that asbestos exposure caused by lung
cancer is declining and he testified that while asbestos can
cause lung cancer and non-idiopathic mesothelioma, it does not
cause other forms of cancer, and his report cites numerous source
on that."

Mr. Finch, on cross-examination, tells the Court that obviously
no lawyer's characterization of the evidence is as reliable as
the evidence itself, but the Asbestos Claimants Committee
believes that Dr. Weill's cross-examination in the Owens Corning
case establishes that:

    -- Functional impairment is not required for a diagnosis of
       asbestosis.

    -- Asbestosis can be present even without being detectable
       on an x-ray.

    -- A 1/0 x-ray on the ILO scale is sufficient to diagnose
       asbestosis.

    -- A doctor can determine the presence or absence of an
       asbestos-related nonmalignant disease without doing a
       physical examination.

    -- There is a fourfold increase in the risk of contracting
       lung cancer if someone has x-ray evidence of asbestosis
       even without lung function decline.

    -- The peak year for usage of asbestos in the United States
       was 1972.

    -- There is no study upon which Dr. Weill would rely that
       projects the incidence or the prevalence of nonmalignant
       asbestos disease in the United States.

    -- The only substance which has been conclusively linked to
       mesothelioma in the male population is asbestos exposure.

    -- There is no upper limit for the latency for mesothelioma.

    -- The latency period for asbestosis is likely to be longer
       than it was in the past and that might be up to 30 or 40
       years.

    -- Any decline in the mesothelioma incidents in the United
       States is not statistically significant.

    -- Based on the SEER data, the incidence rate for
       mesothelioma is currently two for every 100,000 of the
       male population.

    -- There are currently approximately 2,800 new cases of
       mesothelioma in males each year.

    -- Dr. Weill relied on this NIOSH information that Dr. Welch
       testified about.  He relied on it because he found
       government statistics to be reliable.

    -- Dr. Weill admitted that he overwhelmingly testifies at
       the request of asbestos defendants in asbestos
       litigation.

The PD Committee had asked Dr. Weill to comment on Dr. Laura S.
Welch's Expert Report.  According to Dr. Weill, a problem that
applies to the entirety of Dr. Welch's report is that the bases
for her various opinions are not referenced by specific papers in
scientific literature.

A copy of Dr. Weill's comments is available for free at
http://bankrupt.com/misc/WeillOnWelch.pdf

                        PD Committee Offers
                  George Michael Lynch's Testimony

As Michael P. Kessler, Esq., at Weil, Gotshal & Manges LLP, was
about to summarize a portion of George Michael Lynch's testimony
by deposition, Mr. Finch objected to a portion of the deposition
for lack of relevance and lack of foundation.  Mr. Lynch is
Federal-Mogul's chief financial officer.

Judge Rodriguez ruled the background must to be presented first
before considering the question of relevance.

Mr. Lynch has been Federal-Mogul's chief financial officer since
prior to the year 2001.  As CFO, Mr. Lynch reviews and signs
filings with the U.S. Securities and Exchange Commission.  He
makes certain that the information is truthful and accurate
before signing any document.

According to Mr. Kessler, Mr. Lynch also testifies several times
that in the U.S. SEC filings, the financial statements, the
audited financial statements of the company are included.  In
those financial statements, the company reports an estimated
liability for aggregate asbestos claims in the range of $1.6
billion.  "It actually ranges from about $1.550 billion to $1.6
billion.  This estimate is based upon an estimation valuation
commissioned by the debtors Federal-Mogul from an organization
called NERA, and it first is included in their U.S. SEC filings
for the 10-K for the year-ending 2001.  It's presented with the
10-Ks for each of the years 2001, 2002, 2003."

Mr. Kessler related that Mr. Lynch believed at the time that he
signed it, that the estimate for asbestos liability contained in
the financial statements was an accurate estimate for the company
at that time.  Mr. Lynch believed that the requirement for
submitting their asbestos liability under U.S. GAAP and U.S. SEC
requirements was to submit an estimate that was at least at the
lowest range of accuracy beginning with the 2004 U.S. SEC filing.
Mr. Lynch testified that he was aware of the existence by that
time of Dr. Peterson's report that estimated asbestos liability
in excess of $11 billion.  He testified that he did not read the
report himself, but he read the explanation and summary of it in
the disclosure statement.  "And notwithstanding his knowledge of
that report and the knowledge of the author, Ernst & Young, of
that report, the company continued to submit a financial
statement in their 10-K showing their estimated asbestos
liability of $1.55 billion as contained in the NERA report that
they received in 2001."

When confronted as to why they, the company, would still submit a
$1.6 billion approximate asbestos liability in 2004 and after it
had received and knew of the Peterson report, Mr. Lynch again
testified that it was his understanding that they could file an
estimate at the lowest range of accuracy, Mr. Kessler said.

"And when confronted a second time with that same question he
says yes, this is my understanding, I would not have filed the
report showing a $1.6 billion estimate of asbestos liability had
I not believed it had at least as high a likelihood of accuracy
as the higher estimate submitted by [Dr.] Peterson," Mr. Kessler
told the Court.

Mr. Kessler and Mr. Finch continued to argue about the relevance
of the financial statements.

"Let me make my position clear," Judge Rodriguez said, "because I
think if there is going to be an appeal, the Third Circuit should
know exactly what it is I'm thinking.  I understand my function
is to try to determine the amount that reasonably should be
estimated in order to take care of past, present, future filings,
which means that the very fact that both sides are here means
that it's contested and disputed.  We're going to hear from
experts from both sides that are going to come here and stand or
fall on their own testimony to determine the amounts that the
Court would have to determine, accept one the other or make
certain adjustments.  What you are saying is here comes the CFO
of a company and he's going to give you a number, if that number
isn't supported where you can stand on that number and show me
why it should be accepted beyond what has developed here in the
courtroom, simply because it comes in as what appears to be an
admission.  It's admitted.  It could be admitted.  I'm talking
about the weight."

"Now here goes a very gross analogy, and every time I give an
analogy I get into hot water.  CEOs appear before you and they
swear to tell the truth.  Cigarette smoking doesn't cause cancer.
Is that it?  The case over?  Or do you dissect their opinion? You
could put that in there without other foundation as to how it was
arrived at, it's a number that's in the record.  How do you
balance its weight when you are dealing with two experts that are
actually dissecting and fragmenting the very issues the Court has
to decide?  The weight of it sits there for whatever."

"I think the Court has to be primarily influenced by actual
testimony that's tested under the crucible of cross-examination
to then arrive at its determination.  And other than that, it's
admitted, but I caution you about its weight, as I sit here now,
being simply the statement of a financial officer without
foundation."

"Recent experience has taught us that you can't just take blindly
what corporations are telling the world what their financial
health is.  Right?  And all I'm saying is in that environment, I
just want to see proof come through the witness stand where its
credibility can be questioned before we take it as a fact."

Mr. Finch asserted that Federal-Mogul is not a party in this
proceeding.  The Federal Rules of Evidence applies.  "The
financial statements, the basis for the number in the financial
statements refers to the work of an outside econometric firm.
That makes it second level hearsay.  It's not just what the
company is telling the world, it's also the company saying we're
relying on these other guys.  Nobody's had the opportunity to
cross-examine those people or take their deposition or find out
what the assumptions were that went in.  One of assumptions was
that they projected the liability out only for 12 years.

"Whatever [Federal-Mogul] said in its financial statement is not
an admission against my client, our client, the Asbestos
Claimants Committee and the Future Claimants Representative, so
there is no way around the hearsay objection for that, it's
second level hearsay," Mr. Finch said.

The lawyers further argued over the admission of an informational
brief.

Judge Rodriguez pointed out that there's no question that there
may be questionable readings that are presented to the Court.
"And you're looking at it as the tort system exists today, where
two experts testified and the jury is told who do you believe by
a preponderance of the believable testimony.  And they make
decisions that may be totally medically wrong but they're doing
it on the basis of what they see as they measure credibility.
Those case have a value.  Yet there may be x-rays in that case
where someone says, hey, that doctor's totally wrong.  And I hear
the defense bar saying it.  I hear the plaintiff's bar saying,
you know, I can give you the name of a doctor that hasn't found a
disability in 20 years.  I'm aware of those extremes.  That's why
what we have to do is pierce through the credibility of those who
are sitting here to find out the elements we want to really
consider."

"All I'm saying is I'm aware of Judge Fullam's opinion.  I'm
aware of the way the Third Circuit, if I disagree with Judge
Fullam, will look at both of our opinions.  And I'm sure that six
eyes are better than four, meaning Fullam's and mine, you have
six.  I'm aware of that.  And we are not going to try to
recklessly stumble through to something, but try to reason on
whatever we do based on the record presented here," Judge
Rodriguez explained.

Judge Rodriguez permitted Mr. Kessler to submit the deposition
transcripts.

                       PD Committee's Witness
                          Dr. Robin Cantor

Kristin King Brown, Esq., at Weil Gotshal & Manges, LLP, called
Dr. Robin Cantor to the witness stand.

Dr. Cantor has a Bachelor's of Science in mathematics from
Indiana University of Pennsylvania.  She has a concentration in
statistics.  Dr. Cantor has a Ph.D. in economics from Duke
University.  She has three fields of expertise -- econometrics,
public finance and international trade.  Econometrics is
basically statistical analysis and modeling applied to economic
data.

Dr. Cantor first worked for Oak Ridge National Laboratory, which
is one of the multifunction laboratories of the Department of
Energy.  For 10 years, she was involved in research and projects
that forecast environmental liabilities, including asbestos
liability issues.  Then, she moved on to National Science
Foundation, where she was the Program Director for the Decision
Risk Management Science Program for four and a half years.  Dr.
Cantor was also connected with LECG, an economics and financial
consulting firm.  As the Principal and Managing Director for the
Environmental and Insurance Claims Practice, Dr. Cantor analyzed
asbestos liabilities issues, among others.

Dr. Cantor currently works for Navigant Consulting as Director
and Subteam Leader for the Liability Estimation and Insurance
Coverage Analysis Subteam.  Her work includes estimating asbestos
liability.  Her subteam is currently involved in six bankruptcies
and five cases for ongoing firms.

She also submitted reports to Congress and published several
articles.

Dr. Cantor is the PD Committee's expert in economic, statistical
analysis, risk analysis, and asbestos liability estimates for the
Estimation Trial.

Mr. Inselbuch asked Judge Rodriguez for permission to voir dire
-- a preliminary examination to test the competence of a witness.

Judge Rodriguez consented and Mr. Inselbuch began grilling Dr.
Cantor.

Dr. Cantor related that she was engaged by the PD Committee
sometime during the end of October 2004.

Mr. Inselbuch asked if Dr. Cantor was ever engaged to do any
forecast of asbestos liability in a contested matter in a court.

No, Dr. Cantor replied.

"Have you ever been recognized by any court anywhere in the world
as an expert qualified to give an opinion on the estimation of
asbestos liabilities?" Mr. Inselbuch asked.

"No."

"At any time prior to your engagement here," Mr. Inselbuch
continued, "had you made any effort to interview plaintiffs'
asbestos lawyers to understand in any way how they operate and
how their business functions and what motivated their decisions?"

"Well, I think that I have attended conferences where they've
participated and I've certainly had the opportunity to hear them
talk about their environment and what factors seem to be shaping
their environment.  I don't know if that satisfies your
definition of what it means.  It's not me systematically
interviewing them, it is certainly me listening to what they have
to say about their environment," Dr. Cantor explained.

"So you never interviewed any plaintiffs' lawyers?"

"Are you speaking specifically with asbestos plaintiffs'
attorneys?" Dr. Cantor asked.

"Yes, asbestos plaintiffs' lawyers," Mr. Inselbuch said.  "And
I'm using the word interviewed in English."

"You know I certainly work with plaintiffs' counsel frequently
and I just don't know whether or not those people have any
asbestos claims or not.  I can't answer that question," Dr.
Cantor said.

Mr. Inselbuch wanted to know if Dr. Cantor ever asked any of
those plaintiffs' lawyers any questions about anything that went
on in asbestos litigation.

"I worked with Gilbert, Heinz & Randolph, so I think they -- I
don't know if they're plaintiffs' counsel.  I think they are."

Mr. Inselbuch told Dr. Cantor they're not.

"They're not?"

Mr. Inselbuch explained that Gilbert Heinz represent people in
insurance litigation.

Dr. Cantor noted that Gilbert Heinz seemed to know a lot about
plaintiffs' counsel and she had many conversations with them.

Mr. Inselbuch asked if Dr. Cantor ever interviewed any
defendants' lawyers to try to understand what motivates the
behavior of the lawyers in the litigation.

"Well, yes, of course.  Because I've work -- I mean, I would --
do you want the lawyers that are working with the insurance
companies?"

"No," Mr. Inselbuch said, "I'm asking you about lawyers that
defend defendants in asbestos litigation."

Yes, Dr. Cantor said, she was able to interview lawyers that
defend defendants in asbestos litigation.

"Who?"

"Well again, I mean, isn't Gilbert, Heinz & Randolph working with
the policyholder?" Dr. Cantor asked.

"Anybody else but Gilbert, Heinz & Randolph."

"You don't like that one," Dr. Cantor commented.

"No, I like them fine.  But I know for a fact they don't ever
participate in asbestos litigation," Mr. Inselbuch said.

Dr. Cantor informed the Court that she worked with a joint
defense group, on the Armstrong matter.  "I think there were
eight law firms there, O'Melvany & Myers was involved in that one
and it's my understanding that they work with defense, they work
on the defense side of asbestos litigation, so yes."

Mr. Inselbuch asked Dr. Cantor to specify who at O'Melvany &
Myers she talked to regarding how things function in asbestos
tort litigation.

Dr. Cantor named John Niles.  There was also one woman who she
was working with but Dr. Cantor said she could not remember the
name of that woman.

Mr. Inselbuch also asked Dr. Cantor if she had talked to any
doctors who practice medicine in the area of lung disease and who
have examined asbestos claimants.

Dr. Cantor said it's possible that she has.  "I know, for
example, Bernie Goldstein, he's actually a toxicologist and he's
at the University of Pittsburgh, and I've had many conversations
with him about asbestos and he's studied asbestos."

"Did you ever meet with any union representatives from unions
that included workers that work with asbestos to discuss the
history and generation of the asbestos litigation?"

Dr. Cantor said she can't immediately answer that question, she
has to review her files.

"So somewhere in your personal history you've talked to a lot of
people but you can't think of any one of them that was a union
representative that had, for unions that represented asbestos
workers, doctors who testified in litigation, in asbestos
litigation, defendants' lawyers, plaintiffs' lawyers, you can't
point me to anybody you talked to obtain a basic understanding of
what the data in this case shows," Mr. Inselbuch pointed out.

"First of all," Dr. Cantor said, "it's not just my personal
experience.  I was president of the Society for Risk Analysis.
It was my professional activities that involved me in these
discussions.  And, in fact, I was the person who was responsible
for organizing the sessions so I don't see how you can say this
is my personal business or personal behavior.  I think that for
any of these areas of risk, this is why I was president of the
Society for Risk Analysis because I am involved in these various
issues and I do have a basic understanding."

Mr. Inselbuch noted that Dr. Cantor declined to speculate what
plaintiffs' lawyers do.

"Well, I hope I declined to speculate about what anyone's
behavior is going to be.  I hope that, in fact, I've done
analysis and I have an informed opinion about what that behavior
is going to be.  I hope that I haven't speculated anywhere.  But
I would like to, if I may, just follow-up and explain why I don't
need to have specific information on plaintiffs' counsel or for
that matter specific information on defense counsel.  It's very
similar in economics, when we're trying to predict prices, which
we do all the time, and we look at price data to do that.  And
price data is the outcome of the behavior of suppliers and
demanders and I don't necessarily have to look at that particular
demand or supply behavior to be able to take the signal from the
interaction of that behavior to understand prices and make good
forecasts of prices.  So it's similar here in that we're trying
to do is a discounted cash flow analysis, which is the outcome to
interaction between the defense counsel and plaintiffs' counsel,
and I can look at the history and the information associated with
it and of the cash flows and the discounted cash flows over time
and then make a forecast from that information which will then
imbed the plaintiffs' and defense counsel behavior," Dr. Cantor
said.

Mr. Inselbuch asked if Dr. Cantor considered any changes in the
environment that all the participants worked in.

"Yes," Dr. Cantor replied.

"And how could you do that without understanding their
motivations?" Mr. Inselbuch asked.

"In the same way that I might look at regulation and prices and
understand that the regulation is going to effect prices without
specifically looking at what might be in the head of a person
who's going to buy a new pair of shoes.  So I can understand
what's going on with prices and market conditions and it's sort
of -- again, this is a big difference, I guess, in the various
ways people approach analysis.  But economists are outcome
oriented, we learn what we learn by examining what these outcomes
are and testing hypotheses about these outcomes.  Other sciences
may be more behaviorally oriented, may focus very much on what
people say but, in fact, there's a huge body in literature in
economics that shows that can be very unreliable to focus your
analysis on what people say as opposed to what people do."

Mr. Inselbuch told Judge Rodriguez that the Asbestos Claimants
Committee opposes the qualifications of Dr. Cantor as an expert.
"She's never done this before, she has no experience
understanding what goes on in the court system.  And she seems to
think she can simply apply mathematical procedures to data that
exists.  If that were true, presumably everybody in this
courtroom would qualify as an expert."

Judge Rodriguez said he will accept Dr. Cantor as an expert and
her testimony will be weighed.

Ms. Brown admitted Dr. Cantor's Supplemental Expert Report and
Rebuttal Report into evidence.

A full-text copy of Dr. Cantor's Supplemental Expert Report is
available at no cost at:
http://bankrupt.com/misc/CantorsSupplReport.pdf.

A full-text copy of Dr. Cantor's Rebuttal Report is available at
no cost at: http://bankrupt.com/misc/CantorRebuttalReport.pdf.

Dr. Cantor estimates T&N's U.S. liability for asbestos personal
injury claims at $2.5 billion.

According to Dr. Cantor, she looked at the pending claim
liability, the future malignant liability and the future
nonmalignant liability.  "Those are the three major components of
the total liability estimation."

Within the pending claim liability, Dr. Cantor used the actual
pending claim information.  "You would use the historical
acceptance rates and then the expected settlement value by
disease."

For the future malignant liability, Dr. Cantor said, there has to
be a methodology for constructing the count of these future
compensable claims, which have not yet been observed.  "And so
that analysis proceeds by looking at exposed workers in a
framework that's basically an economic and epidemiological
framework to understand how exposed workers finally become
potentially injured workers by death year and then that
information, in my approach, is multiplied by a compensability
rate and then multiplied by the expected settlement value by
disease.  That differs slightly with Dr. Peterson who is looking
at this propensities to sue, so that's a particular difference
between us."

"In future nonmalignant liability, you don't have an economic or
epidemiological framework that's generally accepted in the
estimation, so what people have done in this area is that they
have looked at the compensated nonmalignant claims as a ratio of
the compensated malignant claims and then apply that ratio to the
future compensable malignant claims to derive the future of
compensable nonmalignant claims and then multiply them by of the
expected settlement value by disease."

Dr. Cantor explained that when she derives expected settlement
values that will be used for the claims information whether or
not it's the pending versus the future claims, she starts with a
four-year window and she looks at the weighted average value over
that four-year window.  "I thought this was an area where there
would not be a lot of dispute because the earlier analysis -- in
the earlier analysis, Dr. Peterson had, in fact, used the
four-year window and that's a fairly standard thing for people to
do.  And even the asbestos liability estimation is to basically
try to use a four-year window, a five-year window, something of
that nature, at least for, you know, starting with the base
case."

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies with worldwide revenue of some US$6
billion.  The Company filed for chapter 11 protection on October
1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq.,
James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin
Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang,
Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in
their restructuring efforts.  When the Debtors filed for
protection from their creditors, they listed US$10.15 billion in
assets and US$8.86 billion in liabilities.  At Dec. 31, 2004,
Federal-Mogul's balance sheet showed a US$1.925 billion
stockholders' deficit.  At Mar. 31, 2005, Federal-Mogul's balance
sheet showed a US$2.048 billion stockholders' deficit, compared
to a US$1.926 billion deficit at Dec. 31, 2004.  Federal-Mogul
Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill,
Bradford. (Federal-Mogul Bankruptcy News, Issue No. 84;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


GENERAL BRIDGE: Names Price & Co Liquidator
-------------------------------------------
At the extraordinary general meeting of General Bridge &
Engineering Limited on June 8, 2005 held at 65 Broad Green,
Wellingborough, Northamptonshire, the extraordinary and ordinary
resolutions to wind up the company were passed.  Alan R. Price of
Price & Co, PO Box 5895, Wellingborough, Northamptonshire NN8 5ZD
has been appointed liquidator of the company.

CONTACT:  PRICE AND CO
          65 Broad Green,
          Wellingborough
          Northamptonshire NN8 5ZD.
          E-mail: arprice@rescueco.co.uk


HAVERSTOE BUILDING: Sets Creditors Meeting Friday
-------------------------------------------------
The creditors of Haverstoe Building Services Limited will meet on
June 30, 2005 at 3:00 p.m.  It will be held at The Europarc
Innovation Centre, Innovation Way, Grimsby, North East
Lincolnshire.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to CRG Insolvency and Financial Recovery, Alexandra
Dock Business Centre, Fisherman's Wharf, Grimsby DN31 1UL not
later than 12: noon, June 29, 2005.

CONTACT:  CRG INSOLVENCY & BUSINESS RECOVERY
          Suite 4
          Alexandra Dock Business Centre
          Fishermans Wharf
          Grimsby
          Lincolnshire DN31 1UL
          Phone: 01472 250001


HEPBURN HOLDINGS: Members Okay Winding-up Resolutions
-----------------------------------------------------
At the extraordinary general meeting of the members of Hepburn
Holdings Limited on June 8, 2005 held at Marks Tey Hotel, London
Road, Marks Tey, Colchester, Essex CO6 1DU, the extraordinary and
ordinary resolutions to wind up the company were passed.  J. S.
French and G. Mummery have been appointed joint liquidators of
the company.

CONTACT:  VANTIS REDHEAD FRENCH LIMITED
          43-45 Butts Green Road,
          Hornchurch, Essex RM11 2JX
          Phone: 01708 458211
          Fax: 01708 442308
          E-mail: jeremy.french@vantisredheadfrench.co.uk


HIRAM WILD: Members Opt for Liquidation
---------------------------------------
At the extraordinary general meeting of the members of Hiram Wild
Limited on June 14, 2005 held at Knowle House, 4 Norfolk Park
Road, Sheffield S2 3QE, the extraordinary and ordinary
resolutions to wind up the company were passed.  William Duncan
of PKF, Knowle House, 4 Norfolk Park Road, Sheffield S2 3QE has
been appointed liquidator of the company.

CONTACT:  PKF
          Knowle House
          4 Norfolk Park Road
          Sheffield
          South Yorkshire S2 3QE
          Phone: 0114 276 7991
          Fax: 0114 275 3538


IGNIUS LIMITED: Members Pass Extraordinary Resolution
-----------------------------------------------------
At the extraordinary general meeting of the members of Ignius
Limited on June 16, 2005, the extraordinary resolution to wind up
the company was passed.  Barry David Lewis of Harris Lipman, 2 Mo
untview Court, 310 Friern Barnet Lane, Whetstone, London N20 0YZ,
an Insolvency Practitioner, licensed by the Institute of
Chartered Accountants in England and Wales has been appointed
liquidator of the company.

CONTACT:  HARRIS LIPMAN
          2 Mountview Court,
          310 Friern Barnet Lane,
          Whetstone, London N20 0YZ
          Phone: (020) 8446 9000
          Fax:   (020) 8446 9537
          Web site: http://www.harris-lipman.co.uk


INMARSAT PLC: Appoints Three New Non-executive Directors
--------------------------------------------------------
Inmarsat plc, which provides global mobile satellite
communications, has confirmed the appointment of three new Non
Executive Directors to the Board following the company's listing
on the London Stock Exchange.  The new appointees are Sir Bryan
Carsberg, Stephen Davidson and Admiral James Ellis, Jr. (Retd).

Sir Bryan Carsberg is a respected figure in international
business, with extensive experience in the telecommunications
sector.  He was the first Director General of Telecommunications,
running Oftel, the telecommunications regulator that preceded
Ofcom, from 1984 to 1992; Director General of Fair Trading from
1992 to 1995; and Secretary General of the International
Accounting Standards Committee from 1995 to 2001.

He was also an independent non-executive director of Cable and
Wireless Communications plc from 1997 to 2000.  Sir Bryan is
currently Chairman of the Pensions Compensation Board, and an
independent non-executive director of RM plc, SVB Holdings plc
and Philip Allan Publishers Ltd.

Stephen Davidson is the former CFO and CEO of Telewest
Communications plc.  He has held various positions in investment
banking.  At West LB Panmure, he was Global Head of Media and
Telecoms Investment Banking, and then Vice Chairman of Investment
Banking.  He is currently Chairman of SPG Media plc and a
non-executive director of The Wireless Group plc and Williams Lea
Group Ltd.

Admiral James Ellis, Jr. (Retd) is the former Commander of the
United States Strategic Command, where he was responsible for the
global command of U.S. strategic forces.  During his time in that
role, he also oversaw the employment and modernization of the
satellite communications network of the U.S. Department of
Defense.  Prior to that, he was Commander-in-Chief of U.S. Naval
Forces, Europe, and Commander-in-Chief of Allied Forces, Southern
Europe, during a period of Balkan crisis.

Admiral James Ellis, Jr. (Retd) is currently the President and
Chief Executive Officer of the Institute of Nuclear Power
Operations, and serves on the Boards of Lockheed Martin
Corporation, Level 3 Communications, Inc. and America First
Companies, LLC.

Andrew Sukawaty, Chairman and CEO of Inmarsat, said: "We welcome
Sir Bryan, Stephen and James to the Board of Inmarsat.  Each
brings significant experience to our business.  This will be
invaluable to the Board as we grow and strengthen our
international operations."

                            *   *   *

Inmarsat plc announced last week the successful pricing of its
initial public offering of ordinary shares.

JPMorgan Cazenove and Morgan Stanley acted as Joint Sponsors to
the flotation.  JPMorgan Cazenove, Lehman Brothers, Merrill Lynch
International and Morgan Stanley acted as joint
bookrunners.

The offer price has been set as 245 pence per ordinary share.

Based on the Offer Price, the market capitalization of Inmarsat
at the commencement of conditional dealings will be
approximately GBP1,119 million.

The Global Offer consists of 150 million new Inmarsat shares
representing approximately 33% of the 456.7 million Inmarsat
shares in issue following the completion of the Global Offer.
In addition, certain of the Company's shareholders have entered
into over-allotment arrangements, which may result in the
disposal of 15 million existing Inmarsat shares at the Offer
Price.

Approximately 11.28 million shares were allocated under the
intermediaries tranche of the Global Offer.

The gross proceeds of the Global Offer will be GBP367.5 million
(assuming no shares are acquired pursuant to the over-allotment
arrangements) raising net proceeds for the Company of
approximately GBP354.6 million.  This will give the Company a
free float of approximately 33% (assuming that no shares are
acquired pursuant to the over-allotment arrangements).

About Inmarsat

Inmarsat plc has more than 25 years of experience in designing,
launching and operating its satellite-based network.  With a
fleet of ten owned and operated geostationary satellites, which
are controlled from its headquarters in London, Inmarsat provides
a wide range of voice and high-speed data services to users
worldwide, including telephony, fax, video, e-mail and broadband
intranet and Internet access.

Inmarsat's revenues, operating profit and EBITDA for the full
year 2004 were US$480.7 million (EUR399.36 million), US$159.1
million (EUR132.18 million) and US$303.6 million (EUR252.22
million), respectively.

CONTACT:  INMARSAT PLC
          99 City Rd.
          London EC1Y 1AX
          Phone: +44-20-7728-1256
          Fax: +44-20-7728-1179
          Web site: http://www.inmarsat.com/

          Media Inquiries
          Chris McLaughlin
          Phone: +44 20 7728 1015
                 or +44 779 627 6033

          Investor Inquiries
          Simon Ailes
          Phone: +44 20 7728 1518


INNISFAIL LAUNDRY: Hires Liquidators from Rothman Pantall & Co.
---------------------------------------------------------------
At the extraordinary general meeting of Innisfail Laundry Limited
on June 15, 2005 held at the offices of Rothman Pantall & Co,
Clareville House, 26-27 Oxendon Street, London SW1Y 4EP, the
extraordinary and ordinary resolutions to wind up the company
were passed.  Robert Derek Smailes and Stephen Blandford Ryman of
Rothman Pantall & Co, Clareville House, 26-27 Oxendon Street,
London SW1Y 4EP have been appointed joint liquidators of the
company.

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


MCA PAYROLL: Liquidator From Thorntonrones Moves in
---------------------------------------------------
At the extraordinary general meeting of MCA Payroll Limited on
June 7, 2005 held at ThorntonRones, First Floor, 167 High Road,
Loughton, Essex IG10 4LF, the extraordinary and ordinary
resolutions to wind up the company were passed.  Richard Rones of
ThorntonRones, 167 High Road, Loughton, Essex IG10 4LF has been
appointed liquidator of the company.

CONTACT:  THORNTONRONES
          1st Floor
          167 High Road
          Loughton
          Essex IG10 4LF
          Phone: 020 841 9333
          Fax: 020 8418 9444
          E-mail: info@thorntonrones.co.uk


MOWLEM PLC: New Chairman to Assume Post Next Month
--------------------------------------------------
The Board of Mowlem plc has appointed Joe Darby, currently the
Group's Senior Non-Executive Director, as its new Non-Executive
Chairman with effect from 1 July 2005, following completion of a
selection process, which considered internal and external
candidates.

The appointment is for a three-year period and follows the
decision of Charles Fisher to retire having completed 12 years on
the Board of Mowlem and over three years as its Chairman.

Mowlem announced at its Annual General Meeting on 19 May
2005 Mr. Fisher's intention to retire from the Board once a
successor had been identified.  The Board expressed its gratitude
for his substantial contribution, both as a Director and as
Chairman, during a period of significant change for the Group.

Mr. Darby, 56, joined the Mowlem Board in May 1997.  He is also
the Senior Non-Executive Director of British Nuclear Fuels plc,
where he chairs the Environmental, Health and Safety Committee,
and Chairman of Faroe Petroleum plc.

An engineer by profession, Mr. Darby has spent most of his career
in the energy sector and from 1993 to 2001 was Chief Executive of
LASMO plc, the oil and gas exploration company.

                            *   *   *

In March, Fitch Ratings affirmed Mowlem plc's Senior Unsecured
'BB' and Short-term 'B' ratings and removed them from Rating
Watch Negative.  A Stable Outlook has been assigned.

This rating action followed recent steps taken by Chief
Executive Simon Vivian to strengthen internal risk
management structures and processes together with a more prudent
approach to profit recognition and a greater focus on cash
generation.  Additionally, the agency considers important
Mowlem's confirmation that sufficient bonding facilities remain
available, that potential breaches have been resolved and that
the FY04 audited accounts will receive an unqualified audit
opinion.  Fitch further noted the absence of negative surprises
in the recently published FY04 preliminary financial statements.

CONTACT:  MOWLEM PLC
          White Lion Court, Swan St., Isleworth
          London
          TW7 6RN, United Kingdom
          Phone: +44-20-8568-9111
          Fax: +44-20-8847-4802
          Web site: http://www.mowlem.com

          Brian O'Neill
          Phone: 020 7405 5251


MYTRAVEL GROUP: Pre-tax Loss Down to GBP114 Million
---------------------------------------------------
Mytravel Group's results for the 6 months to April 2005[*] show a
significant improvement over the comparable prior year period
despite an adverse impact as a result of the Indian Ocean tsunami
(GBP11.7 million) and a significant increase in the cost of fuel
(management calculation -- GBP17.5 million).

Group operating loss[**] reduced by 31% to GBP87.8 million from a
pro forma operating loss[**] in the 6 months to April 2004 of
GBP126.5 million (6 months to March 2004: loss of GBP149.6
million).

U.K. seasonal operating loss[**] reduced for the second year in
succession to GBP123.9 million from a pro forma operating
loss[**] in 2004 of GBP148.5 million (6 months to March 2004:
loss of GBP164.7 million).

Northern Europe recorded another record operating profit[**]of
GBP14.2 million compared with a pro forma operating profit[**] in
2004 of GBP4.6 million (6 months to March 2004: profit of GBP5.5
million).

North America recorded a record operating profit[**] of
GBP23.1 million compared with a pro forma operating profit[**]in
2004 of GBP17.7 million (6 months to March 2004: profit of GBP9.5
million).

Group loss before tax reduced to GBP114.1 million compared with a
pro forma loss before tax of GBP177.9 million in 2004 (6 months
to March 2004: loss of GBP199.6 million).

MyTravel also announced that it has contracted to sell its
interest in its joint venture undertakings, Tenerife Sol and
Hotetur, for a total consideration of GBP38.5 million.

Current Trading

(a) Summer season 2005 trading to date is encouraging for all
    divisions;

(b) In the U.K., we have reduced our Summer capacity and have
    36% fewer holidays left to sell than we had at the same time
    last year.  The expected increase in the proportion of
    brochure bookings is coming through and favorably impacting
    gross margin;

(c) In Northern Europe, Summer 2005 capacity has been increased
    by 3% and bookings have increased by 7%, with improved gross
    margins;

(d) In North America, Summer 2005 capacity has been increased by
    5%.  Bookings have increased by 2% but margins during this
    low season period are under competitive pressure;

Outlook

(a) We continue to make progress against the business plan with
    clear performance improvement in the U.K., good performance
    in North America and excellent performance in Northern
    Europe;

(b) Trading improvements in Summer 2005 are likely to be offset
    by fuel price increases estimated to be GBP30 million (using
    17 June 2005 prices).  Despite this, the Board believes that
    the full year's results will be in line with its
    expectations; and

(c) We continue to target an operating profit for all three
    divisions in 2006 and an industry standard 3.5% margin in
    the U.K. in 2007.

- - - - - - - - -
[*] As the Group changed its financial year to end October (from
September), the interim period has also changed and now
represents the whole winter season (November to April).  Prior
year pro forma information for the same period is shown to enable
more meaningful comparisons.

[**] Operating profit/loss is stated before exceptional items and
goodwill amortization and in the case of the Group figures,
includes income from joint ventures and associates.  The loss
before tax for the period to 30 April 2005 after goodwill
amortization of GBP5.6 million, exceptional items of GBP17.8
million and net finance charges of GBP2.9 million was GBP114.1
million.

Peter McHugh, Chief Executive, MyTravel Group plc, said: "We
continue to make good progress against the targets set out in our
business plan as evidenced by a 31% reduction in our winter Group
operating loss over last year.  Demand is strong for all of our
products, across all divisions.  We have an effective management
team in place, and despite fuel price increases we remain on
target to achieve our goals for this financial year.  Our
strengthened financial condition will allow us to institute a
more normal seasonal hedging program over the next several
months.

"Overall, while we continue to push for improvements in our U.K.
performance, MyTravel's recovery is on schedule.  I am confident
of our continued progress."

A copy of these results is available free of charge at
http://bankrupt.com/misc/mytravel(H12005).htm

CONTACT:  MYTRAVEL GROUP PLC
          Peter McHugh, Chief Executive
          John Allkins, Finance Director
          Steven Olivant, Communications Director
          Phone: (Thereafter) 0161 232 6523

          BRUNSWICK
          Fiona Antcliffe
          William Cullum
          Conor McClafferty
          Phone: 020 7404 5959


MYTRAVEL GROUP: Sells Hotel Interests for EUR57.75 Million
----------------------------------------------------------
MyTravel Group signed a deal to sell its interests in joint
venture undertakings Hotetur and Tenerife Sol.

Hotetur is a Palma-based resort hotel group in which MyTravel has
a 50% shareholding, which it acquired in September 2000.  This
interest, together with a loan from MyTravel to Hotetur, is being
sold to Teinver for a total consideration of EUR29 million
(GBP19.3 million).  Teinver is the owner of the remaining 50%
interest in Hotetur.

The consideration comprises EUR19 million (GBP12.7 million) cash
on completion, EUR4 million (GBP2.6 million) cash receivable on
31 December 2005 and EUR6 million (GBP4.0 million) by way of
credits which may be used over a period of three years to settle
the cost of future room-nights bought from Hotetur.  Completion
is expected to take place shortly.

MyTravel has also entered into arrangements with Teinver for the
purchase of accommodation from Teinver (including Hotetur) on
terms, which are commercially attractive to MyTravel.

As at 31 October 2004, MyTravel's share of Hotetur net assets was
GBP22.2 million.  MyTravel's share of Hotetur's earnings before
interest, tax and goodwill amortization for the thirteen-month
period to 31 October 2004 was GBP3.7 million.  The book loss on
disposal is expected to be GBP23 million.

Tenerife Sol is a joint venture that owns three hotels in the
Canary Islands.  MyTravel has agreed to sell its 50% shareholding
for EUR28.75 million (GBP19.2 million), payable in cash on
completion.  Completion is expected in August 2005.  At
completion, MyTravel will pay Tenerife Sol EUR7.8 million (GBP5.3
million) in repayment of an existing shareholder loan.

As at 31 October 2004, MyTravel's share of Tenerife Sol net
assets was GBP18.8 million.  MyTravel's share of Tenerife Sol's
earnings before interest, tax and goodwill amortization for the
thirteen-month period to 31 October 2004 was GBP1.9 million.  The
book loss on disposal is expected to be GBP1 million.

These transactions are consistent with the Group's strategic
objectives and will release both capital and management resource.
The proceeds of the disposals will be used for general corporate
purposes.

Exchange rate

The exchange rate used throughout this announcement is EUR1.5 =
GBP1.

CONTACT:  BRUNSWICK
          Fiona Antcliffe
          William Cullum
          Conor McClafferty
          Phone: 020 7404 5959


NU SPIRIT: Hires Liquidator from Grant Thornton
-----------------------------------------------
At the extraordinary general meeting of Nu Spirit Plc on June 10,
2005 held at Honey Pot Lane, Colsterworth, Grantham, Lincolnshire
NG33 5LY, the special resolution to wind up the company was
passed.  Samantha Keen of Grant Thornton UK LLP, 31 Carlton
Crescent, Southampton SO15 2EW has been appointed liquidator of
the company.

CONTACT:  NU SPIRIT PLC
          Cannister House,
          27 Jewry Street,
          Winchester,
          Hampshire SO23 8RY
          Phone: 02380215670

          GRANT THORNTON U.K. LLP
          31 Carlton Crescent
          Southampton SO15 2EW
          Phone: 023 8022 1231
          Fax: 023 8022 4017
          Web site: http://www.grant-thornton.co.uk


PROFILE MEDIA: Gives up U.S. Arm to Focus on U.K. Operations
------------------------------------------------------------
Profile Media Group has sold its U.S. subsidiary Profile Pursuit
Inc. to Healthspring Communications LLC.

The sale of the group's custom publishing unit, along with its
liabilities and related companies in the U.S., brought in
GBP584,795.  Profile Media is now free of PPI's banking
facilities involving guarantees of GBP1 million and a GBP208,000
rent deposit.  The group has resolved to focus on its U.K.
operations.

Last year, PPI suffered from cancellations of contracts and the
delay of a major project, the Every Woman National Roadshow.  It
incurred losses of GBP688,640 in the period ended June 2004.

These troubles, which saw U.S. revenues down by GBP2.04 million,
were blamed for the decline in the group's turnover from GBP8.7
million to GBP7.9 million.  They are also expected to influence
the group's result in the final six months to December 2004.

Profile Media is predicting losses of at least GBP4 million,
however, losses before tax will be reduced from the GBP1.1
million reported earlier.

Meanwhile, the company revealed Barclays Bank Plc has agreed to
extend the date for the repayment of its GBP3 million term loan
facility to 7 March 2005.

Chairman John Webber and Chief Executive David Ellingham have
also provided an unsecured loan of GBP100,000 each to the company
to be used to provide working capital.  They are also looking at
options to raise debt and equity finance to inject additional
funding to the group.

Profile Media Group is made up of a number of different companies
specializing in a range of products and services from custom
publishing and distribution to multi-channel customer contact and
integrated fulfillment.

It formed Profile Pursuit in 1993 to offer a range of innovative
publishing solutions in the U.S. and U.K.  Other businesses
include Programme Master, Profile Sports Media and Profile
Business Intelligence.

A full copy of the financial results is available free of charge
at http://bankrupt.com/misc/ProfileMedia(2004).mht.

CONTACT:  PROFILE MEDIA GROUP
          5th Floor, Mermaid House
          2 Puddle Dock
          London
          EC4V 3DS
          PMG
          Phone: +44 (020) 7332 2000
          Fax: +44 (020) 7332 2001
          E-mail: info@profilemediagroup.co.uk


RAMCO ENERGY: Splits Chairman, CEO Posts
----------------------------------------
Ramco Energy plc has appointed to the Board Malcolm Hay as a
Non-Executive Director with effect from 22 June 2005.

Mr. Hay, aged 49, has spent over 20 years in investment banking,
holding senior positions with Orion Royal Bank and Credit Suisse
First Boston (CSFB).  Between 1985 and 2001 he was a director at
CSFB where he led Canadian, Australian and U.K. capital markets
teams.  Currently, he is an associate with investment managers
McInroy & Wood. Malcolm was educated at Magdalene College,
Cambridge.  He holds no shares in Ramco.

He will become Chairman of the Company's Audit and Remuneration
Committees.

Dan Stover, Chief Operating Officer, has resigned from the Board
effective 21 June 2005.

The Board has also agreed to split the roles of Chairman and
Chief Executive both currently held by Steve Remp and has
appointed Steven Bertram, currently Group Financial Director as
Managing Director of Ramco Energy plc.

Ramco's chairman Steve Remp said: "I am delighted to welcome
Malcolm onto the Ramco Board.  His successful career in
international capital markets and close knowledge of the oil and
gas sector will be of major benefit as we work to re-build the
Company.  He has already developed a close working relationship
with the Ramco team as we benefited from his advice and guidance
in concluding the recently announced Banking agreements.

"Steven joined Ramco in 1986 and has served as Finance Director
since 1991, he and I have formed an effective team over the years
and I value his analytical and financial skills, coolness under
pressure, attention to detail and ability to think 'out of the
box'."

                            *   *   *

As reported by TCR-Europe on June 21, Ramco Energy has sought
help from Ernst & Young to sell its 86.5% stake in its Seven
Heads operations off the Cork Coast, and other assets.

It has also offered its creditors three million warrants at 34
pence per share valid until June 2010.  In return, the bankers
agreed to extend waiver agreements.

Proceeds from the sale, according to the report, will be used to
pay Seven Head's debt of GBP12 million.  This will also augment
the GBP1.6 million raised by the company through institutional
placing.

Last year, Ramco reported revenue quadrupled in the first half
of 2004 as its loss after tax reduced to closed to GBP1 million,
compared with GBP1.4 million in 2003.

CONTACT:  RAMCO ENERGY PLC
          62 Queen's Rd.
          Aberdeen
          AB15 4YE, United Kingdom
          Phone: +44-1224-352-200
          Fax: +44-1224-352-211
          Web site: http://www.ramco-plc.com


REGENTREALM LIMITED: Senior Unsecured Rating Lowered to 'B-'
------------------------------------------------------------
Fitch Ratings downgraded Regentrealm Limited's Senior Unsecured
rating to 'B-' from 'B' and its senior secured debt to 'BB-' from
'BB'.  The Outlook has been changed to Negative from Stable.
Regentrealm is a subsidiary of United Biscuit Finance, whose
senior subordinated notes was downgraded to 'CCC+' from 'B-' at
the same times.

Fitch says the rating actions follow the publication of very
disappointing results for FY04, with a 13.9% decrease in
underlying EBITDA if the contribution of Jacob's and Triunfo is
deducted.

Fitch is particularly concerned of UB's limited cash flow
generation.

"United Biscuits seems to suffer from a structural inability to
improve profit margins notwithstanding having spent in excess of
GBP130 million on cost-cutting initiatives in the past four
years.  Should this trend continue in 2005, UB may struggle to
generate sufficient cash flow to meet debt repayment obligations
in FY06 and FY07, hence the downgrade and Negative Outlook" says
Stefano Podesta, Director in Fitch's Leverage Finance team in
London.

CONTACT:  FITCH RATINGS
          Stefano Podesta, London
          Phone: +44 (0) 20 7417 4316

          Pablo Mazzini
          Phone: +44 (0) 20 7417 3540

          Giulio Lombardi
          Phone: +44 (0) 20 7417 6314

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

          United Biscuits Finance plc
          Hayes Park North, Hayes End Road, Hayes
          London UB4 8EE, United Kingdom
          Phone: +44-20-8234-5000
          Fax: +44-20-8734-5555
          Web site: http://www.unitedbiscuits.co.uk


RIVER TEES: Names Administrator from Tenon Recovery
---------------------------------------------------
Ian William Kings (IP No 7232) has been appointed administrator
for River Tees Engineering & Welding Limited.  The appointment
was made June 10, 2005.  Its registered office is located at
Tenon House, Ferryboat Lane, Sunderland SR5 3JN.

River Tees Engineering & Welding Ltd. is a partnership of Bob
Gibson and Jill Dean in ship repair, steel fabrication and heavy
engineering.  The venture which started 18 years ago at Dawsons
Wharf in Middlesbrough and moved down river to a four acre site
adjacent to Tees Offshore Base in 1989.

This facility offers a 15,000 square foot workshop, a
machine/fitting shop of 3,000 square feet and an operating
slipway capable of pulling 80tonne vessels.

Visit http://www.river-tees-engineering.com/for more
information.

CONTACT:  RIVER TEES ENGINEERING & WELDING LIMITED
          "The Slipways" Dockside Rd.
          Middlesbrough Cleveland UK
          Phone: +441642226226
          Fax: +441642245544
          E-mail: river-tees@the-slipways.fsnet.co.uk

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


ROYAL & SUN ALLIANCE: Sells 21.5% Stake in Rothschilds
------------------------------------------------------
Royal & SunAlliance Insurance Group plc has agreed to sell its
21.5% shareholding in Rothschilds Continuation Holdings AG.

Jardine Strategic Holdings Limited [1] will acquire 20% and the
Rothschilds Continuation Holdings Employee Share Trust will
acquire the remaining 1.5%.

The transaction follows discussions over the last few months and
is a disposal of a strategic holding which is no longer core to
the business.

The total cash consideration for Royal & SunAlliance's
shareholding will be GBP108.7 million.  The 2005 final dividend,
yet to be declared, will also be paid to Royal & SunAlliance. The
2004 final dividend was CHF22 per share [2].  The pre-tax gain on
disposal will be approximately GBP60 million and will be treated
as an exceptional item outside of the Operating Result in the
management basis income statement.  The transaction is subject to
regulatory approvals.

The net proceeds of the disposal will be used to support other
group activities.

- - - - - - - - -
[1] Jardine Strategic Holdings Limited is part of The Jardine
Matheson Group.

[2] Assuming an exchange rate of GBP1 = CHF2.32, which was the
rate at 20 June 2005.

[3] The consideration for the shareholding of approximately 20%
will be GBP101.5 million, the consideration for the remaining
shareholding will be GBP7.2 million.

[4] The Royal & SunAlliance shareholding in Rothschilds
Continuation Holdings AG is 291,426 shares.

                            *   *   *

As reported by TCR-Europe on June 21, Corvus Capital Inc. has
chided the management of Royal & SunAlliance Plc for its refusal
to cooperate in its takeover of the company.

The investment group of Andrew Regan, who recently identified
RSA as one of its targeted acquisitions, said his company
"remains mindful of the complexities inherent in a company
operating within the insurance sector such as RSA and, with this
in mind, would only have intended to proceed with an offer for
RSA with the cooperation of its existing management."

Valued at GBP2.4 billion, the company is considered the second-
biggest commercial insurer in the U.K. next to Aviva.  It
underwent a radical restructuring last year to address weak
investments and mounting claims.  Since then, its risk profile
has improved, but the threat of potentially large claims in the
U.S. remains.  Analysts expect this to dampen any interest in
the group.

CONTACT:  ROYAL & SUN ALLIANCE INSURANCE GROUP PLC
          30 Berkeley Sq.
          London
          W1J 6EW, United Kingdom
          Phone: +44-20-7636-3450
          Fax: +44-20-7636-3451
          Web site: http://www.royalsunalliance.com


SCATS FEEDS: Liquidator from Grant Thornton Moves in
----------------------------------------------------
At the extraordinary general meeting of Scats Feeds Limited on
June 10, 2005 held at Honey Pot Lane, Colsterworth, Grantham,
Lincolnshire NG33 5LY, the special resolution to wind up the
company was passed.  Samantha Keen of Grant Thornton UK LLP, 31
Carlton Crescent, Southampton SO15 2EW has been appointed
liquidator of the company.

CONTACT:  SCATS FEEDS LIMITED
          Continental House,
          Herbert Walker Avenue,
          Southampton, Hampshire SO15 1HJ

          GRANT THORNTON U.K. LLP
          31 Carlton Crescent
          Southampton SO15 2EW
          Phone: 023 8022 1231
          Fax: 023 8022 4017
          Web site: http://www.grant-thornton.co.uk


SFI GROUP: Falls into Administration
------------------------------------
David Chubb, Mike Jervis and David Hargrave of
PricewaterhouseCoopers were appointed Joint Administrators of SFI
Group Limited on June 23, 2005.

The Group employs 2,900 people and operates 150 pubs and bars
across the U.K. under the trading names: Slug and Lettuce, Bar
Med, Havana, and the Litten Tree.

Following their appointment, the administrators are pleased to
announce that they have completed the sale of 98 of the sites,
together with the head office function, to the Laurel Pub Company
Limited.  It is hoped that buyers can be found for the remaining
sites.

David Chubb, director at PricewaterhouseCoopers and joint
administrator, said, "Following a comprehensive marketing
process, the successful sale of two-thirds of the SFI estate
would be a significant piece in the consolidation of the UK
licensed sector.  We are conducting a review of the performance
and alternative sale options for the remaining 52 sites."

                            *   *   *

SFI Group Plc implemented a financial restructuring on May 28,
2004 in relation to its recovery program.  The group's
restructuring reduced its existing banking facilities of GBP152.9
million to GBP80 million, with the balance converted into equity.
SFI Group posted GBP25.8 million in post-tax loss in 2004, an
improvement from GBP98.3 million in losses in 2003.  The group
said in its Web site, "At this stage, it is too early to tell
whether there will be a recovery to shareholders."

CONTACT:  SFI GROUP PLC
          SFI House
          165 Church Street East
          Woking
          Surrey GU21 6HJ
          Phone: 01483 227900
          Fax: 01483 227903
          Web site: http://www.sfigroup.co.uk

          PRICEWATERHOUSECOOPERS LLP
          Plumtree Court
          London EC4A 4HT
          Phone: [44] (20) 7583 5000
          Fax: [44] (20) 7822 4652
          Web site: http://www.pwc.com

          Jenny Britton, PR Manager
          Business Recovery Services
          Phone:020 7212 2970
          Mobile:07855 522485

          Caroline Feltham, Advisory PR Senior Manager
          Phone:020 7212 3097
          Mobile:07841 783907


VECTURA GROUP: Pre-tax Loss Down to GBP8.8 Million
--------------------------------------------------
Drug development company Vectura Group plc (LSE: VEC) reports
results for the year ended 31 March 2005.

Operating Highlights

(a) NVA237 (formerly AD 237) for Chronic Obstructive Pulmonary
    Disease (COPD)

     (i) US$375 million global licensing agreement with
         Novartis for NVA237.  Successful completion of Phase
         IIa clinical trial,

    (ii) Initial pharmacokinetic evaluations of NVA237
         demonstrated low systemic exposure which could
         facilitate a beneficial side effect profile;

(b) VR004 for erectile dysfunction (ED)

     (i) Commencement of VR004 Phase IIb clinical trial and
         receipt of CTA and IND approvals,

    (ii) Initial pharmacokinetic evaluations correlate with
         rapid onset of activity seen in previous Phase IIa
         study; and

(c) Other

     (i) Successful CTA and IND review of Aspirair(R) inhalation
         device, permitting use of device in Phase II clinical
         studies,

    (ii) Strategic alliance signed with SkyePharma for
         Aspirair(R),

   (iii) Progression of formulation and device technology
         licensing discussions with third parties.

Financial Highlights

(a) AIM listing raised GBP20.1 million before expenses,

(b) Total revenues increased by 57% to GBP4.5 million (2003/04
    GBP2.9 million),

(c) Gross profit more than doubled to GBP3 million (2003/04
    GBP1.4 million),

(d) Loss before tax reduced to GBP8.8 million (2003/04 GBP9
    million),

(e) 33% reduction in loss per share to 8.6p (12.8p 2003/04),

(f) Cash and liquid resources of GBP18.4 million at 31 March
    2005, with additional GBP7.9 million received from Novartis
    in April 2005

Dr. Chris Blackwell, Chief Executive of Vectura, said: "We
approach our first anniversary as a listed company having
strengthened our product pipeline, significantly improved our
financial situation and advanced all areas of our business.  In
particular, the global licensing deal with Novartis signed in
April has demonstrated the value that our business can generate.
With considerable ongoing licensing interest in our technologies,
we shall continue to explore ways of generating value for our
shareholders."

Financial reports are available free of charge at
http://bankrupt.com/misc/VecturaGroup(Prelim_2005).mht

CONTACT:  VECTURA GROUP PLC
          Web site: http://www.vectura.com

          Chris Blackwell, Chief Executive
          Phone: +44 (0) 1249 667 700
          Anne Hyland, Chief Financial Officer

          FINANCIAL DYNAMICS
          David Yates
          Phone: +44 (0) 20 7831 3113
          Lucy Briggs


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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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