TCREUR_Public/060511.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

              Thursday, May 11, 2006, Vol. 7, No. 93

                            Headlines


A U S T R I A

BAWAG P.S.K: Faces Class Action Suit by Refco Shareholders


G E R M A N Y

BAUGESCHAFT HAMBLOCH: Creditors' Meeting Slated for May 19
BAUUNTERNEHMUNG AUFBAU: Claims Registration Ends May 18
D & H COMPUTER: Creditors' Meeting Slated for May 18
DIWIFA BETEILIGUNGS: Claims Registration Ends May 17
G-TECH: Claims Filing Period Ends May 19

HOTEL ALTE: Claims Registration Ends May 18
IMMOBILIEN VERWALTUNGS: Claims Registration Ends May 19
KARSTADTQUELLE AG: Enters Third Restructuring Phase
MOHR EDV: Claims Filing Period Ends May 18
TEGTMEIER BAU: Claims Registration Ends May 18

V8 PERFORMANCE: Claims Filing Period Ends May 18


K A Z A K H S T A N

ANAS: Proofs of Claims Deadline Slated for May 16
AVTOTRANSSERVICE: Mangistau Court Opens Bankruptcy Proceedings
BN-COMPANY: Proofs of Claims Deadline Slated for May 16
JANA-IRTYSH: Creditors' Claims Due May 16
JULDYZ-PV: Claims Registration Ends May 16

MEDKOMPLEKT-K: Creditors Must File Claims by May 16
NOGAI-5: Claims Registration Ends May 16
TOLKYN: Creditors' Claims Due May 16
VICTORIA: Creditors Must File Claims by May 16


N E T H E R L A N D S

VICTORIA ACQUISITION: Moody's Upgrades Senior Debt Rating to B2
VICTORIA ACQUISITION: S&P Cuts Sr. Unsecured Debt Rating to B-


N O R W A Y

NORDIC TELEPHONE: Fitch Rates EUR2.03-Bln Senior Notes at B+
TDC A/S: Fitch Affirms Senior Secured Bank Loans at BB+


P O L A N D

CENTRAL EUROPEAN: Earns US$7.8 Million in First Quarter 2006
NETIA SA: Buys Back 32.4 Million Shares at PLN0.01 Per Unit


R U S S I A

BIO-KHIM-TRADE: Court Starts Bankruptcy Supervision
DAL-FACTORY: Court Names A. Bzaev as External Insolvency Manager
EVSINSKIY MILL: Creditors Must File Proofs of Claim by May 18
OIL-KHIM-SERVICE: Moscow Region Opens Bankruptcy Proceedings
RODNIK: Bankruptcy Hearing Slated for May 16

SIBIRTELECOM: Earns RUB673.6 Million in First Quarter 2006
OAO SIBNEFT: Annual Shareholders Meeting Slated for June 22
SOUTH-EAST-STEEL-CONSTRUCTION: Creditors' Claims Due May 18
SPIRIT-VODKA: Creditors Must File Claims by May 18
STARODUBSKIY METALLIST: Court Sets May 18 Bankruptcy Hearing

VERSHINO-DARASUNSKAYA: Court Names I. Dolgikh Insolvency Manager
VIMPELCOM: Prices Private Debt Swap & Proposed New Financing


T U R K E Y

DENIZ FINANSAL: Fitch Rates Currency Issuer Default at BB-


U K R A I N E

AGROSTANDART: Court Names Stepan Bonchak Insolvency Manager
BUSINESS-CENTER: Kyiv Court Grants Debt Moratorium
KARAPCHIV' ALCOHOL: Court Begins Bankruptcy Supervision
MALINIVSKE: Court Begins Bankruptcy Process
PODILLYA: Hmelnitskij Court Begins Bankruptcy Supervision

SLOVENERGOBUD: Donetsk Court Freezes Claims Payment
SV: Kyiv Court Appoints S. Dyachenko to Liquidate Assets
ZHITOMIR AGRICULTURAL: Court Opens Bankruptcy Proceedings
ZOLOTIJ KOLOS: Court Starts Bankruptcy Supervision


U N I T E D   K I N G D O M

ADI CAR: Appoints Jones Lowndes Dwyer Administrator
ASCOT MINWORTH: Hires Deloitte & Touche Administrators
BALBY PLUMBING: Taps David Horner & Co to Administer Assets
CLOTHING OUTLET: HSBC Bank Appoints Grant Thornton Receiver
COLMAN COYLE: Creditors' Meeting Slated for May 11

CORUS GROUP: Strong Results Spur Moody's to Upgrade Ratings
COVERITE LIMITED: Hires Joint Administrators from Deloitte
FIFTH AVENUE: Appoints Joint Administrators of Deloitte & Touche
G.T. LOGISTICS: Financial Woes Prompt Liquidation
GE TURBINE: Names Joint Administrators from Tenon Recovery

HEATHER SPENCER: Appoints Joint Liquidators from Baker Tilly
HOME APPLIANCE: Claims Filing Period Ends July 7
J & N SHOPFITTERS: Creditors Confirm Voluntary Liquidation
J.P. FINNEGAN: Hires Joint Administrators of SFP
JACKET FOUR: Creditors Pass Winding Up Resolution

NATURAL OPTIONS: Names Dominic Lee Zoong Wong as Administrator
NORTHERN LAMINATORS: Taps Andrew Clay as Administrator
NRG VICTORY: Scheme Creditors' Meeting Slated for May 23
PIPE HOLDINGS: Moody's Might Downgrade Debt Ratings After Review
REFCO INC: Shareholders Drag BAWAG PSK in Class Action Suit

TARGET TRADE: Hires Joint Administrators from Kroll
UNITED BISCUITS: Fitch Upgrades Junk Senior Debt Ratings to B-

* Fitch Assigns IDRs to European Property Companies


                            *********


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


BAWAG P.S.K: Faces Class Action Suit by Refco Shareholders
----------------------------------------------------------
As previously reported, RH Capital Associates LLC, Pacific
Investment Management Company LLC, and PIMCO Funds: Pacific
Investment Management Series - PIMCO High Yield Fund -- the lead
plaintiffs -- filed with the U.S. District Court in the Southern
District of New York a federal securities law class action on
behalf of themselves and all other entities who purchased
publicly traded shares, bonds or notes of Refco Inc., and its
affiliates, and who were allegedly injured between Aug. 5, 2004,
and Oct. 17, 2005.

Since the criminal, civil and regulatory investigations on
Refco's alleged financial misconduct are underway, the Investors
amended their Class Action Complaint on May 8, to incorporate
several facts that have recently come to light concerning a
significant co-conspirator in the Refco debacle -- BAWAG P.S.K.
Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse
Aktiengesellschaft.

The Investors assert that BAWAG was directly involved in the
fraudulent scheme at Refco and, through a series of interlocking
relationships and activities, was able to exert undue influence
and control over Refco.

The Investors allege that when a number of Refco's customers --
including BAWAG -- suffered extensive trading losses in the
worldwide financial crises of 1998 to 2000, they were unable to
repay the credit extended to them by Refco.  To avoid disclosing
these uncollectible debts, Refco's former CEO Phillip Bennett
transferred the debts to Refco Group Holdings, Inc., which was
owned by Mr. Bennett, and then orchestrated a series of
transactions whereby the receivable was temporarily paid off at
the end of each of Refco's financial reporting periods.

BAWAG actively assisted Mr. Bennett in concealing the
uncollectible receivable in at least three ways:

   -- In 1999, shortly after Refco first suffered these losses,
      BAWAG injected a huge amount of fresh capital by acquiring
      a 10% stake in Refco through BAWAG's wholly owned
      affiliate, BAWAG Overseas, Inc.;

   -- BAWAG injected additional capital through a series of
      undisclosed loans between Refco Holdings, Refco, DF
      Capital, Inc., Desana Foundation, and perhaps other
      entities affiliated with BAWAG or Refco, in return for an
      additional undisclosed 27% equity stake in Refco; and

   -- BAWAG participated in at least six transactions at the end
      of Refco's fiscal years 2000 through 2005 that allowed
      Refco Holdings to temporarily pay off the receivable it
      owed to Refco.

"This significant economic assistance that BAWAG gave to Bennett
provided BAWAG with disproportionate influence and control over
Bennett -- a CEO who was clearly desperate to conceal the
existence of Refco Holdings' uncollectible receivable," Max
Berger, Esq., at Bernstein Litowitz Berger & Grossman LLP, in
New York, asserts.

Mr. Berger also points out that Mr. Bennett's economic
dependence on BAWAG is further evidenced by the fact that, when
the US$430 million related-party receivable came to light in
October 2005, and Mr. Bennett was anxious to avoid full
disclosure of all of the facts, he turned to BAWAG for a US$420
million loan to pay off Refco Holdings' debt to Refco.

Mr. Berger notes that when Refco was recapitalized on Aug. 5,
2004, BAWAG received cash payments from Refco Holdings totaling
US$1.34 billion to cash out its direct and indirect equity
interests in Refco.

The Investors demand a trial by jury.

A full-text copy of the 277-page Amended Class Action Complaint
is available at no charge at http://ResearchArchives.com/t/s?8d7

The other Class Action defendants are:

   * the Bennett Shell-Entity Defendants, consisting of Refco
     Group Holdings, Inc., and The Phillip R. Bennett Three
     Year Annuity Trust;

   * the Refco-Affiliated Defendants, consisting of Refco
     Managed Futures LLC, Westminster-Refco Management LLC, and
     Lind-Waldock Securities LLC;

   * the Officer Defendants, consisting of Phillip R. Bennett,
     Gerald M. Sherer, William M. Sexton, Santo C. Maggio,
     Joseph J. Murphy, Phillip Silverman, and Dennis A. Klejna;

   * Refco Group's former Executive Vice President and Chief
     Financial Officer Robert C. Trosten;

   * Refco Group's former Chief Executive Officer Tone N. Grant;

   * the Audit Committee Defendants consisting of Ronald L.
     O'Kelley, Leo R. Breitman, and Nathan Gantcher;

   * the defendants affiliated with Thomas H. Lee Partners,
     including:

     -- THL Refco Acquisition Partners, THL Refco Acquisition
        Partners II, and THL Refco Acquisition Partners III;

     -- Thomas H. Lee Investors Limited Partnership; and

     -- The 1997 Thomas H. Lee Nominee Trust, a trust over
        which Thomas H. Lee has voting and investment control;

   * the THL Individual Defendants, consisting of Mr. Lee,
     David V. Harkins, Scott L. Jaeckel, and Scott A. Schoen;

   * Refco's purportedly independent auditor Grant Thornton
     LLP; and

   * the Underwriter Defendants, which consist of:

     -- Credit Suisse Securities (USA) LLC,
     -- Banc of America Securities LLC,
     -- Deutsche Bank Securities, Inc.,
     -- Goldman, Sachs & Co.,
     -- Merrill Lynch, Pierce, Fenner & Smith Incorporated,
     -- J.P. Morgan Securities, Inc.,
     -- Sandler O'Neill & Partners, L.P.,
     -- HSBC Securities (USA) Inc.,
     -- William Blair & Company, L.L.C.,
     -- Harris Nesbitt Corp.,
     -- CMG Institutional Trading LLC,
     -- Samuel A. Ramirez & Company, Inc.,
     -- Muriel Siebert & Co. Inc.,
     -- The Williams Capital Group, L.P., and
     -- Utendahl Capital Partners, L.P.

Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).  
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

Headquartered in Vienna, Austria, BAWAG P.S.K., formally known
as Bank Fuer Arbeit und Wirtschaft AG, had total assets of
EUR56.3 billion as of Dec. 31, 2004.


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


BAUGESCHAFT HAMBLOCH: Creditors' Meeting Slated for May 19
----------------------------------------------------------
Court-appointed provisional administrator for BAUGESCHAFT
HAMBLOCH GmbH, Wilhelm Klaas, will present his first report on
the Company's insolvency proceedings at a creditors' meeting at
9:05 a.m., on May 19.

The meeting of creditors and other interested parties will be
held at:

         The District Court of Krefeld
         Sitzungssaal H 131
         1. Etage
         Nordwall 131
         47798 Krefeld, Germany

The Court will also verify the claims set out in the
administrator's report at 11:05 a.m., on July 21, at the same
venue.

Creditors have until May 20, to register their claims with the
court-appointed provisional administrator.

The District Court of Krefeld opened bankruptcy proceedings
against BAUGESCHAFT HAMBLOCH GmbH on March 1.  Consequently, all
pending proceedings against the company have been automatically
stayed

The Debtor can be reached at:

         BAUGESCHAFT HAMBLOCH GmbH
         Attn: Heinz Hambloch, Manager
         Kolner Str. 574
         47807 Krefeld, Germany
                  
The administrator can be reached at:

         Wilhelm Klaas
         Eichendorffstrasse 25
         47800 Krefeld, Germany


BAUUNTERNEHMUNG AUFBAU: Claims Registration Ends May 18
-------------------------------------------------------
Creditors of BAM-Bauunternehmung Aufbau Merseburg Verwaltungs
GmbH & Co. Besitz KG have until May 18, to register their claims
with court-appointed provisional administrator Dr. Stephan
Thiemann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on June 15, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Halle-Saalkreis
         Saal 1.043
         Thueringer Str. 16
         06112 Halle, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Halle-Saalkreis opened bankruptcy
proceedings against BAM-Bauunternehmung "Aufbau" Merseburg
Verwaltungs GmbH & Co. Besitz KG on March 16.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         BAM-Bauunternehmung Aufbau Merseburg Verwaltungs GmbH
         & Co. Besitz KG
         Attn: Gustel Kirbach, Manager
         Eisenbahnstr. 11
         06217 Merseburg, Germany
         
The administrator can be contacted at:

         Dr. Stephan Thiemann
         Schorlemannstrasse 2
         04155 Leipzig, Germany
         Tel: 0341/4903650
         Fax: 0341/4903699


D & H COMPUTER: Creditors' Meeting Slated for May 18
----------------------------------------------------
Court-appointed provisional administrator for D & H Computer
Systeme EDV Beratungs- u. Vertriebsgesellschaft mbH, Stefanie
Luethje, will present her first report on the Company's
insolvency proceedings at a creditors' meeting at 10:15 a.m., on
May 18.

The meeting of creditors and other interested parties will be
held at:

         The District Court of Bremen
         Saal 115
         Gerichtshaus
         Ostertorstr. 25-31
         28195 Bremen, Germany

The Court will also verify the claims set out in the
administrator's report at 11:00 a.m., on Aug. 31, at the same
venue.

Creditors have until July 18, to register their claims with the
court-appointed provisional administrator.

The District Court of Bremen opened bankruptcy proceedings
against D & H Computer Systeme EDV Beratungs- u.
Vertriebsgesellschaft mbH on April 1.  Consequently, all pending
proceedings against the company have been automatically stayed

The Debtor can be reached at:

         D & H Computer Systeme EDV Beratungs- u.
         Vertriebsgesellschaft mbH
         Attn: Torsten Willi Haschke, Manager
         Bremerhavener Heerstr. 13
         28717 Bremen, Germany
                  
The administrator can be reached at:

         Stefanie Luethje
         Ostertorsteinweg 74/75
         28203 Bremen, Germany
         Tel: 792570
         Fax: 7925757
         Web: http://www.oelb.de/
         E-mail: Luethje@oelb.de


DIWIFA BETEILIGUNGS: Claims Registration Ends May 17
----------------------------------------------------
Creditors of diwifa Beteiligungs-GmbH have until May 17, to
register their claims with court-appointed provisional
administrator Hannelore Krueger-Knief.

Creditors and other interested parties are encouraged to attend
the meeting at 2:15 p.m. on June 7, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dresden
         Saal D131
         Olbrichtplatz 1
         01099 Dresden, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Dresden opened bankruptcy proceedings
against diwifa Beteiligungs-GmbH on April 5.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         diwifa Beteiligungs-GmbH
         Ammonstr. 72
         01067 Dresden, Germany
         
The administrator can be contacted at:

         Hannelore Krueger-Knief
         Konigstrasse 1
         01097 Dresden, Germany
         Web: http://www.krueger-knief.de/


G-TECH: Claims Filing Period Ends May 19
----------------------------------------
Creditors of G-Tech Limited Geruestbau Niederlassung Konigsbrunn
have until May 19, to register their claims with court-appointed
provisional administrator Nikolaus Gaede.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on June 20, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Augsburg
         Sitzungssaal 162/I. Stock
         Alten Einlass 1
         86150 Augsburg, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Augsburg opened bankruptcy proceedings
against G-Tech Limited Geruestbau Niederlassung Konigsbrunn on
March 29.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         G-Tech Limited Geruestbau Niederlassung Konigsbrunn
         Attn: Vincenza Fragapane, Manager
         Rosenstr. 8
         86343 Konigsbrunn, Germany
         
The administrator can be contacted at:

         Nikolaus Gaede
         Buerkleinstr. 6
         80538 Muenchen, Germany


HOTEL ALTE: Claims Registration Ends May 18
-------------------------------------------
Creditors of Hotel Alte Brennerei Hiddingsel GmbH have until
May 18, to register their claims with court-appointed
provisional administrator Dr. Jochen Dierksmeier.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on June 8, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Muenster
         Sitzungssaal Saal 101 B
         Gerichtsstr. 2-6
         48149 Muenster, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Muenster opened bankruptcy proceedings
against Hotel Alte Brennerei Hiddingsel GmbH on March 16.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Hotel Alte Brennerei Hiddingsel GmbH
         Neustr. 25
         48249 Duelmen, Germany

         Attn: Klaus Donnebrink, Manager
         Brinkstrasse 23
         48249 Duelmen, Germany
         
The administrator can be contacted at:

         Dr. Jochen Dierksmeier
         Ramertsweg 188
         48161 Muenster, Germany


IMMOBILIEN VERWALTUNGS: Claims Registration Ends May 19
-------------------------------------------------------
Creditors of IVS -- Immobilien, Verwaltungs und Sanierungs GmbH
have until May 19, to register their claims with court-appointed
provisional administrator Carsten Morgenstern.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on June 14, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Saal 24
         Gerichtsgebaude Fuerstenstrasse 21
         Chemnitz, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Chemnitz opened bankruptcy proceedings
against IVS -- Immobilien, Verwaltungs und Sanierungs GmbH on
March 23.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         IVS -- Immobilien, Verwaltungs und Sanierungs GmbH
         Attn: Mandy and Bernd Reuter, Managers
         Altenhainer Dorfstrasse 4
         09128 Chemnitz, Germany
         
The administrator can be contacted at:

         Carsten Morgenstern
         Michaelstr. 71
         09116 Chemnitz, Germany
         Web: http://www.hww-kanzlei.de/


KARSTADTQUELLE AG: Enters Third Restructuring Phase
---------------------------------------------------
After securing its liquidity and re-focusing its business, the
KarstadtQuelle AG retail group is now moving into the third
reorganization stage with the development of operating quality
and strategic realignment.  

"We will actively develop our businesses.  We now have the
funds, the ideas and the personnel resources to do so," CEO
Thomas Middelhoff said in the Group Annual General Meeting in
Duesseldorf on Monday.  "With a clear self-confidence, this
company will play an even stronger role in Europe than ever
before.  As a reminder -- we are Europe's largest mail order
company.  We are the No. 1 Department Stores and with Thomas
Cook we are No. 2 in the European tourism business.  With our
very good market positions, we can initiate a consolidation and
can play a key role in the process."

The strategic repositioning by means of mergers and partnerships
applies to the Department Stores segment as a whole.  In the
Mail Order segment, mergers are conceivable in Universal Mail
Order, in individual brands or in E-Commerce.  "Take it as a
given, that we have a strong will to strengthen our businesses
by all means at our disposal and that we are convinced to be
able to provide you with one or the other surprise during the
year."

                   Department Store Sale

A few weeks ago, the company sold its Department Store
properties to British real estate fund Whitehall.  Proceeds for
the entire transaction amounted to EUR4.5 billion.  A further
EUR600 million are to be generated by the sale of other
properties.

In the course of this year, the Group will be completely free of
financial debt.  The extraordinary income is to be used to
finance important investments in the Department Stores, Mail
Order and Tourism segments.  This includes an additional program
for Universal Mail Order Germany that maps out the
transformation to a higher share of Specialty Mail Order and E-
Commerce in the processes and cost structures.  This program is
to be presented in the summer.

In his review of the past financial year, Mr. Middelhoff stated
that the 2005 targets had been exceeded, with four of five
segments performing ahead of plan.  Only Mail Order -- more
specifically Universal Mail Order Germany -- is performing
considerably below plan and is to be reorganized by 2007.  The
objective is also to increase business volume in Mail Order on a
sustainable basis.  

"I see potential particularly in Russia.  With a time horizon of
two to three years, we are expecting a sales potential of EUR800
million to EUR1 billion," stated Mr. Middelhoff.

The Chairman of the Management Board announced that until 2008
KarstadtQuelle AG is to be developed into a retail and tourism
company with an equity ratio of over 20%, with annual sales of
approximately EUR18 billion and an EBITDA of over EUR1.1
billion.  For 2007, after a pause of several years, it is
planned to pay an ordinary dividend again.

After the crisis in 2004, a decisive reorganization over the
past year stabilized the operating business and improved key
conditions for the development of the company.  As a result of
disposals, net financial liabilities were reduced by a good
third, from EUR4.5 billion to EUR3 billion, including Thomas
Cook.  

A result primarily of disposals and outsourcing, the balance
sheet total was reduced by 21.5% and key ratios were improved.  
Working capital was reduced by 48% to EUR1.2 billion.  In the
retail segments, the product portfolio was re-focused, resulting
in a gross margin increase of 0.8 percentage points.  Cost
savings measures compensated lower gross income resulting from
decline in sales.  Staff costs were reduced by 15.4% and the
staff level by approximately 25,000 employees.

In 2005, Group sales totaled EUR15.5 billion.  On an adjusted
basis, this represents a year-on-year decline of 4.2%, primarily
the result of the extensive reorganization measures.  Operating
EBITDA was EUR544 million, an increase of EUR26 million or 5%
over the 2004 financial year.

This was clearly ahead of the earnings target.  In the Group the
EBITDA margin improved from 3.2% to 3.5% and is to be improved
significantly over the next few years.

In the first quarter of 2006, adjusted EBITDA was ahead of plan.  
Earnings, without Real Estate, are at the level of the previous
year.  Sales and earnings in the Department Stores segment are
up on the previous year.  As an expected result of a reduction
of the advertising budget and a streamlining of the catalogue,
sales at Universal Mail Order were lower than the previous year.  
On the other hand, Specialty Mail Order sales were higher than
in the previous year.  The performance of the Thomas Cook travel
business remains good, with earnings exceeding those of the
previous year.  At the Annual General Meeting, the Group
confirmed its sales and earnings guidance for 2006.

A full-text copy of KarstadtQuelle AG's 2005 full-year report is
available at http://researcharchives.com/t/s?8d4

Headquartered in Essen, Germany, KarstadtQuelle AG --
http://www.karstadtquelle.com/-- is the country's largest  
department store and mail order group, employing 90,000 people.  
The group's adjusted results for 2005 showed EUR15.4 billion in
net sales and EUR544 million in EBITDA.  KarstadtQuelle posted
EUR316.5 million in net loss and EUR3.0 billion in net financial
liabilities.

The retailer has been suffering from sluggish consumption and
high unemployment rate in Germany.  The group is currently
restructuring operations by selling off non-core assets and
implementing cost-saving measures.

As Dec. 31, 2005, KarstadtQuelle had total assets of EUR9.138
billion, down from EUR11.643 billion a year ago.  The group also
had EUR290 million in net equity, markedly lower than EUR596
million in 2004.  


MOHR EDV: Claims Filing Period Ends May 18
------------------------------------------
Creditors of Mohr EDV-Beratungs GmbH have until May 18, to
register their claims with court-appointed provisional
administrator Dr. Oliver Liersch.

Creditors and other interested parties are encouraged to attend
the meeting at 10:40 a.m. on June 8, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hameln
         Saal 106
         Zehnthof 1
         31785 Hameln, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Hameln opened bankruptcy proceedings
against Mohr EDV-Beratungs GmbH on April 4.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Mohr EDV-Beratungs GmbH
         Attn: Manfred Mohr, Manager
         Kohlerwinkel 5
         31832 Springe, Germany
         
The administrator can be contacted at:

         Dr. Oliver Liersch
         Karl-Wiechert-Allee 1c
         30625 Hannover, Germany
         Tel: 0511/554706-0
         Fax: 0511/554706-99


TEGTMEIER BAU: Claims Registration Ends May 18
----------------------------------------------
Creditors of Tegtmeier Bau GmbH & Co. KG have until May 18, to
register their claims with court-appointed provisional
administrator Stephan Holtershinken.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on June 8, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hameln
         Saal 106
         Zehnthof 1
         31785 Hameln, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Hameln opened bankruptcy proceedings
against Tegtmeier Bau GmbH & Co. KG on March 28.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Tegtmeier Bau GmbH & Co. KG
         Allernweg 10-12
         31840 Hess. Oldendorf, Germany
         Attn: Juergen Haberer, Manager
         Uesergrund 15
         31840 Hess. Oldendorf, Germany
         
The administrator can be contacted at:

         Stephan Holtershinken
         Marienstrasse 126
         D-32425 Minden, Germany
         Tel: 0571/64577-10
         Fax: 0571/645777-39


V8 PERFORMANCE: Claims Filing Period Ends May 18
------------------------------------------------
Creditors of V8 Performance Limited have until May 18, to
register their claims with court-appointed provisional
administrator Marc Schmidt-Thieme.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on June 29, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Darmstadt
         Saal 14
         1. OG Gebaude D
         Mathildenplatz 15
         64283 Darmstadt, Germany

The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Darmstadt opened bankruptcy proceedings
against V8 Performance Limited on March 24.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         V8 Performance Limited
         Neustadter Strasse 26
         64747 Breuberg, Germany
         Attn: Dieter Heyl, Manager
         Traubenbrunnen 35
         64749 Hochst, Germany
         Johann Rauch, Manager
         Gartenstrasse 13
         63739 Aschaffenburg, Germany

The administrator can be contacted at:

         Marc Schmidt-Thieme
         Soldnerstr. 2
         68219 Mannheim, Germany
         Tel: 0621/877080
         Fax: 0621/8770820


===================
K A Z A K H S T A N
===================


ANAS: Proofs of Claims Deadline Slated for May 16
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region declared LLP Anas insolvent on Feb. 20.

Creditors have until May 16, to submit written proofs of claim
to:

         Jahayeva Str. 71  
         Kyzylorda, Kazakhstan
         Tel: 8 324 (22) 27-23-65
              8 324 (22) 27-24-55
              8 324 (22) 24-51-23
              8 324 (22) 24-53-30


AVTOTRANSSERVICE: Mangistau Court Opens Bankruptcy Proceedings
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region commenced bankruptcy proceedings against LLP
Avtotransservice on March 2.


BN-COMPANY: Proofs of Claims Deadline Slated for May 16
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Bn-Company insolvent.

Creditors have until May 16, to submit written proofs of claim
to:

         Jambyl Str. 9
         Karaganda, Kazakhstan


JANA-IRTYSH: Creditors' Claims Due May 16
-----------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Jana-Irtysh insolvent on Feb. 23.

Creditors have until May 16, to submit written proofs of claim
to:

         Gagarina Str. 89-129  
         Pavlodar, Kazakhstan
         Tel: 8 (3182) 45-47-31
              8 (3007) 57-67-73


JULDYZ-PV: Claims Registration Ends May 16
------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Juldyz-Pv insolvent on Feb. 17.

Creditors have until May 16, to submit written proofs of claim
to:

         Gagarina Str. 89-129
         Pavlodar, Kazakhstan
         Tel: 8 (3182) 45-47-31
              8 (3007) 57-67-73


MEDKOMPLEKT-K: Creditors Must File Claims by May 16
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region declared LLP Medkomplekt-K insolvent on Feb. 20.

Creditors have until May 16, to submit written proofs of claim
to:

         Jahayeva Str. 71  
         Kyzylorda, Kazakhstan
         Tel: 8 (324(22) 27-23-65
                         27-24-55
                         24-51-23
                         24-53-30


NOGAI-5: Claims Registration Ends May 16
----------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Nogai-5 insolvent.

Creditors have until May 16, to submit written proofs of claim
to:

         Jambyl Str. 9
         Karaganda, Kazakhstan


TOLKYN: Creditors' Claims Due May 16
------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Tolkyn insolvent on Oct. 18, 2005.

Creditors have until May 16, to submit written proofs of claim
to:

         Kaldayakova Str. 89-26
         Almaty, Kazakhstan
         Tel: 8 (3272) 91-76-59
                       91-18-86


VICTORIA: Creditors Must File Claims by May 16
----------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Victoria insolvent on Aug. 24, 2005.

Creditors have until May 16, to submit written proofs of claim
to:

         Kaldayakova Str. 89-26
         Almaty, Kazakhstan
         Tel: 8 (3272) 91-76-59
                       91-18-86


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


VICTORIA ACQUISITION: Moody's Upgrades Senior Debt Rating to B2
---------------------------------------------------------------
Moody's Investors Service affirmed the B1 corporate family
rating of Victoria Acquisition III BV and concurrently upgraded
the rating on Vendex' senior notes to B2 from B3.

The group's announcement of a refinancing that includes a EUR460
million floating rate PIK issuance, as well as the repayment of
approximately EUR315 million in senior debt, prompted the rating
action.

The proposed transaction enables the payment of a EUR460 million
dividend to the financial sponsor consortium of Vendex,
comprised of KKR, Permira, Cinven and Alp Invest, structured as
a repayment of an equivalent amount of shareholder debt which
formed part of the group's 2004 LBO capital structure.  This
shareholder debt was initially given equity treatment due to the
fact that it was structurally and contractually subordinated to
the group's senior notes, interest was non-cash pay for life,
was held by the group's private equity consortium shareholders
and was structured as part of a fiscally advantageous equity
capital structure.

The proposed PIK issuance will be sold to third parties,
interest is cash pay at the option of the issuer and as publicly
listed securities, will form part of the overall group's debt
capital structure. As a result, we have incorporated their
issuance into the group's total leverage calculation.

Concurrent with the PIK issuance, the group has announced the
possible disposal of its Consumer Electronics business and its
intention to use proceeds to repay a portion of senior debt and
use the remainder to pay a dividend to its sponsors.

The affirmation of Vendex' B1 corporate family rating reflects
the fact that as a result of this transaction, Moody's
calculates Vendex' leverage pro forma for the proposed
transaction at c. 6.4x which will be above the group's 5.9x pro
forma leverage at the initial rating of the 2004 LBO.  Moody's
acknowledges that whilst the company has been strengthening
within the rating category due to operating improvements, cost
cutting and improved working capital management, etc, leading to
improved free cash flow, the decision to pay a special dividend
in the form of a PIK notes issuance has eliminated the financial
flexibility in terms of upward rating momentum that had been
building since the original rating assignment.

The decision to upgrade the rating of the senior notes results
predominantly from the application of cash to the reduction in
priority debt within the capital structure thereby strengthening
the position of the senior notes relative to the corporate
family rating.

The retail environment in the Netherlands and in other countries
in which Vendex operates remains difficult, however the group
has had success in improving margins and continuing to deliver
growth. Operating with 13 formats, the group benefits from some
diversification of revenues and earnings but there is also a
heightened degree of complexity in the business compared with
other rated retail peers. Operating performance at V&D remains
difficult, even after substantial cost cutting and store
closures. In Moody's opinion, achieving a turnaround in this
business will remain an ongoing challenge in terms of management
time and free cash flow absorption.

The refinancing proposes the repayment of c. EUR315 million of
senior debt using cash on balance sheet and proceeds from the
expected disposal of the consumer electronics business. This
reduces the amount of debt ranking ahead of the high yield notes
by more than 50%, reduces cash interest expense and reduces the
amount of scheduled debt amortization over the next two years.
However, Moody's cautions that many of the initial cost savings
immediately identified post LBO have already been achieved which
may slow the pace of future deleveraging. Nevertheless, Moody's
notes that the group continues to identify additional sources of
cost savings, particularly with respect to working capital
management.

The outlook for Vendex' ratings is stable, reflecting the fact
that despite operating in difficult retail environments, the
group has managed to generate substantial operating cash flow
since the LBO through cost cutting and more efficient working
capital management. Furthermore, its diversified retail formats  
-- including DIY, department stores, fashion chains and
variety/electrical -- provides it with material scale,
especially in its home market in the Netherlands, stability and
a platform from which to continue to drive synergies, such as
procurement, across the various chains.

Whilst pro forma leverage is currently at 6.4x, the ratings
affirmation reflects Moody's expectation that this should
transition to 6.0x over the course of 2006. Ratings would come
under downward pressure if total leverage remains materially
above 6.0x either as a result of:

   -- operating performance weakness and therefore implying a
      reversal in recent improvements or a failure in
      management's strategy; or

   -- from a more aggressive financial policy. Other key
      financial metrics would be consolidated EBITA margins
      below 4% and RCF/net adjusted debt below 8%.

An upgrade would require consolidated leverage approaching 5x;
RCF/net adjusted debt above 10% and evidence that a turnaround
at V&D can be sustained.

Based in Amsterdam, the Netherlands, Victoria Acquisition III is
the indirect parent of Vendex KBB, one of the leading non-food
retailers in the Netherlands with operations in several other
European countries. For the twelve months ended Jan. 31, Vendex
generated consolidated revenues of EUR4.040 billion.


VICTORIA ACQUISITION: S&P Cuts Sr. Unsecured Debt Rating to B-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Victoria Acquisition III B.V., the
parent company of The Netherlands-based nonfood retailer
Koninklijke Vendex KBB N.V., to 'B+' from 'BB-'.  

This follows the announcement that Vendex's holding company
plans to refinance its shareholder loans with the net proceeds
of a EUR460 million payment-in-kind note issue due 2015.  The
outlook is stable.

At the same time, Standard & Poor's lowered its senior unsecured
debt rating on Vendex to 'B-' from 'B'.  All ratings assume that
the proposed note issue will not exceed EUR460 million and are
subject to satisfactory review of final documentation by
Standard & Poor's.

"The downgrade reflects the increase in leverage as a result of
the refinancing of shareholder loans, which were treated as
equity, with the PIK note, which is viewed as debt," said
Standard & Poor's credit analyst Sunita Kara.

Pro forma for the transaction, Vendex's adjusted net debt to
earnings before interest, taxes, depreciation, amortization, and
rent (EBITDAR) for the fiscal year ended Jan. 31, would be about
5.5x, an increase from about 4.5x before the proposed
transaction.

"Standard & Poor's nevertheless expects that Vendex will
continue to maintain a sound operating performance despite a
challenging market environment," Ms. Kara added.

To maintain the ratings and outlook, adjusted net debt to
EBITDAR should remain within the 5.0x to 5.5x range.  S&P
believes the most prominent risk to the leverage target would be
further material capital structure changes.

Positive rating movement appears unlikely at present given the
group's focus on shareholder value creation, which S&P expects
to constrain the sustainability of a significantly improved
financial profile.


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


NORDIC TELEPHONE: Fitch Rates EUR2.03-Bln Senior Notes at B+
------------------------------------------------------------
Fitch Ratings gave Nordic Telephone Company Holding ApS's issue
of EUR2.033 billion equivalent senior notes a final B+ rating.

The notes are split between fixed-rate Euro and U.S. dollar
tranches, and a floating-rate Euro tranche.  

The B+ rating on NTC Holding's senior notes reflects the more
limited recoveries expected for this subordinated instrument in
a distress scenario, given the current levels of secured and
unsecured debt ranking senior to this instrument.  The proceeds
from the senior notes are to be used to repay the EUR2.03-
billion bridge facility.  The notes are senior obligations of
NTC Holding and benefit from second-ranking security over NTC
Holding's shares in Nordic Telephone Company ApS.  The notes are
not guaranteed by TDC or NTC, are not on lent to NTC or TDC, and
are structurally subordinated to the existing debt at TDC.

NTC Holding senior notes rated B+:

   -- EUR800 million 8.25% senior notes due 2016;
   -- USD600 million 8.875% senior notes due 2016; and
   -- EUR750 million floating-rate notes due 2016.


TDC A/S: Fitch Affirms Senior Secured Bank Loans at BB+
-------------------------------------------------------
Fitch affirmed TDC A/S's Issuer Default Rating at BB- with
Stable Outlook and senior secured bank facilities at BB+.  

The various notes issued under TDC's EMTN program are affirmed
at BB-.

EMTN bonds rated BB-:

   -- DEM 5.0% notes due 2008;
   -- JPY 1.28% notes due 2008;
   -- EUR 5.625% notes due 2009; and
   -- EUR 6.5% notes due 2012.


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


CENTRAL EUROPEAN: Earns US$7.8 Million in First Quarter 2006
------------------------------------------------------------
Central European Distribution Corporation reported its financial
results for the first quarter ended March 31, 2006.

Net sales were approximately US$190.1 million in the first
quarter of 2006, compared to US$150.0 million for the same
period in 2005, an increase of 27%.  Unaudited operating income
for the first quarter increased 116% from US$6.7 million to
US$14.6 million.  Unaudited net income was approximately US$7.8
million, compared to US$4.6 million, in the same period of 2005.

The comparable non-GAAP net income was US$4.9 million.  The
difference between the U.S. GAAP net income and comparable non-
GAAP net income reflects the expensing of stock options and
foreign exchange movements from our Senior Secured Notes
financing.

Highlights:

   -- Net sales up 27% to US$190 million;
   -- Gross margin up 50%, from 13% to 20%;
   -- Operating income up 116% to US$14.6 million;
   -- EBITDA up 133% to US$17.9 million;
   -- Cash Flow from operations increased over US$10 million

"We continue to see positive synergies from our newest
acquisitions of Bols and Polmos Bialystok, as well as executing
on one of our key management objectives of increasing our direct
distribution share of our newly acquired vodka brands from 36%
to 38%," Mr. William Carey, CEO and President, said.  "We are
pleased to see the continuation of strong operating dynamics
within the company evidenced by gross margins approaching 20%
and continued focus on reducing overheads."

Mr. Carey continued, "We were able to see the new trade terms
that became effective December 1, 2005 take effect with a record
first quarter cash flow of over US$10 million comparing with
first quarter 2005 even with an US$18.5 million bond interest
payment made in January."

The weighted average number of shares used for calculating
diluted earnings per share for the first quarter 2006 was
24,073,359 compared to 17,124,446 for the first quarter of 2005.  

CEDC confirms its previously announced full-year 2006 guidance
of net sales of US$931 to US$956 million.

Central European Distribution Corporation is the largest vodka
producer in Poland by value and produces the Absolwent,
Zubrowka, Bols and Soplica brands, among others.  CEDC currently
exports Zubrowka to European and Asian markets.  It operates 15
distribution centers and 78 satellite branches throughout
Poland.  CEDC imports many of the world's leading brands to
Poland, including brands such as Remy Martin, Metaxa, Jim Beam,
Sauza Tequila, Grant's, E&J Gallo, Sutter Home, Torres, Penfolds
and Concha y Toro wines, Corona, Foster's, and Guinness Stout
beers and Evian.

                        *     *     *

CEDC carries Moody's investors Service's B2 senior secured debt
and long-term corporate family rating since 2005.  It also
carries a B2 Issuer Credit rating from Standard & Poor's last
year.


NETIA SA: Buys Back 32.4 Million Shares at PLN0.01 Per Unit
-----------------------------------------------------------
Netia SA (WSE: NET) repurchased:

   -- 31,419,172 series I ordinary bearer notes, at PLN0.01    
      each; and

   -- 1,005,154 series II ordinary bearer notes, at PLN0.01
      each;

issued by Netia based on the Shares and Notes Prospectus dated
April 17, 2002.  The share repurchase came following the
expiration of the subscription warrants program.

According to the provisions of the Prospectus, the Notes were
repurchased from the trustee after the three-year period
following their issuance, at the price of PLN0.01 per Note.  At
the same date, in connection with the repurchase, the National
Deposit of Securities deregistered the Notes from the depositary
accounts.  The Notes were redeemed at the time of their
repurchase.

Headquartered in Warsaw, Poland, Netia S.A. (B+/Stable/) --
http://netia.pl/-- is the leading alternative fixed-line  
telecommunications operator in Poland.  It operates on the basis
of its own, state-of-the-art fiber-optic backbone network that
connects the largest Polish cities as well as its local access
networks.  Netia provides a broad range of telecommunications
services, including voice, data and network wholesale services.


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


BIO-KHIM-TRADE: Court Starts Bankruptcy Supervision
---------------------------------------------------
The Arbitration Court of Belgorod Region will convene on
June 21, 10:40 a.m., to hear the bankruptcy supervision
procedure on CJSC Bio-Khim-Trade (Case No. A08-13922/05-2 B) at:

         Avenue 135, Room 16
         Narodnyj
         308610, Belgorod Region, Russia

Mr. A. Ovchinnikov has been appointed temporary insolvency
manager and can be reached at:

         Rzhevskoye Shosse, 11
         Shebekino
         309290, Belgorod Region, Russia

The Debtor can be reached at:

         Nozhegolskoye Shosse Str. 2
         Shebekoni
         309290, Belgorod Region, Russia


DAL-FACTORY: Court Names A. Bzaev as External Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Primorye Region appointed Mr. A. Bzaev
as external insolvency manager for OJSC Holding Company Dal-
Factory after commencing an external management bankruptcy
procedure against the company (Case No. A51-9519/01 9-112).  Mr.
Bzaev can be reached at:

         Dalnezavodskaya Str. 2
         690001, Vladivostok Region, Russia

The Debtor can be reached at:

         Dalnezavodskaya Str. 2
         Primorye Region
         Vladivostok Region, Russia


EVSINSKIY MILL: Creditors Must File Proofs of Claim by May 18
-------------------------------------------------------------
Creditors of CJSC Evsinskiy Mill Combine have until May 18, to
submit written proofs of claim to court-appointed insolvency
manager Mr. S. Lebedev at:  

         Kamenskaya Str. 64a, Office 6
         Novosibirsk Region, Russia

The Arbitration Court of Novosibirsk Region commenced bankruptcy
proceedings against the company (Case No. A45-10285/05-29/120)
after finding it insolvent.

The Debtor can be reached at:

         Evsino St. Chapaeva Str. 24
         633220, Novosibirsk Region, Russia


OIL-KHIM-SERVICE: Moscow Region Opens Bankruptcy Proceedings
------------------------------------------------------------
The Arbitration Court of Moscow Region commenced bankruptcy
proceedings against CJSC Oil-Khim-Service (Case No. A40-7704/05-
86-174B) after finding it insolvent.  

Mr. R. Kogan has been appointed insolvency manager and can be
reached at:

         Leskova Str. 19, 8th Floor
         302040, Orel Region, Russia

The Debtor can be reached at:

         Akademika Ilyushina Str. 17, Administration Room
         Moscow Region, Russia


RODNIK: Bankruptcy Hearing Slated for May 16
--------------------------------------------
The Arbitration Court of Orenburg Region will convene on May 16,
at 10:30 a.m., to hear the bankruptcy supervision procedure on
LLC Rodnik (TIN 5617004519) at:

         9th January Str. 64
         Orenburg Region, Russia

The case is docketed under Case No. A47-16344/2005-14GK.

Mr. V. Ilyin has been appointed temporary insolvency manager and
can be reached at:

         Naberezhnaya Str. 126
         Sorochinsk,
         461901, Orenburg Region, Russia

The Debtor can be reached at:

         Stanochnyj Per. 7
         Orenburg Region, Russia


SIBIRTELECOM: Earns RUB673.6 Million in First Quarter 2006
----------------------------------------------------------
Sibirtelecom OJSC published its unaudited financial results for
the first quarter of 2006 prepared in accordance with the
Russian Accounting Standards.  

                 Unaudited Financial Results

The Company's revenues for the first quarter of 2006 amounted to
RUB5.28 billion increased by RUB187.0 million, or 3.7% against
the same period in the previous year.

The main factors or revenue change in the reporting period were:

   -- change in relations between telecom operators (an
      exception of long-distance revenues;

   -- increase of revenues from operators);

   -- increase of subscriber base and Internet traffic; and

   -- development of cellular communications.

Revenues from rendering local connection services amount to
46.5% or RUB2.46 billion of the Company's revenues.  A
substantial element of the Company's revenues is from
interconnection and traffic transfer services (RUB916.6 million)
and intrazone telephone communication (RUB849.1 million rubles),
17.3% and 16.1% respectively.  Revenues from document
telecommunications services amount to 9.0% (RUB473.1 million),
where 66% come from Internet access services.  Revenues from
cellular communications services amount to 4.2% or RUB220.2
million.

Compared to the same period in 2005, the company saw:

   -- an increase of revenues from interconnection and traffic
      transfer services amounted to RUB490.2 million or 115.0%
      due to change of regulatory legal acts in
      telecommunication branch.

   -- an increase of revenues from rendering local connections
      services amounted to RUB271.5 million or 12.4%, which
      is attributed to the increase of rendering services volume
      (number of basic telephone sets increased by 5.2% and
      amounted at the end of reporting period to 4,081 items)
      and also is attributed to tariff indexing since Nov. 1,
      2005.

   -- in the first quarter of 2006, revenue from rendering
      services under the assistance contract with Rostelecom
      OJSC was obtained in amount of RUB166.0 million.

   -- an increase of revenues from document telecommunications
      services which amounted to RUB140.9 million or 42.4% that
      was mainly caused by the increase of revenues from
      rendering (dial-up and dedicated) Internet access services
      (Internet traffic with the access through the public
      telephone network increased by 41.6% and amounted to 684
      million minutes; amount of information transferred via
      Internet increased by 109.9%).

   -- an increase of revenues from cellular communications
      services amounted to RUB94.6 million or 75.3% (number of
      cellular subscribers (without subsidiary business)
      increased by a factor of 2.2 and amounted to 278,000).

   -- an increase of revenues from intrazone telephone
      communication services amounted to RUB62.1 million or 7.9%
      due to increase of revenues from connected operators'
      channel leasing, change in a way of registering revenues
      from connected operators' subscribers connections.

The Company's expenses in the first quarter of 2006 decreased by
RUB232.9 million or 5.6% against the same period in the previous
year and amounted to RUB3.89 billion.

Expenses related to wages, salaries and deduction for social
insurance (45.4%), depreciation charges (19.6%), other expenses
(12.3%) and material cost (10.5%) constitute a major share in
the total amount of the expenses.

Compared to the same period of 2005:

   -- costs related to services of Rostelecom OJSC decreased by
      RUB579.6 million or 94.9% due to change in the procedure
      of settlement with Rostelecom OJSC;

   -- the amount of the charged fixed asset depreciation
      increased by RUB125.4 million or 19.6%, in connection with
      an active investment policy of the Company directed to the
      communication network development;

   -- increase of other expenses amounted to RUB106.6 million or
      28.6% caused by increase of expenses according to payments
      for agential contracts (withdrawal of non-profile
      business), indication of expenses according to development
      and application of enterprise resource planning system on
      the base of Oracle E-Business Suite connected with putting
      it into operation.

The increase of the EBITDA parameter in the first quarter of
2006 against the same period of previous year totaled RUB545.2
million or 33.9%.

Operating income totaled RUB1.38 billion, having increased by
RUB419.8 million, or 43.3%.  The operating margin is 26.3%.

Income before taxation increased by RUB488.4 million, or 107.2%,
and amounted to RUB943.9 million mainly due to positive dynamics
of profitability and due to revenues from realization of
financial investment.

Net income in the first quarter of 2006 totaled RUB673.6
million, compared to RUB266.6 million for the same period in
2005.  

                    Structural Changes

Since a number of statutory acts provided by the Federal Law On
Communication and intended for liberalization of the Russian
market of communication entered into force, the structure of
relations between telecoms operators, as well as between
telecoms operators and their subscribers changed, which caused
considerable changes in the structure of the Company's revenues
and expenses.

As of Jan. 1, Sibirtelecom OJSC provided the subscribers with
the services of international and domestic long-distance
telephone communication on its own behalf according to
previously published Addendum No. 23236 to the License for
providing services of local, intrazone telephone communication.  
The monetary funds credited to the accounts of Sibirtelecom OJSC
for the rendered services were the revenue of Sibirtelecom OJSC.  

Since Jan. 1, Rostelecom OJSC and other operators that were
granted respective licences have the right to provide services
of international and domestic long-distance telephone
communication. Subscribers' payments for the provided services
are the revenue of Rostelecom OJSC and other operators.  In view
of the above, Sibirtelecom OJSC does not receive any revenue
from international and domestic long-distance telephone
communication in the first quarter of 2006.

At present, Sibirtelecom OJSC is settling accounts with
subscribers for the provided services of international and
domestic long-distance telephony on the basis of an assistance
contract with Rostelecom OJSC.  In accordance with the contract
of assistance, Sibirtelecom OJSC provides Rostelecom OJSC with
chargeable services of billing processing of international and
domestic long-distance telephony, collecting payments from
telephone subscribers, working with the accounts receivable of
telephone subscribers, with claims and suits, etc.  

In accordance with the regulatory legal acts that entered into
effect on Jan. 1, the procedure of settlements with the
connected operators has changed considerably.

As of Jan. 1, all payments for the services of interconnection
and traffic transfer in respect of services of local telephony
had a one-way character connection.  As for services of
international, domestic long-distance and intrazone telephony,
the connected operators received a share of revenue from these
services depending on the degree of their participation in the
engineering procedure of providing these services.  After
Jan. 1, the settlements have a mutual character for the services
of interconnection and traffic transfer while providing all
kinds of telephony services and consist of three types of
payment:

   -- for the organization of a connecting point;
   -- for use of the connecting point; and
   -- for every minute of the transferred traffic.

In such a way, along with the revenues from the services of
interconnection and traffic transfer, the Company bears some
additional costs connected with payments to operators for the
organization of connecting points, for the use of the connecting
points, and transferring traffic via operator's network.

A full-text copy of the Sibirtelecom's financial statements for
the first quarter 2006 is available at no charge at
http://www.sibirtelecom.ru/english/investors/financial.php

Sibirtelecom OJSC -- http://www.sibirtelecom.ru/english--  
provides both traditional telephone services and a wide range of
new telecom services such as internet access services, and new
billing systems.  Intelligent networks, and e-commerce systems
are currently under development.

                        *     *     *

As reported in TCR-Europe on Feb. 9, Fitch Ratings assigned a B+
Issuer Default rating to OAO Sibirtelecom along with several
other companies in the European Telecommunications, Media and
Technology sectors.  Fitch said the outlook is stable.

On Dec. 2, 2005, Fitch affirmed Sibirtelecom's ratings at Senior
Unsecured 'B+' with Stable Outlook and Short-term 'B'.


OAO SIBNEFT: Annual Shareholders Meeting Slated for June 22
-----------------------------------------------------------
On April 28, the Board of Directors for OAO Sibneft approved a
resolution to hold the company's annual general meeting of
shareholders on June 22, in Moscow.

Shareholders will be asked to review and vote on:

   -- approval of the company's 2005 annual report;
   -- approval of the company's 2005 accounting statements;
   -- the distribution of profits and losses for 2005;
   -- election of members of the Board of Directors;
   -- election of members of the Audit Commission; and
   -- selection of an auditor for 2006.

Headquartered in Moscow, Russia, OAO Siberian Oil Company is
Russia's fifth-largest vertically integrated oil company by
production.  In 2005, the company produced 663,000 barrels of
oil equivalent per day and generated total revenues of US$5.7
billion in the first six months ending June 30, 2005.  Sibneft's
total proved SEC reserves at yearend 2004 were reported at 2,465
million boe, giving it a fairly solid reserve life of just under
10 years.

                        *     *     *

As reported in the TCR-Europe on Feb. 3, Moody's Investors
Service upgraded the Corporate Family Rating of OAO Siberian Oil
Company to Ba1 from Ba2.

Moody's has also upgraded Sibneft's senior unsecured ratings on
the group's US$500 million and US$400 million Loan Participation
Notes to Ba2 from Ba3.  Moody's said the outlook on all ratings
is positive.


SOUTH-EAST-STEEL-CONSTRUCTION: Creditors' Claims Due May 18
-----------------------------------------------------------
Creditors of OJSC South-East-Steel-Construction (TIN 3663002865)
have until May 18, to submit written proofs of claim to court-
appointed insolvency manager Mr. V. Golov at:

         Rozhdestvenskiy Avenue, 5/7, Office 34
         107045, Moscow Region, Russia

The Arbitration Court of Voronezh Region commenced bankruptcy
proceedings against after finding it insolvent.  The case is
docketed under Case No. A14-6429-2005.

The Debtor can be reached at:

         Dimitrova Str. 112
         394028, Voronezh Region, Russia


SPIRIT-VODKA: Creditors Must File Claims by May 18
--------------------------------------------------
Creditors of OJSC Spirit-Vodka Distillery Crystal have until
May 18, to submit written proofs of claim to:

         9th Maya Str. 1
         Mayskiy
         Kabardino-Balkariya Republic, Russia

Mr. Y. Poliychuk has been appointed insolvency manager and can
be reached at:

         Ilyinka Str. 5/2, office 508
         109012, Moscow Region, Russia

The Arbitration Court of Kabardino-Balkariya Republic has
commenced bankruptcy proceedings against the company after
finding it insolvent.  The case is docketed under Case No. A20-
3254/02.


STARODUBSKIY METALLIST: Court Sets May 18 Bankruptcy Hearing
------------------------------------------------------------
The Arbitration Court of Bryansk Region will convene on June 20,
12:00, noon to hear the bankruptcy proceedings against OJSC
Starodubskiy Metallist (Case No. A09-9829/05-28).

Creditors have until May 18, to submit written proofs of claim
to court-appointed insolvency manager Mr. S.  Vetrov at:

         Kirova Str. 9, Office 30
         398018, Voronezh Region, Russia

The Debtor can be reached at:

         Krasnykh Partizan Str. 61.
         Starodub
         Bryansk Region, Russia


VERSHINO-DARASUNSKAYA: Court Names I. Dolgikh Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Chita Region commenced bankruptcy
proceedings against CJSC Agro Company Vershino-Darasunskaya (TIN
7521002232) after finding it insolvent.  The case is docketed
under Case No. A78-6948/2005-B-60.

Mr. I. Dolgikh has been appointed insolvency manager and can be
reached at:

         Post User Box 952
         672000, Chita Region, Russia

The Debtor can be reached at:

         Vershino-Darasunskiy, Novaya Str. 13
         Tungokochenskiy Region
         674125, Chita Region, Russia


VIMPELCOM: Prices Private Debt Swap & Proposed New Financing
------------------------------------------------------------
OJSC Vimpel-Communications (NYSE: VIP) has priced the private
exchange offer launched by UBS (Luxembourg) S.A. for up to
US$250 million of the US$450 million 10% Loan Participation
Notes due 2009 in exchange for new Loan Participation Notes due
2016.  The sole purpose of the 10% notes is to fund loans
aggregating US$450 million in principal amount to VimpelCom.

The aggregate principal amount of New Notes to be issued
pursuant to the Exchange Offer and the Concurrent Offer is
expected to total up to US$600 million.

Subject to the terms and conditions of the Exchange Offer, each
eligible holder who validly tenders and does not withdraw its
Existing Notes will receive New Notes in the same principal
amount as the Existing Notes accepted for exchange plus a cash
consideration payment.  The Cash Consideration Payment to be
paid for Existing Notes validly tendered and not withdrawn by
the early submission deadline of 5:00 p.m. (EST) on May 4, is
US$80.11 per US$1,000 principal amount of Existing Notes, which
includes an early submission cash payment of US$12.50 per
US$1,000 principal amount of Existing Notes.  

Eligible holders of Existing Notes who tender after the early
submission deadline will receive the Cash Consideration Payment
less the early submission cash payment of US$12.50 per US$1,000
principal amount of Existing Notes, or US$67.61 per US$1,000
principal amount of Existing Notes.  In addition, eligible
holders will receive additional cash consideration of US$7.83
per US$1,000 principal amount of the Existing Notes accepted for
exchange, calculated based on the pricing of the New Notes to be
issued pursuant to the Concurrent Offer.  Eligible holders whose
tendered Existing Notes are accepted will also receive an amount
in cash equal to the accrued and unpaid interest in respect of
the Existing Notes to, but excluding, the settlement date.

The New Notes will bear an annual interest rate of 8.25% and
will be due May 23, 2016.  The Exchange Offer will expire at
5:00 p.m. (EST) on May 18, unless extended, and the settlement
date for the New Notes is expected to be May 22.

                      About VimpelCom

Headquartered in Moscow, Russia, VimpelCom --
http://www.vimpelcom.com/-- provides mobile telecommunications  
services in Russia and Kazakhstan with newly acquired operations
in Ukraine, Tajikistan and Uzbekistan.  The Company operates
under the 'Beeline' brand in Russia and Kazakhstan.  In
addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS'
brands in Kazakhstan.

                        *     *     *

As reported in TCR-Europe on Feb. 16, Standard & Poor's Ratings
Services said that its ratings and outlook on Russian mobile
telecommunications operator Vimpel-Communications (VimpelCom;
BB/Positive/--) are unaffected by the company's announcement
that it has launched a bid for Ukraine-based mobile
telecommunications operator CJSC Kyivstar GSM (BB-/Watch
Positive/--) for a consideration of US$5 billion in VimpelCom
common registered shares plus assumed debt.


===========
T U R K E Y
===========


DENIZ FINANSAL: Fitch Rates Currency Issuer Default at BB-
----------------------------------------------------------
Fitch Ratings placed Turkey's Deniz Finansal Kiralama A.S.'s
foreign currency and local currency Issuer Default Ratings of
BB-.  The Outlooks on both IDRs are Positive.  

Additionally, the agency assigned Short-term foreign and local
currency ratings of B, a National Long-term rating of A and
Support rating of 3.  The Outlook on the National rating is
Stable.

Deniz Leasing's Long- and Short-term and Support ratings are
driven by the potential moderate support from its majority
shareholder, Denizbank A.S.  Denizbank has a high propensity to
support Deniz Leasing but its ability to do so is moderate
because of its IDR.  

Deniz Leasing is highly integrated with the parent bank and is
expanding its customer base through the retail distribution
capabilities of the branch network of its parent.  The company
follows same credit approval and risk management policies with
Denizbank.

Deniz Leasing was founded in 1997 by Zorlu Holding to undertake
financial leasing activities.  The company leases machinery,
equipment, motor vehicles and other fixed assets under the
umbrella of Deniz Financial Services Group.  At end-Q106
Denizbank owned 100% of Deniz Leasing, 11% share directly and
89% share indirectly through its 100%-owned subsidiary Deniz
Factoring.


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


AGROSTANDART: Court Names Stepan Bonchak Insolvency Manager
-----------------------------------------------------------
The Economic Court of Poltava Region appointed Stepan Bonchak as
liquidator/insolvency manager for LLC Agrostandart (code EDRPOU
31847661).  He can be reached at:

         Kremenchuk, 50 Rokiv SRSR Str. 29/6
         39600 Poltava Region, Ukraine

The Court commenced bankruptcy proceedings against the company
on Feb. 21, after finding it insolvent.  The case is docketed
under Case No. 7/14.

The Economic Court of Poltava Region is located in:

         Zigina Str. 1
         36000 Poltava Region, Ukraine

The Debtor can be reached at:

         Kremenchuk, 40 Rokiv Zhovtnya 10/8
         39600 Poltava Region, Ukraine


BUSINESS-CENTER: Kyiv Court Grants Debt Moratorium
--------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on JSC Business-Center (code EDRPOU
23760222) on March 2, and ordered a moratorium on satisfaction
of creditors' claims.  The case is docketed under Case No.
24/118-b.

Mr. E. Bondar has been appointed temporary insolvency manager.

The Debtor can be reached at:

         Kozeletska Str. 9
         03113 Kyiv Region, Ukraine

The Economic Court of Kyiv Region is located in:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region, Ukraine


KARAPCHIV' ALCOHOL: Court Begins Bankruptcy Supervision
-------------------------------------------------------
The Economic Court of Chernivtsi Region commenced bankruptcy
supervision procedure on State Enterprise Karapchiv' Alcohol
Plant (code EDRPOU 00373415) on Feb. 10.  The case is docketed
under Case No. 5/18 b.

Mr. V. Strelnikov has been appointed temporary insolvency
manager and can be reached at:

         Golovna Str. 97/103
         Chernivtsi Region, Ukraine

The Economic Court of Chernivtsi Region is located in:

         O. Kobilyanska Str. 14
         58000 Chernivtsi Region, Ukraine

The Debtor can be reached at:

         Glibotskij District, Karapchiv
         60420 Chernivtsi Region, Ukraine


MALINIVSKE: Court Begins Bankruptcy Process
-------------------------------------------
The Economic Court of Vinnitsya Region commenced bankruptcy
supervision procedure on LLC Malinivske (code EDRPOU 03731618)
on Jan. 16.  The case is docketed under Case No. 5/4-06.

Sergij Yevtushenko has been appointed temporary insolvency
manager and can be reached at:

         Shepetivka
         Vinnitsya Region, Ukraine

The Economic Court of Vinnitsya Region is located in:

         Hmelnitske Shose 7
         21036 Vinnitsya Region, Ukraine

The Debtor can be reached at:

         Litinskij District, Malinivka
         Vinnitsya Region, Ukraine


PODILLYA: Hmelnitskij Court Begins Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Hmelnitskij Region commenced bankruptcy
supervision procedure on Agricultural LLC Podillya (code EDRPOU
31503629).  The case is docketed under Case No. 3/235-B.

Gorban Arkadij has been appointed temporary insolvency manager
and can be reached at:

         G. Skovoroda Str. 14/151
         29008 Hmelnitskij Region, Ukraine

The Economic Court of Hmelnitskij Region is located in:

         Nezalezhnosti Square 1
         29000 Hmelnitskij Region, Ukraine

The Debtor can be reached at:

         Krasilivskij District, Kulchini
         Hmelnitskij Region, Ukraine


SLOVENERGOBUD: Donetsk Court Freezes Claims Payment
---------------------------------------------------
The Economic Court of Donetsk Region commenced bankruptcy
supervision procedure on Slovenergobud (code EDRPOU 30917093) on
Jan. 20, and ordered a moratorium on satisfaction of creditors'
claims.  The case is docketed under 27/16 B.

Andreyeva Zoya has been appointed temporary insoslvency manager
and can be reached at:

         Donetsk Region, Ukraine Savchenko Str. 13/23

The Economic Court of Donetsk Region is located in:

         Artema Str. 157
         83048 Donetsk Region, Ukraine

The Debtor can be reached at:

         Slovyansk, Dibenko Str. 2A
         84100 Donetsk Region, Ukraine


SV: Kyiv Court Appoints S. Dyachenko to Liquidate Assets
--------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Dyachenko as
liquidator/insolvency manager for LLC SV.  He can be reached at:

          03055 Kyiv Region, Ukraine a/b 149

The Court commenced bankruptcy proceedings against the company
on March 3, after finding it insolvent.  The case is docketed
under Case No. 233/3b-05/01.

The Economic Court of Kyiv Region is located in:

         Komintern Str. 165
         01032 Kyiv Region, Ukraine

The Debtor can be reached at:

         Bucha, Kirov Str. 13
         Kyiv Region, Ukraine


ZHITOMIR AGRICULTURAL: Court Opens Bankruptcy Proceedings
---------------------------------------------------------
The Economic Court of Zhitomir Region commenced bankruptcy
proceedings against OJSC Zhitomir' Agricultural Machine-
Technological Station (code EDRPOU 30317328) on Feb. 14, after
finding it insolvent.  The case is docketed under Case No.
3/53 B.

Orletska Ludmila has been appointed Liquidator/insolvency
manager and can be reached at:

         Pershij Maryanivskij Lane 68
         Zhitomir Region, Ukraine

The Economic Court of Zhitomir Region is located in:

         Putyatinski Square 3/65
         10002 Zhitomir Region, Ukraine

The Debtor can be reached at:

         Zhitomir District, Kodnya
         12452 Zhitomir Region, Ukraine


ZOLOTIJ KOLOS: Court Starts Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Kirovograd Region commenced bankruptcy
supervision procedure on LLC Agrofirm Zolotij Kolos.  

Vyacheslav Mironenko has been appointed temporary insolvency
manager and can be reached at:

         Geroiv Stalingradu Str. 15/61
         25008 Kirovograd Region, Ukraine

The Economic Court of Kirovograd Region is located in:

         Lunacharski Str. 29
         25006 Kirovograd Region, Ukraine

The Debtor can be reached at:

         Kompaniyivskij District, Gubivka
         28413 Kirovograd Region, Ukraine


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


ADI CAR: Appoints Jones Lowndes Dwyer Administrator
---------------------------------------------------
Claire L. Dwyer of Jones Lowndes Dwyer LLP was appointed
administrator of Adi Car Rental Limited (Company Number
04292755) on April 24.

The administrator can be reached at:

         Jones Lowndes Dwyer Llp
         John Swift Building
         19 Mason Street
         Manchester M4 5FT
         United Kingdom
         Tel: 0161 832 9454
         Fax: 0161 832 9455
         E-mail: clairedwyer@joneslowndesdwyer.co.uk

The company is engaged in automobile rentals and can be reached
at:

         Car Factory
         Junction 22 Busin
         Tweedale Way, Hollinwood
         Lancashire OL9 8EH
         United Kingdom
         Tel: 0161 684 8500   


ASCOT MINWORTH: Hires Deloitte & Touche Administrators
------------------------------------------------------
Robin David Allen and Dominic Lee Zoong Wong of Deloitte &
Touche LLP were appointed joint administrators of Ascot Minworth
Limited (Company Number 5304357) on April 21.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  It provides audit,
tax, consulting and corporate finance services through more than
9,000 people in 21 locations.  

Headquartered in Birmingham, Ascot Minworth Limited --
http://www.ascotemblems.co.uk/-- manufactures and distributes  
labels, badges, stickers, emblems, logos and graphics to well
known clients like Ford, Nokia, Jaguar, 3M, Land Rover and BMW.


BALBY PLUMBING: Taps David Horner & Co to Administer Assets
-----------------------------------------------------------
David Anthony Horner of David Horner & Co. was appointed
administrator of Balby Plumbing & Heating Limited (Company
Number 05074097) on April 25.

David Horner & Co. -- http://www.davidhornerandco.co.uk/-- is a  
firm of insolvency practitioners based at three different
locations, which together cover the whole of Yorkshire and the
North East.  The firm offers practical advice and solutions to
all types of businesses, individuals and creditors, often
enabling formal insolvency to be avoided.

The company offers general plumbing services and can be reached
at:

         Park, Roberts Road
         Balby
         Doncaster DN4 0JT
         United Kingdom


CLOTHING OUTLET: HSBC Bank Appoints Grant Thornton Receiver
-----------------------------------------------------------
HSBC Bank Plc appointed Joseph McLean and Keith Hinds of Grant
Thornton U.K. LLP joint administrative receivers of The Clothing
Outlet Limited (Company Number 00523889) on April 20.  

Headquartered in London, Grant Thornton U.K. LLP --
http://www.grant-thornton.co.uk/-- is the U.K. member of Grant  
Thornton International, one of the world's leading international
organizations of independently owned and managed accounting and
consulting firms.  These firms provide a comprehensive range of
business advisory services from around 540 offices in over 110
countries worldwide.  

The Clothing Outlet Limited is a holding company whose
subsidiaries are engaged in designing, developing and
distributing, sourcing and manufacturing garments.  It can be
reached at:

         Caressa House
         PO Box 9
         Cemetery Road
         Pudsey LS28 7XD
         United Kingdom


COLMAN COYLE: Creditors' Meeting Slated Today
---------------------------------------------
Creditors of Colman Coyle will meet at 11 a.m., today, May 11, at:

         The New Connaught Rooms
         61-65 Great Queen Street
         London WC2B 5DA
         United Kingdom

Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was  
established in 1955 as a general accountancy practice, and has
grown to its present 18 offices across the South of England. It
is one of the largest independent firms of Chartered Accountants
in the region, and rank in the top 40 in the United Kingdom.

Colman Coyle -- http://www.colmancoyle.com-- has long been held  
in high regard both with clients and with other professionals
involved in the residential property market for the high quality
of service and advice coupled with a real emphasis on client
care.


CORUS GROUP: Strong Results Spur Moody's to Upgrade Ratings
-----------------------------------------------------------
Moody's Investors Service has upgraded Corus Group plc's
corporate family rating to Ba2, upgraded its senior unsecured
and supported unsecured obligations to B1 and raised senior
secured bank facility to Ba1.

The rating outlook is stable.

The rating upgrade to a Ba2 corporate family rating reflects:

   -- Corus' strengthened operating and financial performance in
      spite of price weakness in the third quarter of 2005;

   -- successful implementation of the on-going restructuring          
      initiatives -- to be completed in 2006 -- with substantial
      realized cost savings;

   -- expectation of a successful completion of the announced
      sale of the aluminium assets in the second half of 2006;

   -- recent repayment of GBP150 million in secured debt and
      overall low leverage maintained by the Group as a result
      of the improvement in operating performance and strong
      market conditions; and

   -- Moody's expectations of a broadly unchanged steel price
      environment.

The B1 ratings on the unsecured notes reflect bondholders'
structural subordinated position to the secured bank lenders.

The stable outlook reflects Moody's view that Corus' credit
profile and metrics better position the company to withstand a
potential downturn in steel prices and the liquidity reserves
available to the company allow management to pro-actively pursue
growth and integration strategies. A change in the stable
outlook to positive will require metrics to be sustained over
the course of 2006, notwithstanding that underlying steel prices
are expected to remain volatile.

Any further positive movement in the ratings will also
incorporate an assessment of the group's success in
strengthening its overall business profile, as well as better
visibility with regard to the use of substantial cash balances
accumulated by the group.

Ratings affected:

   -- Corporate Family Rating of Corus Group plc upgraded to Ba2
      from Ba3;

   -- EUR800 million Secured Bank Facilities at Corus Group plc
      and subs maturing July 2008 upgraded to Ba1 from Ba2;

   -- EUR800 million Unsecured Notes due 2011 issued by Corus
      Group plc upgraded to B1 from B2;

   -- GBP200 million in Unsecured Notes due 2008 upgraded to B1
      from B2;

   -- EUR400 million (approx. EUR20 million outstanding) in
      Unsecured Notes due 2006 issued by Corus Finance plc
      upgraded to B1 from B2.

Moody's last rating action on Corus was the upgrade to Ba3 on a
corporate family rating with a positive outlook on March 17,
2005.

Corus Group plc is headquartered in London and was created
through the merger of British Steel plc and Koninklijke
Hoogovens N.V.  The group is among the world's largest steel
producers and generated annual sales of GBP10.140 billion and an
operating profit of GBP1.027 billion in 2005.


COVERITE LIMITED: Hires Joint Administrators from Deloitte
----------------------------------------------------------
Lee Antony Manning and Nicholas Guy Edwards of Deloitte & Touche
LLP were appointed joint administrators of Coverite Limited
(Company Number 00454440) on April 26.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  It provides audit,
tax, consulting and corporate finance services through more than
9,000 people in 21 locations.  

Coverite Limited -- http://www.coverite.co.uk/-- is one of the  
largest roofing and cladding contractors in the U.K. with
offices in London, Cambridge, Manchester and Scotland.


FIFTH AVENUE: Appoints Joint Administrators of Deloitte & Touche
----------------------------------------------------------------
Lee Antony Manning and Neville Barry Kahn of Deloitte & Touche
LLP were appointed joint administrators of Fifth Avenue Holdings
Limited (Company Number 04823009) on April 24.

Deloitte & Touche LLP -- http://www.deloitte.com/-- is the  
United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss
Verein whose member firms are separate and independent legal
entities.  It provides audit, tax, consulting and corporate
finance services through more than 9,000 people in 21 locations.  

The company is engaged in wholesale distribution of clothing and
can be contacted at:

         23-25 East Castle Street
         London W1W 8DF
         United Kingdom
         Tel: 020 7436 5480
         Fax: 020 74360711


G.T. LOGISTICS: Financial Woes Prompt Liquidation
-------------------------------------------------
Creditors of G.T. Logistics U.K. Limited resolved to liquidate
the company's assets after proving that the company could no
longer continue its operations due to mounting debts.

Robert Michael Young and Ian Michael Rose, of Begbies Traynor,
were appointed Joint Liquidators.

Begbies Traynor -- http://www.begbies.com/-- assists companies,  
creditors, financial institutions and individuals on all aspects
of financial restructuring and corporate recovery.  

The company can be reached at:

         G.T. Logistics U.K. Limited
         Finch Close
         Nottingham NG7 2NN
         United Kingdom
         Tel: 0115 985 0800
         Fax: 0115 985 0900


GE TURBINE: Names Joint Administrators from Tenon Recovery
----------------------------------------------------------
Christopher Ratten and Simon Thomas of Tenon Recovery were
appointed joint administrators of GE Turbine Engineering Limited
(Company Number 5478396) on April 27.

Tenon Recovery -- http://www.tenongroup.com/-- provides  
accounting and business advice to owner-managed and private
business.

The Company is engaged in Turbine Engineering and can be
contacted at:

         Arkwright House
         Parsonage Gardens
         Manchester M3 2LF
         United Kingdom


HEATHER SPENCER: Appoints Joint Liquidators from Baker Tilly
------------------------------------------------------------
Heather Spencer Designs Limited is winding up its operations
after creditors agreed to liquidate the company's assets on
March 10.

Subsequently, Lindsey J. Cooper and Stephen M. Quinn, of Baker
Tilly, were appointed Joint Liquidators.

Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading  
independent firm of chartered accountants and business advisers
in the United Kingdom.

Heather Spencer Designs Limited -- http://www.hspencer.u-
net.com/ -- manufactures children furniture.  It can be
contacted at:

         Unit 22
         Radcliffe Moor Road
         Bradley Fold Trading Estate
         Bradley Fold
         Bolton
         Lancashire BL2 6RT
         United Kingdom
         Tel: 01204 533 224
         Fax: 01204 533 992


HOME APPLIANCE: Claims Filing Period Ends July 7
------------------------------------------------
Creditors of Home Appliance Services Limited have until July 7,
to send in their full names, addresses and descriptions, full
particulars of debts or claims, and the names and addresses of
Solicitors, if any, to appointed Joint Liquidators Ian Michael
Rose and Robert Michael Young.

Begbies Traynor -- http://www.begbies.com/-- assists companies,  
creditors, financial institutions and individuals on all aspects
of financial restructuring and corporate recovery.  

The company can be reached at:

         Home Appliance Services Limited
         47 Market St.
         Heckmondwike WF16 0EU
         United Kingdom
         Tel: 01924 410159


J & N SHOPFITTERS: Creditors Confirm Voluntary Liquidation
----------------------------------------------------------
Creditors of J & N Shopfitters Limited confirmed the company's
voluntary liquidation after a winding up resolution was passed
on March 8.

Creditors also ratified the appointment of A.S. Wood, of Mazars
LLP, as Liquidator.

Mazars -- http://www.mazars.com/-- is an international,  
integrated and independent organization, specialized in audit,
accounting, tax and advisory services.

The company can be reached at:

         J & N Shopfitters Limited
         Upper Villiers Street
         Imex Business Park
         Wolverhampton WV2 4XE
         United Kingdom
         Tel: 01902 313 575
         Fax: 01902 313 574


J.P. FINNEGAN: Hires Joint Administrators of SFP
------------------------------------------------
Simon Franklin Plant and Daniel Plant of SFP were appointed
joint administrators of J.P. Finnegan Plant Hire & Civil
Engineering Contractors Limited (Company Number 02008788) on
April 25.

The administrators can be reached at:

         SFP
         9 Ensign House
         Admirals Way
         Marsh Wall
         London E14 9XQ
         United Kingdom

The company is engaged in rentals of construction equipment,
general construction and civil engineering and can be reached
at:

         Unit 4
         Kiln Way
         Woodville Swadlincote
         Derbyshire DE11 8ED
         United Kingdom
         Tel: 01283 221 059
         Fax: 01283 550 744


JACKET FOUR: Creditors Pass Winding Up Resolution
-------------------------------------------------
Creditors of Jacket Four Limited passed a resolution to wind up
the company's operations during members' extraordinary general
meeting on March 13.

N.A. Bennett of Leonard Curtis was appointed Liquidator.

Leonard Curtis -- http://www.leonardcurtis.co.uk/-- specializes  
in business recovery and insolvency.  It can be reached at:

         Jacket Four Limited
         Hyde House
         The Hyde
         London NW9 6LH
         United Kingdom
         Tel: 020 8205 4477
         Fax: 020 8205 2043


NATURAL OPTIONS: Names Dominic Lee Zoong Wong as Administrator
--------------------------------------------------------------
Dominic Lee Zoong Wong of Deloitte & Touche LLP was appointed
administrator of Natural Options (UK) Limited (Company Number
04022986) on April 18.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  It provides audit,
tax, consulting and corporate finance services through more than
9,000 people in 21 locations.  

The company manufactures kitchen furniture and can be contacted
at:

         1 Bonington Road
         Nottingham NG3 5JR
         United Kingdom


NORTHERN LAMINATORS: Taps Andrew Clay as Administrator
------------------------------------------------------
Andrew T. Clay of Andrew Michaels & Co. Ltd. was appointed
administrator of Northern Laminators Limited (Company Number
05069236) on April 18.

The administrator can be contacted at:

         Andrew Michaels and Co. Ltd.
         Concept House
         Brooke Street
         Cleckheaton BD19 3RY
         United Kingdom
         Tel: 01274 855530
         Fax: 01274 855540

The company is engaged in lamination and can be reached at:

         Unit 4
         The Moorings
         Waterside Industrial Park
         Waterside Road
         Leeds LS10 1RW
         United Kingdom
         Tel: 0113 271 2700


NRG VICTORY: Scheme Creditors' Meeting Slated for May 23
--------------------------------------------------------
The High Court of Justice requests all Scheme Creditors of NRG
Victory Reinsurance Limited to attend, either in person or by
proxy, the Scheme Creditors' meeting at 3:00 p.m., on May 23,
at:

         Clifford Chance LLP
         10 Upper Bank Street
         London E14 5JJ
         United Kingdom

A Scheme Creditor or his proxy must register his attendance
before the commencement of the Creditors' Meeting.  Registration
will start at 2:00 p.m., on May 23.

The purpose of the creditors' meeting will be to consider and to
approve a scheme of arrangement made between the Scheme Company
and the Scheme Creditors pursuant to Section 425 of the
Companies Act 1985.

The Chairman of the Creditors' Meeting will address Scheme
Creditors generally on the Scheme and on issues relevant to
voting immediately prior to the commencement of the Creditors'
Meeting.

Scheme Creditors may vote in person at the Creditors' Meeting or
may appoint another person, whether a Scheme Creditor or not, as
their proxy to attend and vote in their place.  Notice of the
Creditors' Meeting and the statement required to be provided to
creditors pursuant to Section 426 of the Companies Act 1985,
together with Voting Forms and Forms of Proxy to use at the
Creditors' Meeting, have been circulated to known Scheme
Creditors as well as brokers and other intermediaries.

Copies of these documents, as well as the Information
Memorandum, the Scheme and blank Forms of Proxy and Voting Forms
may be obtained at:

         The Scheme Company
         Attn: Martin Baker or Lyn Davies
         NRG Victory Management Services Limited
         Chartered House, Park Street
         Ashford, Kent
         TN24 8EQ
         United Kingdom
         Tel: +44 (0) 1233 722660
         Fax: +44 (0) 1233 722 601

The documents may be downloaded at no charge at
http://www.nrg-solventscheme.co.uk/

Scheme Creditors are given until 5:00 p.m., on May 19, to submit
completed Proxy and Voting Form to the address or by E-mail at
scheme.manager@nrgv.co.uk

Forms may also be handed in at the registration desk before the
Creditors' Meeting.  Faxed and e-mailed Forms of Proxy and
Voting forms will be accepted if legible, but Scheme Creditors
are requested to send the originals, to be received by the
Scheme Company on or before 5:00 p.m., on May 30.

The Court appointed Alan John Boyce, Chief Executive of the
Scheme Company or, failing him, Paul Anthony Brereton Evans of
PricewaterhouseCoopers LLP, to act as Chairman of the Creditors'
Meeting and has directed the Chairman of the Creditors' Meeting
to report the result of the Creditors' Meeting to Court.

If approved by the requisite majority of Scheme Creditors, the
Scheme will be subject to the subsequent approval of the Court.  
Any policyholder who has any questions concerning the action he
is required to take should contact the Scheme Company.

The video link to the Creditors' Meeting will commence at 10:00
a.m., on May 23.  Creditors must allow sufficient time for
arrival and registration with the contact person, Elizabeth
Pillion.

However, a Scheme Creditor who only views the Creditors Meeting
thru video link will not be considered present as such
Creditors' Meeting for the purpose of voting on the Scheme
unless he completed a Form of Proxy authorizing someone to
attend and vote at the Creditors' Meeting in London in his
behalf.


PIPE HOLDINGS: Moody's Might Downgrade Debt Ratings After Review
----------------------------------------------------------------
Moody's Investors Service placed the ratings of Pipe Holdings 2
Limited, a holding company of Polypipe Building Products Ltd. on
review for possible downgrade following the announcement of a
proposed GBP65-million debt issuance in the form of payment-in-
kind notes at the holding company Pipe Holdings 1 Plc.

Proceeds and existing cash resources will be used to repay the
existing vendor loan of GPB39 million at Pipe Holding 2 Plc, to
finance a GBP33.5 million payment to shareholders via a dividend
and to cover fees and expenses.

Affected ratings:

   -- B1 Corporate Family Rating at Pipe Holdings 2 Ltd.;

   -- B1 rating of GBP122 million Senior Secured Notes due 2011
      at Pipe Holdings Plc;

   -- B3 rating of GBP66 million Senior Unsecured Notes due 2013
      at Pipe Holdings Plc.

The review will encompass an analysis of the impact of the PIK
note issuance on the rated entities and any potential new
servicing demands on the restricted group which backs the rated
debt.  While the new notes will be structurally subordinated to
and outside of the restricted group of the rated debt, Moody's
will review whether they may place additional pressure on the
capital structure and on Polypipe's long-term financing plan.
The review will also include an evaluation of Polypipe's
financial profile in light of the recent publication of its
yearend results and outlook guidance provided by management.

Based in Doncaster, South Yorkshire, Polypipe Building Products
Ltd. manufactures a wide range of plastic pipe systems
predominantly for the U.K. construction market.  Revenues for
the year ended Dec. 31, 2005 were GBP315.1 million.


REFCO INC: Shareholders Drag BAWAG PSK in Class Action Suit
-----------------------------------------------------------
As previously reported, RH Capital Associates LLC, Pacific
Investment Management Company LLC, and PIMCO Funds: Pacific
Investment Management Series - PIMCO High Yield Fund -- the lead
plaintiffs -- filed with the U.S. District Court in the Southern
District of New York a federal securities law class action on
behalf of themselves and all other entities who purchased
publicly traded shares, bonds or notes of Refco Inc., and its
affiliates, and who were allegedly injured between Aug. 5, 2004,
and Oct. 17, 2005.

Since the criminal, civil and regulatory investigations on
Refco's alleged financial misconduct are underway, the Investors
amended their Class Action Complaint on May 8, to incorporate
several facts that have recently come to light concerning a
significant co-conspirator in the Refco debacle -- BAWAG P.S.K.
Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse
Aktiengesellschaft.

The Investors assert that BAWAG was directly involved in the
fraudulent scheme at Refco and, through a series of interlocking
relationships and activities, was able to exert undue influence
and control over Refco.

The Investors allege that when a number of Refco's customers --
including BAWAG -- suffered extensive trading losses in the
worldwide financial crises of 1998 to 2000, they were unable to
repay the credit extended to them by Refco.  To avoid disclosing
these uncollectible debts, Refco's former CEO Phillip Bennett
transferred the debts to Refco Group Holdings, Inc., which was
owned by Mr. Bennett, and then orchestrated a series of
transactions whereby the receivable was temporarily paid off at
the end of each of Refco's financial reporting periods.

BAWAG actively assisted Mr. Bennett in concealing the
uncollectible receivable in at least three ways:

   -- In 1999, shortly after Refco first suffered these losses,
      BAWAG injected a huge amount of fresh capital by acquiring
      a 10% stake in Refco through BAWAG's wholly owned
      affiliate, BAWAG Overseas, Inc.;

   -- BAWAG injected additional capital through a series of
      undisclosed loans between Refco Holdings, Refco, DF
      Capital, Inc., Desana Foundation, and perhaps other
      entities affiliated with BAWAG or Refco, in return for an
      additional undisclosed 27% equity stake in Refco; and

   -- BAWAG participated in at least six transactions at the end
      of Refco's fiscal years 2000 through 2005 that allowed
      Refco Holdings to temporarily pay off the receivable it
      owed to Refco.

"This significant economic assistance that BAWAG gave to Bennett
provided BAWAG with disproportionate influence and control over
Bennett -- a CEO who was clearly desperate to conceal the
existence of Refco Holdings' uncollectible receivable," Max
Berger, Esq., at Bernstein Litowitz Berger & Grossman LLP, in
New York, asserts.

Mr. Berger also points out that Mr. Bennett's economic
dependence on BAWAG is further evidenced by the fact that, when
the US$430 million related-party receivable came to light in
October 2005, and Mr. Bennett was anxious to avoid full
disclosure of all of the facts, he turned to BAWAG for a US$420
million loan to pay off Refco Holdings' debt to Refco.

Mr. Berger notes that when Refco was recapitalized on Aug. 5,
2004, BAWAG received cash payments from Refco Holdings totaling
US$1.34 billion to cash out its direct and indirect equity
interests in Refco.

The Investors demand a trial by jury.

A full-text copy of the 277-page Amended Class Action Complaint
is available at no charge at:

     http://bankrupt.com/misc/refcoclassactioncomplaint.pdf

The other Class Action defendants are:

   * the Bennett Shell-Entity Defendants, consisting of Refco
     Group Holdings, Inc., and The Phillip R. Bennett Three
     Year Annuity Trust;

   * the Refco-Affiliated Defendants, consisting of Refco
     Managed Futures LLC, Westminster-Refco Management LLC, and
     Lind-Waldock Securities LLC;

   * the Officer Defendants, consisting of Phillip R. Bennett,
     Gerald M. Sherer, William M. Sexton, Santo C. Maggio,
     Joseph J. Murphy, Phillip Silverman, and Dennis A. Klejna;

   * Refco Group's former Executive Vice President and Chief
     Financial Officer Robert C. Trosten;

   * Refco Group's former Chief Executive Officer Tone N. Grant;

   * the Audit Committee Defendants consisting of Ronald L.
     O'Kelley, Leo R. Breitman, and Nathan Gantcher;

   * the defendants affiliated with Thomas H. Lee Partners,
     including:

     -- THL Refco Acquisition Partners, THL Refco Acquisition
        Partners II, and THL Refco Acquisition Partners III;

     -- Thomas H. Lee Investors Limited Partnership; and

     -- The 1997 Thomas H. Lee Nominee Trust, a trust over
        which Thomas H. Lee has voting and investment control;

   * the THL Individual Defendants, consisting of Mr. Lee,
     David V. Harkins, Scott L. Jaeckel, and Scott A. Schoen;

   * Refco's purportedly independent auditor Grant Thornton
     LLP; and

   * the Underwriter Defendants, which consist of:

     -- Credit Suisse Securities (USA) LLC,
     -- Banc of America Securities LLC,
     -- Deutsche Bank Securities, Inc.,
     -- Goldman, Sachs & Co.,
     -- Merrill Lynch, Pierce, Fenner & Smith Incorporated,
     -- J.P. Morgan Securities, Inc.,
     -- Sandler O'Neill & Partners, L.P.,
     -- HSBC Securities (USA) Inc.,
     -- William Blair & Company, L.L.C.,
     -- Harris Nesbitt Corp.,
     -- CMG Institutional Trading LLC,
     -- Samuel A. Ramirez & Company, Inc.,
     -- Muriel Siebert & Co. Inc.,
     -- The Williams Capital Group, L.P., and
     -- Utendahl Capital Partners, L.P.

Headquartered in Vienna, Austria, BAWAG P.S.K., formally known
as Bank Fuer Arbeit und Wirtschaft AG, had total assets of
EUR56.3 billion as of Dec. 31, 2004.

Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).  
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.


TARGET TRADE: Hires Joint Administrators from Kroll
---------------------------------------------------
Andrew John Pepper and Alastair Paul Beveridge of Kroll Limited
were appointed joint administrators of Target Trade Finance
Limited (Company Number 04252652) on April 26.

Kroll Limited -- http://www.krollworldwide.com/-- offers risk-
consulting services worldwide.  The firm is an operating unit of
Marsh & McLennan Companies, Inc., the global professional
services firm.  Kroll's services include corporate advisory and
restructuring, financial accounting, valuation and litigation,
electronic evidence and data recovery, business intelligence and
investigations, background screening, and security services.

The company is engaged in security broking and fund management
and can be reached at:

         St. Alphage house
         2 Fore Street
         London EC2Y 5HD
         United Kingdom
         Tel: 0870 751 8040
         Fax: 0870 751 8050


UNITED BISCUITS: Fitch Upgrades Junk Senior Debt Ratings to B-
--------------------------------------------------------------
Fitch Ratings upgraded United Biscuits Finance's senior
subordinated notes to B- from CCC+ and the Recovery Rating to
RR4 from RR5.  

At the same time, the agency affirmed Regentrealm Limited's -- a
subsidiary of UB -- at Issuer Default B-, Short term B and its
senior secured debt at BB-/RR1.  The Outlook has been changed to
Stable from Negative.

"UB has delivered strong results in FY05, Fitch's Leveraged
Finance team Director Pablo Mazzini disclosed.  "Despite the
tough trading environment in core regions such as the U.K. and
Northern Europe, UB has been able to improve cash flow
generation by moving towards healthier products, which allows
for premium pricing, while realizing part of the expected cost
savings from the integration of past acquisitions."

The Stable Outlook reflects UB's diminished refinancing risk.
Improved performance has led to better credit ratios with FFO
net leverage of 3.1x at YE05 and FFO net fixed charge cover of
1.5x.  This, combined with the GBP75 million senior debt pre-
payment made between April 2005 and February 2006, 64% of which
was allocated to the amortizing senior tranche, has translated
into lower pressure on the future net free cash flow.

Improved financial performance and senior debt prepayment have
enabled Fitch to upgrade its rating on the senior subordinated
notes, reflecting average recovery prospects upon default.  The
recovery assumptions for UB as a going concern business reflects
its leading positions in branded biscuits and snacks across a
number of European markets and the possibility of disposing of
the regional operations separately in pursuing better
recoveries.

The distressed multiple has been capped at 6.5x EBITDA to
reflect limited top line growth potential, pricing pressure and
growing relevance of discounters in the retail channel.
Additionally, significant research and development as well as
advertising and promotion required to retain market-leading
products have been considered.

Nevertheless, UB remains exposed to overall low organic sales
growth prospects, the pressure from retailers in the core U.K.
operations and growing threats in Northern Europe.  Offsetting
these are cost savings from UB's restructuring efforts and its
suitable platform for growth from its wide range of brands,
especially within the growing healthier categories, and good
profitability from its Southern European operations.

Fitch does not expect large cash outflows with regards to plant
rationalization in the foreseeable future, although ongoing
costs of around GBP20 million per annum relating to cost-saving
and other restructuring initiatives are factored into the
current ratings.

UB is the leading manufacturer of biscuits in the U.K. and the
Iberian Peninsula and the second largest in France and the
Benelux region.  UB achieved sales of GBP1.27 billion in FY05
under IFRS reporting, up from GBP1.21 billion in FY04, with an
EBITDA of GBP204 million before exceptional cash flow costs of
GBP27.1 million, largely related to the integration of the
acquisitions made in 2004.


* Fitch Assigns IDRs to European Property Companies
---------------------------------------------------
Fitch Ratings assigned Issuer Default ratings to European
property companies.  Revised senior unsecured ratings now apply
to the senior unsecured bond issues of these entities.

The senior unsecured ratings, which are attached to the bonds of
the investment grade property companies below, have remained
unchanged.  This mainly reflects the weighting towards recovery
relative to default analysis in the existing senior unsecured
ratings for this sector.  Fitch's analysis prior to this did not
formally disaggregate these aspects of the analysis and as a
result the newly introduced IDRs are one notch below the revised
senior unsecured ratings.

IDRs reflect the ability of an issuer to meet senior financial
commitments on a timely basis, effectively becoming the
benchmark probability of default.  Securities in an issuer's
capital structure will be rated higher, lower, or the same as
the IDR on the basis of their relative recovery prospects.

The process of establishing ratings for the obligations of
issuers rated between AAA and BB- will refer, for the most part,
to aggregate recoveries on the defaulted bond market as a whole
for that sector and not to issuer-specific analysis since
assumptions on enterprise value and creditor mass at default for
these entities would be largely arbitrary.

For this reason, recovery assessments and thus individual issue
ratings will be based more on the long-term averages of recovery
for that type of security in a given sector, after giving
consideration to additional issues such as collateral value,
relative subordination and other determinants of recovery.  For
issuers rated B+ and below, Recovery Ratings derive from a
customized analysis of the individual issuer and their capital
structure, assuming emergence from a defaulted stress scenario.

Fitch has published criteria under which certain corporate
sector entities are expected to have their senior unsecured
ratings above the entity's IDR, denoting the sector's generic
higher rates of recovery upon default.  To date, these sectors
include regulated utilities and European investment property
companies.

Existing Outlooks and Rating Watch status assigned to the
previous Senior Unsecured, counterparty or other issuer ratings
remain unchanged and apply to the IDRs for the issuers as below.
Similarly, the Rating Watch status on previous issue ratings
remains unchanged for the issuers listed below.

The IDRs are listed for European property issuers, together with
senior unsecured ratings, which have remained unchanged, except
for MEPC.

British Land Company plc

   -- IDR: BBB- Outlook Stable;
   -- Short-term rating F3; and
   -- Senior unsecured rating: BBB

Brixton plc

   -- IDR: BBB- Outlook Stable;
   -- Short-term rating F3; and
   -- Senior unsecured rating: BBB

Hammerson plc

   -- IDR: BBB+ Outlook Stable;
   -- Short-term rating F2;
   -- Senior unsecured rating: A-

MEPC (1946) Limited

a) Previous Ratings

   -- Senior Unsecured rating: B Outlook Negative; and
   -- Short-term Rating B

b) Revised Ratings

   -- IDR: B- Outlook Negative;
   -- Short-term rating B; and
   -- Senior unsecured rating: BB-

PSP Swiss Property AG

   -- IDR: BBB+ Outlook Stable;
   -- Short-term rating F2; and
   -- Senior unsecured rating: A-

Slough Estates plc

   -- IDR: BBB+ Outlook Stable;
   -- Short-term rating F2; and
   -- Senior unsecured rating: A-


                           *********


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.  Jazel Laureno, Liv Arcipe, Julybien Atadero, and
Carmel Paderog, Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2754.

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