TCREUR_Public/060629.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Thursday, June 29, 2006, Vol. 7, No. 128

                            Headlines


A U S T R I A

HIMMELBAUER KARL: Creditors' Meeting Slated for July 5
INVENIO: Creditors' Meeting Slated for July 18
KAMARIN: Vienna Court to Close Case After Final Allocation
MIRAGE GASTRONOMIE: Court Closes Case Due to Lack of Funds
OFRIM: Insufficient Funds Prompt Court to Close Case

RICHTIGE TRANSPORT: Lack of Funds Prompt Court to Close Case


F R A N C E

EUROTUNNEL GROUP: Snubs Deutsche Bank-Led Rescue Plan
MAXILIVRES: Lyon Commercial Court Opens Composition Proceedings


G E R M A N Y

AQUA SOCIETY: Posts US$1 Million Net Loss in Second Quarter 2006
BRENNTAG LUXCO: Moody's Affirms B2 Corporate Family Rating
IGS INGENIEURGESELLSCHAFT: Claims Registration Ends July 10
INFOMATEC AG: Unveils Recovery Plan to End Insolvency
JACKEL GMBH: Creditors' Meeting Slated for July 19

JOSEF VOGEL: Creditors' Meeting Slated for July 19
KARSTADTQUELLE AG: Workers Threaten to Quit Jobs If Sale Closes
KL BAUFACHMARKT: Claims Registration Ends July 13
KURT HUEBNER: Creditors' Meeting Slated for July 10
POLSTER GRANIT: Claims Registration Ends July 19

SANDERSTRASSE 31: Creditors' Meeting Slated for July 19
SCHNABEL GMBH: Claims Registration Ends July 19
SCHOENEN FERTIGHAUS: Claims Registration Ends July 17
WOHNANLAGE MARKNEUKIRCHEN: Claims Registration Ends July 12


G R E E C E

EMPORIKI BANK: Greece Expects Local Bank to Join Bidding Race
EMPORIKI BANK: Moody's Comments on Bank of Cyprus' Bid


I T A L Y

SEAT PAGINE: Debt Reduction Prompts Moody's to Upgrade Ratings


K A Z A K H S T A N

AK KASKOR: Creditors Must File Claims by July 11
ARALSHAK: Kyzylorda Court Opens Bankruptcy Proceedings
BEKEN-ATA: Kyzylorda Court Starts Bankruptcy Process
FRAK DJET: Creditors Must File Claims by July 11
FORGING-MECHANICAL: Proof of Claim Deadline Slated for July 11

JIGER: Kyzylorda Court Begins Bankruptcy Proceedings
KVANT LTD: Proof of Claim Deadline Slated for July 10
RER: Claims Registration Ends July 10
RO-NU: Claims Registration Ends July 10
TAGZYM: Creditors' Claims Due July 10


L U X E M B O U R G

LIGHTHOUSE INT'L: Moody's Lifts EUR1.3-Bln Debt Ratings to B2
NORTEL NETWORKS: Eyes Pension Plan Changes & 1,100 Job Cuts


N E T H E R L A N D S

LEOPARD CLO: Moody's Assigns Ba3 Rating to Class E Notes


P O L A N D

NETIA SA: Court Partially Cancels Outstanding License Fee Dues


R U S S I A

ABINSKIY FURNITURE: Court Names V. Osadchuk Insolvency Manager
ADYGEYA-OIL-GAS: Y. Bidanok to Manage Insolvency Assets
BELGOROD-BOOK: Court Appoints V. Krotov as Insolvency Manager
BELOZERSKIY WINE: Bankruptcy Hearing Slated for July 13
BUZDYAKSKIY AGRO-SERVICE: Court Starts Bankruptcy Supervision

EASTERN FEED: Bankruptcy Hearing Slated for Aug. 22
EVRAZ GROUP: Reelects Alexander Frolov as Board Chairman
KUZNETSKIY BRIDGE: Bankruptcy Hearing Slated for Aug. 10
NOVATEK: Subsidiaries Sell 20% Equity Stake to Gazprom
ORE MINING: Court Names P. Solunin as Insolvency Manager

OZERSKOYE: Bankruptcy Hearing Slated for July 26
SEVERSTAL: Arcelor's Top Investor to Vote for Mittal Merger
YAROSLAVSKOYE: Court Names S. Vodopyanov Insolvency Manager


S P A I N

BANKINTER 2: Moody's Junks EUR14.6 Million Series E Notes
CONSUMO BANCAJA: Moody's Junks EUR13.2 Million Series D Notes
HIPOCAT 10: S&P Rates EUR25.5-Mln Class D Notes at CCC-


T U R K E Y

ARAP TURK: Fitch Affirms Long-Term Foreign & Local Currency at B


U K R A I N E

AGRO: Kyiv Court Names S. Gritsay to Liquidate Assets
BILOGIRSK' REPAIR-TRANSPORT: Court Names Olga Pokidko Liquidator
INTELMED: Court Appoints S. Gritsay as Insolvency Manager
INTERAGRO: Court Appoints S. Gritsay as Liquidator
ROSTOK: Court Appoints Ludmila Chmil as Insolvency Manager

RUBIN: Court Names Nataliya Chesnova as Insolvency Manager
UKRBROKINVEST: Court Names S. Gritsay to Manage Assets


U N I T E D   K I N G D O M

ADVENT UNDERWRITING: S&P Assigns 2- Lloyd's Syndicate Assessment
AUDUS NOBLE: Appoints Grant Thornton as Administrators
BLYTH & PAGE: Appoints Replacement Administrator from PwC
BODY AND BEING: Names T. Papanicola as Administrator
CASTLETON SYSTEMS: Brings In Administrators from Begbies Traynor

CENTRAL EUROPEAN MEDIA: S&P Lifts Corporate Family Rating to Ba3
DECOURCY CITY: Appoints KPMG as Administrators
DERISK I.T.: Names Tony James Thomson as Administrator
EMI GROUP: Board Unanimously Rejects Warner Music Revised Offer
EUROTUNNEL GROUP: Snubs Deutsche Bank-Led Rescue Plan

KINGSWOOD LIMITED: Hires Administrators from Portland Business
LACE LTD: Creditors Pass Winding Up Resolution
LAKESIDE RETAIL: Financial Woes Trigger Liquidation
LUMICARE LTD: Taps Samuel Jonathan Talby to Liquidate Assets
MARTIN FARMER: Names Keith Aleric Stevens Liquidator

MODULAR BUILDINGS: Creditors Resolve to Liquidation
POWER PREP: Liquidates Assets & Appoints Joint Liquidator
ROBERT TURPIN: Taps F.A. Simms to Administer Assets
S & G GROUNDWORK: Hires Liquidator from David Platt Associates
STARLINE ASSOCIATES: Hires Milner Boardman as Administrators

STEPHEN EASTEN: Appoints Tait Walker as Joint Administrators
STONEMERE LTD: Winds Up Business & Names Liquidator
WATERFORD WEDGWOOD: Fitch Keeps Junk Ratings on Likely Default


                            *********


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


HIMMELBAUER KARL: Creditors' Meeting Slated for July 5
------------------------------------------------------
Creditors owed money by LLC Himmelbauer Karl (FN 71094a) are
encouraged to attend the first creditors' meeting at 10:00 a.m.
on July 5 to consider the revision of the rule by adoption and
accountability.

The meeting of creditors will be held at:

         The Land Court of Korneuburg
         Room 204
         2nd Floor
         Korneuburg, Austria         

Headquartered in Hadres, Austria, the Debtor declared bankruptcy
on May 17 (Bankr. Case No. 36 S 59/06b).   Kristina Kock serves
as the court-appointed property manager for the bankrupt estate.  


INVENIO: Creditors' Meeting Slated for July 18
----------------------------------------------
Creditors owed money by LLC Invenio (FN 192221d) are encouraged
to attend the first creditors' meeting at 11:10 a.m. on July 18
to consider the revision of the rule by adoption and
accountability.

The meeting of creditors will be held at:

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

Headquartered in St. Polten, Austria, the Debtor declared
bankruptcy on May 17 (Bankr. Case No. 14 S 85/06z).   Hans
Pucher serves as the court-appointed property manager for the
bankrupt estate.


KAMARIN: Vienna Court to Close Case After Final Allocation
----------------------------------------------------------
The Trade Court of Vienna will close the bankruptcy case of
Trade LLC Kamarin (FN 101380p) after the Debtor's final
distribution to creditors.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 5, 2005 (Bankr. Case No. 3 S 93/05d).  Horst Winkelmayr
served as the court-appointed property manager for the bankrupt
estate.  


MIRAGE GASTRONOMIE: Court Closes Case Due to Lack of Funds
----------------------------------------------------------
The Land Court of Feldkirch closed the bankruptcy case of LLC
Mirage Gastronomie (FN 234978g) on May 16 due to the Debtor's
administrative insolvency.  This means that the Debtor does not
have enough cash to cover costs of the bankruptcy proceedings.

As a result, creditors will not receive any distribution.

Headquartered in Dornbirn, Austria, the Debtor declared
bankruptcy on Dec. 27, 2004 (Bankr. Case No. 13 S 68/04m).  
Hanno Lecher served as the court-appointed property manager for
the bankrupt estate.  


OFRIM: Insufficient Funds Prompt Court to Close Case
----------------------------------------------------
The Land Court of St. Polten closed the bankruptcy case of LLC
Ofrim (FN 252276w) on May 16 due to the Debtor's administrative
insolvency.  This means that the Debtor does not have enough
funds to pay creditors.

Headquartered in Gerersdorf, Austria, the Debtor declared
bankruptcy on Feb. 17, 2006 (Bankr. Case No. 14 S 31/06h).  
Hans-Peter Pfluegl served as the court-appointed property
manager for the bankrupt estate.  


RICHTIGE TRANSPORT: Lack of Funds Prompt Court to Close Case
------------------------------------------------------------
The Trade Court of Vienna closed the bankruptcy case of LLC
Richtige Transport Logistik Wien (FN 185380v) on May 17 due to
the Debtor's administrative insolvency.  This means that the
Debtor does not have enough cash to cover costs of the
bankruptcy proceedings.

As a result, creditors will not receive any distribution.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 23, 2003 (Bankr. Case No. 28 S 294/03v).  Peter Zens
served as the court-appointed property manager for the bankrupt
estate.  


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


EUROTUNNEL GROUP: Snubs Deutsche Bank-Led Rescue Plan
-----------------------------------------------------
The Ad Hoc Committee of Eurotunnel Group indicated directly to
the holders of the subordinated debt that the financial
restructuring project developed by Deutsche Bank AG was not
acceptable to the creditors that they represent.

This position means that the project has no chance of success
even though it is still presented by its promoters as an
alternative.

This project, based on an enterprise value far superior to that
emanating from the combined analyses of Eurotunnel and the Ad
Hoc Committee, would enable the most subordinated creditors to
recover a substantially greater amount than the market value of
their debt and probably, in the case of most of these creditors,
the acquisition cost of their debt.

These subordinated creditors remaining free to trade in the
bonds constituting this subordinated debt, Eurotunnel has
requested that the market authorities in the U.K. and France
take steps to ensure that the subordinated creditors' project
has not been proposed for the sole purpose of misleading other
market participants, and in particular shareholders, who might
be tempted to trade in these bonds or other equity securities of
Eurotunnel in the hope of realizing the levels of return on
investment put forward by these creditors.

            Bondholders' Alternative Rescue Plan

As reported in TCR-Europe yesterday, Eurotunnel turned down the
restructuring plan prepared by a group of secured bondholders
led by Deutsche Bank AG Tuesday a few days after the plan was
finalized.

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 the Wall Street Journal.

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.


MAXILIVRES: Lyon Commercial Court Opens Composition Proceedings
---------------------------------------------------------------
The Commercial Court of Lyon commenced composition proceedings
against MaxiLivres on June 26, Les Echos reports.

MaxiLivres' management told the Court the group has sufficient
financial means to stay afloat until November and beyond if it
can posts sales, Les Echos relates.  The group did not file a
redundancy plan for its 550-strong work force.

Headquartered in Lyons, France, Maxilivres --
http://www.maxilivres.com/-- sells used books at discount  
prices.  Maxilivres has 143 sale points in France and Belgium.  
The company filed for insolvency protection at the Commercial
Court of Lyon on June 22 due to Omnium de Participations
withdrawal of support at the end of the month.

According to La Tribune, Maxilivres has suspended its payments
and has asked the Court to place the company under court-
supervised administration.  The company is currently looking for
a buyer to stay afloat, or else undergo voluntary liquidation,
Les Echos relates.  

For the past four years, Maxilivres had EUR50.84 million in
accumulated losses and EUR17.13 million in operating deficit.  
In 2005, Maxilivres had EUR38.52 million in sales, lower than
EUR45.5 million in 2003, when the company last released its
results, Les Echos says.


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


AQUA SOCIETY: Posts US$1 Million Net Loss in Second Quarter 2006
----------------------------------------------------------------
Aqua Society Inc. filed its second fiscal quarter financial
statements for the three months ended March 31, 2006, with the
Securities and Exchange Commission on June 23.

The Company reported a US$1,161,943 net loss on US$1,023,827 of
revenues for the three months ended March 31, 2006, compared to
a US$624,773 net loss with zero revenues for the same period
last year.

The Company's March 31 balance sheet showed US$3,129,497 in
total assets, Us$2,652,659 in total liabilities, and US$476,838
in total stockholders' equity.

Full-text copies of the Company's second fiscal quarter
financial statements for the three months ended March 31, 2006,
are available for free at http://ResearchArchives.com/t/s?c2a  

                       Going Concern Doubt

As reported in the Troubled Company Reporter on March 29,
Amisano Hanson expressed substantial doubt about Aqua Society's
ability to continue as a going concern after auditing the
Company's financial statements for the years ended Sept. 30,
2005, and 2004.  The auditing firm pointed to the Company's
uncertainty in raising capital from stockholders or other
sources to sustain operations and uncertainty in obtaining
necessary financing to meet its obligations and repay its
liabilities arising from normal business operations when they
come due.

Headquartered in Herten, Germany, Aqua Society, Inc., designs
and develops applied technologies and provides consulting
services in the areas of heating, ventilation, air conditioning,
refrigeration, water purification, waste water treatment and
energy.


BRENNTAG LUXCO: Moody's Affirms B2 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family
rating at Brenntag Luxco SCA, the B2 rating on the existing
senior secured bank facilities and the B3 rating on second lien
facility, and assigned a B2 rating to EUR 390 million in new
senior secured facilities raised at Brenntag Holding GmbH & Co
KG and its subsidiaries.  The outlook is stable.

The rating action followed Brenntag's decision to acquire
leading chemical distributors in the U.K. and in Switzerland and
to raise additional senior facilities to fund the purchase
price, as well as to finance future growth.  The acquisitions
will allow Brenntag to establish its leadership in the two
European markets, while target companies are expected to
continue to generate stable EBITDA and cash flows that should
allow Brenntag to maintain consolidated leverage metrics broadly
in line with the expectations at the time of the last
refinancing.

The affirmation of the ratings reflects Brenntag's strong
performance in 2005 and 1Q2006 and stable growth outlook for
2006 supported by the recent acquisitions, as well as strong
pricing environment.

Moody's notes significant absolute amount of indebtedness
carried by Brenntag, which is further increased by the new
acquisitions, as well as likelihood of further debt-supported
acquisitions.  Moody's estimates that following the new
acquisitions, Brenntag's leverage will be slightly above 6x on a
Total Debt/EBITDA basis; Debt/Capitalization at 98% will also
remain high.  Moody's further notes scarce de-leveraging
opportunities available to Brenntag in the immediate future,
particularly when related to its FCF.

The affirmation of the ratings and the stable outlook further
reflect the expectation that in 2006-2007 the company will
maintain on a consolidated basis its EBITDA margins and will
continue generating cash flows to allow FFO/Interest to remain
sustainably at or above 2.0x.  Should Brenntag experience
deterioration in its financial performance, leading to Total
Debt/EBITDA trending towards x6.5 times or resulting in negative
FCF generation, the ratings may be reviewed downwards.

Ratings affected:

Brenntag Luxco SCA

   -- Corporate Family Rating: B2

Brenntag Holding GmbH & Co KG and its subsidiaries

   -- Senior Secured Facilities: B2; and
   -- Second Lien Facility: B3.

Headquartered in Muelheim, Germany, Brenntag is a leading
distributor of industrial and specialty chemicals that in 2005
generated consolidated sales of approximately EUR5.2 billion
(EUR1.5 billion in 1Q 2006) and EBITDA of EUR301 million (EUR87
million in 1Q 2006).


IGS INGENIEURGESELLSCHAFT: Claims Registration Ends July 10
-----------------------------------------------------------
Creditors of IGS Ingenieurgesellschaft fuer Stoffstrom-
Management mbH have until July 10 to register their claims with
court-appointed provisional administrator Wolfgang Koehler.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on Aug. 21, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Arnsberg
         Hall 328         
         Eichholzstrasse 4
         59821 Arnsberg, Germany

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

The District Court of Arnsberg opened bankruptcy proceedings
against IGS Ingenieurgesellschaft fuer Stoffstrom-Management mbH
on June 6.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         IGS Ingenieurgesellschaft fuer
         Stoffstrom-Management mbH
         Hohnekirchhof 5
         59494 Soest, Germany

         Attn: Patrick Deyerl, Manager
         Goswin Schoenberg Way 7
         59494 Soest, Germany

The administrator can be contacted at:

         Dr. Wolfgang Kohler
         Marker Route 22
         59555 Lippstadt, Germany
         Tel: 02941-979850


INFOMATEC AG: Unveils Recovery Plan to End Insolvency
-----------------------------------------------------
Dr. Waibel & Kollegen has completed a restructuring plan for
Infomatec AG allowing the Debtor to inch closer to ending its
insolvency proceedings.

The International Investor Group is currently arranging the
necessary funding to implement the plan, to be paid up on an
escrow account.

The Debtor believes that creditors will vote on the plan.  Thus,
it will soon be in a position to restart its business operations
and successfully emerge from the insolvency status.

The Investor Group has also proposed to reintegrate the Debtor's
earlier spun off segments in the current business activities,
particularly the retail departments.  

Infomatec will ask shareholders to approve the plan and decide
on the group's future business activities during an
extraordinary shareholders' meeting, which is yet to be
scheduled.

Headquartered in Gersthofen, Germany, Infomatec AG (G.IFO) --
http://www.infomatec.de/-- develops and markets software  
technology for industrial customers.  The group offers complete
service solutions, providing customized software plus necessary
hardware, training and after sales service.

Infomatec filed for insolvency proceedings in May 2001 due to
inadequate cash.  The company's financial difficulties became
apparent as the Neuer Markt lost more than 80% of its value and
fell out of favor with many investors.         


JACKEL GMBH: Creditors' Meeting Slated for July 19
--------------------------------------------------
The court-appointed provisional administrator for Jackel GmbH,
Ruediger Wienberg, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 9:25
a.m. on July 19.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:20 a.m. on Oct. 18 at the same
venue.

Creditors have until Aug. 25 to register their claims with the
court-appointed provisional administrator.

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

The Debtor can be reached at:

         Jackel GmbH
         Krokusstr. 9
         12357 Berlin, Germany

The administrator can be reached at:

         Ruediger Wienberg
         Giesebrechtstr. 1
         10629 Berlin, Germany


JOSEF VOGEL: Creditors' Meeting Slated for July 19
--------------------------------------------------
The court-appointed provisional administrator for Josef Vogel
GmbH, Hartwig Albers, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 9:15
a.m. on July 19.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:10 a.m. on Oct. 18 at the same
venue.

Creditors have until Aug. 25 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Josef Vogel GmbH on June 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Josef Vogel GmbH
         Altonaer Str. 112-114
         13581 Berlin, Germany

The administrator can be reached at:

         Hartwig Albers
         Luetzowstr. 100
         10785 Berlin, Germany


KARSTADTQUELLE AG: Workers Threaten to Quit Jobs If Sale Closes
---------------------------------------------------------------
As reported in TCR-Europe on May 23, KarstadtQuelle AG concluded
a cooperation agreement with Li & Fung Ltd which calls for the
Hong Kong-based company to handle all global import for the
Karstadt, Quelle, neckermann.de and specialty mail order brands
as a procurement service provider.  

However, around 100 employees at KarstadQuelle (Far East) & Co.
threaten to refuse working for the company if the sale pushes
through, AFX News cites WirtschaftsWoche.  

According to the magazine, the employees cited differences in
the working conditions if they are absorbed by Li & Fung:

   * reduction in holidays from 15 days to 10 days; and
   * increase in working hours from 37 to 40.

KarstadtQuelle could lose as much as EUR150 million on the sale
if the employees quit from work, a source told WirtschaftsWoche.  

The goal of the partnership agreement is to expand Karstadt's
import volume in the future to over EUR2 billion a year.  This
will also be achieved by transferring volumes previously handled
by import companies in Germany directly to factories in Asia.

KarstadtQuelle is forecasting significant savings effects as a
result of its cooperation with Li & Fung, a reduction of
purchase prices of up to 10%, greater flexibility in procurement
processes as well as a considerable extension of terms of
payment.  The partnership with Li & Fung will make it possible
for the Group to offer its customers up to twelve collections a
year in future.  

"Among other things, we are thus anticipating a reduction of
working capital by around EUR500 million.  This is a dramatic
improvement," said CEO Thomas Middelhoff.

A further part of the agreement is the sale of KarstadtQuelle
International Services AG, with a total of 1,100 employees, to
Li & Fung Ltd.  The Li & Fung trading company has many years of
experience as a procurement partner for international department
store groups.  The company generates annual sales of
approximately EUR6 billion and buys 47% of its goods in the
People's Republic of China.

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

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

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


KL BAUFACHMARKT: Claims Registration Ends July 13
-------------------------------------------------
Creditors of KL Baufachmarkt GmbH & Co. KG have until July 13 to
register their claims with court-appointed provisional
administrator Axel Kampmann.

Creditors and other interested parties are encouraged to attend
the meeting at 11:45 a.m. on Aug. 10, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Arnsberg
         Hall 328         
         Eichholzstrasse 4
         59821 Arnsberg, Germany

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

The District Court of Arnsberg opened bankruptcy proceedings
against KL Baufachmarkt GmbH & Co. KG on June 8.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         KL Baufachmarkt GmbH & Co. KG
         Old Station 43
         57392 Schmallenberg - Bad Fredeburg, Germany

         Attn: Karin Voss, Manager
         Oststr. 30
         57392 Schmallenberg, Germany

The administrator can be contacted at:

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


KURT HUEBNER: Creditors' Meeting Slated for July 10
---------------------------------------------------
The court-appointed provisional administrator for Kurt Huebner
Fensterbau GmbH & Co. KG, Christoph Schulte-Kaubruegger, will
present his first report on the Company's insolvency proceedings
at a creditors' meeting at 9:20 a.m. on July 10.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Oct. 30 at the same
venue.

Creditors have until Aug. 31 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Kurt Huebner Fensterbau GmbH & Co. KG on
June 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Kurt Huebner Fensterbau GmbH & Co. KG
         Alt-Wittenau 92-94
         13437 Berlin, Germany

The administrator can be reached at:

         Dr. Christoph Schulte-Kaubruegger
         Genthiner Str. 48
         10785 Berlin, Germany


POLSTER GRANIT: Claims Registration Ends July 19
------------------------------------------------
Creditors of Polster Granit + Marmor GmbH have until July 19 to
register their claims with court-appointed provisional
administrator Andreas Schenk.

Creditors and other interested parties are encouraged to attend
the meeting at 1:10 p.m. on Aug. 15, 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 Hof
         Meeting Room 012
         Ground Floor
         Berliner Place 1
         95030 Hof, 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 Hof opened bankruptcy proceedings against
Polster Granit + Marmor GmbH on May 22.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Polster Granit + Marmor GmbH
         Habnith 34
         95168 Marktleuthen, Germany

The administrator can be contacted at:

         Andreas Schenk
         Franz Mehring Road 15
         08058 Zwickau, Germany
         Tel: 0375/2304341
         Fax: 0375/2304352


SANDERSTRASSE 31: Creditors' Meeting Slated for July 19
-------------------------------------------------------
The court-appointed provisional administrator for Sanderstrasse
31 Vermietungs- und Verwaltungs-GmbH & Co. Beteiligungs-KG,
Christoph Schulte-Kaubruegger, will present his first report on
the Company's insolvency proceedings at a creditors' meeting at
9:10 a.m. on July 19.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:05 a.m. on Oct. 18 at the same
venue.

Creditors have until Aug. 25 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Sanderstrasse 31 Vermietungs- und
Verwaltungs-GmbH & Co. Beteiligungs-KG on June 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Sanderstrasse 31 Vermietungs- und Verwaltungs-GmbH
         & Co. Beteiligungs-KG
         Kurfuerstenstr. 56
         10785 Berlin, Germany

The administrator can be reached at:

         Dr. Christoph Schulte-Kaubruegger
         Genthiner Str. 48
         10785 Berlin, Germany


SCHNABEL GMBH: Claims Registration Ends July 19
-----------------------------------------------
Creditors of Schnabel GmbH Automobile Chemnitz have until
July 19 to register their claims with court-appointed
provisional administrator Christoph Mathern.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Aug. 30, 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 28
         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 Schnabel GmbH Automobile Chemnitz on June 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Schnabel GmbH Automobile Chemnitz
         Attn: Andres Grobitzsch, Manager       
         Blankenburgstrasse 75
         09114 Chemnitz, Germany

The administrator can be contacted at:

         Christoph Mathern
         Kanzlerstr. 32
         09112 Chemnitz, Germany
         Web: http://www.poessl.com/


SCHOENEN FERTIGHAUS: Claims Registration Ends July 17
-----------------------------------------------------
Creditors of SCHOENEN Fertighaus Gesellschaft fuer Holzvertrieb
und Koordination mbH have until July 17 to register their claims
with court-appointed provisional administrator Siegfried
Mueller.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 a.m. on Aug. 21, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Aachen
         Meeting Room K 3
         3rd Floor
         Alter Posthof 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 SCHOENEN Fertighaus Gesellschaft fuer Holzvertrieb und
Koordination mbH on May 29.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         SCHOENEN Fertighaus Gesellschaft fuer Holzvertrieb
         und Koordination mbH
         Attn: Matthias Schoenen, Manager       
         Eldorfer Str. 2
         53945 Blankenheim, Germany

The administrator can be contacted at:

         Siegfried Mueller
         Market 10
         53894 Mechernich, Germany


WOHNANLAGE MARKNEUKIRCHEN: Claims Registration Ends July 12
-----------------------------------------------------------
Creditors of Wohnanlage Markneukirchen 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
         Wolfrathausen, 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 Markneukirchen 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 Markneukirchen 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


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


EMPORIKI BANK: Greece Expects Local Bank to Join Bidding Race
-------------------------------------------------------------
Greek Finance Minister Giorgos Alogoskoufis is expecting a local
bank to counter the offers made by French group Credit Agricole
S.A. and Bank of Cyprus for Emporiki Bank of Greece S.A., AFX
News says.

Credit Agricole, which already holds a 9% stake in Emporiki, is
eyeing to acquire the rest of the shares for EUR3.1 billion
cash, while BoC is offering to take over the holdings in a
EUR3.78 billion cash-and-stock deal, HSBC Pantelakis told AFX.

According to the report, Mr. Alogoskoufis said that BoC's offer
could only be compared to Agricole's if Emporiki's privatization
advisor will assure that the Greek government would earn
specific proceeds from the placement of the Cypriot bank's
shares.  

Jean Frederic De Leusse, a senior executive at Agricole, told
Greek daily Kathimerini that the bank's offer remains
competitive at this stage, creating no reason for the French
firm to increase its EUR23.5 per share cash bid.  Mr. Leusse
noted that the public offers and all market scenarios are
keeping Emporiki Bank's share price higher than fair value, the
paper relates.  If Agricole's bid fails, the bank would only
sell its nine-percent stake in Emporiki for cash, Mr. Leusse
told the daily.

                   About Credit Agricole S.A.

Headquartered in Paris France, Credit Agricole S.A. --
http://www.credit-agricole-sa.fr/-- is the ocuntry's largest  
cooperative banking group.  The company holds a 25% stake each
in 42 regional banks, which also owns more than half of the
group.  Agriocle offers retail and business banking, lending,
and deposit services at more than 9,000 locations throughout
France.

                      About Bank of Cyprus

Headquartered in Nicosia, Cyprus, Bank of Cyprus --
http://www.bankofcyprus.com/-- offers a wide range of financial  
products and services, which include banking services in Cyprus,
Greece, United Kingdom, Australia and Channel Islands, finance,
leasing, factoring, brokerage, fund management, general and life
insurance services in Cyprus and Greece, and investment banking
services in Cyprus.

                       About Emporiki Bank

Headquartered in Athens, Greece, Emporiki Bank of Greece S.A. --
http://www.emporiki.gr/-- offers banking services in Greece    
through a network of 374 branches, through the Emporiki Bank
branch operating in London as well as through the Group's
subsidiaries in Albania, Armenia, Bulgaria, Cyprus, Germany,
Georgia and Romania.  The extensive network of Emporiki Bank is
a major advantage for the Group in the distribution of the
products and services it offers.

                        *     *     *

As reported in TCR-Europe on June 19, Moody's Investors Service
has placed on review for possible upgrade the Baa1/Prime-2
deposit, Baa1 senior debt and Baa2 subordinated debt ratings of
Emporiki Bank of Greece SA.   

In addition, the Baa1 senior debt and Baa2 subordinated debt
ratings assigned to Emporiki Finance Group were also placed on
review for possible upgrade.  In a rating action not related to
this transaction, Moody's has confirmed Emporiki's D+ financial
strength rating.

As reported in TCR-Europe on June 15, Fitch Ratings placed
Greece-based Emporiki Bank's Issuer Default Rating of BBB,
Short-term rating of F3 and Support rating of 2 on Rating Watch
Positive.  Emporiki's Individual rating of C/D is affirmed.

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


EMPORIKI BANK: Moody's Comments on Bank of Cyprus' Bid
------------------------------------------------------
Moody's Investors Service has today commented on the Bank of
Cyprus Public Company Limited bid to acquire Emporiki Bank of
Greece, but has taken no rating action at the present time, as
it believes it is premature to assess the outcome of this
transaction.  

The rating agency said that the proposed transaction, which was
announced on June 22, is unlikely to affect BOC's Baa1/Prime-2
deposit, Baa1 senior debt and Baa2 subordinated debt ratings.  
However, depending on the form this transaction may take,
Moody's cautioned that BOC's D+ financial strength rating could
be subject to downward pressure, resulting from the possible
negative implications on its capitalization levels and the
likely challenges arising from the integration of the two
institutions.  

Emporiki's Baa1/Prime-2 deposit, Baa1 senior debt and Baa2
subordinated debt ratings, currently on review for possible
upgrade following an earlier offer by France's Credit Agricole
to acquire the bank, will remain on review on the expectation
that Emporiki will be acquired at the end of this bidding
process.

BOC has made an offer to acquire a 100% stake in Emporiki, with
a minimum acceptance level of 40%.  The offer is EUR6 per share
in cash and 3.25 BOC shares for every Emporiki share, valuing
Emporiki at EUR3.8 billion, compared to an all-cash offer of
EUR3.1 billion by Credit Agricole.  Moody's added that the offer
to acquire Emporiki is in line with BOC's strategy to further
expand its operations in Greece, in order to further diversify
its group operations and revenues, and to realize cost synergies
between its Greek and Cypriot operations.  The asset size of the
combined organization will total EUR42 billion on a pro-forma
basis, with Emporiki accounting for almost half of the aggregate
balance sheet.  BOC's management expects cost and revenue
synergies through the integration of centralized services,
common IT systems and higher cross-selling activities.

Moody's said that should the acquisition of Emporiki proceed,
BOC's debt and deposit ratings are likely to remain unchanged,
underpinned by the strength and importance of its franchise in
Cyprus, where it is the leading financial institution with
market shares of 31% and 26% of deposits and loans,
respectively.  

The expectation that the FSR could be pressured is based on:

   -- the likely impact on BOC's regulatory capital, which will
      be determined by the final stake acquired in Emporiki and
      the expected business growth of the combined group; and

   -- the execution risk from the transaction related to the
      challenges of acquiring and restructuring a bank the size
      of Emporiki and integrating its staff, given its public
      sector culture.

BOC's transaction is subject to regulatory and shareholders'
approval.  With counter-bids currently not ruled out, Moody's
will monitor the progress of this biding process and once there
are clear indications about the final outcome, it will assess
the impact of this on the ratings of Emporiki and comment
further on the potential impact on BOC's ratings.

Headquartered in Nicosia, Cyprus, Bank of Cyprus had total
assets of CYP12.08 billion (EUR22.2 billion) as of
Dec. 31, 2005.


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


SEAT PAGINE: Debt Reduction Prompts Moody's to Upgrade Ratings
--------------------------------------------------------------
Moody's Investors Service upgraded all ratings of Seat Pagine
Gialle S.p.A. by one notch prompted by the company's ongoing
operational improvements and debt reduction.  The outlook for
all ratings is stable.

Ratings affected:

Seat Pagine Gialle S.p.A.

   -- Corporate family rating upgraded to Ba3 from B1

Lighthouse International Company S.A.

   -- EUR1.3 billion 8% senior secured notes due 2014 upgraded
to B2 from B3

The upgrade of the corporate family rating to Ba3 reflects
operational improvements and material debt repayments made by
Seat since its initial rating in 2004 when the company was the
subject of a leveraged buyout from Telecom Italia.  The company,
which is the dominant directories publisher in Italy, also has a
number two position in the U.K. directories market through
Thomson Directories and is the number two player, behind
Deutsche Telekom, in the directory assistance market in Germany.

Since the LBO, the company has revamped its sales infrastructure
in Italy and made material improvements in its working capital
management such that cash flow from operations has improved from
EUR258 million in FY04 to EUR365 million in FY05.  This improved
cash flow has enabled the company to repay approximately Euro
430 million of debt since the LBO.  As of FY05, leverage has
reduced to 5.7x compared to 6.4x in FY04 and 6.9x pro forma
leverage in FY03.  The upgrade reflects Moody's expectation that
Seat will continue to pursue a strategy of de-leveraging.

Seat has recently announced that it has refinanced EUR256
million of its senior debt with a receivables securitization
program in Italy; this securitization debt will be on balance
sheet and therefore does not result in any change in the
company's leverage but does reflect the improvements made to its
working capital management and also reduces its cost of capital.

The company's rating is supported by its strong market position,
particularly in Italy and its solid profitability -- EBITDA
margins in FY05 were 45.8% - but remain constrained by a
financial profile which is still highly leveraged and which
anticipates cash outflows in 2006 for dividends as well as
increased IT and advertising expenditure.  Leverage falling
towards 4.0x times and Debt/FCF of less than 10x would create
upward pressure on the ratings.  Conversely, a reversal in the
company's de-leveraging strategy, either as a result of a debt-
funded acquisition, material increase in dividend payments or
deterioration in operating performance would place the ratings
under downward pressure.

The stable outlook reflects Seat's very strong market position
in Italy and solid number two positions in Germany and the UK;
the stable nature of the print directories business with growth
opportunities coming from internet and directory assistance
products and a profile that does not anticipate major event risk
in the form of M&A activity.

Headquartered in Turin, Seat is the number one directory
publisher in Italy with operations in the U.K., Germany and
France.  For the year ended Dec. 31, 2005, Seat generated
consolidated revenues of EUR1.425 billion.


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


AK KASKOR: Creditors Must File Claims by July 11
------------------------------------------------      
The Specialized Inter-Regional Economic Court of Mangistau
Region declared OJSC AK Kaskor insolvent on April 18.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until July 11 to submit written proofs of claim
to:

        OJSC AK Kaskor
        Building of OJSC AK Kaskor
        1st Floor
        House 1
        Micro District 2
        Aktau
        Mangistau Region
        Kazakhstan
        Tel/Fax: 8 (3292) 50-02-16


ARALSHAK: Kyzylorda Court Opens Bankruptcy Proceedings
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Aralshak on
May 4.

Proofs of claim will be accepted at:

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


BEKEN-ATA: Kyzylorda Court Starts Bankruptcy Process
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region commenced bankruptcy proceedings against LLP Beken-Ata on
April 27.

The consideration of the case will take place at 3:00 p.m. on
May 22 at:

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


FRAK DJET: Creditors Must File Claims by July 11
------------------------------------------------
The Branch of Frak Djet in Kyzylorda has declared insolvency.  
Creditors have until July 11 to submit written proofs of claim
to:

         Frak Djet
         Korkyt-Ata Str. 5
         Kyzylorda
         Kyzylorda Region
         Kazakhstan


FORGING-MECHANICAL: Proof of Claim Deadline Slated for July 11
--------------------------------------------------------------
Forging-Mechanical Plant has declared insolvency.  Creditors
have until July 11 to submit written proofs of claim to:

         Forging-Mechanical Plant
         Kosmonavtov Str. 1
         Pavlodar
         Pavlodar Region
         140000 Republic of Kazakhstan         


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

Proofs of claim will be accepted at:

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


KVANT LTD: Proof of Claim Deadline Slated for July 10
-----------------------------------------------------
The Department of the Committee on Work of the Finance Ministry
of the Republic of Kazakhstan in the Atyrau Region introduced
extrajudicial bankruptcy proceedings against LLP Kvant Ltd.  

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

         The Department of the Committee on Work of the
         Finance Ministry of the Republic of Kazakhstan
         3rd floor
         Abai Str. 10a
         Atyrau
         Atyrau region
         Kazakhstan


RER: Claims Registration Ends July 10
-------------------------------------
The Department of the Committee on Work of the Finance Ministry
of the Republic of Kazakhstan in the Atyrau Region introduced
extrajudicial bankruptcy proceedings against LLP Rer.

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

         The Department of the Committee on Work of the
         Finance Ministry of the Republic of Kazakhstan
         3rd floor
         Abai Str. 10a
         Atyrau
         Atyrau region
         Kazakhstan


RO-NU: Claims Registration Ends July 10
---------------------------------------
The Department of the Committee on Work of the Finance Ministry
of the Republic of Kazakhstan in the Atyrau Region introduced
extrajudicial bankruptcy proceedings against LLP Ro-Nu.  

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

         The Department of the Committee on Work of the
         Finance Ministry of the Republic of Kazakhstan
         3rd floor
         Abai Str. 10a
         Atyrau
         Atyrau region
         Kazakhstan


TAGZYM: Creditors' Claims Due July 10
-------------------------------------
The Department of the Committee on Work of the Finance Ministry
of the Republic of Kazakhstan in the Atyrau Region introduced
extrajudicial bankruptcy proceedings against LLP Tagzym.  

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

         The Department of the Committee on Work of the
         Finance Ministry of the Republic of Kazakhstan
         3rd floor
         Abai Str. 10a
         Atyrau
         Atyrau region
         Kazakhstan


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


LIGHTHOUSE INT'L: Moody's Lifts EUR1.3-Bln Debt Ratings to B2
-------------------------------------------------------------
Moody's Investors Service upgraded all ratings of Seat Pagine
Gialle S.p.A. by one notch prompted by the company's ongoing
operational improvements and debt reduction.  The outlook for
all ratings is stable.

Ratings affected:

Seat Pagine Gialle S.p.A.

   -- Corporate family rating upgraded to Ba3 from B1

Lighthouse International Company S.A.

   -- EUR1.3 billion 8% senior secured notes due 2014 upgraded
to B2 from B3

The upgrade of the corporate family rating to Ba3 reflects
operational improvements and material debt repayments made by
Seat since its initial rating in 2004 when the company was the
subject of a leveraged buyout from Telecom Italia.  The company,
which is the dominant directories publisher in Italy, also has a
number two position in the U.K. directories market through
Thomson Directories and is the number two player, behind
Deutsche Telekom, in the directory assistance market in Germany.

Since the LBO, the company has revamped its sales infrastructure
in Italy and made material improvements in its working capital
management such that cash flow from operations has improved from
EUR258 million in FY04 to EUR365 million in FY05.  This improved
cash flow has enabled the company to repay approximately Euro
430 million of debt since the LBO.  As of FY05, leverage has
reduced to 5.7x compared to 6.4x in FY04 and 6.9x pro forma
leverage in FY03.  The upgrade reflects Moody's expectation that
Seat will continue to pursue a strategy of de-leveraging.

Seat has recently announced that it has refinanced EUR256
million of its senior debt with a receivables securitization
program in Italy; this securitization debt will be on balance
sheet and therefore does not result in any change in the
company's leverage but does reflect the improvements made to its
working capital management and also reduces its cost of capital.

The company's rating is supported by its strong market position,
particularly in Italy and its solid profitability -- EBITDA
margins in FY05 were 45.8% - but remain constrained by a
financial profile which is still highly leveraged and which
anticipates cash outflows in 2006 for dividends as well as
increased IT and advertising expenditure.  Leverage falling
towards 4.0x times and Debt/FCF of less than 10x would create
upward pressure on the ratings.  Conversely, a reversal in the
company's de-leveraging strategy, either as a result of a debt-
funded acquisition, material increase in dividend payments or
deterioration in operating performance would place the ratings
under downward pressure.

The stable outlook reflects Seat's very strong market position
in Italy and solid number two positions in Germany and the UK;
the stable nature of the print directories business with growth
opportunities coming from internet and directory assistance
products and a profile that does not anticipate major event risk
in the form of M&A activity.

Headquartered in Turin, Seat is the number one directory
publisher in Italy with operations in the U.K., Germany and
France.  For the year ended Dec. 31, 2005, Seat generated
consolidated revenues of EUR1,425 million.


NORTEL NETWORKS: Eyes Pension Plan Changes & 1,100 Job Cuts
-----------------------------------------------------------
Nortel Networks Corp. plans to amend its North American pension
programs and reduce 1,100 jobs worldwide in order to achieve a
targeted operating-margin expansion in excess of US$1.5 billion
in 2008.

"I am confident in the progress we are making in turning around
Nortel and recreating a great company," Mike Zafirovski, Nortel
president and CEO, said.  "In the past few months we've taken
important steps, some with near-term impact, and others with
longer-term benefits, toward transforming our operations to be
more efficient and customer-focused."

Key Company actions include:

   * Pension Plan: changes to control costs and align with
     industry-benchmarked companies.  These changes are expected
     to result in an estimated annual reduction of US$100
     million in pension expense starting in 2008 and savings of
     more than US$400 million in cash by the year 2012.  This
     will reduce the Company's unfunded pension liability
     deficit by US$400 million.

   * Global Operations: initiatives designed to create a world-
     class Operations organization to speed customer
     responsiveness and to instill process excellence while
     reducing costs.

   * Organizational Simplification: flatten the organization and
     shift to a culture marked by agility and accountability.

The latter two actions result in a reduction of 1,900 positions
globally and the creation of approximately 800 new positions in
Operations Centers of Excellence.  Total cost, both the charge
to the income statement and cash, for the Global Operations
restructuring and the organizational simplification, is
estimated to be US$100 million over the next two years, of which
$35 million of the charge to the income statement is expected to
be taken in the second quarter of 2006.  Nortel expects to incur
cash cost equally over a two-year period.  Annual savings from
these actions is targeted to be US$100 million in 2007 and
US$175 million by 2008.

                      Pension Plan Changes

Beginning Jan. 1, 2008, Nortel will introduce key changes to the
current Nortel Capital Accumulation and Retirement Program in
the United States and Canada.  Employees currently in defined
benefit pension plans will be moved to defined contribution
retirement programs.  Employees already in defined contribution
programs will stay in defined contribution programs.  The
defined contribution programs will have a new formula, which is
comprised of an automatic employer contribution equal to two
percent of employees' eligible earnings.  In addition, Nortel
will provide a 50% match on employee contributions of up to 6%
of eligible earnings, for a total maximum five percent employer
contribution.

Current post-retirement healthcare benefits will be eliminated
for employees who are not age 50 with five years of service on
July 1.  All future retirees who do not meet this age and
service criteria will continue to have access to healthcare
coverage at their own cost through Nortel's preferred provider,
given they meet eligibility requirements when they retire.

These changes will not go into effect for 18 months.  Between
now and then employees will continue to earn benefits under the
current plans.  Also, employees will keep their rights to all
benefits already earned in their current plans.  Those benefits
will be available when they retire or leave Nortel.  The Company
will provide financial education and modeling assistance to help
employees through the transition.

Current retirees in both the U.S. and Canada will not see any
change to their pension income benefit.  Some retirees in the
U.S. will see a change in the cost-sharing formula for medical
benefits.

                  Organizational Simplification

In addition to the actions taken to create a world-class
Operations organization, Nortel will eliminate 350 middle
management positions throughout the company and through business
unit efficiencies 350 additional positions globally.

                      About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation --
http://www.nortel.com/-- is a recognized leader in delivering
communications capabilities that enhance the human experience,
ignite and power global commerce, and secure and protect the
world's most critical information.  Serving both service
provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice
over IP, multimedia services and applications, and wireless
broadband designed to help people solve the world's greatest
challenges.  Nortel does business in more than 150 countries.

                          *     *     *

As reported in the Troubled Company Reporter on June 20, Moody's
Investors Service affirmed the B3 corporate family rating of
Nortel; assigned a B3 rating to the proposed US$2 billion senior
note issue; downgraded the US$200 million 6.875% Senior Notes
due 2023 and revised the outlook to stable from negative.

Standard & Poor's Ratings Services removed its ratings on
Brampton, Ontario-based Nortel Networks Limited from CreditWatch
with negative implications, where they were placed March 10,
2006, following a ratings review.

At the same time, Standard & Poor's affirmed its 'B-' long-term
and 'B-2' short-term corporate credit ratings on the company,
and assigned its 'B-' senior unsecured debt rating to the
company's proposed US$2 billion notes.  The outlook is stable.


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


LEOPARD CLO: Moody's Assigns Ba3 Rating to Class E Notes
--------------------------------------------------------  
Moody's assigned these ratings to the notes issued by Leopard
CLO IV B.V., a Dutch special purpose company:

   -- EUR262,500,000 Class A Senior Secured Floating Rate Notes
due 2022: Aaa;

   -- EUR26,250,000 Class B Senior Secured Floating Rate Notes
due 2022: Aa2;

   -- EUR15,500,000 Class C1 Senior Secured Deferrable Floating
Rate Notes due 2022: A2;

   -- EUR7,000,000 Class C2 Senior Secured Deferrable Fixed Rate
Notes due 2022: A2;

   -- EUR20,650,000 Class D Senior Secured Deferrable Floating
Rate Notes due 2022: Baa3;  

   -- EUR11,250,000 Class E Senior Secured Deferrable Floating
Rate Notes due 2022: Ba3;

   -- EUR10,000,000 Class O Combination Notes due 2022: Aa2; and

   -- EUR6,000,000 Class W Combination Notes due 2022: Baa1.

The ratings address the expected loss posed to investors by the
legal final maturity date in February 2022.  The rating assigned
by Moody's to the Class O Combination Notes addresses the
expected loss posed to investors by the legal final maturity
date in February 2022 as a proportion of the Rated Balance in
respect of such Class O Combination Notes, where the Rated
Balance is equal, at any time, to the principal amount of the
Class O Combination Notes on the Closing Date minus the
aggregate of all payments made from the Closing Date to such
date, either through interest or principal payments to the Class
O Combination Notes.

The rating assigned by Moody's to the Class W Combination Notes
addresses the expected loss posed to investors by the legal
final maturity date in February 2022 as a proportion of the
Rated Balance and the Rated Coupon, where the Rated Balance is
equal, at any time, to the principal amount of the Class W
Combination Notes on the Closing Date plus a Rated Coupon of
0.25% per annum of the outstanding Rated Balance minus the
aggregate of all payments, in excess of the 0.25% annual coupon,
made from the Closing Date to such date, either through interest
or principal payments to the Class W Combination Notes.

These ratings are based upon:

   -- an assessment of the credit quality and of the
diversification of the assets to be included in the
portfolio;

   -- an assessment of the eligibility criteria, reinvestment
criteria and portfolio limits applicable to the future
additions to the portfolio;

   -- the overcollateralization of the notes;

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

   -- the currency swap transactions, which insulate Leopard CLO
IV B.V. from the volatility of foreign currency exchange
rates for hedged non-Euro obligations;

   -- the expertise of M&G Investment Management Limited in the
management of leveraged finance portfolios; and

   -- the legal and structural integrity of the transaction.

This transaction is a high yield collateralized loan obligation
related to a EUR375,000,000 portfolio comprised primarily of
European senior and mezzanine loans.  The portfolio is dynamic
and M&G Investment Management Limited will provide portfolio
management services to Leopard CLO IV B.V. in respect thereof.
The portfolio was approximately 65% ramped-up at closing, and is
expected to be fully ramped-up within one year of closing,
subject to compliance with the eligibility criteria and
portfolio guidelines including, amongst other tests, the
diversity score, the weighted average rating factor, the
weighted average recovery rate, the weighted average spread and
the weighted average life of the assets in the portfolio.

This transaction was arranged by The Royal Bank of Scotland.


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


NETIA SA: Court Partially Cancels Outstanding License Fee Dues
--------------------------------------------------------------
The Regionalne Sieci Telekomunikacyjne El-Net SA, Netia SA's
subsidiary, received the decision of the Polish Minister of
Transportation on June 26.  

The decision cancels part of outstanding obligations including:

   -- EUR9.17 million in local license fees, and
   -- PLN3.56 million in prolongation fees,

in exchange for investments in the telecommunications
infrastructure incurred in years 2004 and 2005.

On March 21, the company obtained a decision from the Polish
Minister of Transportation and Construction canceling EUR20.9
million of license fee obligations and PLN8.6 million of
prolongation fees, with regard to cancellation of outstanding
license fee obligations of El-Net.

Headquartered in Warsaw, Poland, Netia S.A. (B+/Stable/) --
http://netia.pl/-- is an alternative fixed-line  
telecommunications operator in Poland.  It operates on the basis
of its own, state-of-the-art fiber-optic backbone network that
connects the largest Polish cities as well as its local access
networks.  Netia provides a broad range of telecommunications
services, including voice, data and network wholesale services.


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


ABINSKIY FURNITURE: Court Names V. Osadchuk Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Krasnodar Region appointed Mr. V.
Osadchuk as insolvency manager for OJSC Furniture Wood
Processing Combine Abinskiy (TIN 2323018908).  He can be
reached:

         V. Osadchuk
         Office 307
         Kolkhoznaya Str. 3
         350042 Krasnodar
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-32-38972/2005-44/504B.

The Debtor can be reached at:

         OJSC Furniture Wood Processing Combine Abinskiy
         Vokzalnaya Str. 16
         Abinsk
         Krasnodar Region
         Russia


ADYGEYA-OIL-GAS: Y. Bidanok to Manage Insolvency Assets
-------------------------------------------------------
The Arbitration Court of Adygeya Republic appointed Mr. Y.
Bidanok as insolvency manager for LLC Adygeya-Oil-Gas.  He can
be reached at:

         Y. Bidanok
         Shovgenova Str. 126
         Maykop
         Adygeya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A01-B-1871-2005-8.

The Debtor can be reached at:

         LLC Adygeya-Oil-Gas
         Pionerskaya Str. 273
         Maykop
         Adygeya Republic
         Russia


BELGOROD-BOOK: Court Appoints V. Krotov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Belgorod Region appointed Mr. V. Krotov
as insolvency manager for OJSC Belgorod-Book (TIN 3123000581).  
He can be reached at:

         V. Krotov
         Room 23
         Promyshlennyj Proezd 3
         308023 Belgorod
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A08-1455/06-2B.

The Debtor can be reached at:

         OJSC Belgorod-Book
         B. Khmelnitskogo Str. 132A
         Belgorod Region
         Russia


BELOZERSKIY WINE: Bankruptcy Hearing Slated for July 13
-------------------------------------------------------
The Arbitration Court of Vologda Region will convene on July 13
to hear the bankruptcy supervision procedure on OJSC Belozerskiy
Wine Making Factory (TIN 3503004208).  The case is docketed
under Case No. A13-366/2006-25.

The Temporary Insolvency Manager is:

         Mr. V. Goryachkin
         Office 205
         Vetoshkina Str. 36
         160035 Vologda
         Russia

The Debtor can be reached at:

         OJSC Belozerskiy Wine Making Factory
         Antushevo
         Belozerskiy Region
         Vologda Region
         Russia


BUZDYAKSKIY AGRO-SERVICE: Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Bashkortostan Republic has commenced
bankruptcy supervision procedure on OJSC Buzdyakskiy Agro-
Service (TIN 0216002949).  The case was docketed under Case No.
A7 07-5955/06-G-MOG.

The Temporary Insolvency Manager is:

         Mr. E. Ivanov
         Apartment 9
         Oktyabrya Str. 89/3
         Ufa
         450057 Bashkortostan Republic
         Russia         

The Debtor can be reached at:

         OJSC Buzdyakskiy Agro-Service
         Vishnevaya Str. 9.
         Buznyak
         452710 Bashkortostan Republic
         Russia


EASTERN FEED: Bankruptcy Hearing Slated for Aug. 22
---------------------------------------------------
The Arbitration Court of Khabarovsk Region will convene at 10:00
a.m. on Aug. 22 to hear the bankruptcy supervision procedure on
LLC Eastern Feed Mill (Case No. A73-19088/2005-39).

The Temporary Insolvency Manager is:

         Mr. A. Karlin
         Apartment 157
         Vladivostok
         Nevalskogo Str. 3
         690013 Primorye Region
         Russia

The Debtor can be reached at:

         LLC Eastern Feed Mill
         Oktyabrskaya Str. 42
         Bagan
         632770 Khabarovsk Region
         Russia


EVRAZ GROUP: Reelects Alexander Frolov as Board Chairman
--------------------------------------------------------
Evraz Group S.A.'s Board of Directors resolved to reappoint
Valery I. Khoroshkovsky as the managing director of the company
and re-elect Alexander V. Frolov as the Chairman of the Board of
Directors of the Company, in pursuance with the decision taken
at the annual shareholders' meeting on June 20.

                      About the Company

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

                        *     *     *

As reported by TCR-Europe on June 22, Fitch Ratings affirmed
Luxembourg-based Evraz Group S.A.'s Issuer Default and senior
unsecured ratings of BB- and its Short-term B rating.  

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


KUZNETSKIY BRIDGE: Bankruptcy Hearing Slated for Aug. 10
--------------------------------------------------------
The Arbitration Court of Kemerovo Region will covene on Aug. 10
to hear the bankruptcy supervision procedure on CJSC Kuznetskiy
Bridge.  The case is docketed under Case No. A27-4253/2006-4.

The Temporary Insolvency Manager is:

         Ms. N. Zimina
         Shaturskaya Str. 1.
         650021 Kemerovo
         Russia

The Debtor can be reached at:

         CJSC Kuznetskiy Bridge
         Krasnaya Str. 4
         650099 Kemerovo


NOVATEK: Subsidiaries Sell 20% Equity Stake to Gazprom
------------------------------------------------------
OAO Novatek disclosed that its main shareholders, OOO Levit and
SWGI Growth Fund (Cyprus) Limited, have signed a preliminary
agreement to sell an equity interest in Novatek in a size not
more than 20% of the Company's outstanding shares to ??? Gazprom
represented by ZGG GmbH at market value.  

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, Greg Walters and Geoffrey
Smith writes for the Wall Street Journal.

The company expects to complete the transaction in August 2006.

Within this time period, the parties are to enter into a share
sale and purchase agreement and a shareholders agreement whereby
the new shareholder representing Gazprom will be granted two
seats out of eight on the Board of Directors, which in
accordance with the Company's existing Charter provides the new
shareholder representing Gazprom with sufficient rights to
participate in managing the Company's activity.  The
shareholders agreement will stipulate that an equity stake owned
by Gazprom and its affiliated entities should not exceed at any
time 19.9% of the Company's outstanding shares.

The parties to the preliminary agreement contemplate further
expansion of Novatek's activities in developing its existing
fields and growing its hydrocarbon resource base, coordination
of marketing natural gas to the domestic market and an
opportunity for Novatek to be involved in regional gasification
programs.

Novatek believes the addition of Gazprom represented by ZGG GmbH
as a strategic investor will enhance the Company's ability to
develop its hydrocarbon resource base, increase its production
targets and realize its strategic objective of maximizing
liquids processing.

                         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.

                        About Novatek

Headquartered in Moscow, OAO Novatek is Russia's second largest
gas company after state-controlled Gazprom, and the largest of
the country's independent gas producers.  

                        *     *     *

As reported in TCR-Europe on March 21, Standard & Poor's Ratings
Services assigned its 'BB-' long-term corporate credit rating to
OAO Novatek, Russia's largest independent gas producer.  S&P
said the outlook is stable.


ORE MINING: Court Names P. Solunin as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Irkutsk Region appointed Mr. P. Solunin
as insolvency manager for CJSC Ore Mining Company Centre.  He
can be reached at:

         P. Solunin
         Post User Box 233
         664025 Irkutsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A19-8423/06-34.

The Debtor can be reached at:

         CJSC Ore Mining Company Centre
         Post User Box 62
         Bodaybo
         666910 Irkutsk Region
         Russia


OZERSKOYE: Bankruptcy Hearing Slated for July 26
------------------------------------------------
The Arbitration Court of Kemerovo Region will convene on July 26
to hear the bankruptcy supervision procedure on OJSC Ozerskoye.  
The case was docketed under Case No. A27-5515/2006-4.  

The Temporary Insolvency Manager is:

         Mr. A. Alyoshin
         Post User Box 2254
         650070 Kemerovo Region
         Russia

The Debtor can be reached at:

         OJSC Ozerskoye
         Tsentralnaya Str. 61
         Ozerki
         Promyshlennyj Region
         652373 Kemerovo Region
         Russia


SEVERSTAL: Arcelor's Top Investor to Vote for Mittal Merger
-----------------------------------------------------------
Carlo Tassara International is supporting the merger between
steelmakers Arcelor S.A. and Mittal Steel, slimming OAO
Severstal's chances of taking over the Luxembourg group, Reuters
says.

"We have taken the decision to vote against the Severstal deal
and we are willing to accept the Mittal offer," Helene Zaleski,
a Carlo Tassara International board member, was quoted by
Reuters as saying.  Carlo Tassara, owned by French tycoon Romain
Zaleski, holds a 7.79% stake in Arcelor.

Arcelor's shareholders will convene on June 30 to vote whether
to merge with Mittal or Severstal.  Arcelor Board of Directors
recently consented to an improved offer by Mittal Steel,
ditching a pre-signed merger agreement with Russian group OAO
Severstal.


Arcelor had been resisting Mittal's EUR23-billion offer since
January, saying the Indian company undervalued its assets.  
However, Mittal recently submitted an improved offer of EUR40.40
per share, a source privy to the matter told Reuters, valuing
Arcelor at EUR25.8 billion.  Mittal will pay 69% percent of the
amount in its own shares and 31% in cash, AFP adds.

The new company, to be named Arcelor-Mittal, would create an
empire controlling 10% of the global steel market, producing 116
million tons of crude steel and employing more than 320,000
personnel.

Arcelor had recommended a EUR13 billion merger with Severstal,
saying that an Arcelor-Severtal fusion would be more efficient
and productive than an Arcelor-Mittal union.  The planned
merger, however, received stiff opposition from some Arcelor
shareholders, who had expressed concerns that Alexei Mordashov,
Severstal's majority owner, would end up controlling the merged
company.  Severstal had improved the terms of the proposed
merger, opting to own 25% of the new company rather than 32% as
previously agreed.

Severstal said it is "now reviewing all of [its] options," which
could include a legal action for breach of contract.

                        About Arcelor

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

                        About Severstal

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

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

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

                        *     *     *

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.

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.  

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

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

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


YAROSLAVSKOYE: Court Names S. Vodopyanov Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Krasnodar Region appointed Mr. S.
Vodopyanov as insolvency manager for CJSC Agricultural
Enterprise Yaroslavskoye.  He can be reached at:

         S. Vodopyanov
         Uralskaya Str. 134
         350059 Krasnodar
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-32-29275/2004-37/203-B.

The Debtor can be reached at:

         CJSC Agricultural Enterprise Yaroslavskoye
         F. Engelsa Str. 106
         Yaroslavskaya St.
         Mostovskiy Region
         352580 Krasnodar Region
         Russia


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


BANKINTER 2: Moody's Junks EUR14.6 Million Series E Notes
---------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
the debt to be issued by BANKINTER 2 PYME, FTA:

   -- EUR49.0 million Series A1 notes: Aaa;
   -- EUR682.0 million Series A2 notes: Aaa;
   -- EUR16.2 million Series B notes: Aa3;
   -- EUR27.5 million Series C notes: Baa2;
   -- EUR10.7 million Series D notes: Ba3; and
   -- EUR14.6 million Series E notes: C.

BANKINTER 2 PYME, FTA is a securitization of loans to small- and
medium-sized enterprises (SMEs) carried out by Bankinter outside
of the scope of any of the Spanish guarantee programs for SME
loan-backed deals.

Strong features within this deal include among others:

   -- extensive historical default and recovery information
provided by Bankinter;

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

   -- good diversification of the pool in terms of geography;

   -- the fact that the management company will elect the loans
from the provisional pool that will result in the least
concentrated securitized pool; and

   -- the good performance of Bankinter's previous SME deal.

Weaker features include:

   -- the limited amount of spread in the transaction;

   -- the pro-rata amortization of the notes; and

   -- the negative impact of the interest deferral trigger on
      the subordinated series.  

These increased risks were reflected in the credit enhancement
calculation.

The provisional pool of underlying assets comprised, as of
May 2006, a portfolio of 5,186 loans granted to 4,690 borrowers,
all of which are Spanish enterprises.  The loans have been
originated between 1997 and October 2005, with a weighted
average seasoning of 2.2 years and a weighted average remaining
life of 11.1 years.  The weighted average interest rate is
3.28%, with all the loans linked to floating reference rates.
81.5% of the outstanding of the portfolio is secured by a first-
lien mortgage guarantee over different type of properties, with
a weighted average loan to value equal to 52.6%. The pool is
well diversified in terms of geography, given the nationwide
presence of the originator, and is around 40% concentrated in
the buildings and real estate sector according to Moody's
industry classification.  At closing, there will be no loans
more than 30 days in arrears.

Moody's based the ratings primarily on:

   -- an evaluation of the underlying portfolio of loans;

   -- historical performance information;

   -- the swap agreement hedging the interest rate risk;

   -- the credit enhancement provided through the GIC accounts,
the pool spread, the reserve fund and the subordination of
the notes; and

   -- the legal and structural integrity of the transaction.

The ratings address the expected loss posed to investors by the
legal final maturity May 16, 2043.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par with respect to the Series A1, A2,
B, C and D notes, and for ultimate payment of interest and
principal at par with respect to the Series E notes, on or
before the final legal maturity date.  Moody's ratings address
only the credit risks associated with the transaction.  Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.


CONSUMO BANCAJA: Moody's Junks EUR13.2 Million Series D Notes
-------------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
the debt to be issued by Consumo Bancaja 1, Fondo de
Titulizacion de Activos:

   -- EUR566.1 million Series A notes: Aaa;
   -- EUR14.7 million Series B notes: Aa2;
   -- EUR19.2 million Series C notes: A2; and
   -- EUR13.2 million Series D notes: Caa2.

Consumo Bancaja 1, FTA is the first consumer loan transaction
carried out by Caja de Ahorros de Valencia, Castellon y
Alicante.

Strong features within this deal include among others:

   -- a 12-month artificial write-off mechanism;

   -- a granular securitized pool; and

   -- extensive historical default and recovery information
provided by Bancaja.

Weaker features include:

   -- a revolving period of up to eight quarters;

   -- the negative impact of the interest deferral trigger on
the subordinated series;

   -- geographical concentration in the region of Valencia; and

   -- interest rate risk derived from the floating-rate loans
      only partially hedged.

These increased risks were reflected in the credit enhancement
calculation.

The provisional pool of underlying assets comprised, as of
March 31, a portfolio of 91,114 loans granted to 88,203
borrowers resident in Spain for the purpose of financing
consumer goods and services.  The loans have been originated
between 1999 and March 2006, with a weighted average seasoning
of 1.2 years and a weighted average remaining life of 4.15
years.  The weighted average interest rate is 6.5%, with 33% of
the loans having a fixed interest rate and the remaining 67%
being floating-rate loans.  100% of the loans hold a personal
guarantee.  Geographically the pool is concentrated in the
region of Valencia, Catalonia and Madrid.  At closing, there
will be no loans more than 30 days in arrears.

Moody's based the ratings primarily on:

   -- an evaluation of the underlying portfolio of loans;

   -- the strict eligibility criteria with which any receivable
to be included in the securitized pool must comply;

   -- the early amortization triggers put in place to stop the
purchase of additional loans;

   -- historical performance information;

   -- the swap agreements partially hedging the interest rate
risk;

   -- the credit enhancement provided through the GIC
account, the pool spread, the reserve fund and the
subordination of the notes; and

   -- the legal and structural integrity of the transaction.

The ratings address the expected loss posed to investors by the
legal final maturity May 26, 2020.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par with respect to Series A, B and C,
and for ultimate payment of interest and principal at par with
respect to Series D notes, on or before the final legal maturity
date.  Moody's ratings address only the credit risks associated
with the transaction.  Other non-credit risks have not been
addressed, but may have a significant effect on yield to
investors.

Moody's will monitor this transaction on an ongoing basis.


HIPOCAT 10: S&P Rates EUR25.5-Mln Class D Notes at CCC-
-------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR1.525 billion residential mortgage-
backed floating-rate notes to be issued by Hipocat 10, Fondo de
Titulizacion de Activos, an SPE.
  
This is the 10th securitization of Caixa Catalunya's residential
mortgage portfolio.
  
The collateral for this issuance comprises solely flexible
loans, which allow borrowers to take payment holidays and make
further drawdowns.  However, additional drawdowns are not
automatically granted, and must meet Caixa Catalunya's
requirements and credit approval.
  
The transaction mixes principal and interest from the mortgages
to pay interest and principal due under the notes. To protect
the holders of the more senior notes under certain stress
scenarios, the priority of payments features a trigger based on
the accumulated level of defaults.  If the trigger is breached,
a portion of the payment of subordinated interest is moved to a
more subordinated position in the priority of payments.  In
addition, the transaction features a write-off mechanism where
principal amortization is accelerated by the amount of loans
over 18 months past due.
  
Compared to the Hipocat 9 transaction, Hipocat 10 features a
credit line, provided by Calyon, which will be the higher of
EUR101 million, and the outstanding balance of the class A4
notes minus the amounts retained for its amortization.  The
credit line will be available from the creation of the Hipocat
10 securitization fondo until the legal maturity of the class A4
notes, which falls after the A1 notes.  The credit line will be
used solely to proceed to the amortization of the class A1 and
A4 notes if needed.  This feature is previously unheard of in
Spanish mortgage securitization and has been proposed for the
first time.
  
                          Ratings List
          Hipocat 10, Fondo de Titulizacion de Activos
EUR1.525 Billion Residential Mortgage-Backed Floating-Rate Notes
            
            Class          Prelim.        Prelim.
                           rating         amount (Mil. EUR)
            -----          ------         ------
             A1             AAA           160.0
             A2             AAA           733.4
             A3             AAA           300.0
             A4             AAA           200.0
             B              A              54.8
             C              BBB            51.8
             D              CCC-           25.5


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


ARAP TURK: Fitch Affirms Long-Term Foreign & Local Currency at B
----------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Arap Turk Bankasi's Long-
term foreign and local currency Issuer Default ratings at B.  

At the same time, the agency affirmed the bank's other ratings
at Short-term foreign and local currency B, Individual D,
Support 5 and National Long-term BBB.  The Outlook on all Long-
term ratings is Stable.

The Long-term, Short-term and Individual ratings reflect ATB's
high degree of reliance on the main shareholder for funding and
excessive, albeit decreasing, dependence on government
securities for profits.  These factors are balanced by its
strong capitalization and consistently improving asset quality.

As part of its strategy, ATB continued to increase cash loans,
to 33% of assets at end-2005 from 30% at end-2004.  The bank
also extends non-cash loans because of its trade finance
activities throughout the Middle East and North Africa.

Non-performing loans decreased to 5.3% of gross loans at end-
2005 while reserve coverage was maintained at 100%.  Its
substantial government securities portfolio, that is risk-
weighted at zero respectively, overstates ATB's Tier 1 and total
capital ratios of 38.4% and 45.3%.  However, capitalization is
considered adequate.

ATB was established in 1977.  Its shareholders include Libyan
Arab Foreign Bank, Kuwait Investment Co. and three Turkish
banks.  The bank has a designated mission of supporting trade
transactions within its designated region, providing import and
export trade finance to local and international companies in
Turkey and MENA.


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


AGRO: Kyiv Court Names S. Gritsay to Liquidate Assets
-----------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Gritsay as
Liquidator/Insolvency Manager for LLC AGRO (code EDRPOU
30869490).  He can be reached at:

         S. Gritsay
         a/b 38
         01030 Kyiv Region
         Ukraine
         Tel: 8 (044) 236-11-17

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 12.  The case is docketed
under Case No. 91/11 b-06.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Agro
         Frunze Str. 49
         Ivankiv
         Kyiv Region
         Ukraine


BILOGIRSK' REPAIR-TRANSPORT: Court Names Olga Pokidko Liquidator
----------------------------------------------------------------
The Economic Court of AR Krym Region appointed Olga Pokidko as
Liquidator/Insolvency Manager for OJSC Bilogirsk' Repair-
Transport Enterprise (code EDRPOU 03752025).  He can be reached
at:

         Olga Pokidko
         Bela Kuna Str. 3/72
         Simferopol
         95022 AR Krym Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 17.  The case is docketed
under Case No. 8/2655-2006.

The Economic Court of AR Krym Region is located at:

         Karl Marks Str. 18
         Simferopol
         95000 AR Krym Region
         Ukraine

The Debtor can be reached at:

         OJSC Bilogirsk' Repair-Transport Enterprise
         Lunacharskij Str. 56
         Bilogirsk
         AR Krym Region
         Ukraine


INTELMED: Court Appoints S. Gritsay as Insolvency Manager
---------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Gritsay as
Liquidator/Insolvency Manager for LLC Intelmed (code EDRPOU
22974300).  He can be reached at:

         S. Gritsay
         a/b 38
         01030 Kyiv Region
         Ukraine
         Tel: 8 (044) 236-11-17

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 13.  The case is docketed
under Case No. 43/873.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Intelmed
         Institutska Str. 25
         Kyiv Region
         Ukraine


INTERAGRO: Court Appoints S. Gritsay as Liquidator
--------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Gritsay as
Liquidator/Insolvency Manager for LLC Interagro (code EDRPOU
31071092).  He can be reached at:

         S. Gritsay
         a/b 38
         01030 Kyiv Region
         Ukraine
         Tel: 8 (044) 236-11-17

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 12.  The case is docketed
under Case No. 92/11 b-06.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Interagro
         Homenko Str. 15
         Ivankiv
         Kyiv Region
         Ukraine


ROSTOK: Court Appoints Ludmila Chmil as Insolvency Manager
----------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Ludmila
Chmil as Liquidator/Insolvency Manager for LLC Rostok (code
EDRPOU 25015853).

         Ludmila Chmil
         a/b 142
         Nikopol
         53210 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 18.  The case is docketed
under Case No. B 29/38/06.  

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Rostok
         Geroiv Chornobilya Str. 106
         Nikopol
         53221 Dnipropetrovsk Region
         Ukraine


RUBIN: Court Names Nataliya Chesnova as Insolvency Manager
----------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Nataliya
Chesnova as Liquidator/Insolvency Manager for LLC Rubin (code
EDRPOU 30912446).  She can be reached at:

         Nataliya Chesnova
         a/b 2047
         49033 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 6.  The case is docketed
under Case No. B 26/146/05.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Rubin
         Pershotravneva Str. 147
         Mikolayivka
         Petropavlivskij District
         52744 Dnipropetrovsk Region
         Ukraine


UKRBROKINVEST: Court Names S. Gritsay to Manage Assets
------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. S. Gritsay as
Liquidator/Insolvency Manager for LLC Ukrbrokinvest (code EDRPOU
25199971).  He can be reached at:

         S. Gritsay
         a/b 38
         01030 Kyiv Region
         Ukraine
         Tel: 8 (044) 236-11-17

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 17.  The case is docketed
under Case No. 25/160-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Ukrbrokinvest
         Office 210
         Artema Str. 73
         Kyiv Region
         Ukraine


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


ADVENT UNDERWRITING: S&P Assigns 2- Lloyd's Syndicate Assessment
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its interactive '2-'
high dependency Lloyd's Syndicate Assessment to U.K.-based
Advent Underwriting - Syndicate 0780.  The outlook is negative.
     
"The assessment reflects the syndicate's recent weak and
volatile operating performance, materially impacted by recent
severe hurricane losses, recent adverse development in reserves,
and the unproven nature of positive strategic changes and risk
management processes implemented to enhance prospective
earnings," said Standard & Poor's credit analyst Matthew Day.
     
Positively offsetting these are its adequate competitive
position, maintained primarily due to the benefits of operating
in the Lloyd's Market and the expected strengthening of both
capital adequacy and quality, the latter as reinsurance
recoverables are successfully collected.

The negative outlook reflects the operational weaknesses exposed
by the syndicate's performance during the 2004 and 2005
hurricane seasons.  "We recognize that management action in the
intervening period has sought to address the highlighted
weaknesses, but the effectiveness of this action has yet to be
tested," added Mr. Day.

We will review the ratings for a possible downgrade if the
impact of improved operating controls and a reduced group
underwriting risk profile are not reflected in prospective
results over the next 6-18 months.  The outlook may be revised
to stable if the syndicate's improved operating controls prove
effective and the transition of the group's underwriting risk
profile is successfully completed.


AUDUS NOBLE: Appoints Grant Thornton as Administrators
------------------------------------------------------
Keith Hinds, Joseph P. McLean and Anthony Flynn of Grant
Thornton U.K. LLP were appointed joint administrators of Audus
Noble Limited (Company Number 3141558) 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 Blyth, United Kingdom, Audus Noble Limited
manufactures plastic packaging products.


BLYTH & PAGE: Appoints Replacement Administrator from PwC
---------------------------------------------------------
Nicholas Edward Reed and Patrick Michael Boyden of
PricewaterhouseCoopers LLP were appointed replacement
administrators of Blyth & Page Property on May 30.

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

Blyth & Page Property is engaged in property investment
business.


BODY AND BEING: Names T. Papanicola as Administrator
----------------------------------------------------
T. Papanicola of Bond Partners LLP was appointed administrator
of Body and Being Limited (Company Number 04687744) on May 31.

The administrator can be reached at:

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

Body and Being Limited can be reached at:

         Browning St.
         Birmingham B16 8EH
         United Kingdom
         Tel: 0121 456 7633  


CASTLETON SYSTEMS: Brings In Administrators from Begbies Traynor
----------------------------------------------------------------
Michael E.G. Saville and Rob Sadler of Begbies Traynor were
appointed joint administrators of Castleton Systems Limited
(Company Number 04497906) on June 1.

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

Headquartered in Leeds, United Kingdom, Castleton Systems
Limited offers software consultancy and supply.


CENTRAL EUROPEAN MEDIA: S&P Lifts Corporate Family Rating to Ba3
----------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating
of Central European Media Enterprises Ltd. to Ba3 from B1
reflecting the successful completion of its acquisition of TV
Nova in 2005 combined with the continued satisfactory
operational performance of the company's original stations over
the past twelve months.  

Concurrently the ratings on the company's senior unsecured notes
were also upgraded to Ba3 from B1.  The outlook for all ratings
is stable.

CME's sound operational performance is principally due to the
successful completion of the acquisition of TV Nova in the Czech
Republic in May 2005.  As expected, the company's Czech
operations have dominated its operating results, with ca. 45% of
consolidated EBITDA generated from this asset for the last
twelve months ended March 2006.  However, the performance of
CME's original stations has also been satisfactory, with the
strong performance of the Romanian operations principally
offsetting disappointing results in Slovakia.  As a result, the
company's credit metrics are within the guidance indicated to
Moody's at the time of the bond offering in May 2005 e.g. Debt
to EBITDA for the financial year ended December 2005 was 5.6x,
whilst RCF to Debt was 11.6%.

The ratings upgrade also factors Moody's expectation that
financial metrics will continue to improve in 2006, despite the
implementation of a new sales policy and a restructuring
programme at TV Nova, which is expected to result in a year-on-
year decline in revenues and earnings for the Czech operations,
and ongoing losses in its Croatian operations.

Further positive ratings progression would likely be driven by
continued operating improvements, which resulted in enhanced
financial metrics.  However, Moody's cautions that the company's
investment strategy and leverage tolerance is likely to
constrain the rating at this juncture.

Conversely, there could be downward pressure on the ratings if
the company's revised strategy for its Czech operations resulted
in a sustained reduction in profitability at this division,
which was not offset by improvements at the company's other
divisions or if management increased its leverage targets above
the stated net debt to EBITDA ratio of less than 4.0x. In
addition, since the notes allow for material amounts of secured
debt to be raised, we caution that the current rating of the
notes does not factor in any material use of the flexibility to
incur this debt.  In the event that the level of subsidiary debt
rises, this could have a negative impact on the notching.

Ratings upgraded:

   -- Corporate family rating to Ba3 from B1; and
   --- Senior unsecured notes due 2012 to Ba3 from B1.

Moody's previous rating action on CME was the upgrade to B1 from
B2 on 12 April 2005 following robust operational and financial
performance in 2004 and the expectation of the successful
acquisition of TV Nova.

Central European Media Enterprises Ltd., a Bermuda-based company
with corporate offices in London, England is a TV broadcasting
company with leading networks in six Central and Eastern
European countries reaching an aggregate of approximately 82
million people.  The Company's television stations are located
in Croatia (Nova TV), Czech Republic (TV Nova, Galaxie Sport),
Romania (PRO TV, Acasa, PRO Cinema), Slovakia (Markiza),
Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1).  For the
last twelve months ended March 2006, CME generated revenues of
US$472 million.


DECOURCY CITY: Appoints KPMG as Administrators
----------------------------------------------
Allan Watson Graham of KPMG Corporate Recovery was appointed
administrator of Decourcy City Projects Limited (Company Number
04269393) on May 31.

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

Headquartered in Penarth, United Kingdom, Decourcy City Projects
Limited is engaged in property construction.


DERISK I.T.: Names Tony James Thomson as Administrator
------------------------------------------------------
Tony James Thompson of Piper Thompson was appointed
administrator of Derisk I.T. Limited (Company Number 3881079) on
June 5.

The administrator can be contacted at:

         Piper Thompson
         Mulberry House
         53 Church Street
         Weybridge
         Surrey KT13 8DJ
         United Kingdom
         Tel: 019 328 555 15

Headquartered in Woking, United Kingdom, Derisk I.T. Limited is
engaged in I.T. consultancy.


EMI GROUP: Board Unanimously Rejects Warner Music Revised Offer
---------------------------------------------------------------
The Board of EMI Group PLC unanimously rejected Warner Music
Group Corp.'s Tuesday proposal for the acquisition of 100% of
EMI's outstanding shares of common stock for 320 pence per
share, or GBP2.5 billion (US$4.6 billion), entirely in cash.

The Board considers Warner's revised alternative proposal to be
wholly unacceptable.  

Since EMI's approach to acquire Warner Music Group Corp. on
May 3, the Group continued to actively explore the potential
acquisition of Warner Music, including in discussions with
Warner Music and certain of its shareholders.

On June 14, EMI received an initial unsolicited alternative
proposal from Warner Music to acquire all of the share capital
of EMI for 315 pence per share in cash.  The Board of EMI
considered this proposal from Warner Music to be wholly
unacceptable and unanimously rejected it.
   
On June 23, EMI made a revised proposal to Warner Music for EMI
to acquire all of the outstanding shares of Warner Music for
US$31 per share in cash.  EMI envisages that the proposal would
be funded by debt finance and a rights issue, both of which
would be fully underwritten, and the disposal of certain music
publishing assets.  The proposal is pre-conditional on a number
of matters, including due diligence.  The Board of EMI believed
and offer of this level is fully supported by synergy benefits
available from the combination and that a transaction at this
offer level would therefore deliver compelling value and
earnings accretion to EMI's shareholders.

Warner Music rejected EMI's revised proposal on June 27 and
submitted to EMI a revised pre-conditional alternative proposal
to acquire EMI at 320 pence per share, in cash.  The Warner
Music revised alternative proposal is non-binding and is pre-
conditional, inter alia, on due diligence and unanimous
recommendation of the Board of EMI.   

The Board of EMI continues to believe that an acquisition of
Warner Music by EMI at US$31 per share in cash would be very
attractive to both sets of shareholders and would deliver value
to EMI's shareholders which is far superior to Warner Music's
revised alternative proposal.  The Board of EMI is committed to
pursuing such a transaction only if it delivers enhanced value
and earnings accretion to EMI shareholders.

EMI will make further announcements as appropriate.

Warner Music has not approved the making of this announcement.
There can be no certainty that an offer for EMI by Warner Music
will be made or as to the terms on which any offer might be
made.

Headquartered in London, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent  
music company, operating directly in 50 countries and with
licensees in a further 20.  The group employs over 6,600 people.  
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.


EUROTUNNEL GROUP: Snubs Deutsche Bank-Led Rescue Plan
-----------------------------------------------------
The Ad Hoc Committee of Eurotunnel Group indicated directly to
the holders of the subordinated debt that the financial
restructuring project developed by Deutsche Bank AG was not
acceptable to the creditors that they represent.

This position means that the project has no chance of success
even though it is still presented by its promoters as an
alternative.

This project, based on an enterprise value far superior to that
emanating from the combined analyses of Eurotunnel and the Ad
Hoc Committee, would enable the most subordinated creditors to
recover a substantially greater amount than the market value of
their debt and probably, in the case of most of these creditors,
the acquisition cost of their debt.

These subordinated creditors remaining free to trade in the
bonds constituting this subordinated debt, Eurotunnel has
requested that the market authorities in the U.K. and France
take steps to ensure that the subordinated creditors' project
has not been proposed for the sole purpose of misleading other
market participants, and in particular shareholders, who might
be tempted to trade in these bonds or other equity securities of
Eurotunnel in the hope of realizing the levels of return on
investment put forward by these creditors.

            Bondholders' Alternative Rescue Plan

As reported in TCR-Europe yesterday, Eurotunnel turned down the
restructuring plan prepared by a group of secured bondholders
led by Deutsche Bank AG Tuesday a few days after the plan was
finalized.

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 the Wall Street Journal.

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.


KINGSWOOD LIMITED: Hires Administrators from Portland Business
--------------------------------------------------------------
James Richard Tickell and Carl Derek Faulds of Portland Business
& Financial Solutions Ltd. were appointed joint administrators
of Kingswood (Shopfitting & Interiors) Limited (Company Number
3430319) on June 6.

The administrators can be reached at:

         Portland Business & Financial Solutions Ltd.
         1640 Parkway
         Solent Business Park
         Whiteley
         Fareham
         Hampshire PO15 7AH
         United Kingdom
         Tel: 01489 550 440
         Web: http://www.portland-solutions.co.uk
         E-mails: carl.faulds@portland-solutions.co.uk
                  james.tickell@portland-solutions.co.uk

Kingswood (Shopfitting & Interiors) Limited can be reached at:

         Ashfield Road Trading Estate
         Salisbury SP2 7HL
         United Kingdom


LACE LTD: Creditors Pass Winding Up Resolution
----------------------------------------------
Creditors of Lace Limited passed a resolution to wind up the
company's operations during an extraordinary general meeting on
April 4.

Roderick John Weston of Mazars LLP was appointed Liquidator.

Mazars -- http://www.mazars.com/-- is an international,  
integrated and independent organization, specialized in audit,
accounting, tax and advisory services.

The company can be reached at:

         Lace Limited
         11 East Street
         Brighton BN1 1HP
         United Kingdom
         Tel: 01273 748 382


LAKESIDE RETAIL: Financial Woes Trigger Liquidation
---------------------------------------------------
Lakeside Retail Foods Limited is winding up its operations after
creditors established the company could no longer continue its
business due to mounting debts.

Eileen T.F. Sale of Sale Smith & Co. Limited was appointed
Liquidator.

The company can be reached at:

         Lakeside Retail Foods Limited
         Oldbury Road
         Rowley Regis
         West Midlands B65 0PH
         United Kingdom
         Tel: 0121 561 1551


LUMICARE LTD: Taps Samuel Jonathan Talby to Liquidate Assets
----------------------------------------------------------
Samuel Jonathan Talby, of Bishop Fleming, was appointed
Liquidator of Lumicare Limited after creditors decided to wind
up the company on April 5.

The company can be reached at:

         Lumicare Limited
         Chickenhall Lane
         Eastleigh
         Hampshire SO506RP
         United Kingdom
         Tel: 023 8065 2506
         Fax: 023 8065 2606


MARTIN FARMER: Names Keith Aleric Stevens Liquidator
----------------------------------------------------
Martin Farmer (Wholesale) Limited is liquidating its assets
after creditors agreed to wind up the company on April 5.

Keith Aleric Stevens of Wilkins Kennedy was appointed
Liquidator.

The company can be reached at:

         Martin Farmer (Wholesale) Limited
         Axes Lane
         Redhill RH1 5QL
         United Kingdom
         Tel: 01737 789 786


MODULAR BUILDINGS: Creditors Resolve to Liquidation
---------------------------------------------------
Creditors of Modular Buildings (U.K.) Limited resolved to
liquidate the company's assets during an extraordinary general
meeting on April 7.

Mark Jonathan Botwood, of Muras Baker Jones, was appointed
Liquidator.

The company can be reached at

         Modular Buildings (U.K.) Limited
         Modular Court
         Enterprise Drive
         Four Ashes
         Wolverhampton
         West Midlands WV107DF
         United Kingdom
         Tel: 01902 790 046
         Fax: 01902 791 534


POWER PREP: Liquidates Assets & Appoints Joint Liquidator
---------------------------------------------------------
Power Prep International Limited is liquidating its assets after
creditors approved a resolution to wind up the company on
April 5.

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

The company can be reached at:

         Power Prep International Limited
         Samuel Crompton House
         33-37 Bury Old Road
         Bolton BL2 2AY
         Tel: 01204 382 481


ROBERT TURPIN: Taps F.A. Simms to Administer Assets
---------------------------------------------------
Richard Frank Simms and Martin Richard Buttriss of F A Simms &
Partners Plc were appointed joint administrators of Robert
Turpin Limited (Company Number 4654327) on May 26.

The administrators can be reached at:

         F A Simms & Partners PLC
         Insol House
         39 Station Road
         Lutterworth
         Leicestershire LE17 4AP
         United Kingdom
         Tel: 01455 557111
         Fax: 01455 552572
         E-mail: rsimms@fasimms.com

Headquartered in Nottingham, United Kingdom, Robert Turpin
Limited wholesales meat and meat products.


S & G GROUNDWORK: Hires Liquidator from David Platt Associates
--------------------------------------------------------------
David Graham Platt of David Platt Associates was appointed
Liquidator after creditors passed a resolution to wind up the
company on April 5.

The company can be reached at:
      
         S & G Groundwork Limited
         312A Ripponden Road
         Oldham OL4 2NY
         United Kingdom
         Tel: 0161 628 7976
         Fax: 0161 620 6003


STARLINE ASSOCIATES: Hires Milner Boardman as Administrators
------------------------------------------------------------
Colin Burke and Gary J. Corbett of Milner Boardman & Partners
were appointed joint administrators of Starline Associates
Limited (Company Number 04024271) on June 2.

Headquartered on Hale, Altrincham, South Manchester, Milner
Boardman -- http://www.milnerboardman.co.uk/-- is an  
independent firm of chartered accountants and business advisers.  

Headquartered in Lytham, United Kingdom, Starline Associates
Limited is engaged real estates and property selling.


STEPHEN EASTEN: Appoints Tait Walker as Joint Administrators
------------------------------------------------------------
Gordon S. Goldie and Allan David Kelly of Tait Walker were
appointed joint administrators of Stephen Easten Limited
(Company Number 00088161) on May 30.

Tait Walker -- http://www.taitwalker.co.uk/-- have established  
core service lines to meet the ever growing complexity of our
clients needs in a timely and efficient manner.

Headquartered in Cramlington, United Kingdom, Stephen Easten
Limited is engaged in general construction.


STONEMERE LTD: Winds Up Business & Names Liquidator
---------------------------------------------------
Creditors of Stonemere Limited opted to wind up the company's
operations during an extraordinary general meeting on April 5.

Ian Nigel Millington, of Debtmatters Limited, was appointed
Liquidator.

The company can be reached at:

         Stonemere Limited
         Unit 1
         Thornley Station Industrial Estate
         Shotton Colliery
         Durham
         County durham DH6 2QA
         United Kingdom
         Tel: 01429 835 062


WATERFORD WEDGWOOD: Fitch Keeps Junk Ratings on Likely Default
--------------------------------------------------------------
Fitch Ratings maintained Waterford Wedgwood PLC's Issuer Default
Rating at CCC and Short term C.  At CCC IDR Fitch does not apply
rating Outlooks since default is a real possibility.

At the same time, the agency downgraded the senior secured debt
rating to B- from B, as a result of which the Recovery Rating
was changed to RR2 from RR1.  The Mezzanine notes were
downgraded to CC/RR6 from CCC-/RR5.

Waterford continued to exhibit large operating losses in FY06 as
the markets in which the group operates remained difficult.

"Although Fitch expects operating losses to narrow in FY07, the
latest restructuring program will likely not be sufficient to
restore profitability at Waterford, let alone contribute to
generate positive net free cash flow in the foreseeable future,"
Pablo Mazzini, Director at Fitch's Leveraged Finance team
disclosed.

Fitch views the major plant rationalization as an unfortunate
but necessary measure to boost capacity utilization, tackling
the group's high fixed cost base.  While changing consumer
tastes continue to challenge the relevance of Waterford's
product offer, the return of the group to profits is jeopardized
primarily by the weak short to medium term demand prospects in
certain European countries and the US and continuing US dollar
weakness.

Fitch is also concerned about the longer-term turnaround
strategy.  Waterford is attempting to arrest a declining sales
trend by tapping new retail channels and launching more
contemporary products with more fashion appeal, while
maintaining its reputation for quality.  This seems a pragmatic
approach in today's increasingly segmented consumer market.
However, the group's product offer remains highly weighted
towards fine china and crystal, while little financial
flexibility remains to diversify its revenue stream by entering
new segments or pursue acquisitions.

Waterford continues to consume cash at an alarming rate with net
free cash flow at -EUR189.5 million in FY06.  Fitch expects
negative NFCF to narrow substantially in FY07 as the full annual
contribution of the cost savings from restructuring accrue,
subject to trading conditions and the trend in working capital.  

In the short term, this shortfall is likely to be covered by the
recently announced EUR60 million new rights issue, highlighting
the group's reliance on the continued support from its main
shareholders.  In Fitch's view, any delays in returning the
business to profitability could undermine the confidence of
shareholders, potentially leaving the company exposed to a
liquidity crisis.

Given the current negative EBITDA and lack of certainty with
regards to the turnaround plan, Fitch expects recoveries to
arise from the liquidation value as opposed to a going concern
scenario.  The shrinking fixed asset base due to plant closures,
together with increasing senior debt levels, cap recovery
prospects for mezzanine noteholders.  Fitch still expects
superior recoveries for senior secured creditors although the
mezzanine notes are highly exposed to equitization risk upon
default.

Waterford Wedgwood is a leading designer and manufacturer of
premium-priced goods including crystal, ceramics and cookware.
Waterford has leading positions in its key markets in the US,
Europe and Japan.  For FY ending March 2006, Waterford generated
net sales of EUR772.6 million, including Royal Doulton and
EBITDA before exceptional costs of -EUR31 million.

                           *********

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.

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