TCREUR_Public/060622.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 22, 2006, Vol. 7, No. 123

                            Headlines


A U S T R I A

BALVEO BETEILIGUNG: Property Manager Declares Insufficient Funds
IVAN GULA: Claims Registration Period Ends June 28
KERI: Meeting of Creditors' Slated for June 26
PAX: Claims Registration Period Ends July 4
VIVO MOBILE: Claims Registration Period Ends July 3

WALDEN UND PARTNER: Meeting of Creditors Slated for July 3
WOHNKULTUR AM DOM: Claims Registration Period Ends July 3


F R A N C E

SPCM SA: Moody's Assigns B1 Corporate Family Rating
SPCM S.A.: S&P Assigns BB- Long-Term Corporate Credit Rating


G E R M A N Y

BS GASTRO: Creditors' Meeting Slated for July 6
E-MAC DE 2006-I: Moody's Rates EUR2.5-Mln Class F Notes at Ba3
EBM-ELEKTRO: Creditors' Meeting Slated for July 6
ELEKTRO-SCHALTANLAGEN: Creditors' Meeting Slated for July 6
GENERAL MOTORS: Employees in Europe Prepare Strike Protests

HANSMANN-BAUELEMENTE: Claims Registration Ends July 6
HENSEL GROUP: Claims Registration Ends July 7
HEYMEX GMBH: Claims Registration Ends July 7
KAMPS AG: Moody's Junks EUR325-Million 8.5% Senior Notes
MTU AERO: S&P Lifts Long-Term Corporate Credit Rating to BB+

PSCG NETWORK: Creditors' Meeting Slated for July 6
RUDOLPH BETEILIGUNGS: Claims Registration Ends July 6
VAMOS BETRIEBS: Claims Registration Ends July 7
WEGNER POLSTEREI: Claims Registration Ends July 7


I R E L A N D

EIRCOM GROUP: Issues 1.073 Billion Share Capital


I T A L Y

CIRIO FINANZIARIA: Roman Court Begins Fraud Hearings


K A Z A K H S T A N

AK-ARLAN: Creditors Must File Claims by July 3
ARNA: Creditors Must File Claims by July 3
ESENBAYEV & K: Claims Registration Ends July 3
JULDYZ & K: Kyzylorda Court Opens Bankruptcy Proceedings
KERINS TAUN: Claims Registration Ends July 3

KOMPANIA EL-KUAT: Creditors' Claims Due July 3
KORUS PLUS: Creditors' Claims Due July 3
MORTGAGE GUARANTEE: S&P Affirms BB Foreign Currency Rating
ROMUL INVEST: Mangistau Court Begins Bankruptcy Process
SAZ: Proof of Claim Deadline Slated for July 3

STROIKABELSNAB: Almaty Court Sets July 3 Claims Bar Date


K Y R G Y Z S T A N

BEKSULTAN-UG: Creditors Must File Claims by Aug. 1
FELS: Creditors' Claims Due Aug.1
SERGEK: Proof of Claim Deadline Slated for Aug. 4


L U X E M B O U R G

EVRAZ GROUP: Beneficial Owners Sell Substantial Interest
EVRAZ GROUP: Fitch Affirms BB- Sr. Unsecured & Default Ratings
ECONOMY LUXEMBOURG: Fitch Rates Upcoming Notes Issue at BB-


P O L A N D

TVN S.A.: S&P Raises Long-Term Corporate Credit Rating to BB-


R U S S I A

BANK POSHEKHONSKIY: Court Appoints Insolvency Manager
BULATNIKOVO: Court Commences Bankruptcy Supervision
INTER-GAS-OIL-SERVICE-SAMARA: E. Filipjev to Manage Assets
KAZANSKAYA MACARONI: Court Begins Bankruptcy Supervision
KOTELNICHESKOYE PEAT: Court Begins Bankruptcy Supervision

MEGA: Bankruptcy Hearing Slated for Aug. 15
OAO ROSNEFT: Summary of Voting Results on Rosneft Consolidation
PILNA-AGRO-SERVICE: Court Names P. Sedaev as Insolvency Manager
PUSHKINSKOYE: Bankruptcy Hearing Slated for July 11
SEL-KHOZ-TEKHNIKA: Court Names E. Kotkov as Insolvency Manager

SOLAGID: Court Appoints Enukashvili as Insolvency Manager
SOUTHERN TELECOM: Board Appoints Alexander Andreev as CEO
TEPLO-ENERGY: Court Names G. Nosikov to Manage Assets
TTS: Tomsk Court Starts Bankruptcy Supervision
VYATKA ICE: Court Appoints G. Turanov to Manage Assets

WOOD WORKING: Court Names V. Nikishkin as Insolvency Manager


S P A I N

SANTANDER HIPOTECARIO: Moody's Junks EUR17.6-Mln Series F Notes
SANTANDER HIPOTECARIO: S&P Assigns Junk Ratings to Class F Notes


U K R A I N E

ALFA-TELEKOM: Court Starts Bankruptcy Supervision
KIYIVINSTRUMENT: Court Names P. Kushneryov to Liquidate Assets
MELNIKIVTSI: Court Names Sergij Sklyar as Insolvency Manager
MERCURY: Ivano-Frankivsk Court Begins Bankruptcy Supervision
OCHAKIV FISH: Mikolaiv Court Starts Bankruptcy Supervision

REZONANS: Court Names Mr. S. Dyachenko to Liquidate Assets
ROBEMI: Court Names Oleg Shestopalov as Liquidator
UNIVERSAL: AR Krym Court Begins Bankruptcy Supervision


U N I T E D   K I N G D O M

AZTEC INTERIORS: Appoints Andrew Appleyard as Administrator
BAA PLC: Ferrovial Faces Tough Bondholder Talks on Takeover Deal
BERNARD WARD: Names Joint Administrators from KPMG LLP
BRITISH AIRWAYS: Trustee Sells 50,311 Units in Share Scheme
EBENISTE LIMITED: Taps P&A Partnership to Administer Assets

GENERAL MOTORS: Employees in Europe Prepare Strike Protests
GENERAL MOTORS: Moody's Rates Proposed US$4.5-Bln Facility at B2
GENERAL MOTOR: Fitch Puts BB Rating to US$4.48-Billion Bank Loan
GENERAL MOTORS: S&P Rates Proposed US$4.5-Bln Facility at B+
GIPPING CONTAINER: Hires Joint Administrators from Vantis

INTERNATIONAL MOVING: Creditors Pass Winding Up Resolution
KEIGHLEY CUSHIONS: Appoints PwC as Joint Administrators
KINDER INTERNATIONAL: Financial Woes Prompt Liquidation
LUCITE INT'L: Moody's Lowers Corporate Family Rating to B1
M. & C. LIMITED: Calls In Tenon Recovery as Administrators

MACEY & BOND: Taps Duncan R. Beat to Liquidate Assets
MERSEYSIDE ASSESSMENT: Names Colin Burke Liquidator
PILKINGTON PLC: S&P Downgrades Unsecured Debt Ratings to BB+
QUALITY CARE: Creditors Resolve to Liquidate Assets
RICHWOOD FLOORING: Names Joint Administrators from Kroll Ltd

SCENES EASY: Brings In Rogers Evans as Administrators
SWJ GROUP: Taps Paul Michael McConnel to Administer Assets
TECHNOLOGY FARM: Appoints Tony James Thompson as Administrator
WHINSTONE 2: Fitch Assigns Final BB Ratings to Class C Notes
* Fitch Remarks on Outlook for European Automotive Industry

                            *********

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


BALVEO BETEILIGUNG: Property Manager Declares Insufficient Funds
----------------------------------------------------------------
Walter Anzbock, the court-appointed property manager for LLC
Balveo Beteiligung (FN 208116 d), declared on May 11 that the
Debtor does not have enough assets to pay off its creditors.

The Land Court of St. Polten is yet to rule on the property
manager's claim.

Headquartered in Langenrohr, Austria, the Debtor declared
bankruptcy on Dec. 17, 2003 (Bankr. Case No. 27 S 540/03b).


IVAN GULA: Claims Registration Period Ends June 28
--------------------------------------------------
Creditors owed money by KEG Ivan Gula (FN 258313y) have until
June 28 to submit written proofs of claim to court-appointed
property manager Martina Simlinger-Haas at:

         Dr. Martina Simlinger-Haas
         Reisnerstrasse 31
         1030 Vienna
         Austria
         Tel: 713 99 46
         Fax: 713 99 46 22
         E-mail: ra.reisnerstr.3@aon.at

Creditors and other interested parties are encouraged to attend
the meeting at 11:15 a.m. on July 12 to consider the revision of
the rule by adoption and accountability.

The meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 12 (Bankr. Case No. 4 S 78/06g).


KERI: Meeting of Creditors' Slated for June 26
----------------------------------------------
Creditors owed money by LLC Keri (FN 264135i) are encouraged to
attend the creditors' meeting at 11:08 a.m. on June 26 to
consider the revision of the rule by adoption and
accountability.

The first creditors' meeting will be held at:

         Land Court of Eisenstadt
         Hall F
         Eisenstadt, Austria

Headquartered in Neufeld an der Leitha, Austria, the Debtor
declared bankruptcy on May 12 (Bankr. Case No. 26 S 48/06w).
Astrid Haider serves as the court-appointed property manager of
the bankrupt estate.


PAX: Claims Registration Period Ends July 4
-------------------------------------------
Creditors owed money by Trade LLC On Property Management Pax (FN
109044i) have until July 4 to submit written proofs of claim to
court-appointed property manager Susi Rathauscher at:

         Dr. Susi Rathauscher
         Gonzagagasse 15
         1010 Vienna
         Austria
         Tel: 533 28 55
         Fax: 533 28 55 28
         E-mail: office@anwaltwien.at

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on July 18 to consider the revision of
the rule by adoption and accountability.

The meeting will be held at:

         The Trade Court of Vienna
         Room 1701
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 12 (Bankr. Case No. 6 S 49/06g).  Beate Sumper represents
Dr. Rathauscher in the bankruptcy proceedings.


VIVO MOBILE: Claims Registration Period Ends July 3
---------------------------------------------------
Creditors owed money by LLC Vivo Mobile Business (FN 249636m)
have until July 3 to submit written proofs of claim to court-
appointed property manager Guenther Hodl at:

         Dr. Guenther Hodl
         Schulerstrasse 18
         1010 Vienna
         Austria
         Tel: 513 16 55
         Fax: 513 16 55 33
         E-mail: Hoedl@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the meeting at 10:40 a.m. on July 17 to consider the revision of
the rule by adoption and accountability.

The meeting will be held at:

         The Trade Court of Vienna
         Room 2102
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 12 (Bankr. Case No. 45 S 28/06f).  Katharina Widhalm-
Budak represents Dr. Hodl in the bankruptcy proceedings.


WALDEN UND PARTNER: Meeting of Creditors Slated for July 3
----------------------------------------------------------
Creditors owed money by LLC Walden und Partner (FN 182906f) are
encouraged to attend the creditors' meeting at 11:30 a.m. on
July 3 to consider the revision of the rule by adoption and
accountability.

The first creditors' meeting will be held at:

         Land Court of Innsbruck
         Conference Hall 212
         2nd Floor
         Maximilianstrasse 4
         6020 Innsbruck, Austria

Headquartered in Innsbruck, Austria, the Debtor declared
bankruptcy on May 12 (Bankr. Case No. 19 S 49/06p).  Dieter
Benko serves as the court-appointed property manager of the
bankrupt estate with Christian Holzl representing him in the
bankruptcy proceedings.


WOHNKULTUR AM DOM: Claims Registration Period Ends July 3
---------------------------------------------------------
Creditors owed money by LLC Wohnkultur am Dom Straka & Partner
(FN 231058t) have until July 3 to submit written proofs of claim
to court-appointed property manager German Storch at:

         German Storch
         Buergerstrasse 62
         4020 Linz
         Austria
         Tel: 0732/661861
         Fax: 0732/661861-19
         E-mail: ra-storch@nextra.at

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on July 17 to consider the revision of
the rule by adoption and accountability.

The first creditors' meeting will be held at:

         The Land Court of Linz
         Room 522
         5th Floor
         Linz, Austria

Headquartered in Linz, Austria, the Debtor declared bankruptcy
on May 12 (Bankr. Case No. 12 S 39/06g).


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


SPCM SA: Moody's Assigns B1 Corporate Family Rating
---------------------------------------------------
Moody's Investors Service assigned B1 corporate family rating to
SPCM S.A., a holding company for SNF group, and (P)B3 to
proposed EUR140 million senior unsecured notes to be raised by
the company.  Outlook is stable.

SNF is one of the world's leading producers of acrylate-based
water soluble polymers used in water treatment, as well as in
mining, pulp and paper and enhanced oil extraction.  The Company
was formed in 1978 as a result of a buy-out of the flocculant
business from WR Grace and developed through acquisitions and
organic growth.

The assigned B1 corporate family rating reflects:

   -- SNF's strong global market position in its key water
      treatment segment;

   -- the Company's diversified and stable global customer base
      and established distribution network;

   -- an established track-record in generating operating cash
      flow underpinned by steady growth in production volumes;

   -- well invested facilities; and

   -- balanced financial policy implemented in the past as well
      as a high historical rate of cash reinvestment and a
      commitment demonstrated by the key shareholders to the
      development of the company.

The rating also reflects:

   -- SNF's modest revenue size and relatively modest
      diversification of revenue base in comparison with its
      peers and closest competitors;

   -- exposure to highly volatile raw material prices and the
      need to continuously adjust prices, and a challenge of
      maintaining its margins in the current strong raw material
      price environment;

   -- continuous reinvestment in the facilities and the risk
      that additional CAPEX may be required in the future to
      pursue new high growth opportunities, particularly in
      enhanced oil recovery segment;

   -- elevated leverage estimated to reach x4.2 on Adjusted
      Debt/EBITDAR basis as a result of the proposed
      transaction; and

   -- SNF's historical sensitivity to USD/EURexchange rate
      fluctuations, given that the Company derives just under
      half of its revenues in the U.S.

The rating assigned to the notes reflects effective
subordination to secured bank facilities.  While both the notes
and the senior loan facility are to be raised at SPCM S.A.
level, the loan facility will benefit from the pledge of shares
in key operating companies, as well as from the assignment of
issuer's inter-company loans to the operating companies, and the
notes will be unsecured and will become due after the loan
facility matures.

The stable outlook reflects Moody's expectation that SNF
financial and operating performance will continue to be strong
in the next 12 months and that the Company will be able to
maintain its margins in a volatile raw material prices
environment.  The stable outlook is also supported by the
anticipation that the management and the shareholders of the
Company will continue to follow a balanced financial policy
while pursuing new high growth opportunities and new markets.

SNF maintains adequate liquidity, which is underpinned by funds
to be available under EUR50 million revolver facility and
EUR43 million of cash balances reported at the end of 2005.  In
2005, SNF started to generate positive free cash flow as it
completed its substantial investment program initiated in 2001.
SNF expects to continue to invest in its operations, both in the
US and in Asia, but projects positive free cash flow from 2006.

Headquartered in Andrezieux, France, SNF is one of the leading
global manufacturers of acrylate-based water-soluble polymers.
In 2005, SNF reported Net Revenues of EUR731 million (EUR593
million in 2004) and EBITDA of EUR81 million (EUR62 million in
2004).


SPCM S.A.: S&P Assigns BB- Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to France-based SPCM S.A., owner of a
group of companies that produces specialty and intermediate
water treatment chemicals.  The outlook is stable.

At the same time, Standard & Poor's assigned its 'BB-' bank loan
rating, in line with the corporate credit rating, and a recovery
rating of '2' to SPCM's EUR150 million proposed senior secured
bank facilities, indicating the expectation of substantial
recovery of principal in the event of a payment default.

SPCM's proposed EUR140 million senior unsecured notes due 2013
have been rated 'B', two notches below the corporate credit
rating.

"The ratings reflect the group's aggressive leverage following
major investments in new production facilities and a significant
share buyback tied to a minority shareholder payout," said
Standard & Poor's credit analyst Khaled Zitouni.

The ratings also take into account the group's overall
relatively small size and somewhat limited product
diversification.

SPCM owns 100% of the SNF group, comprising SNF S.A., SNF
Holding Company (USA), and sister companies.  The group is
focused on the production of polyacrylamide products used mainly
for wastewater treatment for municipalities and for paper,
mining, and other industries.

"The stable outlook reflects our expectations that SNF will post
free operating cash flow to fully adjusted net debt of about 5%,
and FFO to fully adjusted net debt of about 20%," said Mr.
Zitouni.

Higher investments, a failure to pass on higher raw material
costs to customers, or a more aggressive financial policy could
result in lower cash flow protection ratios than expected,
putting pressure on the rating.  In contrast, faster
De-leveraging, substantially and sustainably exceeding set
target ratios, could lead to the rating being raised.


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


BS GASTRO: Creditors' Meeting Slated for July 6
-----------------------------------------------
The court-appointed provisional administrator for BS Gastro
GmbH, Frank-Michael Rhode, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at
10:30 a.m. on July 6.

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

         The District Court of Bremen
         Hall 115
         Court House
         Ostertorstr. 25-31
         28195 Bremen, Germany

The Court will also verify the claims set out in the
administrator's report at 9:30 a.m. on Aug. 31 at the same
venue.

Creditors have until Aug. 8 to register their claims with the
court-appointed provisional administrator.

The District Court of Bremen opened bankruptcy proceedings
against BS Gastro GmbH on May 17.  Consequently, all pending
proceedings against the company have been automatically stayed

The Debtor can be reached at:

         BS Gastro GmbH
         Osterdeich 50
         28203 Bremen, Germany

         Attn: Nils Eric Baad, Manager
         Dobben 146
         28203 Bremen, Germany

The administrator can be reached at:

         Frank-Michael Rhode
         Graf-Moltke-Str. 62
         28211 Bremen, Germany
         Tel: 0421/3485212/213
         Fax: 0421/341078
         Web: http://www.rhode.de/
         E-mail: info@rhode.de


E-MAC DE 2006-I: Moody's Rates EUR2.5-Mln Class F Notes at Ba3
--------------------------------------------------------------
Moody's Investors Service has assigned definitive long-term
credit ratings to the Notes issued by E-MAC DE 2006-I B.V.:

   -- EUR437,000,000 Senior Class A Mortgage-Backed Notes due
      2048: Aaa;

   -- EUR27,000,000 Mezzanine Class B Mortgage-Backed Notes due
      2057: Aa2;

   -- EUR17,500,000 Junior Class C Mortgage-Backed Notes due
      2057: A1;

   -- EUR11,500,000 Subordinated Class D Mortgage-Backed Notes
      due 2057: A3;

   -- EUR7,000,000 Subordinated Class E Mortgage-Backed Notes
      due 2057: Baa2; and

   -- EUR2,500,000 Subordinated Class F Notes due 2057: Ba3.

Moody's assigned provisional ratings to these notes on May 22.

                      Transaction Structure

E-MAC DE 2006-I is the second transaction securitizing mortgage
loans originated by GMAC RFC Bank GmbH and a structural copy of
E-MAC DE 2005-I.  GMAC Bank started its business in Germany in
January 2004 and has since then originated residential mortgage
loans granted to German individuals.

The servicing of the loan portfolio will be performed by
Kreditwerk Hypotheken-Management GmbH while the special
servicing of delinquent loans will be conducted by
Rechtsanwaelte Paulus Westerwelle.

Similar to Dutch E-MAC transactions, part of the proceeds of the
A, B, C, D and E Notes will be retained by the Issuer and will
be used to purchase a further pool of mortgage loans in the
first three months after closing.  Any amounts that are retained
for pre-funding will, to the extent not applied to the purchase
of further loans, be applied to the redemption of the Notes in
August 2006.

Until May 2010 any repayments received under the mortgage loans
will be used to redeem the Notes in sequential order starting
with the Class A Notes.  In and after May 2010, the target
amortization criteria must be met in order to apply principal
funds on a targeted amortization basis.

The Class F Notes will fund the initial balance of the Reserve
Fund and will be repaid by available excess spread on the
interest payment date in May 2008 and thereafter.

The issuer enters into an interest swap agreement in order to
hedge its interest rate exposure due to the mismatch of the
fixed interest received under the securitized loans and the
floating interest payments due under the Notes.

                    Strengths and Weaknesses

The transaction benefits, among others, from several positive
features:

   -- the protection against losses through the subordination of
      the junior tranches and the availability of excess spread
      to cover losses;

   -- the Reserve Account, which is funded at closing at EUR2.5
      million and will be built up to EUR6 million by trapping
      of available excess spread; and

   -- the availability of a liquidity facility provided by
      Deutsche Bank AG for an amount equal to the higher of 3%
      of current outstanding balance of the Notes and 0.6% of
      initial balance of the Notes.

Less favorable features and their mitigants are:

   -- inter alia, that the pool has limited seasoning as the
      weighted average seasoning of the pool as of May 1 is
      eight months;

   -- the pool consists of high LTV loans which might lead to an
      above market average default frequency of the borrowers,
      and in case of default, to an above average loss severity.
      Also only 65.2% of the properties in the pool are owner
      occupied and some regional concentrations in excess of the
      German benchmark exist in certain federal states.  Due to
      the relatively small size of the pool, also a certain
      concentration on the single borrower level as the 20
      largest borrowers represent 2.34% of the preliminary pool.
      These features have improved compared to E-MAC DE 2005-I
      and have also been captured by Moody's loan-by-loan
      analysis and resulted in penalties; and

   -- about 23% of the pool amount is pre-funded, therefore the
      characteristics of the loans to be added could be
      different to the preliminary pool. The addition of pre-
      funded loans is subject to meeting the eligibility
      criteria.

The ratings address the expected loss posed to investors by the
legal final maturity of the Notes.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the rated final legal
maturity date.


EBM-ELEKTRO: Creditors' Meeting Slated for July 6
-------------------------------------------------
The court-appointed provisional administrator for EBM-Elektro-
Blitz-Mitte GmbH, Joachim Voigt-Salus, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 10:00 a.m. on July 6.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:00 a.m. on Oct. 12 at the same
venue.

Creditors have until Aug. 17 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against EBM-Elektro-Blitz-Mitte GmbH on May 23.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         EBM-Elektro-Blitz-Mitte GmbH
         Damerowstr. 18
         13187 Berlin, Germany

The administrator can be reached at:

         Joachim Voigt-Salus
         Rankestrasse 33
         10789 Berlin, Germany


ELEKTRO-SCHALTANLAGEN: Creditors' Meeting Slated for July 6
-----------------------------------------------------------
The court-appointed provisional administrator for Elektro-
Schaltanlagen-Service Knopfler GmbH, Detlef Ruediger Beckmann,
will present his first report on the Company's insolvency
proceedings at a creditors' meeting at 10:05 a.m. on July 6.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:05 a.m. on Oct. 12 at the same
venue.

Creditors have until Aug. 17 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Elektro-Schaltanlagen-Service Knopfler GmbH
on May 23.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Elektro-Schaltanlagen-Service Knopfler GmbH
         Beilsteiner Str. 51-85
         12681 Berlin, Germany

The administrator can be reached at:

         Dr. Detlef Ruediger Beckmann
         Lietzenburger Road 77
         10719 Berlin, Germany


GENERAL MOTORS: Employees in Europe Prepare Strike Protests
-----------------------------------------------------------
General Motors Corp.'s European operations will see employee
demonstrations this week in protest against the carmaker's plans
to transfer production to Asia where labor costs are cheaper
than in Europe, Bloomberg News says.

GM disclosed on May 30 that it would decide this month whether
to close its Opel factory in Ruesselsheim, Germany, noting that
it would cost the carmaker EUR500 more to produce one vehicle in
the factory compared to GM's other plants, Bloomberg relates.

According to the report, employees in Portugal held a one-day
strike on June 16 while the Company and the local government
held talks regarding the plant's future.

                     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.

                        *     *     *

Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  Moody's said the rating outlook is negative.

At the same time, Fitch Ratings has placed a rating of BB and a
Recovery Rating of RR1 to General Motor's new US$4.48 billion
senior secured bank facility.  The RR1 is based on the
collateral package and other protections that are expected to
provide full recovery in the event of a bankruptcy filing.


HANSMANN-BAUELEMENTE: Claims Registration Ends July 6
-----------------------------------------------------
Creditors of Hansmann-Bauelemente GmbH have until July 6 to
register their claims with court-appointed provisional
administrator Robert Pinter.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on July 27, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The District Court of Hameln opened bankruptcy proceedings
against Hansmann-Bauelemente GmbH on May 22.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Hansmann-Bauelemente GmbH
         Industrial Road 9
         31020 Salzhemmendorf, Germany

         Attn: Hanne Lore Hansmann, Manager
         Bakebrink 9
         31008 Elze, Germany

The administrator can be contacted at:

         Robert Pinter
         Suentelstrasse 44C
         31848 Bad Muender, Germany
         Tel: 05042/93770
         Fax: 05042/9377-19
         Web: http://www.rawapi.de/
         E-mail: Kanzlei@rawapi.de


HENSEL GROUP: Claims Registration Ends July 7
---------------------------------------------
Creditors of Hensel Group GmbH have until July 7 to register
their claims with court-appointed provisional administrator
Ingrid Trompertz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Aug. 7, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bonn
         Hall S 2.18
         William route 21
         53111 Bonn, 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 Bonn opened bankruptcy proceedings against
Hensel Group GmbH on May 10.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Hensel Group GmbH
         Aennchenstr. 10
         53177 Bonn, Germany

         Attn: Reiner Hensel, Manager
         Simrockallee 8c
         53177 Bonn, Germany

The administrator can be contacted at:

         Ingrid Trompertz
         Sternstr. 79
         53111 Bonn, Germany
         Tel: 94 59 820
         Fax: 94 59 729


HEYMEX GMBH: Claims Registration Ends July 7
--------------------------------------------
Creditors of HEYMEX GmbH have until July 7 to register their
claims with court-appointed provisional administrator Michael
Mansfeld.

Creditors and other interested parties are encouraged to attend
the meeting at 10:40 a.m. on Aug. 9, 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 Traunstein
         Meeting Room C 001
         Herzog-Otto-Str. 1
         83278 Traunstein, 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 Traunstein opened bankruptcy proceedings
against HEYMEX GmbH on May 22.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         HEYMEX GmbH
         Ponlach 33
         84529 Tittmoning, Germany

The administrator can be contacted at:

         Michael Mansfeld
         Bahnhofstr. 18
         83278 Traunstein, Germany
         Tel: 0861/986330
         Fax: 0831/9863320


KAMPS AG: Moody's Junks EUR325-Million 8.5% Senior Notes
--------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Kamps AG and its subsidiaries to Caa1 from B2.  The outlook
remains negative.

Ratings affected:

   -- B2 Corporate family rating lowered to Caa1; and

   -- B2 rating on EUR325.0 million 8.5% senior notes due 2009
      lowered to Caa1.

The downgrade reflects the significantly weaker than expected
performance of the company since the second half of 2005, in
particular in the fourth quarter, which occurred in spite of the
company's reported cost saving objectives having been met.
Moody's recognizes that Adjusted Total Debt/EBITDA for FY 2005
of about 6x is further elevated following the August sale to
Barilla of the strongly contributing Dutch business.

Moreover, operating cash flow since the beginning of 2005 has
remained weak, with heavy reliance upon disposals and third
parties, notably Barilla and local banking relationships, to
fund the business and sizeable capital expenditure requirements,
in particular the new Ludersdorf plant.  At this juncture,
Kamps' will need to address the profitability weakness if it is
to avoid depleting its cash reserves.

Moody's notes that Barilla Holding S.p.A., Kamps' majority
owner, has to-date continued to support Kamps' liquidity, but
Moody's does not factor that this source of funding will be
extended perpetually should Kamps' own performance not improve.
Kamps' liquidity currently consists of credit lines from Barilla
in addition to various bank lines.

Moody's understands that these loans currently rank pari passu
with the 2009 Senior Notes, such that no notching is being
introduced at this time, and will continue to monitor the
capital structure for potential notching implications.  Moody's
further notes that the Barilla loans make up the majority of
short-term financial obligations at Kamps, and that Barilla was
supportive in enabling Kamps to repay its Senior Notes due
September 2005 in a timely manner.

The negative outlook reflects Moody's view that without an
improvement in profitability, primarily from a reduction in
fixed costs, and in light of ongoing cash restructuring costs,
Kamps' operational cash requirements will increasingly rely on
third parties.  Moody's understands that Barilla has given
binding commitments to finance Kamps' business plan until 31
March 2007, but in Moody's opinion funding visibility beyond
that period remains limited in the current circumstances.  The
outlook could be stabilized if Kamps is able to achieve an
improvement from current margins and stem the operating cash
outflow.  Further downward movement in the ratings could occur
if Kamps' operational concerns are not addressed, which would
likely result in absorption of short-term liquidity.

Kamps AG, based in Dusseldorf, Germany, is the largest
manufacturer and supplier of bread and bakery products in
Germany.  In 2005, the company reported EUR1.2 billion and
EUR69.7 million in net revenues and EBITDA, respectively.


MTU AERO: S&P Lifts Long-Term Corporate Credit Rating to BB+
------------------------------------------------------------
Standard & Poor's Ratings raised its long-term corporate credit
rating on Germany-based aircraft engine and component
manufacturer MTU Aero Engines Holding AG, and on related entity
MTU Aero Engines Investment GmbH to 'BB+' from 'BB', reflecting
improvements in the group's operating performance.

The outlook is stable.  At the same time, the rating on MTU
Investment's subordinated debt was raised to 'BB-' from 'B+'.

"The upgrade reflects the steady progress made by the group in
improving operational performance, reducing outstanding debt,
and strengthening credit ratios in 2005 and the first quarter of
2006, as well as the strong underlying trading conditions, which
are expected to allow the group to further improve its financial
profile," said Standard & Poor's credit analyst Werner Staebein.

"We believe MTU will continue to deleverage where possible and
that the company will apply a portion of projected discretionary
cash flows to reduce financial debt."

At Dec. 31, 2005, MTU reported fully adjusted net debt of
EUR755.3 million, consisting of reported net financial debt of
EUR237.2 million, not externally funded pension obligations of
EUR442.1 million, discounted operating lease commitments of
EUR21.3 million, and guarantees for entities not fully
consolidated of EUR54.7 million.

The ratings on MTU continue to reflect the group's relatively
weak business profile, which is constrained by its reliance on
the cyclical civil aviation industry, vulnerability to the
weakness of the U.S. dollar, and its relatively modest size
compared with OEMs.  Nevertheless, MTU benefits from its leading
positions in niche markets and is protected by its long-term
strategic alliance with Pratt & Whitney engines, its
participation in engine programs through a number of risk and
revenue-sharing partnerships, and its role as a strategic
partner for the German Air Force.

"We expect that MTU will gradually improve its operating profit
and cash flows through higher civil volumes, driven by a
continuation of the air traffic recovery and rising aircraft
deliveries while at the same benefiting from reduced self-funded
R&D, " said Mr. Staeblein.

The ratings assume that MTU will attain FFO to fully adjusted
net debt of about 30% and EBITDA to gross fixed-charge coverage
of more than 5.0x in 2006 and beyond.


PSCG NETWORK: Creditors' Meeting Slated for July 6
--------------------------------------------------
The court-appointed provisional administrator for PSCG Network
Group GmbH i. L., Joachim Voigt-Salus, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 10:10 a.m. on July 6.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:10 a.m. on Oct. 12 at the same
venue.

Creditors have until Aug. 17 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against PSCG Network Group GmbH i. L. on May 23.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         PSCG Network Group GmbH i. L.
         Pheasant Road 47
         10719 Berlin, Germany

The administrator can be reached at:

         Joachim Voigt-Salus
         Rankestrasse 33
         10789 Berlin, Germany


RUDOLPH BETEILIGUNGS: Claims Registration Ends July 6
-----------------------------------------------------
Creditors of Rudolph Beteiligungs GmbH and Rudolph Beteiligungs-
und Vermogensverwaltungs GmbH have until July 6 to register
their claims with court-appointed provisional administrator
Norbert Wischermann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on July 27, 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 Hagen
         Area 283
         2nd Floor
         Main House (New Building)
         Heinitzstrasse 42
         58097 Hagen, 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 Hagen opened bankruptcy proceedings
against Rudolph Beteiligungs GmbH on May 26 and Rudolph
Beteiligungs- und Vermogensverwaltungs GmbH on May 24.
Consequently, all pending proceedings against the companies have
been automatically stayed.

The Debtor can be contacted at:

         Rudolph Beteiligungs GmbH and
         Rudolph Beteiligungs- und Vermogensverwaltungs GmbH
         Attn: Gerhard Lipinski, Manager
         Ohler Way 9 A
         58553 Halver, Germany

The administrator can be contacted at:

         Dr. Norbert Wischermann
         Untermauerstr. 22
         58332 Schwelm, Germany
         Tel: 02336/4795-0
         Fax: +49202451939


VAMOS BETRIEBS: Claims Registration Ends July 7
-----------------------------------------------
Creditors of Vamos Betriebs-GmbH have until July 7 to register
their claims with court-appointed provisional administrator Romy
Metzger.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Aug. 9, 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 Erfurt
         Hall 6
         Judicial Center Erfurt
         Rudolfstr. 46
         99092 Erfurt., 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 Erfurt opened bankruptcy proceedings
against Vamos Betriebs-GmbH on May 23.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Vamos Betriebs-GmbH
         Attn: Christian Schalldach, Manager
         Muehlhaeuser Road 80
         99092 Erfurt, Germany

The administrator can be contacted at:

         Dr. Romy Metzger
         Steigerstr. 30
         99096 Erfurt, Germany


WEGNER POLSTEREI: Claims Registration Ends July 7
-------------------------------------------------
Creditors of Wegner Polsterei und Raumausstattung GmbH have
until July 7 to register their claims with court-appointed
provisional administrator Axel Raap.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.m. on Aug. 11, 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 Norderstedt
         Hall B
         City Hall Avenue 80
         22846 Norderstedt, 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 Norderstedt opened bankruptcy proceedings
against Wegner Polsterei und Raumausstattung GmbH on May 31.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Wegner Polsterei und Raumausstattung GmbH
         Attn: Hans-Ulrich Wegner, Manager
         Luettkoppel 2
         23795 Fahrenkrug, Germany

The administrator can be contacted at:

         Axel Raap
         Herrengraben 5
         20459 Hamburg, Germany


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


EIRCOM GROUP: Issues 1.073 Billion Share Capital
------------------------------------------------
Eircom Group PLC confirmed on June 19, its issuance of share
capital consisting of:

   -- 1,073,502,571 ordinary shares of EUR0.10 each, and    --
   -- 144,166,666 convertible preference shares of EUR0.50 each,

in accordance with the City Code on Takeovers and Mergers.  The
ISIN code for eircom's ordinary share is GB0034341890.

Headquartered in Dublin, Ireland, eircom Group plc --
http://eircom.net/-- is the principal provider of fixed-line
telecommunications services in Ireland, as well as the leading
Internet service provider and, following its acquisition of
Meteor, the third largest mobile operator in Ireland.

                           *    *    *

As reported in the Troubled Company Reporter on March 3, Moody's
Investors Service assigned a Ba2 corporate family rating to
eircom Group plc.  Concurrently Moody's changed the rating
outlook to negative from stable.


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


CIRIO FINANZIARIA: Roman Court Begins Fraud Hearings
----------------------------------------------------
A judge in Rome has commenced the hearing of fraud-related
charges against 46 persons over the collapse of Cirio
Finanziaria S.p.A., the Associated Press reports.

The first of the series of hearings occurred on June 16, more
than three years after Cirio entered bankruptcy protection
following a default of over EUR1 billion in bonds.  Italian news
agency ANSA relates that the first session was marked by
thousands of disgruntled investors registering their claims.

However, ANSA notes, only a few bondholders, represented by
their respective lawyers, were present at the hearing,
apparently because they have already banded together.  ANSA also
notes the absence of the top suspects at the hearing:

   -- former Cirio CEO Sergio Cragnotti,
   -- Cragnotti's wife and three children,
   -- Capitalia S.p.A. chairman Cesare Geronzi, and
   -- former Banca Popolare Italiana CEO Gianpiero Fiorani.

According to AP, prosecutors seeking trial of the suspects claim
that the banks aided Cirio in issuing the bonds despite knowing
of the food group's financial situation.  The defendants,
however, denied the charges.

As reported in TCR-Europe on Oct 4, 2005, Roman prosecutors
following an extensive preliminary investigation, were to charge
45 people with false communication and fraudulent bankruptcy
between 1998 and 2003.

The suspects were led by:

   * the Cragnotti family: Sergio, his wife Flora Pizzichemi;
     and children Andrea, Massimo, Elisabetta, her husband
     Filippo Fucile;

   * bank managers:

     -- Angelo Brizi
     -- Michele Casella
     -- Alberto Giovannini
     -- Cesare Geronzi
     -- Angelo Fanti
     -- Pietro Celestino Locati
     -- Remo Martinelli
     -- Antonio Nottola

     for their role in Banca di Roma;

   * Rainer Masera, Luigi Maranzana e Massimo Mattera (San Paolo
     Imi);

   * Gianpiero Fiorani and Giovanni Benevento (Banca Popolare di
     Lodi);

   * Cirio group consultants:

     -- Emma Benedetti
     -- Riccardo Riccardi Bianchini
     -- Vittorio Bottazzi
     -- Ernesto Chiacchierini
     -- Tomaso Farini
     -- Riccardo Ferrero
     -- Livio Ferruzzi
     -- Alfredo Gaetani
     -- Roberto Michetti
     -- Paolo Micolini
     -- Mauro Luis Silva E Pontes Pinto
     -- Ettore Quadrani
     -- Vittorio Romano
     -- Grazia Scartaccini
     -- Ambrogio Sfondrini
     -- Lucio Velo
     -- Giuseppe Vitali

   * Mayors Antonio Petrucci, Raffaele Riva, Rossano Ruggeri,
     Francesco Scornajenchi, Gianluca Marini, Annunziato Scordo,
     Francesco Matrone and Francesco Sommaruga; and

   * Sebastiano Baudo, executive of Deloitte & Touche.

Headquartered in Rome, Italy, Cirio Finanziaria S.p.A. --
http://www.cirio.it/-- is a canned tomatoes and fruit producer.
The group was forced into liquidation after it defaulted on EUR1
billion bonds and investors rejected a restructuring plan.


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


AK-ARLAN: Creditors Must File Claims by July 3
----------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola Region
declared LLP Ak-Arlan insolvent on April 4.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Akmola Region
         Office 75
         Auelbekova Str. 126
         Kokshetau
         Akmola Region
         Kazakhstan
         Tel: 8 (3162) 25-40-67


ARNA: Creditors Must File Claims by July 3
------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Arna insolvent.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty Region
         Almatinskaya Str. 35
         Pokrovka
         Ilisky District
         Almaty Region
         Kazakhstan
         Tel: 8 (3332) 26-20-31


ESENBAYEV & K: Claims Registration Ends July 3
----------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Esenbayev & K insolvent on April 11.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty Region
         Karasai batyr Str. 15a
         Talgar
         Almaty Region
         Kazakhstan
         Tel: 8 (274) 2-73-36
              8 (3003) 21-43-31


JULDYZ & K: Kyzylorda Court Opens Bankruptcy Proceedings
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Juldyz & K
on April 26.

Proofs of claim will be accepted at:

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


KERINS TAUN: Claims Registration Ends July 3
--------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Kerins Taun Ltd. insolvent on April 10.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until July 3 to submit written proofs of claim
to:

         LLP Kerins Taun Ltd.
         Abai Ave. 20/16-18
         Abai, Kazakhstan


KOMPANIA EL-KUAT: Creditors' Claims Due July 3
----------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Kompania El-Kuat insolvent on April 11.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty Region
         Karasai batyr Str. 15a
         Talgar
         Almaty Region
         Kazakhstan
         Tel: 8 (274) 2-73-36
              8 (3003) 21-43-31


KORUS PLUS: Creditors' Claims Due July 3
----------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Korus Plus insolvent on April 12.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty Region
         Almatinskaya Str. 35
         Pokrovka
         Ilisky District
         Almaty Region
         Tel: 8 (3332) 26-20-31


MORTGAGE GUARANTEE: S&P Affirms BB Foreign Currency Rating
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on the
Mortgage Guarantee Fund of Kazakhstan JSC to positive from
stable, following the outlook revision on the Republic of
Kazakhstan, and continuing strong state support.

At the same time, the 'BB' long-term foreign currency
counterparty credit rating on the company and the 'kzA+'
Kazakhstan national scale rating were affirmed.

"The ratings on MGFK reflect the start-up nature of the company,
whose business is focused on the provision of mortgage
guarantees in Kazakhstan," said Standard & Poor's credit analyst
Felix Ejgel.

"The Kazakh mortgage sector is immature, its growth is difficult
to predict, and the inherent risks are hard to evaluate due to
the lack of empirical evidence on national mortgage default
rates."

Moreover, the company's financial performance is weak due to a
need to increase personnel spending and a low return on
investments.  The risks are partially mitigated, however, by the
support MGFK receives from the Republic of Kazakhstan, its good
liquidity, and low debt."

The rating approach applied by Standard & Poor's Ratings
Services for MGFK uses its government-supported entity criteria.
Viewing the company as a public policy-based entity, Standard &
Poor's has applied a top-down rating approach in assessing
MGFK's credit quality, which is based on the support it receives
from the national government.  The absence of a liquidity
mechanism or explicit state guarantee for the company's
liabilities, and uncertainty about the company's policy role in
the longer term explains the three-notch difference between the
ratings on MGFK and those on the Republic of Kazakhstan.

Standards & Poor's expects that the company will continue to
receive state support in the medium term.

"Capital injection until at least 2007 will help the company
strengthen its market position and improve financial indicators
without recourse to long-term debt," said Mr. Ejgel.  "We will
monitor the key performance statistics in MGFK's developing
portfolio, such as evidence on default rates and fluctuations in
house prices and values, which could affect the company's stand-
alone credit quality, and the incentives for government
support."

If Kazakhstan is upgraded, then coupled with the growing
profitability of the company's business, the ratings on MGFK may
be raised.  If the company does not manage its business
properly, however, and the level of state support decreases, the
ratings could come under pressure


ROMUL INVEST: Mangistau Court Begins Bankruptcy Process
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region commenced bankruptcy proceedings against LLP Romul
Invest.

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

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


SAZ: Proof of Claim Deadline Slated for July 3
----------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola Region
declared LLP Saz insolvent on April 7.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Akmola Region
         Office 75
         Auelbekova Str. 126
         Kokshetau
         Akmola Region
         Tel: 8 (3162) 25-40-67


STROIKABELSNAB: Almaty Court Sets July 3 Claims Bar Date
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Stroikabelsnab insolvent on April 12.

Creditors have until July 3 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty Region
         Almatinskaya Str. 35
         Pokrovka
         Ilisky District
         Almaty Region
         Tel: 8 (3332) 26-20-31


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


BEKSULTAN-UG: Creditors Must File Claims by Aug. 1
--------------------------------------------------
LLC Beksultan-ug has declared insolvency.  Creditors have until
Aug. 1 to submit written proofs of claim.

The company can be contacted at (0-502) 97-37-47.


FELS: Creditors' Claims Due Aug.1
---------------------------------
LLC Fels has declared insolvency.  Creditors have until Aug. 1
to submit written proofs of claim.

The company can be contacted at (+996 312) 97-37-47.


SERGEK: Proof of Claim Deadline Slated for Aug. 4
-------------------------------------------------
Production-Construction Commercial Firm Sergek has declared
insolvency.  Creditors have until Aug. 4 to submit written
proofs of claim to:

         Production-Construction Commercial Firm Sergek
         Zarechnaya Str. 15
         Alamudun
         Chui Region
         Kyrgyzstan
         Tel: (+996 312) 67-90-10


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


EVRAZ GROUP: Beneficial Owners Sell Substantial Interest
---------------------------------------------------------
Evraz Group S.A.'s principal beneficial owners signed a
transaction to sell a substantial indirect interest in Evraz on
June 16.  The closing of the transaction awaits receipt of
certain regulatory approvals.

The transaction will result in the transfer to Greenleas
International Holdings Limited of a 50% interest in Lanebrook
Limited, an entity controlled by the principal beneficial
shareholders of Evraz Group, which will hold around 82.67% of
the share capital of the Company.

                        About the Company

Evraz Group is one of the largest vertically integrated steel
and mining businesses with operations mainly in Russia.  In
2004, Evraz produced 13.7 million tons of crude steel.  Evraz's
principal assets include three of the leading steel plants in
Russia: Nizhny Tagil in the Urals region, and West Siberian and
ovokuznetsk (in Siberia).

                        *     *     *

Evraz Group's 8-1/4% notes due November 2015 carry Moody's
Investors Service's (P)B2 rating, Standard & Poor's B+ rating
and Fitch's BB- rating.


EVRAZ GROUP: Fitch Affirms BB- Sr. Unsecured & Default Ratings
--------------------------------------------------------------
Fitch Ratings affirmed Luxembourg-based Evraz Group S.A.'s
Issuer Default and senior unsecured ratings of BB- and its
Short-term B rating following the announcement that a company
associated with Roman Abramovich agreed to purchase an
approximate 41.34% shareholding in the group.

At the same time, the agency affirmed the BB- Issuer Default and
Short-term B ratings of Mastercroft Limited, and the BB- senior
unsecured rating of Evraz Securities SA.  The ES bonds are not
guaranteed by EG, although Mastercroft and its principal
operating subsidiaries guarantee them.

Fitch believes that the purchase of the stake by Mr. Abramovich
may signal a more expansionary growth strategy by EG.  While
affirming the various ratings at their current levels, Fitch
notes that the ratings continue to be subject to potential
future acquisition-related event risk.  There is currently
limited information regarding whether the change in shareholding
will result in a change in EG's future business strategy or
financial policies.

Should the company adopt an aggressive debt-funded acquisition
strategy, this could place pressure upon its ratings.  Fitch
previously noted evidence of a material increase in leverage as
a negative rating factor.  However, any future merger and
acquisition activity will be assessed on a case-by-case basis,
focusing both on financial implications and strategic benefits.

The Evraz group has a complex legal structure.  Fitch has
previously noted that future M&A activity could result in a
divergence of the credit profiles of EG and Mastercroft.
Acquisitions outside of Russia are expected to occur at the EG
group level, while acquisitions within Russia are expected to be
executed at the Mastercroft level.

The change in ownership of EG is an example of the fundamental
change occurring within the global steel industry marked by
continuous M&A activity over the last two years, which is
expected to continue.

Evraz is Russia's largest steel producer with FY05 production of
13.9Mt, and ranks 13th in the world.  It specializes in the
production of long-steel products, operates three steel plants
in Russia, two platemakers in Italy and the Czech Republic and
iron ore and coalmines.


ECONOMY LUXEMBOURG: Fitch Rates Upcoming Notes Issue at BB-
-----------------------------------------------------------
Fitch Ratings placed Economy Luxembourg S.A.'s upcoming issue of
step-up loan participation notes an expected foreign currency
Long-term rating of BB-.

The notes are to be used solely to finance a subordinated loan
to Turkey's Turk Ekonomi Bankasi A.S..

The issuer will only pay noteholders amounts, if any, received
from TEB under the subordinated loan agreement.  The final
rating is contingent on receipt of final documents conforming
materially to information already received.

TEB has a foreign currency Issuer Default rating of BB- with a
Positive Outlook and a local currency IDR of BB+ with a Positive
Outlook.  The expected BB- rating of the subordinated notes
reflects Fitch's standard notching practice for subordinated
instruments of issuers with IDRs of BB- or higher.

The subordinated issue rating has been notched once from TEB's
BB+ local currency rating, but as TEB's foreign currency IDR is
capped at the country ceiling of Turkey of BB-, the issue rating
for these notes is also capped at BB-.

TEB is wholly owned by TEB Financial, which is jointly owned by
BNP Paribas and the Colakoglu Group.


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


TVN S.A.: S&P Raises Long-Term Corporate Credit Rating to BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Polish TV broadcasting company TVN
S.A. to 'BB-' from 'B+', reflecting the group's improved
financial profile and continued operational momentum.

The outlook is stable.  At the same time, Standard & Poor's
raised its senior unsecured debt rating on related entity TVN
Finance PLC to 'B+' from 'B'.

"The upgrade reflects TVN's good financial and operating
performance over the past year," said Standard & Poor's credit
analyst Michael O'Brien.

"This improvement in financial performance has been driven by
strong operational performance in 2005 and a continuation of the
strong performance in the first quarter of 2006, with reported
EBITDA growth of 18% year-on-year."

The group managed to improve its adjusted total-debt-to-EBITDA
ratio to 2.9x in the 12 months to March 31, from about 3.2x for
full-year 2005.  In addition to positive free operating cash
flow generation of about PLZ78 million in full-year 2005, TVN
generated a further PLZ71 million in the first quarter of 2006.
This improvement is mainly due to strong growth in operating
cash flows and lower capital expenditures and the company is
expected to show significant cash flow improvement during 2006
compared with 2005. TVN's total lease-adjusted debt was PLZ910
million at March 31.

The proposed purchase of 100% of leading Polish Internet portal
Onet Group S.A., which is 82.4%-owned by ITI, includes a PLZ234
million cash component to buy out minorities.  This transaction
should enable both TVN and Onet to derive synergies for the
distribution of TV content over an Internet platform in the
future.

We expect TVN's good position in the Polish TV market and its
established and improved track record of high audience share
among urban viewers will allow the group to further grow its
cash flow generation.  TVN is expected to maintain lease-
adjusted total debt to EBITDA no higher than 4x through the
cycle, while maintaining positive free cash flow generation.

The ratings assume that there will be no significant change in
TVN's financial policy, although it would be expected in future
years that the group's cash flow generation will enable it to
pay dividends.  In addition, it is expected that the acquisition
of Onet will positively affect TVN's free operating cash flow
over the next 24 months.

The ratings could be raised if the company diversifies
profitability sources from its main TVN channel while continuing
to improve its financial profile.  Upside ratings potential
would also rely on ITI maintaining business and financial risk
profiles that did not place undue pressure on the resources and
cash flows of TVN in the medium to long term. Conversely, the
ratings would come under pressure in the event of a downturn in
the Polish TV advertising market significantly affecting the
visibility of TVN's cash flow generation, or in the event of
excessive calls on TVN by its majority shareholder ITI to
financially support or invest in new ventures.


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


BANK POSHEKHONSKIY: Court Appoints Insolvency Manager
-----------------------------------------------------
The Arbitration Court of Yaroslavl Region appointed State
Corporation Agency on Endowment Insurance as Insolvency Manager
for LLC Bank Poshekhonskiy.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A82-16835/05-43-B/68.

The Debtor can be reached at:

         LLC Bank Poshekhonskiy
         Lyubimskaya Str. 20-a
         Poshekhonye
         152850 Yaroslavl Region
         Russia


BULATNIKOVO: Court Commences Bankruptcy Supervision
---------------------------------------------------
The Arbitration Court of Tver Region has commenced bankruptcy
supervision procedure on CJSC Bulatnikovo.  The case is docketed
under Case No. A66-1076/2006.

The Temporary Insolvency Manager is:

         S. Skachkov
         Office 228
         Chaykovskogo Str. 9
         170034 Tver
         Russia

The Debtor can be reached at:

         CJSC Bulatnikovo
         Bulatnikovo
         Torzhokskiy Region
         Tver Region
         Russia


INTER-GAS-OIL-SERVICE-SAMARA: E. Filipjev to Manage Assets
----------------------------------------------------------
The Arbitration Court of Samara Region appointed Mr. E. Filipjev
as insolvency manager for LLC Inter-Gas-Oil-Service-Samara.  He
can be reached at:

         E. Filipjev
         Post User Box 51
         603005 N.Novgorod
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A55-29242/2005.

The Debtor can be reached at:

         LLC Inter-Gas-Oil-Service-Samara
         Samara
         Russia


KAZANSKAYA MACARONI: Court Begins Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Tatarstan Republic has commenced
bankruptcy supervision procedure on OJSC Kazanskaya Macaroni
Factory.  The case is docketed under Case No. A65-1155/2006-
SG4-26.

The Temporary Insolvency Manager is:

         V. Chenskikh
         Post User Box 54
         125009 Moscow
         Russia

The Debtor can be reached at:

         OJSC Kazanskaya Macaroni Factory
         Magistralnaya Str. 4
         Kazan
         420108 Tatarstan Republic
         Russia


KOTELNICHESKOYE PEAT: Court Begins Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Kirov Region has commenced bankruptcy
supervision procedure on Federal State Unitary Enterprise
Kotelnicheskoye Peat Enterprise (Case No. A28-45/0b-70/20).

The Temporary Insolvency Manager is:

         N. Dolgushev
         Apartment 127
         Surikova Str. 41
         610014 Kirov
         Russia

The Debtor can be reached at:

         Federal State Unitary Enterprise
         Kotelnicheskoye Peat Enterprise

         Pervomayskiy
         612605 Kirov Region
         Kotelnich-5
         Russia


MEGA: Bankruptcy Hearing Slated for Aug. 15
-------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region will convene at
1:15 p.m. on Aug. 15 to hear the bankruptcy supervision
procedure on CJSC Agro Company Mega at:

         The Arbitration Court of Nizhniy Novgorod Region
         Room 238, Department 33
         Kremlin 9
         603082 Nizhniy Novgorod
         Russia

The case is docketed under Case No. A43-2937/2006 33-13.

The Temporary Insolvency Manager is:

         L. Shevarenkov
         Apartment 16
         Lenina Pr. 57/2
         Dzerzhinsk
         606000 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         CJSC Agro Company Mega
         Arapovo
         Bogorodskiy Region
         Nizhniy Novgorod Region
         Russia


OAO ROSNEFT: Summary of Voting Results on Rosneft Consolidation
---------------------------------------------------------------
OAO Rosneft summarized the official voting results on the
Company's restructuring through the consolidation of its 12
subsidiaries.

The summation of the votes at the subsidiaries' extraordinary
shareholders meetings reveals:
                                                  Voting
  Subsidiaries                    Quorum       For      Against
  ------------                    ------      -----     -------
Rosneft-Krasnodarneftegaz        96.56%      99.92%     0.015%
Rosneft-Purneftegaz              90.8%       99.94%     0.01%
Rosneft-Sakhalinmorneftegaz      68.47%      99.7%      0.19%
Rosneft-Stavropolneftegaz        79.27%      99.64%     0.073%
Yuganskneftegaz                  100%        100%
Severnaya Neft                   100%        100%
Selkupneftegaz                   100%        100%
Rosneft-Komsomolsk Refinery      85.25%      98.03%     1.88%
Rosneft-Tuapse Refinery          88.91%      99.7%      0.1%
Rosneft-Arkhangelsknefteprodukt  92.08%      99.67%     0.1%
Rosneft-Nakhodkanefteprodukt     84.63%      98.04%     0.164%
Rosneft-Tuapsenefteprodukt       85.67%      99.22%     0.56%

With the exception of Sakhalinmorneftegaz, where there was not a
required quorum on the issue, all of Rosneft's subsidiaries
ratified the agreement on joining the head company.

In the near future, an extraordinary meeting of shareholders at
Sakhalinmorneftegaz will be held whose agenda will contain a
single question on ratification of the agreement to join
Rosneft-Sakhalinmorneftegaz with Rosneft.  Meanwhile, of those
participating in the vote on this question, 99.4% expressed
their approval.

The summation of the votes taken in absentia as part of the
joint general extraordinary meeting of shareholders in Rosneft
and its 12 subsidiaries reveals the following results.  In
accordance with the ratification of the agreements on
consolidation by the subsidiaries' shareholders, the meeting
approved amendments and addenda to the preamble of Rosneft's
charter, according to which the Company will be the successor of
the consolidated subsidiaries.  With a quorum of 99.14%,
99.9699% voted for this decision, and 0.0023% voted against.

Rosneft's consolidation is the logical conclusion to the process
of forming a unified vertically integrated oil and gas company
of international standing.  Lower costs and a more efficient
system of management will result from the consolidation, which
will make it possible for the Company to receive favorable
financing terms on global capital markets, allowing it to
increase the scale of its investments in key strategic growth
projects.

Headquartered in Moscow, OAO Rosneft --
http://www.rosneft.com/english-- produces and markets petroleum
products.  The Company explores for, extracts, refines and
markets oil and natural gas.  Rosneft produces oil in Western
Siberia, Sakhalin, the North Caucasus and the Arctic regions of
Russia.

                        *     *     *

Standard & Poor's assigned B+ ratings to Rosneft's long-term and
local foreign issuer credit, while Fitch assigned BB+ ratings to
the Company's foreign currency and local currency long-term debt
in 2005.


PILNA-AGRO-SERVICE: Court Names P. Sedaev as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
P. Sedaev as insolvency manager for OJSC Pilna-Agro-Service. He
can be reached at:

         P. Sedaev
         Office 7
         B. Pecherskaya Str. 45a
         603155 Nizhniy Novgorod
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A43-9229/2005-18-244.

The Debtor can be reached at:

         OJSC Pilna-Agro-Service
         Kalinina Str. 74
         Pilna
         Nizhniy Novgorod Region
         Russia


PUSHKINSKOYE: Bankruptcy Hearing Slated for July 11
---------------------------------------------------
The Arbitration Court of Orenburg Region will convene at 10:00
a.m. on July 11 to hear the bankruptcy supervision procedure on
CJSC Pushkinskoye (Case No. A47-233/2006-14gk) at:

         The Arbitration Court of Orenburg Region
         9th January Str. 64
         Orenburg
         Russia

The Temporary Insolvency Manager is:

         Mr. N. Stulkov
         Poymennaya Str. 20
         Solnechnyj
         460051 Orenburg
         Russia

The Debtor can be reached at:

         CJSC Pushkinskoye
         Pushkinskiy
         Krasnogvardeyskiy Region
         Orenburg Region
         Russia


SEL-KHOZ-TEKHNIKA: Court Names E. Kotkov as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
E. Kotkov as insolvency manager for OJSC Sel-Khoz-Tekhnika (Case
No. A43-33354/2005 24-521).  He can be reached at:

         E. Kotkov
         Post User Box 76
         603159 Nizhniy Novgorod
         Russia

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

The Debtor can be reached at:

         OJSC Sel-Khoz-Tekhnika
         Mekhanizatorov Str.
         Vorotynets
         Vorotynskiy Region
         Nizhniy Novgorod Region
         Russia


SOLAGID: Court Appoints Enukashvili as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Tyumen Region appointed Mr. Enukashvili
as insolvency manager for CJSC Solagid.  He can be reached at:

         Mr. Enukashvili
         Yugorsk
         Kirova Str. 10-88
         Khanty-Mansiyskiy Autonomous Region
         628260 Tyumen Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A70-6698/3-05.

The Debtor can be reached at:

         CJSC Solagid
         Respubliki Str. 230
         Tyumen
         Russia


SOUTHERN TELECOM: Board Appoints Alexander Andreev as CEO
---------------------------------------------------------
The Board of Directors for Southern Telecommunications Company
(UTK) appointed Alexander Andreev as chief executive officer and
released Georgy Romsky as General Director, at his request for
personal reasons on June 15.

"In a short time Georgy Romsky succeeded in solving the main
tasks - stabilization of the Company's financial and economic
position and creation of conditions for its further progress,"
Sergey Kuznetsov, UTK Board Chairman, said.  "No doubt,
Alexander Andreev, being an experienced executive and a truly
professional, will continue this development strategy.  He has
been working in the telecommunications sector for about thirty
years and has deserved authority with the professional
community."

"I consider it an honor to be at the head of Southern
Telecommunications Company PJSC," Mr. Andreev said.  "I thank
the Company's shareholders and Board of Directors for their
trust put in me.  I see priorities in formation of management
environment necessary for further stable development of the
Company, active expansion and promotion of modern
telecommunication services provided by UTK PJSC and enhancement
of the Company's investment appeal."

Mr. Andreev, 52, graduated from the Bonch-Bruevich Leningrad
Electrotechnical University as a telecommunications engineer.
He was General Director of OJSC Electrosvyaz of the Kaliningrad
region until 2002, and served as Regional Director of North-
Western Telecom OJSC's Kaliningrad branch thereafter.  Alexander
Andreev holds an honorary title "Master of Telecommunications".

                      About the Company

Headquartered in Krasnador, Russia, Southern Telecommunications
Co. -- http://www.stcompany.ru/-- provides local, long-
distance, and cellular telephone, paging and telegraph services.

                        *     *     *

Southern Telecommunications carries Moody's Investors' Service's
Caa1 issuer rating and B3 long-term corporate family rating
since 2004.  Standard & Poor's also assigned junk ratings to the
Company's issuer credit in 2005.


TEPLO-ENERGY: Court Names G. Nosikov to Manage Assets
-----------------------------------------------------
The Arbitration Court of Lipetsk Region appointed Mr. G. Nosikov
as insolvency manager for CJSC Teplo-Energy.

         G. Nosikov
         Office 407
         Kommunalnaya Str. 9
         398059 Lipetsk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A36-5245/2005.

The Debtor can be reached at:

         CJSC Teplo-Energy
         Poperechnyj Proezd 3
         398002 Lipetsk
         Russia


TTS: Tomsk Court Starts Bankruptcy Supervision
----------------------------------------------
The Arbitration Court of Tomsk Region has commenced bankruptcy
supervision procedure on CJSC Wood Working Combine Enterprise
TTS.  The case is docketed under Case No. A67-2681/06.

The Temporary Insolvency Manager is:

         Y. Antonets
         Govorova Str. 1A
         634057 Tomsk
         Russia

The Debtor can be reached at:

         CJSC Wood Working Combine Enterprise TTS
         Mostovaya Str. 20/2
         Tomsk
         Russia


VYATKA ICE: Court Appoints G. Turanov to Manage Assets
------------------------------------------------------
The Arbitration Court of Kirov Region appointed Mr. G. Turanov
as insolvency manager for CJSC Company Vyatka Ice (TIN
432448019784).  He can be reached at:

         G. Turanov
         Office 106
         K. Marksa Str. 21
         610020 Kirov

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A28-21/06-10/6.

The Debtor can be reached at:

         CJSC Company Vyatka Ice
         Svobody Str. 60
         610000 Kirov
         Russia


WOOD WORKING: Court Names V. Nikishkin as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Ulyanovsk Region appointed Mr. V.
Nikishkin as insolvency manager for CJSC Wood Working Combine.
He can be reached at:

         V. Nikishkin
         Post User Box 46
         Novospasskoye
         433870 Ulyanovsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A72-9531/05-21/50-6 b.

The Debtor can be reached at:

         CJSC Wood Working Combine
         Zhukovskogo Str. 6
         Dimitrovograd
         Ulyanovsk Region
         Russia


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


SANTANDER HIPOTECARIO: Moody's Junks EUR17.6-Mln Series F Notes
---------------------------------------------------------------
Moody's Investors Service assigned the following provisional
ratings to six series of residential mortgage-backed Bonos de
Titulizacion de Activos to be issued by Fondo de Titulizacion de
Activos SANTANDER HIPOTECARIO 2, a Spanish Asset Securitization
Fund created by Santander de Titulización, S.G.F.T, S.A.:

   -- EUR1.801 billion Series A notes: (P)Aaa;
   -- EUR51.8 million Series B notes: (P)Aa2;
   -- EUR32.3 million Series C notes: (P)A2;
   -- EUR49.8 million Series D notes: (P)Baa2;
   -- EUR19.6 million Series E notes: (P)Ba3; and
   -- EUR17.6 million Series F notes: (P)Caa2.

This transaction consists of the securitization of a pool of
first-lien residential mortgage loans originated and serviced by
Banco Santander Central Hispano (SCH) one of the leading Spanish
banks and with a proven track record in the securitization
market.  All of the loans comprising the collateral have a Loan-
to-Value (LTV) exceeding 80%.

The pool comprises 13,916 loans representing a provisional
portfolio of EUR2,040,785,095.  The loans are originated between
2003 and 2005, with a weighted average seasoning of
approximately 1.53 years.  The original weighted average LTV is
92.07%.  The current weighted average LTV is 88.76%.  The pool
is well diversified across Spain.

According to Moody's, this deal benefits from several strengths,
including:

   -- a swap agreement that guarantees a 65-bppa Xs spread plus
      the servicing fee in the event of SCH being replaced as
      servicer;

   -- a reserve fund that is fully funded at closing from the
      proceeds of the issue of the Series F Notes to cover any
      potential shortfall in interest and principal;

   -- an 18-month artificial write-off mechanism; and

   -- the fact that 100% of the loans are secured by first lien
      residential mortgages.

However, Moody's notes that the deal also features a number of
credit weaknesses, notably:

   -- the fact that the collateral comprises loans with an LTV
      of over 80%, which leads to a higher expected default
      frequency and more severe losses;

   -- the absence of any information on the occupancy type of
      the borrowers; and

   -- the fact that, although the deferral of interest payments
      on each of Series B, C, D and E benefits the repayment of
      the series senior to each of them, it increases the
      expected loss on Series B, C, D and E themselves.  All of
      these increased risks were reflected in Moody's credit
      enhancement calculation.

Moody's has based its ratings on:

   -- an evaluation of the underlying portfolio of mortgage
      loans securing the structure, and

   -- the transaction's structural protections, which include
      the subordination of the notes, the strength of the cash
      flows and any excess spread available to cover losses.

The ratings address the expected loss posed to investors by the
Legal Final Maturity.  Moody's ratings address only the credit
risks associated with the transaction.  Other non-credit risks
have not been addressed, but may have a significant effect on
yield to investors.  In Moody's opinion, the structure allows
for timely payment of interest and ultimate payment of principal
at par on or before the rated Final Legal Maturity date on
Series A, B, C, D and E, and for ultimate payment of interest
and principal at par on or before the rated Final Legal Maturity
date on Series F.

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions.  Upon a conclusive review
of the transaction and associated documentation, the rating
agency will endeavour to assign a definitive rating.  A
definitive rating if any may differ from a provisional rating.


SANTANDER HIPOTECARIO: S&P Assigns Junk Ratings to Class F Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR1.955 billion mortgage-backed floating-
rate notes to be issued by Fondo de Titulizacion de Activos
Santander Hipotecario 2.

In addition, an overissuance of EUR17.600 million floating-rate
notes will be issued.

Santander Hipotecario 2 will purchase mortgage transmission
certificates from the participation issuer, Banco Santander
Central Hispano, S.A., and will issue six classes of floating-
rate notes.

The class A to E notes are backed by a pool of first-ranking
mortgages secured over residential properties located in Spain
and originated by Santander.  The class F notes will fund the
reserve fund and will be repaid with excess spread.

The originator, Santander, is the largest banking group in Spain
and among the 15 largest in Europe.  It is also an experienced
originator.  This is the 23rd securitization to be originated by
the Santander group over its residential mortgage portfolio.

The main feature of this transaction is the collateral itself.
Santander Hipotecario 2 is purchasing high LTV ratio loans,
99.45% of which have LTV ratios of between 70% and 100%.
Santander reserves the less than 80% LTV ratio loans for
collateral of cedulas hipotecarias and therefore uses ineligible
collateral under the cedulas legal framework for securitization
purposes.

The transaction also features mortgage insurance on a portion of
the loans being provided by Genworth Financial Mortgage
Insurance Ltd. and AIG Europe S.A. Mortgage insurance
potentially reduces the losses incurred.

The swap agreement provides credit enhancement to the
transaction by providing additional excess spread and adjusted
notional.  The notes are weak-linked to the rating on Santander
as swap counterparty.

                         Ratings List

    Fondo de Titulizacion de Activos Santander Hipotecario 2
    EUR1.955 Billion Mortgage-Backed Floating-Rate Notes And
    An Overissuance of EUR17.600 Million Floating-Rate Notes

              Class          Prelim.        Prelim.
                             rating         amount (Mil. EUR)
              -----          ------         ------
              A              AAA           1,801.5
              B              AA-              51.8
              C              A-               32.3
              D              BBB              49.8
              E              BB               19.6
              F (1)          CCC-             17.6

         (1) The class F notes will be funding the reserve fund
             at closing.  The class F notes will be repaid
             through excess spread.


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


ALFA-TELEKOM: Court Starts Bankruptcy Supervision
-------------------------------------------------
The Economic Court of Sevastopol commenced bankruptcy
supervision procedure on LLC Alfa-Telekom (code EDRPOU 30889475)
on Feb. 14. The case is docketed under Case No. 20-5/048.

The Temporary Insolvency Manager is:

         Svitlana Bikova
         Gorpishenko Str. 92/3
         Sevastopol
         AR Krym Region
         Ukraine

The Economic Court of Sevastopol is located at:

         Pavlichenko Str. 5
         Sevastopol
         99011, AR Krym Region
         Ukraine

The Debtor can be reached at:

         LLC Alfa-Telekom
         Shosta Bastionna Str. 46-612
         Sevastopol
         AR Krym Region
         Ukraine


KIYIVINSTRUMENT: Court Names P. Kushneryov to Liquidate Assets
--------------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. P. Kushneryov as
Liquidator/Insolvency Manager for Joint LLC Kiyivinstrument
(code EDRPOU 30580042)

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 20.  The case is docketed
under Case No. 23/107-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:

         Joint LLC Kiyivinstrument:
         Sosura Str. 7
         02090 Kyiv Region
         Ukraine


MELNIKIVTSI: Court Names Sergij Sklyar as Insolvency Manager
------------------------------------------------------------
The Economic Court of Vinnitsya Region appointed Sergij Sklyar
as Liquidator/Insolvency Manager for Agricultural LLC
Melnikivtsi (code EDRPOU 31365131).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 23.  The case is docketed
under Case No. 5/255-05.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Melnikivtsi
         Melnikivtsi
         Nemiriv District
         22860 Vinnitsya Region
         Ukraine


MERCURY: Ivano-Frankivsk Court Begins Bankruptcy Supervision
------------------------------------------------------------
The Economic Court of Ivano-Frankivsk Region commenced
bankruptcy supervision procedure on OJSC MERCURY (code EDRPOU
00954372) on March 24.  The case is docketed under Case No.
B-7/76.

The Temporary Insolvency Manager is:

         Vasil Martinuk
         Pivdennij bulvar Str. 42/9
         Ivano-Frankivsk Region
         Ukraine

The Economic Court of Ivano-Frankivsk Region is located at:

         Shevchenko Str. 16a
         76000 Ivano-Frankivsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Mercury
         B. Hmelnitskij Str. 25
         Dolina
         Ivano-Frankivsk Region
         Ukraine


OCHAKIV FISH: Mikolaiv Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Economic Court of Mikolaiv Region commenced bankruptcy
supervision procedure on OJSC Ochakiv Fish Tin Combine (code
EDRPOU 00463102) on April 28.  The case is docketed under Case
No. 10/222/06.

The Temporary Insolvency Manager is:

         Volodimir Barantsov
         1-a Slobidska Str. 8-a
         54055 Mikolaiv
         Ukraine

The Economic Court of Mikolaiv Region is located at:

         Admiralska Str. 22
         54009 Mikolaiv
         Urkaine

The Debtor can be reached at:

         OJSC Ochakiv Fish Tin Combine
         Chervonih Partizan Str. 9
         Ochakiv
         Mikolaiv Region
         Ukraine


REZONANS: Court Names Mr. S. Dyachenko to Liquidate Assets
----------------------------------------------------------
The Economic Court of Chernigiv Region appointed Mr. S.
Dyachenko as Liquidator/Insolvency Manager for JSCCT Plant
Rezonans (code EDRPOU 02968312)

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 21.  The case is docketed
under Case No. 9/127 b.

The Economic Court of Chernigiv Region is located at:

         Miru Avenue 20
         14000 Chernigiv Region
         Ukraine

The Debtor can be reached at:

         JSCCT Plant Rezonans
         Lubetska Str. 187
         14021 Chernigiv Region
         Ukraine


ROBEMI: Court Names Oleg Shestopalov as Liquidator
--------------------------------------------------
The Economic Court of Zaporizhya Region appointed Oleg
Shestopalov as Liquidator/Insolvency Manager for LLC Robemi
(code EDRPOU 33050776).  He can be reached at:

         Oleg Shestopalov
         Gavrilov Str. 5/48
         69118 Zaporizhya Region
         Ukraine
         Tel: 8 (061) 220-75-58

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 10.  The case is docketed
under Case No. 19/62/06.

The Economic Court of Zaporizhya Region is located at:

         Shaumyana Str. 4
         69001 Zaporizhya Region
         Ukraine

The Debtor can be reached at:

         LLC Robemi
         Antenna Str. 11
         69057 Zaporizhya Region
         Ukraine


UNIVERSAL: AR Krym Court Begins Bankruptcy Supervision
------------------------------------------------------
The Economic Court of AR Krym Region commenced bankruptcy
supervision procedure on LLC Universal (code EDRPOU 25134204).
The case is docketed under Case No. 2-5/7175-2006.

The temporary insolvency manager is Larisa Gorulko.

The Economic Court of AR Krym Region is located at:

         Karl Marks Str. 18
         Simferopol
         95000 AR Krym Region
         Ukraine

The Debtor can be reached at:

         LLC Universal
         13 Listopada Str. 31-b
         Yevpatoriya
         97400 AR Krym Region
         Ukraine


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


AZTEC INTERIORS: Appoints Andrew Appleyard as Administrator
-----------------------------------------------------------
Andrew Appleyard of Haines Watts was appointed administrator of
Aztec Interiors Limited (Company Number 03650028) on May 26.

Haines Watts -- http://www.hwca.com/-- is a national U.K.
business advisory and accountancy firm with a network of
practices strategically placed throughout England, Wales and
Scotland, offering tax and general business advice.  Its
experienced tax accountants, business advisors and special
service teams will help its clients with every aspect of its
business.

Headquartered in Tamworth, United Kingdom, Aztec Interiors
Limited is engaged in interior decorating.


BAA PLC: Ferrovial Faces Tough Bondholder Talks on Takeover Deal
----------------------------------------------------------------
Spain's Grupo Ferrovial SA is facing tough negotiations with BAA
plc's bondholders as it attempts to finalize its GBP16.4 billion
bid for the world's largest airport operator, the Financial
Times says.

According to FT, Ferrovial could struggle to win market support
necessary to raise the long-term finance to underpin its planned
takeover deal if it fails to secure an agreement with the
bondholders.

Ferrovial expects to begin talks in the coming weeks after it
approached the Association of British Insurers in an attempt to
broker a settlement with investors, Reuters reports.

                  Acceptance Requirement Level

Bloomberg News reports that Ferrovial may cut the minimum
acceptance requirement for the takeover offer below the current
90% level.  The acceptance period will run until Monday,
June 26.

Headquartered in London, England, BAA plc -- http://www.baa.com/
-- owns and operates seven airports in the United Kingdom,
including Healthrow, the world's busiest international airport,
and Budapest Airport, serving 700 destination by around 300
airlines.  Its U.K. airports handled over 117 million
international passenger during the 12 months up to October 2005.
International passengers make up 81% of its total U.K. airport
traffic.  BAA had total assets of GBP15.2 billion and pre-tax
profits of GBP757 million for the year ended March 31, 2006.

                        *     *     *

As reported in TCR-Europe on June 9, Moody's Investors Service
downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well
as the ratings for:

   -- GBP425 million convertible bonds due August 2009;
   -- GBP424 million convertible bonds due April 2008; and
   -- GBP200 million 7.875% bonds due February 2007.

BAA's short-term rating was also downgraded to Not Prime from
Prime-3.  All other long-term debt ratings remain at Baa2.  All
long-term ratings remain on review for further downgrade.


BERNARD WARD: Names Joint Administrators from KPMG LLP
------------------------------------------------------
Jane Bronwen Moriarty and James Douglas Ernle Money of KPMG LLP
were appointed joint administrators of Bernard Ward Limited
(Company Number 00591187) on May 26.

KPMG -- http://www.kpmg.co.uk/-- in the U.K. is part of a
strong global network of member firms with 9,500 partners and
staff working in 22 offices across the U.K. providing audit, tax
and advisory services.

Bernard Ward Limited can be reached at:

         Accent Pl
         Bakewell Road
         Orton Southgate
         Peterborough PE2 6XS
         United Kingdom
         Tel: 01733 390 190


BRITISH AIRWAYS: Trustee Sells 50,311 Units in Share Scheme
-----------------------------------------------------------
Computershare Trustee Limited, the trustee of the British
Airways Employee Benefits Trustees (Jersey) Limited notified
British Airways PLC that the Trust sold on June 15 and 16,
25,125 and 25,186 ordinary shares of 25 pence each at a price of
359.25 pence and 357.50 pence per share, respectively.

The executive directors of the Company, as well as other
employees of the Company, are potential beneficiaries of the
Trust.  As such, they are deemed to be interested in the shares
held by the Trust.  Accordingly, the number of shares in which
the directors are interested decreased by 50,311 on the date of
sale.

The relevant executive directors are Willie Walsh, Martin George
and Keith Williams.

                      About the Company

Headquartered in West Drayton, England, British Airways Plc --
http://www.ba.com/-- is the UK's largest international
scheduled airline, flying to over 550 destinations.  The British
Airways group consists of British Airways Plc and a number of
subsidiary companies including in particular British Airways
Holidays Limited and British Airways Travel Shops Limited.

                        *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


EBENISTE LIMITED: Taps P&A Partnership to Administer Assets
-----------------------------------------------------------
John Russell and Christopher Michael White of The P&A
Partnership were appointed joint administrators of Ebeniste
Limited (Company Number 03550218) on May 23.

The P&A Partnership (aka Poppleton and Appleby) --
http://www.thepandapartnership.com/-- is a member firm of the
Insolvency Practitioners Association and the Association of
Business Recovery Professionals (R3) and act for all clearing
banks and a growing number of factors and asset lenders. Its
clients include multinational PLCs, SMEs, financial
institutions, accountants, solicitors and business advisors.

Headquartered in Mansfield, United Kingdom, Ebeniste Limited
manufactures furniture.


GENERAL MOTORS: Employees in Europe Prepare Strike Protests
-----------------------------------------------------------
General Motors Corp.'s European operations will see employee
demonstrations this week in protest against the carmaker's plans
to transfer production to Asia where labor costs are cheaper
than in Europe, Bloomberg News says.

GM disclosed on May 30 that it would decide this month whether
to close its Opel factory in Ruesselsheim, Germany, noting that
it would cost the carmaker EUR500 more to produce one vehicle in
the factory compared to GM's other plants, Bloomberg relates.

According to the report, employees in Portugal held a one-day
strike on June 16 while the Company and the local government
held talks regarding the plant's future.

                     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.

                        *     *     *

Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  Moody's said the rating outlook is negative.

At the same time, Fitch Ratings has placed a rating of BB and a
Recovery Rating of RR1 to General Motor's new US$4.48 billion
senior secured bank facility.  The RR1 is based on the
collateral package and other protections that are expected to
provide full recovery in the event of a bankruptcy filing.


GENERAL MOTORS: Moody's Rates Proposed US$4.5-Bln Facility at B2
----------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  The rating outlook is negative.

The downgrade of the unsecured rating concludes a review that
was initiated on May 5th when GM announced the possibility of
granting security to its bank lenders.

The ratings of General Motors Acceptance Corporation, and
Residential Capital Corporation are unaffected.

The assignment of a B2 rating to the secured credit facility
reflects Moody's view that the borrowing base provisions of the
proposed facility, in combination with the assets upon which
lenders will have a first priority lien, would afford secured
bank lenders with materially improved asset protection and
recovery prospects relative to unsecured lenders.  Assets
included in the security package include certain US receivables
and inventory, certain Canadian receivables and inventory,
certain Canadian property plant and equipment, and 65% of the
shares of Controladora GM -- the parent company of GM's
profitable Mexican operation General Motors de Mexico.

The downgrade of the unsecured debt reflects the diminution in
the asset coverage that would be available to this class of
creditors as a result of the granting of security to certain
bank lenders.  Moody's notes that under the terms of the
proposed amendment and extension, lenders who vote in favor of
the amendment will receive security in exchange for extending
the maturity of their commitment to 2011, while lenders not
voting in favor of the amendment will retain the original
maturity date of June, 2008 but will remain unsecured.  The
rating agency said that any unsecured tranches of the credit
facility would be rated Caa1, equivalent with the company's
other unsecured debt.

The affirmation of GM's B3 corporate family rating reflects
Moody's view that the granting of security to its bank lenders
does not fundamentally alter the company's overall credit risk
or expected loss profile.  Rather, with expected loss
representing the probability of default times the degree of loss
experienced in the event of default, the granting of security
represents a redistribution of the loss-given-default component
among secured and unsecured lenders.

Moody's plans to supplement its traditional assessment of
expected loss with a proposed Loss-Given-Default Methodology for
which a request for comment was circulated during January 2006.
Research by Moody's suggests that the realized credit losses on
loans have tended to be lower than losses on similarly rated
bonds.  Moody's research further suggests that the application
of a rigorous estimation model for LGD could support a higher
degree of up notching for bank facilities than has been the case
with Moody's traditional notching methodology, which ascribes
considerable importance to asset coverage.  Upon the
implementation of its LGD methodology, Moody's will adjust the
ratings of GM's secured credit facility accordingly.

GM's negative outlook reflects the considerable near-and-
intermediate-term operating challenges the company continues to
face.  These include achieving a successful reorganization of
Delphi, completing the sale of a majority interest in General
Motors Acceptance Corporation, stemming its share loss in North
America, and achieving a 2007 UAW contract that affords material
relief from its current health care obligations and jobs bank
program.

Ensuring adequate liquidity is a critical element in GM's
strategy for contending with these operational challenges.  The
company's sizable liquidity position of approximately US$22
billion in cash and short-term VEBA could benefit from the US$10
billion in up front proceeds from the GMAC sale and from
establishing an accessible credit facility of up to US$4.5
billion.

"The recent extension of the GM-Delphi buyout program helps to
lessen the likelihood of a strike at Delphi and is a modestly
positive development on the operational side.  Similarly, the
company's ability to put an accessible credit facility in place
would be a modest enhancement of its liquidity profile," said
Bruce Clark, a senior vice president with Moody's.

Despite these potentially positive developments, GM continues to
face formidable intermediate-term challenges.

"GM still has a long road ahead of it and there isn't much
likelihood of positive movement in the rating until the company
can stem its loss in market share, show that it can preserve the
profitability of its new line of large trucks and SUVs, achieve
a viable UAW contract in 2007, and get on track for generating
positive free cash flow for 2007," Mr. Clark said.

General Motors Corporation, headquartered in Detroit, Michigan,
is the world's largest automotive manufacturer.


GENERAL MOTOR: Fitch Puts BB Rating to US$4.48-Billion Bank Loan
----------------------------------------------------------------
Fitch Ratings placed a rating of BB and a Recovery Rating of RR1
to General Motor's new US$4.48 billion senior secured bank
facility.  The RR1 is based on the collateral package and other
protections that are expected to provide full recovery in the
event of a bankruptcy filing.

Although the offering of security to bank lenders moderately
impairs the position of GM's unsecured debtholders, the recovery
rating for unsecured holders still falls within the 30%-50%
range represented by the RR4 designation.  The Issuer Default
Rating is affirmed at B, and remains on Rating Watch Negative.

Fitch's ratings for GMAC remain at BB, Rating Watch Positive,
and are not affected by the new bank financing.

The bank agreement is secured by certain North American
receivables and inventory, a stock pledge of a Mexican
subsidiary, and certain PP&E in Canada.  These assets also act
as collateral for US$1.5 billion in non-loan facilities,
bringing the total amount of facilities secured by these assets
to approximately US$6 billion.  The assets pledged provide
sufficient over-collateralization to support the RR1 rating, and
borrowing base restrictions provide further protection to
secured lenders.

GM's ratings remain on Rating Watch Negative, based on short-
term concerns with the unresolved Delphi situation.  In addition
to the long-term liabilities that GM will absorb under its
guarantee of pension and OPEB obligations to Delphi workers, GM
is expected to provide other forms of near-term financial
assistance in order to prevent any significant work stoppage.
Financial assistance is expected to come in a variety of forms,
including the financing of buyout packages.

High acceptance rates of buyout packages being offered to GM and
Delphi hourly workforces could facilitate the resolution of the
Delphi situation.  However, wage and benefit programs for the
remaining hourly workforce have yet to be resolved, and Delphi
has also not resolved its large underfunded pension position and
faces a pending US$1.1 billion required contribution.

Fitch anticipates that the Rating Watch Negative status will
remain in place until a new labor agreement is reached, and
ratified by Delphi's unions.  A Delphi work stoppage that
results in a material shutdown of GM's North American production
would likely result in a downgrade of the IDR and unsecured
ratings to the CCC category.

A review of the rating could also take place in the event that
GM's agreement to sell a 51% interest in GMAC to a group of
investors does not proceed as planned, or in the event of a
further deterioration in operating results.

Recent product introductions have supported revenues to date in
2006, providing time for GM to address its fixed cost structure,
although the duration of recent sales performance remains
uncertain given the continuing decline of industry sales in the
large SUV segment. In addition, stresses in the supply base and
high commodity costs will continue to hinder the company's cost
reduction efforts.


GENERAL MOTORS: S&P Rates Proposed US$4.5-Bln Facility at B+
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed US$4.48 billion senior
bank facility, expiring 2011, with a recovery rating of '1'.

The bank loan is rated one notch higher than the corporate
credit rating.  This and the '1' recovery rating indicate that
lenders can expect full recovery of principal in the event of a
payment default.

At the same time, Standard & Poor's lowered its senior unsecured
debt rating on GM to 'B-' from 'B'.  The downgrade of the
unsecured debt stems from the pending secured bank transaction,
which disadvantages the unsecured debt.  All ratings on GM,
including the 'B+' bank loan rating -- but excluding the '1'
recovery rating -- are on CreditWatch with negative
implications.

The new secured facility provides the company with approximately
the same size bank facility as its existing US$5.6 billion
facility, but with more certain access and a longer maturity.
Unlike the previous unsecured facility, we would expect GM to
borrow from time to time under the new revolving credit facility
for operating needs.  S&P estimates that the absolute recovery
prospects for the unsecured creditors are in the mid-50% area.
In addition, the disadvantage to the unsecured debtholders is
reflected by priority claims to adjusted assets in the low 20%
area.

S&P expects GM's ratings to remain on CreditWatch for several
more months.  Court hearings on Delphi Corp.'s motion to reject
its labor contracts have now been adjourned until Aug. 11, and
hearings on Delphi's request to reject unprofitable supply
contracts with GM have been postponed also until Aug. 11.

S&P expects negotiations between Delphi, the United Auto
Workers, and GM to continue, however.  Still, S&P could lower
GM's ratings at any time if evolving events at Delphi warrant --
and an interim downgrade is possible prior to resolution of the
CreditWatch.  Although the proposed bank facility is considered
an incremental positive for GM's liquidity, even prior to
establishment of the new bank facility, S&P believes GM's
liquidity should remain adequate to meet near-term funding
requirements.

Ratings List:

* General Motors Corp.
      Corporate credit rating           B/Watch Neg/B-3

   -- Rating Assigned

      US$4.48 billion secured bank loan   B+/Watch Neg
      Recovery rating                     1

   -- Rating Lowered                  To            From
                                      --            ----
      Senior unsecured debt           B-/Watch Neg  B/Watch Neg

   -- Ratings Remaining On CreditWatch With Negative
      Implications

      Corporate credit rating           B/Watch Neg
      Short-term rating                 B-3/Watch Neg


GIPPING CONTAINER: Hires Joint Administrators from Vantis
---------------------------------------------------------
Geoffrey Paul Rowley and Nicholas Hugh O'Reilly of Vantis were
appointed joint administrators of Gipping Container Services
Limited (Company Number 03843122) on May 25.

Headquartered in West Sussex, Vantis Numerica (nka Vantis plc) -
- http://www.vantisplc.com/-- provides accounting, business and
tax advisory services in the United Kingdom.

Headquartered in Felixstowe, Suffolk Gipping Container Services
Limited is engaged in freight distribution.


INTERNATIONAL MOVING: Creditors Pass Winding Up Resolution
----------------------------------------------------------
Creditors of International Moving Systems Limited passed a
resolution to wind up the company's operations during an
extraordinary general meeting on April 4.

William Antony Batty, of Antony Batty & Co, was appointed
Liquidator.

The company can be reached at:

         International Moving Systems Limited
         Jacks Hill Farm
         Jacks Hill
         Graveley Hitchin
         Hertfordshire SG4 7EQ
         United Kingdom
         Tel: 01462 674 444
         Fax: 01462 671 414


KEIGHLEY CUSHIONS: Appoints PwC as Joint Administrators
-------------------------------------------------------
David Malcolm Walker and Ian David Green of
PricewaterhouseCoopers LLP were appointed joint administrators
of Keighley Cushions Limited (Company Number 02587486) on
May 25.

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

Keighley Cushions -- http://www.keighley-cushions.co.uk/-- is a
family run business, with 25 years of knowledge and experience
of cushion production.


KINDER INTERNATIONAL: Financial Woes Prompt Liquidation
-------------------------------------------------------
Kinder International Systems Limited is winding up its
operations after creditors established the company could no
longer continue its business due to mounting debts.

M.C. Bowker of Unity Business Services LLP was appointed
Liquidator.

The company can be reached at:

         Kinder International Systems Limited
         2 Newby Road
         Hazel Grove
         Stockport Cheshire SK7 5AS
         United Kingdom
         Tel: 0161 483 8166


LUCITE INT'L: Moody's Lowers Corporate Family Rating to B1
-----------------------------------------------------------
Moody's Investors Service downgraded Lucite International Group
Holdings Limited corporate family rating to B1 from Ba3 and
existing senior unsecured notes at Lucite International Finance
Plc to B3 from B2.

Moody's assigned (P)B1 rating to the proposed secured bank
facilities at Lucite International US Finco Limited and Lucite
International Finco Limited that are intended to refinance
Company's existing debt.  Upon repayment and cancellation of the
existing notes, Moody's will withdraw the respective rating.

The rating action was prompted by:

   -- Lucite's announced changes to its capital structure; and

   -- the subsequent expected increase in the level of total
      debt.

This concludes the review initiated on June 8.  Outlook on all
ratings is stable.

Following its LBO in 1999, operating and financial performance
of Lucite International has improved significantly and allowed
the Company to strengthen its balance sheet and de-leverage from
the peak level of approximately x6.2 on a Total Debt / EBITDA
basis in 2001 to approximately x3.2 at the end of 2005.  The
lowering of the corporate family rating by one notch principally
reflects the absolute level of debt to be assumed by the Company
as a result of the refinancing, bringing Net Debt / EBITDA to
x4.6 and Total Adjusted Debt / EBITDAR to x5.7.

The rating also reflects the significant CAPEX planned by the
group in 2006-2008 when the new Alpha plant will be constructed
and the immediate effect the program will have on Lucite's FCF,
which is expected to be negative during the build-out period of
2006-2007.  The Company's Cash flow may be further impacted in
the future by the payment of EUR25 million EU fine that has been
recently announced and is being reviewed by the Company.

Furthermore, Moody's notes that Lucite's margins remain
dependent on the evolution of raw material prices.  From 2003 to
2005, raw material prices have continued to grow driven by
rising oil prices, whilst natural gas prices escalated both in
the US and U.K. in Q4'05-1Q'06 z.  While Moody's notes that to
date increases in raw material costs were mostly passed to
Lucite's customers, margins are expected to remain under
considerable pressure.

The B1 corporate family rating also reflects:

   -- Lucite's robust operating and financial performance since
      the buy-out in 1999;

   -- the group's continuous cost reduction measures that
      underpin its competitive cost position;

   -- the group's leading global position and increasing
      presence in high growth low costs areas;

   -- prudent financial management and track-record of
      successful deleveraging; and

   -- opportunities that are expected to arise from the
      commissioning of a new MMA plant through the Alpha
      process, as well as anticipated cost advantages that
      should further support Lucite's margins and business
      position in the future.

Moody's stable outlook reflects an overall expectation of a
balanced business environment for the group.  Given a sizable
capital expenditure planned by the group, Moody's expects Lucite
to maintain its leverage in the medium term.

Ratings affected:

   -- the B1 corporate family rating at Lucite International
      Group Holdings Ltd.;

   -- the (P)B1 rating on senior secured bank facilities to be
      raised at Lucite International US Finco Limited and Lucite
      International Finco Limited; and

   -- the B3 rating on senior unsecured notes at Lucite
      International Finance plc.

Lucite is the leading global producer of methyl methacrylate and
downstream products with over 1000 kte of total production
capacity.  Lucite reported 2005 Net Revenues of GBP780 million
and EBITDA of GBP112 million (GBP203 million and EBITDA of GBP21
million for the 1st Quarter of 2006).


M. & C. LIMITED: Calls In Tenon Recovery as Administrators
----------------------------------------------------------
S.R. Thomas and S.D. Burkett-Coltman of Tenon Recovery were
appointed joint administrators of M & C (Agricultural) Limited
(Company Number 967328) on May 24.

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

M. & C. Limited offers agricultural service activities.


MACEY & BOND: Taps Duncan R. Beat to Liquidate Assets
----------------------------------------------------
Macey & Bond Limited is liquidating its assets after creditors
decided wind up the company on April 5.

Duncan R. Beat, of Tenon Recovery, was appointed Liquidator.

The company can be reached at:

         Macey & Bond Limited
         Hawk Lane
         Battlesbridge
         Wickford Essex SS117RL
         United Kingdom
         Tel: 01268 562 622


MERSEYSIDE ASSESSMENT: Names Colin Burke Liquidator
--------------------------------------------------
Colin Burke, of Milner Boardman & Partners, was appointed
Liquidator of Limited after creditors agreed to wind up the
company on April 5.

The company can be reached at:

         Merseyside Assessment & Training Limited
         21 Dublin Street
         Liverpool L3 7DT
         United Kingdom
         Tel: 0151 236 6093


PILKINGTON PLC: S&P Downgrades Unsecured Debt Ratings to BB+
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
corporate credit and long-term senior unsecured debt ratings on
Nippon Sheet Glass Co. Ltd., following the company's successful
acquisition of U.K.-based Pilkington PLC.

At the same time, Standard & Poor's removed the ratings from
CreditWatch, where they were placed on Nov. 1, 2005.

In addition, Standard & Poor's lowered its long-term corporate
credit and senior unsecured debt ratings on Pilkington from
'BBB' to 'BB+, the same rating as that on Nippon Sheet Glass,
and the short-term rating on Pilkington to 'B' from 'A-2'.  The
ratings on Pilkington PLC were also removed from CreditWatch.
The outlooks on the long-term corporate credit ratings on both
companies are stable.

As a result of the acquisition, Nippon Sheet Glass' consolidated
debt burden will significantly increase.  Pilkington's debt
leverage was higher than that of Nippon Sheet Glass, and the
acquisition has been funded through debt financing.  However,
Standard & Poor's affirmed the ratings on the company,
reflecting the factors:

   -- the company's business franchise is expected to improve
      significantly, based on Pilkington's operational bases in
      the U.S. and Europe;

   -- part of the acquisition cost has been financed through the
      issuance of JPY110 billion in moving strike convertible
      bonds (MSCBs) with variable conversion prices and stock
      acquisition rights.  These bonds are relatively high
      quality capital as they can be converted into common
      shares more easily than typical convertible bonds; and

  -- the group's financial profile is expected to improve
      gradually, given its prospects for post-merger cash flow.

Pilkington's financial burden should increase due to the deal's
debt financing, but its franchise should benefit through the
integration with Nippon Sheet Glass.  Although the debt
financing was carried out primarily by Nippon Sheet Glass' newly
established subsidiary in the U. K., Standard & Poor's believes
it is appropriate to assess the credit quality of the two
companies as one entity.  Also, taking into consideration
possible support from Nippon Sheet Glass, Standard & Poor's
equalized the ratings on Pilkington with those on Nippon Sheet
Glass.

The acquisition of Pilkington will enable the Nippon Sheet Glass
group to command a share of the global sheet glass market that
is on par with international market leaders.  The company should
benefit from the operational bases and technological prowess of
Pilkington.  In particular, the establishment of a global
operation should help the company cultivate more demand from
Japanese automakers operating overseas.  However, synergy
effects are expected to be limited in the architectural sheet
glass segment, as that market is more regionally oriented.
Significant overall synergy effects from the merger are also
unlikely over the near term.

The MSCBs should be converted into common shares relatively
soon, as the conversion price will be revised to 91% of the
average market price every two weeks.  In addition, Nippon Sheet
Glass has maintained relatively stable performance in recent
years.  Standard & Poor's took into account these positive
factors in assessing the group's capitalization.  However, even
if all MSCBs are treated as capital, Nippon Sheet Glass'
consolidated capital structure would still significantly
deteriorate because of this deal.

Although Pilkington generates relatively strong cash flow, due
to the debt increase, its ratio of funds from operations to
total debt is projected to remain for some time at about 15%,
nearly equal to the pre-acquisition level.  The ratio of debt to
total capital is expected to deteriorate to about 65% from a
pre-acquisition level of 35%.  Even so, given the nature of the
sheet glass business, the company is likely to maintain
relatively stable cash flow, which should gradually improve its
financial profile.

The MSCBs have a callable feature that enables bondholders to
claim redemption prior to maturity if the stock price drops
below the floor conversion price of JPY336.8 for 10 days in a
row.  But given the stable characteristics of the glass sheet
business, this sort of redemption is unlikely to occur, and the
conversion of the MSCBs should proceed smoothly.

Rating actions:
                                 To              From
                                 --              ----
Nippon Sheet Glass Co. Ltd.      BB+/Stable/--   BB+/WatchNeg/--
Pilkington PLC                   BB+/Stable/B    BBB/WatchNeg/A-


QUALITY CARE: Creditors Resolve to Liquidate Assets
---------------------------------------------------
Creditors of Quality Care (London) Limited resolved to
voluntarily liquidate the company's assets during an
extraordinary general meeting on March 31.

Keith Aleric Stevens, of Wilkins Kennedy, was appointed
Liquidator.

The company can be reached at:

         Quality Care (London) Limited
         1-3 Lancelot Road
         Wembley Middlesex HA0 2AL
         United Kingdom
         Tel: 020 8903 6333
         Fax: 020 8903 3335


RICHWOOD FLOORING: Names Joint Administrators from Kroll Ltd
------------------------------------------------------------
David John Whitehouse and Philip Francis Duffy of Kroll Limited
were appointed joint administrators of Richwood Flooring Limited
(Company Number 04549645) on May 25.

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

The company can be reached at:

         Richwood Flooring Limited
         Doncaster Road
         Kirk Sandall
         Doncaster
         South Yorkshire DN3 1HT
         Tel: 01302 888 800
         Fax: 01302 888 899


SCENES EASY: Brings In Rogers Evans as Administrators
-----------------------------------------------------
Terry Christopher Evans and Simon John Lewis of Rogers Evans
were appointed joint administrators of Scenes Easy Limited
(Company Number 4899429) on May 24.

The administrators can be reached at:

         Rogers Evans
         20 Brunswick Place
         Southampton
         Hampshire SO1 2AQ
         United Kingdom
         Tel: 023 8033 5888
         Fax: 023 8033 4400
         E-mail: tevans@rogersevans.co.uk

Scenes Easy Limited can be reached at:

         Bath Road
         Hare Hatch
         Reading RG10 9SB
         United Kingdom
         Tel: 0118 940 4404


SWJ GROUP: Taps Paul Michael McConnel to Administer Assets
----------------------------------------------------------
Paul Michael McConnell of Monahans was appointed administrator
of The SWJ Group Limited (Company Number 02774262) on May 26.

The administrator can be contacted at:

         Monahans
         38-42 Newport Street
         Swindon
         Wiltshire SN1 3DR
         United Kingdom
         Tel: 01793 521231
         Fax: 01793 512188

Headquartered in Gloucestershire, United Kingdom, the SWJ Group
Limited manufactures joinery and makes cabinets.


TECHNOLOGY FARM: Appoints Tony James Thompson as Administrator
--------------------------------------------------------------
Tony James Thompson of Piper Thompson was appointed
administrator of Technology Farm Limited (Company Number
2549283) on May 26.

The administrator can be reached at:

         Piper Thompson
         Mulberry House
         53 Church Street
         Weybridge
         Surrey KT13 8DJ
         United Kingdom
         Tel: 01932855515

Technology Farm Limited can be reached at:

         Unit 4 Sundial CT
         Tolworth Rise South
         Surbiton
         Surrey KT5 9NN
         United Kingdom
         Tel: 020 8335 5910
         Fax: 020 8335 5911


WHINSTONE 2: Fitch Assigns Final BB Ratings to Class C Notes
------------------------------------------------------------
Fitch Ratings assigned Whinstone 2 Capital Management Limited's
GBPequivalent 168.5 million notes final ratings:

   -- GBP80 million Class C1 notes: BB; and
   -- EUR129 million Class C2 notes: BB.

The notes reference the performance of the Granite Master Issuer
PLC reserve fund and the Granite Finance Funding 2 Limited
reserve fund, which act as credit enhancement for six mortgage-
backed securitization transactions launched by Northern Rock
PLC.

The final ratings address the ultimate payment of interest and
ultimate repayment of principal and are based on the quality of
the collateral of the master trust property, the underwriting
and servicing capabilities of NR as well as the sound financial
and legal structure.  Credit enhancement for the Class C1 and C2
notes is provided by a threshold amount at closing of GBP101
million to be retained by NR.

At closing, NR buys credit protection via a credit default swap
from Whinstone 2 agains a portion of the target balance of the
GMI program reserve funds equivalent to 1.65% of the outstanding
notes of GMI series 05-1 to 06-1 as at closing of Whinstone 2.

The issuer in turn passes on its assumed risk to the capital
markets through the issuance of a series of Class C1 and C2
credit-linked notes.  The note proceeds will be deposited in the
principal collections account held by NR in the issuer's name.
Interest will be paid on the notes from interest on the bank
account and a premium payable by NR in respect of the CDS.

To determine appropriate credit enhancement levels, Fitch
analyzed the collateral using its default model.  The agency
modeled the transaction cash flows using default and loss
severity assumptions indicated by the default model under
various recession timings, prepayment speeds, interest rates,
and originator default/downgrade scenarios.

The cash flow test showed that each Class of notes could
withstand loan losses at a level corresponding to the related
stress scenario without incurring any principal loss or interest
shortfall and can retire principal by legal final maturity.


* Fitch Remarks on Outlook for European Automotive Industry
-----------------------------------------------------------
Fitch Ratings remarked that the overall outlook for the
automotive industry in Europe has stabilized.  Although
challenges persist and the industry's recovery remains fragile,
pressure on European original equipment manufacturers' credit
profiles has diminished.

"With the exception of Ford Otosan whose BB+ rating and Negative
Outlook are influenced by those of Ford Motor Company, all car
manufacturers rated by Fitch in Europe now have a Stable
Outlook," Emmanuel Bulle, Director in Fitch's European
Industrials team, disclosed.

Save for Ford Otosan, Volkswagen AG was the last car
manufacturer in Europe with a Negative Outlook before Fitch
changed it to Stable on May 22.

"We acknowledge Volkswagen's improved credit ratios, and we
expect announced restructuring actions will support a further
improvement in margins and cash generation ability over the next
couple of years," added Mr. Bulle.

Restructuring efforts have been crucial in supporting the credit
profiles of European manufacturers in the past two to three
years.  They range from ongoing cost-control actions to deep
restructuring program.  PSA, Volkswagen, DaimlerChrysler AG,
Renault SA and Fiat SpA have all announced cost-saving measures,
mostly in the purchasing, distribution and manufacturing areas.

Cost-cutting actions include the reduction of thousands of jobs
in Europe, the search for continuous synergies between brands
and/or divisions, the reorganization of manufacturing processes
and the closing or downsizing of plants.

Cost-saving measures are also associated with the move towards
more efficient production bases.  Recently, European car makers
have initiated a significant move eastwards to implement their
assembly facilities in Central and Eastern Europe or sign
industrial agreements with manufacturers in CEE, Russia or
Turkey.

Volkswagen and PSA have recently opened assembly plants and
expanded capacity in Czech Republic and Slovakia while Renault
has announced plans to take advantage of the success of its
Dacia Logan and increase production in Russia.  Fiat has been
active in signing agreements and cooperating with partners in
Russia, CEE and India.  The common rationale behind these
strategies is to benefit from the increased R&D capability,
improved engineering value and low wages typical of these
countries.

However, Fitch cautions that challenges are still present and
the industry's recovery remains fragile.  Several headwinds can
easily hinder the stabilizing trend seen in Europe and the
positive results from the companies' restructuring efforts.  In
particular, the negative impact from low growth prospects in
European OEMs' domestic markets is exacerbated by the unabated
competition from foreign manufacturers.

Japanese brands, Toyota in particular, and Korean manufacturers,
continue to improve their market shares in Europe at the expense
of domestic brands.  Although European manufacturers are putting
a renewed emphasis on the product to maintain their market
share, they remain subject to the aggressive plans from Asian
competitors to extend their product offering.

European OEMs must also manage the negative impact from
unfavorable foreign exchange movements and rising commodity
prices.  Although suppliers, the substantial price increase of
raw materials like aluminum, have absorbed part of the shock
steel, copper or oil has had a strong negative impact on margins
and profitability.  Fitch notes also the costs related to
European regulations, in particular emission regulations to
comply with increasingly more stringent standards.

                           *********

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
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