TCREUR_Public/060615.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, June 15, 2006, Vol. 7, No. 118

                            Headlines


A U S T R I A

A.N.HOLZSCHLAGERUNGS: Creditors' Meeting Set on June 21
BAUMEISTER MULLY: Claims Filing Period Ends June 19
BRETTENTHALER WERNER: Claims Filing Period Ends July 11
CHRISTIAN SCHWARZLER: Claims Filing Period Ends June 20
EDUARD HILDEBRAND: Claims Filing Period Ends June 28


B E L G I U M

DORSET STREET: Fitch Rates EUR30 Million Class H Notes at BB+


F R A N C E

EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27
PROCREDIT BANK: Fitch Upgrades Foreign Currency IDR to BB+


G E R M A N Y

BACKEREI EICHMUELLER: Claims Registration Ends June 19
BBK GRUNDSTUECKSGESELLSCHAFT: Creditors' Meeting Set for June 27
BISCHOFF KINOBETRIEBE: Creditors' Meeting Slated for June 27
CUSTOMER GMBH: Claims Registration Ends June 21
D-METALLBEARBEITUNG: Claims Filing Period Ends June 30

ESSENTIAL PUBLIC: S&P Assigns BB Rating to Class E Notes
HIB HAUS: Claims Filing Period Ends June 29
HUNO GMBH: Claims Registration Ends June 28
KARSTADTQUELLE AG: Partly Cuts Supply to Smaller Stores
MOBBY DICK: Claims Registration Ends June 21

POULET & CIE.: Claims Filing Period Ends June 30
SMALL BUSINESS: Claims Filing Period Ends June 21


G R E E C E

COMMERCIAL VALUE: Fitch Affirms Insurer Financial Strength at BB
EMPORIKI BANK: Fitch Affirms Individual Rating at C/D


I T A L Y

BANCA POPOLARE: Fitch Downgrades Issuer Default Rating to BB
SEAT PAGINE: Fitch Places BB- on Issuer Default Rating


K A Z A K H S T A N

ALTAIENERGO: Creditors Must File Claims by June 23
BAKTYBEK: Kyzylorda Court Opens Bankruptcy Proceedings
DEN: Creditors Must File Claims by June 23
EKO-ASTANA-ALFA: Claims Registration Ends June 23
KOMPANYA PAVLODAR-KONSALTING: Claims Registration Ends June 23

LENINOGOR FOREST: Proof of Claim Deadline Slated for June 23
MERKATA OIL: Proof of Claim Deadline Slated for June 23
MIRAKOM: Creditors' Claims Due June 23
NURLAN: Kyzylorda Court Begins Bankruptcy Proceedings
SULEIMEN: Kyzylorda Court Starts Bankruptcy Process


K Y R G Y Z S T A N

M.H. INTERNATIONAL: Creditors Must File Claims by Aug. 7
PROMENERGOSERVIS: Proof of Claim Deadline Slated for Aug. 8
ROOFING AND INSULATING: Claims Registration Ends Aug. 8


R U S S I A

AMUR-INVEST: Amur Court Starts Bankruptcy Supervision
EAST TRADING: Altay Court Opens Bankruptcy Proceedings
GENERAL MOTORS: Eyes Chevrolet SUVs in St. Petersburg by 2008
KOPKULSKOYE: Novosibirsk Court Starts Bankruptcy Proceedings
MB CAPITAL: Fitch Puts Long-Term B Rating on Upcoming Loan Issue

SIB-STEEL-MECHANIZATION: Court Opens Bankruptcy Proceedings
TARSKIY MEAT: Court Starts Bankruptcy Supervision
TRANS-SIB-OIL: Court Starts Bankruptcy Proceedings
PIONER: Sverdlovsk Court Commences Bankruptcy Supervision
VOLOVO-AGRO-PROM-KHIMIYA: Court Commences Bankruptcy Proceedings

WOOD-WORKER: Bankruptcy Hearing Slated for Dec. 13


S P A I N

BANKINTER 2: S&P Assigns Ratings to EUR800 Million Notes


T U R K E Y

DENIZBANK A.S.: Gets US$500 Million Loan From Bank Syndicate


U K R A I N E

BIKIVKA' GLASS: Court Names Oleg Shklyar as Insolvency Manager
BLITS: Court Begins Bankruptcy Proceedings
ENERGOTRANZIT: Court Commences Bankruptcy Proceedings
INTERNET BUSINESS-CENTER: Oleksandr Shevchik to Liquidate Assets
KAPELLAS: Court Names Sergij Kulchitskij as Liquidator

KOMERTS-CAPITAL-PLUS: Yurij Ignatchenko to Manage Assets
SKRIMPRO: Donetsk Court Opens Bankruptcy Proceedings
UKRAINIAN ENERGETIC: Court Starts Bankruptcy Proceedings


U N I T E D   K I N G D O M

CHARTERHOUSE FOOD: Hires Menzies as Joint Administrators
DURA AUTOMOTIVE: Plans to Shut Down Llaneli Facility
EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27
GENERAL MOTORS: Eyes 502,000 Vehicles From Europe in 2nd Quarter
GENERAL MOTORS: Building Chevrolet Cars in Russia by 2008

INQUIRY U.K.: Names Gordon Craig as Administrator
LAB (SOHO): Winds Up Operations & Appoints Liquidator
LOCKSHIELD PROPERTY: Hires T. Papanicola as Administrator
MAPLE PARK: Appoints Simon Thornton to Administer Assets
MERLIN'S MOBILES: Brings In Administrator From Houghton Stone

MIDDLEBURN LIMITED: Creditors Pass Winding Up Resolution
OLDBURY NORTH: Brings In P.D. Masters as Liquidator
PINEOLOGY LIMITED: Brings In Administrators from PKF
SELECT RESOURCING: Names Andrew Clay as Administrator
SECURE ARCHIVES: Joint Liquidators Take Over Operations

SENTIRO LIMITED: Creditors Resolve to Liquidation
SHARPTONE LIMITED: Hires Joint Administrators from Menzies
SOFA CHOICE: Brings In Liquidator From Stones & Co.
SOUTH YORKSHIRE: Brings In CRG Insolvency to Administer Assets
SUZIE CLAYTON: Hires Joint Liquidators from Begbies Traynor

TOTAL STAFF: Creditors Confirm Voluntary Liquidation
T.S.J. WOODHOUSE: Appoints Administrators from Menzies
WHITE CROSS: Financial Woes Prompt Liquidation
X V1 LIMITED: Taps Robert James Thompson to Liquidate Assets
YELL GROUP: Competition Commission Set to Keep Price Controls

* Begbies Traynor Acquires Wilson Pitts for GBP1.1 Million

                            *********

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

A.N.HOLZSCHLAGERUNGS: Creditors' Meeting Set on June 21
-------------------------------------------------------
Creditors owed money by LLC A.N.Holzschlagerungs (FN 249831z)
are encouraged to attend the creditors' meeting at 10:45 a.m. on
June 21 to consider the revision of the rule by adoption and
accountability.

The first creditors' meeting will be held at:

         Land Court of Leoben
         Hall IV
         1st Floor
         Leoben, Austria

Headquartered in Kapfenberg, Austria, the Debtor declared
bankruptcy on May 8 (Bankr. Case No. 17 S 33/06f).


BAUMEISTER MULLY: Claims Filing Period Ends June 19
---------------------------------------------------
Creditors owed money by LLC Baumeister Mully (FN 245318m) have
until June 19 to submit written proofs of claim to court-
appointed property manager Stefan Jahns at:

         Stefan Jahns
         Esslinggasse 9
         1010 Vienna
         Austria
         Fax: 536 50 14
         E-mail: officewien@aaa-law.at

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on July 3 to adopt the rule on payment
compensation.

The creditors' meeting will be held at:

         Trade Court of Vienna
         Room 2102
         21st Floor
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 8 (Bankr. Case No. 45 Sa 3/06d).


BRETTENTHALER WERNER: Claims Filing Period Ends July 11
-------------------------------------------------------
Creditors owed money by Construction And Trade Enterprise
Brettenthaler Werner have until July 11 to submit written proofs
of claims to court-appointed property manager Rudolf Vogrin at:

         Rudolf Vogrin
         Triesterstrasse 15
         2620 Neunkirchen
         Austria
         Tel: 02635/62860
         Fax: 02635/6286114
         E-mail: kanzlei.wippel@aon.at

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on July 25 to consider the revision of
the rule by adoption and accountability.

Headquartered in Reichenau an der Rax, Austria, the Debtor
declared bankruptcy on May 8 (Bankr. Case No. 11 S 51/06w).
Andreas Wippel represents Mr. Vogrin in the bankruptcy
proceedings.


CHRISTIAN SCHWARZLER: Claims Filing Period Ends June 20
-------------------------------------------------------
Creditors owed money by LLC Christian Schwarzler Holzwerk (FN
194622i) have until June 20 to submit written proofs of claim to
court-appointed property manager Gerhard Taufner at:

         Dr. Gerhard Taufner
         Bahnhofstrasse 5
         3390 Melk
         Austria
         Tel:  02752/52466
         Fax: 02752/52574
         E-mail: rechtsanwalt.taufner@taufner.at

Creditors and other interested parties are encouraged to attend
the meeting at 11:40 a.m. on July 11 to consider the revision of
the rule by adoption and accountability.

The creditors' meeting will be held at:

         Land Court of St. Polten
         Room 216
         2nd Floor (Old building)
         St. Polten, Austria

Headquartered in Laimbach am Ostrong, Austria, the Debtor
declared bankruptcy on May 8 (Bankr. Case No. 14 S 77/06y).


EDUARD HILDEBRAND: Claims Filing Period Ends June 28
----------------------------------------------------
Creditors owed money by LLC Eduard Hildebrand (FN 125156d) have
until June 28 to submit written proofs of claims to court-
appointed property manager Johanna Abel-Winkler at:

         Johanna Abel-Winkler
         Franz-Josefs-Kai 49/19
         1010 Vienna
         Austria
         Tel: 533 52 72
         Fax: 533 52 72 15
         E-mail: office@abel-abel.at

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on July 12 to consider the revision of
the rule by adoption and accountability.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 8 (Bankr. Case No. 4 S 75/06s).  Norbert Abel represents
Mr. Winkler in the bankruptcy proceedings.


=============
B E L G I U M
=============


DORSET STREET: Fitch Rates EUR30 Million Class H Notes at BB+
-------------------------------------------------------------
Fitch assigned ratings to Dorset Street Finance Limited
floating-rate credit-linked notes due 2040.

   -- EUR45,000,000 Class A-1, AAA;
   -- EUR75,000,000 Class A-2, AAA;
   -- EUR98,250,000 Class B AA+;
   -- EUR91,500,000 Class C AA;
   -- EUR75,000,000 Class D AA-;
   -- EUR60,000,000 Class E A;
   -- EUR37,500,000 Class F A-;
   -- EUR33,750,000 Class G BBB; and
   -- EUR30,000,000 Class H BB+.

Dorset Street Finance Limited is a fully managed synthetic CDO
that references a EUR546 million diversified portfolio of
primarily investment grade corporate bonds.  The reference
portfolio is comprised of stand-alone corporate assets
referenced as direct investments, and 10 inner tranche CDOs of
corporate assets.

The remaining 15% of the portfolio consists of various
investment grade asset-backed securities.  The transaction is
designed to provide credit protection for realized losses on the
reference portfolio through a master credit default swap between
the issuer and the swap counterparty, KBC Investments Cayman
Islands V, Ltd.

The legal maturity date of the CDS is October 2040, but this
trade is scheduled to amortize on July 2016.  The rating of the
notes addresses the likelihood that investors will receive full
and timely payments of interest and ultimate receipt of
principal by the scheduled maturity date.

Dorset Street provides protection to the swap counterparty via a
CDS that is funded with the issuance proceeds of the notes in
the form of charged assets.  Proceeds from the issuance of the
notes will be invested in a pool of euro-denominated eligible
investments, as applicable, consisting of high-quality
obligations maturing in less than 10 years.

Prior to maturity, the value of the principal of the notes is
assured through a daily mark-to-market process which ensures the
value of collateral amounts to at least the product of the
outstanding repurchase price and the repo margin.  At maturity,
the value of the principal of the notes is protected through the
repurchasing agreement, under which the repo counterparty agrees
to purchase the eligible investments at their purchase price at
maturity.  KBC Bank NV will serve as guarantor to the repurchase
agreement.

Dorset Street pays the swap counterparty for any losses due to
credit events experienced in the portfolio above the first loss
amount for each class up to the balance on the notes by
liquidating charged assets.  Any reference obligations in the
portfolio can be traded at the discretion of the portfolio swap
counterparty, KBC, subject to trading guidelines and portfolio
criteria restrictions.

While KBC bears no fiduciary responsibility to noteholders, the
capital structure of the transaction aligns interests of the
portfolio manager with those of the investors through a
subordinate management fee and equity holdings, among other
features.

The ratings are based upon the structure of the Issuer, the
financial strength and abilities of KBC, as the portfolio swap
counterparty, and KBC Bank NV, as guarantor to the repo
counterparty.


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


EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27
-------------------------------------------------------------
Eurotunnel Group has postponed its Annual General Meeting until
July 27 to address its financial restructuring.

"Eurotunnel is entirely conscious of the upset that this
postponement could cause to shareholders, with whom it shares
dissatisfaction with the delay generated, but the Group intends
to give every opportunity of success to the consensual
restructuring process," the Company said.

As reported in TCR-Europe on June 2, Eurotunnel 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.

                        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.

Eurotunnel needs to obtain approval from other creditors and
shareholders for a final agreement.  Absent a final agreement,
the Group may default in January 2007.

On April 26, Eurotunnel obtained a third extension of its credit
waiver, which calls for creditor talks to continue through
July 12.


PROCREDIT BANK: Fitch Upgrades Foreign Currency IDR to BB+
----------------------------------------------------------
Fitch Ratings upgraded ProCredit Bank Macedonia's foreign
currency Issuer Default rating to BB+ from BB.  The other
ratings are affirmed at Short-term foreign currency B; local
currency IDR BB+, Short-term local currency B; Individual D/E,
and Support 3.  Following the upgrade, the Outlooks on the
foreign currency and local currency IDRs are now Stable.

The upgrade follows Fitch's upgrade of the Republic of
Macedonia's foreign currency and local currency IDRs to BB+.

The IDRs, Short-term and Support ratings are based on Fitch's
view of the potential support the bank is likely to receive from
its owners in case of need.

PCH has a controlling stake in ProCredit Macedonia.  Other
shareholders include Kreditanstalt fuer Wiederaufbau, which is
state-guaranteed and one of Germany's largest banks, as well as
one of the largest development banks in Europe; European Bank
for Reconstruction and Development; the Netherlands Development
Finance Company and International Finance Corporation.

ProCredit Macedonia started operations in July 2003 and received
a full banking license at end-2004.  Total loans were EUR59
million as of end-May 2006.

The ProCredit banks were established to provide financing to
micro- and SME customers.  The ProCredit network currently
consists of 19 banks in Eastern Europe, Latin America and Africa
with total loans of EUR1.7 billion as of end-May 2006.  PCH is
responsible for all major group functions, including strategic
decisions, risk management controls and group supervision.


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


BACKEREI EICHMUELLER: Claims Registration Ends June 19
------------------------------------------------------
Creditors of Backerei Eichmueller - Jungkunz und Jungkunz GbR
have until June 19 to register their claims with court-appointed
provisional administrator Dirk Hammes.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 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 Duisburg
         Meeting Room C315
         3rd Floor
         Cardinal Galen Road 124-132
         47058 Duisburg, 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 Duisburg opened bankruptcy proceedings
against Backerei Eichmueller - Jungkunz und Jungkunz GbR on
May 15.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Backerei Eichmueller - Jungkunz und Jungkunz GbR
         Attn: Sara and Angelika Jungkunz, Managers
         Schelmenweg 25 A
         47229 Duisburg, Germany

The administrator can be contacted at:

         Dirk Hammes
         William Yard Avenue 75
         47800 Krefeld, Germany


BBK GRUNDSTUECKSGESELLSCHAFT: Creditors' Meeting Set for June 27
----------------------------------------------------------------
The court-appointed provisional administrator for BBK
Grundstuecksgesellschaft mbH & Co. Triftstrasse-Verwaltungs-KG,
Christoph Rosenmueller, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 9:35
a.m., on June 27.

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

         The District Court of Charlottenburg
         II Stock Hall 218
         District Court Place 1
         14057 Berlin, Germany

The Court will also verify the claims set out in the
administrator's report at 9:35 a.m., on Oct. 24 at the same
venue.

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

The District Court of Charlottenburg opened bankruptcy
proceedings against BBK Grundstuecksgesellschaft mbH & Co.
Triftstrasse-Verwaltungs-KG on May 22.  Consequently, all
pending proceedings against the company have been automatically
stayed

The Debtor can be reached at:

         BBK Grundstuecksgesellschaft mbH & Co.
         Kleiststrasse 3-6
         10787 Berlin, Germany

The administrator can be reached at:

         Christoph Rosenmueller
         Berliner Str. 117
         10713 Berlin, Germany


BISCHOFF KINOBETRIEBE: Creditors' Meeting Slated for June 27
------------------------------------------------------------
The court-appointed provisional administrator for Bischoff
Kinobetriebe GmbH, Christoph Rosenmueller, will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 9:35 a.m., on June 27.

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

         The District Court of Charlottenburg
         II Stock Hall 218
         District Court Place 1
         14057 Berlin, Germany

The Court will also verify the claims set out in the
administrator's report at 9:30 a.m., on Oct. 24 at the same
venue.

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

The District Court of Charlottenburg opened bankruptcy
proceedings against Bischoff Kinobetriebe GmbH on
May 23.  Consequently, all pending proceedings against the
company have been automatically stayed

The Debtor can be reached at:

         Bischoff Kinobetriebe GmbH
         Rhinstr. 127
         10315 Berlin, Germany

The administrator can be reached at:

         Christoph Rosenmueller
         Berliner Str. 117
         10713 Berlin, Germany


CUSTOMER GMBH: Claims Registration Ends June 21
-----------------------------------------------
Creditors of Customer GmbH have until June 21 to register their
claims with court-appointed provisional administrator Frank
Katzenberger.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on July 12, 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 Tuebingen
         Hall 208
         2. OG
         Schulberg 14
         72074 Tuebingen, 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 Tuebingen opened bankruptcy proceedings
against Customer GmbH on May 19.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Customer GmbH
         Attn: Guido Maier, Manager
         Bulerstr. 60
         72278 Wildberg, Germany

The administrator can be contacted at:

         Frank Katzenberger
         Wilhelmstr. 78
         75323 Bad Wildbad, Germany
         Tel: 07081/1303


D-METALLBEARBEITUNG: Claims Filing Period Ends June 30
------------------------------------------------------
Creditors of D-Metallbearbeitung GmbH have until June 30 to
register their claims with court-appointed provisional
administrator Hans-Jorg Derra.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on July 25, 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 Goppingen
         Hall 0.24
         Ground Floor
         Pfarrstrasse 25
         73033 Goppingen, 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 D-Metallbearbeitung GmbH on May 18.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         D-Metallbearbeitung GmbH
         Attn: Karlheinz Thierbach, Manager
         Station Route 9
         73111 Lauterstein, Germany

The administrator can be contacted at:

         Hans-Jorg Derra
         Frauenstrasse 14
         89073 Ulm, Germany
         Tel: 0731/922880
         Fax: 0731/9228888


ESSENTIAL PUBLIC: S&P Assigns BB Rating to Class E Notes
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR79 million floating-rate credit-linked
notes to be issued by Essential Public Infrastructure Capital II
GmbH.

This transaction is sponsored by KfW and arranged by Merrill
Lynch International.  EPIC II is structured as a synthetic,
partially funded CLO.

The initial collateral consists of 42 individual senior, secured
credit facilities, which are funding 32 public infrastructure
projects sourced from the loan books of DEPFA BANK PLC and
affiliates.

"The purpose of the transaction is to transfer the credit risk
associated with a pool of approximately EUR718 million public
infrastructure credit facilities," said Standard & Poor's credit
analyst Matthew Wiesner in Paris.

"This is the first global transaction to securitize public
infrastructure credit facilities related to projects in 11
jurisdictions, predominantly from EU and G7 countries.  The
various public-private partnership (PPP)/private finance
initiative (PFI) programs include projects in construction as
well as those already with established operations," said
Standard & Poor's credit analyst Jonathan Manley in London.

PFI/PPP transactions involve the design, construction,
financing, and operation of long-term, public-sector social and
economic assets including hospitals, roads, bridges and tunnels,
light-rail, schools, and waste management assets by private
sector debt and equity investors under a contractual,
concession-based framework.  Each transaction is contained
within an SPE, which defines and limits its scope of activities,
assets, and liabilities.

This is DEPFA's second public securitization of credit
facilities used to fund public infrastructure assets.  In
November 2004, DEPFA closed Essential Public Infrastructure
Capital PLC, its first securitization of 24 public
infrastructure credit facilities with an initial reference pool
amount of GBP392 million originated entirely under the U.K.'s
PFI or PPP program.

                     Ratings List
       Essential Public Infrastructure Capital II GmbH
       EUR79 Million Floating-Rate Credit-Linked Notes

         Class          Prelim.          Prelim.
         -----          rating           amount (Mil. EUR)
                        ------           ------
          A+             AAA              0.25
          A              AAA             45.00
          B              AA               9.00
          C              A                9.00
          D              BBB              9.00
          E              BB               6.75


HIB HAUS: Claims Filing Period Ends June 29
-------------------------------------------
Creditors of HIB Haus- und Industriebau GmbH have until June 29
to register their claims with court-appointed provisional
administrator Ralf Klinge.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Aug. 10, 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 Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden, Germany

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

The District Court of Aachen opened bankruptcy proceedings
against HIB Haus- und Industriebau GmbH on May 16.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         HIB Haus- und Industriebau GmbH
         Rudolf-Renner-Str. 28
         01796 Pirna, Germany

The administrator can be contacted at:

         Ralf Klinge
         Konigsbruecker Road 33
         01099 Dresden, Germany
         Web: http://www.raheumann.de/


HUNO GMBH: Claims Registration Ends June 28
-------------------------------------------
Creditors of HUNO GmbH have until June 28 to register their
claims with court-appointed provisional administrator Torsten
Gutmann.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on July 26, 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 Braunschweig
         E 01
         Martinikirche 8
         38100 Braunschweig, 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 Braunschweig opened bankruptcy proceedings
against HUNO GmbH on May 17.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         HUNO GmbH
         Attn: Richard von Egdom and Juergen Brunke, Managers
         Braunschweiger Road 171
         38259 Salzgitter, Germany

The administrator can be contacted at:

         Torsten Gutmann
         Lueders Partnergesellschaft
         Zum Blauen See 5
         D-31275 Lehrte, Germany
         Tel: 05132/826838
         Fax: 05132/826896


KARSTADTQUELLE AG: Partly Cuts Supply to Smaller Stores
-------------------------------------------------------
The Essen-based retail group KarstadtQuelle is partly
discontinuing supply to 74 smaller KarstadtKompakt GmbH
department stores.

As the Group announced in Essen, this would initially relate to
the textiles range, with effect from June 30.

"Following the sale of the small department stores, we stated
that we would continue to supply the new operators as a
wholesaler during a transitional period.  This period is now
coming to an end.  As agreed, brand items will continue to be
supplied for the time being," said Prof. Helmut Merkel, member
of the Management Board with responsibility for retail.

The supply volume for the own brand textiles range is around
EUR88 million, which Karstadt has supplied to the new operators
at low price conditions on a wholesale basis during this period
of transition.

"We will gradually cease to supply the small department stores
during the next few months.  This will not affect earnings.
However, it will bring noticeable relief to our organization,"
Mr. Merkel continued.

"We are in the process of completely restructuring and improving
the quality of our purchasing organization together with our new
partner Li & Fung in Hong Kong.  The contractually agreed
wholesale activities would impede this," he said.

The KarstadtQuelle Group anticipates a EUR500 million reduction
in working capital per year and a reduction of up to 10% in
purchasing prices due to the changes in purchasing and
logistics.

Headquartered in Essen, Germany, KarstadtQuelle AG --
http://www.karstadtquelle.com/-- is the country's largest
department store and mail order group.  It has annual sales of
EUR13.5 billion and employs around 90,000.  The retailer has
been suffering from sluggish consumption and high unemployment
rate in Germany.  KarstadtQuelle posted an EBITDA of -EUR428
million in 2004.  The group is currently restructuring
operations by selling off non-core assets and implementing cost-
saving measures.

The group achieved and exceeded its targets for the 2005
financial year.  Group sales, adjusted for the strong impact of
the realignment, were EUR15.45 billion, compared to EUR16.14
billion in the previous year, down 4.2 percent.  Adjusted EBITDA
improved by 5.1 percent to EUR544 million, compared to EUR518
million in the previous year.

In 2005, net financial liabilities were reduced by a third to
EUR3.0 billion (including Thomas Cook), down from EUR4.5 billion
in the previous year.


MOBBY DICK: Claims Registration Ends June 21
--------------------------------------------
Creditors of Mobby Dick Betriebsgesellschaft mbH have until
June 21 to register their claims with court-appointed
provisional administrator Sven-Holger Undritz.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on July 5, 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 Flensburg
         Hall A 220
         Flensburg, 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 Flensburg opened bankruptcy proceedings
against Mobby Dick Betriebsgesellschaft mbH on May 24.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Mobby Dick Betriebsgesellschaft mbH
         Attn: Dirk Muendlein, Manager
         Swittschau 18
         24887 Silberstedt, Germany

The administrator can be contacted at:

         Dr. Sven-Holger Undritz
         c/o White & Case Insolvenz GbR
         Westerallee 12
         24937 Flensburg, Germany


POULET & CIE.: Claims Filing Period Ends June 30
------------------------------------------------
Creditors of Poulet & Cie. GmbH & Co. KG have until June 30 to
register their claims with court-appointed provisional
administrator Thorsten Konrad.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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:

         The District Court of Heidelberg
         Hall 12
         Kurfuerstenanlage 21
         69115 Heidelberg, 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 Heidelberg opened bankruptcy proceedings
against Poulet & Cie. GmbH & Co. KG on May 18.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Poulet & Cie. GmbH & Co. KG
         Attn: Werner Mannsperger, Manager
         Rudolf-Diesel-Str. 8
         69115 Heidelberg, Germany

The administrator can be contacted at:

         Thorsten Konrad
         Saarburger Ring 10-12
         68229 Mannheim, Germany
         Tel: 0621/483240
         Fax: 0621/483276


SMALL BUSINESS: Claims Filing Period Ends June 21
-------------------------------------------------
Creditors of Small Business Agency Limited have until June 21 to
register their claims with court-appointed provisional
administrator Ygglev Stintzing.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on July 12, 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 Flensburg
         Hall A 220
         Flensburg, 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 Flensburg opened bankruptcy proceedings
against Small Business Agency Limited on May 24.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Small Business Agency Limited
         Attn: Herrn Alexander Seiler, Manager
         Industrial Road 32
         24848 Kropp, Germany

The administrator can be contacted at:

         Ygglev Stintzing
         Rathausstrasse 1
         24937 Flensburg, Germany



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


COMMERCIAL VALUE: Fitch Affirms Insurer Financial Strength at BB
----------------------------------------------------------------
Fitch Ratings affirmed Commercial Value AAE an Insurer Financial
Strength rating of BB with Stable Outlook.

The rating reflects CV's high investment risk, as well as weak
risk management and corporate governance.  Profitability,
although improving, remains low amid challenging conditions in
the Greek motor market.  Offsetting these negatives are CV's
competitive positioning in the Greek marker, the company's
product diversification, the relatively low risk profile of its
life products portfolio and the company's good capital position.

Fitch is concerned that the company's unit-linked investments
are concentrated in Aspis Group companies.  Fitch also
identified a significant exposure to the financial sector in
both the bond and equity portfolios while the relatively high
level of investment in real estate is an additional risk factor.

Fitch considers CV's risk management and corporate governance
framework weak.  There is no dedicated risk management team in
place and, as mentioned, the company's unit-linked investments
are highly concentrated in the other Aspis Group companies.

Although the company's accounts were qualified in 2004, the
quantum of the qualification was not in itself material.  Fitch
notes that the 2005 accounts still contained an emphasis of
matter.

CV is well positioned to benefit in the medium to long term from
the developments in the Greek life and non-life insurance
marketplace.  The company's experience in successfully
integrating six different businesses is valuable in the context
of its strategy of targeted acquisitions.  Fitch views
positively the company's balanced exposure to life and non-life
risks.

Fitch notes the diversification benefits of CV's strength in
marine business since this line is loosely correlated to the
rest of the non-life book.  A high proportion of CV's life and
health products sales are unit-linked products, which carry
lower risk.  Fitch notes the relatively high level of guarantees
on CV's long-term products; however, the agency considers that
the company's charging structure is adequate to mitigate this
potential risk.

CV's exposure to earthquake risk is significant but Fitch views
that the reinsurance program in place provides an appropriate
level of cover.  Fitch also assessed the reinsurance program in
respect of CV's other lines of business and considers it to be
adequate.  The agency notes that the company has managed to
reduce expenses and steadily improve earnings since 2003.
However, these improvements in operating performance were not
sufficient to cover the full extent of extraordinary write-offs
and tax payments.

Fitch expects strong premium growth from CV in 2006, above
management expectations of EUR135 million.  The operating
performance is expected to remain relatively low but to continue
to improve as the company benefits from lower expense ratios.
The capital position is expected to reduce in 2006 as retained
earnings will not compensate for the greater premium volume and
the purchase of 32% of Universal Life.


EMPORIKI BANK: Fitch Affirms Individual Rating at C/D
-----------------------------------------------------
Fitch Ratings placed Greece-based Emporiki Bank's Issuer Default
Rating of BBB, Short-term rating of F3 and Support rating of 2
on Rating Watch Positive.  Emporiki's Individual rating of C/D
is affirmed.

At the same time, the agency has affirmed France-based Credit
Agricole's as well as its central body at AA with Stable
Outlook, Short term F1+ and Support 1.  The Individual rating of
CA is affirmed at B.

The rating actions follow the bid offer made by CASA to acquire
the remaining 91% stake in Emporiki.  The acquisition is valued
at around EUR2.8 billion.  This transaction is going to be
financed with cash.  While the acquisition is subject to
regulatory and shareholders approval, the RWP reflects Fitch's
view that there is a high probability for CASA to acquire a
controlling stake in Emporiki.

CASA currently has an 8.8% stake in Emporiki and has been the
single largest strategic shareholder since its entry in 2000.
Emporiki also operates joint ventures with CASA in
bancassurance/life insurance and cooperates closely in asset
management, investment banking and consumer credit.

Upon the completion of the acquisition, expected by end-August
2006, Emporiki's IDR, Short-term and Support ratings, assuming
there are no counter-offers, are likely to be upgraded.  The
extent of the upgrade will depend on ultimate ownership levels
achieved and potential for institutional support.

This move fits in with CASA's international development strategy
as well as the Greek government's announcement to fully
privatize Emporiki.  CASA's action plan for Emporiki is
underpinned by five pillars: constructing a platform for
sustainable growth; improving risk management; increasing market
share, productivity and customer satisfaction; improving human
resource management; and ongoing discipline in cost control.

In Fitch's opinion, the influence of a strong international
financial group such as CA will be beneficial for Emporiki.
Also, CA is capable of absorbing this acquisition without any
significant deterioration in its overall financial performance
and solvency.

Emporiki is the fourth largest commercial bank in Greece by
total assets with some 10% of the domestic lending market.  At
end-2005 the group had 7,657 staff and 373 branches in Greece
and a limited presence in southeast Europe.

CA is not a legal entity but a cooperative banking group.  Its
42 regional banks as well as its central body CASA subscribe to
a legally binding cross-guarantee mechanism.  CA is the second-
largest banking group in Europe by equity.  Retail banking in
France represents the bulk of CA's pre-tax profits, but
corporate and investment banking, and asset management,
insurance and private banking, are significant contributors.


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


BANCA POPOLARE: Fitch Downgrades Issuer Default Rating to BB
------------------------------------------------------------
Fitch Ratings downgraded Italy-based Banca Popolare di Intra's
Issuer Default rating to BB from BBB-, Individual rating to D/E
from D and Short-term rating to B from F3.

The IDR and Short-term ratings are removed from Rating Watch
Negative.  At the same time the agency has affirmed Intra's
Support rating at 3.  A Stable Outlook is assigned as the IDR is
now at its support floor.

The downgrade of the bank's IDR reflects an increasing risk that
the expected acquisition of Intra by another Italian cooperative
will be materially delayed.  Fitch's expectations that Intra
would be acquired had underpinned the bank's IDR at investment-
grade level since the downgrade of Intra's IDR to BBB- and
Short-term rating to F3 and their placement on RWN in February
2006.  The ratings were put on RWN following large loan loss
provisions as a result of the bank's exposure to the defaulted
Finpart.

In Fitch's opinion, the delay in the acquisition process
increases the risk faced by Intra given its significantly
weakened financial situation as a result of losses stemming from
Finpart.  Intra had originally expected to receive binding
offers from prospective acquirers by early June with the
transaction to be approved by a shareholders' meeting in late
July.

However, the bank has had to postpone the final terms for the
binding offers without fixing a new date as it plans to resolve
a claim presented by the trustees of the defaulted Finpart
first.  A decision on this case is expected by June 23,
following which Intra will set a new timetable for the
acquisition process.

Despite this delay, Fitch still considers an acquisition of
Intra by on one of the four large regional cooperative banks,
Banco Popolare di Verona e Novara, Banca Popolare di Vicenza,
Veneto Banca and Credito Valtellinese are very probable.

Once a binding offer has been presented, Fitch will review
Intra's ratings with the likely result of placing Intra's IDR
and Short-term rating on Rating Watch Positive pending the
completion of the transaction.

The downgrade of Intra's Individual rating reflects further
deterioration of the bank's capital adequacy and asset quality.
Intra reported a further EUR10 million net loss in Q106 as a
result of a EUR25 million provision against legal risks after
its FY05 EUR113 million net loss.

Intra's losses have depleted its equity, demonstrated by its
tier 1 capital ratio reaching c.5.4% at end-March 2006, which
Fitch considers insufficient given the bank's large stock of
impaired loans.  Intra's reputation and corporate governance
have also suffered from recent events as the bank has, since
April 2006, lost six of its 13 board members, including the
chairman, and the general manager.

Intra is a small cooperative bank with a strong local franchise.
It operates through distribution network covering a number of
prosperous provinces in Piedmont and Lombardy, benefiting from
long-standing relationships with local families and small- and
medium-sized enterprises.


SEAT PAGINE: Fitch Places BB- on Issuer Default Rating
------------------------------------------------------
Fitch Ratings placed Seat Pagine Gialle SpA's an Issuer Default
rating of BB- with Stable Outlook.  Fitch also assigned rating
of BB to Seat's senior secured facilities, and B+ to the senior
notes issued by Lighthouse International Company S.A.

The ratings reflect:

   -- Seat's strong cash flow generation;
   -- dominant position in the Italian market;
   -- its stable position in the U.K.; and
   -- its growing presence in the directory assistance market
      across Europe.

Fitch expects operating performance to improve as post-LBO
management's refocusing of the group's activities continues.
The key constraint on ratings is Seat's high financial leverage,
with net debt/EBITDA of 5.8x and interest cover of 2.65x.

This year should mark a turnaround for Seat's Italian printed
directory business as improvements to the marketing organization
and product begin to bear fruit.  Fitch expects to see the
impact of these improvements later in 2006.

A key rating factor is the performance of this part of the
business, which has seen falling sales in the last two years due
to management's rationalization of the customer list and slower
demand amid challenging economic conditions in Italy.

Developments in online markets will also be key to Seat's future
development, even given the relatively underdeveloped use of the
Internet in Italy.  So far Seat appears to be having success in
migrating its strong position in printed directories to online,
though the process is still in its early stages and may falter.

Cash flow generation continues to be good with the business
generating Free Cash Flow of EUR317 million in 2005.  The
company is committed to debt reduction.  Net debt fell to EUR3.6
billion in FYE05 from EUR3.9 billion in FYE04 with debt
repayments proceeding ahead of mandatory amortization.  A
further EUR101 million of gross debt was prepaid in February
2006.

Seat's debt consists of a senior secured facility of EUR2.6
billion with the Royal Bank of Scotland plc and senior notes
issued by Lighthouse International Company S.A. and on-lent to
Seat.  The senior notes benefit from a number of securities,
including a share pledge over the 49.9% shares held by the
private equity sponsors in the company, though their claims are
subordinated to those of the senior secured lenders and certain
hedge counterparties in the event of default.

The BB rating assigned to the senior secured debt reflects
Fitch's experience of recoveries on this type of debt in the
defaulted bond market based on its scale and the security
package.  The B+ rating assigned to the senior notes reflects
the more limited recoveries anticipated for this instrument.

Seat announced at its FY05 results presentation that it would
seek to perform a receivables securitization program of
approximately EUR300 million.  The receipts from this would be
entirely used to prepay part of the senior secured facilities.

On the basis that this essentially represents one type of debt
being replaced by another, it is likely to have a limited effect
on credit quality beyond the mildly positive impact of a
reduction of Seat's interest costs.  The final impact cannot be
determined before the deal is concluded and the details of the
securitization are known.


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


ALTAIENERGO: Creditors Must File Claims by June 23
--------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared JSC Altaienergo insolvent on March 24.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until June 23 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Svetochnaya Str. 4
         Shemonahia
         071800 East Kazakhstan Region
         Kazakhstan
         Tel: 8 (32332) 3-12-79
              8 (30041) 4-22-05


BAKTYBEK: Kyzylorda Court Opens Bankruptcy Proceedings
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Baktybek on
April 21.

Creditors must submit written proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda Region
         Aiteke bi Str. 29
         Kyzylorda
         Kyzylorda Region
         Kazakhstan


DEN: Creditors Must File Claims by June 23
------------------------------------------
LLP Joint Kazakh-Turkish Enterprise Den has declared insolvency.
Creditors have until June 23 to submit written proofs of claim
to:

         LLP Joint Kazakh-Turkish Enterprise Den
         Neftebaznaya Str. 1
         Osakarovka
         Karaganda Region
         Kazakhstan


EKO-ASTANA-ALFA: Claims Registration Ends June 23
-------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Eko-Astana-Alfa insolvent on March 27.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until June 23 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Svetochnaya Str. 4
         Shemonahia
         071800 East Kazakhstan Region
         Kazakhstan
         Tel: 8 (32332) 3-12-79
              8 (3004) 14-22-05


KOMPANYA PAVLODAR-KONSALTING: Claims Registration Ends June 23
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Kompanya Pavlodar-Konsalting (Case No. 2-708/06)
insolvent on March 30.

Creditors have until June 23 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Katayeva Str. 24-8
         Pavlodar, Kazakhstan
         Tel: 8 (3002) 28-47-28


LENINOGOR FOREST: Proof of Claim Deadline Slated for June 23
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Leninogor Forest insolvent on March 27.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until June 23 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Svetochnaya Str. 4
         Shemonahia
         071800 East Kazakhstan Region
         Kazakhstan
         Tel: 8 (32332) 3-12-79
              8 (30041) 4-22-05


MERKATA OIL: Proof of Claim Deadline Slated for June 23
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Merkata Oil Inc. (Case no. 2-707/06) insolvent on
March 30.

Creditors have until June 23 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Katayeva Str. 24-8
         Pavlodar, Kazakhstan
         Tel: 8 (3002) 28-47-28


MIRAKOM: Creditors' Claims Due June 23
--------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Mirakom insolvent on March 30.

Creditors have until June 23 to submit written proofs of claim
to:

          The Specialized Inter-Regional
          Economic Court of Pavlodar Region
          Katayeva Str. 24-8
          Pavlodar, Kazakhstan
          Tel: 8 (3002) 28-47-28


NURLAN: Kyzylorda Court Begins Bankruptcy Proceedings
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Nurlan on
April 21.

Creditors must submit written proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda Region
         Aiteke bi Str. 29
         Kyzylorda
         Kyzylorda Region
         Kazakhstan


SULEIMEN: Kyzylorda Court Starts Bankruptcy Process
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Suleimen on
April 20.


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


M.H. INTERNATIONAL: Creditors Must File Claims by Aug. 7
--------------------------------------------------------
LLC M.H. International has declared insolvency.  Creditors have
until Aug. 7 to submit written proofs of claim to:

         LLC M.H. International
         Izmailovsky Side Street 68
         Bishkek, Kyrgyzstan
         Tel: (0-502) 32-62-20


PROMENERGOSERVIS: Proof of Claim Deadline Slated for Aug. 8
-----------------------------------------------------------
LLC Promenergoservis has declared insolvency.  Creditors have
until Aug. 8 to submit written proofs of claim to:

         LLC Promenergoservis
         Manasa Str. 28-110
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 21-99-83
              (+996 312) 95-59-25


ROOFING AND INSULATING: Claims Registration Ends Aug. 8
-------------------------------------------------------
LLC Roofing and Insulating Materials has declared insolvency.
Creditors have until Aug. 8 to submit written proofs of claim.

The company can be contacted at (+996 312) 54-08-91 or 54-10-36.


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


AMUR-INVEST: Amur Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Arbitration Court of Amur Region has commenced bankruptcy
supervision procedure on CJSC Amur-Invest.  The case was
docketed under Case No. A04-482/06-10/34 b.

The Temporary Insolvency Manager is:

         V. Dmitrov
         Section 308
         Office 2
         50 Let Oktyabrya Str. 33
         Svobodnyj
         676450, Amur Region, Russia

The Debtor can be reached at:

         CJSC Amur-Invest
         Lunacharskogo Str. 38
         Svobodnyj
         Amur Region, Russia


EAST TRADING: Altay Court Opens Bankruptcy Proceedings
------------------------------------------------------
The Arbitration Court of Altay republic commenced bankruptcy
proceedings against CJSC East Trading Society after finding it
insolvent.  The case is docketed under Case No. A02-4061/2005.

The Temporary Insolvency Manager is:

         V. Poroshkov
         Post User Box 337.
         630102 Novosibirsk, Russia

The Debtor can be reached at:

         CJSC East Trading Society
         Kommunisticheskiy Pr. 53
         Gorno-Altaysk
         Altay Republic, Russia


GENERAL MOTORS: Eyes Chevrolet SUVs in St. Petersburg by 2008
-------------------------------------------------------------
General Motors will build a greenfield manufacturing facility in
the Shushary region of St. Petersburg, Russia, to produce
Chevrolet Captiva SUVs and a new generation of compact cars from
CKD kits.

The plant will go on stream in late 2008 with initial full-year
capacity of 25,000 units.

The carmaker will begin operating in a separate SKD facility in
St. Petersburg as early as September this year.  This facility
will assemble the Chevrolet Captiva until the Shushary facility
begins production.  Total investment in the new facilities
amounts to US$115 million.

At a ground-breaking ceremony in Shushary on June 13, General
Motors Chairman and CEO Rick Wagoner said, "This project clearly
demonstrates our commitment to Russia as one of the world's
fastest growing auto markets.  With the addition of this new,
wholly-owned facility, GM and its partners will be able to
assemble more than 100,000 cars a year in Russia."

The new assembly plant on the outskirts of St. Petersburg will
employ more than 700 people who will be recruited specifically
for their ability to set up and operate a world-class production
facility.

"We are delighted that General Motors has recognized the value
of strategic investment projects in our city," said Governor of
St. Petersburg, Valentina I. Matvienko.  "We will endeavor to
repay this trust by ensuring that General Motors is satisfied
with the choice of its newest manufacturing plant.  It is my
fervent hope that General Motors has blazed a trail that its
suppliers will soon follow to enjoy the benefits the St.
Petersburg region offers."

In order to leverage the company's global manufacturing
expertise, GM's leading assembly plants will host numerous new
employees from Shushary for comprehensive training programs.

The groundbreaking ceremony for the new plant coincides with
record sales for GM in Russia.  More than 11,000 registrations
in May represent an 80 percent increase over May 2005.  "With
five brands on the market, we offer Russian customers more
choice than any other manufacturer," said Carl-Peter Forster,
President of GM Europe.  "The St. Petersburg plant and the new
Chevrolet cars it builds will give us another boost in this very
important market."

Chevrolet is GM's best-selling brand in Russia, with sales of
over 35,000 in the first five months of the year.  In 2005,
Chevrolet was the number two non-domestic brand on the Russian
market, taking over the number one position in the month of
April this year.

The separate SKD operation in the city of Saint Petersburg will
go into operation in September and have an annual capacity of
over 4000 units.  This is an interim solution that will end when
the new CKD plant in Shushary goes on stream in 2008.

GM has been active in Russia since 1992.  The St. Petersburg
project complements existing GM operations in Togliatti and
Kaliningrad.  Established in Togliatti in 2001 as the first
joint venture on the Russian automotive market, GM Avtovaz
builds the Chevrolet Niva and Viva.  GM, with partner Avtotor,
began SKD operations in Kaliningrad in 2004 and now assembles
Cadillac, Hummer and Chevrolet models.

Russia, with a population of 143 million, is one of the most
dynamic car markets in the world.  Year-on-year sales growth has
accelerated from 9 percent in 2005 to 17 percent in the first
four months of this year.  Vehicle ownership has now reached a
ratio of 178 cars to 1000 people.

                     About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *    *    *

As reported in the Troubled Company Reporter on May 9, Moody's
Investors Service placed the B3 senior unsecured rating of
General Motors Corporation under review for possible downgrade,
and affirmed the company's Corporate Family Rating at B3.  The
rating actions are in response to the company's disclosure that
it is pursuing various options to replace or amend its existing
US$5.6 billion bank credit facility, and that these options
could result in providing its bank lenders with a security
interest in certain GM assets.  GM anticipates that any credit
facility replacement or amendment will be completed by the end
of the second quarter or early in the third quarter.


KOPKULSKOYE: Novosibirsk Court Starts Bankruptcy Proceedings
------------------------------------------------------------
The Arbitration Court of Novosibirsk Region commenced bankruptcy
proceedings against CJSC Kopkulskoye after finding it insolvent.
The case is docketed under Case No. A45-17530/05-27-276.

The Insolvency Manager is:

         Mr. Ya. Gomerov
         Post User Box 325.
         Krasnoobsk-1
         630501 Novosibirsk Region, Russia

The Debtor can be reached at:

         CJSC Kopkulskoye
         Kopkul
         Kupinskiy Region
         632760 Novosibirsk Region, Russia


MB CAPITAL: Fitch Puts Long-Term B Rating on Upcoming Loan Issue
----------------------------------------------------------------
Fitch Ratings assigned MB Capital S.A.'s upcoming issue of loan
participation notes expected ratings of Long-term B and Recovery
RR4.  The notes are to be used solely for financing a loan to
Russia's Moscow Bank for Reconstruction and Development.  The
final ratings are contingent upon receipt of final documentation
conforming materially to information already received.

MBRD's obligations under the loan agreement will rank at least
pari passu with all other unsecured and unsubordinated
obligations of the bank, save those preferred by relevant
legislation.  Under Russian law, the claims of retail depositors
rank above those of other senior unsecured creditors.  At end-
2005, retail deposits accounted for 19% of MBRD's total
liabilities, according to the bank's International Financial
Reporting Standards accounts.

Furthermore, MBRD's balance sheet is dominated by related-party
transactions which, in Fitch's opinion, could give rise to
additional risks for bondholders in a default scenario, albeit
not to the extent that these would justify a lower Recovery
Rating than RR4 for the currency transaction.

Other covenants limit mergers and disposals by MBRD and its
subsidiaries.  They also stipulate that transactions between the
bank and its affiliates must be entered into on market terms,
which is to be confirmed by an independent appraiser in respect
to transactions of more than US$25 million.  MBRD has also
covenanted to maintain a total capital ratio of no less than 10%
or 12%.

The loan agreement contains a cross default clause and a
negative pledge clause, which allows for a degree of
securitization by MBRD.  In the event of such securitization,
Fitch comments that the nature and extent of any over-
collateralization would be assessed by the agency for any
potential impact on unsecured creditors.

Noteholders will benefit from a put option should a rating
downgrade result from Sistema Joint Stock Financial Corp.
ceasing to own or control 50% plus one share of voting share
capital of MBRD or no longer having the right to appoint or
remove a majority of the bank's Board of Directors.

Sistema is currently the bank's major shareholder with an
approximately 96% stake, and MBRD's Issuer Default, Short-term
and Support ratings reflect the limited probability of support
being forthcoming from Sistema in case of need.

MBRD was founded in 1993, and at end-2005 ranked among the 35
largest Russian banks by total assets.  Its parent, Sistema, a
financial industrial group, has subsidiaries in many sectors,
although its primary area of focus is telecommunications.


SIB-STEEL-MECHANIZATION: Court Opens Bankruptcy Proceedings
-----------------------------------------------------------
The Arbitration Court of Kemerovo Region commenced bankruptcy
proceedings against CJSC Sib-Steel-Mechanization after finding
it insolvent.

The case is docketed under Case No. A27-21368/2005-4.

The Insolvency Manager is:

         I. Luchshev
         Office 407
         Druzhby Str. 39
         Novokuznetsk
         654006 Kemerovo Region, Russia

The Debtor can be reached at:

         CJSC Sib-Steel-Mechanization
         Klimasenko Str. 5-3
         Novokuznetsk
         654038 Kemerovo Region, Russia


TARSKIY MEAT: Court Starts Bankruptcy Supervision
-------------------------------------------------
The Arbitration Court of Omsk Region has commenced bankruptcy
supervision procedure on OJSC Meat Combine Tarskiy.  The case
was docketed under Case No. A-46-413/2006.

The Insolvency Manager is:

         V. Evdokeevich
         K.Marksa Pr. 18/6
         Omsk, Russia

The Debtor can be reached at:

         OJSC Meat Combine Tarskiy
         Tary
         Omsk Region, Russia


TRANS-SIB-OIL: Court Starts Bankruptcy Proceedings
-------------------------------------------------
The Arbitration Court of Novosibirsk Region commenced bankruptcy
proceedings against LLC Trans-Sib-Oil after finding it
insolvent.  The case is docketed under Case No. A45-11063/
05-27-165.

The Insolvency Manager is:

         E. Bolonskiy
         Office 13
         Spartaka Str. 8/4
         630007 Novosibirsk, Russia

The Debtor can be reached at:

         LLC Trans-Sib-Oil
         Kubovaya Str. 60
         630040 Novosibirsk, Russia


PIONER: Sverdlovsk Court Commences Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Sverdlovsk Region has commenced
bankruptcy supervision procedure on OJSC Breeding Factory
Pioner.  The case is docketed under Case No. A60-650/06-S11.

The Temporary Insolvency Manager is:

         V. Kiryaev
         Vikulova Str. 35/1 -136
         620131, Ekaterinburg, Russia
         Tel: 8-912-26-22-917

The Debtor can be reached at:

         OJSC Breeding Factory Pioner
         Pionerskiy
         Talitskiy Region
         Sverdlovsk Region, Russia


VOLOVO-AGRO-PROM-KHIMIYA: Court Commences Bankruptcy Proceedings
----------------------------------------------------------------
The Arbitration Court of Lipetsk Region commenced bankruptcy
proceedings against OJSC Volovo-Agro-Prom-Khimiya (TIN
7132000433) after finding it insolvent.

The case is docketed under Case No. A36-3389/2005.

The Temporary Insolvency Manager is:

         N. Tyunin
         Zavodskaya Str. 2
         Leninskiy
         301130 Tula Region, Russia

The Debtor can be reached at:

         OJSC Volovo-Agro-Prom-Khimiya
         Sovetskaya Str. 115
         Volovo
         Volovskiy Region
         Lipetsk Region, Russia


WOOD-WORKER: Bankruptcy Hearing Slated for Dec. 13
--------------------------------------------------
The Arbitration Court of Irkutsk Region will convene on Dec. 13
at 10:00 a.m. to hear the bankruptcy proceedings against CJSC
Wood-Worker (TIN 3819008287) after finding it insolvent.

The case is docketed under Case No. A19-11497/05-37.

The Temporary Insolvency Manager is:

         T. Mineeva
         Post User Box 95
         664031 Irkutsk,

The Debtor can be reached at:

         CJSC Wood-Worker
         Krupskoy Str. 50
         Usolye-Sibirskoye
         Irkutsk Region, Russia


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


BANKINTER 2: S&P Assigns Ratings to EUR800 Million Notes
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR800 million asset-backed floating-rate
notes to be issued by Bankinter 2 PYME, Fondo de Titulizacion de
Activos, an SPE.

This is the 14th securitization undertaken by Bankinter S.A.
Bankinter 2 PYME is the second CLO of loans originated to SME
corporate clients.  This securitization comprises a mixed pool
of underlying mortgage-backed and unsecured assets.

The originator of this transaction is Bankinter, which ranks
among the top 10 Spanish banks.

The entity focuses on three main areas:

   -- retail banking;
   -- wholesale corporate and SME banking; and
   -- private banking.

The portfolio is highly seasoned, with a 26-month weighted-
average seasoning of assets.  All loans repay annuity-style, via
direct debit.

                          Ratings List
       Bankinter 2 PYME, Fondo de Titulizacion de Activos
         EUR800 Million Asset-Backed Floating-Rate Notes

              Class          Prelim.        Prelim.
                             rating         amount (Mil. EUR)
              -----          ------         ------
              A1             AAA            49.0
              A2             AAA           682.0
              B              A+             16.2
              C              BBB            27.5
              D              BB             10.7
              E (1)          CCC-           14.6

             (1) The class E notes will be issued to fund the
                 reserve fund.


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


DENIZBANK A.S.: Gets US$500 Million Loan From Bank Syndicate
------------------------------------------------------------
Denizbank A.S. has obtained a US$500 million one-year credit
facility under a syndicated loan agreement from a consortium of
20 banks from 11 countries, seeurope.net cited Anatolia news
agency.

According to the report, the total cost of the credit is 0.575
percent including interest rate, commission and LIBOR.

Denizbank is 75%-owned by Zorlu Holding with 25% publicly
traded.  The bank is a medium-sized institution with 230
branches nationwide and owns banks in Austria and Russia.

                        *     *     *

As reported in TCR-Europe on June 5, Fitch Ratings placed
Turkey-based Denizbank's local currency Issuer Default BB-,
National Long-term A and Support 4 ratings on Rating Watch
Positive, following the announcement from Belgium-based Dexia
that it is planning to acquire 75% of the bank from Zorlu
Holding.

At the same time, Fitch affirmed Denizbank's other ratings at
foreign currency Issuer Default BB-, Short-term foreign and
local currency B and Individual C/D.  The Outlook on the foreign
currency Issuer Default rating is Stable.  Fitch also affirmed
Dexia at IDR AA+ with Stable Outlook, Short-term F1+ and
Individual A/B.


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


BIKIVKA' GLASS: Court Names Oleg Shklyar as Insolvency Manager
--------------------------------------------------------------
The Economic Court of Zhitomir Region appointed Oleg Shklyar as
Liquidator/Insolvency Manager for OJSC Bikivka' Glass Products
Plant (code EDRPOU 05766132).  He can be reached at:

         Oleg Shklyar
         Room 304
         Putyatinski Square 2
         10002 Zhitomir Region, Ukraine
         Phone/Fax: (0412) 34-04-44

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 6.  The case is docketed
under Case No. 3/101 B.

The Economic Court of Zhitomir Region is located at:

         Putyatinski Square 3/65
         10002 Zhitomir Region, Ukraine

The Debtor can be reached at:

         OJSC Bikivka' Glass Products Plant
         Lenin Str. 1
         Bikivka
         Romanivskij district
         Zhitomir Region, Ukraine


BLITS: Court Begins Bankruptcy Proceedings
------------------------------------------
The Economic Court of Dnipropetrovsk Region commenced bankruptcy
proceedings against LLC Blits (code EDRPOU 13424552) insolvent
after finding it insolvent on March 17.  The case is docketed
under Case No. B 15/97/04.

The Liquidator/Insolvency Manager is:

         Mr. V. Aksuk
         a/b 1222
         Krivij Rig
         50027 Dnipropetrovsk Region, Ukraine

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region, Ukraine

The Debtor can be reached at:

         LLC Blits
         Chubar Str. 41/2
         Nikopol
         53210 Dnipropetrovsk Region, Ukraine


ENERGOTRANZIT: Court Commences Bankruptcy Proceedings
-----------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
proceedings against LLC Energotranzit (code EDRPOU 30576282)
after finding it insolvent on April 4.  The case is docketed
under Case No. 15/280-b.

The Liquidator/Insolvency Manager is:

         Dmitro Maltsev
         a/b 223
         02002 Kyiv Region
         Tel/Fax: 8 (044) 253-55-61

The Economic Court of Kyiv Region is located at:

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

The Debtor can be reached at:

         LLC Energotranzit
         Melnikov Str. 8/22
         01023 Kyiv Region, Ukraine


INTERNET BUSINESS-CENTER: Oleksandr Shevchik to Liquidate Assets
----------------------------------------------------------------
The Economic Court of Kyiv Region appointed Oleksandr Shevchik
as Liquidator/Insolvency Manager for LLC Internet Business-
Center (code EDRPOU 24369655).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 28.  The case is docketed
under Case No. 15/131-b.

The Economic Court of Kyiv Region is located at:

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

The Debtor can be reached at:

         LLC Internet Business-Center
         Metalistiv Str. 17
         03057 Kyiv Region, Ukraine


KAPELLAS: Court Names Sergij Kulchitskij as Liquidator
------------------------------------------------------
The Economic Court of Odessa Region appointed Sergij Kulchitskij
as Liquidator/Insolvency Manager for LLC Kapellas (code EDRPOU
33558046).  He can be reached at:

         Sergij Kulchitskij
         Shkilnij Lane 4/23
         Illichivsk
         68000 Odessa Region, Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 28.  The case is docketed
under Case No. 2/83-06-2811.

The Economic Court of Odessa Region is located at:

         Shevchenko Avenue 4
         65032 Odessa Region, Ukraine

The Debtor can be reached at:

         LLC Kapellas
         Shkilnij Lane 4/23
         Illichivsk
         68000 Odessa Region, Ukraine


KOMERTS-CAPITAL-PLUS: Yurij Ignatchenko to Manage Assets
--------------------------------------------------------
The Economic Court of Kyiv Region appointed Yurij Ignatchenko as
Liquidator/Insolvency Manager for LLC Komerts-Capital-Plus (code
EDRPOU 32488119).  He can be reached at:

         Kotovskij Str. 9
         Kozelshina
         Poltava Region, Ukraine
         Tel/Fax: 8 (044) 234-71-39

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 3.  The case is docketed
under Case No. 24/190-b.

The Economic Court of Kyiv Region is located at:

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

The Debtor can be reached at:

         LLC Komerts-Capital-Plus
         P. Grigorenko Str. 3-a/106
         Ukraine, Kyiv Region


SKRIMPRO: Donetsk Court Opens Bankruptcy Proceedings
----------------------------------------------------
The Economic Court of Donetsk Region commenced bankruptcy
proceedings against LLC Production Studio Skrimpro (code EDRPOU
31534259) insolvent after finding it insolvent on April 3.  The
case is docketed under Case No. 5/221 B.

The Liquidator/Insolvency Manager is:

         L. Paramonova
         Universitetska Str. 35/18
         83055 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 Production Studio Skrimpro
         Magistralna Str. 15/369
         Gorlivka
         84642 Donetsk Region, Ukraine


UKRAINIAN ENERGETIC: Court Starts Bankruptcy Proceedings
--------------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
proceedings against LLC Engineering-Technical Company 'Ukrainian
Energetic Industry' (code EDRPOU 32422635) after finding it
insolvent on April 4.  The case is docketed under Case No.
15/747-b.

The Liquidator/Insolvency Manager is:

         Volodimir Oksanich
         a/b 265
         03150 Kyiv Region, Ukraine

The Economic Court of Kyiv Region is located at:

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


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


CHARTERHOUSE FOOD: Hires Menzies as Joint Administrators
--------------------------------------------------------
Paul John Clark and Jason James Godefroy of Menzies Corporate
Restructuring were appointed joint administrators of The
Charterhouse Food Group Limited (Company Number 05509042) on
May 19.

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. MRI, which is ranked
8th amongst the leading international accounting associations,
achieved global revenues of US$1,800 million in 2003.


DURA AUTOMOTIVE: Plans to Shut Down Llaneli Facility
----------------------------------------------------
Dura Automotive Systems Inc. intends to cut 270 jobs as it seeks
to shutdown its Llanelli plant by year-end to improve overall
capacity utilization, according to published reports.

Dura's UK facility is the second plant to shutdown following the
Ontario, Canadia plant closure announced by the company in May.
The company blames competition in the motor industry for the
plant closures.

"We operate in a very competitive automotive environment and are
closely examining all of our facilities to ensure we meet our
50-cubed goals," Dura's Chairman and Chief Executive Larry
Denton disclosed in a statement.

The Associated Press said the company devised a 50-cubed
efficiency strategy in February to improve performance goals in
quality, worldwide efficiency and profitability.  This included
a restructuring plan that was directed in closing about five to
10 manufacturing facilities worldwide by the end of next year.

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc., -- http://www.duraauto.com/-- is a leading
independent designer and manufacturer of driver control systems,
seating control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer (OEM) and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

                        *     *     *

As reported by the Troubled Company Reporter on Feb. 13,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'B-' from 'B'.


EUROTUNNEL GROUP: Postpones Annual General Meeting to July 27
-------------------------------------------------------------
Eurotunnel Group has postponed its Annual General Meeting until
July 27 to address its financial restructuring.

"Eurotunnel is entirely conscious of the upset that this
postponement could cause to shareholders, with whom it shares
dissatisfaction with the delay generated, but the Group intends
to give every opportunity of success to the consensual
restructuring process," the Company said.

As reported in TCR-Europe on June 2, Eurotunnel 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.

                        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.

Eurotunnel needs to obtain approval from other creditors and
shareholders for a final agreement.  Absent a final agreement,
the Group may default in January 2007.

On April 26, Eurotunnel obtained a third extension of its credit
waiver, which calls for creditor talks to continue through
July 12.


GENERAL MOTORS: Eyes 502,000 Vehicles From Europe in 2nd Quarter
----------------------------------------------------------------
General Motors dealers in the United States sold 345,157 new
cars and trucks in May 2006, down 16% compared to year-ago
levels, reflecting continued strategic reductions in incentives
and daily rentals, which were down 28 percent.

Total car sales were down 19 percent, and truck sales were down
13 percent.  While high gas prices continue to have some impact,
consumers have responded favorably to GM's new products,
particularly the all-new 2007 Chevy Tahoe (11,689 sales),
Avalanche (1,692) and Suburban (5,128), GMC Yukon/Yukon XL
(7,965) and Cadillac Escalade (2,945) and Escalade ESV (1,097),
resulting in a combined 41 percent sales increase compared to
April.

"The overall industry in May was dampened by rising fuel prices
and interest rates.  GM is actively addressing consumers'
concerns with its segment-leading fuel economy and a pilot
program like the 'Fuel Price Protection Program,' which helps
consumers battle the uncertainty of gas price fluctuations,"
said Mark LaNeve, General Motors North America vice president,
Vehicle Sales, Service and Marketing.

A very encouraging trend was the continued success of GM's new
vehicles.  Mr. LaNeve explained, "Our launch vehicles continue
to post strong sales results, as evidenced by the sales gains of
our all-new full-size utilities and strong retail sales of
important new products including the Chevrolet Impala, HHR and
Cobalt, Buick Lucerne, Pontiac G6 and Torrent."  LaNeve added,
"Our May sales volume was not where we need it to be. It clearly
was impacted by our reduced reliance on daily rental sales and
broad-based incentive programs to drive the business."

"Our customers have told us that success in the marketplace
depends on a combination of great new products, strong brands
and segment-leading fuel economy, and that is exactly the
turnaround strategy we are executing," Mr. LaNeve said.

GM's luxury utilities posted strong sales in May, up 34 percent
compared to year-ago levels.  H3 sales led HUMMER to its
thirteenth consecutive month of year-over-year sales increases.
Total HUMMER sales were up 53 percent.  Cadillac Escalade sales
rose 50 percent in May, paced by continuing brisk demand for the
all-new 2007 model.  Cadillac Escalade ESV sales started strong
with 1,097 sold.

The newest additions to GM's small utility lineup, Chevrolet HHR
and Pontiac Torrent, helped push total small utility sales up 34
percent.

GM sports cars also posted solid May sales results, with a 44
percent improvement compared to year-ago levels.  Corvette led
the lineup with a 3.5% increase with 3,317 deliveries.  Pontiac
Solstice and Saturn Sky are selling briskly, with Solstice
remaining on dealers' lots an average of 13 days and Sky
remaining on lots 2 days.

Total sales of all GM launch vehicles were up 12.5% compared to
April and accounted for 24% of GM's total deliveries for the
month.  The success of GM's launch vehicles is another critical
component of GM's North America restructuring plan.

GM will continue to introduce an array of new vehicles
throughout 2006, including the all-new Chevrolet Silverado and
GMC Sierra full-size pickups, the fuel-efficient Saturn Vue
Green Line Hybrid to be introduced this fall, and GMC Acadia and
Saturn Outlook crossovers coming late this year.

                   Certified Used Vehicles

May sales for all certified GM brands, including GM Certified
Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Used Cars
from Saturn, Saab Certified Pre-Owned Vehicles and HUMMER
Certified Pre-Owned Vehicles, were 44,522 units, up 12 percent
from last May.  Total year-to-date certified GM sales are
220,097 units, up 2 percent from the same period last year.

GM Certified Used Vehicles, the industry's top-selling
manufacturer-certified used brand, posted 38,471 sales, up 15
percent from last May.  Year-to-date sales for GM Certified Used
Vehicles are 191,523 units, up four percent from the same period
in 2005.

Cadillac Certified Pre-Owned Vehicles posted 3,316 sales in May,
up nearly six percent from last May.  Used Cars from Saturn sold
1,845 units, down 17%.  Saab Certified Pre-Owned Vehicles sold
801 units, down nearly 13%.  In its fifth month of operation,
HUMMER Certified Pre-Owned sold 89 units.

"May proved to be another terrific month for GM Certified Used
Vehicles sales, increasing 15 percent over May 2005, marking the
third consecutive month of double-digit sales increases," LaNeve
said. "With sales of 38,471 units in May, GM Certified Used
Vehicles, the industry's top-selling certified brand, continues
to lead the certified segment and is on track to set another
all-time sales record for the category."

                  2006 Second-Quarter Production

GM North America

In May, GM North America produced 425,000 vehicles (154,000 cars
and 271,000 trucks).  This is up 17,000 units or 4 percent
compared to May 2005 when the region produced 408,000 vehicles
(150,000 cars and 258,000 trucks).  Production totals include
joint venture production of 23,000 vehicles in May 2006 and
21,000 vehicles in May 2005.

The region's 2006 second-quarter production forecast is revised
at 1.225 million vehicles (455,000 cars and 770,000 trucks), up
25,000 units from last month's guidance.  In the second quarter
of 2005 the region produced 1.247 million vehicles (458,000 cars
and 789,000 trucks).  Additionally, the region's initial 2006
third-quarter production forecast is set at 1.05 million
vehicles (400,000 cars and 650,000 trucks), down 8.4 percent
from third quarter 2005 actuals.

GM Europe

The region's 2006 second-quarter production forecast remains
unchanged at 502,000 vehicles.  In the second quarter of 2005
the region built 501,000 vehicles.  The region's initial 2006
third-quarter production forecast is set at 372,000 vehicles. In
the third quarter of 2005 the region built 412,000 vehicles.

GM Asia Pacific

GM Asia Pacific's 2006 second-quarter production forecast
remains unchanged at 504,000 vehicles.  In the second quarter of
2005 the region built 398,000 vehicles.  The region's initial
2006 third-quarter production forecast is set at 516,000
vehicles. In the third quarter of 2005 the region built 409,000
vehicles.

GM Latin America, Africa and the Middle East

The region's 2006 second-quarter production estimate remains at
215,000 vehicles.  In the second quarter of 2005 the region
built 195,000 vehicles. The region's initial 2006 third-quarter
production forecast is set at 217,000 vehicles.  In the third
quarter of 2005 the region built 207,000 vehicles.

                     About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *    *    *

As reported in the Troubled Company Reporter on May 9, Moody's
Investors Service placed the B3 senior unsecured rating of
General Motors Corporation under review for possible downgrade,
and affirmed the company's Corporate Family Rating at B3.  The
rating actions are in response to the company's disclosure that
it is pursuing various options to replace or amend its existing
US$5.6 billion bank credit facility, and that these options
could result in providing its bank lenders with a security
interest in certain GM assets.  GM anticipates that any credit
facility replacement or amendment will be completed by the end
of the second quarter or early in the third quarter.


GENERAL MOTORS: Building Chevrolet Cars in Russia by 2008
---------------------------------------------------------
General Motors will build a greenfield manufacturing facility in
the Shushary region of St. Petersburg, Russia, to produce
Chevrolet Captiva SUVs and a new generation of compact cars from
CKD kits.

The plant will go on stream in late 2008 with initial full-year
capacity of 25,000 units.

The carmaker will begin operating in a separate SKD facility in
St. Petersburg as early as September this year.  This facility
will assemble the Chevrolet Captiva until the Shushary facility
begins production.  Total investment in the new facilities
amounts to US$115 million.

At a ground-breaking ceremony in Shushary on June 13, General
Motors Chairman and CEO Rick Wagoner said, "This project clearly
demonstrates our commitment to Russia as one of the world's
fastest growing auto markets.  With the addition of this new,
wholly-owned facility, GM and its partners will be able to
assemble more than 100,000 cars a year in Russia."

The new assembly plant on the outskirts of St. Petersburg will
employ more than 700 people who will be recruited specifically
for their ability to set up and operate a world-class production
facility.

"We are delighted that General Motors has recognized the value
of strategic investment projects in our city," said Governor of
St. Petersburg, Valentina I. Matvienko.  "We will endeavor to
repay this trust by ensuring that General Motors is satisfied
with the choice of its newest manufacturing plant.  It is my
fervent hope that General Motors has blazed a trail that its
suppliers will soon follow to enjoy the benefits the St.
Petersburg region offers."

In order to leverage the company's global manufacturing
expertise, GM's leading assembly plants will host numerous new
employees from Shushary for comprehensive training programs.

The groundbreaking ceremony for the new plant coincides with
record sales for GM in Russia.  More than 11,000 registrations
in May represent an 80 percent increase over May 2005.  "With
five brands on the market, we offer Russian customers more
choice than any other manufacturer," said Carl-Peter Forster,
President of GM Europe.  "The St. Petersburg plant and the new
Chevrolet cars it builds will give us another boost in this very
important market."

Chevrolet is GM's best-selling brand in Russia, with sales of
over 35,000 in the first five months of the year.  In 2005,
Chevrolet was the number two non-domestic brand on the Russian
market, taking over the number one position in the month of
April this year.

The separate SKD operation in the city of Saint Petersburg will
go into operation in September and have an annual capacity of
over 4000 units.  This is an interim solution that will end when
the new CKD plant in Shushary goes on stream in 2008.

GM has been active in Russia since 1992.  The St. Petersburg
project complements existing GM operations in Togliatti and
Kaliningrad.  Established in Togliatti in 2001 as the first
joint venture on the Russian automotive market, GM Avtovaz
builds the Chevrolet Niva and Viva.  GM, with partner Avtotor,
began SKD operations in Kaliningrad in 2004 and now assembles
Cadillac, Hummer and Chevrolet models.

Russia, with a population of 143 million, is one of the most
dynamic car markets in the world.  Year-on-year sales growth has
accelerated from 9 percent in 2005 to 17 percent in the first
four months of this year.  Vehicle ownership has now reached a
ratio of 178 cars to 1000 people.

                     About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *    *    *

As reported in the Troubled Company Reporter on May 9, Moody's
Investors Service placed the B3 senior unsecured rating of
General Motors Corporation under review for possible downgrade,
and affirmed the company's Corporate Family Rating at B3.  The
rating actions are in response to the company's disclosure that
it is pursuing various options to replace or amend its existing
US$5.6 billion bank credit facility, and that these options
could result in providing its bank lenders with a security
interest in certain GM assets.  GM anticipates that any credit
facility replacement or amendment will be completed by the end
of the second quarter or early in the third quarter.


INQUIRY U.K.: Names Gordon Craig as Administrator
-------------------------------------------------
Gordon Craig of Cresswall Associates Limited was appointed
administrator of Inquiry U.K. Limited (Company Number 04330588)
on May 11.

The administrator can be reached at:

         Cresswall Associates Limited
         West Lancashire Investment Centre
         Maple View
         Whitemoss Business Park
         Skelmersdale
         Lancashire WN8 9TG
         United Kingdom
         Tel: 01695 712683

Inquiry U.K. Limited can be reached at:

         348 A
         Lytham Road
         Blackpool FY4 1DW
         United Kingdom


LAB (SOHO): Winds Up Operations & Appoints Liquidator
-----------------------------------------------------
The Lab (Soho) Limited is liquidating its assets after creditors
elected to wind up the company during an extraordinary general
meeting on March 31.

John Kelmanson and Elias Paourou, of The Kelmanson Partnership,
were appointed Joint Liquidators.

The company can be reached at:

         The Lab (Soho) Limited
         51 Cleveland Street
         London W1T 4JH
         United Kingdom
         Tel: 020 7631 1111
         Fax: 020 7631 0011


LOCKSHIELD PROPERTY: Hires T. Papanicola as Administrator
---------------------------------------------------------
T. Papanicola of Bond Partners LLP was appointed administrator
of Lockshield Property Surveying Services Limited (Company
Number 04824443) on May 23.

The administrator can be contacted at:

         Bond Partners LLP
         The Grange
         100 High Street
         London N14 6TG
         United Kingdom
         Tel: 020 8444 2000
         Fax: 020 8444 3400

Headquartered in Ledbury, United Kingdom, Lockshield Property
Surveying Services Limited is engaged in general construction
and civil engineering.


MAPLE PARK: Appoints Simon Thornton to Administer Assets
--------------------------------------------------------
Simon Thornton of Houghton Stone Business Recovery was appointed
administrator of Maple Park Leisure Limited (Company Number
05187200) on May 16.

The administrator can be contacted at:

         Houghton Stone Business Recovery
         The Conifers
         Filton Road
         Hambrook
         Bristol BS16 1QG
         United Kingdom
         Tel: 0117 957 9009

Maple Park Leisure Limited can be reached at:

         35 Silver Street
         Cheddar
         Somerset BS27 3LE
         United Kingdom


MERLIN'S MOBILES: Brings In Administrator From Houghton Stone
-------------------------------------------------------------
Simon Thornton of Houghton Stone Business Recovery was appointed
administrator of Merlin's Mobiles LLP (Company Number OC304302)
on May 23.

The administrator can be contacted at:

         Houghton Stone Business Recovery
         The Conifers
         Filton Road
         Hambrook
         Bristol BS16 1QG
         United Kingdom
         Tel: 0117 957 9009

Headquartered in Carmarthen, United Kingdom, Merlin's Mobiles
LLP retails mobile phones.


MIDDLEBURN LIMITED: Creditors Pass Winding Up Resolution
--------------------------------------------------------
Creditors of Middleburn Limited passed a resolution to wind up
the company's operations during an extraordinary general meeting
on March 29.

Elliot Harry Green of Oury Clark was appointed Liquidator.

The company can be reached at:

         Middleburn Limited
         6 Bentley Pk
         Blacknest
         Alton Hampshire GU344PX
         United Kingdom
         Tel: 01420 520 227
         Fax: 01420 237 96


OLDBURY NORTH: Brings In P.D. Masters as Liquidator
---------------------------------------------------
P.D. Masters of DTE Leonard Curtis was appointed Liquidator of
Oldbury North Limited after creditors decided to wind up the
company during an extraordinary general meeting on March 27.

The company can be reached at:

         Oldbury North Limited
         PO Box 3180
         Tat Bank Road
         West Midlands B69 4PG
         United Kingdom
         Tel: 0121 544 1555
         Fax: 0121 552 4267


PINEOLOGY LIMITED: Brings In Administrators from PKF
----------------------------------------------------
Kerry Bailey and Jonathan D. Newell of PKF (U.K.) LLP were
appointed joint administrators of Pineology Limited (Company
Number 03530602) on May 23.

PKF (U.K.) LLP -- http://www.pkf.co.uk/-- is one of the UK's
leading firms of accountants and business advisers, which
specializes in advising the management of developing private and
public businesses.

Headquartered in Wrexham, Pineology Limited --
http://www.pineology.co.uk/-- manufactures furniture.


SELECT RESOURCING: Names Andrew Clay as Administrator
-----------------------------------------------------
Andrew T. Clay of Andrew Michaels & Co Ltd was appointed
administrator of Select Resourcing Limited (Company Number
05443532) on May 19.

The administrator can be reached at:

         Andrew Michaels And Co Limited
         Concept House
         Brooke Street
         Cleckheaton BD19 3RY
         United Kingdom
         Tel: 01274 855530
         Fax: 01274 855540

Headquartered in Broughton Astley, United Kingdom, Select
Resourcing Limited is a recruitment agency.


SECURE ARCHIVES: Joint Liquidators Take Over Operations
-------------------------------------------------------
Jeremy Willmont and David Rolph, of Moore Stephens LLP, were
appointed Joint Liquidators of Secure Archives Limited after
creditors agreed to wind up the company on March 31.

The company can be reached at:

         Secure Archives Limited
         47-48 Chapel Street
         Rugby Warwickshire CV213EB
         United Kingdom
         Tel: 01788 572 109


SENTIRO LIMITED: Creditors Resolve to Liquidation
-------------------------------------------------
Creditors of Sentiro Limited resolved to liquidate the company's
assets during an extraordinary general meeting on March 28.

Mark Stephen Goldstein, of DCM Insolvency Service Limited, was
appointed Liquidator.

The company can be reached at:

         Sentiro Limited
         6 Cole Park View
         Twickenham Middlesex TW1 1JW
         United Kingdom
         Tel: 020 8607 8530


SHARPTONE LIMITED: Hires Joint Administrators from Menzies
----------------------------------------------------------
Paul John Clark and Jason James Godefroy of Menzies Corporate
Restructuring were appointed joint administrators of Sharptone
Limited (Company Number 03568597) on May 22.

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.  MRI, which is
ranked 8th amongst the leading international accounting
associations, achieved global revenues of US$1.8 billion in
2003.

Sharptone Limited can be reached at:

         10 St. John Street
         London EC1M 4AY
         Tel: 020 7253 7733
         Fax: 020 7253 2880


SOFA CHOICE: Brings In Liquidator From Stones & Co.
---------------------------------------------------
Sofa Choice Limited is liquidating its assets after creditors
passed a resolution to wind up the company on March 20.

Gary Stones of Stones & Co. was appointed Liquidator.

Sofa Choice Limited manufactures leather sofas and an extensive
range of fabric covered sofas and suites.

The company can be reached at:

         Sofa Choice Limited
         Unit 1
         Millers Avenue
         Brynmenyn
         Bridgend Mid Glamorgan CF329TD
         United Kingdom
         Tel: 01656 721 006
         Fax: 01656 725 404
         Web: http://wwww.classicchoice.com/
              http://wwww.sofachoice.co.uk/


SOUTH YORKSHIRE: Brings In CRG Insolvency to Administer Assets
--------------------------------------------------------------
Charles Howard Ranby-Gorwood of CRG Insolvency & Financial
Recovery was appointed administrator of South Yorkshire Road
Specialists Limited (Company Number 02066179) on May 23.

The administrator can be contacted at:

         CRG Insolvency & Financial Recovery
         Suite 4
         Alexandra Dock Business Centre
         Fishermans Wharf
         Grimsby
         Lincolnshire DN31 1UL
         United Kingdom
         Tel: 01472 250001

Headquartered in Doncaster, United Kingdom, South Yorkshire Road
Specialists Limited is engaged in road construction.


SUZIE CLAYTON: Hires Joint Liquidators from Begbies Traynor
------------------------------------------------------------
Richard Andrew Segal and Paul Michael Davis of Begbies Traynor
were appointed Joint Liquidators of Suzie Clayton Limited after
creditors resolved to liquidate the company's assets during an
extraordinary general meeting on March 30.

The company can be reached at:

         Suzie Clayton Limited
         1B Strawberry Vale
         Twickenham TW1 4RX
         United Kingdom
         Tel: 020 8607 9704
         Fax: 020 8607 9705
         Web: http://wwww.suzieclayton.com/


TOTAL STAFF: Creditors Confirm Voluntary Liquidation
----------------------------------------------------
Creditors of Total Staff Recruitment Limited confirmed the
company's voluntary liquidation during an extraordinary general
meeting on March 22.

Creditors also ratified the appointment of Derek Leslie Woolley
and Andrew Philip Wood, of The P&A Partnership, as Joint
Liquidators.

The company can be reached at:

         Total Staff Recruitment GB Limited
         600 Staniforth Road
         Sheffield S9 4LN
         United Kingdom
         Tel: 0114 243 9990


T.S.J. WOODHOUSE: Appoints Administrators from Menzies
------------------------------------------------------
Paul John Clark and Jason James Godefroy of Menzies Corporate
Restructuring were appointed joint administrators of T.S.J.
Woodhouse Limited (Company Number 00302804) on May 19.

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.  MRI, which is
ranked 8th amongst the leading international accounting
associations, achieved global revenues of US$1,800 million in
2003.

Headquartered in London, T.S.J. Woodhouse Limited wholesales
meat and meat products.


WHITE CROSS: Financial Woes Prompt Liquidation
----------------------------------------------
White Cross Systems Group Limited is winding up its operations
after creditors established the company could no longer continue
its business due to mounting debts.

Andrew Howard Beckingham and Dermot Brendan Coakley of BDO Stoy
Hayward LLP were appointed Joint Liquidators.

The company can be reached at:

         White Cross Systems Group Limited
         3A Waterside Pk
         Cookham Road
         Bracknell Berkshire RG121RB
         United Kingdom
         Tel: 01344 300 770
         Fax: 01344 301 424


X V1 LIMITED: Taps Robert James Thompson to Liquidate Assets
------------------------------------------------------------
Robert James Thompson of Rendell Thompson was appointed
Liquidator of X V1 Limited after creditors agreed to wind up the
company on March 23.

The company can be reached at:

         X V1 Limited
         Pennyhill Park Hotel
         London Road
         Bagshot Surrey GU195EU
         United Kingdom
         Tel: 01276 469 025


YELL GROUP: Competition Commission Set to Keep Price Controls
-------------------------------------------------------------
The Competition Commission is set to continue price controls on
the telephone directories business after discovering Yell Group
Plc has dominated the market, according to published reports.

The commission's provisional findings into the year-long probe
estimates that Yell still holds 75% of Britain's classified
directories advertising revenues and controls 99% of the market
with its main rivals, Thomson and BT Group Plc, Richard Wray of
The Guardian reports.

"Yell continues to hold a powerful position in this market and
we have found that competition is not working effectively,"
inquiry chairwoman Diana Guy said.

According to Adam Pasick and Dan Lalor of Reuters, Yell's price
increases are currently capped at six percentage points below
the rate of inflation, which means that the company must cut
prices annually at current inflation rates.

"We are disappointed with the provisional findings," John
Condron, Yell Group CEO, said.  "In our increasingly competitive
environment, and particularly with the rapid growth of the
Internet and the re-entry of BT there is no need for continued
regulatory involvement.  However we note that in considering
what it feels to be appropriate remedies, the CC will 'have
regard to expected changes in the market'.  We shall, of course,
actively represent our views over the next few weeks," Mr.
Condron added.

Headquartered in Reading, England, Yell Group Plc --
http://www.yellgroup.com/-- is (through its indirectly wholly
owned subsidiary Yellow Pages U.K.) the leading publisher of
classified directories in the U.K. and through its subsidiary,
Yellow Book, is a leading independent directories publisher in
the U.S.  TPI is the largest publisher of yellow and white pages
in Spain with an estimated 90% market share.

                        *     *     *

As reported in TCR-Europe on June 5, 2006, Moody's Investors
Service assigned a Ba3 corporate family rating to Yell Group plc
and withdrew the Ba2 corporate family rating at Yell Finance
B.V.

Concurrently, Moody's downgraded Yell's senior secured bank
credit facility rating to Ba3 from Ba2 and the ratings of the
senior unsecured and subordinated debt instruments to B2 from
B1.  Moody's intends to withdraw the debt ratings of Yell
Finance B.V. as the bonds get repaid due to early redemption on
June 2.  The rating outlook is stable.


* Begbies Traynor Acquires Wilson Pitts for GBP1.1 Million
----------------------------------------------------------
Begbies Traynor Group plc acquired the entire equity interests
of David Wilson and Julian Pitts, the founding partners of
Leeds-based corporate and personal insolvency firm Wilson Pitts.

Wilson Pitts's entire client base and 17 full-time staff will be
transferred with immediate effect to Begbies Traynor's
ownership.

The acquisition is for an initial cash consideration of GBP1.1
million, and under the terms of the deal, Begbies Traynor has
the option to pay an additional sum of GBP700,000 in cash or by
issuing 424,242 shares at GBP1.65 per share in the Group.  There
will be further additional payments subject to the new partners
meeting robust turnover targets.  In its last trading year,
Wilson Pitts achieved fee income in the region of GBP1.8
million.

The directors of Begbies Traynor conclude that the acquisition
should enhance earnings per share of the Group, both initially
and after any additional consideration is paid.

Wilson Pitts was founded in Leeds in 1989, and has its roots
serving the Yorkshire business community.  While it is a
provider of general corporate and personal insolvency services,
it has particularly strong contacts and experience in the
residential care home market.  However, in order to continue to
expand, Wilson and Pitts partners chose to join Begbies Traynor
for the opportunity to work on larger, more technically
challenging cases which they recognized were only possible from
high street bank referrals, a network from which Begbies already
receives considerable business.

The new Leeds office is now one of three main Group offices
serving the Yorkshire region.  Collectively, these offices have
eight licensed insolvency practitioners and over 45 professional
and support staff, and are responsible for around GBP6 million
in total annual fee income.

This latest acquisition is part of the Group's strategy to
expand its range of services and presence in the mid-corporate
and personal insolvency markets.

The Group is expected to announce its preliminary results for
the year ended April 30, 2006, on July 3.

"With three main offices in Yorkshire we now have strong
representation in this region," Ric Traynor, Executive Chairman
of Begbies Traynor, said.  "Finding a high quality acquisition
in this part of the country was a key goal this year.  We are
therefore delighted to welcome Julian and David and their
colleagues to the Group."

                        About the Firm

Begbies Traynor Group plc specializes in business insolvency
management and is becoming increasingly active in the area of
personal insolvency.  It also offers services in corporate
rescue and investigation services and has entered the field of
corporate finance.

                           *********

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.


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