TCREUR_Public/060623.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Friday, June 23, 2006, Vol. 7, No. 124

                            Headlines


A U S T R I A

A & H SCHLAFSYTEME: Innsbruck Court Dismisses Bankruptcy Case
HERBERT WIESENHOFER: Creditors' Meeting Slated for July 11
HERTA GLUECK: Claims Registration Period Ends July 4
KONNTI: Vienna Court Closes Bankruptcy Case After Claims Payment
KORREKT: Court Closes Bankruptcy Case After Final Distribution


C Z E C H   R E P U B L I C

SAZKA AS: Aims to Raise More Cash in Exchange Offer


D E N M A R K

TDC A/S: Terminates American Depositary Receipts Program
TDC A/S: Distributing DKK862 Million Interim Dividend
TDC A/S: J. Alder to Serve as CEO & H. Dyremose as Chairman


F R A N C E

EUTELSAT COMMUNICATION: Moody's Rates Credit Facilities at (P)B1


G E R M A N Y

CONNECT IN EUROPE: Creditors' Meeting Slated for June 28
DEFRA CONSULTING: Claims Registration Ends July 7
DOMA IMMOBILIEN: Claims Registration Ends July 7
DVV DEUTSCHE: Claims Registration Ends July 10
HOTEL RESTAURANT: Claims Registration Ends July 8

KARSTADTQUELLE AG: Shuffles Posts in Mail Order Unit
KLEIN KARL: Claims Registration Ends July 10
KOSTER ALTBAUSANIERUNG: Claims Registration Ends July 7
LEUCHTENDE AUGEN: Claims Registration Ends July 7
MCG MULTICONZEPT: Creditors' Meeting Slated for July 3

SCHRODER FUSSBODENTECHNIK: Claims Registration Ends July 7

* Moody's Reports on German Life Insurers' Negative Outlook


I R E L A N D

QUANTA EUROPE: A.M. Best Lowers Financial Strength Rating to B


I T A L Y

ALITALIA SPA: Receives EC Observations on Antitrust Proceedings
FIAT SPA: Chief Executive Refuses to Cut Back Capacity


K A Z A K H S T A N

AE PETROL: Creditors Must File Claims by July 3
AKM-HOLDING: Creditors Must File Claims by June 30
AKTOBE-LADA: Claims Registration Ends June 30
BEL-AGACH NEFTESNAB: Claims Registration Ends June 30
HALYK BANK: Fitch Rates US$300-Mln Eurobond at Long-Term BB+

JAIYK-ASFALT: West Kazakhstan Court Opens Bankruptcy Proceedings
KAZAKHSTAN-KURYLYS-SNAB: Creditors' Claims Due June 30
PERFECT EKSPO: Creditors' Claims Due June 30
REMELEKTRODIZEL: Proof of Claim Deadline Slated for June 30
SHOMIR: Proof of Claim Deadline Slated for June 30

TENTEKSKAYA TES: Karaganda Court Starts Bankruptcy Process


N E T H E R L A N D S

KONINKLIJKE AHOLD: Earns EUR243 Million for First Quarter 2006


R U S S I A

ASKIZSKAYA BREAD 18: Bankruptcy Hearing Slated for July 5
CONSTRUCTION SERVICE: Court Commences Bankruptcy Supervision
GAZPROM: Inks Gas Supply Deal with Denmark's DONG Energy
INTERNATIONAL MOSCOW: S&P Puts Credit Ratings on Watch Positive
INZENSKAYA FURNITURE: Court Starts Bankruptcy Supervision

JOINT TIMBER: Court Starts Bankruptcy Supervision
KUZNETSKIY BRICKWORKS: Court Names A. Dogadin to Manage Assets
NORTH-WEST: Fitch Keeps International Default Rating at B+
NOVOUSENSKAYA POULTRY: Bankruptcy Hearing Slated for July 20
OREL-INZH-SEL-STROY: Court Names I. Maslov as Insolvency Manager

SEVERSTAL: Arcelor Board to Decide on Mittal Deal by June 25
SEVERSTAL: French Market Regulator Suspends Arcelor Shares
SOTSGORBANK: S&P Assigns CCC/C Counterparty Credit Ratings
SUKHINICHI-AGRO-PROM-KHIMIYA: G. Perov to Manage Assets
USTYANSKOYE: Court Begins Bankruptcy Supervision

ZIANCHURA-MILK: Court Appoints G. Yaparov as Insolvency Manager


S W E D E N

CONCORDIA BUS: To Publish First Quarter Results by June 27


S W I T Z E R L A N D

SWISS INTERNATIONAL: To Expand Long-Haul Fleet Next Winter


U K R A I N E

AGROTEPLOTEHNIKA: Court Names Varvara Majsa to Manage Assets
BAHMACHKONSERVMOLOKO: Court Starts Bankruptcy Supervision
BEZPEKA: Court Names Oleksandr Dyomin as Liquidator
IRONA: Court Names S. Yavorskij to Liquidate Assets
KOMEKS-BROK: Court Names Mr. S. Yavorskij Insolvency Manager

KRAMATORSK COLD: Court Names Oleg Kozhuhov as Liquidator
MARSH: Kyiv Court Commences Bankruptcy Supervision
RUZHIN' MILK: Court Names V. SemenchU.K. as Liquidator
SOZAP: Court Names T. Kushnir to Liquidate Assets
TOLDI: Court Appoints V. Melnikov to Manage Insolvency Assets


U N I T E D   K I N G D O M

52 LARK: Creditors Pass Winding Up Resolution
995 LTD: Financial Woes Trigger Liquidation
ABSOLUTE CUSTOMER: Creditors' Meeting Slated for June 30
ACCIDENT CLAIMS: Taps David Wald to Liquidate Assets
BRITISH AIRWAYS: DOJ & OFT Probes Alleged Cartel Activity

BUSHMAN LTD: Creditors Resolve to Liquidation
CARL BATEMAN: Claims Filing Period Ends July 5
COINBEACH LTD: Names Anthony Peter Jackson Liquidator
CONVEYOR ACCESSORIES: Calverton Appoints Kay Johnson as Receiver
FOODSERVICE SOLUTIONS: HSBC Appoints P&A as Joint Receivers

HGI REALISATIONS: Taps Harrisons to Administer Assets
J. PICKLES: Appoints Wilson Pitts as Joint Administrators
JEC DEVELOPMENTS: Names Gerard Keith Rooney as Administrator
MILLER BROTHERS: Brings In BDO Stoy as Administrators
NOVAE HOLDINGS: A.M. Best Affirms US$11 Million Notes at bb

QUALITY ELECTRICAL: Taps BDO Stoy to Administer Assets
RANKARE LIMITED: K.B.C. Bank Appoints BN Jackson as Receiver
REFER2US LIMITED: Appoints Neil Chesterton as Administrator
THREE COUNTIES: Claims Registration Ends June 30
WILD IVY: Hires Liquidator from S G Banister & Co.

WOOLWORTHS GROUP: Sales Drop 6.7% Due to Trading Difficulty

                            *********

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


A & H SCHLAFSYTEME: Innsbruck Court Dismisses Bankruptcy Case
-------------------------------------------------------------
The Land Court of Innsbruck dismissed the bankruptcy case of KEG
A & H Schlafsyteme Adolf Stenitzer und Harald Eichhorn (FN
223632x) on May 12 due to the Debtor's administrative
insolvency.  This means that the Debtor does not have enough
cash to cover costs of the bankruptcy proceedings.

As a result, creditors will not receive any distribution.

Headquartered in St. Johann in Tirol, Austria, the Debtor
(Bankr. Case No. 7 S 14/04z) declared bankruptcy on May 10,
2004.  Emilio Stock served as the court-appointed property
manager for the bankrupt estate.


HERBERT WIESENHOFER: Creditors' Meeting Slated for July 11
----------------------------------------------------------
Creditors owed money by Transport and Trade LLC Herbert
Wiesenhofer (FN 93824b) are encouraged to attend the creditors'
meeting at 10:00 a.m. on July 11 to consider the revision of the
rule by adoption and accountability.

The first creditors' meeting will be held at:

         The Land Court of St. Polten
         Room 216
         2nd Floor
         St. Polten, Austria

Headquartered in Purgstall an der Erlauf, Austria, the Debtor
declared bankruptcy on May 12 (Bankr. Case No. 14 S 81/06m).
Christian Kies serves as the court-appointed property manager of
the bankrupt estate.


HERTA GLUECK: Claims Registration Period Ends July 4
----------------------------------------------------
Creditors owed money by LLC Herta Glueck (FN 168011a) have until
July 4 to submit written proofs of claim to court-appointed
property manager Horst Winkelmayr at:

         Horst Winkelmayr
         Porzellangasse 22A/1/7
         1090 Vienna
         Austria
         Tel: 532 47 77
         Fax: 532 47 77 50
         E-mail: rae@kniwi.at

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 12 (Bankr. Case No. 4 S 79/06d).  Carl Knittl represents
Mr. Winkelmayr in the bankruptcy proceedings.


KONNTI: Vienna Court Closes Bankruptcy Case After Claims Payment
----------------------------------------------------------------
The Trade Court of Vienna entered an order closing the
bankruptcy case of Construction LLC Konnti (FN 247294v) on
May 12 following the Debtor's final distribution to creditors.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 12, 2005 (Bankr. Case No. 3 S 97/05t).  Michael
Lesigang served as the court-appointed property manager for the
bankrupt estate.


KORREKT: Court Closes Bankruptcy Case After Final Distribution
--------------------------------------------------------------
The Trade Court of Vienna entered an order closing the
bankruptcy case of Construction LLC Korrekt (FN 234790f) on
May 12 following the Debtor's final distribution to creditors.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 18, 2005 (Bankr. Case No. 3 S 107/05p).  Thomas Deschka
served as the court-appointed property manager for the bankrupt
estate.


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


SAZKA AS: Aims to Raise More Cash in Exchange Offer
---------------------------------------------------
Sazka A.S. plans to increase its offer to exchange existing
EUR174 million 7.375% bonds due 2014 for new ones of the same
amount maturing in 2021 by at least EUR40 million, Bloomberg
News reports.

The Company plans to raise at least EUR215 million of new bonds
through the sale of more debt.

According to Bloomberg, investors have agreed to give the issuer
the right to repurchase the existing debt at a discount to the
price offered to bondholders taking part in the exchange.

Headquartered in Prague, Sazka A.S. -- http://www.sazka.cz/--  
is Czech Republic's largest betting and lottery operator.

                        *     *     *

As reported in TCR-Europe on April 28, Standard & Poor's Ratings
Services lowered its long-term corporate credit rating on the
Czech Republic-based gaming company SAZKA a.s. to 'B' from 'B+'.
At the same time, it assigned its 'B' rating to the proposed
EUR215 million senior secured bonds, due to refinance the EUR175
million existing ones.  The ratings remain on CreditWatch with
negative implications, where they were placed on March 13, 2006.


=============
D E N M A R K
=============


TDC A/S: Terminates American Depositary Receipts Program
--------------------------------------------------------
TDC A/S instructed the Bank of New York to stop offering
American Depositary Receipts by June 26, following TDC's
delisting from the New York Stock Exchange on April 19.

TDC A/S and the Bank of New York, as Depositary, have offered
ADRs through the Bank of New York's ADR-program since 1994.
Each ADR represents one-half of one ordinary share of TDC A/S
and ADRs currently issued under the ADR-program represent
approximately 0.16% of TDC A/S's share capital.

Additionally, the Bank of New York and TDC have agreed to amend
the Deposit Agreement with effect after the expiry of a 90-day
notice period.  The amendment will allow the Bank of New York to
sell all remaining deposited shares 30 days after the Deposit
Agreement is terminated.

Finally, The Bank of New York and TDC has agreed to terminate
the Deposit Agreement by Sept. 26.  As a result, TDC expects
that the ADR-program will be finally terminated by the end of
October 2006.

Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.com/-- provides communications solutions in
Denmark and is the second-largest telecommunications provider on
the Swiss market.  It has a presence in a number of select
markets in Northern and Central Europe due to its shareholdings
in major companies.

                        *     *     *

As reported in TCR-Europe on May 11, Fitch affirmed TDC A/S's
Issuer Default Rating at BB- with Stable Outlook and senior
secured bank facilities at BB+.

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

EMTN bonds rated BB-:

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


TDC A/S: Distributing DKK862 Million Interim Dividend
-----------------------------------------------------
The Board of Directors for TDC A/S authorized an interim
dividend distribution.

A dividend of DKK4.35 per share of a nominal value of DKK5 will
be distributed amounting to a total dividend of DKK862 million,
excluding dividend on treasury shares.

Payment of dividend will take place on June 29.  Dividend will
be paid on the basis of the shareholdings registered on the VP
accounts as of the end of June 28.  Trading made with settlement
no later than June 28 will therefore give right to dividend for
the buyer.  This means, on the basis of normal trading practice
as this is understood by TDC, where trades are settled with
three days' value, that trades made as of June 26 or later will
be executed without dividend.

Following the distribution of interim dividend TDC's outlook for
net income for 2006 remains unchanged.

Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.com/-- provides communications solutions in
Denmark and is the second-largest telecommunications provider on
the Swiss market.  It has a presence in a number of select
markets in Northern and Central Europe due to its shareholdings
in major companies.

                        *     *     *

As reported in TCR-Europe on May 11, Fitch affirmed TDC A/S's
Issuer Default Rating at BB- with Stable Outlook and senior
secured bank facilities at BB+.

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

EMTN bonds rated BB-:

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


TDC A/S: J. Alder to Serve as CEO & H. Dyremose as Chairman
-----------------------------------------------------------
Henning Dyremose, President and CEO of TDC, has accepted an
offer to become the Company's Chairman of the Board.  Jens
Alder, who left as President and CEO of Swisscom at the end of
January, is expected to become new President and CEO of TDC.
SEVP and CFO, Hans Munk Nielsen, will continue on the Executive
Committee of TDC.

Mr. Alder is expected to take on his new position as of Nov. 1,
2006, when he will no longer have any contractual obligations
vis-a-vis Swisscom.  The company expects to conclude a final
agreement to that effect in the near future.

Mr. Dyremose will be elected new Chairman in connection with
TDC's Annual General Meeting in March 2007.  He will continue as
President and CEO until Mr. Alder takes over.  After that Mr.
Dyremose will as a non-executive director of TDC be at the
company's disposal as advisor for Jens Alder until the Annual
General Meeting.

Mr. Dyremose will receive a retirement bonus in accordance with
his current contract as stated in TDC's Annual Report 2005 and
as further described in the company's stock exchange release
dated Nov. 30, 2005.  In addition, he will receive a special
bonus of between DKK7.5 million and DKK15 million, depending on
the company's financial performance in 2006.

In accordance with his current contract, SEVP and CFO Hans Munk
Nielsen will receive DKK11.4 million as a consequence of the
change of control in the company.  Furthermore, SEVP and CFO
Hans Munk Nielsen has been granted a Stay-On bonus of up to
DKK13.3 million payable no later than July 1, 2008.  The company
has in addition granted SEVP and CFO Hans Munk Nielsen a bonus
of up to DKK4.3 million, depending on the company's financial
performance in 2006.

NTC plans to implement an incentive program for top managers in
TDC, which will also include President and CEO Henning Dyremose
as well as SEVP and CFO Hans Munk Nielsen.

Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.com/-- provides communications solutions in
Denmark and is the second-largest telecommunications provider on
the Swiss market.  It has a presence in a number of select
markets in Northern and Central Europe due to its shareholdings
in major companies.

                        *     *     *

As reported in TCR-Europe on May 11, Fitch affirmed TDC A/S's
Issuer Default Rating at BB- with Stable Outlook and senior
secured bank facilities at BB+.

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

EMTN bonds rated BB-:

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


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


EUTELSAT COMMUNICATION: Moody's Rates Credit Facilities at (P)B1
----------------------------------------------------------------
Moody's Investors Service assigned a (P)B1 rating to Eutelsat
Communication S.A.'s new Term Loan and Revolving Credit
Facilities, which replace similar facilities at SatBirds
Finance, an intermediate holding company and financing vehicle
set up in the context of Eutelsat S.A.'s leveraged
recapitalization.

The ratings for the facility at Satbirds Finance have been
withdrawn.  Eutelsat Communication's corporate family rating
remains at Ba3 and the outlook for all ratings remains positive.

Ratings assigned:

   * Eutelsat Communications S.A. (Eutelsat):

     -- Term Loan and Revolving Credit Facility due 2013: (P)B1

Ratings withdrawn:

   * Satbirds Finance:

     -- Term Loans A due 2012: B1;
     -- Term Loans B due 2013: B1; and
     -- Revolving Credit Facility due 2012: B1.

The new facilities are made available on improved economic terms
and are amongst other things aiming at facilitating a
simplification of Eutelsat Communication's group structure to
achieve direct ownership of Eutelsat SA by Eutelsat
Communications by fiscal year 2007/8.  Moody's also notes that
the facilities' covenants provide for increased borrowing
headroom at 5.5x Net Debt/EBITDA.  Similar to the Satbirds
Finance facilities the new facilities will be structurally
subordinated to bank debt and long-term leases at Eutelsat S.A.
(EUR869 million as of Dec. 31, 2005).  Eutelsat Communications
has only an indirect equity claim over Eutelsat S.A.'s assets
and is therefore dependent on the indirect dividend flow from
Eutelsat SA to service the rated debt.

The ratings continue to acknowledge Eutelsat's strong business
position based on its joint market leadership in satellite-
distributed video content over Europe, a substantial, mainly
video-based contract back-log, one of the industry's youngest
satellite fleets and strong distribution partners.

A positive outlook reflects potential for upward ratings
development in the near-term, which should be achievable
following the successful launch of Hot Bird 8 and assuming
operating performance remains in line with guidance.  It also
assumes that the company preserves the de-leveraging achieved
with its late 2005 IPO.  Pro forma adjusted net debt including
performance incentives to EBITDAR as of June 30, 2005 was
approximately 4.1x

Headquartered in Paris, Eutelsat S.A. is a leading,
internationally operating supplier of fixed satellite services.
Eutelsat Communications is a holding company, which indirectly
owns 95.2% of Eutelsat SA


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


CONNECT IN EUROPE: Creditors' Meeting Slated for June 28
--------------------------------------------------------
The court-appointed provisional administrator for Connect in
Europe Ltd., Marc Herbert, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 2:30
p.m. on June 28.

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

         The District Court of Saarbruecken
         Hall 13
         1st Floor
         Branch Office Sulzbach
         Vopeliusstrasse 2
         66280 Sulbach, Germany

The Court will also verify the claims set out in the
administrator's report at 1:45 p.m. on Aug. 23 at the same
venue.

Creditors have until July 26 to register their claims with the
court-appointed provisional administrator.

The District Court of Saarbruecken opened bankruptcy proceedings
against Connect in Europe Ltd. on May 29.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Connect in Europe Ltd
         Urweilerstrasse 36
         66640 Namborn, Germany

The administrator can be reached at:

         Marc Herbert
         Neikesstrasse 3
         66111 Saarbruecken, Germany
         Tel: 0681-375104
         Fax: 0681-36513


DEFRA CONSULTING: Claims Registration Ends July 7
-------------------------------------------------
Creditors of DeFra Consulting GmbH have until July 7 to register
their claims with court-appointed provisional administrator
Ingmar Jarchow.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 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 Hamburg
         Hall B 405
         4th Floor
         Insolvency Court
         Sievekingplatz 1
         20355 Hamburg, Germany

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

The District Court of Hamburg opened bankruptcy proceedings
against DeFra Consulting GmbH on May 16.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         DeFra Consulting GmbH
         Attn: Frank Eschen, Manager
         Ladenbeker Furtweg 37
         21033 Hamburg, Germany

The administrator can be contacted at:

         Ingmar Jarchow
         Heuberg 1
         20354 Hamburg, Germany
         Tel: 3501690
         Fax: 35016915


DOMA IMMOBILIEN: Claims Registration Ends July 7
------------------------------------------------
Creditors of DOMA Immobilien-Entwicklungs GmbH have until July 7
to register their claims with court-appointed provisional
administrator Sebastian Henneke.

Creditors and other interested parties are encouraged to attend
the meeting at 10:25 a.m. on July 28, 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 Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, 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 Dortmund opened bankruptcy proceedings
against DOMA Immobilien-Entwicklungs GmbH on May 16.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         DOMA Immobilien-Entwicklungs GmbH
         Unterste-Wilms-Str. 44
         44143 Dortmund, Germany

         Attn: Dr. Horst Heiermann, Manager
         Dreihuettenstr. 9
         44135 Dortmund, Germany

The administrator can be contacted at:

         Dr. Sebastian Henneke
         Hansastrasse 61
         44137 Dortmund, Germany
         Tel: 0231-56559921
         Fax: 0231-56559922


DVV DEUTSCHE: Claims Registration Ends July 10
----------------------------------------------
Creditors of DVV Deutsche Vermogensvorsorge GmbH have until
July 10 to register their claims with court-appointed
provisional administrator Lothar Staab.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on Aug. 8, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Aschaffenburg
         Meeting Room 5.103
         1st Upper Floor
         Schlossplatz 5
         63739 Aschaffenburg, 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 Aschaffenburg opened bankruptcy
proceedings against DVV Deutsche Vermogensvorsorge GmbH on
May 24.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         DVV Deutsche Vermogensvorsorge GmbH
         Siemensstr. 23
         63768 Hosbach, Germany

The administrator can be contacted at:

         Dr. Lothar Staab
         Kapuzinerplatz 1
         63739 Aschaffenburg, Germany
         Tel: 06021/386710
         Fax: 06021/3867130


HOTEL RESTAURANT: Claims Registration Ends July 8
-------------------------------------------------
Creditors of Hotel Restaurant Gut Funkenhof GmbH & Co. KG have
until July 8 to register their claims with court-appointed
provisional administrator Axel Kampmann.

Creditors and other interested parties are encouraged to attend
the meeting at 11:05 a.m. on Aug. 10, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Arnsberg
         EG 328
         Eichholzstrasse 4
         59821 Arnsberg, 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 Arnsberg opened bankruptcy proceedings
against Hotel Restaurant Gut Funkenhof GmbH & Co. KG on May 26.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Hotel Restaurant Gut Funkenhof GmbH & Co. KG
         Altenhellefelder Road 10
         59846 Sundern, Germany

The administrator can be contacted at:

         Dr. Axel Kampmann
         Bronnerstrasse 7
         44141 Dortmund, Germany
         Tel: 0231/5411-0
         Fax: 0231/5411-220


KARSTADTQUELLE AG: Shuffles Posts in Mail Order Unit
----------------------------------------------------
Marc Sommer, member of the Management Board of KarstadtQuelle AG
with responsibility for the Mail Order segment, disclosed a
reorganization of key positions in the Mail Order segment.

"This reorganization aims to implement rigorously the impending
changes in the Mail Order segment and advance the excellent
market knowledge.  At its core is economic recovery,
reorganization of the brands and a quality campaign in terms of
product ranges and services", said Mr. Sommer.

         Dirk Seifert as Quelle's Co-Managing Director

Dirk Seifert will become the new Co-Managing Director of Quelle
GmbH from July 1, 2006, thus succeeding Michael Badke, who has
left the management.  Mr. Seifert will primarily be responsible
for purchasing and for the company's product range strategy.
Mr. Seifert is currently Chief Operating Officer at ESPRIT.

On completion of his business studies degree, he began working
in Category Management at Procter&Gamble, where he completed a
PhD in "Efficient Consumer Response."  The retail expert was
then a guest lecturer at the Harvard Business School for a year,
where he focused on customer relationship management and supply
chain management.  In 2002, he joined Metro Cash&Carry where he
was later Head of Category Management.  He took up his new
position at ESPRIT in 2005.  Mr. Seifert is a proven product
range expert and sales and marketing man with experience in
operations across the whole value-added chain.

"With Dirk Seifert, we are bringing an excellent retail expert
into the company who will join us in shaping the quality
campaign and in the restructuring of the Quelle brand, which we
have already begun", said Mr. Sommer, who has been acting as
sole Managing Director of Quelle GmbH for the past few months.
Mr. Seifert will report to Mr. Sommer directly.

               Hanns Rech to Head Services Group

Hanns Rech is also a new addition to the company.  The former
Chief Executive Officer of LSG Sky Chefs Holding AG, which is
owned by Lufthansa, will take over responsibility for the
Services group within the Mail Order segment in Germany and
abroad as CEO with immediate effect.  This includes the areas of
Customer Care, Logistics, Fox Markets and Data and Address
Management KQIS, with a total of around 6,000 employees.

Mr. Rech was employed in management positions at the American
Mars Group for nine years before taking over responsibility for
international operations at Mller Milch GmbH in Aretried
following a period of employment at Masterfoods in Scandinavia.
From 1991 to 1996, he was the Managing Director with sole rights
of representation at Tchibo International GmbH, where he was
responsible for all international operations of the Tchibo Group
and for the creation of seven new national companies.

Following two years as Director of Marketing at the Oetker Group
in Bielefeld, Mr. Rech then spent three years as General Manager
at DHL Worldwide Express Deutschland and as a member of the
European Management Board before joining LSG Holding AG as CEO.

"Hanns R. Rech's impressive business experience and his broad
international background will help us to orientate the Services
Group of the Mail Order segment and all its business activities
to the market quickly and competitively", said Marc Sommer.

               Dirk Hess Enters Quelle's Management

Dirk Hess, who has been the new Head of Sales at the company
since June 6, will become a new member of the management of
Quelle GmbH.  His task is to bundle and interlink the area
distribution paths efficiently in Germany and in Europe.  Quelle
currently has over 150 Quelle Technik Centers and well over
4,000 Quelle shops.  Area sales also include Technical Customer
Service and the large number of centralized buyers.  Mr. Hess,
who is a business graduate, was most recently responsible for
over-the-counter sales for the Eastern European book club at
DirectGroup Bertelsmann as a member of the management.

                      About KarstadtQuelle

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

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

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


KLEIN KARL: Claims Registration Ends July 10
--------------------------------------------
Creditors of Klein Karl & Hans-Juergen GbR have until July 10 to
register their claims with court-appointed provisional
administrator Martin Wiedemann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Aug. 10, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Landau in der Pfalz
         Room 225
         Marienring 13
         76829 Landau in der Pfalz, 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 Landau in der Pfalz opened bankruptcy
proceedings against Klein Karl & Hans-Juergen GbR on May 23.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Klein Karl & Hans-Juergen GbR
         Attn: Hans-Juergen and Karl Klein, Managers
         Mettenbacherhof
         76855 Annweiler, Germany

The administrator can be contacted at:

         Martin Wiedemann
         Kanzlei feb Rechtsanwalte
         68161 Mannheim, Germany
         Tel: 0621/16680


KOSTER ALTBAUSANIERUNG: Claims Registration Ends July 7
-------------------------------------------------------
Creditors of Koster Altbausanierung & Glasreinigung KG i.G. have
until July 7 to register their claims with court-appointed
provisional administrator Dirk Obermueller.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 Bonn
         Room W 1.24A
         1 Stick
         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
Koster Altbausanierung & Glasreinigung KG i.G. on May 15.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Koster Altbausanierung & Glasreinigung KG i.G.
         Roderichstr. 10
         53179 Bonn, Germany

         Attn: Claus Koster, Manager
         Gretenhof 8
         53424 Remagen, Germany

         Rolf Heinrich Timm, Manager
         Eckumer Str. 7
         50767 Cologne, Germany

The administrator can be contacted at:

         Dirk Obermueller
         Godesberger Avenue 125-127
         53175 Bonn, Germany
         Tel: 81 000 45
         Fax: 81000820


LEUCHTENDE AUGEN: Claims Registration Ends July 7
-------------------------------------------------
Creditors of Leuchtende Augen Produktionen GmbH have until
July 7 to register their claims with court-appointed provisional
administrator Heiko Fialski.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Aug. 4, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         4th Floor
         Insolvency Court
         Sievekingplatz 1
         20355 Hamburg, Germany

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

The District Court of Hamburg opened bankruptcy proceedings
against Leuchtende Augen Produktionen GmbH on May 11.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Leuchtende Augen Produktionen GmbH
         Zitadellenstrasse 10
         21079 Hamburg, Germany

         Attn: Michael Frede, Manager
         Sudermannstrasse 8
         21077 Hamburg, Germany

The administrator can be contacted at:

         Heiko Fialski
         Raboisen 38
         20095 Hamburg, Germany
         Tel: 33446-0
         Fax: 33446-111


MCG MULTICONZEPT: Creditors' Meeting Slated for July 3
------------------------------------------------------
The court-appointed provisional administrator for MCG
Multiconzept 24 GmbH, Ruediger Wienberg, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 9:05 a.m. on July 3.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Oct. 23 at the same
venue.

Creditors have until Aug. 28 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against MCG Multiconzept 24 GmbH on May 29.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         MCG Multiconzept 24 GmbH
         Ebertystrasse 46
         10249 Berlin, Germany

The administrator can be reached at:

         Ruediger Wienberg
         Giesebrechtstr. 1
         10629 Berlin, Germany


SCHRODER FUSSBODENTECHNIK: Claims Registration Ends July 7
----------------------------------------------------------
Creditors of Schroder, Fussbodentechnik und Zimmerei GmbH have
until July 7 to register their claims with court-appointed
provisional administrator Dirk Decker.

Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on Aug. 4, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         4th Floor
         Insolvency Court
         Sievekingplatz 1
         20355 Hamburg, Germany

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

The District Court of Hamburg opened bankruptcy proceedings
against Schroder, Fussbodentechnik und Zimmerei GmbH on May 18.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Schroder, Fussbodentechnik und Zimmerei GmbH
         Attn: Michaele Aye, Manager
         Berry Valley Way 116
         21077 Hamburg, Germany

The administrator can be contacted at:

         Dirk Decker
         Speersort 4-6
         20095 Hamburg, Germany
         Tel: 303010
         Fax: 30301435


* Moody's Reports on German Life Insurers' Negative Outlook
-----------------------------------------------------------
The overall rating outlook for the German life insurance
industry remains negative due to ongoing earnings pressure and a
series of strategic challenges, says Moody's Investors Service
in its latest Industry Outlook on the sector.

"In general, the German life insurance industry's financial
status has stabilized in recent months thanks to a strong
performance on the global equity markets, improvements in risk
management coupled with a further de-risking of many companies'
balance sheets, as well as a reversal of the downward trend in
interest rates in the Eurozone at the end of 2005.  This
stabilization was reflected in a slowdown in rating downgrades
in 2005 in comparison to the more volatile period from 2002 to
2004," says Beatrice Braun, a Moody's Assistant Vice President -
Analyst and author of the report.

Nonetheless, the operating environment for German life insurers
remains difficult in light of a number of strategic challenges.
Significantly, the volume of new sales is likely to remain
subdued in 2006 continuing the trend witnessed in 2005 on the
back of the introduction of a new tax regime, which will further
increase the cost pressure on the industry.  Moody's also
anticipates that the flat yield curve and the prolonged low
interest rate environment will continue to suppress earnings,
which -- in conjunction with stringent tax laws and policyholder
profit-sharing rules -- will hamper the ability of the sector to
restore its core profitability and further strengthen its
capital base.

At the same time, various developments are likely to increase
the legal and regulatory burden on the industry.  Most
significantly, the reform of the insurance contract law could
have potentially major consequences and Moody's will monitor any
developments in this area very closely.  In addition,
implementation of the EU Insurance Mediation Directive, designed
to increase consumer protection and improve transparency, could
notably impact the industry's distribution network.

On an international level, the industry will be significantly
affected by the implementation of International Financial
Reporting Standards as well as the EU's review of prudential
supervision.  Both of these projects are likely to result in
substantial changes to the way in which life insurance business
is conducted and lead to better risk management capabilities of
the sector.  The rating agency says that these new developments
should be beneficial in the long term, but cautions that some of
the smaller and medium-sized players will be challenged in the
short-to-medium term to ensure that these developments are
properly understood and incorporated within the required
timescale.


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


QUANTA EUROPE: A.M. Best Lowers Financial Strength Rating to B
--------------------------------------------------------------
A.M. Best Co. downgraded the financial strength ratings to B
from B++ and the issuer credit ratings to bb from bbb for the
insurance/reinsurance subsidiaries of Quanta Capital Holdings
Ltd.

These rating actions apply to Quanta Reinsurance Ltd., its
subsidiaries and Quanta Europe Ltd.  A.M. Best also downgraded
Quanta's ICR to b from bb and the securities rating to ccc from
b+ for its US$75 million 10.25% Series A non-cumulative
perpetual preferred shares.  All ratings have been removed from
under review with negative implications and assigned a negative
outlook.

Subsequently, all ratings of Quanta will be withdrawn and the
FSRs will be assigned a rating of NR-4 in response to
management's request that Quanta be removed from A.M. Best's
interactive rating process.

A.M. Best maintained a conservative view in evaluating the
group's run-off given the potential for catastrophe and non-
catastrophe related adverse reserve development, exposure to
potential 2006 catastrophes due to the risk attaching nature of
the remaining reinsurance business and execution risk with
regard to dismantling the existing infrastructure.

These rating actions follow A.M. Best's previous downgrading of
Quanta's ratings on March 2, after Quanta reported a significant
fourth-quarter 2005 net loss.

The FSRs of B++ and the ICRs of bbb were downgraded to B and bb,
respectively, for these insurance/reinsurance subsidiaries of
Quanta Capital Holdings Ltd.:

   -- Quanta Reinsurance Ltd.,
   -- Quanta Europe Ltd.,
   -- Quanta Indemnity Company,
   -- Quanta Reinsurance U.S. Ltd.,
   -- Quanta Specialty Lines Insurance Company

The ICR of bb has been downgraded to b for Quanta Capital
Holdings Ltd.

These securities' rating has been downgraded:

Quanta Capital Holdings Ltd.

   -- to ccc from b+ on US$75 million 10.25% Series A non-
      cumulative perpetual preferred shares

Subsequently, all the above ratings will be withdrawn.


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


ALITALIA SPA: Receives EC Observations on Antitrust Proceedings
---------------------------------------------------------------
The European Commission has sent its observations to Alitalia
S.p.A. arising from its investigation in 2000 relating to the
SkyTeam alliance and the commercial agreements on which the
alliance is based.

The same document has been sent to the other alliance partner
airlines.

The receipt of these observations as such does not prejudice the
outcome of the proceedings and has no negative implications
regarding the operations and existence of SkyTeam, the
participation of its current members or the alliance's future
development.

Furthermore, the SkyTeam investigation does not concern the
bilateral partnership between Alitalia and Air France, which was
approved by the European Commission in 2004 as part of separate
proceedings.

The agreements under investigation by the Commission are those,
which enable SkyTeam partners to:

   -- standardize and improve quality and safety standards;

   -- provide a global network of 728 destinations in 149
      countries;

   -- improve connectivity, infrastructures and customer
      services;

   -- simplify access to air transport; and

   -- offer frequent flyer programs that are competitive and
      attractive.

While reserving the right to examine the document received from
the European Commission more closely, Alitalia has no doubt that
this is an important step towards a satisfactory conclusion for
SkyTeam, for customers, and more generally for the European air
transport sector.  With this in mind, Alitalia intends to
maintain its transparent and constructive approach towards the
European Commission, which the Company has shown during the
course of the investigations.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in
annual revenue and employs more than 11,000 people.  Alitalia
flies to about 80 destinations in more than 60 countries from
hubs in Rome and Milan and operates a fleet of about 185
aircraft.  The Italian government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection.  The carrier booked net losses of EUR520 million in
2003; EUR813 million in 2004; and EUR168 million in 2005.


FIAT SPA: Chief Executive Refuses to Cut Back Capacity
------------------------------------------------------
Fiat SpA's Chief Executive Sergio Marchionne refused to cut back
capacity of its European plants and felt confident that Fiat's
market share will continue to be above 30% in Italy, Stephen
Power writes for the Wall Street Journal.

Mr. Marchionne changed the company's outlook for the European
market-share growth to 8% in 2006, but did not provide the
company's full-year car sales target.

"We've moved Fiat away from the brink of extinction, but the
real work has just begun," Mr. Marchionne told WSJ.

Fiat's new-car registrations in May rose 55% compared to a year
ago.  In Europe, new Fiat car registration increased to 22% in
the five-month period.  WSJ said the automaker's turnaround
relied heavily on the sales of its new Grande Punto subcompact
model.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.

                        *     *     *

In August 2005, S&P revised its outlook on Fiat to stable from
negative.  At the same time, it affirmed its 'BB-' long-term and
'B' short-term corporate credit ratings on the group.

As reported in the Troubled Company Reporter-Europe on Feb. 10,
Fitch Ratings has changed the Outlook on Fiat S.p.A.'s 'BB-'
Senior Unsecured rating to Stable from Negative.  The agency has
at the same time affirmed the Senior Unsecured and Short-term
'B' ratings.  EUR6 billion of debt is affected by this Rating
action.  The Outlook change is underpinned by early signs that
the restructuring plan is on track, the stabilization of Fiat
Auto's market shares in late 2005 and the successful resolution
of a number of credit issues.


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


AE PETROL: Creditors Must File Claims by July 3
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP AE Petrol insolvent on April 13.

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
         Almaty Region
         Kazakhstan
         Tel: 8 (3332) 26-20-31


AKM-HOLDING: Creditors Must File Claims by June 30
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube Region
declared LLP AKM-Holding insolvent.

Creditors have until June 30 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Aktube Region
         Altynsarina Str. 31
         Aktobe, Kazakhstan
         Tel: 8 (3132) 21-30-32


AKTOBE-LADA: Claims Registration Ends June 30
---------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube Region
declared JSC Aktobe-Lada insolvent.

Creditors have until June 30 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Aktube Region
         Altynsarina Str. 31
         Aktobe, Kazakhstan
         Tel: 8 (3132) 21-30-32


BEL-AGACH NEFTESNAB: Claims Registration Ends June 30
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Bel-Agach Neftesnab insolvent.  Creditors
have until June 30 to submit written proofs of claim.

The Specialized Inter-Regional Economic Court of East Kazakhstan
Region can be reached at 8 (3232) 55-02-78.


HALYK BANK: Fitch Rates US$300-Mln Eurobond at Long-Term BB+
------------------------------------------------------------
Fitch Ratings assigned Kazakhstan-based Halyk Bank's US$300
million 7.75% eurobond due May 2013 a final Long-term BB+
rating.

Halyk is rated Long-term Foreign Currency IDR BB+ with a Stable
Outlook, Local Currency IDR BBB- with a Stable Outlook, Short-
term Foreign Currency B, Short-term Local Currency F3,
Individual C/D, and Support 3.

Halyk is the third largest bank in Kazakhstan holding 12% of the
system's assets at end-2005.  The bank operates the largest
branch network in the country of 546 branches, reflecting its
roots as the former state savings bank and also acts as a non-
exclusive pension and social security payment and settlement
agent.


JAIYK-ASFALT: West Kazakhstan Court Opens Bankruptcy Proceedings
----------------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
Region commenced bankruptcy proceedings against LLP Joint
Venture Jaiyk-Asfalt on April 24.

A hearing will take place at:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan Region
         Seifullina Str. 37
         Uralsk, West Kazakhstan Region
         Kazakhstan


KAZAKHSTAN-KURYLYS-SNAB: Creditors' Claims Due June 30
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Astana
commenced bankruptcy proceedings against LLP Kazakhstan-Kurylys-
Snab.

Creditors have until June 30 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Astana
         Room 211
         Tashenova Str. 6/2
         Astana, Kazakhstan


PERFECT EKSPO: Creditors' Claims Due June 30
-------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Perfect Ekspo insolvent.  Creditors have
until June 30 to submit written proofs of claim.

The Specialized Inter-Regional Economic Court of East Kazakhstan
Region can be reached at 8 (3232) 55-02-78.


REMELEKTRODIZEL: Proof of Claim Deadline Slated for June 30
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Remelektrodizel insolvent.  Creditors have
until June 30 to submit written proofs of claim.

The Specialized Inter-Regional Economic Court of East Kazakhstan
Region can be reached at 8 (3232) 55-02-78.


SHOMIR: Proof of Claim Deadline Slated for June 30
--------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Shomir insolvent.  Creditors have until
June 30 to submit written proofs of claim.

The Specialized Inter-Regional Economic Court of East Kazakhstan
Region can be reached at 8 (3232) 55-02-78.


TENTEKSKAYA TES: Karaganda Court Starts Bankruptcy Process
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region commenced bankruptcy proceedings against LLP Tentekskaya
TES (RNN 301900212005).

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

         Industrialnaya Str. 38
         Shahtinsk
         Karaganda Region
         Kazakhstan


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


KONINKLIJKE AHOLD: Earns EUR243 Million for First Quarter 2006
--------------------------------------------------------------
Koninklijke Ahold has released its unaudited results for the
first quarter of 2006.

As of March 31, 2006, the retail giant had EUR243 million in net
income on EUR14.1 billion on net sales, compared to EUR139
million in net income on EUR12.97 billion of net sales a year
ago.

Market conditions remained competitive and, particularly in the
United States, energy costs continued to impact consumer
behaviour.

                        Sales performance

Stop & Shop/Giant-Landover Arena

   -- Net sales in the arena decreased by 0.8% to US$5 billion.
      Excluding the net sales to BI-LO/Bruno's (US$83 million),
      net sales increased by 0.9%;

   -- Identical sales at Stop & Shop decreased by 1.3% (2.2%
      excluding sales of gasoline).  Identical sales at
      Giant-Landover decreased by 2.5%;

   -- Comparable sales at Stop & Shop decreased by 0.8% and at
      Giant-Landover by 2%.

Giant-Carlisle/Tops Arena

   -- Net sales in the arena decreased by 5.6% to US$1.8
      billion, primarily due to the divestment of Tops stores in
      2005.

   -- Identical sales at Giant-Carlisle increased by 2.9% (1.5%
      excluding sales of gasoline).  Identical sales at Tops
      decreased by 6.5% (7.3% excluding sales of gasoline).

   -- Comparable sales at Giant-Carlisle increased by 5.1% but
      at Tops decreased by 5.5%.

Albert Heijn Arena

   -- Net sales in the arena increased by 4.8% to EUR2.1
      billion;

   -- Net sales at Albert Heijn increased by 4.6% to EUR1.9
      billion;

   -- Identical sales at Albert Heijn increased by 3%.

Central Europe Arena

   -- Net sales increased by 37.4% to EUR558 million, reflecting
      a change in the accounting period from three months to 16
      weeks (EUR99 million) as well as acquisitions and exchange
      rate changes.  This was partially offset by the divestment
      of Polish hypermarkets.  Identical sales for the arena
      decreased by 5.6%.

Schuitema

   -- Net sales increased by 1% to EUR951 million.

U.S. Foodservice

   -- Net sales at U.S. Foodservice increased by 3.8% to US$5.8
      billion. Net sales were negatively impacted by
      approximately 1% as a result of the decision to exit the
      Sofco business in the third quarter of 2005.  Inflation
      had a negligible impact on quarterly comparisons;

   -- Net sales at U.S. Foodservice Broadline company increased
      by 3.9% to US$5.1 billion;

   -- Net sales at North Star Foodservice increased by 3.6% to
      US$747 million.

Unconsolidated Joint Ventures and Associates

   -- Net sales of the unconsolidated joint ventures and
      associates increased by 1%. Excluding the impact of
      currency, net sales increased by 2.3%.

A copy of Koninklijke Ahold's first quarter results for 2006 is
available free-of-charge at http://researcharchives.com/t/s?be0

                           About Ahold

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

                        *     *     *

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


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


ASKIZSKAYA BREAD 18: Bankruptcy Hearing Slated for July 5
---------------------------------------------------------
The Arbitration Court of Khakasiya Republic will convene at
11:00 a.m. on July 5 to hear the bankruptcy supervision
procedure on OJSC Askizskaya Bread Depot 18.  The case is
docketed under Case no. A74-1242/2006.

The Temporary Insolvency Manager is:

         A. Timoshkevich
         Post User Box 16795
         662074 Krasnoyarsk-74
         Russia

The Debtor can be reached at:

         OJSC Askizskaya Bread Depot 18
         Askiz
         Khakasiya Republic
         Russia


CONSTRUCTION SERVICE: Court Commences Bankruptcy Supervision
------------------------------------------------------------
The Arbitration Court of Moscow Region has commenced bankruptcy
supervision procedure on CJSC Construction Service (TIN
7731124811).  The case is docketed under Case no. A40-65804/
05-124-156b.

The Temporary Insolvency Manager is:

         R. Mochalin
         Building 2
         Trofimova Str. 21
         115432 Moscow
         Russia

The Debtor can be reached at:

         CJSC Construction Service
         Domodedovskaya Str. 20
         115551 Moscow
         Russia


GAZPROM: Inks Gas Supply Deal with Denmark's DONG Energy
--------------------------------------------------------
Alexander Medvedev, Deputy Chairman of Gazprom's Management
Committee and Kurt Bligaard Pedersen, Executive Vice President
of DONG Energy (Denmark) signed the first Contract for Russian
gas supply to Denmark on June 16.

Under the Contract, gas deliveries to Denmark will start in 2011
and will be implemented by the North European Gas Pipeline.

DONG Energy is committed to annually buying within 20 years 1
bcm of gas, with Contract provisions stipulating potential
increase in gas supply.

The parties also signed a Contract, under which DONG Energy
would supply gas to Gazprom Marketing and Trading entering the
Gazprom Group of companies.  The gas will be marketed within 15
years in the Great Britain starting from 2007.  The Langeled gas
pipeline, designed to link the Norwegian Ormen Lange gas field
with the Great Britain, will pump 600 MMcm/y.

"By signing the long-term Contracts with DONG Energy, we are
gaining access to a previously unconquered region -- the Danish
gas market.  On the other hand, Gazprom Marketing and Trading
receives the opportunity of diversifying its purchasing
portfolio and acquiring, I'd like to emphasize it, also over a
long-term the gas extracted in the North
Sea," noted Alexander Medvedev.

"We are delighted to announce the commencement of long-term
cooperation with the world's largest gas supplier.  The
Contracts inked will enable DONG Energy to continue diversifying
prospective gas deliveries to its customers.  Apart from gas
originating in the Danish and Norwegian sectors of the North
Sea, our import portfolio now also includes gas from Russia,"
underlined Kurt Bligaard Pedersen.

                        About DONG Energy

DONG Energy is an energy leader in North Europe.  The company is
mainly engaged in energy production, distribution, marketing and
supply to North European consumers. Over the next few years,
DONG Energy plans to list its shares on the Copenhagen Stock
Exchange.  DONG Energy has ownership interests in the Ormen
Lange field and Langeled pipeline, which is anticipated to be
operational in 2007.


                          About Gazprom

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

                         *     *     *

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

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

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


INTERNATIONAL MOSCOW: S&P Puts Credit Ratings on Watch Positive
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' long-term and
'B' short-term counterparty credit ratings on Russia-based
International Moscow Bank on CreditWatch with positive
implications.

The rating action follows the announcement on June 20, that the
Italian bank UniCredito Italiano SpA, through its subsidiary
Bayerische Hypo- und Vereinsbank AG (HVB), has reached an
agreement with Finland-based Nordea Bank Finland PLC to acquire
its 26.4% stake in IMB.  This acquisition will increase HVB's
overall shareholding in IMB to 79% from 53%.

The transaction is subject to regulatory approvals from the
relevant authorities, and will be completed in the third quarter
of 2006.

"The ratings on IMB are likely to be raised by a maximum of two
notches if the transaction is approved and completed," said
Standard & Poor's credit analyst Eugene Tarzimanov.

The extent of the rating change will depend on the level of
financial and operational support given to IMB by UniCredito,
and on the maintenance of its conservative risk profile in view
of the still-high-risk Russian banking market.  "We expect IMB
to take an increasingly important position within the group," he
added.

The ratings on IMB remain constrained by the bank's marginal,
although improving, capitalization level; operational risks
related to the bank's network reorganization; large single-party
concentration in funding; and the risky operating environment in
Russia.  These negative factors are mitigated by parental
support to IMB from HVB; its strong position in the large
Russian corporate finance market; relatively well-developed
risk-management systems; ample liquidity; and good levels of
profitability.


INZENSKAYA FURNITURE: Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Ulyanovsk Region has commenced
bankruptcy supervision procedure on OJSC Inzenskaya Furniture
Factory.  The case is docketed under Case no. A72-12732/
05-19/137-B.

The Temporary Insolvency Manager:

         Mr. N. Korchagin
         Office 37
         Krymova Str. 12432071
         Ulyanovsk Region

The Debtor can be reached at:

         OJSC Inzenskaya Furniture Factory
         Inza
         Ulyanovsk Region
         Russia


JOINT TIMBER: Court Starts Bankruptcy Supervision
-------------------------------------------------
The Arbitration Court of Vologda Region will convene on July
20at 10:00 a.m. to hear the bankruptcy supervision procedure on
CJSC Joint Timber Enterprise.  The case is docketed under Case
No. A13-16199/2005-25.

The Temporary Insolvency Manager is:

         S. Chelpanov
         Section 7
         Novgorodskiy Pr. 87
         163000 Arkhangelsk
         Russia

The Debtor can be reached at:

         CJSC Joint Timber Enterprise
         Struzhkina Str. 35
         Babaevo
         Vologda Region
         Russia


KUZNETSKIY BRICKWORKS: Court Names A. Dogadin to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Penza Region appointed Mr. A. Dogadin
as insolvency manager for OJSC Kuznetskiy Brickworks.  He can be
reached at:

         A. Dogadin
         Lunacharskogo Str. 53
         440061 Penza
         Tel: (841-2)64-19-73

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A49-994/2006-102B/26.

The Debtor can be reached at:

         OJSC Kuznetskiy Brickworks
         Kirpichnyj Per. 1
         Kuznetsk
         Penza Region
         Russia


NORTH-WEST: Fitch Keeps International Default Rating at B+
----------------------------------------------------------
Fitch Ratings assigned OAO North-West Telecom a National Senior
Unsecured rating of A with a Stable Outlook.  NWT's existing
international Issuer Default rating is B+ with a Stable Outlook
and its Short-term is B.

Fitch has also assigned A ratings to two NWT's existing bonds:
Issue Two RUB1.5 billion bond with a maturity in October 2007
and Issue Three RUB3 billion bond with a maturity in Feb 2011.

The ratings reflect Fitch's expectation that NWT is well placed
to maintain its dominant market position as a regional incumbent
telecom operator.  The company controls approximately 94%
residential fixed lines and around 55% of the corporate segment
in northwest Russia.  Fitch's rating for NWT takes into account
the fact that it is only moderately leveraged as evidenced by
its net debt/EBITDA ratio of 1.7x and net debt/funds from
operations of 2.4x at end-2004.


NOVOUSENSKAYA POULTRY: Bankruptcy Hearing Slated for July 20
------------------------------------------------------------
The Arbitration Court of Saratov Region will convene at 2:40
p.m. on July 20 to hear the bankruptcy supervision procedure on
OJSC Novousenskaya Poultry Farm at:

         The Arbitration Court of Saratov Region
         Department 31
         Babushkion Vvoz Str. 1
         Saratov Region
         Russia

The case is docketed under Case no. A57-706B/05-31.

The Temporary Insolvency Manager is:

         Mr. V. Laptev
         Chapaeva Str. 119
         410006 Saratov Region
         Russia

The Debtor can be reached at:

         OJSC Novousenskaya Poultry Farm
         Novouzensk
         410340 Saratov Region
         Russia


OREL-INZH-SEL-STROY: Court Names I. Maslov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Orel Region appointed Mr. I. Maslov as
insolvency manager for OJSC Orel-Inzh-Sel-Story.  He can be
reached at:

         I. Maslov
         8th Floor
         Leskova Str. 19A
         302027 Orel
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case no.
A48-5351/05-17b.

The Debtor can be reached at:

         OJSC Orel-Inzh-Sel-Stroy
         Aviatsionnaya Str. 14
         302000 Orel
         Russia


SEVERSTAL: Arcelor Board to Decide on Mittal Deal by June 25
------------------------------------------------------------
The Board of Directors for Arcelor SA met on June 21 to consider
the improvements to the OAO Severstal merger transaction
proposed by Severstal's Chairman and largest shareholder Alexei
Mordashov.  All directors were present or represented at the
meeting.

The Board also received a status report concerning ongoing
discussions between Mittal Steel and Arcelor.

The Arcelor Board decided to postpone to June 28 the deadline
for shareholders to block shares and file proxies in connection
with their participation in person or by authorized
representative at the shareholders' meeting of June 30, 2006.

The Board unanimously decided to meet again at 10:00 a.m. CET on
Sunday, June 25, in order to take a decision regarding the
latest proposals from Mittal Steel and Mr. Mordashov.  Mittal's
offer expires on July 5.

                        About Arcelor

Headquartered in Avenue de la Liberte, Luxembourg, Arcelor S.A.
http://www.arcelor.com/-- is the number one steel company in
the world with EUR32.6 billion in turnover in 2005.  The company
holds leadership positions in its main markets: automotive,
construction, household appliances and packaging as well as
general industry.  In 2006, Arcelor employs 110,000 associates
in over 60 countries.  The company places its commitment to
sustainable development at the heart of its strategy and
ambitions to be a benchmark for economic performance, labor
relations and social responsibility.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As at March 1, 2004, 82.75% of Severstal's share capital was
controlled directly or indirectly by Alexey Mordashov, Chairman
of Severstals Board of Directors.  Institutional investors held
around 6.5% of Severstals shares while management and employees
held the remaining 10.75%.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on May 30, Standard & Poor's
Ratings Services placed its 'B+' long-term corporate credit
rating on Russia-based integrated steel maker OAO Severstal on
CreditWatch with positive implications, following the
announcement of an agreed merger with Luxembourg steelmaker
Arcelor S.A.

Moody's Investors Service also placed the corporate family
rating of B1 and the senior unsecured rating of B2 of Severstal
on review for possible upgrade following the intention of
Severstal's majority owner to merge Severstal and its mining
assets with Arcelor.

On Feb. 13, Moody's has changed the outlook of Severstal's
ratings from stable to positive, following the company's
announcement of the acquisition of a majority interest in mining
assets currently held by affiliated parties outside the
borrowing group.

Fitch Ratings also placed OAO Severstal's ratings of Issuer
Default BB-, Senior Unsecured BB-, Short-term B and National
Long-term A+ on Rating Watch Positive, following Severstal's
agreement to merge with Arcelor.


SEVERSTAL: French Market Regulator Suspends Arcelor Shares
----------------------------------------------------------
Autorite des Marches Financiers, the French market regulator,
has suspended Arcelor S.A.'s shares from trading at the Paris
Stock Exchange pending a decision from the Company's board on
the offers made by OAO Severstal and Mittal Steel, The
Associated Press says.  The shares were also suspended in Spain,
Luxembourg, and Belgium.

AMF wants to clarify the status of the talks between Arcelor and
bidders Severstal and Mittal.

The suspension came after Alexei Mordashov, Severstal's majority
owner, sweetened his offer by reducing his resulting stake from
32% to 25% in the Arcelor-Severstal merger.

Arcelor's board will meet on June 25 to decide on Mr.
Mordashov's revised offer as well as Mittal's.  Arcelor's
shareholders will meet on June 30 to vote on the pre-signed
Arcelor-Severstal deal.

"Discussions are still open with Severstal and Mittal,"
Emmanuel Soupre, a fund manager at Neuflize Gestion, told
Bloomberg News.  "It is too early to know what solution could be
proposed by the management of Arcelor.  Things are still
evolving," he said.

                        About Arcelor

Headquartered in Avenue de la Liberte, Luxembourg, Arcelor S.A.
http://www.arcelor.com/-- is the number one steel company in
the world with EUR32.6 billion in turnover in 2005.  The company
holds leadership positions in its main markets: automotive,
construction, household appliances and packaging as well as
general industry.  In 2006, Arcelor employs 110,000 associates
in over 60 countries.  The company places its commitment to
sustainable development at the heart of its strategy and
ambitions to be a benchmark for economic performance, labor
relations and social responsibility.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of approximately EUR150 per ton.

As at March 1, 2004, 82.75% of Severstal's share capital was
controlled directly or indirectly by Alexey Mordashov, Chairman
of Severstals Board of Directors.  Institutional investors held
around 6.5% of Severstals shares while management and employees
held the remaining 10.75%.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on May 30, Standard & Poor's
Ratings Services placed its 'B+' long-term corporate credit
rating on Russia-based integrated steel maker OAO Severstal on
CreditWatch with positive implications, following the
announcement of an agreed merger with Luxembourg steelmaker
Arcelor S.A.

Moody's Investors Service also placed the corporate family
rating of B1 and the senior unsecured rating of B2 of Severstal
on review for possible upgrade following the intention of
Severstal's majority owner to merge Severstal and its mining
assets with Arcelor.

On Feb. 13, Moody's has changed the outlook of Severstal's
ratings from stable to positive, following the company's
announcement of the acquisition of a majority interest in mining
assets currently held by affiliated parties outside the
borrowing group.

Fitch Ratings also placed OAO Severstal's ratings of Issuer
Default BB-, Senior Unsecured BB-, Short-term B and National
Long-term A+ on Rating Watch Positive, following Severstal's
agreement to merge with Arcelor.


SOTSGORBANK: S&P Assigns CCC/C Counterparty Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC/C'
counterparty credit ratings to Russia-based Sotsgorbank.
At the same time, Standard & Poor's assigned its 'ruBB-' Russia
national scale rating to the bank.  The outlook is positive.

"The ratings on Sotsgorbank reflect its limited commercial
franchise, its high concentrations in lending, and constrained
financial flexibility.  The bank does, however, benefit from
adequate recurring earnings and capital, and a stable ownership
and management structure," said Standard & Poor's credit analyst
Eugene Tarzimanov.

With total assets of US$140 million at Dec. 31, 2005,
Sotsgorbank is a small bank headquartered in Moscow.  Its
commercial franchise is limited and contained within Moscow and
the Moscow region. Core clientele includes small and midsize
Russian companies involved in trade and real estate.  The bank
is majority owned by a stable team of senior managers, which
have been with the bank since 1995.

"The positive outlook reflects Standard & Poor's expectation
that SOTSGORBANK will improve its commercial profile by
addressing its credit concentrations and reducing its exposure
to the real-estate sector," added Mr. Tarzimanov.

The bank's focus on retail and small and midsize enterprise
lending should improve margins and provide a flow of recurrent
revenues in the future.  An upgrade might follow if SOTSGORBANK
builds a larger and more diversified customer base while
maintaining an adequate level of the capitalization, and
improves its funding profile. A negative rating action might
result if capitalization level erodes, lending concentrations
worsen, or the quality of the loan portfolio and earnings
structure deteriorates.


SUKHINICHI-AGRO-PROM-KHIMIYA: G. Perov to Manage Assets
-------------------------------------------------------
The Arbitration Court of Kaluga Region appointed Mr. G. Perov as
insolvency manager for OJSC Sukhinichi-Agro-Prom-Khimiya.  He
can be reached:

         G. Perov
         Tyavkina Str. 50
         Sukhinichi
         249270 Kaluga Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A23-6277/05B-10-128.

The Debtor can be reached at:

         OJSC Sukhinichi-Agro-Prom-Khimiya
         Tyavkina Str. 50
         Sukhinichi
         249270 Kaluga Region
         Russia


USTYANSKOYE: Court Begins Bankruptcy Supervision
------------------------------------------------
The Arbitration Court of Krasnoyarsk Region has commenced
bankruptcy supervision procedure on CJSC Ustyanskoye.  The case
is docketed under Case no. A33-4572/2006.

The Temporary Insolvency Manager is:

         A. Shevtsov
         Post User Box 78
         Berzovka
         662520 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Ustyanskoye
         Ustyansk
         Abanskiy Region
         Krasnoyarsk Region
         Russia


ZIANCHURA-MILK: Court Appoints G. Yaparov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. G.
Yaparov as insolvency manager for OJSC Zianchura-Milk (TIN
0222005144).  He can be reached at:

         G. Yaparov
         Tramvaynaya Str. 4B
         Ufa-27
         450027 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A07-37554/05-G-ADM.

The Debtor can be reached at:

         OJSC Zianchura-Milk
         Khabibullina Str. 38.
         Isyangulovo
         Zianchurinskiy Region
         Bashkortostan Republic
         Russia


===========
S W E D E N
===========


CONCORDIA BUS: To Publish First Quarter Results by June 27
----------------------------------------------------------
Concordia Bus AB will release its first quarter FY2006-2007
results on June 27.

Quarterly report and presentation will be available to download
from http://www.concordiabus.com/after 12:00 noon (U.K. time)
on June 27.

                       About Concordia Bus

Headquartered in Stockholm, Sweden, Concordia Bus AB --
http://www.concordiabus.com/-- is the largest private bus
transportation company in the Nordic region with revenues for
the six months period ended Aug. 31, 2005, of SEK2.3 billion.

                        *     *     *

As reported in the TCR-Europe on Feb. 15, Moody's Investors
Service has upgraded the corporate family rating of Concordia
Bus AB to B3 from Caa3.

Concurrently the rating on the EUR130 million senior secured
notes issued by Concordia Bus Nordic AB was upgraded to B3 from
Caa1 and the rating on the EUR160 million senior subordinated
notes issued by Concordia Bus was withdrawn.

The ratings upgrade reflects Moody's view that the restructuring
has substantially strengthened the company's financial position
and that the current interest cost burden (estimated to be c.
SEK170 million per annum) should be sustainable over the near
term given the expected performance of the company.

Ratings upgraded:

   -- Concordia Bus AB's corporate family rating has been
      upgraded to B3 (from Caa3);

   -- The rating on the EUR130 million 9.125% secured notes due
      2009 issued by Concordia Bus Nordic AB has been upgraded
      to B3 from Caa1.

Moody's said the outlook for all ratings is stable.


=====================
S W I T Z E R L A N D
=====================


SWISS INTERNATIONAL: To Expand Long-Haul Fleet Next Winter
----------------------------------------------------------
SWISS International Air Lines will expand its long-haul fleet by
two Airbus A330-200 aircraft as of the next winter timetable.

Configured for 42 business class and 187 economy class seats,
these aircraft will replace leased-in equipment on East and West
Africa routes and also be used for timetable improvement on
intercontinental routes.

In pushing ahead with its commitment to growth, SWISS will add
two Airbus A330-200 to its long-haul fleet.  The two new
aircraft are to be integrated into SWISS flight operations as of
the end of this year.  Lufthansa supports this fleet expansion.
With the restructuring program that was introduced last year now
largely completed and negotiations with most employee groups
either concluded or at an advanced stage, the Management Board
and the Board of Directors have given the green light for fleet
expansion.  Factors supporting this decision are the high seat
load factor for the current long-haul route network and strong
demand for as many daily services as possible.

"SWISS wants to grow step by step.  By adding these two long-
haul aircraft, SWISS is strengthening the quality of its route
network.  They are also highly compatible with our existing
fleet," commented SWISS CEO Christoph Franz.

"We have taken advantage of the opportunity to expand our long-
haul fleet even though our restructuring program, which aims to
bring about a permanent improvement in our cost structure, is
not yet complete.  Significant milestones have already been
achieved, and we will continue resolutely in the same direction.
The integration of these two aircraft will generate about 150
jobs for flying personnel alone.  This will help us to realise
our plans to boost productivity on the part of our Airbus pilots
without having to shed jobs.  And towards the end of the summer
we can, for the first time, start recruiting new flight
attendants."

SWISS will take delivery of the first Airbus A330-200 in mid-
November.  It will be put into service on flights to
Malabo/Douala/Yaounde and Nairobi/Dar es Salaam.

The second aircraft will arrive in December and add capacity on
existing routes.  Flights LX16/15 from Zurich to New York JFK
and LX64/65 from Zurich to Miami will then operate daily.
Zurich-Riyadh-Jeddah will increase from three to four weekly
frequencies, Zurich-Nairobi-Dar es Salaam from four to five
weekly frequencies and Zurich-Sao Paulo-Santiago de Chile from
five to six weekly frequencies.

Both Airbus A330-200 aircraft were previously in service at
Lufthansa.  They have a 229-seat, two-class configuration with
42 business class and 187 economy class seats, with a cabin
interior practically identical with that of the existing SWISS
Airbus A330s.  Their addition brings the SWISS long-haul fleet
to 21 aircraft, consisting of nine A340-300 and eleven A330-200
aircraft, plus the leased-in Boeing Business Jet (BBJ) in
service on the Zurich-Newark route.

                    About Swiss International

Headquartered in Bazel, Switzerland, Swiss International Air
Lines -- http://www.swiss.com/-- rose from the ashes of
predecessor Swissair, to become the country's new flag carrier.
Swiss operates short-haul flights to nearly 75 destinations in
Europe, North Africa, and the Middle East.  The carrier also
operates 37 medium- and long-haul flights.

As of Dec. 31, 2005, Swiss International had CHF2.818 billion in
total assets, CHF2.11 billion in total liabilities and CHF708
million in total equity.

As of Dec. 31, 2005, the carrier had CHF970 million in current
assets and CHF1.118 billion in current liabilities.


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


AGROTEPLOTEHNIKA: Court Names Varvara Majsa to Manage Assets
------------------------------------------------------------
The Economic Court of Rivne Region appointed Varvara Majsa as
Liquidator/Insolvency Manager for Agroteplotehnika (code EDRPOU
24171829.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 24.  The case is docketed
under Case No. 4/8.

The Economic Court of Rivne Region is located at:

         Yavornitski Str. 59
         33001 Rivne
         Ukraine

The Debtor can be reached at:

         Agroteplotehnika
         33000 Rivne
         Ukraine


BAHMACHKONSERVMOLOKO: Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Chernigiv Region commenced bankruptcy
supervision procedure on CJSC Bahmachkonservmoloko (code EDRPOU
00418188) on April 27.

The case is docketed under Case No. 9/134-b.

The Temporary Insolvency Manager is:

         O. Barbarov
         Polubotok Str. 18
         14000 Chernigiv Region
         Ukraine

The Economic Court of Chernigiv Region is located at:

         Miru Avenue 20
         14000 Chernigiv Region
         Ukraine

The Debtor can be reached at:

         CJSC Bahmachkonservmoloko
         Peremogi Str. 13
         Bahmach
         16500 Chernigiv Region
         Ukraine


BEZPEKA: Court Names Oleksandr Dyomin as Liquidator
---------------------------------------------------
The Economic Court of Donetsk Region appointed Oleksandr Dyomin
as Liquidator/Insolvency Manager for LLC Bezpeka (code EDRPOU
31492586).  He can be reached at:

         Oleksandr Dyomin
         Politbijtsiv Str. 16/59
         Donetsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 20.  The case is docketed
under Case No. 27/153 B.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         LLC Bezpeka
         50-richya SRSR Str. 144/5
         Donetsk Region
         Ukraine


IRONA: Court Names S. Yavorskij to Liquidate Assets
---------------------------------------------------
The Economic Court of Zhitomir Region appointed Mr. S. Yavorskij
appointed as Liquidator/Insolvency Manager for LLC IRONA (code
EDRPOU 31945095)

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 7.  The case is docketed
under Case No. 3/97-B.

The Economic Court of Zhitomir Region is located at:

         Putyatinski square, 3/65
         10002 Zhitomir Region
         Ukraine

The Debtor can be reached at:

         LLC Irona
         Vatutin Str. 172
         10001 Zhitomir Region
         Ukraine


KOMEKS-BROK: Court Names Mr. S. Yavorskij Insolvency Manager
------------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Yavorskij as
Liquidator/Insolvency Manager for LLC KOMEKS-BROK (code EDRPOU
14297653)

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 7.  The case is docketed
under Case No. 44/376-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Komeks-Brok
         Industrialna Str. 27
         03056 Kyiv Region
         Ukraine


KRAMATORSK COLD: Court Names Oleg Kozhuhov as Liquidator
--------------------------------------------------------
The Economic Court of Donetsk Region appointed Oleg Kozhuhov as
Liquidator/Insolvency Manager for OJSC Kramatorsk Cold Combine
(code EDRPOU 01550903).  He can be reached at:

         Oleg Kozhuhov
         50-richya SRSR Str. 144/42
         83055 Donetsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 12.  The case is docketed
under Case No. 5/99 b.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Kramatorsk Cold Combine
         Sherbakov Str. 2
         Kramatorsk
         84333 Donetsk Region
         Ukraine


MARSH: Kyiv Court Commences Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Marsh (code EDRPOU 31841172) on
March 28.  The case is docketed under Case No. 43/230.

The Temporary Insolvency Manager is:

         Roman Sapelin
         Kiyivska Str. 168/128
         Obuhiv
         Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Marsh
         04112 Kyiv Region
         Oranzherejna Str. 3
         Ukraine


RUZHIN' MILK: Court Names V. SemenchU.K. as Liquidator
----------------------------------------------------
The Economic Court of Zhitomir Region appointed Mr. V.
SemenchU.K. as Liquidator/Insolvency Manager for Production
Association Ruzhin' Milk Enterprise (code EDRPOU 30379672).  He
can be reached at:

         V. SemenchU.K.
         Lenin Str. 68
         Ruzhin
         13600 Zhitomir Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
4/56 B.

The Debtor can be reached at:

         Production Association Ruzhin' Milk Enterprise
         Lenin Str. 68
         Ruzhin
         13600 Zhitomir Region
         Ukraine


SOZAP: Court Names T. Kushnir to Liquidate Assets
-------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. T. Kushnir as
Liquidator/Insolvency Manager for LLC Sozap (code EDRPOU
24216153).  He can be reached at:

         T. Kushnir
         Pravdi Avenue 96/17
         04208 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 12.  The case is docketed
under Case No. 93/11 b-06.

The Economic Court of Kyiv Region is located at:

         Komintern Str. 165
         01032 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Sozap
         Zhovtneva Str. 3
         Uzin
         Bila Tserkva District
         Kyiv Region
         Ukraine


TOLDI: Court Appoints V. Melnikov to Manage Insolvency Assets
-------------------------------------------------------------
The Economic Court of Odessa Region appointed Mr. V. Melnikov as
Liquidator/Insolvency Manager for LLC Toldi (code EDRPOU
21022365).  He can be reached at:

         V. Melnikov
         Zooparkova Str. 7-a/3
         68001 Odessa Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 13.  The case is docketed
under Case No. 2/101-06-3532.

The Economic Court of Odessa Region is located at:

         Shevchenko Avenue 4
         65032 Odessa Region
         Ukraine

The Debtor can be reached at:

         LLC Toldi
         Zooparkova Str. 7-a/3
         68001 Odessa Region
         Ukraine


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


52 LARK: Creditors Pass Winding Up Resolution
---------------------------------------------
Creditors of 52 Lark Lane Limited passed a resolution to wind up
the company's operations during an extraordinary general meeting
on April 5.

Colin Burke of Milner Boardman & Partners was appointed
Liquidator.

The company can be reached at:

         52 Lark Lane Limited
         Lark Lanee
         Liverpool
         Merseyside L17 8UU
         United Kingdom
         Tel: 0151 726 707
         Web: http://www.larklane.com/


995 LTD: Financial Woes Trigger Liquidation
-------------------------------------------
995 Limited is winding up its operations after creditors
established the company could no longer continue its business
due to mounting debts.

Graham Randall and Mark Roach of BDO Stoy Hayward LLP were
appointed Joint Liquidators.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member
firm of BDO International, the world's fifth largest accountancy
network with more than 600 offices in 100 countries.  Its
services include: audit and assurance, business restructuring,
corporate finance, disputes and investigations, investment
management, risk assurance services, tax services, and
valuations.

The company can be reached at:

         995 Limited
         Brunel House
         995 Gorseinon Road
         Penllergaer
         Swansea SA4 9RU
         United Kingdom
         Tel: 0845 130 2440


ABSOLUTE CUSTOMER: Creditors' Meeting Slated for June 30
--------------------------------------------------------
Creditors of Absolute Customer Management Ltd. (Company Number
04145947) will meet at 11:00 a.m. on June 30 at:

         Devonshire House
         1 Devonshire Street
         London W1W 5DR
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on June 29 at:

         Mark Richard Phillips and Murzban Khurshed Mehta
         Joint Administrators
         Citroen Wells
         Devonshire House
         1 Devonshire Street
         London W1W 5DR
         United Kingdom
         Tel: +44 (0) 20 7304 2000
         Fax: +44 (0) 20 7304 2020

Citroen Wells -- http://www.citroenwells.co.uk/-- provides
accountancy and tax services to businesses and personal clients.


ACCIDENT CLAIMS: Taps David Wald to Liquidate Assets
----------------------------------------------------
David Wald, of D. Wald & Co., was appointed Liquidator of
Accident Claims Solutions Limited after creditors decided to
wind up the company on April 5.

The company can be reached at:

         Accident Claims Solutions Ltd.
         1st Floor
         2-4 Canning Road
         Middlesex Harrow HA3 7JS
         United Kingdom
         Tel: 0800 3289895


BRITISH AIRWAYS: DOJ & OFT Probes Alleged Cartel Activity
---------------------------------------------------------
The Office of Fair Trading and the United States Department of
Justice are investigating alleged cartel activity involving
British Airways and other airlines in relation to pricing
passenger air transportation, including fuel surcharges.

British Airways is assisting the OFT and DOJ with their
investigations as the company's policy is to conduct business in
compliance with all applicable competition laws.

Commercial Director Martin George and Head of Communications
Iain Burns were given leave of absence during the investigation.

                        About the Company

Headquartered in West Drayton, England, British Airways Plc --
http://www.ba.com/-- is the U.K.'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.


BUSHMAN LTD: Creditors Resolve to Liquidation
---------------------------------------------
Creditors of Kids Kabin Nurseries Limited resolved to liquidate
the company's assets during an extraordinary general meeting on
April 4.

Graham Geoffrey King of Kings was appointed Liquidator.

The company can be reached at:

         Bushman Limited
         10-12 East Parade
         Leeds LS1 2AJ
         United Kingdom
         Tel: 020 7722 8338


CARL BATEMAN: Claims Filing Period Ends July 5
----------------------------------------------
Creditors of Carl Bateman (Developments) Limited approved a
resolution to wind up the company on April 5.

Appointed Joint Liquidators, Gordon Craig and Paul Hennessy, of
Cresswell Associates, require creditors to send in their full
names, addresses and descriptions, full particulars of debts or
claims, and the names and addresses of Solicitors (if any) on or
before July 5.

The company can be reached at:

         Carl Bateman (Developments) Limited
         BCR House Unit 3
         Bredbury Park
         Cheshire SK6 2SN
         United Kingdom
         Tel: 0161 374 5268


COINBEACH LTD: Names Anthony Peter Jackson Liquidator
-----------------------------------------------------
Coinbeach Limited is liquidating its assets after creditors
agreed to wind up the company on March 29.

Anthony Peter Jackson, of Jackson Gregory & Co, was appointed
Liquidator.

The company can be reached at:

         Coinbeach Limited
         Kitling Road
         Knowsley Business Park
         Prescot
         Merseyside L34 9JA
         United Kingdom
         Tel: 0151 546 2727


CONVEYOR ACCESSORIES: Calverton Appoints Kay Johnson as Receiver
----------------------------------------------------------------
Calverton Factors Limited appointed Jonathan Elman Avery-Gee of
Kay Johnson Gee administrative receiver of Conveyor Accessories
Supplies Limited (Company Number 03829362) on June 12.

The administrative receiver can be reached at:

         Kay Johnson Gee
         Griffin Court
         201 Chapel Street
         Salford
         Manchester M3 5EQ
         Tel: 0161 832 6221
         Fax: 0161 834 8479
         E-mail: traceyshanley@kayjohnsongee.com

Headquartered in Northampton, Conveyor Accessories Supplies
Limited manufactures conveyor accessories.


FOODSERVICE SOLUTIONS: HSBC Appoints P&A as Joint Receivers
-----------------------------------------------------------
HSBC Bank PLC appointed Christopher Michael White and John
Russell of The P&A Partnership on June 2 as joint administrative
receivers of:

   -- The Foodservice Solutions Group Limited (Company Number
      03603623)

   -- Catering Connections Limited (Company Number 02893550)

   -- Caterserv Limited (Company Number 03603765)

   -- Fabrications Incorporated Limited (Company Number
      03189446)

   -- Bakers Pride Europe Limited (Company Number 02543072)

   -- Bourgeois U.K. Limited (Company Number 03603776)

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.


HGI REALISATIONS: Taps Harrisons to Administer Assets
-----------------------------------------------------
P.R. Boyle of Harrisons was appointed administrator of HGI
Realisations 2006 Ltd. (formerly The Henley Group International
Ltd)(Company Number 01907975) on May 25.

Harrisons -- http://www.harrisons.uk.com/-- provide advice and
solutions to professional advisors who found their clients
experiencing financial difficulties.

Headquartered in London, HGI Realisations 2006 Ltd. is engaged
in public relations services.


J. PICKLES: Appoints Wilson Pitts as Joint Administrators
---------------------------------------------------------
D.F. Wilson and J.N.R. Pitts of Wilson Pitts were appointed
joint administrators of J. Pickles (Harrogate) Limited (Company
Number 00655956) on May 24.

The administrators can be reached at:

         Wilson Pitts
         Glendevon House
         Hawthorn Park
         Coal Road
         Leeds
         West Yorkshire LS14 1PQ
         United Kingdom
         Tel: 0113 237 5560
         Fax: 0113 237 5561

Headquartered in Knaresborough, United Kingdom, J. Pickles
(Harrogate) Limited manufactures cosmetics and toiletries.


JEC DEVELOPMENTS: Names Gerard Keith Rooney as Administrator
------------------------------------------------------------
Gerard Keith Rooney of Rooney Associates was appointed
administrator of JEC Developments Limited (Company Number
4200911) on May 31.

The administrator can be reached at:

         Rooney Associates
         2nd Floor
         19 Castle Street
         Liverpool L2 4SX
         United Kingdom
         Tel: 0151 236 9999
         Fax: 0151 236 9777
         Web: http://www.rooney.co.uk/
         E-mail: mail@rooney.co.uk

JEC Developments Limited can be contacted at:

         298A Kensington
         Liverpool L7 2RN
         United Kingdom
         Tel: 0151 263 8764


MILLER BROTHERS: Brings In BDO Stoy as Administrators
-----------------------------------------------------
Dermot Justin Power and Toby Underwood of BDO Stoy Hayward LLP
were appointed joint administrators of Miller Brothers Group
Limited (Company Number 4192780) and Miller Brothers
(Electrical) Limited (Company Number 276203) on May 26.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member
firm of BDO International, the world's fifth largest accountancy
network with more than 600 offices in 100 countries.  Its
services include: audit and assurance, business restructuring,
corporate finance, disputes and investigations, investment
management, risk assurance services, tax services, and
valuations.

Miller Brothers Group Limited retails and supplies electrical
appliances.


NOVAE HOLDINGS: A.M. Best Affirms US$11 Million Notes at bb
-----------------------------------------------------------
A.M. Best Co. assigned an issuer credit rating of bbb- to Novae
Group PLC, the new ultimate non-operating holding company of
Novae Syndicates Limited and Novae Insurance Company Limited.

At the same time, A.M. Best upgraded the debt rating to bbb-
from bb+ on the GBP50 million convertible bonds that have become
obligations of NG.  Additionally, A.M. Best affirmed the ICR of
bb+ on Novae Holdings PLC, the debt ratings of bb+ on the US$15
million and US$10 million floating notes and bb on the US$11
million subordinated floating notes, all due in 2034 and issued
by NH.  The ratings on the syndicates managed by NSL remained
unchanged.  The outlook for all these ratings is stable.

The rating of NG reflects its established source of earnings
from the group's existing Lloyd's syndicates, in addition to
anticipated earnings from NICL, the group's newly established
FSA-regulated company.  New capital raised to support NICL will
be segregated from existing capital supporting the group's
Lloyd's business.  The upgrade in the GBP50 million convertible
bonds reflects the transfer of this obligation from NH to NG.


QUALITY ELECTRICAL: Taps BDO Stoy to Administer Assets
------------------------------------------------------
Dermot Justin Power and Toby Underwood of BDO Stoy Hayward LLP
were appointed joint administrators of Quality Electrical Direct
Limited (Company Number 3650721) on May 26.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member
firm of BDO International, the world's fifth largest accountancy
network with more than 600 offices in 100 countries.  Its
services include: audit and assurance, business restructuring,
corporate finance, disputes and investigations, investment
management, risk assurance services, tax services, and
valuations.

Headquartered in Doncaster, United Kingdom, Quality Electrical
Direct Limited retails electrical appliances.


RANKARE LIMITED: K.B.C. Bank Appoints BN Jackson as Receiver
------------------------------------------------------------
K.B.C. Bank NV appointed Michael Colin Sanders of BN Jackson
Norton administrative receiver of Rankare Limited (Company
Number 3147498) on June 5.

The administrative receiver can be contacted at:

         B.N Jackson Norton
         1 Gray's Inn Square
         Gray's Inn
         London WC1R 5AA
         United Kingdom
         Tel: 020 7405 3000

Previously known as Selena Nursing Home, Rankare Limited can be
reached at:

         31 Horn Lane
         London W3 9NJ
         United Kingdom


REFER2US LIMITED: Appoints Neil Chesterton as Administrator
-----------------------------------------------------------
Neil Chesterton of The MacDonald Partnership was appointed
administrator of Refer2us Limited (Company Number 4511748) on
May 31.

The MacDonald Partnership (TMP) -- http://www.tmp.co.uk/-- is a
multi-disciplined firm specializing in business turnarounds of
financially distressed businesses.

Headquartered in Newton Abbot, United Kingdom, Refer2Us Ltd.
offers nurse contract services.


THREE COUNTIES: Claims Registration Ends June 30
------------------------------------------------
Creditors of Three Counties Windows Limited have until June 30
to send in their full names, addresses and descriptions, full
particulars of debts or claims, and the names and addresses of
Solicitors (if any) to appointed Liquidator, John Gorman, of
Hazlewoods LLP.

The company can be reached at:

         Three Counties Windows Limited
         Pichells Place
         Walls Hills Farm
         Hereford Road
         Ledbury, HR8 2PR
         United Kingdom
         Tel: 01531 633558


WILD IVY: Hires Liquidator from S G Banister & Co.
--------------------------------------------------
Tim Alexander Clunie, of S G Banister & Co., was appointed
Liquidator after creditors passed a resolution to wind up the
company on March 31.

The company can be reached at

         Wild Ivy Floral Styling Limited
         Cambridge Court
         210 Shepherds Bush Road
         London W6 7NJ
         United Kingdom
         Tel: 020 7371 9096


WOOLWORTHS GROUP: Sales Drop 6.7% Due to Trading Difficulty
-----------------------------------------------------------
Woolworths Group plc revealed a decrease in total sales for the
current fiscal year.

The retailer reports that Total Group sales from the combined
retail and entertainment wholesale and publishing businesses for
the 19-weeks ended June 10, 2006, have decreased 0.4 percent.

"Trading in the retail part of the business has remained
difficult," Company chairman Gerald Corbett said.  "Woolworths'
like-for-like sales were down by 6.7 percent.  Of this decline,
0.5 percent is due to 54 stores having been closed for periods
during the 19 weeks to enable their 10/10 refit.  The sales
performance post refit has been encouraging, with the uplift
exceeding that achieved in prior years.  A similar number of
stores will be refitted over the remainder of the year."

At a category level, performance has been very mixed.  At one
end of the performance spectrum have been the Entertainment
categories.  Here a weak market in tandem with competitive
pressure has been the most significant factors impacting like-
for-like sales performance.  At the other end of the spectrum
have been the outdoor living and outdoor toy categories, which
have posted good year-on-year increases, supported by our much
strengthened multi-channel capability.

Sales of Easter Eggs produced a positive result despite the
difficult market.  Tighter buying, with the emphasis on everyday
low prices and products exclusive to Woolworths, led to a higher
sell through of Eggs and improved cash margin generation.

"During the 19-week period we have continued to implement
changes to evolve toward a more efficient supply chain for
Woolworths," Mr. Corbett continued.  "This improved supply chain
will allow us to reduce overall stock levels and drive up
margins through more effective deployment of stock.  We are
beginning to see the results of the activity in this area.
Woolworths stocks are currently some GBP15 million below the
prior year levels.  To achieve part of this reduction we have
been clearing stock from the stores and, as a result, gross
margins for the year to date are below the prior year.  This is
expected to recover in the second half and we are anticipating a
full year improvement in gross margin of 100 basis points."

Third party sales at Entertainment U.K. for the 19-week period
were up 21.2 percent.  EUK continues to seek new customers to
replace the Tesco business, which ceases in April 2007 and to
broaden the scope of its capabilities.

2 entertain, the Group's 40 percent-owned entertainment
publishing joint venture with BBC Worldwide, continued to trade
well, with sales in the 19-week period up 4.0 percent.

"We anticipate that the retail environment will continue to be
challenging.  In the short-term, we expect England's
participation in the World Cup to reduce overall high street
footfall.  Against that background the Board will remain focused
on controlling costs and generating cash.  The first half
results will carry the costs of the stock and supply chain
measures which have been initiated to generate improved
performance particularly over the crucial Christmas trading
period.  It is also important that we continue to invest in the
business.  A prime focus over the summer months will be to
continue to develop our multi-channel capability in readiness
for Christmas and to complete this year's store refurbishment
program."

Headquartered in London, U.K., Woolworths Group plc --
http://www.woolworthsgroupplc.com/-- is a major U.K. retailer
focused on the home, family and entertainment.  For the fiscal
year ended January 2006, the company reported net sales of
GBP2.6 billion.  The Group also operates the entertainment
businesses E.UK, 2 Entertain and Streets Online.  E.U.K. is
Britain's largest wholesale distributor of home entertainment
products while 2 Entertain is an audio-visual publishing group.
Streets Online, one of the UK's leading specialist online
entertainment retailers, was acquired in December 2000.

                        *     *     *

As reported in TCR-Europe on June 5, Moody's Investors Service
today downgraded the issuer rating of Woolworths Group plc to
Ba2 from Ba1.

This concludes the rating review initiated on March 15.  The
downgrade is prompted by Moody's view that the loss of the Tesco
contract at EUK -- Woolworths Group's entertainment, wholesale
and publishing division -- will result in a loss of momentum in
part of the business that had been a major supporter of the
group's previous Ba1 rating.

                           *********

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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel Laureno, Julybien Atadero, Carmel Paderog,
and Joy Agravante, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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


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