TCREUR_Public/050628.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

             Tuesday, June 28, 2005, Vol. 6, No. 126

                            Headlines

C Z E C H   R E P U B L I C

UNION BANKA: Nixes Out-of-court Settlement with Sigma


F R A N C E

MARIONNAUD PARFUMERIES: Minority Investors Back Lawsuit
RECIF SA: Finuchem Sends Takeover Feelers
RHODIA SA: Shareholders Retain CEO Jean-Pierre Clamadieu
RHODIA SA: To Sell Refrigerants Business to DuPont


G E R M A N Y

BAUHOLZSAGEWERK PFAFFRODA: Calls in Administrator from Kuebler
BBZ AQTIV: Succumbs to Bankruptcy
COMBITEC ENERGIE: Ravensburg Court Appoints Administrator
EFFERTZ MALERBETRIEB: Construction Firm Declares Bankruptcy
ELEKTROBAU ZWONITZ: Creditors' Claims Due Next Month

ETIB SYSTEMTECHNIK: Creditors Meeting Set July
EXPEMA GMBH: Gives Creditors Until Next Month to File Claims
FAIRSTORE MESSESERVICE: Sets Creditors Meeting September
FJH AG: Finance Chief to Step down Next Month
GARANT-HAUS: Renovation Firm Collapses into Bankruptcy

GIRINDUS AG: Solvay Launches Bid for Majority Control
HBK CUTTING: Hires Ingo Thurm Interim Administrator
MELOG GMBH: Appoints Administrator from Heilmann
OTTO HARR: Meeting of Creditors Set Second Week of July
SE SACHSISCHE: Hires HWW Partner as Administrator

VOLKSWAGEN AG: To Drop Several Suppliers to Cut Cost by 10%
WALTER BAU: European Commission Okays Strabag Takeover
WILHELM REMMERS: Hires Administrator from Wilhelmshaven


G R E E C E

GENIKI BANK: Reports Small Profit After Reorganization
RADIO A.KORASSIDIS: Shares Under Supervision


H U N G A R Y

PARMALAT HUNGARIA: Rejects Sole Bidder


I R E L A N D

BILCON CONSTRUCTION: In Provisional Liquidation


I T A L Y

PARMALAT FINANZIARIA: Milan Trial Starts September 28


N E T H E R L A N D S

ROYAL SHELL: Shareholders to Vote on Unification of Board Today


P O L A N D

ELEKTRIM SA: Vivendi Offers to Buy Telco Stake


R O M A N I A

ROMPETROL GROUP: 'B-' Long-term Rating Affirmed; Off CreditWatch


R U S S I A

AMBER: Deadline for Proofs of Claim Today
DONSKAYA: Bankruptcy Hearing Set Third Week of July
FACTORY OF RUBBER SHOES: Under External Management Procedure
KOVYLKINSKIY: Bankruptcy Hearing Set September
MURMANSKAYA: Succumbs to Bankruptcy

NIVA: Undergoes Bankruptcy Supervision Procedure
PROTON: Assets for Public Auction Today
SHIPYARD: Creditors Have Until Today to File Claims
TEZA: Ivanovo Court Names R. Larin Insolvency Manager
YUG-ELECTRO-4: Appoints Y. Galadzheva Insolvency Manager


S E R B I A   &   M O N T E N E G R O

ZASTAVA: Might Win Fiat Punto Deal, Report Says


S P A I N

AVANZIT SA: Foresees Pre-tax Profit of EUR6.5 Million in 2005


U K R A I N E

ANTIK: Andrij Shkoda to Liquidate Company
DONPROMTRANS: Court Appoints Insolvency Manager
KONVINT: Bankruptcy Supervision Starts
PASS: Donetsk Court Opens Bankruptcy Proceedings
SLAVUTA-AVIA LTD.: Declared Insolvent

SVITANOK: Liquidator Takes over Operations
VINKOMPLEKT: Under Bankruptcy Supervision
VLADIBOR: Succumbs to Bankruptcy


U N I T E D   K I N G D O M

ALLIED DOMECQ: E.U. Grants Conditional Approval to Sale
ARVIN INTERNATIONAL: Senior Unsecured Ratings Cut to Ba2
BAE SYSTEMS: Latest Acquisition Boosts Presence in U.S.
BAE SYSTEMS: To Supply Software in Jordan, UAE
BANK OF CREDIT: U.K. Court Upholds Damages Award to Creditors

COSTAIN GROUP: Oil Unit Wins EUR1.32 Billion Deal in Iran
EUROTUNNEL SA: E.U. Okays U.K. Aid for Rail Freight Services
INMARSAT PLC: Investments Unit Inks EUR453 Mln Credit Facility
LUCID ENTERTAINMENT: To Miss Financial Reporting Deadline
MG ROVER: E.U. Mulls Using Structural Funds to Ease Crisis
SCOTMOBILITY LIMITED: Liquidator Takes over Helm

* Large Companies with Insolvent Balance Sheets


                            *********


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


UNION BANKA: Nixes Out-of-court Settlement with Sigma
-----------------------------------------------------
Pump manufacturer Sigma Group is seeking an out-of-court
settlement with Union Banka over its debt, Czech News Agency
says.

Union Banka has launched a legal action to recover money from
Sigma, which is the bank's third largest debtor.  Sigma board
member Jan Capka said his company has already paid off a third of
the liabilities since Union Banka succumbed to bankruptcy in May
2003.  Union Banka spokesman Oldrich Babicky has ruled out an
out-of-court settlement.

Union Banka's trouble started when it took over struggling
financial houses in the mid-1990s.  It closed on February 21,
2003 due to insufficient liquidity.  It tried to present a
restructuring plan, but was rejected, forcing it to file for
bankruptcy in May 2003.

At the time of its collapse, Union Banka had 130,000 clients and
its liquidation value was put at CZK8 billion to CZK11 billion.
The group booked debt of CZK19.17 billion.

CONTACT:  UNION BANKA a.s.
          Ul. 30 Dubna c. 35
          70200 Ostrava
          Phone: 596108111
          Fax: 596120134
          E-mail: union@union.cz
          Web site: http://www.union.cz

          SIGMA GROUP a.s.
          Jana Sigmunda 79
          783 50 Lutin
          Phone: +420 585 652 050
          Fax: +420 585 944 294
          Web site: http://www.sigmagroup.cz


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


MARIONNAUD PARFUMERIES: Minority Investors Back Lawsuit
-------------------------------------------------------
The legal action against perfume retail chain Marionnaud
Parfumeries has gained support from around 50 current and former
minority shareholders, Les Echos says.  According to them, the
company committed fraud by reporting inaccurate financial
information.

Marionnaud's problems started late last year after admitting
around EUR93 million in accounting errors.  Financial markets
authority, Autorite Des Marches Financiers (AMF), is launching a
formal inquiry into the accounting mess.  Creditor banks have
refused to support the group's debt restructuring plan pending an
independent audit of its accounts.

In March Marionnaud told AMF it had revised its 2003 net profit
from the reported EUR38.7 million to EUR12.7 million.  The
company booked EUR78.9 million in net losses for the first half
of 2004.

Marionnaud has more than 1,200 perfume shops in France and about
a dozen other European countries.  Chairman Marcel Frydman
founded the company in 1984.  In April, the Frydman family sold
its entire stake in the firm to AS Watson, earning them around
EUR534 million.  The transaction has been approved by the
European Commission.

CONTACT:  MARIONNAUD PARFUMERIES S.A.
          5 Avenue de Paris
          94300 Vincennes
          Phone: +33 (0) 1 48 08 69 69
          Fax: +33 (0) 1 48 08 01 51
          Web site: http://www.marionnaud.com


RECIF SA: Finuchem Sends Takeover Feelers
-----------------------------------------
Industrial robotics group Finuchem has expressed interest in
acquiring silicon wafer handling equipment maker Recif, Les Echos
says.

Finuchem is expected to submit its business plan for Recif to the
commercial court in Toulouse, according to the report.  The buyer
plans to keep the group's entire operations and retain as many
jobs as possible.

Troubled Company Reported Europe, on May 13, 2005, reported that
Recif succumbed to administration after booking EUR10.9 million
in net losses for 2004, a twofold increase from EUR5.3 million
the year before.  After failing to finance a much-needed
restructuring, things turned for the worse when one potential
investor backed out from rescue talks, citing a decline in order
backlog.

Based in Aussonne near Toulouse, the group managed to hike its
turnover by 28% to EUR28.8 million in 2004, but failed to offset
its operating losses, which swelled from EUR7.21 million in 2003
to EUR7.97 million in 2004.

CONTACT:  RECIF S.A.
          ZI du Moulin
          31840 Aussonne
          Phone: 33 (0) 825 83 47 47
          Fax: 33 (0)5 61 85 27 66
          Web site: http://www.recif.com

          GROUPE FINUCHEM
          76, boulevard de la Republique
          92100 Boulogne-Billancourt
          Phone: +33 1 46 10 90 60
          Fax: +33 1 46 10 90 70
          Web site: http://www.finuchem.fr


RHODIA SA: Shareholders Retain CEO Jean-Pierre Clamadieu
--------------------------------------------------------
At the Annual Meeting of Rhodia S.A. Thursday, shareholders
approved all resolutions submitted by the company's Board of
Directors and rejected all those not approved by the Board.

The shareholders present or represented at the meeting held
32.76% of Rhodia's capital.

The shareholders Meeting approved, in particular, the appointment
of two independent directors recommended by the Board of
Directors: Pascal Colombani, the former Chairman of the Board of
Areva; and Olivier Legrain, Chairman and CEO of Materis, and
voted in favor of the appointment of Jacques Kheliff as a
director representing employee shareholders.  The Shareholders
Meeting also approved, by a majority of nearly 95%, the
resolution concerning the re-election as a board member of
Jean-Pierre Clamadieu.

The Shareholders Meeting rejected by a majority of nearly 90% the
resolution submitted by Colette Neuville in her capacity as
President of ADAM, that aimed to dismiss Yves-Rene Nanot,
Chairman of the Board of Rhodia, and rejected by a majority of
nearly 81% the resolution regarding the early termination of the
directorship held by Hubertus Sulkowski.

Rhodia is a global specialty chemicals company recognized for its
strong technology positions in applications chemistry, specialty
materials & services and fine chemicals.  Partnering with major
players in the automotive, electronics, fibers, pharmaceuticals,
agrochemicals, consumer care, tires and paints & coatings
markets, Rhodia offers tailor-made solutions combining original
molecules and technologies to respond to customers' needs.

Rhodia subscribes to the principles of Sustainable Development
communicating its commitments and performance openly with
stakeholders.  Rhodia generated net sales of EUR5.3 billion in
2004 and employs 20,000 people worldwide.  It is listed on the
Paris and New York stock exchanges.

                            *   *   *

TCR-Europe reported on May 16 that net sales of Rhodia for the
first quarter stood at EUR1.5 billion, a 9.4% growth on the same
basis (constant structure and exchange rates), reflecting the
significant impact of price increases (9.3%) with an increase of
1.6% in volumes and a transactional exchange rate effect of
-1.5%.  This resulted to operating income of EUR55 million, far
from EUR1 million in the first quarter of 2004.

Meanwhile, net loss for the period came to -EUR72 million
compared with -EUR92 million in the first quarter of 2004.  Net
financial result totaled -EUR115 million, including EUR17 million
in non-recurring costs related to the February 2005 refinancing,
a EUR31 million unrealized foreign exchange loss (conversion of
U.S. dollar-denominated debt) to be put in
perspective of a EUR64 million unrealized forex gain booked in
2004, primarily in the fourth quarter.  Interest expense (EUR58
million) and securitization costs (EUR6 million) were unchanged
from the prior-year period.

CONTACT:  RHODIA S.A.
          26, quai Alphonse Le Gallo
          92512 Boulogne-Billancourt Cedex, France
          Phone: +33-1-55-38-40-00
          Fax: +33-1-55-38-44-71
          Web site: http://www.rhodia.com

          Press Relations
          Lucia Dumas
          Phone: +33 1 55 38 45 48
          Anne-Laurence de Villepin
          Phone: +33 1 55 38 40 25


RHODIA SA: To Sell Refrigerants Business to DuPont
--------------------------------------------------
DuPont and Rhodia S.A. have signed an agreement by which DuPont
plans to purchase the ISCEON(R) hydrofluorocarbon (HFC)
refrigerant blends business from Rhodia, pending regulatory
approvals.

The transaction will likely be finalized sometime in the third
quarter.  The ISCEON(R) range of refrigerants comprises
non-ozone-depleting blends used as a replacement for ozone
depleting refrigerants in air conditioning, cold storage,
domestic refrigeration and process cooling.

Mark Baunchalk, global business manager - refrigerants, DuPont
Fluorochemicals, said: "This acquisition will enlarge our HFC
product portfolio, and enable us to offer customers additional
sustainable refrigerant solutions to accelerate the reduction of
ozone depleting substances around the world.

"DuPont has been a pioneer in the science of refrigerants for 75
years and is committed to continue developing science and
technology to bring more sustainable cooling and environmental
solutions to customers around the world.  This acquisition
supports that effort and will strengthen our business."

Laurent Schmitt, president of the Rhodia Organics Enterprise,
said: "This transaction, marking a further step in the strategic
refocusing of Rhodia Organics' Enterprise, forms part of the
divestiture of non-strategic activities being undertaken by the
Rhodia Group with a view to consolidating its business
portfolio."

Rhodia will continue to manufacture and sell refrigerant R-22
from its Avonmouth facility in the United Kingdom.

DuPont Fluorochemicals is a global supplier of refrigerants,
using science and technology, market knowledge and global reach
to provide sustainable materials and solutions to enhance
personal comfort, enable food preservation, improve industrial
processing and reduce environmental footprints.  For more
information, visit http://www.dupont.com/suva/.

Rhodia is a global specialty chemicals company recognized for its
strong technology positions in applications chemistry, specialty
materials and services, and fine chemicals.  Partnering with
major players in the automotive, electronics, fibers,
pharmaceuticals, agrochemicals, consumer care, tires, and paints
and coatings markets, Rhodia offers tailor-made solutions
combining original molecules and technologies to respond to
customers' needs.

Rhodia subscribes to the principles of Sustainable Development
communicating its commitments and performance openly with
stakeholders.  Rhodia generated net sales of EUR5.3 billion
(US$6.9 billion) in 2004 and employs 20,000 people worldwide.  It
is listed on the Paris and New York stock exchanges.

DuPont is a science company.  Founded in 1802, DuPont puts
science to work by creating sustainable solutions essential to a
better, safer, healthier life for people everywhere.  Operating
in more than 70 countries, DuPont offers a wide range of
innovative products and services for markets including
agriculture, nutrition, electronics, communications, safety and
protection, home and construction, transportation and apparel.

                            *   *   *

TCR-Europe reported on May 16 that net sales of Rhodia for the
first quarter stood at EUR1.5 billion, a 9.4% growth on the same
basis (constant structure and exchange rates), reflecting the
significant impact of price increases (9.3%) with an increase of
1.6% in volumes and a transactional exchange rate effect of -
1.5%.  This resulted to operating income of EUR55 million, far
from EUR1 million in the first quarter of 2004.

Meanwhile, net loss for the period came to -EUR72 million
compared with -EUR92 million in the first quarter of 2004.  Net
financial result totaled -EUR115 million, including EUR17 million
in non-recurring costs related to the February 2005 refinancing,
a EUR31 million unrealized foreign exchange loss (conversion of
U.S. dollar-denominated debt) to be put in
perspective of a EUR64 million unrealized forex gain booked in
2004, primarily in the fourth quarter.  Interest expense (EUR58
million) and securitization costs (EUR6 million) were unchanged
from the prior-year period.

CONTACT:  RHODIA S.A.
          26, quai Alphonse Le Gallo
          92512 Boulogne-Billancourt Cedex, France
          Phone: +33-1-55-38-40-00
          Fax: +33-1-55-38-44-71
          Web site: http://www.rhodia.com

          Press Relations
          Lucia Dumas
          Phone: +33 1 55 38 45 48
          Anne-Laurence de Villepin
          Phone: +33 1 55 38 40 25

     DUPONT
          DuPont Building
          1007 Market Street
          Wilmington, DE 19898
          Contact:
          Ellen G. Pressley
       Phone: 919-248-5598
          E-mail: ellen.g.pressley@usa.dupont.com
Horst Ulrich Reimer
          Phone: +49 6172 87-1297
E-mail: horst-ulrich.reimer@deu.dupont.com


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


BAUHOLZSAGEWERK PFAFFRODA: Calls in Administrator from Kuebler
--------------------------------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against Bauholzsagewerk Pfaffroda GmbH on June 7.  Consequently,
all pending proceedings against the company have been
automatically stayed.  Creditors have until July 13, 2005 to
register their claims with court-appointed provisional
administrator Christian Heintze.

Creditors and other interested parties are encouraged to attend
the meeting on August 24, 2005, 9:30 a.m. at the district court
of Chemnitz, Saal 28, im Gerichtsgebaude Fuerstenstrasse 21, in
Chemnitz, 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:  BAUHOLZSAGEWERK PFAFFRODA GMBH
          Contact:
          Franz Amberger, Manager
          Freiberger Strasse 73, 09526 Pfaffroda
          Phone: (037360)6 73-0
          Fax: (037360)6 73 15
          E-mail: bauholzsaegewerk@t-online.de

          Christian Heintze, Administrator
          Kassbergstrasse 24, 09112 Chemnitz
          Web site: http://www.kuebler-gbr.de


BBZ AQTIV: Succumbs to Bankruptcy
---------------------------------
The district court of Lubeck opened bankruptcy proceedings
against BBZ aQtiv GmbH on June 6, 2005.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until July 21, 2005 to register their
claims with court-appointed provisional administrator Mr. Peer
Moller.

Creditors and other interested parties are encouraged to attend
the meeting on August 4, 2005, 10:15 a.m. at Amtsgericht Luebeck,
Am Burgfeld 7, 23568 Lubeck, Saal: E3 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.bbz-luebeck.de/for more information.

CONTACT:  BBZ AQTIV GMBH
          Head office
          Richard-Wagner- Str.4
          23556 Luebeck
          Phone: 0451-48 66 93-0
          Fax: 0451-48 66 93-9
          E-mail: bbz@bbz-luebeck.de

          Contact:
          Dr. Peer Moller, administrator
          Lower Querstr. 1,
          23730 new cities H


COMBITEC ENERGIE: Ravensburg Court Appoints Administrator
---------------------------------------------------------
The district court of Ravensburg opened bankruptcy proceedings
against CombiTec Energie- und Umwelttechnik GmbH on June 1.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 30, 2005 to
register their claims with court-appointed provisional
administrator Albert Hirt.

Creditors and other interested parties are encouraged to attend
the meeting on July 14, 2005, 10:30 a.m. at Amtsgericht 88212
Ravensburg, Herrenstr. 42 Saal 3 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.combi-tec.de/for more information.

CONTACT:  COMBITEC ENERGIE- UND UMWELTTECHNIK GMBH
          Gewerbegebiet Sodenstock 11, 88371 Ebersbach-Musbach
          Contact:
          Robert Staiger
          Web site: http://www.combi-tec.de/

          Albert Hirt, Administrator
          Berner Feld 74, 78628 Rottweil


EFFERTZ MALERBETRIEB: Construction Firm Declares Bankruptcy
-----------------------------------------------------------
The district court of Duesseldorf opened bankruptcy proceedings
against Effertz Malerbetrieb GmbH on June 20.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until July 21, 2005 to register their
claims with court-appointed provisional administrator Georg
Kreplin.

Creditors and other interested parties are encouraged to attend
the meeting on August 11, 2005, 9:30 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.

Established in 1996, Effertz Malerbetrieb handles construction
projects, with clients ranging from private individuals to firms
and churches.  Visit http://www.effertz-malerbetrieb.defor more
information.

CONTACT:   EFFERTZ MALERBETRIEB GMBH
           Klever Str. 49, 41464 Neuss
           Contact:
           Ulrich Effertz
           Unterdorf 47, 41516 Grevenbroich
           Phone: (02182)60816
           Fax: (02182)60846
           E-mail: firma@effertz-malerbetrieb.de

           Georg Kreplin, Administrator
           Berliner Allee 21, 40212 Duesseldorf


ELEKTROBAU ZWONITZ: Creditors' Claims Due Next Month
----------------------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against Elektrobau Zwonitz GmbH on June 8, 2005.  Consequently,
all pending proceedings against the company have been
automatically stayed.  Creditors have until July 20, 2005 to
register their claims with court-appointed provisional
administrator Wolfgang Hauser.

Creditors and other interested parties are encouraged to attend
the meeting on August 31, 2005, 11:30 a.m. at the district court
of Chemnitz, Saal 28, im Gerichtsgebaude Fuerstenstrasse 21, in
Chemnitz, 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.

Elektrobau Zwonitz sells electrical supplies and provides related
services.

CONTACT: ELEKTROBAU ZWONITZ GMBH
         Muehlstr. 4a 08297 Zwonitz
         Phone: +49 (37754) 28 51
         Fax: +49 (37754) 28 52

         Wolfgang Hauser, Administrator
         Poetenweg 36, 08056 Zwickau


ETIB SYSTEMTECHNIK: Creditors Meeting Set July
----------------------------------------------
The district court of Syke opened bankruptcy proceedings against
ETIB Systemtechnik GmbH on June 1, 2005.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until August 24, 2005 to register their
claims with court-appointed provisional administrator Dr.
Christian Willmer.

Creditors and other interested parties are encouraged to attend
the meeting on July 14, 2005, 10:35 a.m. at which time the
administrator will present his first report of the insolvency
proceedings.  The court will verify the claims set out in the
administrator's report on September 15, 2005, 10:35 a.m. at
Amtsgericht Syke, Saal 112, Nebenstelle, Hauptstr. 5A, Syke.

CONTACT:  ETIB SYSTEMTECHNIK GMBH
          Web site: http://www.etib.de/

          Contact:
          Dr. Christian Willmer, administrator
          Georgstrasse 5, D-27283 Verden


EXPEMA GMBH: Gives Creditors Until Next Month to File Claims
------------------------------------------------------------
The district court of Amtsgerich opened bankruptcy proceedings
against Expema GmbH on June 1, 2005.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until July 13, 2005 to register their claims with
court-appointed provisional administrator Atty. Steffen Beck.

Creditors and other interested parties are encouraged to attend
the meeting on August 16, 2005, 9:10 a.m. at CORP. Stuttgart,
Hauffstr. 5, EC, Hall 4 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.expema.defor more information.

CONTACT:  EXPEMA GMBH EXTERNES PERSONALMANAGEMENT
          Hauptverwaltung Torstr. 21
          70173 Stuttgart
          Phone: (07 11) 2 48 493-6
          Fax: (07 11) 2 48 493-88

          Contact:
          Steffen Beck, administrator
          Danneckerstr. 52,
          70182 Stuttgart
          Phone: 0711/2388930


FAIRSTORE MESSESERVICE: Sets Creditors Meeting September
--------------------------------------------------------
The district court of Krefeld opened bankruptcy proceedings
against FairStore Messeservice Deutschland GmbH on June 6, 2005.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until Sept. 1, 2005 to
register their claims with court-appointed provisional
administrator Atty. Wilhelm Klaas.

Creditors and other interested parties are encouraged to attend
the meeting Sept. 6, 2005 at 10:20 a.m. 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 November 1, 2005 at 9:00 a.m. in
the building of the district court Krefeld, head building, north
rampart 131, 47798 Krefeld, 2, Etage, Room 214.

Visit http://www.fairstore.netfor more information.

CONTACT:  FairStore Messeservice Deutschland GmbH
          Viktoriastr. 32 47799
          Krefeld
          Phone: 02151 - 65463-0

          Contact:
          Atty. Wilhelm Klaas, administrator
          Eichendorffstrasse 25,
          47800 Krefeld
          Phone: (02151) 80-58-0
          Fax: + 4902151805858


FJH AG: Finance Chief to Step down Next Month
---------------------------------------------
FJH AG Chief Financial Officer Dr. Thomas Meindl will leave the
company effective 31 July 2005 and resign as CFO after the
approval of annual accounts by the Supervisory Board.  A
successor will be named shortly.

                            *   *   *

Last week, TCR-Europe reported an institutional investor acquired
350,000 shares in FJH AG for free.  According to Borsen Zeitung,
the stake came from existing and former management board members.

In November, TCR-Europe said FJH suffers from the prevailing
trend in the local insurance sector, which refuses to
invest in the first nine months of the financial year.  Its
results were also affected by reorganization measures implemented
in the third quarter and the application of the future IFRS
regulations similar to U.S.-GAAP.

IFRS revenues amounted to EUR50.9 million (2003: EUR95.2
million); its 9-month result after tax was -EUR73.5 million
(2003: EUR12.8 million) and EBIT -EUR80.0 million (2003: EUR21.5
million).  EBITDA in the third quarter adjusted by one off and
ultimate effects amounted to -EUR4.5 million compared to -EUR5.6
million in the previous quarter.

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


GARANT-HAUS: Renovation Firm Collapses into Bankruptcy
------------------------------------------------------
The district court of Charlottenburg opened bankruptcy
proceedings against Garant-Haus Berlin GmbH on June 15.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until September 15,
2005 to register their claims with court-appointed provisional
administrator Udo Feser.

Creditors and other interested parties are encouraged to attend
the meeting on August 18, 2005, 9:15 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 November 3,
2005, 9:05 a.m. at the same venue.

Garant-Haus handles construction, rehabilitation and
reconstruction of buildings.

CONTACT:  GARANT-HAUS BERLIN GMBH
          Romerweg 117,10318 Berlin
          Phone: 04403/99750
          Fax: 04403/997530

          Udo Feser, Administrator
          Uhlandstr. 165/166, 10719 Berlin


GIRINDUS AG: Solvay Launches Bid for Majority Control
-----------------------------------------------------
Majority shareholders of Girindus AG have agreed to sell their
35% stake to Solvay Organics GmbH at EUR7.00 per no-par value
share.

Solvay Organics, an indirect subsidiary of Solvay S.A., launched
Thursday a bid to acquire at least 51% of the German specialty
chemicals company for EUR45 million.  The transaction is expected
to be completed in the next few months, pending the outcome of
regulatory procedures, including the approval by relevant
antitrust authorities.

Dr. E. Piepho, General Manager of the new Business Unit and
Managing Director of Solvay Organics GmbH, said: "The acquisition
of Girindus will mark another step in the implementation of the
Group's strategy of profitable and sustainable growth.

"It will complement the Group's existing businesses in organic
chemical specialties, and will put Solvay in a position to offer
a range of innovative molecules, materials and solutions for
novel applications, hence matching demands from the Group's
global customer base beyond its current product lines."

Based in Bensberg, Germany, Girindus specializes in process
development and the production of innovative drug and cosmetic
actives.  Listed in the Prime Segment of the German Stock
Exchange, with operations in the United States, it employs 140
people, including 50 scientists holding PhDs.

Solvay Organics GmbH is a 100% subsidiary of Solvay GmbH, the
German subsidiary of the Solvay Group.  Solvay S.A. is an
international chemicals and pharmaceuticals group with
headquarters in Brussels. It employs some 30,000 people in 50
countries.  In 2004 consolidated sales amounted to EUR7.9 billion
generated by its three activity sectors: Chemicals, Plastics and
Pharmaceuticals.  It is listed on the Euronext 100 index of top
European companies.

Meanwhile, in the first three months of this year, Girindus
reported earnings before taxes, interest and depreciation
(EBITDA) were -EUR2.1 million (first quarter 2004: -EUR 0.7
million).  Operating result amounted to -EUR2.4 million (2004:
minus EUR 1.4 million), while net loss almost doubled to EUR2.787
million from EUR1.421 in the preceding quarter.

It also revealed negative EBITDA (-EUR4.9 million) this year as
sales fell to EUR23.1 million against EUR31.5 million in 2003.
Earnings per share dropped in comparison to the previous year
from -EUR0.55 to -EUR1.29 in 2004.

In its annual report, the company said: "Despite a mild recovery
in the economy as a whole, the situation within the
pharmaceutical industry continued to deteriorate during 2004.  A
significantly lower number of new drug approvals and faltering
innovation resulted in uncertainties for market participants and
in particular brought pressure in the area of custom
manufacturing.  The trend of outsourcing of active pharmaceutical
ingredient production fell during 2004, contradicting predictions
made several years ago.

"Due to the market situation and the suspension of negotiations
concerning the sale of a specific technology to a foreign
company, we were compelled to revise our targets during the
fourth quarter.

"Girindus achieved lower Group sales in 2004 . . . due to the
abandonment of a sale of a large-scale production process that
was already in the final negotiation stages.  Global group sales
were also hit by currency exchange rates.  In addition to margin
reductions in the U.S. Business, the weak U.S. dollar also
decreased consolidated sales from American units."

Full copies of the financial results are available free of charge
at http://bankrupt.com/misc/GirindusAG(Q12005).pdfand
http://bankrupt.com/misc/GirindusAG(2004).pdf.

CONTACT:  GIRINDUS AG
          Buchenallee 20
          51402 Bensberg
          Deutschland
          Web site: http://www.girindus.com

          Peter J. Bergsteiner,
          Director Finance & Investor Relations
          Phone: +49 - (0)2204 - 926 - 900
          Fax: +49 - (0)2204 - 926 - 990
          E-mail: pbergsteiner@girindus.com

          SOLVAY S.A.
          Rue du Prince Albert, 33
          B-1050 Brussels, Belgium
          Phone: +32-2-509-6111
          Fax: +32-2-509-6617
          Web site: http://www.solvay.com


HBK CUTTING: Hires Ingo Thurm Interim Administrator
---------------------------------------------------
The district court of Hildesheimer opened bankruptcy proceedings
against HBK cutting edge technology GmbH on April 31, 2005.
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 Mr. Ingo Thurm.

Creditors and other interested parties are encouraged to attend
the meeting on Aug. 5, 2005 at 9:30 a.m. at hall 16, head
building, emperor street 60, 31134 Hildesheim, at which time the
administrator will present his first report of the insolvency
proceedings.  The court will also verify the claims set out in
the administrator's report during this meeting, while creditors
may constitute a creditors committee and or opt to appoint a new
insolvency manager.

Visit http://www.hbk-schneidtechnik.de/for more information.

CONTACT:  HBK SCHNEIDTECHNIK GMBH HILDESHEIMER
          Str. 22 31137
          Hildesheim Germany
          Phone: +49 (0) 5121/42077
          Fax: +49 (0) 5121/45382

          Contact:
          Ingo Thurm, Administrator
          Leonhardtstr.  4
          30175 Hanover
          Phone: 0511/383960
          Fax: 0511/3839698

          Fax: + 4902151805858


MELOG GMBH: Appoints Administrator from Heilmann
------------------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against MeLOG GmbH on June 7.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until July 12, 2005 to register their claims with
court-appointed provisional administrator Thomas Heilmann.

Creditors and other interested parties are encouraged to attend
the meeting on August 2, 2005, 10:30 a.m. at the district court
of Chemnitz, Saal 24, im Gerichtsgebaude Fuerstenstrasse 21, in
Chemnitz, 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:  MELOG GMBH
          Leipziger Strasse 18/2, 08393 Meerane
          Contact:
          Kerstin Weber, Manager
          Manuela Fritzsche, Manager

          Thomas Heilmann, Administrator
          Barbarossastrasse 2, 09112 Chemnitz
          Web site: http://www.Heilmann.LI


OTTO HARR: Meeting of Creditors Set Second Week of July
-------------------------------------------------------
The district court of Karlsruhe opened bankruptcy proceedings
against Otto Harr GmbH on June 3, 2005.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors had until June 21, 2005 to register their
claims with court-appointed provisional administrator Dr. Henrike
Maier.

Creditors and other interested parties are encouraged to attend
the meeting on July 19, 2005 at 10:30 a.m. at the district court
Karlsruhe, lock place 23, 76131 Karlsruhe, hall IV/1.OG 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.harr-garagen.de/for more information.

CONTACT:  Otto Harr GmbH & Co. KG
          Industriestrasse 11
          75053 Gondelsheim
          Phone: 0 72 52 - 97 82 - 40
          Fax: 0 72 52 - 97 82 - 50

          Contact:
          Dr. Henrike Maier, Administrator
          O 4, 13-16, 68161 Mannheim
          Phone: (0621) 120780


SE SACHSISCHE: Hires HWW Partner as Administrator
-------------------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against SE Sachsische Elektronenstrahl GmbH on June 7.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until July 18, 2005 to
register their claims with court-appointed provisional
administrator Ruediger Wienberg.

Creditors and other interested parties are encouraged to attend
the meeting on September 7, 2005, 10:00 a.m. at the district
court of Chemnitz, Saal 28, im Gerichtsgebaude Fuerstenstrasse
21, in Chemnitz, 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:  SE SACHSISCHE ELEKTRONENSTRAHL GMBH
          Otto-Schmerbach-Str. 21A 09117 Chemnitz
          Phone: +49 (371) 808 03 70
          Fax: +49 (371) 866 44 62
          Contact:
          Dr. Bodo Furchheim

          Ruediger Wienberg, Administrator
          Michaelstr. 71, 09116 Chemnitz
          Web site: http://www.hww-kanzlei.de


VOLKSWAGEN AG: To Drop Several Suppliers to Cut Cost by 10%
-----------------------------------------------------------
Volkswagen AG will trim down the number of its direct suppliers
next year, as part of its goal to reduce material cost by 10%.

Board member Francisco Javier Garcia Sanz told Welt am Sonntag on
Sunday that under the cost-cutting measure, some of Volkswagen's
600 direct suppliers will now deliver components to module
producers.

According to the Scotsman, Volkswagen AG also targets more than
GBP2.65 billion in savings and efficiency improvements in the
next three years.  The measure, said to be in preparation for
mid-term changes in market prices, exchange rates and sales mix
of the company's models, came after Chief executive Bernd
Pischetsrieder revealed plans to save GBP2 billion in 2005 alone
to top last year's full-year operating profit of EUR2.015
billion.

In May, financial magazine Capital disclosed the company
plans to cut cost of materials by EUR1 billion next year as part
of its new scheme aimed at bringing down overall cost by 20%.
The move came on top of its ForMotion program, which is said to
be on track to deliver EUR3.1 billion in savings this year.

Mr. Pischetsrieder also noted the company's plans to beef up
annual production at its Mexico site from 400,000 to 500,000
units, while annual production capacity in China is expected to
increase to 900,000 vehicles from 648,490 last year.

According to the South China Morning Post, First Auto Works-
Volkswagen, one of Volkswagen AG's two major joint ventures in
China, also aims to slash cost by CNY2.8 billion this year.

The joint venture, which posted a CNY400 million loss in the
first quarter of 2005, plans to trim expenses on parts and
components by using domestic parts.  Workers will also have two
shifts, instead of three, with an individual quota of 29.2 units
a year in 2005, and increasing to 37.2 by 2009.  The business,
which carries the Audi brands and Volkswagen's Golf, Bora and
Jetta cars, also eyes an output of one Jetta in 30 hours, from
the current 35 to 38 hours.

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

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


WALTER BAU: European Commission Okays Strabag Takeover
------------------------------------------------------
Acting under the E.U. Merger Regulation, the European Commission
has given the Austrian firm Bauholding Strabag SE (Strabag) the
go-ahead to take over parts of the bankrupt German construction
company Walter Bau-AG (Walter Bau).

The Commission concluded that the operation will not
significantly impede effective competition in the EEA or any
substantial part of it, as the parties' combined market shares on
the relevant markets in Germany will be limited and there will be
only a slight increase in the market share in Austria.  At the
same time, the Commission has referred the assessment of the
impact of the operation on the Hamburg regional asphalt market to
Germany's Federal Cartel Office.

Strabag is a construction company that operates worldwide in all
areas of the industry, especially in building and civil
engineering.  Walter Bau provides services in connection with
turnkey construction, civil engineering and road building.  Final
bankruptcy proceedings with regard to Walter Bau began on April
1, 2005.

Strabag is to take over Walter Bau's existing building and civil
engineering projects, which were transferred to the recently
founded Dywidag Schluesselfertig- und Ingenieurbau GmbH.  Strabag
is also acquiring control of the civil engineering company Walter
Heilit Verkehrswegebau GmbH, Dywidag International GmbH,
Dyckerhoff & Widmann Ges.mbH, which operates in Austria, and RIB
GmbH, which is continuing some bridge-construction projects
managed by the Walter Bau subsidiary Niklas GmbH.

Although Strabag and Walter Bau are among the largest
construction companies in Germany, the operation does not raise
any competition concerns.  Strabag is taking over only a small
number of Walter Bau's construction contracts.  The parties'
combined shares of the construction, road-building and other
civil engineering markets will remain well under 20%.  While
Strabag is the largest construction company in Austria, Walter
Bau's companies have only small-scale operations there and, by
taking them over, Strabag will increase its market share only
slightly.

Referral request

On May 30, 2005 Germany's Federal Cartel Office pointed out that
the planned merger would affect competition on the Hamburg
regional market for asphalt, which has all the features of a
distinct market and does not constitute a substantial part of the
Single Market.  In the Hamburg region Walter Heilit has a
shareholding in an asphalt mixing plant.  NMW, which also has a
shareholding in the plant, controls four of the other eight
plants in the region.  Strabag is another competitor, which means
that there would be a risk that antitrust rules could be breached
and a dominant market position created.  The Federal Cartel
Office therefore applied for a referral of the case inasmuch as
this market is affected.  As the case satisfies the conditions
for a referral, the Commission has agreed to do so.  The Federal
Cartel Office will therefore examine whether the merger complies
with national competition law.

CONTACT:  WALTER BAU AG
          Boheimstr. 8
          86153 Augsburg
          Phone: +49 (0)8 21/55 82-00
          Fax: +49 (0)8 21/55 82-3 20
          Web site: http://www.walter-bau.de

          BAUHOLDING STRABAG AG
          Ortenburgerstrasse 27
          9800 Spittal/Drau, Austria
          Phone: +43-47-62-62-00
          Fax: +43-47-62-49-62
          Web site: http://www.bauholding.at


WILHELM REMMERS: Hires Administrator from Wilhelmshaven
-------------------------------------------------------
The district court of Wilhelmshaven opened bankruptcy proceedings
against Wilhelm Remmers KG on June 1, 2005.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until Aug. 16, 2005 to register their
claims with court-appointed provisional administrator Ernst
Schroder.

Creditors and other interested parties are encouraged to attend
the meeting on Sept. 6, 2005 at 9:30 a.m. at Hall 109, district
court Wilhelmshaven -old building, market street 15, 26382
Wilhelmshavens 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.remmers-kg.defor more information.

CONTACT:  Wilhelm Remmers KG
          Weserstr. 141, 26382 Wilhelmshaven
          Phone: 04421/201552

          Contact:
          Ersnt Schroder, Administrator
          Montsstr. 12,
          D-26382 Wilhelmshavens
          Phone: 04421/15060
          Fax: 04421/150678


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


GENIKI BANK: Reports Small Profit After Reorganization
------------------------------------------------------
Geniki Bank returned to profit in the first quarter after a
radical restructuring, Kathimerini reports.

It reported net profit of EUR1.1 million at the end of March, a
reversal of first quarter results for 2004, when it reported loss
of EUR74.3 million.  After-tax group profits amounted to EUR1.8
million.

Deposits, including repos, totaled EUR2,872 million at end-March.
The figure is up 6.6%, or EUR177 million from the previous
quarter.  Loans rose by 0.5% to EUR2,532 million.  Net operating
revenues rose by 31.3% to EUR42.4 million.

Restructuring initiated by its shareholder Societe Generale
included changes in organizational structure, creation of
regional centers to monitor production, focusing on core business
operations, selling and shutting down non-strategic units.  The
bank plans a EUR100.1 million share capital increase.  It will
sell four new shares for every 10 old ones at EUR6 each.

For its asset disposal, Geniki Bank signed earlier this year an
exclusive real estate asset portfolio disposal agreement with
Colliers International.  Colliers had said the entire asset
disposal program began in November 2004 and covers a package of
properties both in the Attica region as well as the rest of the
country.

CONTACT:  COLLIERS INTERNATIONAL
          Mr. Philip H. Bay
          Mr. Kyriacos Kyriakides
          Phone: +(30) 210 683 24 40

          GENIKI BANK
          Dimokratias str. 61, Heraklion
          Phone: +30 2810 330397


RADIO A.KORASSIDIS: Shares Under Supervision
--------------------------------------------
The board of directors of Athens Stock Exchange decided to place
on June 9 the shares of Radio A. Korassidis S.A. under
supervision after considering the recent financial and corporate
developments in the firm.

Radio A. Korassidis is into wholesale and retail trading of
electrical household appliances.  It was founded in 1986.  It
employs 875 people.

On June 15, the company said in a statement to the stock exchange
Piraeus Bank S.A., EFG Eurobank-Ergasias S.A. and National Bank
of Greece S.A. have submitted to the Court of Appeals in Piraeus
a motion that stops all preliminary injunctions and actions of
compulsory execution against the firm.  It said it continues
negotiations with its creditors in order to arrange a long-term
settlement of its obligations and continue its operation.

In April, Radio A. Korassidis sold its 30% shares in Videosonic
S.A. for EUR4 million to concentrate on the electrical home
appliances and electronics sector.  It generated profits of
EuR2.89 million from the disposal.

At the group level, Radio reported turnover of EUR227.85 million
in fiscal year 2003, up from EUR220.32 million the previous year.
Profits before tax and minority interests amounted to EUR4.21
million, against losses of EUR20.64 million in fiscal year 2002.

In fiscal year 2003, Radio A. Korassidis S.A.'s turnover reached
EUR183.43 million, slightly up from EUR181.23 million in 2002.
Profits before tax was EUR652.89, lower than forecasts of EUR1.1
million, but an improvement from losses of EUR22.59 million in
2002.

CONTACT:  RADIO A.KORASSIDIS S.A.
          Grigoriou Lampraki Str. 90-100, 185-47 Piraeus
          Phone:  +30-210-4899100-1001
          Fax:  +30-210-4826209
          Web site: http://www.korasidis.gr
          Contact:
          Andreas Korassidis, President & CEO-Executive Member
          Ms. Anastasia Nikolaou, Vice-President-Executive
                                   Member
          Evagelos Korassidis, Executive Member
          Antonios Makris, Deputy CEO-Executive Member
          Andreas Konstantellos, Executive Member
          John Tsirigotis, Non-Executive Member
          George-Alexandros Garbolas, Non-Executive Member
          Andreas Nikolopoulos, Independent Non-Executive Member
          Lambros Lambrou, Independent Non-Executive Member


=============
H U N G A R Y
=============


PARMALAT HUNGARIA: Rejects Sole Bidder
--------------------------------------
A new tender will be called for troubled Parmalat Hungaria Dairy
Rt. after the recent attempt to sell the group failed last week,
Budapest Business Journal says.

Troubled Company Reporter-Europe, on June 9, 2005, said the
group's liquidator, Ferenc Somogyi, received only one bid for the
assets of the company.  The offer came from A-Tej Kft, a joint
venture of dairy producers and the Italian Catone logistics
company.  A-Tej's bid, however, was rejected Thursday.

The liquidator will launch the new tender next week, with the
deadline set mid-July.  To attract more bidders, the liquidator
lowered the starting price to HUF4 billion (inclusive of VAT).
The starting price for the group's supplies, meanwhile, is pegged
at between HUF1 billion and HUF1.4 billion.

CONTACT:  PARMALAT HUNGARIA RT
          8000 Szekesfehervar,
          Seregelyesi ut 127
          Phone: (36-22) 540-100
          Fax: (36-22) 540-205
          Web site: http://www.parmalat.hu


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


BILCON CONSTRUCTION: In Provisional Liquidation
-----------------------------------------------
High Court judge Paul Gilligan appointed provisional liquidator
Tom Kavanagh to Bilcon Construction Ltd. on Friday.  In
conjunction, he ordered Bilcon to hand over machinery and
scaffolding to IIB Finance.

The court brought down the decision after learning Bilcon had
fallen into arrears of EUR84,577 with the bank.  A report from
Europe Intelligence Wire says Bilcon has liabilities of more than
EUR4.5 million and assets EUR3.75 million and a realizable value
of EUR1.32 million.

Bilcon has three significant and ongoing contracts, in which it
is due payment.  It is due to receive EUR500,000 from a contract
in Midleton in Cork, BilCon.  Bilcon is based in Galway.  It laid
off 160 workers last week.

CONTACT:  BILCON CONSTRUCTION LTD.
          Portumna
          Co. Galway
          Phone: 050 974 1427
          Mobile: 087 235 6238
          E-mail: bilconstruction@indigo.ie
          Contact:
          William Conway


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


PARMALAT FINANZIARIA: Milan Trial Starts September 28
-----------------------------------------------------
Judge Cesare Tacconi of Milan bankruptcy court has indicted
Parmalat founder Calisto Tanzi for his role in the diary giant's
collapse, Bloomberg News reports.

Mr. Tanzi will stand trial on Sept. 28, 2005 on charges of market
rigging, false auditing and hindering regulators' work prior to
the food group's collapse.  The court wrapped up preliminary
hearing on June 7, 2005 when it heard the final arguments of the
respondents' lawyers.  Marco De Luca, a Parmalat lawyer, said in
an interview, "It's very important for investors to know the
trial will start very soon."

GiamPiero Biancolella, Mr. Tanzi's lawyer, said in an interview
at the Milan courthouse, "We are knowledgeable about Tanzi's
responsibility but believe that there is even bigger
responsibility on part of the banks."

"Tanzi told me he never knew bonds were being sold to individual
investors," he said, referring to over EUR7 billion in bonds that
Parmalat defaulted on in 2003.  The lawyer added Mr. Tanzi had
thought the bonds were sold only to banks.  Days after Parmalat's
collapse, on Dec. 27, 2003, Mr. Tanzi was jailed.  He was granted
house arrest in April 2004 and was released in September.

Judge Tacconi likewise rejected Mr. Biancolella's petition to
transfer the trial to Parma, where local prosecutors recently
completed their 18-month probe into fraudulent bankruptcy by the
group.

Others Charged

Judge Tacconi similarly indicted 15 other accused for the same
charges.  Those who will stand trial, on the request of Milan
chief prosecutor Francesco Greco, include eight Parmalat board
members; Andrea Petrucci, former general manager of the group;
Luca Sala, former head of Bank of America's Italian corporate
finance division; and Deloitte & Touche partners Adolfo Mamoli
and Giuseppe Rovelli.

The court will also decide today whether to accept plea
agreements between the prosecutors and the accused.  The
agreements include a 2 1/2-year prison sentence for former
Parmalat chief financial officer Fausto Tonna; two years for
former group chief lawyer Gian Paolo Zini; and 11 months for
former board member Franco Gorreri.

Parma Investigation

Prosecutors in Parma recently requested for indictment of Mr.
Tanzi and 70 other people for fraudulent bankruptcy after
completing an 18-month investigation.  Former chief prosecutor
Vito Zincani has already sent notices to the accused before being
replaced by Gerardo Laguardia, who formerly heads the
prosecutor's office in Piacenza.

Parmalat collapsed in December 2003 after exposing a EUR14
billion hole in its accounts, around eight times more than
reported by former management.  The group's breakdown has been
considered one of the largest financial scam in Europe, prompting
European Union lawmakers to tighten auditing regulations and hike
scrutiny of corporate governance.

CONTACT:  PARMALAT FINANZIARIA S.p.A.
          Legal Seat
          43044 Collecchio (Pr)
          Via Oreste Grassi, 26

          Administrative Seat
          20122 Milan
          Piazza Erculea, 9
          Phone: +39 02 806 8801
          Fax: +39 02 869 3863
          Web site: http://www.parmalat.net


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


ROYAL SHELL: Shareholders to Vote on Unification of Board Today
---------------------------------------------------------------
Royal Dutch/Shell shareholders will decide today on scrapping a
century-old management structure by voting on the merger of its
dual board structure at separate annual general meetings in The
Hague and London.

Royal Dutch Petroleum holds 60% of the group and British arm
Shell Transport and Trading 40%.  It has been operating under the
setup since 1907.

Some investors blamed the complicated system for the
overestimation of proved energy reserves by the company between
January 2004 and February this year.  The crisis resulted to the
ouster of three top executives, including former chairman Philip
Watts.

The group then announced in October it plans to move to a more
traditional single-board structure with one chairman and one
chief executive.  Under it, Royal Shell will scrap its current
dual-board arrangements based in Britain and the Netherlands.  It
will have a primary stock market listing in London and a
secondary listing in the Netherlands.  It will have its
headquarters in the Netherlands.  The changes would become
effective from July 20.

Royal Shell had admitted it overstated its proved reserves by
almost 6.0 billion barrels.  It was finned EUR150 million in
total after investigations launched by U.S. and British
regulators.  Shell said this month it had revised the method by
which it calculates reserves to comply with U.S. regulations.
Shell's proved reserves stood at 10.2 billion barrels at the end
of 2004.

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


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


ELEKTRIM SA: Vivendi Offers to Buy Telco Stake
----------------------------------------------
Vivendi Universal is pursuing a battle with Deutsche Telecom to
regain majority control of Poland's major mobile telecoms
operator, PTC.

The group has offered EUR650 million to buy Elektrim S.A.'s 49%
stake in Telcom, the holding company that owns a majority 51%
stake in PTC, Vivendi chief executive Jean-Bernard Levy said.

"We have invested EUR1.8 billion in the operator of the Era
network (PTC) and we are asking that our rights be respected,"
Mr. Levy told Poland's PAP news agency.

Elektrim convinced a Warsaw court in February to declare it still
remains the direct owner of a 51% stake in PTC.  It transferred
the shareholding to Telcom in 1999, when Vivendi raised its stake
in the holding company to 49%.  Deutsche Telekom holds the
remaining 49% in PTC.  It is also trying to seek control of the
operator.

Elektrim S.A. is a public holding company quoted on the Warsaw
Stock Exchange since 1992.  Its most valuable assets are Elektrim
Telekomunikacja Sp. z o.o., and Elektrownia Patnow-Adamow-Konin
S.A.  Since 1999 Elektrim has implemented the far-reaching
restructuring program in order to improve its operational
efficiency and strengthen its position in the market.  The
strategy aimed, inter alia, at the concentration of the business
in two selected industries, i.e. telecommunications and power.

CONTACT:  ELEKTRIM S.A.
          Panska 77/79
          00-834 Warszawa

          Public relations:
          Ewa Bojar
          Company Spokesman
          Phone: (+48 22) 432 89 55
          Fax:   (+48 22) 432 87 99
          E-mail: ewa_bojar@elektrim.pl

          Investor relations:
          Phone: (+48 22) 432 87 75
          Fax:   (+48 22) 432 87 99
          Web site: http://www.elektrim.pl


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


ROMPETROL GROUP: 'B-' Long-term Rating Affirmed; Off CreditWatch
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term
credit ratings on Romania-based oil refining and marketing
company Rompetrol Group N.V.  At the same time, Standard & Poor's
removed the ratings from CreditWatch, where they had been placed
with negative implications on May 27, 2005.  The outlook is
negative.

The CreditWatch resolution follows the Romanian court decision to
deny the general prosecutor's request that Rompetrol CEO Dinu
Patriciu be held in custody for 30 days.  The dispute, however,
has not been resolved, and the prosecutor is continuing to
investigate Rompetrol.  Standard & Poor's does not expect the
dispute to be solved within 90 days.

Mr. Patriciu was taken into custody for questioning over alleged
money laundering and fraud on May 26.

The rating on Rompetrol continues to be constrained by aggressive
corporate governance and potential exposure to the risks of
government pressure with regard to privatization and taxes, asset
concentration, and large minorities at its core 52%-owned
refinery subsidiary (Petromidia), and aggressive financial
policy.  Total debt at year-end 2004 was $296 million as per the
group's International Financial Reporting Standards accounts,
which include only a portion of the convertible bond, or $887
million including the full amount of the convertible bond.

"Uncertainty continues, stemming from the ongoing investigation
by the general prosecutor, which is likely to take longer than
three months to resolve," said Standard & Poor's credit analyst
Per Karlsson.  "The rating could be lowered if the final outcome
of the dispute is negative for Rompetrol, i.e. if it implies a
material cash outflow, a weakening of the liquidity position,
higher debt, or if Rompetrol loses control over the Petromida
refinery."

If, however, the dispute is resolved positively for the company,
the outlook could return to stable or even to positive,
reflecting the improved operating performance in 2004.  Standard
& Poor's will also closely monitor the company's strategy
regarding the convertible bond (such as any bond repurchases or
any increases in Petromidia's share capital in cash or in kind),
investments, and leverage.  Standard & Poor's expects Rompetrol
to continue to take advantage of improving conditions in
Romania's refined product market, supported by growth of the
economy and the liberalization of the Romanian energy sector.
Nevertheless, free cash flow generation is expected to be
negative in the coming years owing to aggressive investment
plans.

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

CONTACT:  STANDARD AND POOR'S RATING SERVICES
          Group E-Mail Address
          CorporateFinanceEurope@standardandpoors.com


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


AMBER: Deadline for Proofs of Claim Today
-----------------------------------------
The Arbitration Court of Kareliya republic has commenced
bankruptcy supervision procedure on limited liability company
Amber (TIN/KPP 1016040794/101601001).  The case is docketed as
A26-1103/2005-18.  Mr. V. Tyurlik has been appointed temporary
insolvency manager.

Creditors have until June 28, 2005 to submit their proofs of
claim to 185031, Russia, Kareliya republic, Petrozavodsk, Post
User Box 91.  A hearing will take place on Aug. 31, 2005, 3:00
p.m.

CONTACT:  AMBER
          Russia, Kareliya republic,
          Suoyervi, Fabrichnyj Per. 1

          Mr. V. Tyurlik
          Temporary Insolvency Manager
          185031, Russia, Kareliya republic,
          Petrozavodsk, Post User Box 91


DONSKAYA: Bankruptcy Hearing Set Third Week of July
---------------------------------------------------
The Arbitration Court of Rostov region has commenced bankruptcy
supervision procedure on limited liability company Donskaya.  The
case is docketed as A53-1048/2005-S2-8.  Mr. A. Dordzhiev has
been appointed temporary insolvency manager.

Creditors may submit their proofs of claim to 344002, Russia,
Rostov-na-Donu, Sotsialisticheskaya Str. 60 v.  A hearing will
take place on July 19, 2005, 12:00 noon.

CONTACT:  DONSKAYA
          Russia, Rostov region, Semikarakorskiy region,
          Zadono-Kagalnitskaya St.

          Mr. A. Dordzhiev
          Temporary Insolvency Manager
          344002, Russia, Rostov-na-Donu,
          Sotsialisticheskaya Str. 60 v


FACTORY OF RUBBER SHOES: Under External Management Procedure
------------------------------------------------------------
The Arbitration Court of St-Petersburg and the Leningrad region
has commenced external management bankruptcy procedure on open
joint stock company Factory Of Rubber Shoes.  The case is
docketed as A56-25813/03.  Mr. A. En'kov has been appointed
external insolvency manager.

CONTACT:  FACTORY OF RUBBER SHOES
          198020, Russia, St-Petersburg,
          Obvodnogo Kanala Quay, 136

          Mr. A. En'kov
          External Insolvency Manager
          198035, Russia, St-Petersburg,
          Mezhevoj Channel, 5, Office 521


KOVYLKINSKIY: Bankruptcy Hearing Set September
----------------------------------------------
The Arbitration Court of Mordoviya republic has commenced
bankruptcy supervision procedure on open joint stock company
Kovylkinskiy factory of silicate brick.  The case is docketed as
A 39-1475/05-102/7.  Ms. E. Murashkina has been appointed
temporary insolvency manager.

Creditors may submit their proofs of claim to Russia, Mordoviya
republic, Saransk, Krupskoy Str. 29.  A hearing will take place
on Sept. 21, 2005, 9:30 a.m.

CONTACT:  KOVYLKINSKIY
          Russia, Mordoviya republic,
          Kovylkinskiy region, Silikatnyj

          Ms. E. Murashkina
          Temporary Insolvency Manager
          Russia, Mordoviya republic,
          Saransk, Krupskoy


MURMANSKAYA: Succumbs to Bankruptcy
-----------------------------------
The Arbitration Court of Murmansk region commenced bankruptcy
proceedings against Murmanskaya (TIN 5105040240) after finding
the poultry farm insolvent.  The case is docketed as
A42-5802/04-7.  Ms. E. Kayurova has been appointed insolvency
manager.  Creditors may submit their proofs of claim to 183365,
Russia, Murmansk region, Kolskiy region, Molochnyj.

CONTACT:  MURMANSKAYA
          183365, Russia, Murmansk region,
          Kolskiy region, Molochnyj

          Ms. E. Kayurova
          Insolvency Manager
          183365, Russia, Murmansk region,
          Kolskiy region, Molochnyj


NIVA: Undergoes Bankruptcy Supervision Procedure
------------------------------------------------
The Arbitration Court of Rostov region has commenced bankruptcy
supervision procedure on close joint stock company Niva.  The
case is docketed as A53-3225/2005-s2-7.  Mr. V. Rozhkov has been
appointed temporary insolvency manager.

Creditors may send their proofs of claim to 344002, Russia,
Rostov-na-Donu, B. Sadovaya Str. 96, office 207.  A hearing will
take place on Sept. 26, 2005, 9:30 a.m.

CONTACT:  NIVA
          346116, Russia, Rostov region, Millervskiy region,
          Voloshino, Lenina Str. 17

          Mr. V. Rozhkov
          Temporary Insolvency Manager
          344002, Russia, Rostov-na-Donu,
          B. Sadovaya Str. 96, Office 207
          Phone: (863) 240-52-70


PROTON: Assets for Public Auction Today
---------------------------------------
The bidding organizer and insolvency manager of open joint stock
company Proton will sell its property worth RUB197,885,220 on
June 28, 2005, 3:00 p.m. (local time).  The public auction will
take place at 302010, Russia, Orel, Aviatsionnaya Str. 5.

The list of documentary requirements is available at 302010,
Russia, Orel, Aviatsionnaya Str. 5.  To participate, bidders must
deposit an amount equivalent to 20% of the starting price to the
settlement account 40702810400400000132 in branch OJSC MINB,
Orel, correspondent account 30101810000000000790, BIC 045402790.

CONTACT:  PROTON
          302027, Russia, Orel region,
          Leskova Str. 19

          Insolvency Manager/Bidding Organizer
          302010, Russia, Orel region,
          Aviatsionnaya Str. 5
          Phone: (0862) 77-99-61


SHIPYARD: Creditors Have Until Today to File Claims
---------------------------------------------------
The Arbitration Court of Tyumen region has commenced bankruptcy
supervision procedure on close joint stock company Shipyard (TIN
7206019350).  The case is docketed as A70-953/3-2005.  Mr. V.
Vinogradov has been appointed temporary insolvency manager.

Creditors have until June 28, 2005 to submit their proofs of
claim to 644065, Russia, Omsk, 50 Let Profsoyuzov Str. 61.  A
hearing will take place on July 7, 2005.

CONTACT:  SHIPYARD
          626155, Russia, Tyumen region,
          Tobolsk-5, Sudostroiteley

          Mr. V. Vinogradov
          Temporary Insolvency Manager
          644065, Russia, Omsk,
          50 Let Profsoyuzov Str. 61


TEZA: Ivanovo Court Names R. Larin Insolvency Manager
-----------------------------------------------------
The Arbitration Court of Ivanovo region has commenced bankruptcy
supervision procedure on open joint stock company Teza.  The case
is docketed as A17-1245/05-14 B.  Mr. R. Larin has been appointed
temporary insolvency manager.

Creditors may submit their proofs of claim to 155908, Russia,
Ivanovo region, Shuya, Kooperativnaya Str. 51.  A hearing will
take place on Oct. 10, 2005, 9:30 a.m. at the Arbitration Court
of Ivanovo region.

CONTACT:  TEZA
          155908, Russia, Ivanovo region,
          Shuya, Kooperativnaya Str. 57

          Mr. R. Larin
          Temporary Insolvency Manager
          155908, Russia, Ivanovo region,
          Shuya, Kooperativnaya Str. 51


YUG-ELECTRO-4: Appoints Y. Galadzheva Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Rostov region has commenced bankruptcy
supervision procedure on close joint stock company Yug-Electro-4.
The case is docketed as A53-5126/2005-S2-7.  Ms. Y. Galadzheva
has been appointed temporary insolvency manager.

Creditors may submit their proofs of claim to 344002, Russia,
Rostov-na-Donu, Shaumyana Str. 78.  A hearing will take place on
Sept. 26, 2005, 2:30 p.m.

CONTACT:  YUG-ELECTRO-4
          347380, Russia, Rostov region,
          Volgodonsk, Druzhby Str. 4

          Ms. Y. Galadzheva
          Temporary Insolvency Manager
          344002, Russia, Rostov-na-Donu,
          Shaumyana Str. 78


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


ZASTAVA: Might Win Fiat Punto Deal, Report Says
-----------------------------------------------
Car manufacturer Zastava could soon struck a life-saving deal
with Fiat to assemble Fiat Punto, Reuters reports.

Serbia's sole carmaker has been trying without success to find a
strategic partner for a decade now.  A EUR41.5 million (US$51.8
million) debt to Fiat has hindered its efforts to find an
investor.  In August, the Italian company wrote off 72.5% of the
debt.  Zastava has 12 months to pay back the remaining EUR11.5
million to Fiat.

The company also owes money to the state, local creditors and to
employees.  A report last year of the Southeast European Times
says that prior to the deal with Fiat, the automaker's total debt
exceeded the value of company assets by 20%.

The state last year refused to give Zastava further guarantees,
but it then continued to subsidize the firm with EUR66.5 million.
Zastava has been receiving the funds for more than three years.

Zasatav is based in Kragujevac.  It has 4,500 workers, producing
13,500 cars in 2003.


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


AVANZIT SA: Foresees Pre-tax Profit of EUR6.5 Million in 2005
-------------------------------------------------------------
Telecoms company Avanzit S.A. expects to overcome its current
difficulties by the end of next year at the latest, a report from
Cinco Diaz says.

The company filed for receivership in 2002 after a slump in the
telecoms market, and after a failure to reach restructuring
agreement with creditors.  It emerged last year from receivership
through a debt-for-equity restructuring.

Avanzit is now expecting pre-tax profit of EUR6.5 million and
sales of EUR161 million for 2005.  Sales are projected to grow
20% year-on-year, rising to EUR281 million in 2008.  Pre-tax
profit would have then reached EUR26 million.  EBITDA is seen
reaching EUR5.5 million this year and EUR26 million in 2008.

Chairman Ramon Soler told a press conference he expects the
company to return to normality in operating terms at the end of
2006 or the beginning of 2007.  Liquidity problems and
organizational difficulties will remain until then.

CONTACT:  AVANZIT S.A.
          C/Alcala 518  28027   Madrid
          Phone:+34 91 754 67 00
          Fax:+34 91 754 67 24
          E-mail: info.avanzit@avanzit.comrrhh@avanzit.com
          Web site: http://www.avanzit.com/


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


ANTIK: Andrij Shkoda to Liquidate Company
-----------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
proceedings against CJSC ANTIK (code EDRPOU 23979156) on April
25, 2005 after finding the limited liability company insolvent.
The case is docketed as 5/129 B.  Mr. Andrij Shkoda (License
Number AA 116172) has been appointed liquidator/insolvency
manager.

CONTACT:  ANTIK
          84200, Ukraine, Donetsk region,
          Druzhkivka, Chajkovskij Str. 12

          Mr. Andrij Shkoda
          Liquidator/Insolvency Manager
          84500, Ukraine, Donetsk region,
          Artemivsk, Sibirtsev Str. 17/320

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


DONPROMTRANS: Court Appoints Insolvency Manager
-----------------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
proceedings against Donpromtrans (code EDRPOU 30416149) on April
29, 2005 after finding the limited liability company insolvent.
The case is docketed as 46/280-b.  Mr. Valentin Popovich (License
Number AA 719873) has been appointed liquidator/insolvency
manager.

CONTACT:  DONPROMTRANS
          Ukraine, Kyiv region,
          Basejna Str. 3/5

          Mr. Valentin Popovich,
          Liquidator/Insolvency Manager
          Ukraine, Kyiv region,
          Turivska Str. 18/20-56

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


KONVINT: Bankruptcy Supervision Starts
--------------------------------------
The Economic Court of Lviv region commenced bankruptcy
supervision procedure on Konvint (code EDRPOU 23274674).  The
case is docketed as 6/298-29/262.  Mr. V. Vinnikov (License
Number AA 779141) has been appointed temporary insolvency
manager.  The company holds account number 26000302194,
26001301194 at OJSC State Savings Bank of Ukraine, Lviv regional
branch, MFO 325796.

CONTACT:  KONVINT
          Ukraine, Lviv region,
          Turgenyev Str. 76/2

          Mr. V. Vinnikov
          Temporary Insolvency Manager
          Ukraine, Lviv region,
          Pustomiti, Sportivna Str. 2/9

          ECONOMIC COURT OF LVIV REGION
          79010, Ukraine, Lviv region,
          Lichakivska Str. 81


PASS: Donetsk Court Opens Bankruptcy Proceedings
------------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
proceedings against LLC PASS (code EDRPOU 32357632) on May 5,
2005 after finding the limited liability company insolvent.  The
case is docketed as 5/71 B.  Ms. Svitlana Lunkova (License Number
AA 668348) has been appointed liquidator/insolvency manager.  The
company holds account number 26001301666440 at Prominvestbank,
Shahtarsk branch, MFO 334613.

CONTACT:  PASS
          83058, Ukraine, Donetsk region,
          Livoberezhna Str. 94

          Ms. Svitlana Lunkova
          Liquidator/Insolvency Manager
          83054, Ukraine, Donetsk region,
          Politbijtsiv Str. 5/47

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


SLAVUTA-AVIA LTD.: Declared Insolvent
-------------------------------------
The Economic Court of Dnipropetrovsk region commenced bankruptcy
proceedings against Slavuta-Avia Ltd. (code EDRPOU 20223311) on
April 27, 2005 after finding the limited liability company
insolvent.  The case is docketed as B 26/131/03.  Mr. S. Bagmet
(License Number AA 779159) has been appointed
liquidator/insolvency manager.

CONTACT:  SLAVUTA-AVIA LTD.
          49044, Ukraine, Dnipropetrovsk region,
          Karl Marks, 33

          Mr. S. Bagmet,
          Liquidator/Insolvency Manager
          Ukraine, Zaporizhya region, a/b 1064

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


SVITANOK: Liquidator Takes over Operations
------------------------------------------
The Economic Court of Kirovograd region commenced bankruptcy
proceedings against Svitanok (The company holds account number
260080551664 at Ukreksimbank, Kirovograd branch) on April 20,
2005 after finding the private enterprise agro-industrial company
insolvent.  The case is docketed as 10/169.  Ms. Liliya Timakina
(License Number AA 487834) has been appointed
liquidator/insolvency manager.

CONTACT:  SVITANOK
          Ukraine, Kirovograd region,
          Oleksandriya district, Protopopivka, Lenin Str. 103

          Ms. Liliya Timakina
          Liquidator/Insolvency Manager
          28000, Ukraine, Kirovograd region,
          Oleksandriya, Lenin Avenue, 7/12

          THE ECONOMIC COURT OF KIROVOGRAD REGION
          25022, Ukraine, Kirovograd region,
          Lunacharski Str. 29


VINKOMPLEKT: Under Bankruptcy Supervision
-----------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
supervision procedure on LLC Vinkomplekt (code EDRPOU 30223350
The company holds account number 2600430111401 at JSCB Rostok
Bank, Kyiv region branch, MFO 322692) on April 1, 2005.  The case
is docketed as 15/265-b.  Ms. Tetyana Ruban (License Number AA
783057) has been appointed temporary insolvency manager.

CONTACT:  VINKOMPLEKT
          03680, Ukraine, Kyiv region,
          I. Lepse Str. 4

          Ms. Tetyana Ruban
          Temporary Insolvency Manager
          08133, Ukraine, Kyiv region,
          Vishneve, a/b 11

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


VLADIBOR: Succumbs to Bankruptcy
--------------------------------
The Economic Court of Cherkassy region commenced bankruptcy
supervision procedure on Private Scientific-Production Commercial
Firm Vladibor (code EDRPOU 21364261).  The case is docketed as
14/1758.  Mr. Pavlo Kopilets (License Number AB 216926) has been
appointed temporary insolvency manager.  The company holds
account number 260033011039 at JSCB Oshadbank, Kamyanske branch
3279, MFO 354598.

CONTACT:  VLADIBOR
          18000, Ukraine, Cherkassy region,
          Funze Str. 64

          Mr. Pavlo Kopilets,
          Temporary Insolvency Manager
          Ukraine, Cherkassy region,
          Konev Str. 3/132

          ECONOMIC COURT OF CHERKASSY REGION
          18005, Ukraine, Cherkassy region,
          Shevchenko Avenue, 307


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


ALLIED DOMECQ: E.U. Grants Conditional Approval to Sale
-------------------------------------------------------
The European Commission has cleared under the E.U. Merger
Regulation the proposed acquisition of Allied Domecq plc by
Pernod Ricard S.A.  The Commission's clearance is conditional on
the sale by Pernod Ricard of the Scotch whisky brands "Glen
Grant," "Old Smuggler" and "Braemer" and the Portuguese brandy
brands "1920" and "CR&F."  It is also conditional upon the
termination of certain distribution agreements relating to the
"Tullamore Dew" Irish whiskey brand and, for Portugal only,
distribution of "Moet & Chandon" Champagne.  In the light of
these commitments, the Commission has concluded that the
transaction would not significantly impede effective competition
in the EEA or any substantial part of it.

Competition Commissioner Neelie Kroes stated: "Whilst this
transaction strengthens Pernod Ricard's general position in the
wines and spirits sector, the proposed remedies will reduce the
direct overlaps and therefore maintain effective competition on
all affected markets.  "United Kingdom-based Allied Domecq
produces and distributes a range of wines and spirits world-wide,
including "Ballantine's" whisky, "Beefeater" gin, "Courvoisier"
brandy, "Kahlua" and "Malibu" liqueurs and "Stolichnaya" vodka.

The French company Pernod Ricard also produces and distributes
wines and spirits worldwide.  The main spirits brands of Pernod
Ricard include "Chivas Regal", "Clan Campbell" and "The
Glenlivet" Scotch whiskies, "Martell" cognac and "Ricard"
aniseed.

On 21 April 2005, Pernod Ricard launched a public bid to acquire
control of the whole of Allied Domecq.  At the same time, Pernod
Ricard agreed to sell to Fortune Brands certain Allied Domecq
brands and production and distribution assets, in addition to
Pernod Ricard's Larios brand.  The Allied Domecq assets which
Fortune Brands is acquiring include Canadian Club, Courvoisier,
Maker's Mark, Sauza and Laphroaig spirits brands, California
wines (including the Clos du Bois brand), and Allied Domecq
distribution networks together with a number of local brands in
Spain (DYC, Centenario, Castellana, Fundador), in the U.K.
(Harvey's, Cockburn, Teacher's) and in Germany (Kuemmerling,
Jacobi).  The Commission approved the sale of Allied Domecq and
Pernod Ricard brands and distribution assets to Fortune Brands on
10 June (see IP/05/714).  Specific safeguards are foreseen for
the interim period until the transfers to Fortune Brands have
been completed.

The Commission's investigation showed that the acquisition by
Pernod Ricard of the Allied Domecq whisky brands would give rise
to competition concerns as the merged entity would have a
particularly strong position in a number of national markets, in
particular in the Scotch whisky and Irish whiskey categories.  In
addition, the Commission found competition concerns in Portugal,
where Pernod Ricard would have dominated the supply of brandy and
champagne.

To address these concerns, Pernod Ricard undertook to sell off
"Glen Grant", "Old Smuggler" and "Braemer" whisky and the "1920"
and "CR&F" brandy, and to discontinue the agency agreements for
distribution of "Tullamore Dew", Irish whiskey and for
distribution of "Moet & Chandon" and "Dom Perignon" Champagne in
Portugal.  The Commission has concluded that the commitments
given by Pernod Ricard are sufficient to remove the competition
concerns identified by the Commission during its investigation.

                            *   *   *

Last week, Standard & Poor's Ratings Services maintained its
'BBB+' long-term and 'A-2' short-term corporate credit ratings on
Allied Domecq PLC on CreditWatch with negative implications,
where they were placed on April 21, 2005, following the board's
recommendation to accept a takeover offer of the group by Pernod
Ricard S.A.

Details of the financing of the proposed transaction and of some
subsequent disposals have been made public by both parties.

"On the closing of the transaction, the credit measures of the
combined group, net of disposals, would fall significantly below
the medians for the investment-grade rating category," said
Standard & Poor's credit analyst Vincent Allilaire.  "Although
this increased leverage would be somewhat offset by the superior
business profile resulting from the combination, the corporate
credit rating on the combined group is likely to be several
notches lower than the current 'BBB+'."

CONTACT:  ALLIED DOMECQ PLC
          The Pavilions
          Bridgwater Road
          Bedminster Down
          Bristol BS13 8AR
          Phone: +44-117-978-5000
          Fax: +44-117-978-5300
          Web site: http://www.allieddomecq.co.uk

          PERNOD RICARD
          12, Place des Etats-Unis
          75116 Paris, France
          Phone: +33-1-41-00-41-00
          Fax: +33-1-41-00-41-41
          Web site: http://www.pernod-ricard.com/fr

          FORTUNE BRANDS, INC.
          300 Tower Pkwy.
          Lincolnshire
          IL 60069-3640
          Phone: 847-484-4400
          Fax: 847-478-0073
          Web site: http://www.fortunebrands.com

          LION CAPITAL LLC
          8484 Wilshire Blvd. Ste. 700
          Beverly Hills, CA 90211
          Phone: 866-207-8999
                 323-852-5090
          Fax: 323-852-5099
          Web site: http://www.lioncapital.us

          BROWN-FORMAN CORPORATION
          850 Dixie Hwy.
          Louisville, KY 40210
          Phone: 502-585-1100
          Fax: 502-774-7876
          Web site: http://www.brown-forman.com

          THE BLACKSTONE GROUP, INC.
          360 N. Michigan Ave., 15th Fl.
          Chicago, IL 60601
          Phone: 312-419-0400
          Fax: 312-419-8419
          Web site: http://www.bgglobal.com

          CONSTELLATION BRANDS, INC.
          370 Woodcliff Dr., Ste. 300
          Fairport, NY 14450-4222 (Map)
          Phone: 585-218-3600
          Fax: 585-218-3601
          Web site: http://www.cbrands.com


ARVIN INTERNATIONAL: Senior Unsecured Ratings Cut to Ba2
--------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating (formerly senior implied rating) and senior unsecured
ratings of ArvinMeritor, Inc. to Ba2 from Ba1.  The speculative
grade liquidity rating has been lowered to SGL-3 (adequate) from
SGL-2 (good).

The actions consider the challenging automotive production
environment the company's Light Vehicle Systems Group (LVS)
continues to face and the impact to the company's liquidity
profile arising from restructuring programs and reduced, but
adequate, access to its revolving credit as a result of narrowed
headroom under its financial covenants.  However, the company's
Commercial Vehicle Systems Group (CVS) is benefiting from higher
levels of Class 8 truck production in North America as well as
stronger demand in Europe for medium and heavy-duty commercial
vehicles.  To date the strength in CVS has not fully offset
weakness in LVS with consolidated numbers and cash flows from
continuing operations exhibiting lower debt protection measures
and higher levels of adjusted debt.

Going forward improving CVS contributions should produce stronger
consolidated performance.  The company's revised guidance on cash
flows for the current fiscal year are negative with cash
disbursements under restructuring programs expected to continue
into fiscal 2006.  However, the company has indicated its
intention to complete the sale of the North American portion of
its Aftermarket business before the end of the current fiscal
year (September).  Proceeds from that sale would replenish
liquidity and potentially facilitate a reduction in leverage. The
stable outlook reflects the net effect of these developments with
the company continuing with an elevated level of indebtedness.

These ratings were affected:

(a) ArvinMeritor, Inc.,

(b) Corporate Family (previously called Senior Implied) to Ba2
    from Ba1,

(c) Senior Unsecured to Ba2 from Ba1,

(d) Issuer rating to Ba2 from Ba1,

(e) Senior Unsecured shelf to (P)Ba2 from (P)Ba1,

(f) Speculative Grade Liquidity rating to SGL-3 from SGL-2,

(g) Arvin Capital I - Preferred stock to Ba3 from Ba2

Lower automotive vehicle production in North America and Europe
and higher steel costs have adversely impacted the results of the
LVS group, which has reported operating losses through the first
half of fiscal 2005.  While these losses included charges for
restructuring and the bankruptcy of a British customer, operating
results would still have only been close to a 1% operating
margin.  CVS has experienced strengthening demand as cyclical
recoveries in heavy and medium duty trucks in both North America
and Europe have begun to accelerate.

However, combined with increased working capital investment, the
cash impact of restructuring actions taken to date, the net
effect has been a deterioration in profit margins, negative free
cash flow, and higher levels of adjusted debt.  The company's
restructuring actions are expected to aggregate $135 million with
$62 million having been taken in the second fiscal quarter. Of
the total expected charges, about $110 million will have a cash
impact, with $23 million incurred thus far.  Adjusted debt
(ex-pension)/EBITDAR on a last twelve months basis stood at 3.6 X
at March 2005.  Revised cash flow guidance for the current fiscal
year indicates negative free cash flow.

Going forward strength in CVS is more likely to offset weakness
in LVS as demand for commercial vehicles is anticipated to remain
strong into 2006.  However, current leverage statistics are
elevated and cash flow generation from operations has been poor.
As a result, debt protection measures no longer reflect a Ba1
credit.

To date asset sales have supplemented liquidity.  The company
also anticipates the sale of the North American portion of its
Aftermarket business in the next 4 months.  Proceeds from this
transaction will improve the company's liquidity and potentially
facilitate lower levels of indebtedness.  While the downgrade
considers the challenging business environment in LVS and the
company's elevated leverage, the stable outlook anticipates
improved contributions from CVS, cost reductions from
restructuring and potential debt reduction from proceeds of asset
sales

The liquidity rating has been lowered to SGL-3 representing
adequate liquidity over the next twelve months.  Lower levels of
cash flow generation have impacted the company's liquidity
profile.  At March 31, 2005 the company had approximately $99
million of cash, down from $132 million at its fiscal year-end in
September 2004.  Free cash flow from operations will be
constrained over the next 18 months as the cash portion of the
company's restructuring initiatives will reduce cash generated
from operations.  The sale of the North American portion of its
Aftermarket business should more than offset these cash uses.
Furthermore, when completed, the restructuring program is
represented to generate annual savings of between $50-$60
million/year.

The company's unsecured bank credit facility is for $900 million
and has a maturity in 2008.  The facility provides for same-day
borrowing capability for the full amount of the facility, but
does include a MAC clause at each drawing for so long as the
company does not have an investment grade rating.  The principle
financial covenants are; Net Debt/EBITDA not to exceed 3.25
times, and (EBITDA less capex)/Interest greater than 1.50 times.
The company has remained in compliance with these covenants, but
headroom has diminished during the course of the fiscal year.
While potential improvements in operating results could improve
the cushion over the next year, the covenants currently limit the
company's access to less than the full amount of the facility.
There are no rating triggers involved, but the pricing grid is
driven by the company's long-term debt ratings. At the end of
March approximately $48 million was drawn under the revolver with
roughly $30 million of letters of credit issued under its
commitment.

ArvinMeritor's $250 million domestic account receivable
securitization facility has a current maturity date in September
2005.  A EUR50 million (approx. $60 million) facility for
European receivables expired at the end of March.  The domestic
facility does have a rating trigger, but the company's ratings
are above this level (ratings must fall below Ba3 at Moody's or
below BB- at Standard & Poor's.  At March 31 the company had
utilized approximately $65 million of the commitments under the
securitization arrangement.  European subsidiaries had factored
approximately $15 million of receivables at the end of second
fiscal quarter.

Negative rating developments would arise from further erosion in
core business performance resulting in deterioration in operating
profits, adjusted leverage approaching 4 times; persistent
negative free cash flow, and EBIT/Interest below 2 times.
Factors that would lead to positive ratings developments include;
adjusted leverage retreating below 3 times; EBIT/Interest
coverage sustained closer to 3 times; and free cash flow/debt at
6% or higher.

ArvinMeritor is an $8 billion global supplier of a broad range of
integrated systems, modules and components to the motor vehicle
industry.  The company is headquartered in Troy, MI and services
the light vehicle, commercial truck, trailer and specialty
equipment manufacturers and related aftermarkets.  The company
employs approximately 31,000 people at manufacturing locations in
25 countries.

CONTACT:  MOODY'S INVESTORS SERVICE
          New York
          Michael J. Mulvaney
          Managing Director
          Corporate Finance Group
          Phone: (journalists) 212-553-0376
          Phone: (subscribers) 212-553-1653

          Corporate Finance Group
          New York
          Edwin Wiest
          Vice President - Senior Analyst
          Phone: (journalists) 212-553-0376
          Phone: (subscribers) 212-553-1653


BAE SYSTEMS: Latest Acquisition Boosts Presence in U.S.
-------------------------------------------------------
BAE Systems plc has completed its acquisition of United Defense
Industries Inc., after receiving all shareholder and regulatory
approvals.

The Company announced it had entered into a definitive merger
agreement to acquire United Defense on 7 March 2005 in a
transaction valued at US$4.192 billion (GBP2.25 billion).

The acquisition of United Defense is a major development for BAE
Systems in progressing its strategy as the premier transatlantic
aerospace and defense company.  United Defense had sales in 2004
of US$2.292 billion (GBP1.257 billion).

Mike Turner, BAE Systems' Chief Executive, said: "BAE Systems is
proud to welcome United Defense into the company.  United Defense
is an excellent company, with a demonstrated record of
performance, an outstanding reputation with its customers and a
great heritage of innovation and technology.  This acquisition
creates one of the world's leading designers, manufacturers and
support providers of land and armament systems."

To enable BAE Systems to better serve its customers, the company
is combining its existing land systems activities in the U.K.,
Sweden and South Africa with United Defense to form a new BAE
Systems Land and Armaments business group led by Tom Rabaut and
headquartered in Arlington, Virginia, U.S.A.  BAE Systems Land
and Armaments will report to Mark Ronald, President and CEO, BAE
Systems Inc.

BAE Systems Land and Armaments employs some 11,000 people at
locations in the U.S., U.K., Sweden and South Africa.  The
acquisition of United Defense further increases BAE Systems
presence in the United States to nearly 35,000 employees.

                            *   *   *

In February, Moody's Investors Service placed the debt ratings
of BAE Systems plc (Baa2) on review for possible downgrade.  In
a related action, Moody's has placed the debt ratings of United
Defense Industries, Inc. (Ba2) under review for possible
upgrade.  The reviews were prompted by the announcement that BAE
had agreed to purchase United Defense.

CONTACT:  BAE SYSTEMS PLC
          Warwick House, Farnborough Aerospace Center
          Farnborough
          Hampshire GU14 6YU, United Kingdom
          Phone: +44-1252-373-232
          Fax: +44-1252-383-000
          Web site: http://www.baesystems.com


BAE SYSTEMS: To Supply Software in Jordan, UAE
----------------------------------------------
BAE Systems plc has signed an International Distributor Agreement
with International Computer Systems (London) Ltd. (ICS), to
distribute its Geospatial Exploitation Products (GXP) in Jordan
and United Arab Emirates (UAE) through sister companies in Amman
and Dubai.

The distributor agreement with ICS extends BAE Systems'
commitment to involve international partners to distribute its
technically advanced photogrammetry and image analysis software,
which includes SOCET SET(R) and SOCET GXP(TM).

Dan London, BAE Systems' vice president for GXP Sales and
Marketing said: "We're looking forward to working with ICS to
help them succeed in the UAE and Jordan markets.

"ICS is a strong company with a well deserved reputation for high
quality services.  Not only do we wish to expand our business,
but we already have several valued customers in these countries,
with whom we can work more closely and frequently through our
relationship with ICS."

ICS specializes in systems integration, comprehensive IT
networks, and automated systems for an international pool of
clients, from small businesses to multinational groups.
Established in 1978, ICS has built and preserved strong
relationships with partners and customers.  Their core
applications use open platforms and the latest technologies to
serve a number of sectors including: government, public
administration, banking and finance, healthcare, education and
telecommunications.  The turnkey solutions offer value-added
capabilities that are implemented with a minimum of time, effort
and cost.  ICS specialists have extensive experience in
Geomatics, including cartography, digital mapping, GIS,
photogrammetry, remote sensing, satellite imagery, aerial
photography and surveying.

Dr. Jehad Hijazi, Regional Marketing Manager, and Remote Sensing
and GIS Applications Manager for ICS, said: "We fully appreciate
the market need for the many advanced digital photogrammetry and
image analysis functionalities built into BAE Systems' GXP
solutions.

"We're excited about distributing GXP products in the Middle
East. Starting this cooperation as a distributor for BAE Systems'
GXP allows us to complement the geomatics products we are
promoting and improve our own professional services."

BAE Systems is the developer and supplier of SOCET SET and SOCET
GXP software as well as other innovative solutions widely used by
commercial, defense and intelligence customers for mapping,
photogrammetry, geospatial analysis and image analysis.

BAE Systems is an international company engaged in the
development, delivery and support of advanced defense and
aerospace systems in the air, on land, at sea and in space.  BAE
Systems North America is one of America's foremost national
security, aerospace and information systems companies.

                            *   *   *

In February, Moody's Investors Service placed the debt ratings
of BAE Systems plc (Baa2) on review for possible downgrade.  In
a related action, Moody's has placed the debt ratings of United
Defense Industries, Inc. (Ba2) under review for possible
upgrade.

The reviews were prompted by the announcement that BAE had
agreed to purchase United Defense.  The acquisition is expected
to be financed with approximately US$3 billion (EUR2.7 billion)
in new debt, with the remainder funded with cash and new equity
issued by BAE.

CONTACT:  BAE SYSTEMS PLC
          Warwick House, Farnborough Aerospace Center
          Farnborough
          Hampshire GU14 6YU, United Kingdom
          Phone: +44-1252-373-232
          Fax: +44-1252-383-000
          Web site: http://www.baesystems.com

          Ed Langmaid
          Phone: 858-675-5995
          Mobile: 858-449-5520
          E-mail: ed.langmaid@baesystems.com


          INTERNATIONAL COMPUTER SYSTEMS (LONDON) LTD.
          The Courtyard, 14a Sydenham Road
          Croydon, Surrey, CR0 2EE, United Kingdon
          Phone: +44(0)20 8681 5421
          Fax: +44(0)20 8688 1673
          Web site: http://www.icslondon.com/


BANK OF CREDIT: U.K. Court Upholds Damages Award to Creditors
-------------------------------------------------------------
Deloitte & Touche, liquidator of Bank of Credit and Commerce
International, on Wednesday won a landmark case against Bank of
India in the U.K., the Financial Times reported.  The Court of
Appeals upheld a US$82 million damage claim in favor of creditors
for deals arranged by BoI more than 20 years ago.

BCCI made large short-term deposits with BoI early in the 1980s.
The money was lent by BCCI to a nominee of BCCI, allowing it to
show improved finances over its year-ends and conceal losses.
Deloitte says the deals were intended to help conceal huge losses
in BCCI's central treasury.

Last year a High Court judge found K L Samant, then BoI's chief
manager for the U.K. and Europe, had been dishonest when entering
the transactions.  The court maintained the verdict, ruling that
Mr. Samant's guilt was sufficient to hold BoI liable even if its
directors are not aware of the fraud.

BCCI, a bank incorporated in Luxembourg and run from London,
collapsed in 1991 with as much as US$16 billion in debt.  The
collapse affected around 80,000 depositors.

BCCI's liquidator has been pursuing legal action in the U.K. to
recover funds for creditors.  It is suing the Bank of England for
misfeasance, hoping to claim as much as GBP1 billion in damages.

Liquidators said the decision was the "first reported case in
England where a bank had been held liable for fraudulent
trading."


COSTAIN GROUP: Oil Unit Wins EUR1.32 Billion Deal in Iran
---------------------------------------------------------
Costain Oil, Gas & Process (COGAP), part of Costain Group plc,
has been awarded the US$1.6 billion (EUR1.32 billion) contract
(as lead contractor in the joint venture) for the Bid Boland 2
gas treatment facility, by NIGC, the National Iranian Gas
Company.

The Bid Boland gas treatment facility will process up to 2
billion cubic feet per day of sweet and sour gas plus condensates
and liquefied petroleum gas.  The Bid Boland project, which is
known as Bid Boland 2, is located in the southwest of Iran,
approximately 15 kilometers from Behbahan City in Khuzestan
province.

The project will be developed in consortium with partners
Dragados, Sazeh and Jahanpars.  It is expected to take four years
to complete and mobilization will start immediately.

The treated associated gas will be fed into the national IGAT
pipeline network, while ethane will be supplied as feedstock to
the nearby Arvand petrochemical complex.  Propane and butane
(LPG) will be exported for sale via a new storage facility to be
built at Mahshahr, some 100 kilometers distant.

The existing Bid Boland 1 facility, constructed by Costain, has
been processing some 800 million cubic feet per day of associated
gas since the early 1970s.

Costain's first project in Iran was the construction of the
Trans-Iranian railway in 1935.

Charles Sweeney, Managing Director of COGAP, said: "Costain has a
long history of working in the Middle East and we are delighted
to have been selected for this prestigious project."

Stuart Doughty, Costain Group Chief Executive, said: "Against
intense competition, we were awarded the contract in recognition
of our overall technical, engineering and construction expertise.
This contract is a significant boost to our strategy of
developing an international gas processing business."

                            *   *   *

TCR-Europe reported on May 21 that the Companies Court has
approved the reduction of share capital and cancellation of share
premium account in the company.  Each shareholder now holds the
same number of shares and each holding will bear the same
relationship to the total issued share capital and market
capitalization of the company as does a shareholder's current
shareholding.  The only difference will be that the nominal
value of the ordinary shares will now be 5 pence.

Also last month, Fitch Ratings affirmed Costain's ratings at
Senior Unsecured 'B' and Short-term 'B'.  The Outlook is Stable.

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

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

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

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

          COLLEGE HILL
          Mark Garraway
          Matthew Gregorowski
          Phone: 020 7457 2020


EUROTUNNEL SA: E.U. Okays U.K. Aid for Rail Freight Services
------------------------------------------------------------
The European Commission approved on June 22 a state aid measure
by the U.K. government in favor of the company English Welsh
Scottish Railway International Ltd. (EWSI), which currently
provides cross-Channel rail freight services.  The aid serves to
compensate EWSI for infrastructure expenditure that other rail
transport operators are not burdened with and is necessary to
ensure the continued provision of rail freight services through
the Channel Tunnel.  The aid is therefore considered compatible
with the E.U. state aid rules and promotes the broader European
objective of developing a sustainable transport system with
better performing rail services.2

The aid is a time-limited extension of the financial arrangements
available to EWSI for the payment of the "Minimum User Charges"
to use the Channel Tunnel.  Through these financial arrangements
approved by the European Commission in 1998[1], the U.K.
Strategic Rail Authority undertook to pay the Minimum User
Charges on behalf of EWSI until 30 April 2005.

The Minimum User Charges are payable to Eurotunnel until 30
November 2006 irrespective of the actual use of the Tunnel.  They
were devised to contribute to the original project financing
requirements for the Tunnel, in addition to recovering the direct
infrastructure costs of running trains through it.

Today, the freight traffic through the Tunnel is not yet
sufficient for EWSI to bear the cost of these charges, which for
the period 1 May 2005 -- 30 November 2006 is estimated to be
EUR60 million.  Therefore, in order to ensure the continued
operation of rail freight services through the Channel Tunnel,
the U.K. authorities have agreed to pay the charges on behalf of
EWSI until 30 November 2006.  EWSI will use its best endeavors to
keep the freight services at a level, at least broadly equivalent
to that of today and will reduce entry barriers to cross-Channel
freight services by making traction available to other rail
operators at market rates.

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

          Press Office
          Phone: + 44 (0) 1303 288728
                 or + 44 (0) 1303 288737
          E-mail: press.uk@eurotunnel.com

          Investor Inquiries
          Xavier Clement
          Phone: + 331 55 27 36 27
          E-mail: xavier.clement@eurotunnel.com


INMARSAT PLC: Investments Unit Inks EUR453 Mln Credit Facility
--------------------------------------------------------------
Inmarsat Investments Limited, a subsidiary of Inmarsat plc, has
signed a new US$550 million (EUR453.57 million) syndicated credit
facility led by Joint Bookrunners and Mandated Lead Arrangers
Barclays Capital (the Investment Banking Division of Barclays
Bank PLC), ING Bank N.V. and The Royal Bank of Scotland plc.

The facility is for general corporate purposes including
refinancing existing debt, and was arranged in connection with
Inmarsat plc's recently announced listing on the London Stock
Exchange.

The US$550 million five-year financing is split between a US$250
million (EUR206.16 million) amortizing term loan and a US$300
million (EUR247.38 million) revolving credit facility.  The term
loan and drawings under the revolving credit facility are
initially priced at 120bp above Libor and thereafter tied to a
leveraged grid.

The transaction was syndicated on a targeted basis among the
company's core relationship banks and despite being
oversubscribed was not increased above the US$550 million
initially sought.  In addition to the three Mandated Lead
Arrangers there are nine Joint Lead Arrangers all of whom were
lenders to Inmarsat Investments Limited in the previous
syndicated credit facility.

Headquartered in London, Inmarsat is the leading provider of
global mobile satellite communications services, providing data
and voice connectivity to end-users worldwide.  Inmarsat has more
than twenty-five years of experience in designing, launching and
operating its satellite-based network.

With a fleet of ten owned and operated geostationary satellites,
Inmarsat provides a wide range of data and voice services,
including telephony, fax, video, email and high-speed 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


LUCID ENTERTAINMENT: To Miss Financial Reporting Deadline
---------------------------------------------------------
Lucid Entertainment Inc. is rescheduling the reporting of its
financial results from June 30 to July 29, according to Canada
StockWatch.  It is rescheduling its AGM in relation to the delay.

The reports due are annual audited financial statements for the
year ended Dec. 31, 2004, and unaudited interim financial
statements for the period ended March 31, 2005.

Lucid Entertainment has clubs in Toronto, London, and Hollywood.
The company's shares were delisted from the Toronto Venture
Exchange on March 21.  Its subsidiary, Lucid Manchester Ltd.,
which has discontinued its operations, entered bankruptcy
proceedings in the United Kingdom on June 15, 2005.  Its Toronto
and Los Angeles operations continue to operate.

The company is currently trying to secure new financing, and is
seeking to reduce existing debt, as well as restructure long-term
and short-term obligations.

CONTACT:  LUCID ENTERTAINMENT INC.
          100 Allstate Parkway, Suite 600
          Markham, Ontario L3R 6H3
          Canada
          Phone: +1 (905) 470-7117
          Fax: +1 (905) 470-0900

          Investor Relations:
          Tita Gonzalez
          E-mail: tgonzalez@lucidworld.com

          Investment Opportunities:
          Lisa Ruscica
          E-mail: lruscica@lucidworldcom
          Web site: http://www.LucidWorld.com


MG ROVER: E.U. Mulls Using Structural Funds to Ease Crisis
----------------------------------------------------------
In April 2005, U.K. West Midlands-based MG Rover Group went into
administration, entailing 6,250 redundancies with an additional
15,000 people at risk (mainly in the supply chain).

The European Commission has responded by informing U.K.
Authorities that it would facilitate and encourage the use of
Structural Funds to cope with the Rover crisis.  Meetings were
held between the West Midlands authorities and Commission's
officials in Birmingham and in Brussels to examine ways of
support.

The work to help redundant people started almost immediately with
Jobcentre Plus and was followed by the Learning Skills Councils
with ESF (European Social Fund) support.  The case could be seen
as a good practice in the commission's response to a crisis
situation.

Planned Structural Funds

ESF support to address the Rover crisis equal EUR74.5 million, of
which EUR46 million are ESF and EUR28.5 million ERDF.  Funds made
available to tackle the Rover crisis are readjustments within the
existing programs.  Final decisions on figures will be taken by
the program's authorities in July 2005.

The EUR74.5 million funding is broken down to:

(a) objective 2 financing of EUR38.5 million (of which EUR10
    million is ESF) allocated to:

    (i) establish a Wage subsidy scheme for skilled workers to
        compensate the employer during the employee's period of
        training for the lack of productivity of the employees
        taken on;

   (ii) creation of an ESF loan fund for the purpose of helping
        those over 50 years old made redundant.

(b) objective 3 (only ESF) financing of EUR36 million will be
    allocated to Emergency Job Search package.  Thus far, the
    ESF has funded initial interview, needs assessment, and
    establishing individual training plans, among others.  The
    training delivery phase is to run until October 2005.

The refocusing of the programs to tackle the Rover crisis will
reach beyond the crisis itself and will contribute to diversify
the economic structure of the region, to underpin the
competitiveness of the region and help to meet labor market
shortages and needs in other activities e.g. construction.

In the U.K., the automotive industry (including components)
directly employs 69,000 people with a further 53,000 employed in
the automotive retail sector and 118,000 in other related
manufacturing areas.  Employment in the direct vehicle and engine
manufacturing sector declined from 146,000 in 1971 to 61,748 in
2003 with further declines to 50,000 forecast by Cambridge
Econometrics even before the Rover crisis.  Before this, others
(Ford owned Jaguar & Land Rover and Peugeot) had also announced
redundancies, meaning that within a few months one third of the
region's directly employed automotive jobs were lost.  The region
affected is the West Midlands and the main city concerned
Birmingham.

Two Structural Funds programs are in place in the West Midlands:

(a) objective 2 program: total Structural Funds financing of
    EUR889.5 million, of which 16% (EUR144.4 million) comes from
    the ESF.  This program focuses on management and
    entrepreneurial skills in SMEs, retraining and upskilling of
    SMEs and supply chain employees faced with adaptation to
    industrial change, support for higher level skills to
    improve the technology transfers;

(b) Regional ESF Objective 3 Program: With funds totaling
    EUR512 million, the national Objective 3 Program is
    implemented regionally.  Objective 3 ESF is allocated
    according to the five ESF policy fields with a special focus
    in that region on improving employability in general and of
    long-term unemployed in particular, and on promoting wider
    access to and participation in lifelong learning.

Actions in other Member States

In Poland, the ESF is contributing almost EUR75 million (over
2004-6) to the measure 'Vocational reorientation of the workforce
affected with restructuring processes'.  The measure aims to
enable people to adapt to changing socio-economic conditions and
to take full advantage of new employment opportunities through
adapting the skills of workforces threatened by redundancies.
Its specific objective is to change the vocational qualifications
in the sectors undergoing restructuring, enabling them to become
re-employed in a new profession.  The support provides training
and skills courses, an employment subsidy in a new job, a job
placement, vocational information, career advice and individual
action plans.

In Finland, the ESF supported (under EQUAL from 01/2002 to
05/2005) organizations offering local SMEs (small and medium
sized enterprises) training and support services to help them to
cope with structural change.  Some 100 SMEs have benefited so
far, involving over 800 employees.  For SMEs, keeping pace with
technological change, new organizational approaches and future
market trends can be extremely difficult with a small workforce -
hence the project has been designed around their needs.  The
EQUAL program, which aims to promote a more inclusive work life,
has also been carrying out projects on analyzing how to protect
older workers hit by restructuring.

Through an article 6 measure, ESF has supported a joint project
that took place in Belgium, France, Sweden and Spain to raise
awareness of new forms of employment and organization and their
impact on industrial relations.  It consisted of a network of
academic experts, trainers and social partners and operated by
bringing to light new work forms and structures and developing
tools to make employers aware of the problems that these changes
create.

Throughout the E.U., the ESF has assisted the establishment of
support centers for partnership, but particularly in the new
Member States.  These aim to help the social partners (trade
unions and employer representatives) and negotiations between
them (social dialogue) play a central role in helping to
anticipate and manage change.

In 2005, the Commission is concentrating its efforts on
developments in the textile and shipbuilding sectors, as well as
the car industry.  For example, the "LeaderSHIP 2015" initiative
provides a sector-specific response to the E.U.'s longer term
strategy for economic, social and environmental renewal of the
European shipbuilding industry.  A High Level Advisory Group,
identified key areas, for which further targeted action is
identified, including improving research and innovation
investment, promoting safer and more environment-friendly ships,
protecting the European shipbuilding industry's intellectual
property rights and securing access to a skilled workforce.

For further examples of how the ESF has helped people across the
EU in these and other countries, please consult these Web
addresses:

http://europa.eu.int/comm/employment_social/news/2004/jan/esf_in_action_en.html\

http://europa.eu.int/comm/employment_social/publications/2005/ke6505254_en.html.

                            *   *   *

TCR-Europe reported on June 23 that Chinese carmaker Geely
Automobile Holdings is holdings talks to acquire some assets of
collapsed car manufacturer MG Rover.

According to the Standard, Geely, which manufacturers the Geely
and Maple car brands, revealed the talks are currently at an
initial stage and it has yet to present a concrete plan, a
timetable and a financing program.

Executive director Lawrence Ang said, "The company has
inquired and negotiated with relevant parties and the
administrator of MG Rover Group regarding the acquisition of
certain . . . molds and production equipment."

Newspaper Dongfang Daily quoted Geely chairman Li Shufu as
saying, "After SAIC (Shanghai Automotive Industries Corporation)
announced it had pulled out of the deal, Rover took the
initiative to contact us."

MG Rover, which once employed around 6,000 employees, is facing
liquidation to pay up GBP1.8 billion in debt, but with only
GBP85.5 million in assets, it has to find a ready rescuer.  PwC
is currently looking buyers for the group, but may face
difficulties due to some intellectual rights disputes with other
car companies like SAIC and Qvale Automotive.  SAIC has already
acquired the rights to mass-produce the Rover 25 and Rover 75
cars.  PwC have short listed an Iranian investor and TVR
sportscar owner Nikolai Smolenski for the entire MG Rover group
while three potential buyers will try to outbid each other for MG
Rover alone.  The bidders had until Monday last week to finalize
their
offers.

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

          PRICEWATERHOUSECOOPERS LLP
          Benson House
          33 Wellington Street
          Leeds LS1 4JP
          Phone: (44) (113) 289 4000
          Fax: (44) (113) 289 4460
          Web site: http://www.pwcglobal.com


SCOTMOBILITY LIMITED: Liquidator Takes over Helm
------------------------------------------------
John H. Ferris, CA, of Ferris Associates has been appointed
liquidator of Scotmobility Limited on June 10, 2005.  The
appointment was requested by members and creditors of the
company.

Scotmobility Limited is into motor vehicle conversions.

CONTACT:  SCOTMOBILITY LIMITED
          Unit 5, Crompton Road
          Southfield Industrial Estate
          Glenrothes, Fife KY6 2SF
          Phone: 01592 770204
          Fax: 01592 770205

          FERRIS ASSOCIATES
          John H Ferris, CA
          12 Edison House, Fullerton Road
          Glenrothes KY7 5QR
          Phone: 0800 328 5512
          E-mail: info@ferrisassociates.co.uk


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

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

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                              (421)       1,700      183


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


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


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


FRANCE
------
Acces Industrie                      (32)         124      (63)
Arbel                     PA.ARB     (50)         213      (47)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Bull S.A.                 BULP.PA   (912)         902      (38)
Charbo De France                  (3,872)       4,738   (2,868)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256       21
Compagnies de
   Machines Bull                    (139)         137       (6)
Euro Computer System                (110)         682      377
Genesys S.A.              GNS.PA     (15)         136        3
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (68)         233       29
LVL Medical Group         LVLM.PA     (8)         149       (6)
Oeneo S.A.                SABT.PA    (12)         292       38
Pneumatiques Kleber S.A.             (34)         480      139
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
St Fiacre (FIN)                       (1)         111      (33)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


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


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


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


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


NORWAY
------
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


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


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


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


SWITZERLAND
-----------
Kaba Holding AG           KABZN      (23)         582      260


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


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Anker PLC                 ANK.L      (22)         115       13
Avis Europe PLC           AVE.L      (24)       2,686     (420)
Bonded Coach
   Holiday Group Plc                  (6)         188      (44)
Blenheim Group                      (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Plc        BGY     (5,342)       3,438      229
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Center Parcs (UK)
    Group Plc             CQY        (77)         423     (227)
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST       (65)         396       (4)
Danka Bus System          DNK.L      (51)         585       82
Dawson Holdings           DWN.L      (19)         142      (33)
Dignity Plc               DTY.L     (148)         485      (89)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music
   Industries Group       EMI     (1,411)       3,235     (252)
Euromoney Institutional
   Investor Plc           ERM.L     (113)         236      (66)
Gallaher Group            GLH       (492)       6,304      116
Gartland Whalley                     (11)         145       (8)
Global Green Tech Group             (156)         408      (18)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV       (130)         997      (56)
Invensys PLC                        (963)       4,861      882
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L     (26)       1,176     (182)
Jessops Plc               JSP.L      (14)         321        7
Lambert Fenchurch Group               (1)       1,827        3
Lattice Group                     (1,290)      12,410   (1,228)
Leeds United              LDSUF.PK   (73)         144      (29)
M 2003 Plc                        (2,204)       7,205     (756)
Manchester City                      (17)         154      (21)
Misys Plc                 MSY       (334)         934       44
Mytravel Group            MT.L    (1,613)       2,199     (463)
Orange Plc                ORNGF     (594)       2,902        7
PD Ports Plc              PDP.L     (282)         361        0
Premier Foods Plc         PFD.L      (29)       1,059       20
Probus Estates Plc        PBE.L      (28)         113      (35)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,072)       3,382      (68)
Saatchi & Saatchi         SSI       (119)         705      (41)
Seton Healthcare                     (11)         157        0
SFI Group                           (108)         178     (162)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,361)
Virgin Mobile
   Holdings Plc           VMOB.L    (101)         278      (80)

Each Tuesday edition of the TCR-Europe contains a list of
companies with insolvent balance sheets based on the latest
publicly available balance sheet available to our editors at the
time of publication.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Larri-Nil Veloso, Ma. Cristina Canson, Liv Arcipe,
Julybien Atadero and Jay Malaga, Editors.

Copyright 2005.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *