TCREUR_Public/060628.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

            Wednesday, June 28, 2006, Vol. 7, No. 127   

                            Headlines


A U S T R I A

ALMI: Vienna Court Will Close Case After Final Allocation
AMGE: Vienna Court to Close Bankruptcy Case After Distribution
HOTEL BISCHOFSBERG: Creditors' Meeting Slated for July 11
TOP ORDER: Creditors' Meeting Slated for July 10
VITA: Claims Registration Period Ends July 11

ZETTL-LICHTPAUSEN: Claims Filing Period Ends July 3


F R A N C E

ALSTOM SA: European Commission Okays 21% Equity Sale to Bouygues


G E R M A N Y

DRESDNER WIEDERAUFBAU: Claims Registration Ends July 18
EMO EINKAUFSGESELLSCHAFT: Claims Registration Ends July 19
LAY SANIERUNGS: Creditors' Meeting Slated for July 13
PROPLAN GESELLSCHAFT: Claims Registration Ends July 18
R S PRINT: Claims Registration Ends July 15

REMUS--BAUBETREUUNG: Claims Registration Ends July 17
SUITBERTUS HOTEL: Claims Registration Ends July 13
TOP UMZUEGE: Claims Registration Ends July 17
TSM GMBH: Claims Registration Ends July 14
WOHNANLAGE SCHWERIN: Claims Registration Ends July 12


K A Z A K H S T A N

ANG AND CO: Creditors Must File Claims by July 10
BANK TURANALEM: Inks Deal to Purchase 34% of Turkey's Sekerbank
DOSTYK: Kyzylorda Court Opens Bankruptcy Proceedings
ILI ZAGOTSERVIS: Creditors Must File Claims by July 10
INKOM: Kyzylorda Court Begins Bankruptcy Proceedings

KADEES: Proof of Claim Deadline Slated for July 10
KOMEX: Proof of Claim Deadline Slated for July 11
NEFTYANOI MUNAI: Claims Registration Ends July 11
RAICHER: Claims Registration Ends July 10
UNISEL MENEDJMENT: Creditors' Claims Due July 11

USHKATTINSKAYA NEFTEBAZA: Aktube Court Begins Bankruptcy Process


N O R W A Y

FALCONBRIDGE LTD: Inks US$56-Bln Merger with Inco & Phelps Dodge


P O R T U G A L

GENERAL MOTORS: Oct. 31 Closing of Portugal Plant Looms
MAGELLAN MORTGAGES: S&P Rates EUR21.75-Mln Class E Notes at BB


R U S S I A

BAGANSK-AGRO-PROM-AUTO-TRANS: Court Opens Bankruptcy Process
CENTERTELECOM: Withdraws From VladPage Participation
GAZPROM: Eyes Yukos' 20% Gazprom Neft Stake at a Discount
GAZPROM: Inks Prelim Purchase Deal for Novatek's 20% Equity
GAZPROM: Enters U.K. Retail Market with Pennine Natural Purchase

INTERNATIONAL MOSCOW: Fitch Affirms Individual Rating at C/C
KUMAREYSKIY WOOD-PROM-KHOZ: Court Begins Bankruptcy Supervision
LEBEDYANSKY: Moody's Assigns Ba3 Corporate Family Rating
LEVIKHINSKY RUDNIK: Wants Court to Extend Receivership
MINAL: Bankruptcy Hearing Slated for July 12

VIMPELCOM: Court Rejects Telenor's Effort to Invalidate Purchase
ROSNEFT: Aims to Raise US$12 Billion in Next Month's IPO
ROSNEFT: Buys 25.49% Equity Stake in VBRR for EUR332.7 Million
ROSNEFT: Eyes China Petroleum's 51% Equity Stake in Udmurtneft
SEVERSTAL: Fitch Keeps Negative Watch Ratings Over Arcelor Bid

SLADKOVSKOYE: Court Commences Bankruptcy Supervision
USOLYE-GLUE-FACTORY: Court Starts Bankruptcy Supervision
YUKOS OIL: Gazprom Eyes 20% Gazprom Neft Stake at a Discount
YUKOS OIL: Wants British Regulator to Block Rosneft IPO


T U R K E Y

DENIZBANK A.S.: Improved Franchise Spurs Fitch to Affirm Ratings
SEKERBANK TAS: Selling 34% Equity Stake to Bank TuranAlem
TURKIYE GARANTI: Fitch Upgrades Individual Rating to C


U K R A I N E

ABISAL: Rivne Court Appoints I. Dragun as Liquidator
BATKIVSHINA: Court Taps Sergij Samko to Liquidate Assets
DAVIDKIVSKE: Court Appoints Sergij Samko to Manage Assets
ELION: Court Appoints I. Dragun to Liquidate Insolvency Assets
GROZINORIBA: Court Names Sergij Samko as Insolvency Manager

HLIBOROB: Sergij Samko to Liquidate Insolvency Assets
KOROP-RAJAGROHIM: Court Names Volodimir Yanovskij as Liquidator
MANDULIS: Vasil Lyalyuk as Liquidator/Insolvency Manager
OBERIG: Court Appoints Oleksandr Yuditskij as Insolvency Manager
OSNASTKA-SERVICE: Court Names M. Ilkiv as Liquidator


U N I T E D   K I N G D O M

BALBY PLUMBING: Creditors' Meeting Slated on Friday
BROADFIELD DEVELOPMENTS: Taps Jonathan Lord to Liquidate Assets
CABLE & WIRELESS: Employee Share Trustees Sell 11,549 Shares
COLT TELECOM: High Court Sanctions Scheme of Arrangement
COMBINATION BOILER: Financial Woes Trigger Liquidation

COMPONENTS NORTH: Names Edwin James Kirkwood Liquidator
CONDOR COMBIFLOOR: Creditors' Meeting Slated for July 5
CYBERCALL LTD: Begins Liquidation Procedure
DELAPENA HONING: Creditors' Meeting Set for Friday
DINES PLASTICS: Brings In Administrators from Grant Thornton

DIXI AND ASSOCIATES: Hires Deloitte & Touche as Administrators
DJR SERVICES (2000): Creditors Resolve to Liquidation
DOULTON PRECISION: Appoints Stephen P.J. White as Liquidator
EUROTUNNEL GROUP: Wants Regulators to Examine Bondholders' Plan
F.P.H. LIMITED: Names Joint Administrators from Rubin & Partners

FOREMOST PROPERTY: Appoints Tenon Recovery as Administrators
GENERAL MOTORS: 35,000 Hourly Workers Accept Attrition Plan
GLOBAL TRADE: HSBC Bank Appoints Moore Stephens as Receivers
GOLDSHORE HOLDINGS: Winds Up Business & Appoints Liquidator
GOLDSHORE LTD: Hires Liquidator From Leonard Curtis

GRAPHITE MORTGAGES: Fitch Rates EUR27.85-Mln Class E Notes at BB
HEALTH TEC: Creditors' Meeting Slated for July 3
INCO LTD: Inks US$56-Bln Merger with Falconbridge & Phelps Dodge
KOSCO COMMUNICATIONS: Brings In Liquidator from Bridgestones
LASTING IMPRESSIONS: Creditors' Meeting Slated on Friday

* Fitch Sees New European Gas Crisis from Converging Forces

                            *********

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


ALMI: Vienna Court Will Close Case After Final Allocation
---------------------------------------------------------
The Trade Court of Vienna will close the bankruptcy case of
Trade LLC Almi (FN 149792h) after the Debtor's final
distribution to creditors.

Headquartered in Wien, Austria, the Debtor's bankruptcy case
(Bankr. Case No. 4 S 44/06g) was removed from (Bankr. Case No.
36 S 35/05t) by the Trade Court of Vienna on March 6.


AMGE: Vienna Court to Close Bankruptcy Case After Distribution
--------------------------------------------------------------
The Trade Court of Vienna will close the bankruptcy case of
Construction LLC Amge (FN 233442y) after the Debtor's final
distribution to creditors.

Headquartered in Vienna, Austria, the Debtor's bankruptcy case
(Bankr. Case No. 3 S 37/06w) was removed from (Bankr. Case No.
36 S 13/05g) by the Trade Court of Vienna on March 7.


HOTEL BISCHOFSBERG: Creditors' Meeting Slated for July 11
---------------------------------------------------------
Creditors owed money by LLC Hotel Bischofsberg (FN 250524v) are
encouraged to attend the first creditors' meeting at 2:45 p.m.
on July 11 to consider the revision of the rule by adoption and
accountability.

The first meeting of creditors will be held at:

         The Land Court of Steyr
         Hall 5
         2nd Floor
         Steyr, Austria

Headquartered in Windisclgarsten, Austria, the Debtor declared
bankruptcy on May 8 (Bankr. Case No. 14 S 25/06h).   Markus
Weixlbaumer serves as the court-appointed property manager for
the bankrupt estate.  Erhard Hackl represents Mr. Weixlbaumer in
the bankruptcy proceedings.


TOP ORDER: Creditors' Meeting Slated for July 10
------------------------------------------------
Creditors owed money by Trade LLC Top Order (FN 163466t) are
encouraged to attend the creditors' meeting at 10:00 a.m. on
July 10 to consider the revision of the rule by adoption and
accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1607
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 15 (Bankr. Case No. 28 S 33/06s).  Guenther Hodl serves
as the court-appointed property manager for the bankrupt estate.  


VITA: Claims Registration Period Ends July 11
---------------------------------------------
Creditors owed money by LLC Vita (FN 255951z) have until July 11
to submit written proofs of claim to court-appointed property
manager Josef Ebner at:

         Dr. Josef Ebner
         Mahlerstrasse 7
         1010 Vienna
         Austria
         Tel:  512 29 94
         Fax: 512 29 04
         E-mail: rae.ebner.eisner@aon.at  

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

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 2102
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 16 (Bankr. Case No. 45 S 29/06b).  Andrea Eisner
represents Dr. Ebner in the bankruptcy proceedings.


ZETTL-LICHTPAUSEN: Claims Filing Period Ends July 3
---------------------------------------------------
Creditors owed money by LLC Zettl-Lichtpausen Plandrucke (FN
48604b) have until July 3 to submit written proofs of claim to
court-appointed property manager Georg Muhri at:

         Dr. Georg Muhri
         Neutorgasse 47/I
         8010 Graz
         Austria
         Tel:  0316/820620
         Fax: 0316/820620-4
         E-mail: office@cgo-masseverwaltung.at  

Creditors and other interested parties are encouraged to attend
the meeting at 2:05 p.m. on July 20 to consider the revision of
the rule by adoption and accountability.

The meeting of creditors will be held at:

         The Land Court of Graz
         Room 230
         Hall L
         2nd Floor
         Graz, Austria

Headquartered in Graz, Austria, the Debtor declared bankruptcy
on May 16 (Bankr. Case No. 25 S 41/06a).  Walter Poschinger,
Anita Taucher and Andreas Berchtold represent the Debtor in the
bankruptcy proceedings.


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


ALSTOM SA: European Commission Okays 21% Equity Sale to Bouygues
----------------------------------------------------------------
The European Commission has authorized Bouygues' acquisition of
the French state's 21.01% stake in Alstom (29,051,244 shares).

The terms of the transaction announced on April 27 remain
unchanged.  The shares were transferred and payment was made on
June 26.

With the shares acquired on the market, Bouygues now owns 23.26%
of ALSTOM's capital and voting rights.

In accordance with stock market regulations, Bouygues has stated
its intentions for the next twelve months, indicating in
particular that it may increase its interest in Alstom but has
no intention of taking control.

For Alstom, this operation will reinforce the stability of the
Group's shareholding.

                           About Alstom

Headquartered in Paris, France, Alstom S.A. --
http://www.alstom.com/-- is a leading maker of power-generation  
systems and constructs power plants, rail equipment, luxury
passenger ships, naval vessels, and natural gas tankers.  It
also produces electrical drives, motors, and generators.  The
group generates EUR13 billion in annual revenues and employs
more than 70,000 people worldwide.  The group posted EUR865
million in net loss and EUR1.4 billion in net debt for the
financial year 2004/2005.


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


DRESDNER WIEDERAUFBAU: Claims Registration Ends July 18
-------------------------------------------------------
Creditors of Dresdner Wiederaufbau Zug (Deutschland) GmbH have
until July 18 to register their claims with court-appointed
provisional administrator Bruno M. Kuebler.

Creditors and other interested parties are encouraged to attend
the meeting at 2:15 p.m. on Aug. 29, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Hall 24
         Law Courts
         Prince Road 21
         Chemnitz, Germany

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

The District Court of Chemnitz opened bankruptcy proceedings
against Dresdner Wiederaufbau Zug (Deutschland) GmbH on June 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Dresdner Wiederaufbau Zug (Deutschland) GmbH
         Attn: Andres Grobitzsch, Manager       
         Schulstrasse 38
         09125 Chemnitz, Germany

The administrator can be contacted at:

         Dr. Bruno M. Kuebler
         Kassbergstrasse 24
         09112 Chemnitz, Germany
         Web: http://www.kuebler-gbr.de/


EMO EINKAUFSGESELLSCHAFT: Claims Registration Ends July 19
----------------------------------------------------------
Creditors of EMO Einkaufsgesellschaft des Motorradhandels mbH
have until July 19 to register their claims with court-appointed
provisional administrator Sebastian Henneke.

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 Duisburg
         Meeting Room C315
         3rd Floor
         Cardinal Galen Road 124-132
         47058 Duisburg, Germany         

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

The District Court of Duisburg opened bankruptcy proceedings
against EMO Einkaufsgesellschaft des Motorradhandels mbH on
May 30.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         EMO Einkaufsgesellschaft des Motorradhandels mbH
         Sachsenstr. 36
         46499 Hamminkeln, Germany

         Attn: Burkhard Waldherr, Manager
         6 Rue Bonnes Gens
         67400 Illkirch/Frankreich, Germany

         Thorsten Schulze, Manager
         Priessendyk 14
         47647 Kerken, Germany

The administrator can be contacted at:

         Dr. Sebastian Henneke
         Muelheimer Str. 100
         47057 Duisburg, Germany
         

LAY SANIERUNGS: Creditors' Meeting Slated for July 13
-----------------------------------------------------
The court-appointed provisional administrator for Lay
Sanierungs-Systeme GmbH, Manfred Kuersch, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 10:00 a.m. on July 13.

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

         The District Court of Neuwied
         Hall 204
         2 Stick
         Hermannstr. 39
         56564 Neuwied, Germany

The Court will also verify the claims set out in the
administrator's report at 10:00 a.m. on Aug. 22 at:

         The District Court of Neuwied
         Hall 126
         1 Stick
         Hermannstr. 39
         56564 Neuwied, Germany

Creditors have until July 21 to register their claims with the
court-appointed provisional administrator.

The District Court of Neuwied opened bankruptcy proceedings
against Lay Sanierungs-Systeme GmbH on May 19.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Lay Sanierungs-Systeme GmbH
         Attn: Helmut Lay, Manager
         Waldstrasse 15
         56581 Kurtscheid, Germany

The administrator can be reached at:

         Manfred Kuersch
         Kirchstrasse 19
         53518 Adenau, Germany
         Tel: 02691/93283
         Fax: 02691/932840


PROPLAN GESELLSCHAFT: Claims Registration Ends July 18
------------------------------------------------------
Creditors of proPLAN Gesellschaft fuer Gebaudeentwicklung und
Einrichtungsmanagement mbH have until July 18 to register their
claims with court-appointed provisional administrator Juergen
Buehs.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 25, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bonn
         Hall W126
         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
proPLAN Gesellschaft fuer Gebaudeentwicklung und
Einrichtungsmanagement mbH on June 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         proPLAN Gesellschaft fuer Gebaudeentwicklung und
         Einrichtungsmanagement mbH
         Joachimstr. 6a
         53113 Bonn, Germany

         Attn: Heinz- Sommer, Manager
         Kaiserstr. 5
         53332 Bornheim, Germany

The administrator can be contacted at:

         Juergen Buehs
         Oxfordstrasse 2
         53111 Bonn, Germany
         Tel: 0228/98 52 10
         Fax: 0228/98 52 122


R S PRINT: Claims Registration Ends July 15
-------------------------------------------
Creditors of R S Print- & Kunststofftechnik AG have until
July 15 to register their claims with court-appointed
provisional administrator Wolfgang Maus.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on July 27, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bad Kreuznach
         Hall 309
         Ringstrasse 79
         55543 Bad Kreuznach, Germany

The Court will also verify the claims set out in the
administrator's report at 10:15 a.m. on Aug. 17 at the same
venue.

The District Court of Bad Kreuznach opened bankruptcy
proceedings against R S Print- & Kunststofftechnik AG on May 17.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         R S Print- & Kunststofftechnik AG
         Attn: Heinz-Juergen Rickes, Manager
         Bosenheimer Str. 218
         55543 Bad Kreuznach, Germany

The administrator can be contacted at:

         Dr. Wolfgang Maus
         Mannheimer Str. 254 a
         D-55543 Bad Kreuznach, Germany
         Tel: 0671/79496-13
         Fax: 0671/79496-10


REMUS--BAUBETREUUNG: Claims Registration Ends July 17
-----------------------------------------------------
Creditors of "REMUS" -- Baubetreuung Nord GmbH have until
July 17 to register their claims with court-appointed
provisional administrator Hendrik Rogge.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Aug. 7, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The District Court of Hamburg opened bankruptcy proceedings
against "REMUS" -- Baubetreuung Nord GmbH on May 22.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         "REMUS" -- Baubetreuung Nord GmbH
         Attn: Joachim Waschull, Manager       
         Bockmannstr. 11
         20099 Hamburg, Germany

The administrator can be contacted at:

         Hendrik Rogge
         Albert-Einstein-Ring 15
         22761 Hamburg, Germany
         Tel: 897186-0
         Fax: 897186-11


SUITBERTUS HOTEL: Claims Registration Ends July 13
--------------------------------------------------
Creditors of SUITBERTUS Hotel Verwaltungsgesellschaft mbH have
until July 13 to register their claims with court-appointed
provisional administrator Georg Kreplin.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 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 Duesseldorf
         Area A 409
         4th Floor
         Muehlenstrasse 34
         40213 Duesseldorf, 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 Duesseldorf opened bankruptcy proceedings
against SUITBERTUS Hotel Verwaltungsgesellschaft mbH on May 30.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         SUITBERTUS Hotel Verwaltungsgesellschaft mbH
         Suitbertusstrasse 22
         40223 Duesseldorf, Germany

         Attn: Wilhelm Frank Meurer, Manager
         Pasteurstrasse 9
         45470 Muelheim, Germany

The administrator can be contacted at:

         Georg Kreplin
         Breite Road 27
         40213 Duesseldorf, Germany


TOP UMZUEGE: Claims Registration Ends July 17
---------------------------------------------
Creditors of Top Umzuege Essen GmbH have until July 17 to
register their claims with court-appointed provisional
administrator Georg F. Kreplin.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 7, 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 Essen
         Hall 293
         2nd Floor
         Zweigertstr. 52
         45130 Essen, 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 Essen opened bankruptcy proceedings
against Top Umzuege Essen GmbH on June 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Top Umzuege Essen GmbH
         Attn: Alfred Rogmann, Manager       
         Kuhlmannsfeld 11
         45355 Essen, Germany

The administrator can be contacted at:

         Georg F. Kreplin
         Limbecker Place 1
         45127 Essen, Germany
         Tel: 0201 220 05 02
         Fax: 0201 220 05 40


TSM GMBH: Claims Registration Ends July 14
------------------------------------------
Creditors of TSM GmbH have until July 14 to register their
claims with court-appointed provisional administrator Caroline
Schmitz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Aug. 15, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Aachen
         Meeting Room K 3
         3rd Floor
         Old Post Office Yard 1
         52062 Aachen, Germany

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

The District Court of Aachen opened bankruptcy proceedings
against TSM GmbH on May 31.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         TSM GmbH
         Seestr. 100
         52353 Dueren, Germany

         Attn: Jean Dubus, Manager       
         Martinstr. 14
         52379 Langerwehe, Germany

         Willibert Schmitz, Manager
         Buirerstr. 90
         52399 Merzenich, Germany

The administrator can be contacted at:

         Caroline Schmitz
         Waisenhausstr. 3
         52349 Dueren, Germany


WOHNANLAGE SCHWERIN: Claims Registration Ends July 12
-----------------------------------------------------
Creditors of Wohnanlage Schwerin Dr. Neuling GmbH & Co. KG have
until July 12 to register their claims with court-appointed
provisional administrator Alfred Ponzer.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on July 13, 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 Wolfratshausen
         Meeting Room 3/I
         Station Route 18
         Wolfratshausen, Germany
         
The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Aug. 17 at the same
venue.

The District Court of Wolfratshausen opened bankruptcy
proceedings against Wohnanlage Schwerin Dr. Neuling GmbH & Co.
KG on May 22.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Wohnanlage Schwerin Dr. Neuling GmbH & Co. KG
         Hochfeldstr. 35
         83684 Tegernsee, Germany

The administrator can be contacted at:

         Alfred Ponzer
         Market Place 18
         83607 Holzkirchen, Germany
         Tel: 08024/30580
         Fax: 08024/305820


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


ANG AND CO: Creditors Must File Claims by July 10
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Ang and Co insolvent on April 17.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until July 10 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of Almaty Region         
         Zelenaya Str. 40
         Baiserke
         Ilisky District
         Almaty Region
         Kazakhstan
         Tel: 8 (3333) 15-19-66


BANK TURANALEM: Inks Deal to Purchase 34% of Turkey's Sekerbank
---------------------------------------------------------------
JSC TuranAlem Securities, a subsidiary of Bank TuranAlem, signed
an agreement on June 21 to purchase 33.98% of Sekerbank T.A.S.'s
shares for US$256 million.

The Company expects to complete the transaction by Oct. 31.  
Sekerbank revealed that Bank TuranAlem would file an exemption
at Turkey's Capital Markets Board to acquire the remaining
shares after completing the deal.

At Dec. 31, 2005, Sekerbank's assets totaled US$2.3 billion,
with a US$261 million share capital.  The bank holds 17th place
by assets among 47 banks of Turkey.

"This deal provides us with a ready instrument for attraction of
private deposits from citizens of Turkey, expansion of our brand
and services to the residents of Turkey and CIS.  It is a small
deal but it will give BTA an entry pass to Turkish market.  
Sekerbank is known to be universal bank with strong retail
positions, and Bank TuranAlem is also a universal bank, but with
strong positions in servicing large corporate clients and in
this way we complement each other," Yerkin Tatishev, Bank
TuranAlem's First Deputy Chairman, said.

The acquisition of Turkish bank will expand the geography of
Bank TuranAlem foreign presence up to nine countries, including
Russia and China.

Bank TuranAlem's network of strategic partners include Russia's
Slavinvestbank, Omsk-bank, Agroinkombank, bank BTA Kazan,
Belarus' Astana-Eximbank, Georgia's Silk Road Bank, Armenia's
BTA Investbank.  For 2008, TuranAlem plans to become one of the
largest banks of CIS.  Foreign representative offices of BTA
include Russia, Belarus, Kirgizstan, Ukraine, Armenia,
Tajikistan, Georgia and China.

                         About Sekerbank

Headquarted in Ankara, Turkey, Sekerbank T.A.S. --
http://www.sekerbank.com.tr/-- has operation within the sugar,  
trade, finance, tourism and mining sectors.  The bank has 203
branches throughout Turkey and it ranked 17th by assets among
the 47 banks.  As of Dec. 31, 2005, Sekerbank had US$2.3 billion
in total assets and US$261 million in total.

As reported in the TCR-Europe on Feb 28, Fitch Ratings removed
Rating Watch Positive on Sekerbank T.A.S.'s Long-term foreign
currency and local currency Issuer Default Ratings of B- and
National Long-term of BBB.  These ratings have simultaneously
been affirmed.  The Turkish bank's other ratings are affirmed at
Individual D/E, Short-term B and Support 5.

                      About Bank TuranAlem

Headquartered in Almaty, Kazakhstan, Bank TuranAlem --
http://bta.kz/en/-- is the second largest commercial bank in  
Kazakhstan by IFRS assets by 2005.  The group is present in all
segments of the market: corporate and retail banking, trade
financing, fund market, credits, SME development, leasing,
mortgage lending and pension funds.  The bank's common stock is
owned primarily by a number of Kazakh investors, but Raiffeisen
Zentralbank, the European Bank for Reconstruction and
Development, the International Finance Corporation and
Nederlandse Financierings - Maatschappij Voor
Ontwikkelingslanden own convertible preferred shares.

As of Dec. 31, 2005, Bank TuranAlem had over US$9.2 billion in
total assets and over US$1.6 billion in total equity.

As reported in the TCR-Europe on May 23, Moody's Moody's has
changed to stable from positive the outlook on the Ba1 long-term
foreign currency deposit ratings of Bank TuranAlem following a
sovereign rating action that placed Kazakhstan's Baa3 foreign
currency bond rating on review for possible upgrade while at the
same time changing the outlook on the country's foreign currency
bank deposit ceiling to stable from positive.

As reported by the TCR-Europe on Feb. 14, Standard & Poor's
Ratings Services raised its long-term counterparty credit and
certificate of deposit ratings of Bank TuranAlem to BB from BB-
due to a greater weighting of potential government support in
the banks' creditworthiness.  At the same time, Standard &
Poor's affirmed the bank's 'B' short-term.  The outlook on the
long-term ratings is stable.

As reported in the TCR-Europe on Feb 01, Fitch Ratings has
assigned BTA Finance Luxembourg S.A.'s US$400 million issue of
8.25% perpetual preferred securities a final Long-term 'B+'
rating.  The notes have been issued solely for financing a
subordinated loan from the issuer to TuranAlem Finance B.V.,
Netherlands, which will in turn make a further subordinated loan
to Kazakhstan's Bank TuranAlem (BTA).

BTA is rated:

   -- Long-term foreign currency 'BB+'/Outlook Stable,
   -- Short-term foreign currency 'B',
   -- Long-term local currency 'BBB-'/Outlook Stable,
   -- Short-term local currency 'F3',
   -- Individual 'C/D', Support '3'


DOSTYK: Kyzylorda Court Opens Bankruptcy Proceedings
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Dostyk on
May 5.

Proofs of claim are accepted at:

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


ILI ZAGOTSERVIS: Creditors Must File Claims by July 10
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Iliskaya Trade-Purchase Company Ili Zagotservis
insolvent on April 17.  Bankruptcy proceedings were introduced
at the company.

Creditors have until July 10 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of Almaty Region
         Zelenaya Str. 40
         Baiserke
         Ilisky District
         Almaty Region
         Kazakhstan
         Tel: 8 (3333) 15-19-66



INKOM: Kyzylorda Court Begins Bankruptcy Proceedings
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Inkom on
May 4.

Proofs of claim are accepted at:

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


KADEES: Proof of Claim Deadline Slated for July 10
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Specialized Enterprise Kazakh-German Energy Service Kadees
insolvent on April 17.

Creditors have until July 10 to submit written proofs of claim
at:

         LLP Specialized Enterprise
         Kazakh-German Energy Service Kadees
         Makatayeva Str. 117
         Almaty, Kazakhstan
         Tel: 3004689131


KOMEX: Proof of Claim Deadline Slated for July 11
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
insolvent LLP Joint Kazakh-British Enterprise Komex on April 17.

Creditors have until July 11 to submit written proofs of claim
to the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         A. Nurmahmanova Str. 31
         Micro District Taugul-3
         Almaty, Kazakhstan
         Tel: 8 (3272) 56-97-68


NEFTYANOI MUNAI: Claims Registration Ends July 11
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Neftyanoi Munai insolvent on April 18.

Creditors have until July 11 to submit written proofs of claim
to the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         A. Nurmahmanova Str. 31
         Micro District Taugul-3
         Almaty, Kazakhstan
         Tel: 8 (3272) 56-97-68


RAICHER: Claims Registration Ends July 10
-----------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Raicher insolvent on April 19 without introduction
of the bankruptcy proceedings.

Creditors have until July 10 to submit written proofs of claim
at:

         The Specialized Inter-Regional
         Economic Court of Kostanai Region
         Gogol Str. 117a
         Kostanai, Kazakhstan


UNISEL MENEDJMENT: Creditors' Claims Due July 11
------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Unisel Menedjment insolvent on April 17.

Creditors have until July 11 to submit written proofs of claim
to the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         A. Nurmahmanova Str. 31
         Micro District Taugul-3
         Almaty, Kazakhstan
         Tel: 8 (3272) 56-97-68


USHKATTINSKAYA NEFTEBAZA: Aktube Court Begins Bankruptcy Process
----------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube Region
commenced bankruptcy proceedings against JSC Ushkattinskaya
Petroleum Storage Depot Ushkattinskaya Neftebaza on April 28.


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


FALCONBRIDGE LTD: Inks US$56-Bln Merger with Inco & Phelps Dodge
----------------------------------------------------------------
Phelps Dodge Corp., Inco Limited and Falconbridge Limited agreed
to combine in a US$56 billion transaction to create a North
American-based mining company that is one of the world's
largest.  The new company will be named Phelps Dodge Inco Corp.

Phelps Dodge Inco will be the world's leading nickel producer,
the world's largest publicly traded copper producer and a
leading producer of molybdenum and cobalt, and it will have a
world-class portfolio of growth projects and exciting
exploration opportunities.  For the quarter ended March 31,
2006, the three companies had combined revenues of US$6.3
billion and EBITDA of US$1.9 billion.

The corporate office and the new company's copper division will
be headquartered in Phoenix.  Inco Nickel, the new company's
nickel division, will be headquartered in Toronto.

The Phelps Dodge board of directors also reported, as part of
the transaction, a share repurchase program of up to US$5
billion to be commenced after closing.

Phelps Dodge Inco will have operations in more than 40 countries
and will employ approximately 40,000 people globally.  Phelps
Dodge Inco will be listed on the New York Stock Exchange and
will apply for a listing on the Toronto Stock Exchange.  As a
result of the three-way combination, Phelps Dodge Inco will have
a significantly increased weighting in the S&P 500 Index.

"This transaction represents a unique opportunity in a rapidly
consolidating industry to create a global leader based in North
America-home of the world's deepest and most liquid capital
markets," J. Steven Whisler, chairman and chief executive
officer of Phelps Dodge Corporation, said.  "The combined
company has one of the industry's most exciting portfolios of
development projects, and the scale and management expertise to
pursue their development successfully.  The creation of this new
company gives us the scale and diversification to manage
cyclicality, stabilize earnings and increase shareholder
returns.  At the same time, we are committed to maintaining an
investment-grade credit rating throughout the business cycle."

"This combination allows Inco's shareholders, in addition to
receiving a substantial premium for their stock, to share in the
significant synergies both from our agreed merger with
Falconbridge and from the combination with Phelps Dodge, and it
creates an opportunity for all three groups of shareholders to
participate in an exciting, new, diversified industry leader,"
Scott M. Hand, chairman and chief executive officer of Inco,
said.  "We believe the Phelps Dodge transaction delivers an
excellent value proposition for our shareholders.  The new
Phelps Dodge Inco also will maintain a very strong commitment to
and presence in Canada."

"This is an industry-redefining transaction," Derek Pannell,
chief executive officer of Falconbridge, said.  "Phelps Dodge
Inco will have the scale, diversification, market leadership,
reserve position, growth profile and balance sheet necessary to
create tremendous value for shareholders.  It represents a
significant premium to Falconbridge shareholders, with ongoing
participation in the upside of the three-way combination.  We
believe this transaction represents a most compelling
opportunity for all Falconbridge shareholders."

                    Terms of the Transaction

Under the terms of the transaction, Phelps Dodge will acquire
all of the outstanding common shares of Inco for a combination
of cash and common shares of Phelps Dodge having a value of
CDN$80.13 per Inco share, based upon the closing price of Phelps
Dodge stock and the closing US/Canadian dollar exchange rate on
Friday, June 23.  Each shareholder of Inco would receive 0.672
shares of Phelps Dodge stock plus CDN$17.50 per share in cash
for each share of Inco stock.  This represents a premium of 23%
to Inco's market price as of close of trading on June 23 and a
19% premium to the value of the existing Teck Cominco Limited
unsolicited offer for Inco.

Simultaneous with its entry into the combination agreement with
Phelps Dodge, Inco has entered into an agreement with
Falconbridge to increase its previously recommended offer for
Falconbridge.  Under the terms of this enhanced offer, Inco has
increased the cash component of the offer from CDN$12.50 to
CDN$17.50 and the exchange ratio from 0.524 shares of Inco for
each share of Falconbridge to 0.55676 shares of Inco for each
share of Falconbridge.  The board of Falconbridge has
unanimously agreed to recommend this revised offer and also
approved an amendment of the Support Agreement with Inco to
reflect the revised price.

Based upon the value of the consideration offered by Phelps
Dodge for Inco of CDN$80.13 per share, the implied value of the
revised agreed offer for Falconbridge including the increased
cash component is CDN$62.11 per share, representing a 12%
premium to Falconbridge's closing price on June 23, and an 18%
premium to the existing Xstrata plc unsolicited offer for
Falconbridge.

At Phelps Dodge's June 23 closing price of US$82.95, the total
enterprise value of the acquisition by Phelps Dodge of the
combined Inco and Falconbridge is approximately US$40 billion.

The acquisition of Falconbridge by Inco is subject to regulatory
approvals and other customary closing conditions, and Inco's
tender offer is expected to close in July.  Inco anticipates
conducting a second-stage transaction to acquire the remaining
Falconbridge shares, which is expected to close in August.  Upon
the closing of the Phelps Dodge-Inco combination, shareholders
of Falconbridge who have been issued Inco common shares in the
Inco-Falconbridge transaction will be entitled to receive for
those shares the same package of cash and Phelps Dodge shares as
will other Inco shareholders.

Phelps Dodge strongly supports Inco's agreed offer for
Falconbridge and has entered into a definitive agreement under
which it will purchase up to US$3 billion of convertible
subordinated notes issued by Inco to provide Inco with
substantial additional liquidity at the time of its purchase of
Falconbridge common shares and to satisfy related dissent
rights, as needed.  The convertible subordinated notes will only
be funded in the event the Inco/Falconbridge combination is
consummated.  The instrument will be redeemable for cash at any
time by Inco after the merger with Falconbridge and may be
converted at any time beginning six months after issuance by
Phelps Dodge at a conversion rate equal to 95% of the market
value of Inco's common shares plus accrued interest of the
security at the time of conversion.  The instrument will bear an
8% PIK coupon.  The issuance of the convertible subordinated
notes will be subject to regulatory approval.

Phelps Dodge intends to complete its share repurchase program
within the 12 months after closing of the Inco transaction in an
amount equal to US$5 billion, less the amount of any convertible
subordinated notes purchased by Phelps Dodge.

The transaction between Phelps Dodge and Inco is not conditioned
upon the completion of the Inco and Falconbridge combination.  
Thus, in the event the Inco-Falconbridge merger is not
completed, Inco shareholders will receive the same 0.672 shares
of Phelps Dodge and CDN$17.50 per share in cash that they would
have received in the proposed three-way combination.  Should
Inco not complete the Falconbridge transaction, the Phelps Dodge
board of directors intends to execute the full US$5 billion
share repurchase program within 12 months of closing a
transaction with Inco.

Inco has agreed to pay a break-up fee to Phelps Dodge under
certain circumstances of US$475 million on a stand-alone basis
and US$925 million in conjunction with its combination with
Falconbridge.  Inco has also given Phelps Dodge certain other
customary rights, including a right to match competing offers.  
Phelps Dodge has agreed to pay Inco a US$500 million break-up
fee under certain circumstances.

Phelps Dodge has received financing commitments from Citigroup
and HSBC that may be drawn upon to fund the contemplated
transactions and the up to US$5 billion share repurchase
program.

Inco has received additional financing commitments from Morgan
Stanley, Goldman, Sachs & Co., Royal Bank of Canada, and Bank of
Nova Scotia in support of the increased cash component of its
revised agreed offer for Falconbridge.

After completion of the transaction, current Phelps Dodge
shareholders would own approximately 40% of Phelps Dodge Inco,
current Inco shareholders would own approximately 31%, and
current Falconbridge holders would own approximately 29%.  The
transaction, which is subject to Phelps Dodge and Inco
shareholder approval, regulatory approvals and customary closing
conditions, is expected to close in September 2006.

                       Expected Synergies

The combination of Phelps Dodge, Inco and Falconbridge is
expected to result in total annual synergies of approximately
US$900 million by 2008.  This includes US$550 million in total
expected annual synergies from the combination of Inco and
Falconbridge.

The net present value of total synergies, at a 7% discount rate,
is approximately US$5.8 billion after-tax.

The combination brings together three companies with unique,
complementary skill sets.  The synergies previously identified
by Inco and Falconbridge will be generated in part by joint
operation of facilities in the Sudbury Basin, where there are
contiguous, interwoven mines and processing facilities.  
Consolidation of the district allows feed flow changes that
result in production increases and cost reductions.  Also,
consolidation of management allows for the sharing of best
practices.

The inclusion of Phelps Dodge enhances these synergies.  Its
three-year-old North American One Mine processes are an
excellent blueprint for the consolidation of the Sudbury
district.  In addition, Phelps Dodge brings a focus on
technology that can be applied to improve process recoveries and
throughput in Sudbury and elsewhere.  Also, the larger company
will realize savings in procurement and supply-chain management
because of its much larger size.

Based on these synergies, the combination is expected to be
immediately accretive to cash flow and accretive to earnings per
share in 2008, excluding integration and transaction costs.

The new, larger company will benefit from a strengthened
financial position to take advantage of future growth
opportunities.  This increased financial strength, coupled with
its combined assets and expertise, will enable it to pursue
current and future development projects more effectively.

             Management Team and Board of Directors

J. Steven Whisler, chairman and chief executive officer of
Phelps Dodge, will be chairman and chief executive officer of
the new company.  Scott M. Hand, chairman and chief executive
officer of Inco, will become vice chairman of Phelps Dodge Inco.  
Derek Pannell, chief executive officer of Falconbridge, will
become president: Inco Nickel and will head the new company's
nickel, zinc and aluminum operations.  Timothy R. Snider,
president and chief operating officer of Phelps Dodge, will hold
the same position in the new company.  Ramiro G. Peru, executive
vice president and chief financial officer of Phelps Dodge, will
be the chief financial officer of the new company.  Mr. Whisler,
Mr. Snider and Mr. Peru will be based in Phoenix.  Mr. Hand and
Mr. Pannell will be based in Toronto.

The board of directors of the new company will be composed of 15
members, 11 from the board of Phelps Dodge and four from the
boards of Inco and Falconbridge.

                       Advisors and Counsel

Phelps Dodge is being advised by Citigroup Corporate and
Investment Banking and by HSBC Securities.  Phelps Dodge's
counsel are Debevoise & Plimpton LLP and Heenan Blaikie LLP.  
Inco is being advised by Morgan Stanley, RBC Capital Markets and
Goldman Sachs.  Inco's counsel are Sullivan & Cromwell and Osler
Hoskin & Hartcourt LLP.  Falconbridge is being advised by CIBC
World Markets.  Falconbridge's counsel are McCarthy Tetrault LLP
and Fried Frank Harris Shriver & Jacobson LLP.

                        About Phelps Dodge

Phelps Dodge Corp. -- http://www.phelpsdodge.com/-- produces  
copper and molybdenum and is the largest producer of molybdenum-
based chemicals and continuous-cast copper rod.  The company and
its two divisions, Phelps Dodge Mining Co. and Phelps Dodge
Industries, employ approximately 15,000 people worldwide.

                           About Inco

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) --
http://www.inco.com/-- is the world's #2 producer of nickel,  
which is used primarily for manufacturing stainless steel and
batteries.  Inco also mines and processes copper, gold, cobalt,
and platinum group metals.  It makes nickel battery materials
and nickel foams, flakes, and powders for use in catalysts,
electronics, and paints.  Sulphuric acid and liquid sulphur
dioxide are produced as byproducts.  The company's primary
mining and processing operations are in Canada, Indonesia, and
the U.K.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a   
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

                        *    *    *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carries Standard & Poor's BB+ rating.


===============
P O R T U G A L
===============


GENERAL MOTORS: Oct. 31 Closing of Portugal Plant Looms
-------------------------------------------------------
General Motors may close its manufacturing plant in Portugal on
Oct. 31 if negotiations with the government fail, Bloomberg News
cited plant spokesman Nelson Silveira.

"General Motors sent a letter to workers saying it accepted the
request of Portugal's prime minister to delay the factory's
close until negotiations with the government proceed," Mr.
Silveira told Bloomberg.

GM revealed plans to close the Azambuja-based plant, which
employs 1,100 people, as production costs per vehicle are EUR500
higher than at other sites, Bloomberg relates.

                     About General Motors

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

                        *     *     *

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

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


MAGELLAN MORTGAGES: S&P Rates EUR21.75-Mln Class E Notes at BB
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR1.522 billion mortgage-backed floating-
rate notes to be issued by Magellan Mortgages No. 4 PLC, an SPE.
  
This is the fourth RMBS transaction to be issued by Banco
Comercial Portugues S.A. and the fourth to be rated by Standard
& Poor's.
  
Magellan 4 has the same structural characteristics as Magellan
Mortgages No 3 PLC, which was by the same originator and closed
in June 2005.  These similarities include an interest-rate cap,
pro rata amortization of the notes under certain circumstances,
and the ability to use principal to pay interest on the notes.
  
A new feature of this transaction is that under the interest cap
agreement, any payment received is included in the interest
priority of payments on the relevant interest payment date and
is trapped in a dedicated reserve in accordance with the
interest priority of payments only after the replenishment of
the cash reserve.
  
As in other Portuguese transactions, this structure includes a
provisioning mechanism whereby principal amortization is
accelerated via early trapping of excess spread depending on the
number of monthly installments in arrears of the loans in the
collateral.
  
                          Ratings List
                Magellan Mortgages No. 4 PLC
      EUR1.522 Billion Mortgage-Backed Floating-Rate Notes

                          Prelim.        Prelim.
           Class          rating         amount (Mil. EUR)
           -----          ------         --------   
             A             AAA           1,413.75
             B             AA               33.75
             C             A                18.75
             D             BBB              33.75
             E (1)         BB               21.75
             F (1)         NR                0.25

        (1) The class E and F notes are not mortgage-backed.  
            The class E notes will be used to finance the
            reserve fund, to pay a portion of the upfront
            expenses of the issuer and part of the purchase
            price of the units.  The class F notes will be used
            to pay the upfront expenses that have not been paid
            with the proceeds of the class E notes.
  

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


BAGANSK-AGRO-PROM-AUTO-TRANS: Court Opens Bankruptcy Process
------------------------------------------------------------
The Arbitration Court of Novosibirsk Region has commenced
bankruptcy supervision procedure on OJSC Bagansk-Agro-Prom-Auto-
Trans.

The case is docketed under Case no. A45-3121/05-4/342.

The Temporary Insolvency Manager is:

         Mr. O. Kondrusov
         Post User Box 25
         630078 Novosibirsk Region
         Russia

The Debtor can be reached at:

         OJSC Bagansk-Agro-Prom-Auto-Trans
         Oktyabrskaya Str. 42
         Bagan
         632770 Novosibirsk Region
         Russia


CENTERTELECOM: Withdraws From VladPage Participation
----------------------------------------------------
OAO CenterTelecom has terminated its participation in its
subsidiary OOO VladPage, following VladPage's liquidation.  The
equity position of CenterTelecom in the VladPage charter capital
totaled 75%.  The company was engaged in the paging business.

The decision to close down the entity was adopted by
CenterTelecom's board of directors at a May 11, 2004 meeting.  
Among the main reasons behind the decision was a dip in demand
for paging services, stronger performance of mobile operators in
the region (MTS, VladTelecom, Megafon, Vympelcom), as well as a
poor financial standing of OOO VladPage.

The Arbitration Court in Vladimir Region commenced bankruptcy
procedure against VladPage on June 7, 2005.  To date, the
liquidation procedure on the Company has been completed.  On
June 19, 2006, the information on the removal of the company was
entered into the uniform state register of legal entities.

OJSC CenterTelecom -- http://www.centertelecom.ru/eng--  
provides fixed-line and mobile communications in the Russian
Central Federal District.

                        *     *     *

As reported in TCR-Europe on Feb. 9, Fitch Ratings assigned
Issuer Default ratings to companies in the European
Telecommunications, Media and Technology sectors.  Revised
Senior Unsecured ratings now apply to the senior unsecured bond
issues of these entities.  CenterTelecom now carries Fitch's B-
rating with a negative outlook.


GAZPROM: Eyes Yukos' 20% Gazprom Neft Stake at a Discount
------------------------ ---------------------------------
OAO Gazprom is eyeing to acquire Yukos Oil's 20% stake in
Gazprom Neft at a price lower than it paid to Millhouse Capital,
Gazprom Neft president Alexander Ryazanov told AK&M News.

According to the report, Mr. Ryazanov noted that Gazprom
acquired Millhouse Capital's 72% stake in Gazprom Neft for US$13
billion in October 2005.   

Mr. Ryazanov added that it would be unfair if Gazprom acquires
Yukos' stake at a relative price since it has already gained
full strategic control of Gazprom Neft, while the oil group has
run out of opportunities at the unit, AK&M relates.

                          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.

                         About Yukos Oil

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.  
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
bankruptcy suit in the Moscow Arbitration Court in an attempt to
recover the remainder of a US$1 billion debt under outstanding
loan agreements.  The banks, however, sold the claim to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
10775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.


GAZPROM: Inks Prelim Purchase Deal for Novatek's 20% Equity
-----------------------------------------------------------
OAO Gazprom has signed a preliminary agreement to acquire up to
20% stake in OAO Novatek, Russia's no. 2 gas producer, Greg
Walters and Geoffrey Smith writes for the Wall Street Journal.

Novatek CFO Mark Gyetvay said the deal, worth about US$2.4
billion at June 23's closing price, would help the company
develop its main fields more quickly, WSJ reports.  

Vladislav Metnev, an oil-and-gas analyst at Troika Dialog,
shared the same view.  "Gazprom will be ready to offer more
capacity in its pipelines, so that Novatek will have room to
increase its production," Mr. Metnev was quoted by WSJ as
saying.

The shares would come from Novatek's core shareholders,
represented by OOO Levit and SWGI Growth Fund (Cyprus) Ltd.  
Gazprom said the purchase price depends on the shares' current
market value.  

According to WSJ, Gazprom expects its production to reach 548
billion cubic meters this year, almost the same amount produced
in 2005.  Novatek, meanwhile, extracted 25.2 billion cubic
meters of gas in 2005, 21% more than in 2004.  

                          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.


GAZPROM: Enters U.K. Retail Market with Pennine Natural Purchase
--------------------------------------------------------------
OAO Gazprom has purchased the supply business of Pennine Natural
Gas Limited with a view of expanding direct retail gas sales to
U.K. commercial and industrial consumers.

Gazprom Marketing and Trading executed the transaction.  In the
nearest future, Gazprom will be working with Pennine Natural Gas
Limited to transfer some 600 customers to Gazprom Marketing and
Trading.

Gazprom Marketing and Trading also entered into an agreement
with Natural Gas Shipping Services Limited to be responsible for
administering Gazprom's gas supply to U.K. end customers.

Part of the Gazprom Group of companies, Gazprom Marketing and
Trading was established in the U.K. in 1999 and has all the
licenses indispensable for gas supply to end users in various
industrial sectors.

                          About PNG

Pennine Natural Gas Limited is the marketing company engaged in
retail gas trading to 900 end customers in the U.K. In 2005
PNG's gross receipts accounted for GBP1.7 million.

Natural Gas Shipping Services Limited is the company providing
natural gas supply administration services to six large gas
distribution companies supplying gas to various industries in
the U.K.  NGSS' 2005 gross receipts stood at GBP1.2 million.

                          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: Fitch Affirms Individual Rating at C/C
------------------------------------------------------------
Fitch Ratings affirmed International Moscow Bank's ratings at
foreign currency Issuer Default BBB, Short-term foreign currency
F3, local currency Issuer Default BBB+, Short-term local
currency F2, Individual C/C and Support 2.  The Outlooks on the
Issuer Default ratings are Stable.

The affirmation follows the recent announcement by Bayerische
Hypo- und Vereinsbank AG, the 94%-owned subsidiary of UniCredito
Italiano that it has entered into an agreement to acquire a
further 26.4% of the voting rights in IMB, from Nordea Bank
Finland.  As a result, HVB will increase its share in the voting
rights of IMB to approximately 79%, from some 53% at the present
time.

IMB's IDRs, Short-term and Support ratings are driven by the
potential strong support from its indirect majority-owner,
UniCredito Italiano.  IMB's local currency IDR of BBB+ is one
notch above the foreign currency IDR, which is constrained by
the BBB country ceiling for Russia.

The Individual rating reflects IMB's fairly high, albeit
improved, concentration levels on both sides of the balance
sheet.  It also considers the risks associated with the bank's
rapid loan growth in segments and regions where it has less
experience.  However, it also factors in IMB's experienced
management, good risk-management framework, fairly limited
market risk and the input of its foreign owners.  Profitability
is also robust and IMB's franchise is growing.

IMB was established in October 1989 as Russia's first joint
venture bank with foreign participation.  Its core business is
servicing large and medium-sized domestic corporates.  However,
its strategy is to develop its retail banking operations
further, including in the regions, as well as lending to smaller
companies.  

IMB ranks among the top 10 Russian banks by total assets.  Fitch
understands that the sale is still subject to the approval of
the Russian authorities.  IMB's remaining shareholders are BCEN-
Eurobank and the European Bank for Reconstruction and
Development.


KUMAREYSKIY WOOD-PROM-KHOZ: Court Begins Bankruptcy Supervision
---------------------------------------------------------------
The Arbitration Court of Irkutsk Region has commenced bankruptcy
supervision procedure on LLC Kumareyskiy Wood-Prom-Khoz.  The
case is docketed under Case no. A19-44689/05-38.

The Temporary Insolvency Manager is:

         Mr. N. Vlasenko
         Post User Box 161
         Stepana Razina Str. 25
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         LLC Kumareyskiy Wood-Prom-Khoz
         Kumareyka
         666397 Irkutsk Region
         Russia


LEBEDYANSKY: Moody's Assigns Ba3 Corporate Family Rating
--------------------------------------------------------   
Moody's Investors Service assigned a Ba3 corporate family rating
to OJSC Lebedyansky.  The rating outlook is stable.

The Ba3 corporate family rating reflects:

   -- Lebedyansky's leading positions in the Russian juice
market;

   -- its diversified portfolio of juice brands well-known in
the market;

   -- the company's well-established Russia-wide sales and
distribution network;

   -- a management's track record of delivering high growth
based on the company's internal resources;

   -- the company's strategy to diversify its business by
expanding operations in the growing baby food market in
Russia;

   -- very high margins with a 3-year historical EBIT of 19.8%,
though these are expected to be under pressure in the
future; and

   -- a significant cushion in leverage, with the end-2005 total
adjusted net debt to EBITDAR being as low as 0.4x.

The rating is mainly constrained by these challenges:

   -- Lebedyansky's still relatively limited scale of business
and revenue concentration;

   -- standardized nature of the juice products and their
sensitiveness to economic-driven fluctuations in consumer
demand;

   -- highly competitive Russian juice market that has been
slowing down its growth;

   -- an increasing pressure on the company's margins driven by
the intense competition, increasing marketing and sales
costs and the growing bargaining power of Russian large
retailers;

   -- ownership concentration and lack of track record of a
long-term consistent dividend policy, though the company
declared its intention to limit the payout ratio within
20-30% of yearly net earnings; and

   -- risks of operating in Russia's economic and regulatory
environment which present additional vulnerabilities.

Lebedyansky has tripled its revenues for the last three years.
The company outperformed Russia's juice market, with its 2005
market share estimated at around 30%, the largest among few
major market players.  

The recent successes have resulted from the company's strategic
focus on:

   -- building a diversified branded juice portfolio;

   -- establishing an efficient sales and distribution network;

   -- providing for technological improvements at its production
facilities; and

   -- creating a tight financial control over each stage of the
business chain.  

The company's successful expansion has been overseen by its
management team, which includes key managers with international
beverage or food-related experience.

In Moody's view, the company's franchise strength, distribution
environment and cost efficiency score higher than common for its
rating category, this provides a solid base for future upward
rating movements.  The company's financial metrics are also
currently strong for the current category, notwithstanding the
company's relatively small-scale and highly concentrated revenue
base.  Moreover, it is anticipated that should the company
continue to pursue an aggressive growth strategy to capitalize
on a growing market, this may result in additional indebtedness,
negative free cash flows, and exposure to risks associated with
high growth strategy.  

The company also remains very sensitive to shifts in the
competitive landscape of the Russian juice market, whereby
multinationals exhibit greater financial wherewithal.  The
company is also exposed to Russian related risks, which include
those risks associated with the day to day operating environment
in Russia, ownership concentration risk and risks resulting from
a short history of the company's business in its current form.

As of March 31, the company had approximately US$7.5 million in
cash, which was sufficient to cover short-term debt of US$7.9
million.  The company also had committed bank credit lines of
approximately US$70 million provided by Russian and foreign
banks with various terms and conditions.

The current rating outlook is stable given Lebedyansky's
franchise and financial strength.  The ability of the company to
diversify its business, increase revenues and maintain market
share in the Russian juice market while minimizing leverage will
be key factors for any positive movement in the rating going
forward.  Conversely, it will be deterioration in market share
and an inability to execute on the growth strategy that would
likely to put pressure on the current rating.  

That noted, revenues and margins would have to materially weaken
if operating cash flow was not sufficient to contribute to the
growth of the business as well as provide good cover for debt
service.  An EBITDA adjusted leverage above 2x and retained cash
flow to net adjusted debt below 20-25% would likely prompt a
revisit of the current rating.

Headquartered in Russia, with its production facilities located
in the Lipetsk region, Lebedyansky is Russia's leading juice
business.  The company also produces baby food products and has
recently started a bottled water project.  The company's 2005
revenues were US$514.6 million.


LEVIKHINSKY RUDNIK: Wants Court to Extend Receivership
------------------------------------------------------
Alexander Bashkov, court-appointed receiver of mining group
Levikhinsky Rudnik, asked the Arbitration Court of Sverdlovsk
Region to extend the company's receivership for two more months
after, Interfax News says.

The court has extended the Debtor's receivership proceedings
several times, with the latest extension expiring on June 22.  
The Debtor sought the extension to register a real estate
purchase-sale transaction.

The Court placed Levikhinsky under a one-year receivership
period in June 2004 due to the Debtor's failure to produce ore
in 2003, and following a flood in 2004.

The Federal Subsurface Resources Agency cancelled the group's
mining license in April 2005 after Levikhinsky failed to resume
operation within the time period allowed, Interfax reports.  The
Court then extended the company's receivership until June 2005.

In December 2005, Levikhinsky's creditors petitioned to close
bankruptcy proceedings against the company after the mining firm
paid in full its first-priority debts and satisfied 73.7% of its
second-priority liabilities, Interfax relates.  Levikhinsky
currently has EUR1 million in unsettled claims.

The Insolvency Manager is:

         Alexander Bashkov
         Olkhovskaya Str. 25/1-13
         620141 Ekaterinburg
         Russia

The Company can be reached at:

         Levikhinsky Rudnik
         Levikha P.
         Kirovograd
         624156 Sverdlovsk Region
         Russia


MINAL: Bankruptcy Hearing Slated for July 12
--------------------------------------------
The Arbitration Court of Krasnoyarsk Region will convene on
July 12 to hear the bankruptcy supervision procedure on OJSC
Minal.  The case was docketed under Case no. A33-5180/2006.

The Temporary Insolvency Manager is:

         Mr. M. Trubachev
         Mira Str. 95
         Minusinsk
         662602 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         OJSC Minal
         Mira Str. 95
         Minusinsk
         662602 Krasnoyarsk Region
         Russia


VIMPELCOM: Court Rejects Telenor's Effort to Invalidate Purchase
----------------------------------------------------------------
The Moscow Arbitration Court has ruled on June 26 in favor of
OJSC Vimpel-Communications in the second of the three lawsuits
filed by Telenor East Invest AS.  

The Company disclosed that it is pleased with the court's
decision dismissing Telenor's claim to invalidate the decision
of VimpelCom's CEO to complete the acquisition of CJSC Ukrainian
Radio Systems.  Monday's ruling marks the second instance where
a Russian court has rejected Telenor's efforts to invalidate
VimpelCom's acquisition of URS.  

On May 15, the Moscow Arbitration Court ruled against Telenor
and upheld the validity of the September 2005 VimpelCom
shareholder vote, which approved the acquisition of URS.  Both
court rulings are subject to appeal and Telenor has already
submitted an appeal of the May 15 ruling.

"We are very pleased that the Moscow Arbitration Court has once
again ruled in VimpelCom's favor," VimpelCom CEO Alexander
Izosimov said.  "An overwhelming 89% of our public shareholders
who voted at the September 2005 shareholder meeting voted in
favor of the URS acquisition after an open and thorough public
debate.  It is my hope that this second court decision in favor
of VimpelCom sends an even clearer message to Telenor that it is
time to act in the best interests of all VimpelCom shareholders
and withdraw its remaining lawsuit against the Company."

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

                        *     *     *

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


ROSNEFT: Aims to Raise US$12 Billion in Next Month's IPO
--------------------------------------------------------
OAO Rosneft plans to raise around US$12 billion in Russia's
largest initial public offering next month, according to
published reports.

Rosneft will offer its shares at the London and Moscow stock
exchanges for a range between US$5.85 and US$7.85 each, valuing
the state-owned company at US$60 billion to US$80 billion.

According to Gregory White and Alistair MacDonald of The Wall
Street Journal, Rosneft will use proceeds from the IPO to pay
off a US$7.5 billion syndicated bank loan that helped finance
the state buyback of a 10.7% stake in Gazprom.

                  Yukos Wants IPO Blocked

Meanwhile, Yukos Oil Co. asked Britain's Financial Services
Authority to block Rosneft's multi-billion dollar IPO, according
to published reports.

Rosneft purchased Yukos' largest production unit,
Yuganskneftegaz, in December 2004 after the Russian government
seized the asset as payment for US$27.5 billion in tax arrears
for 2000-2003.  

Yukos alleged that the flotation would amount to the sale of the
stolen property.

"If the FSA allows the Rosneft IPO to go ahead, it would be
allowing the sale of stolen goods, as well as a rather
convoluted process of money laundering," Yukos spokeswoman
Claire Davidson told Reuters.

Rosneft has already received permission from Russia's market
watchdog to place as much as 23.5% of its stock on foreign
bourses as the state seeks to raise around US$9 billion, Reuters
cited banking sources.

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.  
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
10775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

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

                        *     *     *

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


ROSNEFT: Buys 25.49% Equity Stake in VBRR for EUR332.7 Million
--------------------------------------------------------------
OAO Rosneft won an auction on June 23 for the sale of 25.49%
(19,500 common registered shares) in the charter capital of the
Pan-Russian Bank for Regional Development (VBRR), held by the
Federal Property Management Agency.

Rosneft paid RUB332.7 million for the Federal Property
Management Agency's block of shares, and now owns 76.47% of
shares in the bank.

VBRR's other shareholders are:

   * Vneshtorgbank: 13.3%

   * Volgaburmash: 5%

   * the Orlovskaya Oblast Administration's State Property
     Department: 3.92%

   * the Irkutsk Oblast State Property Management Committee -
     0.65%

   * the Association of Economic Interaction of Russian
     Federation Subjects, the Central Federal District Central-
     Chernozem District: 0.65%

VBRR was created pursuant to a Russian Federation Government
Resolution and started its operations in 1996.  The bank is a
universal credit institution, offering its clients the full
range of banking services.  In terms of performance indicators,
reliability and financial and economic ratios, VBRR ranks
amongst Russia's top 50 banks.

The bank's equity capital as at June 1, 2006, totaled RUB1.2
billion, assets comprised of RUB21.4 billion, and charter
capital RUB765 million.  The bank holds a General License, and
is an affiliated member of the international MasterCard
International payment system and a principal member of the
international VISA International payment system.  VBRR has been
part of the deposit insurance scheme since 2005.

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

                        *     *     *

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


ROSNEFT: Eyes China Petroleum's 51% Equity Stake in Udmurtneft
--------------------------------------------------------------
OJSC Rosneft intends to exercise its option to acquire 51% of
shares in OJSC Udmurtneft from Sinopec (China Petroleum &
Chemical Corp), having reached an agreement with TNK-BP, which
owns 96.9% of Udmurtneft, on the acquisition of the Udmurt
enterprise's assets.

The option exercise by Rosneft for the acquisition of the
controlling stake in Udmurtneft will be completed once Sinopec
and TNK-BP have completed their agreement.  The option exercise
will be completed on the basis of an option agreement reached
between Rosneft and Sinopec in May of this year.

At the current time, Sinopec and TNK-BP have exchanged written
confirmation of the commercial terms of the transaction and are
holding negotiations on the parameters of the final agreements
on this issue with the intention of signing a detailed Purchase
and Sale Agreement.  A highly competitive tender involving a
number of leading domestic and international oil and gas
companies, which began in late 2005, preceded these
negotiations.

Sinopec will be responsible for financing the acquisition, and
funds will be repaid based on the asset's cash flows, without
recourse to Rosneft assets.  The cost of the financing is
similar to that of other recent borrowings by Rosneft.

Management at Rosneft and Sinopec believe that this is a
significant step toward closer collaboration between the two
companies and toward the development of strategic relations with
China's leading industrial corporations.  This will enable
Sinopec to realize its strategy of entering international
markets, including oil and gas production in Russia.

Rosneft expects that its contribution in terms of administrative
and operational expertise will enable maximum increases in this
project's value in the interests of both companies.

Udmurtneft was established in 1973 on the basis of an oil and
gas producing department of the same name, and has been
operating as an open joint stock company since 1994.  At
present, Udmurtneft is the main oil producing enterprise in the
Udmurt Republic, producing over 60% of the oil in the Volga Ural
region.  In 2005, the company produced 5.98 million tons of oil
(43.6 million barrels), with daily production standing at 16,400
tons (115,000 barrels).  

As of Dec. 31, 2005, Udmurtneft's proved reserves stand at 78.4
million tons (551 million barrels), proven and probable reserves
-- at more than 131 million tons (922 million barrels) of oil
equivalent, as estimated by DeGolyer & MacNaughton.

Since it was established, the company has produced more than 200
million tons of oil.  Among Udmurtneft's achievements are
undoubtedly the active use of new methods for enhanced oil
recovery, horizontal drilling and the testing and introduction
of contemporary oil industry equipment.  The enterprise closely
collaborates with many of the world's leading oil industry
equipment producers.

China Petroleum & Chemical Corporation (part of the Sinopec
Group) was established in 2000 and is the largest producer of
oil products and petrochemicals in China.  In 2005, the company
produced 39.3 million tons of oil and 6.3 billion cubic meters
of gas.  Sinopec's proved recoverable oil reserves at the end of
2005 stood at 3.3 billion barrels of oil and 2.9 trillion cubic
feet of gas.  In March 2006, during a visit by Rosneft President
Sergey Bogdanchikov to China, a Memorandum of Mutual
Understanding was signed between Rosneft and Sinopec.

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

                        *     *     *

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


SEVERSTAL: Fitch Keeps Negative Watch Ratings Over Arcelor Bid
--------------------------------------------------------------
Fitch Ratings maintained Mittal Steel Company NV's Issuer
Default and Senior unsecured ratings of BBB and Short-term F2
rating on Rating Watch Negative following the announcement of
its recommended EUR26.9 billion bid for Arcelor S.A.

The agency also said that the Rating Watch Positive status
remains in place for OAO Severstal's ratings of Issuer Default
BB-, senior unsecured BB-, Short-term B and National Long-term
A+.

Should the transaction proceed on the currently understood terms
announced on June 26, the financial profile of the combined
entity would be weaker than that of MS on a stand-alone basis.
The agency notes in particular the increased proportion of cash
payable in the revised offer, to 31%, with 69% financed by MS
shares.

Fitch does, however, acknowledge the complementary business mix
between MS and Arcelor, the greater scale of the combined entity
and the potential US$1.6 billion in synergies during the next
three years.  Accordingly, the ratings of MS could either be
affirmed at the current BBB or lowered by a maximum of one
level.  In the event that MS's offer is not successful, it is
likely that its ratings would be affirmed at the current level.

Fitch notes that while the Arcelor board has recommended
Mittal's offer, Severstal's merger proposal also remains
available.  Should 50% or more of Arcelor's shareholders oppose
its plan to merge with Severstal, this would result in the
automatic termination of the latter's offer.  

Alternately if Mittal obtains control of more than 50% of the
fully diluted share capital of Arcelor, this would also result
in automatic termination of Severstal's offer.  Fitch does not
exclude the possibility that Severstal will revert with adjusted
terms for a merger with Arcelor, but will consider developments
as they occur.

It remains uncertain if the sale of Dofasco Inc., the Canadian
steelmaker purchased by Arcelor in January 2006, to ThyssenKrupp
AG will proceed as Arcelor continues to oppose the sale.  The
ratings of TK remain on Watch Negative pending further
disclosure and the outcome of the matter.  Any potential rating
downgrade in respect of TK and in connection with this
transaction is likely to be limited to one notch.

The Watch Positive of Severstal will be resolved following
either a vote on June 30 by Arcelor shareholders on its offer,
or the outcome of Mittal's offer.  The Watch Negative of MS will
be resolved following meetings with company management and the
closure of the deal, expected in late July 2006.

MS is the world's largest steel manufacturer ranked by
production and is registered in the Netherlands.


SLADKOVSKOYE: Court Commences Bankruptcy Supervision
----------------------------------------------------
The Arbitration Court of Krasnodar Region has commenced
bankruptcy supervision procedure on CJSC Sladkovskoye (Case No.
A-32-1431/05-38/755-B).

The Temporary Insolvency Manager is:

         Mr. A. Lepekhin
         Post User Box 791
         350059 Krasnodar
         Russia

The Debtor can be reached at:

         CJSC Sladkovskoye
         Zelenaya Str. 13
         Tselinnyj
         Slavyanskiy Region
         352066 Krasnodar Region
         Russia


USOLYE-GLUE-FACTORY: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Irkutsk Region has commenced bankruptcy
supervision procedure on OJSC Usolye-Glue-Factory.  The case is
docketed under Case No. A19-45509/05-29.

The Temporary Insolvency Manager is:

         Mr. N. Vlasenko
         Post User Box 161
         Razina Str. 25
         Stepana
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         OJSC Usolye-Glue-Factory
         Usolye-Sibirskoye 3
         665470 Irkutsk Region
         Russia


YUKOS OIL: Gazprom Eyes 20% Gazprom Neft Stake at a Discount
------------------------------------------------------------
OAO Gazprom is eyeing to acquire Yukos Oil's 20% stake in
Gazprom Neft at a price lower than it paid to Millhouse Capital,
Gazprom Neft president Alexander Ryazanov told AK&M News.

According to the report, Mr. Ryazanov noted that Gazprom
acquired Millhouse Capital's 72% stake in Gazprom Neft for US$13
billion in October 2005.   

Mr. Ryazanov added that it would be unfair if Gazprom acquires
Yukos' stake at a relative price since it has already gained
full strategic control of Gazprom Neft, while the oil group has
run out of opportunities at the unit, AK&M relates.

                          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.

                         About Yukos Oil

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.  
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
bankruptcy suit in the Moscow Arbitration Court in an attempt to
recover the remainder of a US$1 billion debt under outstanding
loan agreements.  The banks, however, sold the claim to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
10775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.


YUKOS OIL: Wants British Regulator to Block Rosneft IPO
-------------------------------------------------------
Yukos Oil Co. asked Britain's Financial Services Authority to
block a multi-billion dollar initial public offering by state-
owned OAO Rosneft, according to published reports.

Rosneft purchased Yukos' largest production unit,
Yuganskneftegaz, in December 2004 after the Russian government
seized the asset as payment for US$27.5 billion in tax arrears
for 2000-2003.  Rosneft has disclosed of plans to raise as much
as US$12 billion in Russia's largest IPO in mid-July on the
London and Moscow stock exchanges.  

Yukos alleged that the flotation would amount to the sale of the
stolen property.

"If the FSA allows the Rosneft IPO to go ahead, it would be
allowing the sale of stolen goods, as well as a rather
convoluted process of money laundering," Yukos spokeswoman
Claire Davidson told Reuters.

Rosneft has already received permission from Russia's market
watchdog to place as much as 23.5% of its stock on foreign
bourses as the state seeks to raise around US$9 billion, Reuters
cited banking sources.

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

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an  
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for US$9.35 billion, as
payment for US$27.5 billion in tax arrears for 2000- 2003.  
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than US$12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
bankruptcy suit in the Moscow Arbitration Court in an attempt to
recover the remainder of a US$1 billion debt under outstanding
loan agreements.  The banks, however, sold the claim to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
10775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.


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


DENIZBANK A.S.: Improved Franchise Spurs Fitch to Affirm Ratings
----------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Denizbank A.S.'s ratings as:

   -- Foreign Currency Issuer Default Rating: BB-;
   -- Short-term foreign and local currency: B; and
   -- Individual Rating: C/D.

The Outlook on the foreign currency IDR is Positive.  At the
same time, Fitch confirms that the Rating Watch Positive status
remains in place for the bank's local currency Issuer Default of
BB-, National Long-term A and Support rating of 4.  The RWP was
initiated following the announcement on May 31 from Belgium-
based Dexia that it is planning to acquire 75% of the bank from
Zorlu Holding.

Denizbank's ratings reflect its improved franchise, consistent
track record and sound profitability.  These are balanced by the
bank's rapid loan growth, which has resulted in deterioration in
capital and could lead to asset quality diminution.  

The recent deterioration in the Turkish financial markets,
including higher interest rates and diminished value of the
Lira, is unlikely to adversely impact Denizbank's ratings.  The
RWP reflects the benefits, pending the successful completion of
the acquisition, that Denizbank is expected to receive from its
potential new shareholder Dexia.

The Watch status will be resolved upon the completion of the
acquisition, expected in Q406.

Denizbank is 75%-owned by Zorlu Holding - a large Turkish
conglomerate active in home textiles, electronics and consumer
durables, energy production and distribution, as well as finance
-- with 25% publicly-traded.  

The bank focuses on SME and retail clients, ranking as Turkey's
seventh-largest private bank at end-2005.  It has 244 branches
nationwide, owns banks in Austria and Russia and is engaged in
investment, brokerage, leasing and factoring.


SEKERBANK TAS: Selling 34% Equity Stake to Bank TuranAlem
---------------------------------------------------------
JSC TuranAlem Securities, a subsidiary of Bank TuranAlem, signed
an agreement on June 21 to purchase 33.98% of Sekerbank T.A.S.'s
shares for US$256 million.

The Company expects to complete the transaction by Oct. 31.  
Sekerbank revealed that Bank TuranAlem would file an exemption
at Turkey's Capital Markets Board to acquire the remaining
shares after completing the deal.

At Dec. 31, 2005, Sekerbank's assets totaled US$2.3 billion,
with a US$261 million share capital.  The bank holds 17th place
by assets among 47 banks of Turkey.

"This deal provides us with a ready instrument for attraction of
private deposits from citizens of Turkey, expansion of our brand
and services to the residents of Turkey and CIS.  It is a small
deal but it will give BTA an entry pass to Turkish market.  
Sekerbank is known to be universal bank with strong retail
positions, and Bank TuranAlem is also a universal bank, but with
strong positions in servicing large corporate clients and in
this way we complement each other," Yerkin Tatishev, Bank
TuranAlem's First Deputy Chairman, said.

The acquisition of Turkish bank will expand the geography of
Bank TuranAlem foreign presence up to nine countries, including
Russia and China.

Bank TuranAlem's network of strategic partners include Russia's
Slavinvestbank, Omsk-bank, Agroinkombank, bank BTA Kazan,
Belarus' Astana-Eximbank, Georgia's Silk Road Bank, Armenia's
BTA Investbank.  For 2008, TuranAlem plans to become one of the
largest banks of CIS.  Foreign representative offices of BTA
include Russia, Belarus, Kirgizstan, Ukraine, Armenia,
Tajikistan, Georgia and China.

                         About Sekerbank

Headquarted in Ankara, Turkey, Sekerbank T.A.S. --
http://www.sekerbank.com.tr/-- has operation within the sugar,  
trade, finance, tourism and mining sectors.  The bank has 203
branches throughout Turkey and it ranked 17th by assets among
the 47 banks.  As of Dec. 31, 2005, Sekerbank had US$2.3 billion
in total assets and US$261 million in total.

As reported in the TCR-Europe on Feb 28, Fitch Ratings removed
Rating Watch Positive on Sekerbank T.A.S.'s Long-term foreign
currency and local currency Issuer Default Ratings of B- and
National Long-term of BBB.  These ratings have simultaneously
been affirmed.  The Turkish bank's other ratings are affirmed at
Individual D/E, Short-term B and Support 5.

                      About Bank TuranAlem

Headquartered in Almaty, Kazakhstan, Bank TuranAlem --
http://bta.kz/en/-- is the second largest commercial bank in  
Kazakhstan by IFRS assets by 2005.  The group is present in all
segments of the market: corporate and retail banking, trade
financing, fund market, credits, SME development, leasing,
mortgage lending and pension funds.  The bank's common stock is
owned primarily by a number of Kazakh investors, but Raiffeisen
Zentralbank, the European Bank for Reconstruction and
Development, the International Finance Corporation and
Nederlandse Financierings - Maatschappij Voor
Ontwikkelingslanden own convertible preferred shares.

As of Dec. 31, 2005, Bank TuranAlem had over US$9.2 billion in
total assets and over US$1.6 billion in total equity.

As reported in the TCR-Europe on May 23, Moody's Moody's has
changed to stable from positive the outlook on the Ba1 long-term
foreign currency deposit ratings of Bank TuranAlem following a
sovereign rating action that placed Kazakhstan's Baa3 foreign
currency bond rating on review for possible upgrade while at the
same time changing the outlook on the country's foreign currency
bank deposit ceiling to stable from positive.

As reported by the TCR-Europe on Feb. 14, Standard & Poor's
Ratings Services raised its long-term counterparty credit and
certificate of deposit ratings of Bank TuranAlem to BB from BB-
due to a greater weighting of potential government support in
the banks' creditworthiness.  At the same time, Standard &
Poor's affirmed the bank's 'B' short-term.  The outlook on the
long-term ratings is stable.

As reported in the TCR-Europe on Feb 01, Fitch Ratings has
assigned BTA Finance Luxembourg S.A.'s US$400 million issue of
8.25% perpetual preferred securities a final Long-term 'B+'
rating.  The notes have been issued solely for financing a
subordinated loan from the issuer to TuranAlem Finance B.V.,
Netherlands, which will in turn make a further subordinated loan
to Kazakhstan's Bank TuranAlem (BTA).

BTA is rated:

   -- Long-term foreign currency 'BB+'/Outlook Stable,
   -- Short-term foreign currency 'B',
   -- Long-term local currency 'BBB-'/Outlook Stable,
   -- Short-term local currency 'F3',
   -- Individual 'C/D', Support '3'


TURKIYE GARANTI: Fitch Upgrades Individual Rating to C
------------------------------------------------------
Fitch upgraded Turkiye Garanti Bankasi A.S.'s Long-term local
currency Issuer Default rating to BB+ from BB-, its Individual C
from C/D, Support to 3 from 4 and National rating to AA from A+.

The Outlooks on the Long-term local currency IDR and National
rating are Positive and Stable, respectively.

At the same time, the agency affirmed Garanti's Long-term
foreign currency IDR at BB- Outlook Positive and Short-term
foreign and local currency ratings at B.

The upgrade in Garanti's Long-term local currency IDR, National
and Support ratings is driven by the bank's strategic
partnership with General Electric Consumer Finance.  In December
2005, Dogus Holding, then the majority shareholder of Garanti,
sold a 25.5% stake in the bank to GECF.  The two principal
shareholders now also have equal Board representation.

Garanti management has remained in place.  Although GECF has
purchased a minority stake, it has made clear that its
investment in Turkey is strategic and has begun to enter joint
transactions with the bank so that each can benefit from the
other's product and market expertise.

The upgrade in the bank's Individual rating reflects improvement
in the quality of capital, better asset quality, diversified
funding and stronger profitability.  This is balanced by rapid
loan growth and a volatile operating environment.  

Since 2004 Garanti has been strategically selling non-core
equity investments and fixed assets to improve free capital.
This accelerated during 2005 as certain assets were carved out
of the bank's balance sheet as part of the GECF shareholders'
agreement.  Profitability was enhanced during 2005 and 2006
through better funding costs, stronger fee income and improved
efficiency in a period when margins were squeezed due to falling
inflation.  Garanti's consolidated capital ratio was 13.64% at
end-March 2006.

Garanti's competitive position and franchise continued to
strengthened in Q106 and 2005 and the bank increased its market
share in various segments mainly in credit cards, point of sale
transactions, foreign trade, FX loans, consumer loans and demand
deposits.

Garanti is Turkey's third largest private commercial bank by
assets and provides a full range of corporate, commercial and
retail banking services.  At end-Q106, 27.54% of the shares were
held by Dogus Group, which is engaged in automotive, food,
construction, tourism, media and financial services.  

GECF is wholly owned directly or indirectly by General Electric
Company, which is active in commercial finance, real estate,
aviation, consumer finance, insurance, equipment and other
services.


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


ABISAL: Rivne Court Appoints I. Dragun as Liquidator
----------------------------------------------------
The Economic Court of Rivne Region appointed Mr. I. Dragun as
Liquidator/Insolvency Manager for LLC Abisal (code EDRPOU
22565145).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 13.  

The Economic Court of Rivne Region is located at:

         Yavornitski Str. 59
         33001 Rivne Region
         Ukraine

The Debtor can be reached at:

         LLC Abisal
         Chernyak Str. 2
         33000 Rivne Region
         Ukraine


BATKIVSHINA: Court Taps Sergij Samko to Liquidate Assets
--------------------------------------------------------
The Economic Court of Zhitomir Region appointed Sergij Samko as
Liquidator/Insolvency Manager for Agricultural LLC Batkivshina.  
He can be reached at:

         Sergij Samko
         Kirov Str. 6/4911500
         Korosten
         Zhitomir Region
         Ukraine
         Tel: 8 (067) 976-24-26

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
7/133 b.

The Economic Court of Zhitomir Region is located at:

         Putyatinski square, 3/65
         10002 Zhitomir Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Batkivshina
         Kozhuhivka
         Korosten District
         Zhitomir Region
         Ukraine


DAVIDKIVSKE: Court Appoints Sergij Samko to Manage Assets
---------------------------------------------------------
The Economic Court of Zhitomir Region appointed Sergij Samko as
Liquidator/Insolvency Manager for Agricultural LLC Davidkivske.  
He can be reached at:

         Sergij Samko
         Kirov Str. 6/4911500
         Korosten
         Zhitomir Region
         Ukraine
         Tel: 8 (067) 976-24-26


The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
3/130 b.

The Economic Court of Zhitomir Region is located at:

         Putyatinski Square, 3/65
         10002 Zhitomir Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Davidkivske
         Korosten District
         Zhitomir Region
         Ukraine


ELION: Court Appoints I. Dragun to Liquidate Insolvency Assets
--------------------------------------------------------------
The Economic Court of Rivne Region appointed Mr. I. Dragun as
Liquidator/Insolvency Manager for LLC Scientific-Production
Company Elion (code EDRPOU 22562187).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 6.  The case is docketed
under Case No. 8/9.  

The Economic Court of Rivne Region is located at:

         Yavornitski Str. 59
         33001 Rivne Region
         Ukraine

The Debtor can be reached at:

         LLC Scientific-Production Company Elion
         Prihodko Str. 426
         33000 Rivne Region
         Ukraine


GROZINORIBA: Court Names Sergij Samko as Insolvency Manager
-----------------------------------------------------------
The Economic Court of Zhitomir Region appointed Sergij Samko as
Liquidator/Insolvency Manager for Agricultural LLC Grozinoriba.  
He can be reached at:

         Sergij Samko
         Kirov Str. 6/4911500
         Korosten
         Zhitomir Region
         Ukraine
         Tel: 8 (067) 976-24-26

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
7/116 b.

The Economic Court of Zhitomir Region is located at:

         Putyatinski Square, 3/65
         10002 Zhitomir Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Grozinoriba
         Grozino
         Korosten District
         Zhitomir Region
         Ukraine


HLIBOROB: Sergij Samko to Liquidate Insolvency Assets
-----------------------------------------------------
The Economic Court of Zhitomir Region appointed Sergij Samko as
Liquidator/Insolvency Manager for Agricultural LLC Hliborob.  He
can be reached at:

         Sergij Samko
         Kirov Str. 6/4911500
         Korosten
         Zhitomir Region
         Ukraine
         Tel: 8 (067) 976-24-26

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
4/104 b.

The Economic Court of Zhitomir Region is located at:

         Putyatinski square, 3/65
         10002 Zhitomir Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Hliborob
         Rishavka
         Korosten District
         Zhitomir Region
         Ukraine


KOROP-RAJAGROHIM: Court Names Volodimir Yanovskij as Liquidator
---------------------------------------------------------------
The Economic Court of Chernigiv Region appointed Volodimir
Yanovskij as Liquidator/Insolvency Manager for LLC Korop-
Rajagrohim (code EDRPOU 05491860).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 28.  The case is docketed
under Case No. 5/208 b.

The Economic Court of Chernigiv Region is located at:

         Miru Avenue 20
         14000 Chernigiv
         Ukraine

The Debtor can be reached at:

         LLC Korop-Rajagrohim
         Voznesenska Str. 69
         Korop
         16200 Chernigiv Region
         Ukraine


MANDULIS: Vasil Lyalyuk as Liquidator/Insolvency Manager
--------------------------------------------------------
The Economic Court of Harkiv Region appointed Vasil Lyalyuk as
Liquidator/Insolvency Manager for LLC Mandulis (code EDRPOU
33413930).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 4.  The case is docketed under
Case No. B-39/119-05.

The Debtor can be reached at:

         LLC Mandulis
         Harkiv Region
         Shevchenko Str. 235
         Ukraine


OBERIG: Court Appoints Oleksandr Yuditskij as Insolvency Manager
----------------------------------------------------------------
The Economic Court of Cherkassy Region appointed Oleksandr
Yuditskij as Liquidator/Insolvency Manager for Agricultural LLC
Oberig (code EDRPOU 32012965).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 20.  The case is docketed
under Case No. 14/2033.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:
         
         Agricultural LLC Oberig
         Korsun-Shevchenkivskij District
         Kirove
         19421 Cherkassy Region
         Ukraine


OSNASTKA-SERVICE: Court Names M. Ilkiv as Liquidator
----------------------------------------------------
The Economic Court of Ivano-Frankivsk Region appointed Mr. M.
Ilkiv as Liquidator/Insolvency Manager for Osnastka-Service.  He
can be reached at:

         M. Ilkiv         
         Danilo Galitskij Str. 120/1
         Bolehiv
         Ivano-Frankivsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
B 7/85.

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

         Shevchenko Str. 16a
         76000 Ivano-Frankivsk Region
         Ukraine

The Debtor can be reached at:

         Osnastka-Service
         Konovalets Str. 221
         Ivano-Frankivsk Region
         Ukraine


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


BALBY PLUMBING: Creditors' Meeting Slated on Friday
---------------------------------------------------
Creditors of Balby Plumbing & Heating Limited (Company Number
05074097) will meet at 10:00 a.m. on June 30 at:

         Kelham House
         Kelham Street
         Doncaster DN1 3RE
         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:

         David A. Horner
         Administrator
         David Horner & Co
         Kelham House
         Kelham Street
         Doncaster
         South Yorkshire DN1 3RE
         United Kingdom
         Tel: 01302 760329   
         
David Horner & Co. -- http://www.davidhornerandco.co.uk/-- is a  
firm of insolvency practitioners based at three different
locations, which together cover the whole of Yorkshire and the
North East.  It also has offices in York, Doncaster and
Middlesbrough.  The firm offers practical advice and solutions
to all types of businesses, individuals and creditors, often
enabling formal insolvency to be avoided.


BROADFIELD DEVELOPMENTS: Taps Jonathan Lord to Liquidate Assets
---------------------------------------------------------------
Jonathan Lord, of Bridgestones, was appointed Liquidator of
Broadfield Developments Limited after creditors decided to wind
up the company on March 28.

The company can be reached at

         Broadfield Developments Limited
         Broadfields House
         Saddleworth Road
         Barkisland
         Halifax
         West Yorkshire HX4 0AJ
         United Kingdom
         Tel: 01422 824 019
         Fax: 01422 824 028


CABLE & WIRELESS: Employee Share Trustees Sell 11,549 Shares
------------------------------------------------------------
The Trustees of Cable and Wireless plc Employee Share Ownership
Trust disposed of 11,549 Ordinary Shares in the company at a
price of GBP1.105 per share on June 23.

Following the disposal, 50,351,475 Ordinary Shares are currently
held under the Trust.  Rob Rowley, George Battersby, Tony Rice,
John Pluthero, and Harris Jones -- all being directors of Cable
and Wireless plc -- in their capacity as members of the class of
beneficiaries under the Trust and Towers Perrin Share Plan
Services Limited in their capacity as Trustees of the Trust are
deemed to have a non-beneficial interest in these Ordinary
Shares.

No Directors are disposing of any beneficial interests in the
Company.

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

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

                        *     *     *

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

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


COLT TELECOM: High Court Sanctions Scheme of Arrangement
--------------------------------------------------------
The High Court of England and Wales sanctioned the Scheme to
establish COLT Telecom Group S.A. as the holding company of Colt
Telecom Group PLC and confirmed the reductions of capital and
share premium involved.

Under the Scheme of Arrangement, COLT Shareholders are entitled
to one COLT S.A. Scheme Share for every three COLT Shares held
at the Scheme Record Time.

The Scheme will become effective upon the Court Order
sanctioning the Scheme being delivered to the Registrar of
Companies in England and Wales for registration.

Subject to the satisfaction of certain other outstanding
conditions, the Scheme Effective Date is expected to be
June 30, 2006.  A further announcement will be made when the
Scheme has become effective.

Listing and dealings in COLT Shares on the London Stock Exchange
will be suspended, at COLT's request, at 7:30 a.m. (London time)
on June 30.

Dealings in COLT S.A. Shares on the London Stock Exchange will
commence at 8:00 a.m. on July 3, at which time the listing of
existing COLT Shares will be cancelled.

Headquartered in London, England, Colt Telecom --
http://www.colt.net/ -- offers business communication services  
across Europe.  Through its fiber optic network, the Company
offers voice, bandwidth, e-business and managed network services
to finance, industry and service sector customers and
governments.

                        *     *     *

On March 1, Standard & Poor's Ratings Services placed its 'B-'
long-term corporate credit rating on European business
telecommunications provider COLT Telecom Group PLC on
CreditWatch with positive implications.  This follows the
group's announcement that it is to create a new European holding
company, raise GBP300 million in equity, and undergo debt
reduction.


COMBINATION BOILER: Financial Woes Trigger Liquidation
------------------------------------------------------
Combination Boiler Repairs Limited is winding up its operations
after creditors established the company could no longer continue
its business due to mounting debts.

Gordon Craig and Daniel Paul Hennessy, of Cresswall Associates
Limited, were appointed Joint Liquidators.

The company can be reached at:

         Combination Boiler Repairs Limited
         11 Westminster Close
         Sale
         Cheshire M33 5WZ
         United Kingdom
         Tel: 0161 976 2247
         Fax: 0161 976 2200


COMPONENTS NORTH: Names Edwin James Kirkwood Liquidator
-------------------------------------------------------
Components North West Limited is liquidating its assets after
creditors agreed to wind up the company on April 7.

Edwin James Kirkwood of EJK Associates Limited was appointed
Liquidator.

The company can be reached at:

         Components North West Limited
         8 Gladstone Court
         Farnworth
         Bolton BL4 7EU
         United Kingdom
         Tel: 01204 573 300
         Fax: 01204 573 320
         Web: http://www.componentssnw.co.uk/


CONDOR COMBIFLOOR: Creditors' Meeting Slated for July 5
-------------------------------------------------------
Creditors of Condor Combifloor Limited (Company Number 05406716)
will meet at 2:30 p.m. on July 5 at:

         Unity Business Services LLP
         Unity House
         Clive Street
         Bolton BL1 1ET
         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 July 4 at:

         M.C. Bowker and S. Payne
         Joint Administrators
         Unity Business Services LLP
         Clive House
         Clive Street
         Bolton
         Lancashire BL1 1ET
         United Kingdom
         Tel: 01204 395000
         Fax: 01204 383999
         E-mail: matthewbowker@ubsg.co.uk


CYBERCALL LTD: Begins Liquidation Procedure
-------------------------------------------
Cybercall Limited is liquidating its assets after creditors
found out the company could no longer continue its operations
due to liabilities.

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

The company can be reached at:

         Cybercall Limited
         Stone House
         Parc Teifi Business Park
         Cardigan
         Dyfed SA431EW
         United Kingdom
         Tel: 070 5055 5222


DELAPENA HONING: Creditors' Meeting Set for Friday
--------------------------------------------------
Creditors of Delapena Honing Equipment Limited (Company Number
01879464) will meet at 10:00 a.m. on June 30 at:

         Hazlewoods LLP
         Windsor House
         Barnett Way
         Barnwood
         Gloucester GL4 3RT
         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:

         Philip John Gorman
         Administrator
         Hazlewoods LLP
         Windsor House
         Barnett Way
         Barnwood
         Gloucester GL4 3RT
         United Kingdom
         Tel: +44 (0) 1452 634800
         Fax: +44 (0) 1452 371900
     

DINES PLASTICS: Brings In Administrators from Grant Thornton
------------------------------------------------------------
Keith Hinds, Joseph P. McLean and Tony Flynn of Grant Thornton
U.K. LLP were appointed joint administrators of Dines Plastics
Limited (Company Number 00564760) on May 25.

Headquartered in London, Grant Thornton U.K. LLP --
http://www.grant-thornton.co.uk/-- is the U.K. member of Grant  
Thornton International, one of the world's leading international
organizations of independently owned and managed accounting and
consulting firms.

Headquartered in Basildon, United Kingdom, Dines Plastics
Limited manufactures plastic pack goods.


DIXI AND ASSOCIATES: Hires Deloitte & Touche as Administrators
--------------------------------------------------------------
Andrew Philip Peters and Christopher James Farrington of
Deloitte & Touche LLP were appointed joint administrators of
Dixi and Associates (Machine Tools) Limited (Company Number
00790672) on May 31.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.

Dixi and Associates (Machine Tools) Limited can be reached at:

         Coventry Trading Estate
         Siskin Drive
         Middlemarch Business Park
         Coventry CV3 4FJ
         United Kingdom
         Tel: 024 7688 2107
         Fax: 024 7680 2115


DJR SERVICES (2000): Creditors Resolve to Liquidation
------------------------------------------------
Creditors of DJR Services (2000) Limited resolved to liquidate
the company's assets during an extraordinary general meeting on
April 6.

Andrew Appleyard of Haines Watts was appointed Liquidator.

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

The company can be reached at:

         DJR Services (2000) Limited
         Buntsford Park Road
         Bromsgrove
         Worcestershire B60 3DX
         United Kingdom
         Tel: 01527 579 222     


DOULTON PRECISION: Appoints Stephen P.J. White as Liquidator
------------------------------------------------------------
Doulton Precision Engineering Limited is liquidating its assets
after creditors elected to wind up the company on April 4.

Subsequently, Stephen P.J. White was appointed Liquidator.

The company can be reached at:

         Doulton Precision Engineering Ltd
         Unit E2
         Doulton Trading Estate
         Doulton Road
         Rowley Regis
         West Midlands B65 8JQ
         United Kingdom
         Tel: 01384 634264   


EUROTUNNEL GROUP: Wants Regulators to Examine Bondholders' Plan
---------------------------------------------------------------
Eurotunnel Group asked the French Securities Regulator (AMF) and
the U.K. Listing Authority to examine whether the debt-
restructuring plan brought by Deutsche Bank is misleading
investors, according to published reports.

Eurotunnel is set to meet with representatives of Deutsche Bank
this afternoon.

"We have always said we are open to talks and willing to
integrate elements put forward by the junior debt holders in our
debt restructuring plan," a Eurotunnel spokeswoman told Reuters.  
"But the basis of our talks remains our plan," she added.

            Bondholders' Alternative Rescue Plan

Eurotunnel turned down the restructuring plan prepared by a
group of secured bondholders led by Deutsche Bank AG yesterday a
few days after the plan was finalized, Anousha Sakoui writes for
the Wall Street Journal.

According to the report, Eurotunnel believes that the plan
requires too much debt and gives too much to bondholders.

"Adding debt is not in the interest of shareholders or the
company and we are rejecting the plan as it stands," a company
spokesman told WSJ.

The bondholders' restructuring plan, which valued the company at
EUR7.99 billion, aims to reduce 60% of total debt to EUR3.7
billion and issue a EUR2.175 billion convertible hybrid note
with a 4% coupon, WSJ relates.  

The plan rivaled the preliminary restructuring agreement backed
by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and
Barclays PLC.  The plan, which valued the company at around
EUR7.03 billion, includes a EUR1.5 billion hybrid issue with a
6% to 9% coupon and would reduce debt by 54%.

Eurotunnel shareholders will consider approval of a turnaround
plan at an extraordinary shareholders' meeting slated for
July 27, after which Eurotunnel can sign a final deal.

                        About the Company

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

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

                        *     *     *

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

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

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

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


F.P.H. LIMITED: Names Joint Administrators from Rubin & Partners
----------------------------------------------------------------
Asher Miller and Paul Robert Appleton of David Rubin & Partners
were appointed joint administrators of F.P.H. Limited (Company
Number 4328850) on May 26.

David Rubin & Partners -- http://www.drpartners.com/--  
specializes in corporate and personal insolvency, recovery,
forensic accounting and litigation support.

Headquartered in Essex, United Kingdom, F.P.H. Limited is
engaged in general construction and civil engineering.


FOREMOST PROPERTY: Appoints Tenon Recovery as Administrators
------------------------------------------------------------
Carl Stuart Jackson and Nigel Ian Fox of Tenon Recovery were
appointed joint administrators of Foremost Property Services
Limited (Company Number 2947147) on May 26.

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

Headquartered in Ringwood, United Kingdom, Foremost Property
Services Limited is engaged in cleaning services.


GENERAL MOTORS: 35,000 Hourly Workers Accept Attrition Plan
-----------------------------------------------------------
General Motors Corp. took another important step in the
turnaround of its North American operations, reporting that
35,000 hourly employees (33,800 UAW-represented and 1,200 IUE-
CWA-represented) have agreed to participate in the accelerated
attrition program.

Coupled with the hourly workforce reduction of 6,500 in 2005 and
estimated replacements, including Delphi flowbacks, GM expects
to reach its target of reducing 30,000 manufacturing jobs by
Jan. 1, 2007, about two years ahead of the previously reported
schedule.

"Over the past several months, we have accomplished a great deal
in our strategy to reshape GM into a company that is more
nimble, more global and built for long-term success," GM
Chairman and Chief Executive Officer Rick Wagoner said.  "These
moves have given us a fast start toward achieving our stated
objective of reducing GM's global structural cost from
approximately 34% of revenue in 2005, to 25% of revenue by 2010,
and setting us up to be successful for years to come."

In the last year, GM has been aggressively implementing its
North American turnaround plan.  Some of the major actions taken
include:

   * the health-care agreement with the UAW and the IUE-CWA;

   * the manufacturing capacity plan;

   * changes to U.S. salaried health-care and pension plans;

   * a complete overhaul of GM's marketing strategy; and

   * accelerated launches of key new product entries and
     technologies.

As reported in the Troubled Company Reporter on June 19, 2006,
the accelerated attrition program was reported in March and
offered to 109,000 UAW-represented hourly employees and 3,800
IUE-CWA-represented employees at GM's manufacturing operations
in the United States.  The program ended at midnight June 23.  
Employees who signed up that day have seven days after signing
up (no later than midnight June 30) to opt out of their
retirement or buyout.

Based on preliminary numbers, 4,600 of the participating
employees accepted buyouts and 30,400 chose to retire.  It is
expected that most will retire or leave the company by the end
of the year.  These numbers do not include Delphi employees who
are participating in similar attrition programs.

In addition, the JOBS Bank will be substantially reduced as
employees from the Bank retire, take a buy-out or fill openings
created by the attrition program.  These moves will be
coordinated by GM and the UAW, working through national and
local agreements.

As a result of the success of the accelerated attrition program,
GM is again increasing its targeted reduction in structural
costs in North America to at least US$8 billion from US$7
billion on an annual running rate basis by the end of 2006.

Approximately US$5 billion in savings will be realized in 2006.  
The additional cost reduction of at least US$1 billion, largely
cash savings, will bring expected total annual cash savings from
structural cost reductions to US$5 billion.

Structural costs, such as the cost of unionized employees, are
those operating costs that do not vary with production and
include all costs other than material, freight, and policy and
warranty costs.

GM expects to take a net after-tax charge currently estimated in
the range of US$3.8 billion related to the attrition program,
primarily for payments to employees and for the effect of the
re-measurement of both GM's U.S. pension liabilities and other
post-employment benefits (OPEB) liabilities.  This charge
includes a revision of the accrual taken in the fourth quarter
of 2005 for the North American plant capacity actions.

The amount of this charge is subject to further review based on
such factors as the demographics of the employees accepting the
retirement offer.  Most of the above-noted charge will be
included in second-quarter financial results.  GM will provide
final estimates and additional financial details when it
releases second quarter results next month.

The attrition program also represents another step in reaching a
consensual agreement with Delphi, the UAW and the IUE-CWA in
connection with the Delphi restructuring.

Mr. Wagoner recognized UAW leadership's role in the success of
this attrition program.  "We appreciate the UAW's steady support
in working with us as we make the necessary moves to restructure
GM North America for long-term success," he said.

Mr. Wagoner also thanked the IUE-CWA and GM's other unions for
their support.  He noted: "By working together with our unions,
we can come to solutions to challenging issues that are fair to
both our employees and other important constituents."

He also recognized GM employees' role in the turnaround efforts.

"Consideration of the attrition program was an important
decision for every worker and his or her family," Mr. Wagoner
said.  "For those employees who chose to retire from or leave
the company, I want to thank them for their contributions over
the years.  For those who decided to stay, I look forward to
their continued commitment to building great cars and trucks."

Detailed plans are in place to ensure a smooth transition in GM
manufacturing plants.  Employees who chose to leave the company
will retire or leave no later than Jan. 1, 2007.  GM will use
temporary employees as necessary while permanent replacements
are put in place.  All temporary, relocated, and Delphi flow-
back workers will receive extensive training to maintain GM's
safety leadership and strong quality performance.

                      About General Motors

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

                          *     *     *

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch has assigned a rating of 'BB' and a Recovery Rating (RR)
of 'RR1' to General Motor's new US$4.48 billion senior secured
bank facility.  The 'RR1' (recovery of 90%-100%) is based on the
collateral package and other protections that are expected to
provide full recovery in the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21,
Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed US$4.48 billion senior
bank facility, expiring 2011, with a recovery rating of '1'.

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


GLOBAL TRADE: HSBC Bank Appoints Moore Stephens as Receivers
------------------------------------------------------------
HSBC Bank PLC appointed Phillip Sykes and David Rolph of Moore
Stephens LLP joint administrative receivers of The Global Trade
Centre Limited (Company Number 3165692) on June 15.

Moore Stephens -- http://www.moorestephens.co.uk-- offers  
audit, business support, corporate finance, corporate recovery,
dispute analysis, financial services, insurance broking, IT
consultancy, pensions audit, risk advisory services, tax and
trusts & estates services.


GOLDSHORE HOLDINGS: Winds Up Business & Appoints Liquidator
-----------------------------------------------------------
Creditors of Goldshore Holdings PLC opted to wind up the
company's operations during an extraordinary general meeting on
April 6.

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

The company can be reached at:

         Goldshore Holdings PLC
         17 Post Street
         Godmanchester
         Huntingdon
         Cambridgeshire PE292BA
         United Kingdom
         Tel: 0870 756 8000
         Fax: 0870 756 8001


GOLDSHORE LTD: Hires Liquidator From Leonard Curtis
---------------------------------------------------
Goldshore Limited is liquidating its assets after creditors
passed a resolution to wind up the company on April 6.

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

The company can be reached at:

         Goldshore Limited
         17 Post Street
         Godmanchester
         Huntingdon
         Cambridgeshire PE292BA
         United Kingdom
         Tel: 0870 756 8000


GRAPHITE MORTGAGES: Fitch Rates EUR27.85-Mln Class E Notes at BB
----------------------------------------------------------------
Fitch placed expected ratings to Graphite Mortgages PLC - Series
2006-1 EUR523 million mortgage-backed floating-rate notes as:

   -- EUR0.75 million Class A+: AAA;
   -- EUR156.6 million Class A: AAA;
   -- EUR194.5 million Class B: AA-;
   -- EUR53.5 million Class C1: A;
   -- EUR26.85 million Class C2: A-;
   -- EUR45.1 million Class D1: BBB;
   -- EUR17.85 million Class D2: BBB-; and
   -- EUR27.85 million Class E: BB.

This transaction is a EUR3.48-billion synthetic securitization
of residential mortgages originated in the U.K.  It references a
pool of U.K. residential mortgage loans originated by Northern
Rock PLC, which are also used to collateralize the guarantee for
Northern Rock's covered bond program.  

This is the fourth public synthetic transaction in the U.K. to
use the Provide transaction platform developed by Kreditanstalt
fur Wiederaufbau, a public entity guaranteed by the Federal
Republic of Germany.

The ratings will be final upon receipt of conclusive documents
conforming to information already received.

The expected ratings are based on the quality of the collateral,
available credit enhancement, the underwriting and servicing
capabilities of Northern Rock, and the transaction's sound legal
structure.  

Credit enhancement for the Class A+ notes, provided by
subordination, totals 15.82%, consisting of the Class A1
(4.50%), B (5.59%), C1 (1.54%), C2 (0.77%), D1 (1.30%), D2
(0.51%), and E notes (0.80%) and the outstanding threshold
amount of EUR28.15 million (0.81%).

To determine appropriate credit enhancement levels, Fitch
analyzed the collateral using its U.K. Residential Mortgage
Default Model III.


HEALTH TEC: Creditors' Meeting Slated for July 3
------------------------------------------------
Creditors of Health Tec Services Limited (Company Number
04174650) will meet at 11:00 a.m. on July 3 at:

         Unity Business Services LLP
         Unity House
         Clive Street
         Bolton BL1 1ET
         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 30 at:

         M.C. Bowker and S. Payne
         Joint Administrators
         Unity Business Services LLP
         Unity House
         Clive Street
         Bolton
         Lancashire BL1 1ET
         United Kingdom
         Tel: 01204 395000
         Fax: 01204 383999


INCO LTD: Inks US$56-Bln Merger with Falconbridge & Phelps Dodge
----------------------------------------------------------------
Phelps Dodge Corporation, Inco Limited and Falconbridge Limited
agreed to combine in a US$56 billion transaction to create a
North American-based mining company that is one of the world's
largest.  The new company will be named Phelps Dodge Inco
Corporation.

Phelps Dodge Inco will be the world's leading nickel producer,
the world's largest publicly traded copper producer and a
leading producer of molybdenum and cobalt, and it will have a
world-class portfolio of growth projects and exciting
exploration opportunities.  For the quarter ended March 31,
2006, the three companies had combined revenues of US$6.3
billion and EBITDA of US$1.9 billion.

The corporate office and the new company's copper division will
be headquartered in Phoenix.  Inco Nickel, the new company's
nickel division, will be headquartered in Toronto.

The Phelps Dodge board of directors also reported, as part of
the transaction, a share repurchase program of up to US$5
billion to be commenced after closing.

Phelps Dodge Inco will have operations in more than 40 countries
and will employ approximately 40,000 people globally.  Phelps
Dodge Inco will be listed on the New York Stock Exchange and
will apply for a listing on the Toronto Stock Exchange.  As a
result of the three-way combination, Phelps Dodge Inco will have
a significantly increased weighting in the S&P 500 Index.

"This transaction represents a unique opportunity in a rapidly
consolidating industry to create a global leader based in North
America-home of the world's deepest and most liquid capital
markets," J. Steven Whisler, chairman and chief executive
officer of Phelps Dodge Corporation, said.  "The combined
company has one of the industry's most exciting portfolios of
development projects, and the scale and management expertise to
pursue their development successfully.  The creation of this new
company gives us the scale and diversification to manage
cyclicality, stabilize earnings and increase shareholder
returns.  At the same time, we are committed to maintaining an
investment-grade credit rating throughout the business cycle."

"This combination allows Inco's shareholders, in addition to
receiving a substantial premium for their stock, to share in the
significant synergies both from our agreed merger with
Falconbridge and from the combination with Phelps Dodge, and it
creates an opportunity for all three groups of shareholders to
participate in an exciting, new, diversified industry leader,"
Scott M. Hand, chairman and chief executive officer of Inco,
said.  "We believe the Phelps Dodge transaction delivers an
excellent value proposition for our shareholders.  The new
Phelps Dodge Inco also will maintain a very strong commitment to
and presence in Canada."

"This is an industry-redefining transaction," Derek Pannell,
chief executive officer of Falconbridge, said.  "Phelps Dodge
Inco will have the scale, diversification, market leadership,
reserve position, growth profile and balance sheet necessary to
create tremendous value for shareholders.  It represents a
significant premium to Falconbridge shareholders, with ongoing
participation in the upside of the three-way combination.  We
believe this transaction represents a most compelling
opportunity for all Falconbridge shareholders."

                    Terms of the Transaction

Under the terms of the transaction, Phelps Dodge will acquire
all of the outstanding common shares of Inco for a combination
of cash and common shares of Phelps Dodge having a value of
CDN$80.13 per Inco share, based upon the closing price of Phelps
Dodge stock and the closing US/Canadian dollar exchange rate on
Friday, June 23, 2006.  Each shareholder of Inco would receive
0.672 shares of Phelps Dodge stock plus CDN$17.50 per share in
cash for each share of Inco stock.  This represents a premium of
23% to Inco's market price as of close of trading on June 23 and
a 19% premium to the value of the existing Teck Cominco Limited
unsolicited offer for Inco.

Simultaneous with its entry into the combination agreement with
Phelps Dodge, Inco has entered into an agreement with
Falconbridge to increase its previously recommended offer for
Falconbridge.  Under the terms of this enhanced offer, Inco has
increased the cash component of the offer from CDN$12.50 to
CDN$17.50 and the exchange ratio from 0.524 shares of Inco for
each share of Falconbridge to 0.55676 shares of Inco for each
share of Falconbridge.  The board of Falconbridge has
unanimously agreed to recommend this revised offer and also
approved an amendment of the Support Agreement with Inco to
reflect the revised price.

Based upon the value of the consideration offered by Phelps
Dodge for Inco of CDN$80.13 per share, the implied value of the
revised agreed offer for Falconbridge including the increased
cash component is CDN$62.11 per share, representing a 12%
premium to Falconbridge's closing price on June 23, and an 18%
premium to the existing Xstrata plc unsolicited offer for
Falconbridge.

At Phelps Dodge's June 23 closing price of US$82.95, the total
enterprise value of the acquisition by Phelps Dodge of the
combined Inco and Falconbridge is approximately US$40 billion.

The acquisition of Falconbridge by Inco is subject to regulatory
approvals and other customary closing conditions, and Inco's
tender offer is expected to close in July.  Inco anticipates
conducting a second-stage transaction to acquire the remaining
Falconbridge shares, which is expected to close in August.  Upon
the closing of the Phelps Dodge-Inco combination, shareholders
of Falconbridge who have been issued Inco common shares in the
Inco-Falconbridge transaction will be entitled to receive for
those shares the same package of cash and Phelps Dodge shares as
will other Inco shareholders.

Phelps Dodge strongly supports Inco's agreed offer for
Falconbridge and has entered into a definitive agreement under
which it will purchase up to US$3 billion of convertible
subordinated notes issued by Inco to provide Inco with
substantial additional liquidity at the time of its purchase of
Falconbridge common shares and to satisfy related dissent
rights, as needed.  The convertible subordinated notes will only
be funded in the event the Inco/Falconbridge combination is
consummated.  The instrument will be redeemable for cash at any
time by Inco after the merger with Falconbridge and may be
converted at any time beginning six months after issuance by
Phelps Dodge at a conversion rate equal to 95% of the market
value of Inco's common shares plus accrued interest of the
security at the time of conversion.  The instrument will bear an
8% PIK coupon.  The issuance of the convertible subordinated
notes will be subject to regulatory approval.

Phelps Dodge intends to complete its share repurchase program
within the 12 months after closing of the Inco transaction in an
amount equal to US$5 billion, less the amount of any convertible
subordinated notes purchased by Phelps Dodge.

The transaction between Phelps Dodge and Inco is not conditioned
upon the completion of the Inco and Falconbridge combination.  
Thus, in the event the Inco-Falconbridge merger is not
completed, Inco shareholders will receive the same 0.672 shares
of Phelps Dodge and CDN$17.50 per share in cash that they would
have received in the proposed three-way combination.  Should
Inco not complete the Falconbridge transaction, the Phelps Dodge
board of directors intends to execute the full US$5 billion
share repurchase program within 12 months of closing a
transaction with Inco.

Inco has agreed to pay a break-up fee to Phelps Dodge under
certain circumstances of US$475 million on a stand-alone basis
and US$925 million in conjunction with its combination with
Falconbridge.  Inco has also given Phelps Dodge certain other
customary rights, including a right to match competing offers.  
Phelps Dodge has agreed to pay Inco a US$500 million break-up
fee under certain circumstances.

Phelps Dodge has received financing commitments from Citigroup
and HSBC that may be drawn upon to fund the contemplated
transactions and the up to US$5 billion share repurchase
program.

Inco has received additional financing commitments from Morgan
Stanley, Goldman, Sachs & Co., Royal Bank of Canada, and Bank of
Nova Scotia in support of the increased cash component of its
revised agreed offer for Falconbridge.

After completion of the transaction, current Phelps Dodge
shareholders would own approximately 40% of Phelps Dodge Inco,
current Inco shareholders would own approximately 31%, and
current Falconbridge holders would own approximately 29%.  The
transaction, which is subject to Phelps Dodge and Inco
shareholder approval, regulatory approvals and customary closing
conditions, is expected to close in September 2006.

                       Expected Synergies

The combination of Phelps Dodge, Inco and Falconbridge is
expected to result in total annual synergies of approximately
US$900 million by 2008.  This includes US$550 million in total
expected annual synergies from the combination of Inco and
Falconbridge.

The net present value of total synergies, at a 7% discount rate,
is approximately US$5.8 billion after-tax.

The combination brings together three companies with unique,
complementary skill sets.  The synergies previously identified
by Inco and Falconbridge will be generated in part by joint
operation of facilities in the Sudbury Basin, where there are
contiguous, interwoven mines and processing facilities.  
Consolidation of the district allows feed flow changes that
result in production increases and cost reductions.  Also,
consolidation of management allows for the sharing of best
practices.

The inclusion of Phelps Dodge enhances these synergies.  Its
three-year-old North American One Mine processes are an
excellent blueprint for the consolidation of the Sudbury
district.  In addition, Phelps Dodge brings a focus on
technology that can be applied to improve process recoveries and
throughput in Sudbury and elsewhere.  Also, the larger company
will realize savings in procurement and supply-chain management
because of its much larger size.

Based on these synergies, the combination is expected to be
immediately accretive to cash flow and accretive to earnings per
share in 2008, excluding integration and transaction costs.

The new, larger company will benefit from a strengthened
financial position to take advantage of future growth
opportunities.  This increased financial strength, coupled with
its combined assets and expertise, will enable it to pursue
current and future development projects more effectively.

             Management Team and Board of Directors

J. Steven Whisler, chairman and chief executive officer of
Phelps Dodge, will be chairman and chief executive officer of
the new company.  Scott M. Hand, chairman and chief executive
officer of Inco, will become vice chairman of Phelps Dodge Inco.  
Derek Pannell, chief executive officer of Falconbridge, will
become president: Inco Nickel and will head the new company's
nickel, zinc and aluminum operations.  Timothy R. Snider,
president and chief operating officer of Phelps Dodge, will hold
the same position in the new company.  Ramiro G. Peru, executive
vice president and chief financial officer of Phelps Dodge, will
be the chief financial officer of the new company.  Mr. Whisler,
Mr. Snider and Mr. Peru will be based in Phoenix.  Mr. Hand and
Mr. Pannell will be based in Toronto.

The board of directors of the new company will be composed of 15
members, 11 from the board of Phelps Dodge and four from the
boards of Inco and Falconbridge.

                      Advisors and Counsel

Phelps Dodge is being advised by Citigroup Corporate and
Investment Banking and by HSBC Securities.  Phelps Dodge's
counsel are Debevoise & Plimpton LLP and Heenan Blaikie LLP.  
Inco is being advised by Morgan Stanley, RBC Capital Markets and
Goldman Sachs.  Inco's counsel are Sullivan & Cromwell and Osler
Hoskin & Hartcourt LLP.  Falconbridge is being advised by CIBC
World Markets.  Falconbridge's counsel are McCarthy Tetrault LLP
and Fried Frank Harris Shriver & Jacobson LLP.

                        About Phelps Dodge

Phelps Dodge Corp. -- http://www.phelpsdodge.com/-- produces  
copper and molybdenum and is the largest producer of molybdenum-
based chemicals and continuous-cast copper rod.  The company and
its two divisions, Phelps Dodge Mining Co. and Phelps Dodge
Industries, employ approximately 15,000 people worldwide.

                       About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a  
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

                           About Inco

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) --
http://www.inco.com/-- is the world's #2 producer of nickel,  
which is used primarily for manufacturing stainless steel and
batteries.  Inco also mines and processes copper, gold, cobalt,
and platinum group metals.  It makes nickel battery materials
and nickel foams, flakes, and powders for use in catalysts,
electronics, and paints.  Sulphuric acid and liquid sulphur
dioxide are produced as byproducts.  The company's primary
mining and processing operations are in Canada, Indonesia, and
the U.K.

                          *     *     *

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating and Standard &
Poor's BB+ rating.


KOSCO COMMUNICATIONS: Brings In Liquidator from Bridgestones
------------------------------------------------------------
Jonathan Lord, of Bridgestones, was appointed Liquidator of
Kosco Communications Limited after creditors moved to liquidate
the company's assets during an extraordinary general meeting on
March 30.

The company can be reached at:     

         Kosco Communications Limited
         16 South Arcade
         Chester Street
         Wrexham
         Clwyd LL138BE
         United Kingdom
         Tel: 01978 366 692


LASTING IMPRESSIONS: Creditors' Meeting Slated on Friday
--------------------------------------------------------
Creditors of Lasting Impressions Limited (Company Number
01439899) will meet at 10:00 a.m. on June 30 at:

         43-45 Portman Square
         London W1H 6LY
         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:

         Paul John Clark and Jason James Godefroy
         Joint Administrators
         Menzies Corporate Restructuring
         43/45 Portman Square
         London W1H 6LY
         United Kingdom
         Tel: 020 7487 7240  

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


* Fitch Sees New European Gas Crisis from Converging Forces
-----------------------------------------------------------
Fitch disclosed that the combination of events, demands and
potential price rises could spark a new European energy crisis.  

The chief elements converging now are calls by Ukraine's prime
minister designate to re-visit the gas agreement reached with
Russia at the beginning of the year; new demands by Turkmenistan
that Russia pay US$100 per thousand cubic meters of gas; reports
that OJSC Naftogaz (rated B+/Outlook Negative) is not storing
enough gas in its underground storage facilities to ensure
uninterrupted supplies to Europe this winter; and indications
that OAO Gazprom (BB+/Outlook Stable) intends to raise prices
for Ukraine again in July.

"It seems like all the makings of a perfect storm," Jeffrey
Woodruff, Director in Fitch Rating's Energy Group in Moscow
observed.

He added, "Any of the events in isolation could be enough to
spark a new supply interruption concerns in Europe, but all of
them colluding near the beginning of the G8 summit on energy
security seems almost unbelievable."

Political parties in Ukraine (BB-/Outlook Stable) have finally
been able to form a new coalition after months of infighting and
bickering that followed parliamentary elections in March of this
year.  Yulia Tymoshenko is poised to be reinstated as Ukraine's
prime minister, eight months after being dismissed from her
duties, after forming a coalition that includes the pro-
presidential Our Ukraine party, Tymoshenko's own bloc and the
smaller Socialists party.  

As part of her return to power, the incoming prime minister
says, "All agreements on gas supplies to Ukraine today call for
further profound revision, and for construction in a friendly
mode of new contractual relations with Russia and Turkmenistan."
Gazprom has said that any attempt to revise the previously
reached agreement could lead to renewed supply problems for
Europe.

Gazprom has also said that Naftogaz is not currently pumping
enough natural gas into underground storage facilities to meet
winter demand.  Gazprom believes that about 18.5 billion cubic
meters of gas should be pumped into Ukraine's underground
storage facilities before the heating season starts in order to
ensure uninterrupted transit of Russian gas to Europe.  

The head of Italian energy group ENI, Paolo Scaroni, has also
said he feared January's crisis might recur due to the
insufficient pace of gas storage.  Naftogaz claims it has pumped
5 billion cubic meters of natural gas into underground storage
facilities as of June 22 and intends to pump a total of 16
billion cubic meters into underground storage facilities before
the start of the 2006-2007 heating season.

In the meantime, tensions continue to rise as Turkmenistan
threatened to cut gas supplies to Russia after an agreement on
the price for the second half of 2006 failed to be struck.
Turkmenistan is attempting to raise the price at which Gazprom
buys from Turkmenistan from US$65 to US$100 per thousand cubic
meters.  Any such price increase will likely have a direct
negative impact on Ukraine as well since the country receives
most of its gas from the Central Asian republic.

Fitch expects that Gazprom, which supplies up to 17 billion
cubic meters of gas to Ukraine per year, would be quick to pass
on these higher costs.  In addition, successful price increases
by Turkmenistan to supply gas to Russia would also likely lead
to direct price increases for Ukraine, which receives
approximately 40 billion cubic meters from Turkmenistan per
annum.

                           *********

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

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

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

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

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

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