TCREUR_Public/060602.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

              Friday, June 2, 2006, Vol. 7, No. 109

                            Headlines

F I N L A N D

METSO CORP: Fidelity International Cuts Equity Stake to 4.84%


F R A N C E

EUROTUNNEL GROUP: Bares Interim Debt Restructuring Deal


G E R M A N Y

A.B.U.C. SICHERUNGSTECHNIK: Claims Filing Period Ends June 20
EUROPA VERLAG: Claims Filing Period Ends June 20
EVERS-BRAUNSCHWEIGER: Claims Registration Ends June 20
HEROS GELD+WERT: Claims Registration Ends June 20
LEXINGTON RESOURCES: Closes US$7.65 Million Equity Placement

LEXINGTON RESOURCES: Posts US$3.8 Mln Net Loss in First Quarter
LG.PHILIPS: Claims Registration Ends June 19
RHENANIA TREUHAND: Creditors' Meeting Slated for June 19
SIRIO DESIGN: Claims Registration Ends June 19
SOL Y MAR: Claims Filing Period Ends June 16

STAR DINER: Claims Filing Period Ends June 19


H U N G A R Y

AES CORP: Holds Majority Stake in AgCert Joint Venture


I T A L Y

BANCA POPOLARE: Confirms Sale of Non-Performing Loans to ABN
BANCA POPOLARE: Enforces Magiste's Pledges on RCS Shares
BANCA POPOLARE: Probes Offers for Banca Bipielle & Area Life
MAGISTE SPA: Popolare Italiana Enforces Pledges on RCS Shares


K A Z A K H S T A N

AKVA PARK: Mangistau Court Opens Bankruptcy Proceedings
ALTAY TUR: Creditors Must File Claims by June 13
KVINTES LTD: Creditors Must File Claims by June 13
MURA: Proof of Claim Deadline Slated for June 13
REAGOLD: Proof of Claim Deadline Slated for June 13

SIBAN: Proof of Claim Deadline Slated for June 13
SMITH INTERNATIONAL: Creditors' Claims Due June 13
TASBULAT OIL: Claims Registration Ends June 13
TUTATIS: Claims Registration Ends June 13
VOSTOK KOMPUSERVICE: Claims Registration Ends June 13


K Y R G Y Z S T A N

ENERGETICHESKAYA: Bishkek Court Opens Bankruptcy Proceedings
TARIM: Creditors' Meeting Slated for June 7


L U X E M B O U R G

GSC EUROPEAN: Moody's Rates EUR13.5 Million Class E Notes at Ba3


N E T H E R L A N D S

KONINKLIJKE AHOLD: Albert Heijn to Buy 23 Stores From Laurus
PYATEROCHKA HOLDING: Authorizes US$800 Million Credit Facility
PYATEROCHKA HOLDING: Consolidated Financials Out by September
VNU N.V.: Inks Termination Protection Agreement with CFO


R U S S I A

KAZAKHTELECOM: Fitch Rates Short-Term Foreign Currency at B
MAKEY: Court Taps V. Vinogradov to Manage Insolvency Assets
MGACHI-COAL: Court Opens Bankruptcy Process
MICHURINETS: Chelyabinsk Court Begins Bankruptcy Process
OZONE: Court Appoints Mr. V. Devyatkin as Insolvency Manager

PYATEROCHKA HOLDING: Authorizes US$800 Million Credit Facility
PYATEROCHKA HOLDING: Consolidated Financials Out by September
REINFORCED-CONCRETE 4: Court Names E. Kotkov Insolvency Manager
SLOBODSKOYE GRAIN: Court Names V. Alalykin Insolvency Manager
OAO GAZPROM: Inks Construction Deal for Bryansk Gas Project

VOSKRESENSK-SEL-STROY: S. Kiseleva Named as Insolvency Manager
VOZROZHDENIE BANK: Moody's Revises Ratings Outlook to Positive
ZUEVSKIY REPAIR: G. Devyatykh to Manage Insolvency Assets


T U R K E Y

FINANS FINANSAL: Moody's Lifts Foreign Currency Rating to Ba1


U K R A I N E

DRABIVSKE REPAIR-TRANSPORT: Court Begins Bankruptcy Process
INAGRO: Donetsk Court Launches Bankruptcy Supervision Procedure
INTERNET TECHNOLOGY: Court Starts Bankruptcy Supervision
KLIME: Vinnitsya Court Names JSCB Mriya as Liquidator
KVADROTEH: Yaroslav Onushkanich to Manage Insolvency Assets

NAFTA-K: Kyiv Court Names Sergij Tusmenko as Liquidator
PBF AGROTEP: State Tax Inspection to Liquidate Assets
PROLISOK: Court Appoints V. Glebov as Insolvency Manager


U N I T E D   K I N G D O M

21ST CENTURY: Brings In Begbies Traynor to Administer Assets
ALDACRAFT LIMITED: Appoints Atherton Bailey as Administrators
AVOCA CAPITAL: S&P Assigns Rating to New Floating Rate Notes
CABLE & WIRELESS: Drops Share Buyback Scheme
CORUS GROUP: Earns GBP45 Million in First Quarter 2006

EUROTUNNEL GROUP: Bares Interim Debt Restructuring Deal
HOSE DIRECT: Creditors Pass Winding Up Resolution
INHOUSEIT AND MACSCOMS: Winds Up Business & Appoints Liquidator
INTERFACE ENTERPRISES: Names A. Kachani Administrator
MIKE HORIZON: Brings In Liquidator from Ashcrofts

PARK CIVILS: Hires Liquidator from Armstrong Watson
PETRO CHEMICAL: Names Steven Leslie Smith to Liquidate Assets
PROFLO SYSTEMS: Brings In Joint Liquidators from Tipiden
QUIGLEY UNITED: Hires Joint Administrators from Unity Business
R.H. ELECTRICAL: Creditors Resolve to Wind Up Operations

SHAN TRADING: Calls In Begbies Traynor Administrator
SHAZAM LIMITED: Ninos Koumettou Leads Winding Up Procedure
STANTON VINTAGE: S&P Rates EUR16 Million Class E Notes at BB
STORM FLOWERS: Claims Filing Period Ends Sept. 30
SUITABLE SHOES: Taps Philip Weinberg to Liquidate Assets

SURESTOCK SERVICES: Taps Tenon Recovery to Administer Assets
SWAN STREET: Appoints Robert William Birchall as Administrator
TONY MCFADDEN: Brings In Menzies as Joint Administrators
VISION H.I. LIMITED: Creditors' Meeting Slated for June 5

                            *********

=============
F I N L A N D
=============


METSO CORP: Fidelity International Cuts Equity Stake to 4.84%
-------------------------------------------------------------
Fidelity International Limited and its subsidiaries decreased
its holding of the paid-up share capital of Metso Corporation.

On May 26, Fidelity International Limited and its subsidiaries
owned a total of 6,849,245 Metso shares, which corresponds to
4.84% of the paid up share capital and voting rights of Metso
Corporation from their previous 5.12% stake.

Fidelity International Limited holdings as of May 26, 2006 were:

   Fund Name                         Shares
   ---------                         ---------
   FIJ IT Euro Smllr Cos OPN MTHR       18,200
   Fidelity European OPP FND 1992      220,600
   Fifteen Re Fidelity                 162,100
   FID FDS - European Growth Pool    3,270,099
   FID FDS - Nordic Pool               338,800
   FID FDS - Euro Blue Chip Pool       972,565
   FID FDS - Euro Smaller Co Pool      342,200
   EP MM Clapp                          57,600
   STC Intl Equity Fund - ROW           28,500
   SGE MM ROW                           15,900
   GEC 1972 PLN GLB EQTY FD - ROW       32,900
   Church Comm for England - ROW        23,800
   British Energy Gen Grp - ROW         13,500
   IBM Denm Select - Global EX-US        6,200
   Accident Rehab & CMP - GLB EX-US     49,200
   IBM Austria Global EX US              3,200
   AFP Unilever Schweiz - GBL EX US      4,700
   Deutsche Artze - ROW                  8,200
   FMT_GL ROW                           34,800
   East Sussex Cnty Council - ROW       33,400
   Railways Pens Equity - EUROPE       215,200
   Chevron Texaco UK PNS PL-ROW         16,800
   Australia - Funds SA                 56,300
   Saint-Gobain UK Pension Scheme       39,300
   Shell Austria Pensionskasse AG        9,400
   DBI - Fonds Dspt- A1                 31,700
   NPC Trust - Active 1 - ROW            7,600
   Bayvk A1 Fidelity                    70,000
   MV4 Actions Euro                     52,024
   FF-Inst Euro Blue Chip Pool          46,025
   Stichting Bedrijf Voor De Meta      176,600
   GM Investment Trustees Ltd.           29,600
   The Pensions Trust - GC              12,000
   Fidelity European Pilot Fund        916,000
   Victorian Funds Mgmt Corp            19,000
   GIC MM European Eq Fund - Gc         14,600
   Fidelity Eurozone Eq Pilot FD         1,970
   A/C 16MSFSLE                         69,000
   Fidelity European Cycl PLT FD         2,300
   SPH - Select Europe                  47,300
   SPMS-Select Europe                   31,100
   Fidelity Select Global Eq Fund        4,700
   Fid Aus Europe Fund                  16,300
   Fid Instl Select Europe Eq Fd        30,900
   Unilever PRG Small Cap Europe        12,800
   Basf AG - European Small Caps        43,200
   Multi Style Mult Mgr Eur Sm Cp       34,400
   Stchg Bd V De Mt En Tch Bd Esc       39,100
   Co-Operative Grp Pens - Rw           19,800
   Gkn Group Pension Scheme - ROW       24,600
   Unilever (Superann) Ireland - ROW    24,600
   Ibm Irel Sel Glbl Equities ROW        1,700
   Ibm Austria Select Glbl Eq ROW        4,300
   European Equity Mkt Neut Long        17,946
                                     ---------
   Total                             6,849,245 Shares

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of approximately EUR4.2 billion.  
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

                        *     *     *

As reported in TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


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


EUROTUNNEL GROUP: Bares Interim Debt Restructuring Deal
-------------------------------------------------------
Eurotunnel Group signed a binding Preliminary Restructuring
Agreement with the Ad Hoc Committee on May 23, following 10
months of negotiations.  

The restructuring plan is strengthened by a financing commitment
from a group of financiers and investors comprised of Goldman
Sachs, Barclays and Macquarie.

The Agreement preserves, as far as possible, the interests of
all the parties involved.  It is being presented to the other
debt holders and will be presented to Eurotunnel shareholders at
the next General Meeting.

The economics of this Agreement include:

   -- debt reduction of approximately GBP3.3 billion;

   -- a total "corporate" style debt of GBP2.9 billion, made up
      of three tranches: new Senior debt, Tier 1A and mezzanine;

   -- listed hybrid notes for a nominal amount of GBP1 billion,
      convertible from 2009; and

   -- the establishment of accretion mechanisms for the existing
      Eurotunnel shareholders: warrants and the possibility for      
      the Group to buyback the hybrid notes.

The financial restructuring, if accepted, will be implemented
through the incorporation of a new French parent company, which
will, in autumn 2006, launch an exchange offer, in the UK and
France, to holders of Eurotunnel Units.

            Preliminary Restructuring Agreement

This note summarizes the key elements of the Preliminary
Restructuring Agreement executed by Eurotunnel with the members
of the Ad Hoc Committee.  This binding agreement, which is
subject to a number of conditions precedent, sets out the
principal terms of the restructuring of Eurotunnel's debt which,
once finalized, will be presented to its shareholders at the
next General Meeting.  

The prime objective of the parties to the Preliminary
Restructuring Agreement is to create the conditions for
Eurotunnel to operate on a "normal" basis, at the same time as
taking account of the interests of the different parties.  The
agreed structure provides a lasting solution to the problems
encountered by the group since its creation by:

   -- simplifying and unifying the existing corporate structure;

   -- replacing the current "project finance" style debt
      structure by a "corporate" debt structure; and

   -- significantly reducing the group's indebtedness and   
      adapting the amount and duration to the specificities of   
      the tunnel concession.

The tunnel operator expects to complete the restructuring plan
implementation before Oct. 31.

Key features of the financial restructuring plan:

   -- the Preliminary Restructuring Agreement sets out the   
      framework to restore and stabilize Eurotunnel's financial
      situation, with the objective of reducing its indebtedness
      by approximately 54% from GBP6.20 billion to GBP2.90  
      billion.  This reduced level of indebtedness is considered
      realistic in light of the duration of the concession and
      operating forecasts to ensure the group's future and
      prospects for development and provides a balanced
      treatment of the interests of all relevant parties.

   -- The refinancing plan is structured around:

      a) the incorporation of a new French holding company,
         which will be at the center of the restructuring and   
         all of the transactions required for its    
         implementation.  The existing Eurotunnel shareholders
         will have the possibility to become members of the new
         French holding company pursuant to an exchange offer;
         and

      b) the simultaneous financing of the new structure by a
         group of investors and financiers.

The key features of the financial restructuring are:

   -- incorporation of a new French holding company listed in
      London and Paris.  The share capital of the new holding
      company will be comprised of ordinary shares and one   
      preferred share.  The preferred share will be held by a  
      company controlled by the investors in the hybrid notes  
      and would confer specific governance rights, but no
      specific economic rights;

   -- implementation of an exchange offer in the UK and France
      pursuant to which the holders of Eurotunnel PLC and
      Eurotunnel S.A. units will be offered:
      
      a) new shares in the new French holding company; and

      b) warrants entitling the holders to subscribe for
         additional shares in the circumstances set out in    
         paragraph (vi) below, in particular in the event of
         additional value crystallizing in Eurotunnel.

      In addition, shares in the new French holding company   
      offered pursuant to the Exchange Offer will benefit from
      preferential tariffs for transport.  The minimum
      acceptance threshold for the Exchange Offer will be 60%,
      subject to regulatory approval;

   -- the funding of a new Senior facility of an aggregate
      amount of GBP1.81 billion to France Manche SA and
      Eurotunnel Finance Ltd. to refinance the Senior Debt,
      Fourth Tranche and Tier 1 and Tier 2 of the Junior Debt.  
      Tier 1A will be excluded from this refinancing and will
      remain in place under its current terms;

   -- issue by an English subsidiary of the new French holding
      company of a mezzanine debt of an aggregate amount of up
      to GBP350 million, the proceeds of which will be used in
      part to refinance part of the current Junior Tier 3 Debt
      and to compromise the Stabilization Notes, Resettable
      Bonds and Participating Loan Notes.  Any remaining amount
      of the mezzanine debt will be used as working capital by
      the group, including to pay costs incurred in connection
      with the implementation of the restructuring;

   -- issue by the U.K. subsidiary of listed subordinated Hybrid
      Notes convertible into ordinary shares of the French
      holding company.  The issue of the Hybrid Notes will be
      underwritten by the new investors.  The Hybrid Notes will
      be offered to the holders of the Tier 3 Junior Debt in
      exchange for their debt of GBP1.78 billion.  

      The aggregate nominal amount of the Hybrid Notes will be
      GBP1 billion or equivalent, divided in three tranches:

      a) T1- GBP500 million, mandatory conversion on the third
         anniversary of their issue;

      b) T2 - GBP250 million, mandatory conversion on the fourth
         anniversary of their issue; and

      c) T3 - GBP250 million, mandatory conversion on the fifth  
         anniversary of their issue.  

      In addition, the Hybrid Notes may, subject to certain
      conditions, be redeemed at the discretion of Eurotunnel by
      the payment of a redemption premium of 59.2%, increased
      each year by 7.5%; and

   -- the granting of claw back rights, in the form of warrants
      issued to shareholders tendering their Units to the
      Exchange Offer and to a lesser extent to holders of
      Stabilization Notes, Resettable Bonds and Participating
      Loan Notes.  These warrants are intended to limit the
      diluting effect on the shareholders of the Hybrid Notes
      upon the occurrence of certain events and enable their
      holders to participate in future value creation within the
      new French holding company.

The restructuring plan provides for the extension of the
maturity profile of all of the group's indebtedness to be more
in line with the duration of the concession.  The group's
indebtedness may also be refinanced, subject in certain cases,
to the payment of an early redemption premium, enabling the
group to benefit from any improvement in market conditions and
the company's credit rating following the restructuring.

             Overview of the Financial Restructuring

The restructuring plan is in respect of approximately
GBP6.24 billion, estimated to be the level of the group's debt
as at Oct. 31, 2006, the expected closing date of the
implementation of the restructuring.

The restructuring plan:

   -- provides for the redemption in full of the principal
      amount plus accrued interest of:

      a) the Senior Debt: GBP237 million,
      b) the Fourth Tranche Debt: GBP129 million,
      c) the Tier 1 Debt: GBP541 million, and
      d) Tier 2 Debt - GBP892 million.  

      Holders of Tier 3 Junior Debt will receive subordinated
      Hybrid Notes convertible into shares of an aggregate
      principal amount of GBP1 billion, plus a payment in cash
      of GBP100 million in exchange for their debt of
      GBP1.78 billion;

   -- does not affect the Tier 1A Debt which remains in place
      under its current terms.  With the first repayment of
      principal not due until 2026, this does not affect the
      short term financial stability of the group; and

   -- includes a mezzanine debt, the principal amount of which
      is not amortizable for seven years and the unpaid interest
      of which will be capitalized.

                    Dilution/Claw Back Rights

The conversion of Hybrid Notes into ordinary shares of the new
French holding company will entitle their holders to up to
86.95652% of the share capital of the new French holding company
on a fully diluted basis and following a complete success of the
Exchange Offer.  Under the terms of the agreement, the potential
dilution of holders of Units may be limited by:

   -- the holders of Units accepting the Exchange Offer will
      receive free warrants to subscribe for ordinary shares in
      the new French holding company which will entitle them to
      be the only shareholders benefiting from a part of the
      increase in value of the French holding company between
      2008 to 2010 by being able to exercise the warrants with
      effect from 2011 at an exercise price equal to the nominal
      value of the underlying shares and for a number of shares
      proportionate to the increase in value and to which they
      are entitled; and

   -- up to 40% of the Hybrid Notes may be redeemed at any time
      at the entire discretion of the Eurotunnel group, subject
      to the payment of an initial redemption premium of 59.2%,
      increasing each year by 7.5%.  Any redemption of more than
      40% of the Hybrid Notes must be made for all of the
      outstanding Hybrid Notes.  The redemption of Hybrid Notes
      may be financed in one or more of the following three
      ways:

      a) additional indebtedness up to a maximum of GBP225
         million;

      b) share capital increase; and

      c) direct market purchases of up to 5% of the outstanding
         Hybrid Notes in the fifth year following their issue.

   -- the Preliminary Restructuring Agreement specifically
      provides for the possibility of dividends to be paid to
      shareholders:

      a) following the payment of a first coupon of 6% to the
         holders of the Hybrid Notes, subject to available cash
         flow, an additional 3% coupon shall be payable to
         holders of Hybrid Notes and a dividend of an amount
         equal to the amount of the additional coupon
         multiplied by the sum of the number of shares in issue
         divided by the number of shares to be issued upon
         conversion of the Hybrid Notes in issue at the date of
         payment of the additional coupon shall be payable to
         shareholders; and

      b) by the debt structure of the group becoming
         "corporate" in nature. Subject to complying with the
         various agreements reached with its creditors, in
         particular concerning coverage ratios, the group will
         be entitled to retain its free cash flows and at the
         appropriate time use them in accordance with its
         corporate interest, such as paying dividends to its
         shareholders.

Eurotunnel now intends to convince the subordinated debt holders
to back this Preliminary Restructuring Agreement.  In parallel
Eurotunnel will seek to strengthen the financial refinancing
package through inclusion of a wider group of investors and
financiers.  Details of the full restructuring plan and the
conditions to which it is subject will be presented to
shareholders at the next General Meeting.  A full description
will be included in the documentation provided to shareholders
in connection with the Exchange Offer.

The effective implementation of the restructuring plan is
subject to the satisfaction of a number of conditions precedent
over the coming months.  The terms of the exchange offer are
subject to regulator approval and could therefore be amended.
Certain conditions depend on events and parties outside the
control of the Eurotunnel group, which may not be satisfied or
may only be satisfied in a timeframe that is incompatible with
the proposed implementation of the restructuring plan.  In this
case, Eurotunnel would have to agree with the relevant parties
the necessary changes or modifications to be made to the current
plan.  The implementation of the restructuring plan will be
completed not later than the autumn 2006.

                      About the Company

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a  
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        *     *     *

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faces
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.


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


A.B.U.C. SICHERUNGSTECHNIK: Claims Filing Period Ends June 20
-------------------------------------------------------------
Creditors of A.B.U.C. Sicherungstechnik GmbH have until June 20
to register their claims with court-appointed provisional
administrator Manuel Sack.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on July 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 Hanover
         Hall 3014
         Ground Floor
         New Building
         Volgersweg 1
         30175 Hanover, 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 Hanover opened bankruptcy proceedings
against A.B.U.C. Sicherungstechnik GmbH on April 28.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Manuel Sack
         Theaterstr. 3
         30159 Hanover, Germany
         Tel: 0511/36602-0
         Fax: 0511/36602-55

The Debtor can be reached at:

         A.B.U.C. Sicherungstechnik GmbH
         Attn: Karl-Heinz Weis, Manager        
         Beckstr. 2-4
         30457 Hanover, Germany


EUROPA VERLAG: Claims Filing Period Ends June 20
------------------------------------------------
Creditors of Europa Verlag GmbH have until June 20 to register
their claims with court-appointed provisional administrator Dr.
Florian Stapper.

Creditors and other interested parties are encouraged to attend
the meeting at 1:00 p.m. on July 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 Leipzig
         Hall 056
         Leipzig, 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 Leipzig opened bankruptcy proceedings
against Europa Verlag GmbH on May 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The administrator can be reached at:

         Dr. Florian Stapper
         Karl-Heine-Road 16
         04229 Leipzig, Germany

The Debtor can be reached at:

         Europa Verlag GmbH
         Attn: Arne Teutsch, Manager        
         Tschaikowskistr. 21
         04105 Leipzig, Germany


EVERS-BRAUNSCHWEIGER: Claims Registration Ends June 20
------------------------------------------------------
Creditors of Evers-Braunschweiger Sand- und Kieswerke GmbH & Co.
KG have until June 20 to register their claims with court-
appointed provisional administrator Joachim C. Hausherr.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on July 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 Wolfsburg
         Hall D
         Rothenfelder Road 43
         38440 Wolfsburg, 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 Goppingen opened bankruptcy proceedings
against Evers-Braunschweiger Sand- und Kieswerke GmbH & Co. KG
on May 2.  Consequently, all pending proceedings against the
company have been automatically stayed.

The administrator can be reached at:

         Joachim C. Hausherr
         Break Gate Barrier 6
         38100 Braunschweig, Germany
         Tel: 0531/24480-0
         Fax: 0531/24480-80
         E-mail: jchausherr@hausherr-steuerwald.de

The Debtor can be reached at:

         Evers-Braunschweiger Sand- und Kieswerke GmbH & Co. KG
         Emmerstedter Str. 16a
         38350 Helmstedt, Germany


HEROS GELD+WERT: Claims Registration Ends June 20
-------------------------------------------------
Creditors of HEROS Geld+Wert Logistik GmbH have until June 20 to
register their claims with court-appointed provisional
administrator Manuel Sack.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on July 19, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         Hanover Congress Centrum
         Theodor Heuss Place 1-3
         30175 Hanover, Germany

The Court will also verify the claims set out in the
administrator's report at 9:10 a.m. on Sept. 6, at:
         
         The District Court of Hanover
         Hall 226
         2 Upper Floor
         Hamburg Avenue 26
         30161 Hanover, Germany

The District Court of Hanover opened bankruptcy proceedings
against HEROS Geld+Wert Logistik GmbH on April 28.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Manuel Sack
         Theaterstr. 3
         30159 Hannover, Germany
         Tel: 0511/36602-0
         Fax: 0511/36602-55

The Debtor can be reached at:

         HEROS Geld+Wert Logistik GmbH
         Attn: Karl-Heinz Weis, Manager        
         Eduard-Pestel-Road 2
         49080 Osnabrueck, Germany


LEXINGTON RESOURCES: Closes US$7.65 Million Equity Placement
------------------------------------------------------------
Lexington Resources, Inc., closes a US$7.65 million equity
placement to increase drilling and related capital and operating
expenditures to expedite development of its Barnett Shale,
Texas, and Arkoma Basin, Oklahoma, gas projects.

Proceeds of approximately US$7.2 million, net of expenses, will
allow the Company to expand gas production initiatives in its
2006 capital expenditure program.

The Company has entered into purchase agreements with certain
accredited investors for private placement totaling 7.65 million
units at a purchase price of US$1.00 per unit for gross proceeds
of US$7.65 million.

Included in the units are warrants for an additional 7.65
million common shares exercisable at US$1.25 per share.  The
warrants are exercisable for a term the earlier of 12 months
after registration effectiveness, or 18 months.  

The Company will file a registration statement with the
Securities and Exchange Commission covering the resale of shares
of common stock sold in the private placement or issuable upon
exercise of the warrants.

Agent success fees relating to the offer are payable in
connection with the private placement in the amount of 5% of the
gross proceeds payable in cash plus 10% of the gross units
issued payable in restricted common shares that carry piggy back
registration rights.

Lexington Resources, Inc. (OTCBB: LXRS) (FSE: LXR) (BER: LXR)
(WKN: AOBKLP) -- http://www.lexingtonresources.com/-- acquires  
and develops oil and natural gas properties in the United
States.  The Company owns a 590 gross acre section of farm-out
acreage in Pittsburg County, Oklahoma for the development and
production of coal bed methane gas known as the Wagnon Property.  
The Company is producing gas from four wells drilled on the
Wagnon Property.  Lexington has a 53.2% back-in working interest
in each of the wells.  Its current operational focus is gas
development initiatives in the Arkoma Basin, Oklahoma, and the
Fort Worth Basin, in Dallas, Texas.

                         *     *     *

                      Going Concern Doubt

Dale Matheson Carr-Hilton LaBonte, Chartered Accountants, in
Vancouver, Canada, raised substantial doubt about Lexington
Resources, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
years ended Dec. 31, 2004, and 2005.  The auditor pointed to the
Company's significant losses since inception and need for
additional financing.


LEXINGTON RESOURCES: Posts US$3.8 Mln Net Loss in First Quarter
---------------------------------------------------------------
Lexington Resources, Inc., filed its first quarter financial
statements for the three months ended March 31, 2006, with the
U.S. Securities and Exchange Commission on May 17.

The Company reported a US$3,809,589 net loss on US$301,306 of
total revenues for the three months ended March 31, 2006.

At March 31, 2006, the Company's balance sheet showed
US$13,821,848 in total assets, US$6,801,881 in total
liabilities, and US$7,019,967 stockholders' equity.

The Company's March 31 balance sheet showed strained liquidity
with US$823,074 in total current assets available to pay
US$5,265,496 in total current liabilities.

Full-text copies of the Company's financial statements for the
three months ended March 31, 2006, are available for free at
http://ResearchArchives.com/t/s?a5a   

                        Going Concern Doubt

Dale Matheson Carr-Hilton LaBonte, Chartered Accountants, in
Vancouver, Canada, raised substantial doubt about Lexington
Resources, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
years ended Dec. 31, 2004, and 2005.  The auditor pointed to the
Company's significant losses since inception and need for
additional financing.

Lexington Resources, Inc. (OTCBB: LXRS) (FSE: LXR) (BER: LXR)
(WKN: AOBKLP) -- http://www.lexingtonresources.com/-- acquires  
and develops oil and natural gas properties in the United
States.  The Company owns a 590 gross acre section of farm-out
acreage in Pittsburg County, Oklahoma for the development and
production of coal bed methane gas known as the Wagnon Property.  
The Company is producing gas from four wells drilled on the
Wagnon Property.  Lexington has a 53.2% back-in working interest
in each of the wells.  Its current operational focus is gas
development initiatives in the Arkoma Basin, Oklahoma, and the
Fort Worth Basin, in Dallas, Texas.


LG.PHILIPS: Claims Registration Ends June 19
--------------------------------------------
Creditors of LG.Philips Displays Glass Germany GmbH have until
June 19 to register their claims with court-appointed
provisional administrator Dr. Frank Kebekus.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 Aachen
         Hall 339
         Adalbertsteinweg 90
         52070 Aachen, Germany

The Court will also verify the claims set out in the
administrator's report at 9:10 a.m. on July 31 at:

         The District Court of Aachen
         Area Meeting Room K 5
         3rd Floor
         Alter Posthof 1
         52062 Aachen, Germany

The District Court of Aachen opened bankruptcy proceedings
against LG.Philips Displays Glass Germany GmbH on May 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Dr. Frank Kebekus
         Franconia Route 14-16
         52070 Aachen, Germany

Headquartered in Aachen, Germany, LG.Philips Displays Glass
Germany GmbH -- http://www.lgphilips-displays.com/--  
manufactures glass parts for color picture tubes for parent
company LG.Philips Displays, the world's market leader in color
picture tubes for use in televisions and computer monitors.  


RHENANIA TREUHAND: Creditors' Meeting Slated for June 19
--------------------------------------------------------
The court-appointed provisional administrator for RHENANIA
Treuhand GmbH Buchpruefungsgesellschaft
Steuerberatungsgesellschaft, Dr. A. Kohler, will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 8:56 a.m. on June 19.

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

         The District Court of Montabaur
         Hall 106
         1 Stick
         Station Route 47
         56410 Montabaur, Germany

The Court will also verify the claims set out in the
administrator's report at 9:08 a.m. on Aug. 7 at the same venue.

Creditors have until June 30 to register their claims with the
court-appointed provisional administrator.

The District Court of Montabaur opened bankruptcy proceedings
against RHENANIA Treuhand GmbH Buchpruefungsgesellschaft
Steuerberatungsgesellschaft on April 3.  Consequently, all
pending proceedings against the company have been automatically
stayed

The Debtor can be reached at:

         RHENANIA Treuhand GmbH Buchpruefungsgesellschaft
         Steuerberatungsgesellschaft
         Field Route 6
         56377 Nassau, Germany

         Attn: Gerhard Winkelbauer, Manager
         Wilhelmstr. 3
         56112 Lahnstein, Germany
        
The administrator can be reached at:

         Dr. A. Kohler
         William Route 42
         65582 Diez, Germany
         Tel: 06432/64580
         Fax: 06432/645820


SIRIO DESIGN: Claims Registration Ends June 19
----------------------------------------------
Creditors of Sirio Design Verwaltungs-GmbH have until June 19 to
register their claims with court-appointed provisional
administrator Dr. Gideon Bohm.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on July 17, 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 Hamburg
         Hall B 405         
         4th Floor
         Sievekingplatz 1
         20355 Hamburg, 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 Hamburg opened bankruptcy proceedings
against Sirio Design Verwaltungs-GmbH on April 18.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Sirio Design Verwaltungs-GmbH
         Attn: Oliver Wegener-Pavenstedt and
         Sibilla Pavenstedt, Managers
         Feldbrunnenstrasse 33
         20144 Hamburg, Germany

The administrator can be reached at:

         Dr. Gideon Bohm
         Brook Route 85a
         22083 Hamburg, Germany
         Tel: 040/3208360
         Fax: 040/32083636


SOL Y MAR: Claims Filing Period Ends June 16
--------------------------------------------
Creditors of sol y mar Reisen GmbH have until June 16 to
register their claims with court-appointed provisional
administrator Jan H. Wilhelm.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on July 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 Hamburg
         Hall B 405
         4th Floor
         Sievekingplatz 1
         20355 Hamburg, 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 Hamburg opened bankruptcy proceedings
against sol y mar Reisen GmbH on April 11.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         sol y mar Reisen GmbH
         Attn: Baldomero Rodriguez Fernandez, Manager        
         Lime Tree Road 25
         20099 Hamburg, Germany

The administrator can be reached at:

         Jan H. Wilhelm
         Albert-Einstein-Ring 11/15
         22761 Hamburg, Germany
         Tel: 8995615
         Fax: 8995610


STAR DINER: Claims Filing Period Ends June 19
---------------------------------------------
Creditors of Star Diner Betriebsgesellschaft Hannover GmbH & Co.
KG have until June 19 to register their claims with court-
appointed provisional administrator Peter Knopfel.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on July 19, 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 Hanover
         Hall 226
         2nd Floor
         Hanover, 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 Hanover opened bankruptcy proceedings
against Star Diner Betriebsgesellschaft Hannover GmbH & Co. KG
on May 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Star Diner Betriebsgesellschaft Hannover GmbH & Co. KG
         Vahrenwalder Str. 13a
         30165 Hanover, Germany

The administrator can be reached at:

         Peter Knopfel
         King Route 4
         30175 Hannover, Germany
         Tel: 0511/336138-0
         Fax: 0511/336138-66


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


AES CORP: Holds Majority Stake in AgCert Joint Venture
------------------------------------------------------
The AES Corporation (NYSE:AES) and AgCert International plc
(LSE:AGC) disclosed the formation of AES AgriVerde, a joint
venture designed to deploy AgCert's greenhouse gas emission
reduction technology in selected countries in Asia, Europe and
North Africa.

Under the terms of the relevant agreements, AES will maintain a
majority interest in the joint venture and plans to invest
approximately US$325 million into the joint venture over the
next five years.  In addition, AES has invested approximately
EUR40 million to acquire an approximate 9% equity interest in
AgCert.

By 2012, AES AgriVerde intends to create an annual production
volume of 20 million tons of greenhouse gas emission reductions
through the reduction of methane -- a potent greenhouse gas --
emissions created by agricultural and animal farm waste.

AES AgriVerde will utilize a technology process developed by
AgCert to capture methane from agricultural and animal waste
products.  AES AgriVerde will install systems to capture this
gas and either destroy it or use it to generate electricity or
heat, reducing net greenhouse gas emissions from the manure
management process by approximately 95%.  This application
reduces emissions by preventing the animal sewage and other
agricultural waste from being disposed in large open lagoons
where it would otherwise decay, releasing large volumes of
methane.

"AES is committed to helping address climate change issues as
part of our broader alternative energy strategy," said William
Luraschi, AES Executive Vice President for Business Development,
and the head of AES's recently announced alternative energy
business.  "We believe that greenhouse gas emissions will
continue to face increasing regulation, and expect that offsets
will remain a significant component of those regulations.  This
methodology not only mitigates important environmental impacts,
it enhances our ability to meet new power needs."

In April, AES announced the formation of its alternative energy
group and plans to invest approximately US$1 billion over the
next three years in this sector.  Since October 2005, the
company has committed to approximately US$100 million in
investments, which will generate over 17 million tons of
emission reductions through 2012.

"Methane is a significant contributor to climate change and is
21 times more potent than CO2," said Bill Lyons, AES Managing
Director of Climate Change and Technology Development within
AES's alternative energy group.  "Agricultural processes provide
a low cost, high volume method for producing offsets.  In
addition to its positive impacts on climate change, this
mitigation method has numerous local health benefits including,
cleaner drinking water and soil as well as reduced exposure to
mosquito-borne diseases.  We are targeting large market
opportunities with this joint venture and are excited to partner
with a quality company like AgCert."

"We are very excited to be expanding upon our strategic
relationship with AES, leveraging our technology and know how to
build a pipeline of incremental emission reductions.  The joint
venture with AES allows AgCert to rapidly deploy our
technologies in areas where AES has strong presence and permits
AgCert to continue to execute our strategy in all other parts of
the globe.  It also provides the option for AgCert to invest
further in the JV," said AgCert CEO Bill Haskell.

                        About AgCert

AgCert International plc -- http://www.agcert.com/-- was  
founded in 2002 to produce and sell reductions in greenhouse gas
emissions from agricultural sources on an industrial scale.  
These offsets are intended to satisfy the requirements of the
Kyoto Protocol and be capable of being traded on the European
cap and trade system, the European Union Emissions Trading
Scheme.  AgCert has identified agriculture as one of the largest
commercial opportunities for offset production and expects to be
a leading supplier of offsets from this sector.  AgCert has
significant expertise in the use of United Nations approved
methodologies for the production of offsets in the agricultural
sector from animal waste.

                      About the Company

AES Corporation -- http://www.aes.com/-- is a global power  
company.  The Company operates in South America, Europe, Africa,
Asia and the Caribbean countries.  Generating 44,000 megawatts
of electricity through 124 power facilities, the Company
delivers electricity through 15 distribution companies.

AES has been in Eastern Europe for nearly ten years, since it
acquired three power plants in Hungary in 1996.  Today, AES has
two distribution companies in Ukraine, which serve 1.2 million
customers and generation plants in the Czech Republic and
Hungary.  AES is also the leading company in biomass conversion
in Hungary, generating 37% of the nation's total renewable
generation in 2004.

                        *     *     *

As reported in the Troubled Company Reporter on May 25, Fitch
affirmed The AES Corporation's Issuer Default Rating at 'B+'.  
Fitch also affirmed and withdrew the ratings for the company's
junior convertible debt.  Fitch said the rating outlook for all
remaining instruments is stable.

In March, Standard & Poor's Ratings Services raised its
corporate credit rating on diversified energy company The AES
Corp. to 'BB-' from 'B+'.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, Moody's
affirmed the ratings of The AES Corporation, including its Ba3
Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


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


BANCA POPOLARE: Confirms Sale of Non-Performing Loans to ABN
------------------------------------------------------------
Bipielle SGC and other banks of the Gruppo Banca Popolare
Italiana have completed the pro soluto transfer to ABN Amro of a
portfolio of unsecured, home mortgage type non-performing loans.

The portfolio transferred comprises roughly 23,000 positions in
respect of retail and corporate customers, for a total nominal
value of EUR924 million.  The transfer price totally paid by
cash, entails a capital gain of some EUR115 million -- before
taxes and minority interests -- as of the first half of this
year.

The transfer was completed en bloc pursuant to Arts. 1 and 4 of
Law 130/1999, with economic effect from Jan. 1 and, for Gruppo
Banca Popolare Italiana, entails the real and definitive
transfer of the credit risks related to the transferred entries,
without any further action being required of the group.

The portfolio has been acquired by Maja Finance Srl and Teseo
Finance Srl, companies established under Law 130/1999 and
belonging to the ABN Amro group.

The transaction ties in with the targets of the 2006-2009
Business Plan regarding asset quality, lower risk profile and
strengthening of the group's assets so as to support the
expected growth in operations. Specifically, it will enable a
sizeable reduction of the non-performing loans/net loans ratio,
also cutting down on litigation management and engendering
liquid assets to be employed in profit-making activities.

The operation was completed following a competitive auction
process coordinated by Bipielle SGC with assistance from
JPMorgan as the financial advisor, KPMG as the operational
consultant while Clifford Chance advised on the legal aspects.

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                        *     *     *

As reported in the TCR-Europe on April 3, Fitch Ratings
downgraded Banca Popolare Italiana's Issuer Default and Short-
term ratings to BBB from BBB+ and F3 from F2 respectively.  Its
Individual and Support rating are affirmed at C and 3
respectively.  Its senior debt and trust preferred stock are
also downgraded to BBB and BB+ respectively from BBB+ and BBB-.  
The Issuer Default, Short-term and Individual ratings are
removed from Rating Watch Negative.  A Stable Outlook is
assigned for the Issuer Default rating.


BANCA POPOLARE: Enforces Magiste's Pledges on RCS Shares
--------------------------------------------------------
Banca Popolare Italiana Soc. Coop. p.a. has appointed Credit
Suisse Securities (Europe) Limited as Sole Bookrunner in
connection with the placement of 108,782,870 ordinary shares of
RCS MediaGroup S.p.A., equivalent to approximately 14.847% of
the ordinary share capital of RCS, that have been pledged to BPI
by Magiste International S.A. and Garlsson Real Estate S.A. in
order to secure certain financing previously provided by BPI to
the "pledgors."

BPI's decision to enforce these pledges through the sale of the
RCS shares, which was authorized by BPI's board of directors on
March 23, 2006, has been notified to Magiste and Garlsson.

The RCS shares are being sold by BPI, through Credit Suisse, in
its capacity as pledgee and creditor of Magiste and Garlsson.  
Magiste and Garlsson pledged the shares in favor of BPI in July
and August 2005, respectively, in order to secure financing
provided by BPI in a total principal amount of approximately
EUR830 million which has not been repaid.

Credit Suisse will place the shares by way of an accelerated
bookbuilding transaction directed solely to a limited number of
Italian qualified investors and international institutional
investors, but excluding U.S. persons.  

BPI intends to participate in the placement, upon the same terms
and conditions offered to other investors, as a potential
purchaser of up to the total number of shares being offered in
the placement.

In accordance with the market practice for accelerated book
building procedures, the shares will be placed at the same price
to all the purchasers.

At the close of the placement, Credit Suisse will determine the
price of the shares placed, having regard to the quality and
quality of purchase offers received from qualified investors.  

Credit Suisse will thereafter select the investors to whom
shares will be allotted and will determine the quantity of
shares to be allotted to each of them in accordance with best
international market practice for accelerated bookbuilding
transactions, with the goal of avoiding discrimination and
maximizing the proceeds of the sale.

Italian Law thereof will govern the transfer of the shares to
the purchasers and it is intended that settlement of the
transaction will occur on June 5.

BPI has agreed with Credit Suisse that, in relation to any RCS
shares purchased by it in the transaction, it will not carry
out, either directly or indirectly, any offer, sale, transfer or
other disposal of any such shares, including by issuance of
securities convertible into or exchangeable for shares or any
derivative instruments which may transfer any of the economic
consequences of its ownership of shares, and not to publicly
announce the intention to carry out any such action.

This undertaking shall remain in effect until 90 days after the
Closing Date. This undertaking shall not apply to sales of
shares that are not effected on a regulated securities exchange
provided that the purchasers of any such shares agree to be
bound by a lock-up undertaking of the same duration and having
substantially the same terms.

                          BPI Indemnity

This placement of RCS shares pledged in favor of BPI is subject
to certain legal risks, mainly related to the possibility that
injunctions or similar precautionary legal actions -- iniziative
legali di natura cautelare -- may be brought in Italy seeking to
suspend or block the sale, as well as to the possibility that,
in case insolvency proceedings are commenced against the Magiste
Group, actions may be brought seeking to revoke or contest the
validity of the sale of the shares.

BPI has irrevocably agreed, for the benefit of institutional
investors to whom RCS shares will be allotted in this placement,
both in the Placement Agreement entered into with Credit Suisse
-- governed by Italian law -- and in a separate Deed Poll       
-- governed by English law -- that it will undertake the
obligations summarized below, which shall bind BPI as against
such third parties:

   -- to indemnify and hold harmless each of the purchasers
      against any damages, losses, costs, liabilities and
      expenses incurred by them in connection with any action,
      lawsuit, investigation or proceeding aimed the restitution
      of the shares or their economic value, brought by any
      claimant, challenging the validity or the effectiveness of
      the pledge or the sale or, in general, the regularity, the
      validity, the legitimacy or the correctness of the
      placement, or any other action taken by the BPI in
      relation to the RCS ordinary shares.

   -- to promptly notify any indemnified party in the event that
      BPI becomes aware of the intention of any claimant to
      bring any action or proceeding affecting the rights of
      indemnified parties; and

   -- to assume the defense of any proceeding against any
      indemnified party and/or to substitute itself for any
      indemnified party, and to place on deposit or in escrow an
      amount of funds equal to the overall amount being claimed
      by the claimant party in such proceeding until such time
      as the relevant proceeding is finally adjudicated, to the
      extent such deposit is necessary in order to effect such
      substitution.

                         Use of Proceeds

Banca Popolare Italiana intends to use the proceeds of this sale
of RCS ordinary shares for the sole and exclusive purpose of
satisfying its credit against the Magiste Group and up to the
relevant amount thereof.  The remaining part of proceeds of the
sale, if any, will be made available to the pledgor companies.

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                        *     *     *

As reported in the TCR-Europe on May 25, Banca Popolare Italiana
received detailed information from Magiste regarding the real
estate company's financial situation, so it can decide whether
to sign a deed of arrangement with the real estate group over
the latter's EUR700 million debt.  BPI is a major creditor of
Magiste.  

If BPI responds positively, the parties could commence talks
over a possible repayment deal, which would help Magiste avoid
going into bankruptcy.  BPI previously rejected a debt repayment
proposal by Magiste.  A deed of arrangement, however, might not
reverse Magiste's misfortunes if the prosecutors in Rome decide
to launch bankruptcy proceedings against the real estate group.  
The magistrates are chasing Magiste over EUR95 million in unpaid
taxes.  The prosecutors believe Magiste has around EUR200
million in financial deficit.

BPI is eyeing to sell some of Magiste's 109 million shares in
RCS MediaGroup S.p.A., which served as a guarantee for a bank
loan.

As reported in the TCR-Europe on April 3, Fitch Ratings
downgraded Banca Popolare Italiana's Issuer Default and Short-
term ratings to BBB from BBB+ and F3 from F2 respectively.  Its
Individual and Support rating are affirmed at C and 3
respectively.  Its senior debt and trust preferred stock are
also downgraded to BBB and BB+ respectively from BBB+ and BBB-.  
The Issuer Default, Short-term and Individual ratings are
removed from Rating Watch Negative.  A Stable Outlook is
assigned for the Issuer Default rating.


BANCA POPOLARE: Probes Offers for Banca Bipielle & Area Life
------------------------------------------------------------
The Board of Directors of Banca Popolare Italiana Soc. coop. has
examined the binding purchase offers received from the selected
counterparts for Banca Bipielle.Net, the group's multi-channel
bank, and Area Life, an insurance company under Irish law.

In light of its analysis of the economic and contractual aspects
of the offers received, the Board of Directors has decided to
continue solely with SO.PA.F the negotiations for transfer of
Bipielle.Net and Area Life, authorizing the Chief Executive
Officer to negotiate and coordinate finalization of the offer.

The group has taken advice on the transaction from KPMG
Corporate Finance and Clifford Chance.

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                        *     *     *

As reported in the TCR-Europe on April 3, Fitch Ratings
downgraded Banca Popolare Italiana's Issuer Default and Short-
term ratings to BBB from BBB+ and F3 from F2 respectively.  Its
Individual and Support rating are affirmed at C and 3
respectively.  Its senior debt and trust preferred stock are
also downgraded to BBB and BB+ respectively from BBB+ and BBB-.  
The Issuer Default, Short-term and Individual ratings are
removed from Rating Watch Negative.  A Stable Outlook is
assigned for the Issuer Default rating.


MAGISTE SPA: Popolare Italiana Enforces Pledges on RCS Shares
-------------------------------------------------------------
Banca Popolare Italiana Soc. Coop. p.a. has appointed Credit
Suisse Securities (Europe) Limited as Sole Bookrunner in
connection with the placement of 108,782,870 ordinary shares of
RCS MediaGroup S.p.A., equivalent to approximately 14.847% of
the ordinary share capital of RCS, that have been pledged to BPI
by Magiste International S.A. and Garlsson Real Estate S.A. in
order to secure certain financing previously provided by BPI to
the "pledgors."

BPI's decision to enforce these pledges through the sale of the
RCS shares, which was authorized by BPI's board of directors on
March 23, 2006, has been notified to Magiste and Garlsson.

The RCS shares are being sold by BPI, through Credit Suisse, in
its capacity as pledgee and creditor of Magiste and Garlsson.  
Magiste and Garlsson pledged the shares in favor of BPI in July
and August 2005, respectively, in order to secure financing
provided by BPI in a total principal amount of approximately
EUR830 million which has not been repaid.

Credit Suisse will place the shares by way of an accelerated
bookbuilding transaction directed solely to a limited number of
Italian qualified investors and international institutional
investors, but excluding U.S. persons.  

BPI intends to participate in the placement, upon the same terms
and conditions offered to other investors, as a potential
purchaser of up to the total number of shares being offered in
the placement.

In accordance with the market practice for accelerated book
building procedures, the shares will be placed at the same price
to all the purchasers.

At the close of the placement, Credit Suisse will determine the
price of the shares placed, having regard to the quality and
quality of purchase offers received from qualified investors.  

Credit Suisse will thereafter select the investors to whom
shares will be allotted and will determine the quantity of
shares to be allotted to each of them in accordance with best
international market practice for accelerated bookbuilding
transactions, with the goal of avoiding discrimination and
maximizing the proceeds of the sale.

Italian Law thereof will govern the transfer of the shares to
the purchasers and it is intended that settlement of the
transaction will occur on June 5.

BPI has agreed with Credit Suisse that, in relation to any RCS
shares purchased by it in the transaction, it will not carry
out, either directly or indirectly, any offer, sale, transfer or
other disposal of any such shares, including by issuance of
securities convertible into or exchangeable for shares or any
derivative instruments which may transfer any of the economic
consequences of its ownership of shares, and not to publicly
announce the intention to carry out any such action. This
undertaking shall remain in effect until 90 days after the
Closing Date. This undertaking shall not apply to sales of
shares that are not effected on a regulated securities exchange
provided that the purchasers of any such shares agree to be
bound by a lock-up undertaking of the same duration and having
substantially the same terms.

                        BPI Indemnity

This placement of RCS shares pledged in favor of BPI is subject
to certain legal risks, mainly related to the possibility that
injunctions or similar precautionary legal actions -- iniziative
legali di natura cautelare -- may be brought in Italy seeking to
suspend or block the sale, as well as to the possibility that,
in case insolvency proceedings are commenced against the Magiste
Group, actions may be brought seeking to revoke or contest the
validity of the sale of the shares.

BPI has irrevocably agreed, for the benefit of institutional
investors to whom RCS shares will be allotted in this placement,
both in the Placement Agreement entered into with Credit Suisse
-- governed by Italian law -- and in a separate Deed Poll       
-- governed by English law -- that it will undertake the
obligations summarized below, which shall bind BPI as against
such third parties:

   -- to indemnify and hold harmless each of the purchasers
      against any damages, losses, costs, liabilities and
      expenses incurred by them in connection with any action,
      lawsuit, investigation or proceeding aimed the restitution
      of the shares or their economic value, brought by any
      claimant, challenging the validity or the effectiveness of
      the pledge or the sale or, in general, the regularity, the
      validity, the legitimacy or the correctness of the
      placement, or any other action taken by the BPI in
      relation to the RCS ordinary shares.

   -- to promptly notify any indemnified party in the event that
      BPI becomes aware of the intention of any claimant to
      bring any action or proceeding affecting the rights of
      indemnified parties; and

   -- to assume the defense of any proceeding against any
      indemnified party and/or to substitute itself for any
      indemnified party, and to place on deposit or in escrow an
      amount of funds equal to the overall amount being claimed
      by the claimant party in such proceeding until such time
      as the relevant proceeding is finally adjudicated, to the
      extent such deposit is necessary in order to effect such
      substitution.

                           Use of Proceeds

Banca Popolare Italiana intends to use the proceeds of this sale
of RCS ordinary shares for the sole and exclusive purpose of
satisfying its credit against the Magiste Group and up to the
relevant amount thereof.  The remaining part of proceeds of the
sale, if any, will be made available to the pledgor companies.

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

Headquartered in Rome, Italy, Magiste S.p.A. --
http://www.magiste.re.it/-- is real estate group owning 15%  
stake in RCS MediaGroup S.p.A.  The group pledged the stake as
collateral for a EUR700 million loan from Banca Popolare
Italiana S.p.A.  Magiste's inability to repay the loan forced it
to present a debt arrangement proposal to Popolare Italiana.  
Published reports said that if Popolare Italiana's rejects the
proposal, Magiste might succumb to bankruptcy.

Prosecutors in Rome are also chasing Magiste over EUR95 million
in unpaid taxes.  The magistrates are eyeing to begin bankruptcy
proceedings against the Company as they believe Magiste has around
EUR200 million in financial deficit, Il Sole reports.  


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


AKVA PARK: Mangistau Court Opens Bankruptcy Proceedings
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region commenced bankruptcy proceedings against LLP Water Park
Akva Park Zolotye Gorki on April 11.

The Specialized Inter-Regional Economic Court of Mangistau
Region can be reached at:

         Micro District 27
         Aktau, Kazakhstan
         Tel: 8 (3292) 41-22-37


ALTAY TUR: Creditors Must File Claims by June 13
------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Altay Tur Company insolvent on March 21.

Creditors have until June 13 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region   
         Office 206
         Myzy Str. 2/1
         Ust-Kamenogorsk, East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-34-77
         Fax: 8 (3232) 24-92-10


KVINTES LTD: Creditors Must File Claims by June 13
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Kvintes Ltd. Company insolvent.

Creditors have until June 13 to submit written proofs of claim
at:         
      
         The Specialized Inter-Regional
         Economic Court of Karaganda Region
         Jambyl Str. 9
         Karaganda
         Karaganda Region
         Kazakhstan


MURA: Proof of Claim Deadline Slated for June 13
------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Mura insolvent on March 16.  Bankruptcy
proceedings were introduced at the company.

Creditors have until June 13 to submit written proofs of claim
at:

         LLP Mura
         Lenina Ave. 40-41
         Ust-Kamenogorsk, East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 47-61-94


REAGOLD: Proof of Claim Deadline Slated for June 13
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Reagold insolvent.  

Creditors have until June 13 to submit written proofs of claim
at:

         LLP Reagold
         Jambyl Str. 9
         Karaganda
         Karaganda Region
         Kazakhstan


SIBAN: Proof of Claim Deadline Slated for June 13   
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Siban insolvent.  Bankruptcy proceedings were
introduced at the company.  

Creditors have until June 13 to submit written proofs of claim
at:

         LLP Siban         
         Room 40
         Tarana Str. 85
         Kostanai, Kazakhstan
         Tel: 8 (234) 94-3-65
              8 (234) 54-28-39


SMITH INTERNATIONAL: Creditors' Claims Due June 13  
--------------------------------------------------
Smith International (North Sea) Limited (RNN 600900138915) has
declared insolvency.  Creditors have until June 13 to submit
written proofs of claim at:

         Smith International (North Sea) Limited
         Office 206
         Azattyk Str. 48
         Atyrau
         Atyrau Region
         Kazakhstan


TASBULAT OIL: Claims Registration Ends June 13
----------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP Tasbulat Oil Developments insolvent on
March 17.  Subsequently, bankruptcy proceedings were introduced
at the company.

Creditors have until June 13 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of Mangistau Region
         Aktau, Kazakhstan
         Tel: 8 (3292) 41-00-42
         Fax: 8 (3292) 41-00-42


TUTATIS: Claims Registration Ends June 13
-----------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Tutatis insolvent on March 27 without
introduction of the bankruptcy proceedings.

Creditors have until June 13 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Myzy Str. 2/1
         Ust-Kamenogorsk, East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-06-50


VOSTOK KOMPUSERVICE: Claims Registration Ends June 13  
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Vostok Kompuservice insolvent on March 23.

Creditors have until June 13 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Office 206
         Myzy Str. 2/1   
         Ust-Kamenogorsk, East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 24-34-77
         Fax: 8 (3232) 24-92-10


===================
K Y R G Y Z S T A N
===================


ENERGETICHESKAYA: Bishkek Court Opens Bankruptcy Proceedings
------------------------------------------------------------
The Inter-District Court of Bishkek for Economic Issues declared
Energy Consulting Group Energeticheskaya Konsaltingovaya Gruppa
(Case No. ED-154/06 mbs8) insolvent on March 9.  Subsequently,
bankruptcy proceedings were introduced at the company.

Mr. Almazbek Orokbayev has been appointed temporary insolvency
manager.  He can be reached at (+996 312) 21-67-25.

The meeting of the creditors will take place at 3:00 p.m. on
June 6 at:

         The Inter-District Court of Bishkek for Economic Issues
         Room 108
         Moskovskaya Str. 151
         Bishkek, Kyrgyzstan

Creditors must submit their proofs of claim and register within
seven days before the meeting with the temporary insolvency
manager.  Proxies must have authorization to vote.


TARIM: Creditors' Meeting Slated for June 7
-------------------------------------------
The Inter-District Court of Bishkek for Economic Issues declared
Joint Venture Tarim (Case No. 003-438/m04c5) insolvent on
Oct. 4.  Bankruptcy proceedings were introduced at the company.

Mr. Esenbek Alymkulov has been appointed temporary insolvency
manager.  He can be reached at (+996 312) 21-74-36, 67-15-77.

The meeting of the creditors will take place at 10:00 a.m, on
June 7 at:

         The Inter-District Court of Bishkek for Economic Issues
         Room 109
         Moskovskaya Str. 151
         Bishkek, Kyrgyzstan

Creditors must submit their proofs of claim and register within
seven days before the meeting with the temporary insolvency
manager.  Proxies must have authorization to vote.


===================
L U X E M B O U R G
===================


GSC EUROPEAN: Moody's Rates EUR13.5 Million Class E Notes at Ba3
----------------------------------------------------------------
Moody's has assigned final credit ratings to the notes issued by
GSC European CDO III S.A., a Luxembourg special purpose company:

   -- Aaa to the EUR219,000,000 Class A1 Floating Rate Notes
      due 2022;

   -- Aaa to the EUR25,000,000 Class A1-D Delayed Draw Floating
      Rate Notes due 2022;

   -- Aaa to the EUR15,000,000 Class A2 Zero Coupon Accreting
      Notes due 2022;

   -- Aaa to the EUR25,000,000 Class A3 Revolving Floating Rate
      Notes due 2022;

   -- Aa2 to the EUR25,000,000 Class B Floating Rate Notes due
      2022;

   -- A3 to the EUR31,000,000 Class C Floating Rate Notes due
      2022;

   -- Baa3 to the EUR23,500,000 Class D1 Floating Rate Notes due       
      2022;

   -- Baa3 to the EUR1,000,000 Class D2 Floating Rate Notes due
      2022; and

   -- Ba3 to the EUR13,500,000 Class E Floating Rate Notes due
      2022.

EUR42,000,000 Class Subordinated Notes were also issued but are
not rated by Moody's.

The ratings address the expected loss posed to investors by the
legal final maturity.

These ratings are based upon:

   -- An assessment of the eligibility criteria and portfolio
      guidelines applicable to the future additions to the
      portfolio;

   -- The protection against losses through the subordination of
      the more junior classes of notes to the more senior
      classes of notes;

   -- The currency swap transactions, which insulate GSC
      European CDO III S.A. from the volatility of the foreign
      currency exchange rates, for Non-euro denominated
      obligations;

   -- The expertise of GSCP (NJ), L.P. as loan manager; and

   -- The legal and structural integrity of the issue.

Moody's Investors Service has also assigned ratings to these
combination notes:

   -- Aaa to the US$20,000,000 Class T Combination Notes due
      2022;

   -- Aaa to the US$5,000,000 Class U Combination Rate Notes due
      2022;

   -- Aaa to the EUR15,000,000 Class V Combination Notes due
      2022;

   -- Baa2 to the EUR10,000,000 Class W Combination Notes due
      2022; and

   -- Baa1 to the EUR6,000,000 Class X Combination Notes due
      2022.

The ratings of the Class T and U Combination Notes address the
expected loss posed to investors by the legal final maturity.  
These ratings do not rely on any flow from their Subordinated
Notes components.

The ratings of the Class V and W Combination Notes address the
expected loss posed to investors by the legal final maturity as
a proportion of the Rated Balance, where the Rated Balance is
equal, at any time, to the principal amount of the Combination
Notes on the closing date minus the aggregate of all payments
made from the closing date to such date, either through interest
or principal payments.

The rating of the Class X Combination Notes addresses the
expected loss posed to investors by the legal final maturity as
a proportion of the Rated Balance, where the Rated Balance is
equal, at any time, to the principal amount of the Combination
Notes on the closing date plus a Rated Coupon of 0.25% per annum
minus the aggregate of all payments made from the closing date
to such date, either through interest or principal payments.

This transaction is a high yield collateralized loan obligation
related to an EUR387,500,000 portfolio of mostly European senior
and mezzanine loans, with a predominance of senior secured
loans.  GSCP (NJ), L.P, dynamically manages this portfolio.  

This portfolio was partially acquired at closing and will be
partially acquired during the 12 month ramp-up period in
compliance with portfolio guidelines, which include, among other
tests, a diversity score test, a weighted average rating factor
test and a weighted average spread test.  Thereafter, the
portfolio of loans will be actively managed and the investment
adviser will have the option, on behalf of the issuer to buy or
sell loans.  Any addition or removal of loans will be subject to
a number of portfolio criteria.  


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


KONINKLIJKE AHOLD: Albert Heijn to Buy 23 Stores From Laurus
------------------------------------------------------------
Albert Heijn, the operating company of Koninklijke Ahold, has
entered into an asset purchase agreement to acquire 23 Konmar
stores from Laurus Nederland B.V., of which three are franchise
stores.

Ahold's consolidated subsidiary Schuitema will acquire another
six Konmar stores, including one franchise store.

Albert Heijn and Schuitema will pay Laurus a combined price of
EUR110 million in cash for the stores, which will be renovated
and converted into Albert Heijn and C1000 stores after the
transaction is finalized.

Albert Heijn and Schuitema will assume store-related inventory,
certain receivables and existing lease agreements. The inventory
and certain receivables are not included in the purchase price.

The sale is subject to certain conditions, including works
council, landlord and Laurus shareholder approval. Konmar store
employees involved will transfer to the new owners.The final
transfer of the stores to Albert Heijn and Schuitema is subject
to regulatory approval.

The transaction, expected to close in the fourth quarter of the
year, is an opportunity for Albert Heijn and Schuitema to
acquire large stores in prominent locations in the Netherlands.
The acquisition is in line with the strategy of growing
businesses in key markets through selective acquisitions

                        About Ahold

Headquartered in Amsterdam, Koninklijke Ahold N.V. --
http://www.ahold.com/-- retails food through supermarkets,  
hypermarkets and discount stores in North and South America,
Europe and Asia.  The company's chain stores includes Stop &
Shop, Giant, TOPS, Albert Heijn and Bompreco.  Ahold also
supplies food to restaurants, hotels, healthcare institutions,
government facilities, universities, stadiums, and caterers.

                        *     *     *

Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.


PYATEROCHKA HOLDING: Authorizes US$800 Million Credit Facility
--------------------------------------------------------------
Pyaterochka Holding N.V. has awarded a mandate to arrange a
US$800 million Syndicated Term Loan Credit Facility through a
group of international banks:

   -- ABN AMRO Bank N.V.;

   -- HSBC Bank plc;

   -- Raiffeisen Zentralbank Osterreich AG, and ZAO
      Raiffeisenbank Austria; and

   -- WestLB AG, London Branch.

The Facility will be used to finance the merger between
Pyaterochka and Perekrestok Holdings Limited.

The Facility, which is fully underwritten by the Initial
Mandated Lead Arrangers, consists of:

   -- a US$300 million three-year Tranche for the acquisition;

   -- a US$150 million three-year Tranche to refinance existing
      debt both with amortising repayments; and

   -- a US$350 million three-year Tranche with a bullet
      repayment to finance the future development of the
      combined group.

Pyaterochka is currently working with the Initial Mandated Lead
Arrangers to prepare a syndication, which will be launched in
the coming weeks.

Headquartered in the Netherlands, Pyaterochka Holding N.V. --
http://www.e5.ru/english/-- is a leading Russian food retailer  
operating a large store network largely covering the Moscow
region and St. Petersburg but also with a good presence in other
Russian regions through its franchise operations.  The company
has recently acquired two of its successful regional franchise
operations -- in Yekaterinburg and Chelyabinsk.  Pyaterochka's
2004 net revenues were US$1.1 billion.  The company has reported
unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on April 18, Moody's Investors Service
placed the Ba3 corporate family rating and the Aa3.ru national
scale rating of Pyaterochka Holding N.V. under review for
possible downgrade.  

The review has been prompted by the company's announcement that
it has agreed to merge with Perekriostok Holdings Limited,
Russia's leading supermarket chain.  


PYATEROCHKA HOLDING: Consolidated Financials Out by September
-------------------------------------------------------------
Pyaterochka Holding N.V. and Perekrestok Holdings Limited plan
to publish their first consolidated group financial results for
the first quarter of 2006 in September.

The merger of Pyaterochka and Perekrestok closed on May 18.  
Shareholders at the Extraordinary General Meeting approved the
new members of the Management and Supervisory Boards on May 12,
including the appointment of Lev Khasis as Group Chief Executive
Officer and Vitali Podolski as Group Chief Financial Officer.

The company has already begun work on integration plans, and
management is confident that results of the joint work of both
operating companies will be visible as early as the full year
2006 results.

Pyaterochka Holding N.V. will publish an update on second
quarter 2006 trading, including net consolidated sales, store
openings, and LFL sales data for both operating companies at the
end of the quarter.

Combined, consolidated results for Pyaterochka Holding N.V.,
including both the Pyaterochka and Perekrestok businesses, for
1H 2006 will be released in September 2006.

There are certain differences between accounting policies
adopted by Pyaterochka Holding N.V. and Perekrestok Holding Ltd,
which do not significantly affect the presentation of the
financial statements.

Headquartered in the Netherlands, Pyaterochka Holding N.V. --
http://www.e5.ru/english/-- is a leading Russian food retailer  
operating a large store network largely covering the Moscow
region and St. Petersburg but also with a good presence in other
Russian regions through its franchise operations.  The company
has recently acquired two of its successful regional franchise
operations -- in Yekaterinburg and Chelyabinsk.  Pyaterochka's
2004 net revenues were US$1.1 billion.  The company has reported
unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on April 18, Moody's Investors Service
placed the Ba3 corporate family rating and the Aa3.ru national
scale rating of Pyaterochka Holding N.V. under review for
possible downgrade.  

The review has been prompted by the company's announcement that
it has agreed to merge with Perekriostok Holdings Limited,
Russia's leading supermarket chain.  

The review has been prompted by the company's announcement that
it has agreed to merge with Perekriostok Holdings Limited,
Russia's leading supermarket chain.  

The transaction, which will be completed in mid-2006, is to
occur in two stages:

   a) an acquisition of Perekriostok by Pyaterochka for US$1.36
      billion to be paid by:

         -- US$300 million in cash (to be financed by bank
            borrowings); and

         -- an issue of approximately 15.8 million new shares;
            and

   b) Alfa Group, which currently controls Perekriostok, will
      then purchase additional stakes in Pyaterochka from the
      company's major shareholders for a total of US$1,178
      million in cash and become the majority shareholder (with
      a 54.0%) in the newly combined entity.


VNU N.V.: Inks Termination Protection Agreement with CFO
--------------------------------------------------------
VNU N.V. (PINK SHEETS:VNUVY) (Amsterdam:VNU) entered into a
termination protection agreement with Rob Ruijter, its chief
financial officer, as provided for in the Merger Protocol and as
previously contemplated and disclosed in the March 31, 2006
Offer Memorandum of Valcon Acquisition B.V.

The agreement is substantially the same as the termination
protection agreements currently in effect for other executive
officers of VNU.

The agreement essentially provides that in the event Mr.
Ruijter's employment is terminated by VNU without cause or by
Mr. Ruijter for good reason within two years following a change
in control -- the acquisition of the VNU shares by Valcon
Acquisition B.V. qualifies as such change of control -- Mr.
Ruijter will be entitled to receive two times the sum of his
annual base salary and average annual bonus for the previous two
years as well as pro-rata payouts of his annual and long-term
incentive awards.

Headquartered in Haarlem, Netherlands, VNU N.V. --
http://www.vnu.com/-- operates publishing businesses and offers  
marketing and media information.  The Company publishes and
distributes telephone directories, children's books and
periodicals, and business information periodicals.  VNU also
offers television and Internet usage data and advertising
expenditure analysis.

                        *     *     *

As reported in TCR-Europe on May 30, Moody's Investors Service
said that it had downgraded VNU N.V.'S Corporate Family Rating
to B1 (from Ba1).

The company's senior unsecured debt instruments were also
downgraded to B1 (from Ba1) following today's clarification by
Valcon Acquisitions B.V. as to which of VNU's long-term bonds it
does not want to retain as part of the new VNU group's future
capital structure and for which Valcon Acquisitions has
therefore launched a tender offer.

Also in May, Standard & Poor's Ratings Services lowered its
long- and short-term corporate credit ratings on Dutch media
group VNU N.V.  to 'B+/B' from 'BBB-/A-3'.  


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


KAZAKHTELECOM: Fitch Rates Short-Term Foreign Currency at B
-----------------------------------------------------------
Fitch Ratings changed JSC Kazakhtelecom's outlook to positive
from stable.  Its foreign and local currency Issuer Default
Ratings are affirmed at BB.  The Short-term foreign currency
rating is also affirmed at B.

The Positive Outlook reflects Kaztel's sustained profitable
growth, continued limited competition thanks to slow market
deregulation and its entry into the mobile business in
Kazakhstan, using GSM technology, via its acquisition of Mobile
Telecom Services.

Fitch's TMT team Associate Director Frederic Beaumelou
disclosed, "Its recent acquisitions will raise the adjusted net
debt to EBITDA up to more than 1.4x and Kaztel will have to
finance the build-out of a mobile network."

"Nevertheless, the highly profitable mobile telecommunications
sector still provides scope for significant growth as
penetration stands at only 35% versus 64% in Ukraine and 87% in
Russia," he added.

Since 2001, revenues of the fixed-line incumbent operator have
doubled to KZT99.6 billion while EBITDA margin remained broadly
stable to almost 40%.  Although Kaztel incurred additional debt
to finance its ambitious capital spending program, the sharp
increase in profitability lowered net adjusted leverage to 0.75x
at end-2005 from 1.2x in 2002.

Its near-monopoly on fixed-line infrastructure and the limited
deregulation, enabled the incumbent operator to reap the
benefits from rising traffic volumes, while maintaining very
high, albeit slightly decreasing, tariffs.  Since 2006,
conditions governing domestic operators' connections have been
relaxed to allow more competition.

However, the lack of alternative infrastructure still protects
most of Kaztel's revenue sources.  Reflecting Kaztel's position
of a dominant fixed-line provider, it's pricing on the long
distance and wholesale segments counterbalances the uneconomical
provision of cheap telephony access to individuals and in rural
areas.  

Given Kaztel's fulfillment of these social considerations, Fitch
expects that market deregulation and tariff reduction should
remain limited and should be offset by ongoing traffic growth
and new connections.

Kaztel is in the process of acquiring additional controlling
shares in two of its affiliates, Altel, a niche DCMA provider
and Nursat, a provider of IP-based services and the entire share
capital of MTS, all for US$220 million.

Kaztel obtained a legal opinion stipulating the provision of GSM
services under the mobile license.  In preparation for GSM
network build-out, Kaztel may consider selling its 49% stake in
GSM Kazakhstan, the leading mobile operator.

The trigger for an upgrade would be evidence that the GSM
network deployment does not result in the net financial leverage
to materially diverge from the pro-forma post acquisitions level
of 1.5x.  The stabilization of leverage of this level could be
achieved through continuing profitable growth from its fixed-
line operations and disposal of its 49% stake in GSM Kazakhstan.


MAKEY: Court Taps V. Vinogradov to Manage Insolvency Assets
-----------------------------------------------------------
The Arbitration Court of Moscow Region appointed Mr. V.
Vinogradov as insolvency manager for CJSC Oil Company Makey
(Case No. A40-67674/05-44-93 B).  He can be reached at:

         V. Vinogradov
         Post User Box 96
         109044 Moscow Region, Russia
         2nd Dubrovskaya Str. 1

The Court has commenced bankruptcy proceedings against the
company after finding it insolvent.

The Debtor can be reached at:

         CJSC Oil Company Makey
         Building 1
         Mira Pr. 13
         129090, Moscow Region, Russia


MGACHI-COAL: Court Opens Bankruptcy Process
-------------------------------------------
The Arbitration Court of Sakhalin Region has commenced
bankruptcy supervision procedure on LLC Mgachi-Coal.  The case
is docketed under Case No. A59-17-06 S4.  

The Temporary Insolvency Manager is:

         V. Lysenko
         Office 6
         Mira Pr. 5
         693012 Yuzho-Sakhalinsk, Russia

The Debtor can be reached at:

         LLC Mgachi-Coal
         Sovetskaya Str. 58
         Mgachi
         Aleksadrovsk
         694431 Sakhalin Region, Russia


MICHURINETS: Chelyabinsk Court Begins Bankruptcy Process
--------------------------------------------------------
The Arbitration Court of Chelyabinsk Region has commenced
bankruptcy proceedings against OJSC Michurinets (TIN
74207007066) after finding it insolvent.  The case is docketed
under Case No. A76-17858/05-55/92.

The Insolvency Manager is:

         Y. Moskalenko
         Post User Box 99
         620131 Ekaterinburg Region, Russia

The Debtor can be reached at:

         OJSC Michurinets
         Michurinskiy
         Kartalinskiy Region
         Chelyabinsk Region, Russia


OZONE: Court Appoints Mr. V. Devyatkin as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Voronezh Region appointed Mr. V.
Devyatkin as insolvency manager for LLC Ozone.  He can be
reached at:

         V. Devyatkin
         Kropotkina Str. 10.
         394030 Voronezh Region, Russia

The Court has commenced bankruptcy proceedings against the
company after finding it insolvent.  The case is docketed under
Case No. A14-3168/02/149/16b.

The Debtor can be reached at:

         LLC Ozone
         Kutsygina Str. 21
         Voronezh Region, Russia


PYATEROCHKA HOLDING: Authorizes US$800 Million Credit Facility
--------------------------------------------------------------
Pyaterochka Holding N.V. has awarded a mandate to arrange a
US$800 million Syndicated Term Loan Credit Facility through a
group of international banks:

   -- ABN AMRO Bank N.V.;

   -- HSBC Bank plc;

   -- Raiffeisen Zentralbank Osterreich AG, and ZAO
      Raiffeisenbank Austria; and

   -- WestLB AG, London Branch.

The Facility will be used to finance the merger between
Pyaterochka and Perekrestok Holdings Limited.

The Facility, which is fully underwritten by the Initial
Mandated Lead Arrangers, consists of:

   -- a US$300 million three-year Tranche for the acquisition;

   -- a US$150 million three-year Tranche to refinance existing
      debt both with amortising repayments; and

   -- a US$350 million three-year Tranche with a bullet
      repayment to finance the future development of the
      combined group.

Pyaterochka is currently working with the Initial Mandated Lead
Arrangers to prepare a syndication, which will be launched in
the coming weeks.

Headquartered in the Netherlands, Pyaterochka Holding N.V. --
http://www.e5.ru/english/-- is a leading Russian food retailer  
operating a large store network largely covering the Moscow
region and St. Petersburg but also with a good presence in other
Russian regions through its franchise operations.  The company
has recently acquired two of its successful regional franchise
operations -- in Yekaterinburg and Chelyabinsk.  Pyaterochka's
2004 net revenues were US$1.1 billion.  The company has reported
unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on April 18, Moody's Investors Service
placed the Ba3 corporate family rating and the Aa3.ru national
scale rating of Pyaterochka Holding N.V. under review for
possible downgrade.  

The review has been prompted by the company's announcement that
it has agreed to merge with Perekriostok Holdings Limited,
Russia's leading supermarket chain.  


PYATEROCHKA HOLDING: Consolidated Financials Out by September
-------------------------------------------------------------
Pyaterochka Holding N.V. and Perekrestok Holdings Limited plan
to publish their first consolidated group financial results for
the first quarter of 2006 in September.

The merger of Pyaterochka and Perekrestok closed on May 18.  
Shareholders at the Extraordinary General Meeting approved the
new members of the Management and Supervisory Boards on May 12,
including the appointment of Lev Khasis as Group Chief Executive
Officer and Vitali Podolski as Group Chief Financial Officer.

The company has already begun work on integration plans, and
management is confident that results of the joint work of both
operating companies will be visible as early as the full year
2006 results.

Pyaterochka Holding N.V. will publish an update on second
quarter 2006 trading, including net consolidated sales, store
openings, and LFL sales data for both operating companies at the
end of the quarter.

Combined, consolidated results for Pyaterochka Holding N.V.,
including both the Pyaterochka and Perekrestok businesses, for
1H 2006 will be released in September 2006.

There are certain differences between accounting policies
adopted by Pyaterochka Holding N.V. and Perekrestok Holding Ltd,
which do not significantly affect the presentation of the
financial statements.

Headquartered in the Netherlands, Pyaterochka Holding N.V. --
http://www.e5.ru/english/-- is a leading Russian food retailer  
operating a large store network largely covering the Moscow
region and St. Petersburg but also with a good presence in other
Russian regions through its franchise operations.  The company
has recently acquired two of its successful regional franchise
operations -- in Yekaterinburg and Chelyabinsk.  Pyaterochka's
2004 net revenues were US$1.1 billion.  The company has reported
unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on April 18, Moody's Investors Service
placed the Ba3 corporate family rating and the Aa3.ru national
scale rating of Pyaterochka Holding N.V. under review for
possible downgrade.  

The review has been prompted by the company's announcement that
it has agreed to merge with Perekriostok Holdings Limited,
Russia's leading supermarket chain.  

The review has been prompted by the company's announcement that
it has agreed to merge with Perekriostok Holdings Limited,
Russia's leading supermarket chain.  

The transaction, which will be completed in mid-2006, is to
occur in two stages:

   a) an acquisition of Perekriostok by Pyaterochka for US$1.36
      billion to be paid by:

         -- US$300 million in cash (to be financed by bank
            borrowings); and

         -- an issue of approximately 15.8 million new shares;
            and

   b) Alfa Group, which currently controls Perekriostok, will
      then purchase additional stakes in Pyaterochka from the
      company's major shareholders for a total of US$1,178
      million in cash and become the majority shareholder (with
      a 54.0%) in the newly combined entity.


REINFORCED-CONCRETE 4: Court Names E. Kotkov Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
E. Kotkov as insolvency manager for CJSC Factory of Reinforced-
Concrete Goods 4 (Case no. A43-23108/2005 33-348).  He can be
reached at:

         E. Kotkov
         Post User Box 76
         603159 Nizhniy Novgorod Region, Russia

The Court has commenced bankruptcy proceedings against the
company after finding it insolvent.

The Debtor can be reached at:

         CJSC Factory of Reinforced-Concrete Goods 4
         Vostochnaya Prom Zona
         Dzerzhinsk
         Nizhniy Novgorod Region, Russia


SLOBODSKOYE GRAIN: Court Names V. Alalykin Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Kirov Region appointed Mr. V. Alalykin
as insolvency manager for OJSC Slobodskoye Grain Receiving
Enterprise (Case No. A28-255/05-222/24).  He can be reached at:

         V. Alalykin
         Griboedova Str. 1a
         Kirov Region, Russia

The Court has commenced bankruptcy proceedings against the
company after finding it insolvent.

The Debtor can be reached at:

         OJSC Slobodskoye Grain Receiving Enterprise
         Sovetskaya Str. 119
         Slobodskoy
         Kirov Region, Russia


OAO GAZPROM: Inks Construction Deal for Bryansk Gas Project
-----------------------------------------------------------
Alexey Miller, Chairman of Gazprom's Management Committee and
Nikolai Denin, Governor of the Bryansk Region have signed a
synchronized construction schedule for Regional gasification
facilities.

In accordance with the schedule, the Bryansk Region will see a
complex of activities aimed at preparing consumers for gas
supply by Gazprom pipelines currently under sweeping
construction as stipulated by the gasification program for RF
regions over 2005 to 2007.

"The gasification program implementation is one of the most
awaited events in many Russian regions," Mr. Miller said.  

"In this regard, it is important not to disappoint the people's
expectations.  Regional authorities should do their best to
ensure that consumers are ready to receive gas immediately after
Gazprom completes the construction of a local gas pipeline.  
This also refers to the Bryansk Region where our Company plans
to lay seven local pipelines in this year alone."

"We are ready to ensure the preparation of the Bryansk Region's
consumers for gas supply.  In accordance with the document
signed, between 2006 and 2007 the Region will finance the
construction of more than 60 km of in-settlement gas pipelines,
conversion of 29 boiler plants to gas and gasification of over
1,500 households with more than RUB120 mln to be channeled for
these purposes," stressed Nikolai Denin.

The synchronized construction schedule for gasification
facilities identifies an activity list and implementation dates
for gas infrastructure between 2006 and 2007, and is aimed at
providing gas connections to consumers immediately after
pipeline construction.  To connect consumers, regional
authorities are to construct local and household networks, build
new or convert to gas existing boiler plants, install household
gas appliances, etc.

These schedules are part of Gazprom's gasification program for
RF regions over 2005 to 2007, which is funded with RUB35
billion.  Of this amount, RUB5.2 billion was already committed
in 2005 and not less than RUB17.6 billion and RUB12.2 billion
are slated for 2006 and 2007, respectively.  Extra RUB1.1
billion will be allocated for the reconstruction and
modernization of existing gas distribution pipelines.

At present the Russia-averaged gasification rate makes up 53
percent including 60 percent in cities & towns and 34 per cent
in rural area.

Implementing the gasification program over 2005 to 2007 will
help boost gas supply to Russian regions to a 60 per cent
average by 2008 including 66 per cent in cities & towns and 42
per cent in rural area.

To achieve said targets, Gazprom will provide gas to 3,851
thousand apartments and households including 2,673 thousand in
cities and towns and 1,178 thousand in rural area.

The Program will enable Gazprom to convert to natural gas about
20 thousand new residential facilities -- hospitals,
kindergartens, schools, etc. -- over five5 thousand boiler
plants in villages & settlements and more than 500 agricultural
companies, with more than 12,000 km of pipelines to be laid and
some 11 million citizens of 53 Russian regions to be serviced.

Gazprom's investment priorities for regional gasification are
based on the following criteria:

   -- full payments for gas deliveries;

   -- repayment of gas debts;

   -- economic viability of projected gas infrastructure;

   -- customers' readiness to receive gas;

   -- actual loading of gas laterals and distribution stations;
      and

   -- assistance of RF regional authorities in promoting the use
      of compressed and liquefied natural gas as motor fuel.

Gazprom and the Bryansk Region signed an Agreement on
cooperation in May 2005.  The Bryansk Region is currently
gasified by 72.6 percent (90.2 percent in cities & towns and
39.8 per cent in rural area).  Under its 2006 gasification
program for RF regions, Gazprom intends to build sevem local gas
pipelines in the Bryansk Region.  Over 2005 Gazprom has provided
the Region with some 3 bcm of gas.

                       About the Company

Headquartered in Moscow, Russia, OAO Gazprom --
http://www.gazprom.ru/eng-- produces 94% of the country's  
natural gas, controls 25% of the world's reserves, and is also
the world's largest gas producer.  It focuses on gas
exploration, processing, transport, and marketing.

                         *     *     *

As reported in the TCR-Europe on Jan. 18, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
OAO Gazprom to 'BB+' from 'BB'.  

As reported in the TCR-Europe on Oct 27, 2005, Fitch Ratings
upgraded Gazprom International S.A. Series 1 US$1.25-billion
structured export notes due Feb. 1, 2020 (XS0197695009) to 'BBB'
from 'BBB-'.  

The upgrade follows Fitch's upgrade of OAO Gazprom's, the
world's largest gas company, Senior Unsecured local and foreign
currency ratings to 'BB+' from 'BB', and a change in Gazprom's
going concern assessment, which is now equivalent to a 'BBB'
rating compared to 'BBB-' previously.


VOSKRESENSK-SEL-STROY: S. Kiseleva Named as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Ms.
S. Kiseleva as insolvency manager for OJSC Voskresensk-Sel-Stroy
(Case no. A43-33736/2005, 24-522).  She can be reached at:

         S. Kiseleva
         Veterinarnaya Str. 2
         603022 Nizhniy Novgorod Region, Russia

The Court has commenced bankruptcy proceedings against the
company after finding it insolvent.

The Debtor can be reached at:

         OJSC Voskresensk-Sel-Stroy
         Beregovaya Str. 1.
         Kalinikha
         Voskresenskiy Region
         Nizhniy Novgorod Region, Russia


VOZROZHDENIE BANK: Moody's Revises Ratings Outlook to Positive
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on
Vozrozhdenie's Bank's B1 long-term foreign currency deposit
rating and E+ Financial Strength Rating (FSR) to positive from
stable.  

At the same time, Moody's Interfax Rating Agency has upgraded to
A1.ru from A2.ru the bank's long-term national scale credit
rating (NSR).  Moscow-based Moody's Interfax is majority-owned
by Moody's, a leading global rating agency.

According to Moody's and Moody's Interfax, the outlook change
and the NSR upgrade reflect:

   -- strengthening of the bank's franchise, particularly
      through its growing market share in the retail segment;

   -- its entrenched positions in Moscow oblast, the region
      surrounding the city of Moscow, which is one of Russia's
      most dynamic banking markets; and

   -- its improving financial fundamentals, including the
      expected increase in capitalisation.

However, in Moody's opinion, the bank's low capitalization and
its high burden of non-interest expense remain the most
important constraints on the evolution of its E+ FSR.  

The rating agency views positively the bank's plans to improve
capitalization through public offering of shares which is
planned to start in 2006 when about 10% of its equity will be
available for purchase by either Russian or non-resident
investors.  

The expected implementation of these plans is a major positive
rating driver, which has triggered the current outlook change on
the bank's E+ FSR and B1 long-term deposit rating, However,
according to Moody's, failure to raise new capital, although not
presently anticipated, would be likely to result in a revision
of the positive outlook and, potentially, also the B1 long-term
deposit rating.

Moody's notes that a possible future upgrade of V-Bank's E+ FSR
and B1 long-term deposit ratings is contingent on the bank's
ability to demonstrate a track record of sustained franchise
growth, coupled with sound financial performance, efficient cost
controls and good asset quality.

V-Bank is headquartered in Moscow, Russian Federation.  The bank
reported total assets of RUB49.1 billion (USUS$1,7 billion) and
shareholders' equity of RUB3.3 billion (USUS$114 million) under
IFRS as at Dec. 31, 2005.  The bank is now among the 25 largest
banks in Russia in terms of total assets.


ZUEVSKIY REPAIR: G. Devyatykh to Manage Insolvency Assets
---------------------------------------------------------
The Arbitration Court of Kirov Region appointed Mr. G. Devyatykh
as insolvency manager for OJSC Zuevskiy Repair and Engineering
Works (Case No. A28-43 5/05-423/20).  He can be reached at:

         G. Devyatykh
         Upita Str. 11610050
         Kirov Region, Russia
         Tel: 522-133

The Court has commenced bankruptcy proceedings against the
company after finding it insolvent.

The Debtor can be reached at:

         OJSC Zuevskiy Repair and Engineering Works
         Moskovskaya Str. 52
         Kirov Region, Russia


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


FINANS FINANSAL: Moody's Lifts Foreign Currency Rating to Ba1
-------------------------------------------------------------
Moody's Investors Service has published the results of an
examination of financial institution ratings in Eastern Europe,
Middle East and Africa region in light of the revision of its
rating methodology for assigning foreign currency country bond
ceilings.

In November 2005, Moody's published a Request for Comment,
entitled "Revised Policy with Respect to Country Ceilings".  
Based on supportive market responses Moody's decided to revise
its methodology for assigning foreign currency country bond
ceilings.

The revised methodology resulted in upgrades to the foreign
currency bond ceilings of a number of countries.  The higher
ceilings reflect Moody's view that in many countries, even if
the government were to default on its own foreign currency debt,
the probability of a foreign currency moratorium is less than
100%.  

Most of the foreign currency debt and foreign currency issuer
ratings that are now being upgraded were previously constrained
at the old foreign currency debt ceilings.  This constraint
reflected Moody's earlier view of the risk that such obligations
could be captured by a foreign currency payments moratorium in
the event the government defaulted on its own foreign currency
debt.  

Following the upgrades, a number of these ratings (those below
the new foreign currency debt ceiling of the issuer's domicile)
are no longer constrained by this risk.  Other ratings are being
upgraded to the new ceiling but remain constrained by the
moratorium risk still reflected in the revised ceilings.

The rating actions have no impact on any foreign currency
deposit ratings.  The revision to Moody's methodology applies
only to the foreign currency ceiling for bonds and notes.  
Existing foreign currency country ceilings for bank deposits are
not affected.  

Moody's foreign currency bank deposit ceilings will continue to
be more directly related to government foreign currency bond
ratings, reflecting the risk that a freeze on foreign currency
bank deposits is more likely to be imposed in the event of a
government bond default even in the absence of a generalised
foreign currency moratorium.

Below is a list of affected financial institutions in Eastern
Europe, Middle East and Africa including the rating changes
resulting from the application of the methodology.  The list
shows the rated entity, the rated class of debt, the change in
the rating, and the rating outlook.

Croatia

  (a) Croatian Bank for Reconstruction & Development (HBOR):

      -- Issuer Rating (foreign currency): Upgraded to Baa1
         from Baa3; Outlook remains unchanged at Stable;

      -- Senior Unsecured Debt Rating (foreign currency):
         upgraded to Baa1 from Baa3; Outlook remains unchanged
         at stable; and

      -- Senior Unsecured Debt Rating (foreign currency MTN):
         upgraded to Baa1 from Baa3; Outlook remains unchanged
         at stable.

  (b) Zagrebacka banka d.d.

      -- Senior Unsecured Debt Rating (foreign currency):
         upgraded to A2 from A3; Outlook remains unchanged at
         stable.

Cyprus

  (a) KommunalKredit International Bank Ltd.:

      -- Issuer Rating (foreign currency): upgraded to Aa3 from          
         A2; Outlook changed to stable from positive.

Mauritius

  (a) Mauritius Commercial Bank Limited;

      -- Issuer Rating (foreign currency): upgraded to Baa1 from
         Baa2; Outlook remains negative (NEG)

  (b) State Bank of Mauritius Ltd.;

      -- Issuer Rating (foreign currency): upgraded to Baa1 from
         Baa2; Outlook remains negative (NEG)

Turkey

  (a) Finans Finansal Kiralama A.S. (Finans Leasing):

      -- Issuer Rating (foreign currency): upgraded to Ba1 from
         Ba3; Outlook stable.  


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


DRABIVSKE REPAIR-TRANSPORT: Court Begins Bankruptcy Process
-----------------------------------------------------------
The Economic Court of Cherkassy Region commenced bankruptcy
supervision procedure on OJSC Drabivske Repair-Transport
Enterprise (code EDRPOU 03766257) on March 17.  The case is
docketed under Case No. 01/1565.

The Temporary Insolvency Manager is:

         Volodimir Bilan
         Office 101
         Lazarev Str. 6
         Cherkassy Region, Ukraine

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region, Ukraine

The Debtor can be reached at:

         OJSC Drabivske Repair-Transport Enterprise
         Zavodska Str. 2
         Drabove-Baryatinske
         Drabivskij District
         19842 Cherkassy Region, Ukraine


INAGRO: Donetsk Court Launches Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Economic Court of Donetsk Region commenced bankruptcy
supervision procedure on LLC Investing-Industrial Company Inagro
(code EDRPOU 30923259).  

The Temporary Insolvency Manager is:

         Yanina Geza
         ab 6
         Artema Str. 72
         Glavposhtampt
         83000 Donetsk Region, Ukraine

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region, Ukraine

The Debtor can be reached at:

         LLC Investing-Industrial Company Inagro
         Snizhne, Lenin Str. 154
         86550 Donetsk Region, Ukraine


INTERNET TECHNOLOGY: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Economic Court of Chernigiv Region commenced bankruptcy
supervision procedure on OJSC Scientific-Production Enterprise
Internet Technology and Electronic Communications (code EDRPOU
14225079) on March 7.  

The case is docketed under Case No. 9/122 b.

The Temporary Insolvency Manager is:

         Oleksji Lugovij
         Kutuzov Str. 6/50
         01011 Kyiv Region, Ukraine
         
The Economic Court of Chernigiv Region is located at:

         Miru Avenue 20
         14000 Chernigiv Region, Ukraine

The Debtor can be reached at:

         OJSC Scientific-Production Enterprise
         Internet Technology and Electronic Communications
         Odintsov Str. 17a
         14030 Chernigiv Region, Ukraine


KLIME: Vinnitsya Court Names JSCB Mriya as Liquidator
-----------------------------------------------------
The Economic Court of Vinnitsya Region appointed Vinnitsya
Branch of JSCB Mriya as Liquidator for LLC KLIME (code EDRPOU
23107999).  The Liquidator can be reached at:

         Vinnitsya Branch of JSCB Mriya
         Gagarin Square 2
         Vinnitsya Region, Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 28.  The case is docketed
under Case No. 5/62-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         Vinnitsya Region, Ukraine

The Debtor can be reached at:

         LLC Klime
         Yunosti Avenue 16
         21000 Vinnitsya Region, Ukraine


KVADROTEH: Yaroslav Onushkanich to Manage Insolvency Assets
-----------------------------------------------------------
The Economic Court of Lviv Region appointed Yaroslav Onushkanich
has been appointed Liquidator/Insolvency Manager for LLC
kvadroteh (code EDRPOU 32969274).  He can be reached at:

         Yaroslav Onushkanich
         Strijska Str. 71 b/3
         79031 Lviv Region, Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 4.  The case is docketed
under Case No. 6/46-8/86.

The Economic Court of Lviv Region is located in:

         Lichakivska Str. 81
         79010 Lviv Region, Ukraine

The Debtor can be reached at:

         LLC Kvadroteh
         Lazarenko Str. 1
         79000 Lviv Region, Ukraine


NAFTA-K: Kyiv Court Names Sergij Tusmenko as Liquidator
-------------------------------------------------------
The Economic Court of Kyiv Region appointed Sergij Tusmenko as
Liquidator/Insolvency Manager for CJSC Nafta-K (code EDRPOU
25284346).  He can be reached at:

         Sergij Tusmenko
         Delegatskij Lane 2/18-74
         04107 Kyiv Region, Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 27.  The case is docketed
under Case No. 46/66-b.

The Economic Court of Kyiv Region is located in:

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

The Debtor can be reached at:

         CJSC Nafta-K
         Raskova Str. 11
         Marina
         Kyiv Region, Ukraine


PBF AGROTEP: State Tax Inspection to Liquidate Assets
-----------------------------------------------------
The Economic Court of Kyiv Region appointed State Tax Inspection
as Liquidator/Insolvency Manager for LLC PBF Agrotep (code
EDRPOU 19495808).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Jan. 10.  The case is docketed
under Case No. 15/14-b.

         Smilyanska Str. 6
         03151 Kyiv Region, Ukraine
         
The Economic Court of Kyiv Region is located in:

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

The Debtor can be reached at:

         LLC PBF Agrotep
         Garmatna Str. 8
         03067 Kyiv Region, Ukraine


PROLISOK: Court Appoints V. Glebov as Insolvency Manager
--------------------------------------------------------
The Economic Court of Vinnitsya Region appointed Mr. V. Glebov
as Liquidator/Insolvency Manager for LLC Prolisok (code EDRPOU
03730584).  He can be reached at:

         V. Glebov
         Hmelnitske Shose 23
         Vinnitsya Region, Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 28.  

The Economic Court of Vinnitsya Region is located in:

         Hmelnitske Shose 7
         Vinnitsya Region, Ukraine

The Debtor can be reached at:

         LLC Prolisok
         Galajkivtsi
         Murovanokurilovetskij District
         Vinnitsya Region, Ukraine


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


21ST CENTURY: Brings In Begbies Traynor to Administer Assets
------------------------------------------------------------
Jamie Taylor and David Paul Hudson of Begbies Traynor were
appointed joint administrators of 21st Century International
U.K. Ltd. (Company Number 02867110).

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

Headquartered in Rochford, England, 21st Century International
U.K. Ltd. -- http://21stcenturyinternational.co.uk/-- supplies  
water refreshment equipment.


ALDACRAFT LIMITED: Appoints Atherton Bailey as Administrators
-------------------------------------------------------------
Malcolm Peter Fillmore and Ranjit Bajjon of Atherton Bailey LLP
were appointed joint administrators of Aldacraft Limited
(Company Number 4374401) on May 15.

The administrators can be contacted at:

         Atherton Bailey LLP
         Arundel House
         1 Amberly Court
         Whitworth Road
         Country Oak
         Crawley RH11 7XL
         United Kingdom
         Tel: 01293 410333

Aldacraft Limited can be reached at:

         1 Forstal Road
         Aylesford
         Kent ME20 7AU
         United Kingdom


AVOCA CAPITAL: S&P Assigns Rating to New Floating Rate Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the floating-rate notes to be issued by Avoca
CLO V PLC, an SPE.
  
Avoca Capital Holdings will manage this transaction.  It is
Avoca Capital's fifth leveraged loan CLO and follows Avoca CLO
IV PLC, which closed in January 2006.  The collateral portfolio
will consist of senior and mezzanine loans.  
  
Avoca CLO V is a bankruptcy-remote, private company with limited
liability, which was incorporated in Ireland in 2006.  Its only
purposes are to acquire the portfolio, issue the notes, and
engage in certain related transactions.
  
The structure is very similar to that of Avoca CLO IV.
  
                          Ratings List
                        Avoca CLO V PLC
                EUR506 Million Floating-Rate Notes

          Class                Prelim.          Prelim.
                               rating           amount
          -----                ------           -------
          A1a                  AAA              EUR210 Mln
          A1b                  AAA              EUR100 Mln
          A2                   AAA              EUR40 Mln
          B deferrable notes   AA               EUR34.5 Mln
          C deferrable notes   A                EUR34.5 Mln
          D deferrable notes   BBB              EUR21 Mln
          E deferrable notes   BB               EUR22 Mln
          F deferrable notes   B                EUR10 Mln
          Subordinated notes   Not Rated        EUR34 Mln


CABLE & WIRELESS: Drops Share Buyback Scheme
--------------------------------------------
Cable & Wireless PLC has abandoned its share buy back program,
stressing the necessity of reinvesting its money in the business
rather than repurchasing shares, Edinburg News reports.

"I think the shareholders recognize that [Cable & Wireless} can
generate more return through business investment than sending
the money back to them," Finance Director Tony Rice told
Edinburg News.

With a GBP250 million budget program, the company had spent
around GBP100 million in repurchasing its shares.

Headquartered in London, Cable & Wireless PLC --
http://www.cw.com/new/-- provides voice, data and IP (Internet  
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
Its principal operations are in the United Kingdom, continental
Europe, Asia, the Caribbean, Panama and the Middle East.

Fitch Ratings has affirmed Cable & Wireless' ratings at Long-
term 'BB+' with Stable Outlook and Short-term 'B'.

                        *     *     *

As reported in the Troubled Company Reporter-Europe on March 3,
Standard & Poor's Ratings Services said that the ratings and
outlook on U.K.-based telecommunications operator Cable &
Wireless PLC (C&W; BB-/Negative/B) were unchanged following the
group's presentation of plans for further restructuring and
refocusing of its U.K. business.

C&W is replicating the broadly successful business model of
Energis, the U.K. telecoms services company that it acquired in
November 2005.  It has announced a withdrawal from the low-
margin U.K. small-to-midsized business market and a focus on
large U.K. corporate customers.  Given this streamlining of the
customer and product base, employee numbers could reduce by up
to 3,000, resulting in additional headcount reduction and lease
exit costs.  The group is to continue investing in Bulldog, its
early stage, and largely residential, local-loop-access
operation.


CORUS GROUP: Earns GBP45 Million in First Quarter 2006
------------------------------------------------------
Corus Group PLC has released its unaudited financial results for
the first quarter ended April 1, 2006.

For the first quarter ended April 1, 2006, Corus Group posted
GBP45 million in net profit on GBP2.29 billion in turnover
versus GBP166 million in net profit on GBP2.34 billion group
turnover for the same period last year.

Group operating profit in first quarter 2006 was GBP176 million
compared with GBP218 million for the same period last year.  

Group's net debt rose to GBP1.32 billion from GBP1.21 billion.

At April 1, 2006, Corus Group has GBP8.33 billion in total
assets, GBP4.61 billion in total liabilities and GBP3.71 billion
in shareholders' equity.

Corus Group's Chief Exective Philippe Varin commented, "Against
the background of low steel prices and high raw material and
energy costs, our financial performance has held up well in the
first quarter of 2006.  Corus is well positioned to take
advantage of the recovery in demand and spot prices."

                       About Corus Group

Corus Group PLC -- http://www.corusgroup.com/-- is one of the  
world's largest metal producers with a turnover of over GBP10
billion and major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.

Operating through four divisions -- Strip Products, Long
Products, Aluminum and Distribution & Building Systems -- Corus
has over 47,300 employees in over 40 countries and sales offices
and service centers worldwide.

Corus was created through the merger of British Steel plc and
Koninklijke Hoogovens N.V.  It suffered six years ago from the
crisis in British manufacturing, which prompted it to shake up
management, close plants, cut jobs, and sell assets to lower
debt.  Its debt was thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                        *     *     *

As reported in the Troubled Company Reporter-Europe on March 23,
Fitch Ratings changed Corus Group PLC's Outlook to Positive from
Stable and affirmed the Issuer Default Rating at BB- following
the company's announcement of its 2005 results and plan to
dispose its aluminium business for EUR826 million.  Corus' debt
instruments are also affirmed as listed below.

   a) Corus Group PLC EUR800 mln 7.5% senior notes B+;

   b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+;

   c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+;
      and

   d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+.

As reported in the TCR-Europe on May 11, Moody's Investors
Service 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.

As reported in the Troubled Company Reporter on March 30,
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit rating on U.K.-based steel consortium Corus
Group PLC on CreditWatch with positive implications following
March 16, announcement concerning the intended disposal of the
aluminum division, coupled with good financial performance in
2005.

At the same time, Standard & Poor's placed its 'BB' senior
secured bank loan ratings on Corus and its 'B+' senior unsecured
debt ratings on Corus and Corus Finance PLC on CreditWatch with
positive implications.  The 'B' short-term corporate credit
rating on Corus was also placed on CreditWatch with positive
implications.


EUROTUNNEL GROUP: Bares Interim Debt Restructuring Deal
-------------------------------------------------------
Eurotunnel Group signed a binding Preliminary Restructuring
Agreement with the Ad Hoc Committee on May 23, following 10
months of negotiations.  

The restructuring plan is strengthened by a financing commitment
from a group of financiers and investors comprised of Goldman
Sachs, Barclays and Macquarie.

The Agreement preserves, as far as possible, the interests of
all the parties involved.  It is being presented to the other
debt holders and will be presented to Eurotunnel shareholders at
the next General Meeting.

The economics of this Agreement include:

   -- debt reduction of approximately GBP3.3 billion;

   -- a total "corporate" style debt of GBP2.9 billion, made up
      of three tranches: new Senior debt, Tier 1A and mezzanine;

   -- listed hybrid notes for a nominal amount of GBP1 billion,
      convertible from 2009; and

   -- the establishment of accretion mechanisms for the existing
      Eurotunnel shareholders: warrants and the possibility for      
      the Group to buyback the hybrid notes.

The financial restructuring, if accepted, will be implemented
through the incorporation of a new French parent company, which
will, in autumn 2006, launch an exchange offer, in the UK and
France, to holders of Eurotunnel Units.

            Preliminary Restructuring Agreement

This note summarizes the key elements of the Preliminary
Restructuring Agreement executed by Eurotunnel with the members
of the Ad Hoc Committee.  This binding agreement, which is
subject to a number of conditions precedent, sets out the
principal terms of the restructuring of Eurotunnel's debt which,
once finalized, will be presented to its shareholders at the
next General Meeting.  

The prime objective of the parties to the Preliminary
Restructuring Agreement is to create the conditions for
Eurotunnel to operate on a "normal" basis, at the same time as
taking account of the interests of the different parties.  The
agreed structure provides a lasting solution to the problems
encountered by the group since its creation by:

   -- simplifying and unifying the existing corporate structure;

   -- replacing the current "project finance" style debt
      structure by a "corporate" debt structure; and

   -- significantly reducing the group's indebtedness and   
      adapting the amount and duration to the specificities of   
      the tunnel concession.

The tunnel operator expects to complete the restructuring plan
implementation before Oct. 31.

Key features of the financial restructuring plan:

   -- the Preliminary Restructuring Agreement sets out the   
      framework to restore and stabilize Eurotunnel's financial
      situation, with the objective of reducing its indebtedness
      by approximately 54% from GBP6.20 billion to GBP2.90  
      billion.  This reduced level of indebtedness is considered
      realistic in light of the duration of the concession and
      operating forecasts to ensure the group's future and
      prospects for development and provides a balanced
      treatment of the interests of all relevant parties.

   -- The refinancing plan is structured around:

      a) the incorporation of a new French holding company,
         which will be at the center of the restructuring and   
         all of the transactions required for its    
         implementation.  The existing Eurotunnel shareholders
         will have the possibility to become members of the new
         French holding company pursuant to an exchange offer;
         and

      b) the simultaneous financing of the new structure by a
         group of investors and financiers.

The key features of the financial restructuring are:

   -- incorporation of a new French holding company listed in
      London and Paris.  The share capital of the new holding
      company will be comprised of ordinary shares and one   
      preferred share.  The preferred share will be held by a  
      company controlled by the investors in the hybrid notes  
      and would confer specific governance rights, but no
      specific economic rights;

   -- implementation of an exchange offer in the UK and France
      pursuant to which the holders of Eurotunnel PLC and
      Eurotunnel S.A. units will be offered:
      
      a) new shares in the new French holding company; and

      b) warrants entitling the holders to subscribe for
         additional shares in the circumstances set out in    
         paragraph (vi) below, in particular in the event of
         additional value crystallizing in Eurotunnel.

      In addition, shares in the new French holding company   
      offered pursuant to the Exchange Offer will benefit from
      preferential tariffs for transport.  The minimum
      acceptance threshold for the Exchange Offer will be 60%,
      subject to regulatory approval;

   -- the funding of a new Senior facility of an aggregate
      amount of GBP1.81 billion to France Manche SA and
      Eurotunnel Finance Ltd. to refinance the Senior Debt,
      Fourth Tranche and Tier 1 and Tier 2 of the Junior Debt.  
      Tier 1A will be excluded from this refinancing and will
      remain in place under its current terms;

   -- issue by an English subsidiary of the new French holding
      company of a mezzanine debt of an aggregate amount of up
      to GBP350 million, the proceeds of which will be used in
      part to refinance part of the current Junior Tier 3 Debt
      and to compromise the Stabilization Notes, Resettable
      Bonds and Participating Loan Notes.  Any remaining amount
      of the mezzanine debt will be used as working capital by
      the group, including to pay costs incurred in connection
      with the implementation of the restructuring;

   -- issue by the U.K. subsidiary of listed subordinated Hybrid
      Notes convertible into ordinary shares of the French
      holding company.  The issue of the Hybrid Notes will be
      underwritten by the new investors.  The Hybrid Notes will
      be offered to the holders of the Tier 3 Junior Debt in
      exchange for their debt of GBP1.78 billion.  

      The aggregate nominal amount of the Hybrid Notes will be
      GBP1 billion or equivalent, divided in three tranches:

      a) T1- GBP500 million, mandatory conversion on the third
         anniversary of their issue;

      b) T2 - GBP250 million, mandatory conversion on the fourth
         anniversary of their issue; and

      c) T3 - GBP250 million, mandatory conversion on the fifth  
         anniversary of their issue.  

      In addition, the Hybrid Notes may, subject to certain
      conditions, be redeemed at the discretion of Eurotunnel by
      the payment of a redemption premium of 59.2%, increased
      each year by 7.5%; and

   -- the granting of claw back rights, in the form of warrants
      issued to shareholders tendering their Units to the
      Exchange Offer and to a lesser extent to holders of
      Stabilization Notes, Resettable Bonds and Participating
      Loan Notes.  These warrants are intended to limit the
      diluting effect on the shareholders of the Hybrid Notes
      upon the occurrence of certain events and enable their
      holders to participate in future value creation within the
      new French holding company.

The restructuring plan provides for the extension of the
maturity profile of all of the group's indebtedness to be more
in line with the duration of the concession.  The group's
indebtedness may also be refinanced, subject in certain cases,
to the payment of an early redemption premium, enabling the
group to benefit from any improvement in market conditions and
the company's credit rating following the restructuring.

             Overview of the Financial Restructuring

The restructuring plan is in respect of approximately
GBP6.24 billion, estimated to be the level of the group's debt
as at Oct. 31, 2006, the expected closing date of the
implementation of the restructuring.

The restructuring plan:

   -- provides for the redemption in full of the principal
      amount plus accrued interest of:

      a) the Senior Debt: GBP237 million,
      b) the Fourth Tranche Debt: GBP129 million,
      c) the Tier 1 Debt: GBP541 million, and
      d) Tier 2 Debt - GBP892 million.  

      Holders of Tier 3 Junior Debt will receive subordinated
      Hybrid Notes convertible into shares of an aggregate
      principal amount of GBP1 billion, plus a payment in cash
      of GBP100 million in exchange for their debt of
      GBP1.78 billion;

   -- does not affect the Tier 1A Debt which remains in place
      under its current terms.  With the first repayment of
      principal not due until 2026, this does not affect the
      short term financial stability of the group; and

   -- includes a mezzanine debt, the principal amount of which
      is not amortizable for seven years and the unpaid interest
      of which will be capitalized.

                    Dilution/Claw Back Rights

The conversion of Hybrid Notes into ordinary shares of the new
French holding company will entitle their holders to up to
86.95652% of the share capital of the new French holding company
on a fully diluted basis and following a complete success of the
Exchange Offer.  Under the terms of the agreement, the potential
dilution of holders of Units may be limited by:

   -- the holders of Units accepting the Exchange Offer will
      receive free warrants to subscribe for ordinary shares in
      the new French holding company which will entitle them to
      be the only shareholders benefiting from a part of the
      increase in value of the French holding company between
      2008 to 2010 by being able to exercise the warrants with
      effect from 2011 at an exercise price equal to the nominal
      value of the underlying shares and for a number of shares
      proportionate to the increase in value and to which they
      are entitled; and

   -- up to 40% of the Hybrid Notes may be redeemed at any time
      at the entire discretion of the Eurotunnel group, subject
      to the payment of an initial redemption premium of 59.2%,
      increasing each year by 7.5%.  Any redemption of more than
      40% of the Hybrid Notes must be made for all of the
      outstanding Hybrid Notes.  The redemption of Hybrid Notes
      may be financed in one or more of the following three
      ways:

      a) additional indebtedness up to a maximum of GBP225
         million;

      b) share capital increase; and

      c) direct market purchases of up to 5% of the outstanding
         Hybrid Notes in the fifth year following their issue.

   -- the Preliminary Restructuring Agreement specifically
      provides for the possibility of dividends to be paid to
      shareholders:

      a) following the payment of a first coupon of 6% to the
         holders of the Hybrid Notes, subject to available cash
         flow, an additional 3% coupon shall be payable to
         holders of Hybrid Notes and a dividend of an amount
         equal to the amount of the additional coupon
         multiplied by the sum of the number of shares in issue
         divided by the number of shares to be issued upon
         conversion of the Hybrid Notes in issue at the date of
         payment of the additional coupon shall be payable to
         shareholders; and

      b) by the debt structure of the group becoming
         "corporate" in nature. Subject to complying with the
         various agreements reached with its creditors, in
         particular concerning coverage ratios, the group will
         be entitled to retain its free cash flows and at the
         appropriate time use them in accordance with its
         corporate interest, such as paying dividends to its
         shareholders.

Eurotunnel now intends to convince the subordinated debt holders
to back this Preliminary Restructuring Agreement.  In parallel
Eurotunnel will seek to strengthen the financial refinancing
package through inclusion of a wider group of investors and
financiers.  Details of the full restructuring plan and the
conditions to which it is subject will be presented to
shareholders at the next General Meeting.  A full description
will be included in the documentation provided to shareholders
in connection with the Exchange Offer.

The effective implementation of the restructuring plan is
subject to the satisfaction of a number of conditions precedent
over the coming months.  The terms of the exchange offer are
subject to regulator approval and could therefore be amended.
Certain conditions depend on events and parties outside the
control of the Eurotunnel group, which may not be satisfied or
may only be satisfied in a timeframe that is incompatible with
the proposed implementation of the restructuring plan.  In this
case, Eurotunnel would have to agree with the relevant parties
the necessary changes or modifications to be made to the current
plan.  The implementation of the restructuring plan will be
completed not later than the autumn 2006.

                      About the Company

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a  
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        *     *     *

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faces
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.


HOSE DIRECT: Creditors Pass Winding Up Resolution
-------------------------------------------------
Creditors of Hose Direct Limited passed a resolution to wind up
the company's operations during an extraordinary general meeting
on March 24.

Neil Brackenbury of Begbies Traynor was appointed Liquidator.

Hose Direct Limited supplies automotive, marine, hydraulic and
industrial hose and fittings.

The company can be reached at:

         Hose Direct Limited
         Blyth Road
         Harworth Doncaster
         South Yorkshire DN118NE
         United Kingdom
         Tel: 01302 746 969
         Fax: 01302 746 974  


INHOUSEIT AND MACSCOMS: Winds Up Business & Appoints Liquidator
---------------------------------------------------------------
Creditors of InhouseIT and Macscoms Group Limited decided to
wind up the company's operations during an extraordinary general
meeting on March 24.

Subsequently, K.B. Stout was appointed Liquidator.

The company can be reached at:

         InhouseIT and Macscoms Group Limited
         Dyna House
         Lympne Industrial estate
         Lympne Hythe
         Kent CT214LR
         United Kingdom
         Tel: 01322 424 505


INTERFACE ENTERPRISES: Names A. Kachani Administrator
-----------------------------------------------------
A. Kachani of Crawfords was appointed administrator of Interface
Enterprises Limited (Company Number 02062988) on May 5.

The administrator can be contacted at:

         Crawfords
         Stanton House
         41 Blackfriars Road
         Salford
         Manchester M3 7DB
         United Kingdom
         Tel: 0161 828 1000
         Fax: 0161 832 1829
         E-mail: akachani@aol.com

Headquartered in Manchester, England, Interface Enterprises
Limited wholesales household goods.


MIKE HORIZON: Brings In Liquidator from Ashcrofts
-------------------------------------------------
Mike Horizon Limited is liquidating its assets after creditors
passed a resolution to wind up the company's operations on
March 28.

George Michael of Ashcrofts was appointed Liquidator.

The company can be reached at:

        Mike Horizon Limited
        7 Hockley Drive
        Romford RM2 6NL
        United Kingdom
        Tel: 01708 742 153


PARK CIVILS: Hires Liquidator from Armstrong Watson
---------------------------------------------------
Park Civils & Utilities Limited is liquidating its assets after
creditors agreed to liquidate the company's assets during an
extraordinary general meeting on March 23.

Michael C. Kienlen, of Armstrong Watson, was appointed
Liquidator.

The company can be reached at:

         Park Civils & Utilities Limited
         43 Derwent Bank
         Seaton Workington
         Cumbria CA141EQ
         United Kingdom
         Tel: 01900 623 40


PETRO CHEMICAL: Names Steven Leslie Smith to Liquidate Assets
-------------------------------------------------------------
Steven Leslie Smith, of Mercer & Hole, was appointed Liquidator
of Petro Chemical Offshore Supplies Limited after creditors
decided to wind up the company during an extraordinary general
meeting on March 24.

The company can be reached at:

         Petro Chemical Offshore Supplies Limited
         Unit E
         108 Blackhorse Lane
         London E17 6AA
         United Kingdom
         Tel: 020 8523 3261


PROFLO SYSTEMS: Brings In Joint Liquidators from Tipiden
--------------------------------------------------------
Gary Steven Pettit and Peter John Windatt, of BRI Business
Recovery and Insolvency, were appointed Joint Liquidators of
Tipiden Limited after creditors agreed to wind up the company's
operations during an extraordinary general meeting on March 22.

The company can be reached at:

         Proflo Systems Limited
         87 Littlewood Street
         Rothwell Kettering
         Northamptonshire NN146DU
         United Kingdom
         Tel: 01536 710 335


QUIGLEY UNITED: Hires Joint Administrators from Unity Business
--------------------------------------------------------------
Matthew Colin Bowker and Suzanne Payne of Unity Business
Services LLP were appointed joint administrators of Quigley
United Kingdom Limited (Company Number 04482632) on May 12.

The administrators can be reached at:

         Unity Business Services LLP
         Unity House
         Clive Street
         Bolton
         Lancashire BL1 1ET
         United Kingdom
         Tel: 01204 395000
         Fax: 01204 383999
         E-mail: matthewbowker@ubsg.co.uk

Headquartered in Runcorn Cheshire, Quigley United Kingdom
Limited -- http://www.quigleyuk.co.uk/-- is a specialist  
support service company operating in Contract Lifting Services,
Crane Hire, Machinery Handling Contracts, and Training Services.


R.H. ELECTRICAL: Creditors Resolve to Wind Up Operations
--------------------------------------------------------
R.H. Electrical & Security Systems Limited is liquidating its
assets after creditors resolved to wind up the company's
operations on March 24.

David Birne and Stephen Katz of Acre House were appointed Joint
Liquidators.

The company can be reached at:

         R.H. Electrical & Security Systems Limited
         37 Abbey Road
         Smethwick B67 5RA
         United Kingdom
         Tel: 0121 420 4222


SHAN TRADING: Calls In Begbies Traynor Administrator
----------------------------------------------------
David Paul Hudson of Begbies Traynor was appointed administrator
of Shan Trading Limited (Company Number 1894668) on May 15.

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

Headquartered in Eastbourne, England, Shan Trading Limited is
engaged in food retail.


SHAZAM LIMITED: Ninos Koumettou Leads Winding Up Procedure
----------------------------------------------------------
Creditors of Shazam Limited agreed to wind up the company's
operations during an extraordinary general meeting on March 28.

Ninos Koumettou of Alexander Lawson & Co. was appointed
Liquidator.

The company can be reached at:

         Shazam Limited
         5A Samos Road
         London SE207UQ
         United Kingdom
         Tel: 020 8659 4176
         Fax: 020 8659 4366


STANTON VINTAGE: S&P Rates EUR16 Million Class E Notes at BB
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the US$140 million floating-rate notes to be
issued by Stanton Vintage CDO PLC, an SPE.  

At the same time, Stanton Vintage will issue unrated notes to
the amount of US$22 million.
  
The portfolio comprises CLOs and other CDOs, and total return
swaps referencing CLOs and other CDOs.  The portfolio manager
will be UNIQA Alternative Investments GmbH (UNIQA).
  
This is UNIQA's first CDO squared transaction since the
investment team was rebuilt and re-organized following the
departure of several investment professionals in late 2005 and
early 2006.  UNIQA has previously launched and managed Stanton
CDO 1 S.A., a CDO of CLOs, Stanton ABS I PLC, and Stanton MBS 1
PLC, both CDOs of mezzanine ABS.
  
                          Ratings List
                    Stanton Vintage CDO PLC
               US$162 Million Floating-Rate Notes
  
            Class            Prelim.         Prelim.
                             rating          amount
            -----            ------          ------  
            A                AAA             US$20 Mln
            B                AA              US$60 Mln
            C                A               US$24 Mln
            D                BBB             US$20 Mln
            E                BB              US$16 Mln
            F(subordinated)  Not Rated       US$22 Mln


STORM FLOWERS: Claims Filing Period Ends Sept. 30
------------------------------------------------
Creditors of Storm Flowers Limited have until Sept. 30 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 Liquidator, Stephen Cork of
Smith & Williamson.

The company can be reached at:

         Storm Flowers Limited
         1 Willowside
         Snodland Kent ME6 5QN
         United Kingdom
         Tel: 020 7831 0425


SUITABLE SHOES: Taps Philip Weinberg to Liquidate Assets
--------------------------------------------------------
Philip Weinberg, of Marks Bloom Diane Hill, was appointed
Liquidator of Suitable Shoes Limited after creditors passed a
resolution to wind up the company on March 27.

Director D. C. Redman revealed the company could no longer
continue its business due to mounting debts.

The company can be reached at:

         Suitable Shoes Limited
         59 The Elmsleigh Centre
         Staines Middlesex TW184QF
         United Kingdom
         Tel: 01784 464 616


SURESTOCK SERVICES: Taps Tenon Recovery to Administer Assets
------------------------------------------------------------
Martin A. Shaw and Charles M. Brook of Tenon Recovery were
appointed joint administrators of Surestock Services Limited
(Company Number 05197367) on May 15.

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

Headquartered in London, Surestock Services Limited offers
computer programming and software services.


SWAN STREET: Appoints Robert William Birchall as Administrator
--------------------------------------------------------------
Robert William Birchall of PricewaterhouseCoopers LLP was
appointed administrator of Swan Street Motors (King's Lynn)
Limited (Company Number 02397271) on May 11.

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--  
provides, among others, auditing services, accounting advice,
tax compliance and consulting, financial consulting and advisory
services to clients in a variety of industries.  

Swan Street Motors (King's Lynn) Limited is engaged in motor
dealership.


TONY MCFADDEN: Brings In Menzies as Joint Administrators
--------------------------------------------------------
Andrew John Duncan and Andrew Gordon Stoneman of Menzies
Corporate Restructuring were appointed joint administrators of
Tony Mcfadden Limited (Company Number 01487531) on May 15.

Headquartered in London, Menzies Corporate Restructuring --
http://www.menzies.co.uk/-- is a member of Moores Rowland  
International, an association of independent accounting firms
throughout the world with some 20,800 partners and staff,
operating from 628 offices in 92 countries.

Tony Mcfadden Limited can be reached at:

         12 Buckley Road
         London NW6 7NA
         Tel: 020 7372 6414
         Fax: 020 7328 1210


VISION H.I. LIMITED: Creditors' Meeting Slated for June 5
---------------------------------------------------------
Creditors of Vision H.I. Limited (Company Number 05145756) will
meet at 11:00 a.m. on June 5 at:

         Berg Kaprow Lewis LLP
         4 Shakespeare Road
         London N3 1XE
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on June 2 at:

         S. T. Bennett
         Joint Administrator
         Berg Kaprow Lewis LLP
         35 Ballards Lane
         London N3 1XW
         United Kingdom
         Tel: 020 8922 9222
         Fax: 020 8922 9223
         Enquiry Line: 020 8922 9121

                           *********

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, Julybien Atadero, Carmel Paderog,
and Joy Agravante, Editors.

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

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

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

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


                 * * * End of Transmission * * *