TCREUR_Public/060704.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

              Tuesday, July 4, 2006, Vol. 7, No. 131

                            Headlines


A U S T R I A

CHRISTA GRIESSER: Court to Close Case After Final Distribution
HAUSVERWALTUNG: Insufficient Funds Prompt Court to Close Case
HILAL: Vienna Court Will Close Case After Final Allocation
HKGR: Court Closes Bankruptcy Case After Final Distribution
KARL UND EMILIE: Court Dismisses Case Due to Lack of Funds

STICH & PARTNER: Claims Registration Period Ends July 28


F I N L A N D

M-REAL CORP.: S&P Places BB- Rating on Watch Negative


F R A N C E

ALSTOM SA: Wins 10-Year Service Agreement in Argentina
ARMORICAINE DE MENUISERIE: Under Six-Month Observation Period
RHODIA SA: S&P Lifts Long-Term Credit Rating to B+


G E R M A N Y

ALERIS INTERNATIONAL: Commences Tender Offer for Senior Notes
DORINGER FOTO: Claims Registration Ends July 21
EXIDE TECHNOLOGIES: Won't Sell European Industrial Energy Group
GTN GABELSTAPLER: Claims Registration Ends July 28
K. W. NITZSCHE: Claims Registration Ends July 21

KARSTADTQUELLE AG: Ends Supply to Karstadt Kompakt
KLOECKNER & CO.: S&P Lifts Long-Term Corp Credit Rating to BB
KURT MOSELER: Claims Registration Ends July 21
PAULUS GMBH: Claims Registration Ends July 25
POLYGON HANDELS: Creditors' Meeting Slated for July 20

RUDOLF HEINRICH: Claims Registration Ends July 7
SCORPION TECHNOLOGIES: Claims Registration Ends July 21
STAFF KOWALSKY: Claims Registration Ends July 25
TUERKISCH-KULTURELLE: Claims Registration Ends July 21


H U N G A R Y

BORSODCHEM RT: Shuffles Organizational Structure


I R E L A N D

ELAN CORP: European Commission Okays Tysabri for Marketing


I T A L Y

ALITALIA SPA: Cuts Net Debt to EUR914 Million
BANCA POPOLARE: Three Foreign Banks Eye Italian Lender
FIAT SPA: Deutsche Bank Reveals Intention to Bid for Fidis


K A Z A K H S T A N

AI-JOL: Creditors Must File Claims by July 14
ALMAGUL: Creditors Must File Claims by July 14
ARUAK: Proof of Claim Deadline Slated for July 14
AUYL: Proof of Claim Deadline Slated for July 14
BASTAUSHI-OMIR: Creditors' Claims Due July 14

BIZNES: Creditors' Claims Due July 14
DARIO: Claims Registration Ends July 14
GAIANE: Claims Registration Ends July 14
POLIS: Creditors Must Submit Claims by July 14
POLITEHNIKS: Proof of Claim Deadline Slated for July 14


N E T H E R L A N D S

GETRONICS NV: Sells Regional Operations to Kapsch Group
NORTH WESTERLY: S&P Assigns BB Rating to Class E Notes
WOOD STREET: Moody's Rates EUR16.5-Mln Class E Notes at Ba3


N O R W A Y

AKER KVAERNER: Inks EUR60-Mln Power Boiler Deal with KFx Inc.


P O L A N D

NETIA SA: Registers Share Capital Increase & Structure


R U S S I A

BALASHOVSKIY: Bankruptcy Hearing Slated for July 27
BAYKALSKAYA SHIPBUILDING: K. Sobolev to Manage Assets
CHAINSKIY MASLODEL: Court Starts Bankruptcy Supervision
DOROGINSKOYE: Court Names A. Demidov as Insolvency Manager
GAZPROM: Shareholders Okay 2005 Annual Report

GAZPROM: Shareholders Name Dmitry Medvedev as New Board Chairman
GAZPROM: Inks Partnership Deal with Itera Oil
INTERNATIONAL BANK: Obtains EUR15-Mln Syndicated Term Loan
KISELEVSKIY CENTRE: Court Names V. Nikitenko to Manage Assets
MASLYANINSKIY FLAX: A. Shiyanov to Manage Insolvency Assets

NOVOCHEBULINSKOYE: Court Names A. Levinov as Insolvency Manager
NOVOPOKROVSKOYE: Osmk Court Starts Bankruptcy Supervision
NOVOSIBIRSKAYA MACARONI: V. Fedchenko to Manage Assets
NOVOSIBIRSKIY WOOD-COMBINE: S. Dubnovets to Manage Assets
OMSKIY CRYOGENIC: Omsk Court Starts Bankruptcy Supervision

PROM-ENERGO-RESOURCE: Court Commences Bankruptcy Supervision
PYATEROCHKA HOLDING: Launches US$50 Million GDR Purchase Program
ROSNEFT: Acquires 97.51% Equity Stake in Nakhoda Oil Harbor
TNK-BP INTERNATIONAL: S&P Raises Credit Rating to BB+
TROITSKIY BUTTER-CHEESE: Bankruptcy Hearing Slated for July 24

VNESHTORGBANK: Launches EUR15-Million Bank Loan for IBSP
ZOLOTAYA GRIVA: Bankruptcy Hearing Slated for Aug. 7


S P A I N

FONCAIXA FTGENCAT 4: Moody's Junks EUR6 Million Series E Notes
SANTANDER HIPOTECARIO: Moody's Junks EUR17.6-Mln Series F Notes


T U R K E Y

PROFILO TELRA: Fitch Assigns Local Currency IDR at B


U K R A I N E

AGROLIT: Court Appoints Mikola Kaluzhnij as Insolvency Manager
AGROPRODUKT: Mikolaiv Court Starts Bankruptcy Supervision
ALKOR: Court Names Mikola Kaluzhnij to Manage Assets
DRUZHBA: Vinnitsya Court Appoints Liquidator
KOLOS: Dnipropetrovsk Court Starts Bankruptcy Supervision

KVARTA: Court Appoints V. Yurkiv to Liquidate Assets
PERSHOTRAVNEVE: Court Starts Bankruptcy Supervision
SMAK: Court Names Petro Stotskij as Insolvency Manager
SPARTAK: Court Names Oleksandr Bandola as Liquidator


U N I T E D   K I N G D O M

A. FOX: Appoints Joint Administrators from Kroll
ADAL GROUP: Brings In Administrators from PKF
ARCH CAPITAL: Growing Biz Spurs S&P to Affirm BB+ Pref. Ratings
BLUE WAHOO: Hires CLB Coopers as Joint Administrators
BULLET POINT: Taps Deloitte & Touche as Administrators

COMPLETE PROPERTY: Names P.R. Dewey as Administrator
CRAWLEY TOWN: Brings In Administrators from Begbies Traynor
MCCLYMONT CONSTRUCTION: Financial Woes Trigger Liquidation
MOBBERLEY PLANT: Hires Administrators from Mazars LLP
MORTGAGE INTELLIGENCE: Creditors Pass Winding Up Resolution

NORTHCLIFFE MOTOR: Hires Joint Liquidators from Begbies Traynor
NTL CABLE: Moody's Places B2 Rating Under Review
OCULAR DISPLAY: Hires Deloitte & Touche to Administer Assets
OPTIMUM RECRUITMENT: Appoints BDO Stoy as Administrators
PULSE MEDIA: Brings In Joint Liquidators from Valentine & Co

RAND SERVICES: Brings In Tenon Recovery to Administer Assets
RANK GROUP: Disposes DVD Business for GBP5.9 Million Cash
SARAI WINDOWS: Creditors Confirm Liquidator's Appointment
TICKENHAM GOLF: Taps Colin Andrew Presscott to Liquidate Assets

* Large Companies with Insolvent Balance Sheets


                            *********

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


CHRISTA GRIESSER: Court to Close Case After Final Distribution
--------------------------------------------------------------
The Trade Court of Vienna will close the bankruptcy case of LLC
Christa Griesser (FN 104430z) after the Debtor's final
distribution to creditors.

Creditors will receive a 0.53% recovery on account of their
claim.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 10, 2004 (Bankr. Case No. 4 S 138/04b).  Hans Rant
served as the court-appointed property manager for the bankrupt
estate.  


HAUSVERWALTUNG: Insufficient Funds Prompt Court to Close Case
-------------------------------------------------------------
The Trade Court of Vienna dismissed the bankruptcy case of LLC
Hausverwaltung Transimmobilien (FN 099352 g) on May 18 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 Dec. 17, 1997 (Bankr. Case No. 4 S 992/97b).  Ilse Korenjak
served as the court-appointed property manager for the bankrupt
estate.  


HILAL: Vienna Court Will Close Case After Final Allocation
----------------------------------------------------------
The Trade Court of Vienna will close the bankruptcy case of LLC
Hilal (FN 219037p) after the Debtor's final distribution to its
creditors.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 16, 2004 (Bankr. Case No. 4 S 110/04k).  Felix
Stortecky served as the court-appointed property manager for the
bankrupt estate.  


HKGR: Court Closes Bankruptcy Case After Final Distribution
-----------------------------------------------------------
The Trade Court of Vienna entered an order closing the
bankruptcy case of Construction LLC HKGR (FN 238020f) on May 18
after the Debtor's final distribution to creditors.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 3, 2004 (Bankr. Case No. 4 S 95/04d).  Werner Stanek
served as the court-appointed property manager for the bankrupt
estate.  


KARL UND EMILIE: Court Dismisses Case Due to Lack of Funds
----------------------------------------------------------
The Trade Court of Vienna dismissed the bankruptcy case of LLC
Karl und Emilie Vojtech (FN 98788b) on May 18 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 Court removed the Debtor's
bankruptcy case (Bankr. Case No. 14 S 112/04t) from (Bankr. Case
No. 5 S 63/04 f) on Feb. 9, 2005.  


STICH & PARTNER: Claims Registration Period Ends July 28
--------------------------------------------------------
Creditors owed money by Property Trade and Construction Company
Stich & Partner (FN 179378t) have until July 28 to file written
proofs of claims to court-appointed property manager Thomas
Hufnagl at:

         Dr. Thomas Hufnagl
         Franz Rehrl Place 2
         5020 Salzburg, Austria
         Tel: 0662-640083
         Fax: 0662-642912-24
         E-mail: dr.thomashufnagl@rechtsanwaelte.co.at  

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 11 to consider the adoption of
the rule by revision.

The meeting of creditors will be held at:

         The Land Court of Salzburg
         Hall 256
         2nd Floor
         Salzburg, Austria

Headquartered in Saalbach, the Debtor declared bankruptcy on
May 18 (Bankr. Case No. 44 S 17/06h).  Herbert Scheller of
Construction LLC Alpenland (FN 167320i) represents the Debtor in
the bankruptcy proceedings.


=============
F I N L A N D
=============


M-REAL CORP.: S&P Places BB- Rating on Watch Negative
-----------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit rating on Finland-based forest products company
M-real Corp. on CreditWatch with negative implications.  At the
same time, the 'B' short-term corporate credit rating was
affirmed.

"The CreditWatch placement primarily reflects M-real's continued
weak operating and financial performance, and increased
uncertainties about the pace and strength of improvements in
this regard," said Standard & Poor's credit analyst Andreas
Zsiga.

"These weaknesses stem from continued tough market conditions
for the group's core businesses, higher input costs, and
M-real's weak internal operating performance."

At March 31, M-real had net interest-bearing debt of about
EUR2.3 billion.
     
Despite improved demand, and increased capacity utilization
rates, prices remain weak in M-real's key paper grades including
fine paper, owing to prevailing overcapacity.  In addition,
earnings are being negatively affected by rising input costs for
energy and chemicals.  Furthermore, M-real's internal operating
efficiency remains weak -- although a low EBITDA ratio of about
8% in fiscal 2005 primarily reflects the effects of a labor
dispute at its Finnish paper mills.

The group has announced further cost-saving initiatives, such as
the sale of one paper mill, and staff reduction at another,
although prospects for short-term improvements in operating
performance remain slim.  The group has also announced that
second-quarter earnings for 2006 will be weaker than expected,
owing to higher production costs.
     
M-real's financial risk profile remains weak, owing to weak
operating cash flows, and is also affected by negative currency
movements.  In order to retain the current ratings, FFO to net
debt will need to average about 15% over the economic cycle.
     
"Before resolving the CreditWatch status, Standard & Poor's will
require a clearer understanding of M-real's future operating
cash flow generation capacity, input cost trends, and benefits
from the group's internal efficiency measures," added Mr. Zsiga.

"S&P will also review the group's business and financial
strategies. Any lowering of the ratings would likely be limited
to one notch."


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


ALSTOM SA: Wins 10-Year Service Agreement in Argentina
------------------------------------------------------
Alstom SA has been awarded a 10-year long-term service agreement
by Aluar Aluminio Argentino S.A.I.C for the Aluar Extension II
combined-cycle power plant located in Puerto Madryn, 1350 km
south of Buenos Aires.

The scope of the contract covers the operation support and
maintenance services for the power island, comprising the Gas
and Steam Turbines, the Generators and the Heat Recovery Steam
Generators.

During the contract period two engineers will remain permanently
on site to ensure high plant availability. Parts and supervisory
field service personnel will be provided for scheduled and
unscheduled inspections.

ALSTOM signed the Engineering, Procurement and Construction
(EPC) contract for the KA13E2MXL-2 Aluar Extension II combined
cycle power plant in October 2005 and commercial operation is
expected in the second quarter of 2007.  The plant will be the
first combined-cycle power plant powered by ALSTOM gas turbines
type GT13E2 in South America, and the energy produced will be
fed to the adjacent aluminum smelter.

The awarding of this new contract reinforces the good
relationship between Aluar Aluminio Argentino S.A.I.C. and
ALSTOM and clearly demonstrates the customer's confidence in
ALSTOM as an experienced and reliable EPC and O&M provider.

                           About Alstom

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


ARMORICAINE DE MENUISERIE: Under Six-Month Observation Period
-------------------------------------------------------------
The French court has put Armoricaine de Menuiserie in a six-
month observation period after French food company Ducatel
introduced insolvency proceedings for Armoricaine two weeks ago,
Stanislas du Guerny writes for Les Echos.

Armoricaine's employees are demanding the reasons for the
insolvency in view of favorable development on the construction
market, Les Echos relates.

Headquartered in Plouedern, France, Armoricaine de Menuiserie
manufactures PVC doors and windows.  It generates approximately
EUR7 million in annual turnover, Les Echos reports.


RHODIA SA: S&P Lifts Long-Term Credit Rating to B+
--------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on France-based chemical producer Rhodia
S.A. to 'B+' from 'B'.  

At the same time, the 'B' short-term rating was affirmed and the
rating on senior unsecured and subordinated bonds was raised to
'B-' from 'CCC+'.  The outlook is stable.

"The upgrade reflects Rhodia's overall improved situation over
the past two years," said Standard & Poor's credit analyst
Khaled Zitouni.

"Primarily, better financial results boosted by improved
operations given a wide-reaching business and financial
turnaround plan, and broadly favorable markets."

The rating action also factors in Standard & Poor's expectations
of a favorable supply/demand balance and good prices for key raw
materials.  These conditions are likely to lead to improved cash
flow ratios, and, notably, a ratio of funds from operations
(FFO) to adjusted debt of between 10%-15% on an ongoing basis, a
marked improvement compared with 2005 and 2004.  Rhodia will
also most likely achieve positive free cash flow from 2007
onward.
     
Standard & Poor's expects Rhodia to be able to reach an
FFO-to-net-adjusted-debt ratio of 10%-15% on an ongoing basis,
as well as positive FOCF from its core operations not including
the carbon credits.  We also expect the group to not make any
acquisitions, to continue its turnaround plan, and to apply any
potential sale proceeds to further deleveraging, as it has done
in past years.

"The rating could come under pressure if an imbalance occurs
between supply and demand in the core polyamide market or if raw
material prices cannot be passed on in a sufficient and timely
fashion," added Mr. Zitouni.
     
The rating could be positively affected if Rhodia is able to
sustain a ratio of FFO to adjusted debt comfortably above 15%,
or if carbon credits provide meaningful proceeds, which are
applied to deleveraging.


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


ALERIS INTERNATIONAL: Commences Tender Offer for Senior Notes
-------------------------------------------------------------
Aleris International, Inc. (NYSE: ARS) offered to purchase for
cash any and all of its outstanding 10-3/8% Senior Secured Notes
Due 2010 (CUSIP No. 449681AC9) and 9% Senior Notes Due 2014
(CUSIP No. 014477AA1), on the terms and subject to the
conditions in the Offer to Purchase and Consent Solicitation
Statement dated June 30, 2006, and the Consent and Letter of
Transmittal.

Aleris is also soliciting consents from holders of the Notes to,
among other things, eliminate or make less restrictive
substantially all of the restrictive covenants and the events of
default and amend certain related provisions in the indentures
under which the Notes were issued.  The tender offer and consent
solicitation is being conducted in connection with, and is
contingent on the consummation of, the acquisition of the
downstream aluminum business of Corus Group plc.

The consent solicitation will expire at 5 p.m. New York City
time, on July 14, unless earlier terminated or extended.  The
tender offer will expire at midnight, New York City time, on
July 28, unless terminated or extended.

The total consideration for each US$1,000 principal amount of
Notes validly tendered and accepted for purchase, subject to the
terms and conditions of the tender offer and consent
solicitation, on or prior to the Consent Date will be
US$1,100.78 for the 10-3/8% Notes and US$1,134.96 for the 9%
Notes.  The total consideration includes a consent payment equal
to US$20 per US$1,000 for the 10-3/8% Notes and the 9% Notes.  
The tender offer consideration for each US$1,000 principal
amount of Notes validly tendered and accepted for purchase,
subject to the terms and conditions of the tender offer and
consent solicitation, tendered after the Consent Date but on or
prior to the Expiration Date (and not validly withdrawn)
pursuant to the Offer shall be US$1,080.78 for the 10-3/8% Notes
and US$1,114.96 for the 9% Notes.  The total consideration and
the tender offer consideration to be paid for each US$1,000 in
principal amount of Notes will be paid in cash.  In either case,
all holders who validly tender their Notes will receive accrued
but unpaid interest up to, but not including, the date of
settlement.

In connection with the tender offer, Aleris is also seeking
consents to certain proposed amendments with respect to the
Notes.  The purpose of the proposed amendments is to, among
other things, eliminate or make less restrictive substantially
all of the restrictive covenants and the events of default and
to amend certain related provisions under the Indentures.  
Holders who desire to tender their Notes must consent to the
proposed amendments.  A holder may not deliver consents without
tendering the related Notes.  The tender offer is subject to the
satisfaction of certain conditions, including receipt of
consents sufficient to approve the proposed amendments to the
Indentures, obtaining the requisite funding and the Acquisition
having occurred or occurring substantially concurrent with the
Expiration Date.

The proposed amendments to the Indentures for which consents are
being solicited will be set forth in two supplemental indentures
and are described in more detail in the Offer Documents.  The
supplemental indentures will not be executed unless and until
Aleris has received consents from holders of a majority in
principal amount of the applicable Notes outstanding, and the
amendments will not become operative unless and until Aleris has
accepted for purchase at least a majority in principal amount of
the applicable Notes pursuant to the Offer Documents.

Deutsche Bank Securities Inc. is acting as dealer manager for
the tender offer and as the solicitation agent for the consent
solicitation and can be contacted at (212) 250-6008 (collect).  
Mackenzie Partners, Inc. is the depositary and information agent
and can be contacted at (212) 929-5500 (collect) or (800) 322-
2885 (toll-free).  Copies of the Offer Documents and other
related documents may be obtained from the information agent.

                   About Aleris International

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- is a major  
North American manufacturer of rolled aluminum products and is a
global leader in aluminum recycling and the production of
specification alloys.  The company is also a leading
manufacturer of value-added zinc products that include zinc
oxide, zinc dust and zinc metal.  The Company operates 42
production facilities in the United States, Brazil, Germany,
Mexico and Wales, and employs approximately 4,200 employees.

                          *     *     *

As reported in the Troubled Company Reporter on Mar. 23,
Standard & Poor's Rating Services placed its 'BB-' corporate
credit and its other ratings on Aleris International Inc. on
CreditWatch with negative implications.  The action followed the
announcement that Aleris has entered into a non-binding letter
of intent to acquire the downstream aluminum operations of Corus
Group PLC (BB-/Watch Pos/B) for approximately US$840 million
plus the assumption of EUR28 million of debt, and EUR98 million
of debt-like pension liabilities.

Moody's Investors Service also placed the debt ratings of Aleris
International Inc., under review for possible downgrade.  These
ratings were B1 Corporate Family Rating; B2 senior secured
US$210 million 10.375% notes due 2010; and B3 senior unsecured
US$125 million 9% notes due 2014.


DORINGER FOTO: Claims Registration Ends July 21
-----------------------------------------------
Creditors of Doringer Foto-Video GmbH have until July 21 to
register their claims with court-appointed provisional
administrator Ulrike Hoge-Peters.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 7, at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bad Homburg v. d. Hohe
         Room 302
         3rd Floor
         District Court Building         
         Auf der Steinkaut 10-12
         61352 Bad Homburg v. d. Hohe, 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 Bad Homburg v. d. Hohe opened bankruptcy
proceedings against Doringer Foto-Video GmbH on May 18.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Doringer Foto-Video GmbH
         Attn: Heinz Otto Doringer, Manager
         Gablonzer Str. 19
         61440 Oberursel/Ts., Germany

The administrator can be contacted at:

         Ulrike Hoge-Peters
         Cronstettenstrasse 30
         60322 Frankfurt/Main, Germany
         Tel: 069/9591100
         Fax: 069/95911012


EXIDE TECHNOLOGIES: Won't Sell European Industrial Energy Group
---------------------------------------------------------------
Exide Technologies is withdrawing the planned sale of its
European Industrial Energy and Rest of World operations.

In its Form 8-K filed with the U.S. Securities and Exchange
Commission on April 20, Exide said that it had begun examining a
number of strategic alternatives -- including the potential sale
of the Company's European Industrial Energy operations.

"During the first quarter of FY '07, we evaluated a number of  
alternatives to increase profitability and maximize shareholder  
value, Gordon A. Ulsh, President and Chief Executive Officer of  
Exide Technologies said.  "As a result of this process, we have  
decided not to proceed with the sale of our European Industrial  
Energy and ROW business, and instead intend to maximize the
value of that business as part of our ongoing FY'07 Business
Plan."

Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and   
distributes lead acid batteries and other related electrical  
energy storage products.  The Company filed for chapter 11  
protection on Apr. 14, 2002 (Bankr. Del. Case No. 02-11125).   
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland
& Ellis, represented the Debtors in their successful
restructuring.  Exide's confirmed chapter 11 Plan took effect on
May 5, 2004.  On April 14, 2002, the Debtors listed
$2,073,238,000 in assets and $2,524,448,000 in debts.  (Exide
Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service,
Inc., 215/945-7000)

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 6, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Exide Technologies to 'CCC' from 'CCC+' because of
Exide's continued poor operating performance and rising debt
leverage.

The senior secured rating on Exide's recently enlarged first-
lien credit facility was lowered to 'CCC' from 'B-', and the
recovery rating was lowered to '2' from '1', because of the
lower corporate credit rating and the weaker asset protection
for the enlarged facility.  The senior secured rating and the
recovery rating reflect Standard & Poor's expectation that
lenders will realize a substantial recovery of principal (80%-
100%) in the event of default or bankruptcy.
     
The senior secured rating on Exide's second-lien notes was
lowered to 'CC' from 'CCC', reflecting the lower corporate
credit rating and an increase in priority debt.


GTN GABELSTAPLER: Claims Registration Ends July 28
--------------------------------------------------
Creditors of GTN Gabelstapler -- Technik Nord GmbH have until
July 28 to register their claims with court-appointed
provisional administrator Burckhardt Reimer.

Creditors and other interested parties are encouraged to attend
the meeting at 12:00 noon on Aug. 29, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The District Court of Hamburg opened bankruptcy proceedings
against GTN Gabelstapler -- Technik Nord GmbH on June 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         GTN Gabelstapler -- Technik Nord GmbH
         Attn: Rolf Sagert, Manager
         Windhukkai 5
         20457 Hamburg, Germany

The administrator can be contacted at:

         Burckhardt Reimer
         Domstrasse 15
         20095 Hamburg, Germany
         Tel: 41522416
         Fax: 41522-411


K. W. NITZSCHE: Claims Registration Ends July 21
------------------------------------------------
Creditors of K.W. Nitzsche und E.O. Weiss Immobilien-GmbH have
until July 21 to register their claims with court-appointed
provisional administrator Peter Naarmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:45 a.m. on Aug. 9, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The District Court of Chemnitz opened bankruptcy proceedings
against K.W. Nitzsche und E.O. Weiss Immobilien-GmbH on May 22.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         K.W. Nitzsche und E.O. Weiss Immobilien-GmbH
         Attn: Knut Nitzsche, Jochen Weiss
         and Claus Belaschki, Managers         
         Limbacher Road 193
         09116 Chemnitz, Germany

The administrator can be contacted at:

         Dr. Peter Naarmann
         Dresdner Str. 86
         09130 Chemnitz, Germany


KARSTADTQUELLE AG: Ends Supply to Karstadt Kompakt
--------------------------------------------------
The 74 Karstadt Kompakt GmbH department stores are to be
supplied with the complete toys range by Intertoys.  

The Dutch company is also to assume a large part of the
marketing of the toy departments of the German department store
chain.  The purchasing volume is of the order of EUR18 million.  
Intertoys is the largest toy chain in the Benelux countries and
already operates a couple of dozen branches in Germany.

The previous supplier was Karstadt Warenhaus GmbH (Essen), which
owned the 74 department stores until their sale last year.  When
the contract was concluded, it was agreed that deliveries to the
Karstadt Kompakt department stores would be realigned.  The
contract on the previous supply of the Karstadt Kompakt toy
departments expires as scheduled on Oct. 31, 2006, as the two
department store chains wish to take a different positioning in
the future.

                        Karstadt Kompakt

Karstadt Kompakt GmbH is a department store chain with 74
medium-sized department stores in Germany -- between 2,000 and
8,000 square meters.  Karstadt Kompakt GmbH was owned by
Karstadt QuelleAG up to Sept. 1, 2005.  Since then, Karstadt
Kompakt GmbH has belonged to two British investment companies.

                            Intertoys

Intertoys was founded in June 1976 and belongs to Blokker
Holding B.V.  Intertoys currently has almost 300 stores, 160 of
which are franchise outlets.  Intertoys operates in the
Netherlands, Belgium and Germany.

                          KarstadtQuelle

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

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

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


KLOECKNER & CO.: S&P Lifts Long-Term Corp Credit Rating to BB
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Germany-based metal distributor
Kloeckner & Co. International GmbH to 'BB' from 'B+' following
the successful completion of the partial IPO by
Kloeckner & Co. AG, the ultimate holding company.  At the same
time, Standard & Poor's raised to 'B+' from 'B-' the rating on
the EUR260 million subordinated bonds issued by Kloeckner
Investment S.C.A. and guaranteed by Kloeckner.  All ratings were
removed from CreditWatch where they were placed on June 6.
The outlook is stable.

"The rating action reflects the successful completion of the
partial IPO of about 40% of group equity," said Standard &
Poor's credit analyst Eve Greb.

"A substantial portion of about ?100 million proceeds will be
used to reduce Kloeckner's net indebtedness and therefore
significantly strengthen its financial profile."

This could involve a claw-back of up to 35% of the outstanding
bonds issued by Kloeckner Investment.
     
Kloeckner had net unadjusted financial debt of ?629 million at
the end of March 2006.
  
The agency considers that the new capital structure will
substantially reduce the likelihood of further releveraging.  
Kloeckner's credit ratios are expected to significantly improve
in 2006, benefiting from a significant drop in interest charges
on the back of the debt restructuring as well as the expected
continuation of solid operating performance.  Therefore, the
ratio of operating cash flow (OCF) to net debt is likely to
increase to above 20%, from 18% pro forma for 2005.
     
The ratings on Kloeckner nevertheless reflect its high leverage,
relatively low cash generation, and high level of working-
capital intensity.  They also reflect the competitive and
fragmented nature of the metal distribution industry.  At the
same time, Standard & Poor's notes Kloeckner's good customer,
product, and geographic diversification, and its position as
Europe's leading independent metal distributor.
    
With annual sales of EUR4.96 billion, Kloeckner is Europe's
third-largest metal distributor and the largest independent
player, with a market share of about 11%.
     
"The stable outlook reflects our expectation that Kloeckner will
continue its strong OCF generation," said Ms. Greb.

"In particular, we are looking for a ratio of OCF to pension-
adjusted net debt in the 20%-25% range on a sustained basis."


KURT MOSELER: Claims Registration Ends July 21
----------------------------------------------
Creditors of Kurt Moseler FORMART GmbH have until July 21 to
register their claims with court-appointed provisional
administrator Kilian Gorgen.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Sept. 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 Wittlich
         Hall 3
         Law Courts
         Kurfuerstenstrasse 63
         54516 Wittlich, 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 Wittlich opened bankruptcy proceedings
against Kurt Moseler FORMART GmbH on May 17.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Kurt Moseler FORMART GmbH
         Goldbachstr. 1
         54470 Bernkastel-Andel, Germany

         Attn: Kurt-Josef Moseler, Manager
         Speergarten 6
         54492 Loesnich, Germany

The administrator can be contacted at:

         Kilian Gorgen
         Richtstr. 1-3
         54338 Schweich, Germany
         Tel: 06502/939134
         Fax: 06502/939136


PAULUS GMBH: Claims Registration Ends July 25
---------------------------------------------
Creditors of Paulus GmbH have until July 25 to register their
claims with court-appointed provisional administrator Ulrich
Kuehn.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.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 Siegen
         Hall 009
         Ground Floor
         Berlin Road 21-22
         57072 Siegen, 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 Siegen opened bankruptcy proceedings
against Paulus GmbH on June 7.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Paulus GmbH
         Wielandstr. 8
         57482 Wenden, Germany

         Attn: Peter Kulik, Manager
         Winkelstr. 12 a
         57258 Freudenberg, Germany

The administrator can be contacted at:

         Ulrich Kuehn
         Riehler Str. 26
         50668 Cologne, Germany
         Tel: (0221) 9726157
         Fax: (0221) 9726227


POLYGON HANDELS: Creditors' Meeting Slated for July 20
------------------------------------------------------
The court-appointed provisional administrator for POLYGON -
Handels GmbH, Rolf Rattunde, will present her first report on
the Company's insolvency proceedings at a creditors' meeting at
10:20 a.m., on July 20.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:05 a.m., on Oct. 19 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 POLYGON - Handels GmbH on June 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         POLYGON - Handels GmbH
         Greta-Garbo-Str. 8
         13189 Berlin, Germany

The administrator can be reached at:

         Rolf Rattunde
         Kurfuerstendamm 212
         10719 Berlin, Germany


RUDOLF HEINRICH: Claims Registration Ends July 7
------------------------------------------------
Creditors of Rudolf u. Heinrich Luehrsen GbR have until July 7
to register their claims with court-appointed provisional
administrator Jan H. Wilhelm.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Aug. 18, 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 Syke
         Hall 112
         Nebenstelle Hauptstr. 5A
         28857 Syke, 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 Syke opened bankruptcy proceedings against
Rudolf u. Heinrich Luehrsen GbR on June 6.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Rudolf u. Heinrich Luehrsen GbR
         Attn: Rudolf and Heinrich Luehrsen, Managers
         Diesdorfer Road 230
         Bahnhofstr. 6
         27239 Twistringen, Germany

The administrator can be contacted at:

         Jan H. Wilhelm
         Market 1
         28195 Bremen, Germany


SCORPION TECHNOLOGIES: Claims Registration Ends July 21
-------------------------------------------------------
Creditors of Scorpion Technologies AG have until July 21 to
register their claims with court-appointed provisional
administrator Michael W. Kuleisa.

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 Hamburg
         Hall B 405
         4th Floor
         Sievekingplatz 1
         20355 Hamburg, Germany

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

The District Court of Hamburg opened bankruptcy proceedings
against Scorpion Technologies AG on June 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Scorpion Technologies AG
         Attn: Manfred Schilling, Manager
         Papenreye 51
         22453 Hamburg, Germany

The administrator can be contacted at:

         Michael W. Kuleisa
         Speersort 4-6
         20095 Hamburg, Germany
         Tel: 040/303010
         

STAFF KOWALSKY: Claims Registration Ends July 25
------------------------------------------------
Creditors of Staff, Kowalsky und Nischik Tiefbau GmbH have until
July 25 to register their claims with court-appointed
provisional administrator Joachim Walterscheid.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.m. on Aug. 22, 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 Detmold
         Auxiliary Building
         Gerichtsstr. 6
         32756 Detmold, 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 Detmold opened bankruptcy proceedings
against Staff, Kowalsky und Nischik Tiefbau GmbH on June 6.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Staff, Kowalsky und Nischik Tiefbau GmbH
         Attn: Detlef Staff, Manager
         Kornstr. 7
         32816 Schieder-Schwalenberg, Germany

The administrator can be contacted at:

         Joachim Walterscheid
         Kurpark 2
         32545 Bad Oeynhausen, Germany
         Tel: 05731/8422330
         Fax: 05731/8422350


TUERKISCH-KULTURELLE: Claims Registration Ends July 21
------------------------------------------------------
Creditors of Tuerkisch-Kulturelle Dergah Union e. V. have until
July 21 to register their claims with court-appointed
provisional administrator Thomas Illy.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 8, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt am Main
         Hall 2
         Geb. F
         Klingerstr. 20
         60313 Frankfurt am Main, 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 Frankfurt am Main opened bankruptcy
proceedings against Tuerkisch-Kulturelle Dergah Union e. V. on
May 11.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Tuerkisch-Kulturelle Dergah Union e. V.
         Central Maritime Route 25
         60386 Frankfurt/Main, Germany

The administrator can be contacted at:

         Thomas Illy
         Welle 5
         60322 Frankfurt am Main, Germany
         Tel: 069/979953-0
         Fax: 069/979953-99


=============
H U N G A R Y
=============


BORSODCHEM RT: Shuffles Organizational Structure
------------------------------------------------
BorsodChem Rt. disclosed that it operates under a slightly
aligned organizational structure as of July 1.

The major organizational units reporting directly to CEO Kay
Gugler are:

   -- Manufacturing & Technology (TamAs Purzsa, Manufacturing &
      Technical Director, Deputy CEO),

   -- Finance (Janos Illessy, Chief Financial Officer, Deputy
      CEO),

   -- Procurement & Logistics (Janos Szabo, P&L Director),

   -- Isocyanates Business Unit (Laszlo Kezdi, Business
      Director),

   -- Vinyl Business Unit (Aniko Szaraz, Business Director),

   -- Czech subsidiary BC-MCHZ (Alexander Palffy, Director),

   -- Polish subsidiary Petrochemia - Blachownia (Jerzy
      Wiertelorz, Managing Director),

   -- Environment, Health and Safety (Laszlo Szentmiklossy, EHS
      Director),

   -- the HR Office,

   -- the Legal Coordination Office, and

   -- the Communication Office.

As a result of the new management structure and modification of
reporting lines, the circle of senior executives is changing:

   -- The employment contract of Istvan Szakallas, Director
      of the former Vinyl-Chloride Business Unit shall terminate
      due to retirement.  The appointment of Istvan Szilagyi,
      Director of the former Compounds Business Unit shall
      Terminate; and

   -- Aniko Szaraz has been appointed Business Director of the
      Vinyl Business Unit.  Ms. Szaraz does not hold any
      BorsodChem ordinary shares but has 116,660 pieces of
      employee shares (B shares).

The previously defined and published circle of BorsodChem senior
executives has not been modified beyond the three changes
mentioned.

It was the implementation of the new long-term strategy, as
agreed by the Board of Directors and presented at the Annual
General Meeting, that necessitated the changes.

                      About BorsodChem

Headquartered in Kazincbarcika, Hungary, BorsodChem Rt. --
http://www.borsodchem.hu/-- produces chlorine, chloric alkali,  
hydrochloric acid, caustic lye and PVC resins, and additives for
the plastic and rubber industries.  The Company exports its
products mainly to Western Europe.

The group's EBITDA for 2005 was HUF27.0 billion, 31.7% higher
than HUF20.5 billion in 2004.  BorsodChem's net profit was down
17.7%, to HUF14.4 billion in 2005, from HUF17.8 billion a year
ago.

At Dec. 31, 2005, BorsodChem had HUF237.9 billion in total
assets, HUF98.9 billion in total liabilities and HUF139.02
billion in total shareholders' equity.

                        *     *     *

The Company's long-term foreign and local issuer credit carry
Standard and Poor's BB rating with stable outlook.


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


ELAN CORP: European Commission Okays Tysabri for Marketing
----------------------------------------------------------
The European Commission approved the marketing of TYSABRI(TM)
(natalizumab) by Biogen Idec and Elan Corp. plc as a treatment
for relapsing remitting multiple sclerosis to delay the
progression of disability and reduce the frequency of relapses.  

TYSABRI is indicated as a single disease modifying therapy in
highly active relapsing remitting MS for patients with high
disease activity despite treatment with a beta-interferon or in
patients with rapidly evolving severe relapsing remitting MS.

The approval was based on a submission that included TYSABRI
two-year Phase III clinical trial data, findings from the
comprehensive safety evaluation, suggested labeling, and a risk
management plan designed to inform physicians and patients of
the benefits and risks of TYSABRI treatment and minimize the
potential risk of progressive multifocal leukoencephalopathy
(PML) and other opportunistic infections.

"[The approval] marks an important step forward for the European
MS patient community," said James C.  Mullen, Chief Executive
Officer, Biogen Idec.  "TYSABRI represents one of the most
significant advances in MS treatment in nearly 10 years and
provides patients living with this disabling disease an
important new therapeutic choice."

"This decision means that patients in Europe who are suffering
from this chronic, debilitating disease now have an effective
new treatment alternative," said Kelly Martin, President and
Chief Executive Officer, Elan.

This action follows a recommendation made by the Committee for
Medicinal Products for Human Use (CHMP), the scientific
committee of the European Medicines Agency (EMEA), which on
April 28, 2006, issued a positive opinion recommending marketing
authorization for TYSABRI.

                      About the Company

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology    
company.  Elan shares trade on the New York, London and Dublin
Stock Exchanges.

                        *     *     *

As reported by TCR-Europe on May 2, 2005, the company's net loss
for the first quarter of 2005 amounted to US$115.6 million, an
increase of 86% over the US$62.2 million reported in the same
quarter of 2004.  Of the US$74.7 million net operating loss for
the first quarter of 2005, US$58.6 million related to Tysabri.  
Total revenue decreased 31% to US$102.7 million in the first
quarter of 2005 from US$148.3 million in the first quarter of
2004.

As reported in the TCR-Europe on June 19, Moody's Investors
Service revised the outlook on the ratings of Elan to stable
from negative.  At the same time, Moody's affirmed Elan's
ratings, including the B3 corporate family rating.  

These rating actions follow the recent FDA decision to approve
Tysabri for resumed marketing in the U.S.  The stable outlook
reflects Moody's current assumption that with a reasonably
successful Tysabri re-launch, Elan is more likely to meet its
2008 debt maturities with a combination of internal funds and
refinancing in the event of a shortfall.

Moody's expects that the market acceptance of Tysabri will be a
critical factor driving any future changes in Elan's credit
rating.

Ratings affirmed:

Elan Corporation, plc

   -- B3 corporate family rating

Elan Finance plc

   -- B3 fixed-rate senior notes of US$850 million due 2011
      (guaranteed by Elan Corporation, plc and subsidiaries)

   -- B3 floating rate senior notes of US$300 million due 2011
      (guaranteed by Elan Corporation, plc and subsidiaries)

Athena Neurosciences Finance, LLC

   -- B3 senior notes of US$613 million due 2008 (guaranteed by
      Elan Corporation, plc and subsidiaries)


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


ALITALIA SPA: Cuts Net Debt to EUR914 Million
---------------------------------------------
Alitalia S.p.A. disclosed that the Group's net debt as of
May 31, 2006, amounted to EUR914 million, with a reduction in
net indebtedness of EUR30 million (-3.2%) compared to the
situation on April 30, 2006, which was EUR944 million.

The net debt of the parent company Alitalia on May 31, 2006,
amounted to EUR890 million, with a reduction in net indebtedness
of EUR21 million (-2.3%) compared to the situation on April 30,
2006, which was EUR911 million (management figures).

The Group's cash-to-hand and short-term financial credits on
May 31, 2006, amounted to EUR932 million, in line with the
figures for April 30, 2006.  

It should be pointed out that, in line with Italian securities
regulator CONSOB recommendations data regarding current portions
of amounts falling due within twelve months are no longer
classified under medium-/long-term indebtedness, but now form
part of data relating to short-term financial debt.

                            April 30, 2006         May 31, 2006
                           Group   Alitalia      Group  Alitalia
                           -----   --------      -----   -------
Cash-on-hand and short-   (931)      (972)      (932)     (964)  
term financial credits   

Short-term financial       158        166        179       187
indebtedness               (*)        (*)        (*)       (*)

Net short-term
financial                 (773)      (806)      (753)     (777)
indebtedness

Medium/long-term         1,717      1,717      1,667     1,667
indebtedness   

Net
Debt                       944        911        914       890

(*) of which current
installments of
medium/long-term financial
debts falling due  
within twelve months       155        155        152       152

(all figures in millions of euros)  

It should be noted that the figures in the above table reflect
the outcome of management analysis and include several estimated
items, which, however, do not affect the overall significance of
the information.

The observations on the most important changes that have taken
place during the two periods in question refer to the situation
for the Group.  However, given the preponderance of Alitalia
within the whole Group, these observations are in fact
representative of the parent company's performance alone; facts
and figures referring only to Alitalia are glossed by notes.    

It should be noted that on May 31, 2006, there were several
leasing contracts at the Group level -- referring almost
entirely to fleet aircraft mostly held by the parent company
amounting to EUR152 million -- whose capital share, including
lease closure value, amounted to EUR168 million, of which EUR29
million represent the current capital share falling due within
twelve months of the reference date, with EUR27 million held by
the parent company.  

By comparison, the same figure on April 30, 2006, amounted to
EUR170 million, of which EUR30 million falling due in the twelve
months from the reference date; the corresponding figures for
the parent company on April 30, 2006, amounted to EUR154 and
EUR28 million respectively.

It should also be noted that existing debts to banks are almost
entirely backed up by real guarantees (mortgages on aircraft) or
by personal guarantees (mainly guarantees issued by banks for
export credit).  The relative financing contracts contain
standard legal clauses relating to withdrawal.  None of the
contracts refer to specific requirements regarding assets or
economic/financial aspects, in order to maintain the credit
line.

During May 2006, repayments were made of medium/long-term
financing amounting to about EUR42 million, and a short-term
financing loan was set up with the Banca di Roma for EUR24
million.

Regarding debts of a financial, fiscal and social welfare
nature, there were no outstanding sums or payment irregularities
on May 31, 2006, both for the parent company and for
the other companies in the Group.

As far as debts of a commercial nature are concerned, there were
no outstanding sums or payment irregularities on May 31, 2006,
both for the parent company and for other Group companies,
except for those relating to disputed situations.

Regarding the latter, there were outstanding sums owed to some
airport management companies for disputed debts amounting to a
total of EUR83 million on May 31, 2006.  

In addition, decisions are still pending for the petitions filed
by Alitalia regarding the:

   -- nine injunctions issued by an airport management company
      for a total of about EUR21.8 million;

   -- another supplier has issued an injunction for about
      EUR470,000 relating to claims for unfulfilled contractual
      obligations;

   -- a further injunction has been issued by an IT services
      supplier for about EUR812,000;

   -- another injunction has been issued by a professional
      studio for EUR534,000 euros;

   -- a contractor for restructuring work has issued an
      injunction for about EUR635,000 euros;  and

   -- there are injunctions issued by four suppliers for a total
      of around EUR50,000.

Except for the above, there are no other injunction orders or
executive actions undertaken by creditors notified as of May 31,
2006, nor are there any threats by suppliers to suspend
operations.

                         About Alitalia

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

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


BANCA POPOLARE: Three Foreign Banks Eye Italian Lender
------------------------------------------------------
Societe Generale S.A., Fortis S.A./N.V. and Deutsche Bank AG are
seeking to buy Banca Popolare Italiana Scrl, Bloomberg News
cites Il Messaggero.

According to the Italian daily, the banks made no formal bid for
the Italian lender, which wants to prioritize its reorganization
before issuing any decision on the matter.

"Around October or November we will have a clearer picture to
decide the timeframe for an eventual alliance about which we
will talk about in 2007," Divo Gronchi, Banca Popolare Italiana
Chief Executive Officer, was quoted by Il Messaggero as saying.

                      About Deutsche Bank

Headquartered in Berlin, Germany, Deutsche Bank AG --
http://www.db.com/en/-- is a leading global investment bank  
with a strong and profitable private clients franchise.  The
bank has over EUR1 billion in assets and employs 64,103
employees in 130 countries.  A leader in Germany and Europe, the
bank is continuously growing in North America, Asia, and key
emerging markets.

                          About Fortis

Headquartered in Brussels, Belgium, Fortis S.A./N.V. --
http://www.fortis.be/-- is an international financial services  
provider engaged in banking and insurance.  The bank ranks among
the twenty largest financial institutions in Europe.  The
company is present in 50 countries and employs 58,000 people.

                     About Societe Generale

Headquartered in Paris, France, Societe Generale S.A. --
http://www.socgen.com/-- has operations in global investment  
management, retail banking and specialized financial services,
and corporate and investment banking, focusing on European
capital markets, derivatives, and structured finance.  The
company has more than 2,700 branches in France, and another
1,500 abroad.

                  About Banca Popolare Italiana

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.  
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                        *     *     *

As reported in the TCR-Europe on April 3, Fitch Ratings
downgraded Banca Popolare Italiana's Issuer Default and Short-
term ratings to BBB from BBB+ and F3 from F2 respectively.  Its
Individual and Support rating are affirmed at C and 3
respectively.  Its senior debt and trust preferred stock are
also downgraded to BBB and BB+ respectively from BBB+ and BBB-.
The Issuer Default, Short-term and Individual ratings are
removed from Rating Watch Negative.  A Stable Outlook is
assigned for the Issuer Default rating.


FIAT SPA: Deutsche Bank Reveals Intention to Bid for Fidis
----------------------------------------------------------
Vincenzo Figarola De Bustis, the head of Deutsche Bank AG,
revealed the company's intention to bid for Fiat S.p.A.'s Fidis
Unit for an undisclosed amount, Bloomberg reports.

As reported in TCR-Europe on June 9, Fiat confirmed that it is
looking into several evaluations to identify a sole partner for
Fidis Retail Italia SpA, Fiat Auto's financial services arm, but
no final decision is yet made.  

Fiat might sell 51% of Fidis for approximately EUR1 billion to a
foreign bank as soon as this month, Bloomberg News cited Italian
daily la Repubblica.  According to the report, BNP Paribas SA,
Credit Agricole SA, Societe Generale and Deutsche Bank AG have
expressed interest in acquiring the equity stake.

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

                        *     *     *

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

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


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


AI-JOL: Creditors Must File Claims by July 14
---------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Firm Ai-Jol insolvent on April 27 without the
introduction of bankruptcy proceedings.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Pobedy Ave. 5
         Pavlodar
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 32-38-46


ALMAGUL: Creditors Must File Claims by July 14
----------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
LLP Almagul declared insolvent on April 27 without the
introduction of bankruptcy proceedings.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Pobedy Ave. 5
         Pavlodar
         Pavlodar Region  
         Kazakhstan
         Tel: 8 (3182) 32-38-46


ARUAK: Proof of Claim Deadline Slated for July 14
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Aruak insolvent.

Creditors have until July 14 to submit written proofs of claim
to:

         LLP Aruak
         Maulenova Str. 92
         Almaty, Kazakhstan
         Tel: 8 (3272) 67-63-59


AUYL: Proof of Claim Deadline Slated for July 14
------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Auyl insolvent on April 25.

Creditors have until July 14 to submit written proofs of claim
to:

         LLP Auyl
         Micro District Musheltoi 12-59
         Taldykorgan
         Almaty Region
         Kazakhstan
         Tel: 8 (3282) 30-00-22


BASTAUSHI-OMIR: Creditors' Claims Due July 14
---------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Bastaushi-Omir insolvent on April 28 without
the introduction of bankruptcy proceedings.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Myzy Str. 2/1
         Ust-Kamenogorsk, East Kazakhstan Region
         Tel: 8 (3232) 24-06-50


BIZNES: Creditors' Claims Due July 14
-------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Biznes insolvent on April 28 without the
introduction of bankruptcy proceedings.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Pobedy Ave. 5
         Pavlodar
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 32-38-46


DARIO: Claims Registration Ends July 14
---------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region LLP declared LLP Dario insolvent without the introduction
of bankruptcy proceedings.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Karaganda Region
         Jambyl Str. 9
         Karaganda
         Karaganda Region
         Kazakhstan


GAIANE: Claims Registration Ends July 14
----------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Gaiane insolvent on April 27 without the
introduction of bankruptcy proceedings.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Pobedy Ave. 5
         Pavlodar
         Pavlodar Region  
         Kazakhstan
         Tel: 8 (3182) 32-38-46


POLIS: Creditors Must Submit Claims by July 14
----------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
Region declared LLP Polis insolvent on April 20.

Creditors have until July 14 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan Region
         Seifullina Str. 39-16
         Uralsk, West Kazakhstan Region
         Kazakhstan
         Tel: 8 (3112) 51-27-24


POLITEHNIKS: Proof of Claim Deadline Slated for July 14
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Politehniks insolvent on April 26.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until July 14 to submit written proofs of claim
to the insolvency manager at:

         LLP Politehniks
         Lunacharskogo Str. 49
         Pavlodar
         Pavlodar Region
         Tel: 8 (3182) 55-32-62


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


GETRONICS NV: Sells Regional Operations to Kapsch Group
-------------------------------------------------------
Getronics N.V. and Kapsch Group, a family-owned specialist
Austrian Communications and Information Technology company,
disclosed an agreement under which Kapsch will acquire the
business activities of Getronics in Austria, the Czech Republic,
Slovakia and Poland.  Getronics will continue to maintain a
strong presence in the region through its Global Service Centre
in Budapest.

Getronics, the international workspace ICT services company, has
signed an agreement with Kapsch group whereby the business
assets and liabilities of Getronics Austria, and all shares in
Getronics Czech Republic, Slovakia and Poland will be
transferred to Kapsch.  The agreement, conditional upon
regulatory (anti-trust) procedures, is expected to close by mid-
September 2006.  The deal is proceeding in full accordance with
all relevant laws and regulations.

The decision to sell Getronics' operations in Austria, the Czech
Republic, Slovakia and Poland was the result of a thorough
strategic review of the company's operations in late 2005.  
Early in 2006, Getronics, assisted by KPMG Corporate Finance,
began looking for a suitable strategic business partner in the
region.  Kapsch was selected because of its excellent reputation
and the considerable potential synergies arising from the deal.

By acquiring Getronics' Austrian, Czech, Slovak and Polish
operations, Kapsch will be able to expand its presence in the
ICT market, leveraging the high quality ICT services delivery
capabilities and the skilled personnel of the Getronics
operation and its coverage in the region.  This deal enables
Getronics to focus on strengthening and expanding its core
businesses worldwide while continuing to provide the same high
levels of service to its international clients in the Austrian,
Czech, Slovak and Polish markets through its strategic business
partner and its Global Service Centres.

Getronics' Hungarian operations and, in particular, its Global
Service Center in Budapest will continue to play an important
role in Getronics' global operations and will remain a key hub
for servicing its clients in Eastern Europe and the rest of the
world.  Getronics' Austrian, Czech and Polish operations employ
approximately 270 people and had a turnover in 2005 of
approximately EUR45million.  No further financial details will
be disclosed.

                      About Getronics

Headquartered in Amsterdam, Netherlands, Getronics N.V. --
http://www.getronics.com/-- designs, integrates and manages ICT  
infrastructures and business solutions for many of the world's
largest global and local companies and organizations, helping
them maximize the value of their information technology
investments.  Getronics has some 27,000 employees in over 30
countries and approximate revenues of EUR3 billion.   The
company has regional offices in Boston, Madrid and Singapore.  
Its shares are traded on Euronext Amsterdam.

                        *     *     *

As reported in the TCR-Europe on March 9, Standard & Poor's
Ratings Services lowered its long-term corporate credit rating
on Dutch IT services group Getronics N.V. to 'B' from 'B+'.

At the same time, Standard & Poor's lowered its ratings on
Getronics' senior unsecured notes to 'CCC+' from 'B-', still two
notches below the corporate credit rating.  Standard & Poor's
also lowered its ratings on Getronics' EUR300 million senior
secured bank loan to 'B' from 'B+', the same as the corporate
credit rating.  The loan has a '3' recovery rating, indicating
expectation of meaningful (50%-80%) recovery of principal in the
event of a payment default.


NORTH WESTERLY: S&P Assigns BB Rating to Class E Notes
------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR369 million secured floating-rate notes
to be issued by North Westerly CLO III B.V., a special purpose
entity.  At the same time, EUR40.8 million unrated notes will be
issued.  A proportion of the rated notes will be combined with a
proportion of the unrated subordinated notes to form combination
notes.

At closing, North Westerly III will issue the notes.  It will
use the proceeds to pay all upfront fees and expenses, and then
acquire a portfolio of senior secured debt obligations, second
secured debt obligations, and unsecured debt obligations.  NIBC
Bank N.V. will manage the portfolio.  The manager can exercise
discretionary trades during the six-year reinvestment period but
is restricted to reinvesting only unscheduled proceeds and
proceeds from the sale of credit-risk and credit-improved
obligations thereafter.
  
North Westerly II is a Dutch SPE that is expected to comply with
Standard & Poor's bankruptcy-remoteness criteria.  Its
activities will be limited to acquiring the portfolio, issuing
the notes, and engaging in certain related activities.
  
This is the third CLO managed by NIBC Bank.  It follows North
Westerly I B.V., which closed in June 2003, and North Westerly
II B.V., which closed in September 2004.
     
                        Ratings List
               North Westerly CLO III B.V.
        EUR409.8 Million Secured Floating-Rate Notes

                           Prelim.        Prelim.
          Class            rating         amount (Mil. EUR)
          -----            ------         ------
            A               AAA            290.0
            B               AA              32.0
            C               A               17.0
            D               BBB             15.5
            E               BB              14.5
            Subordinated    NR              40.8
            Combination notes
            P (1)           NR               TBD
            Q (1)           BBB              7.0
            R (1)           NR               TBD
  
        (1) The amounts of the combination notes are not
            included in the total issuance amount as they are
            drawn from other classes.  

       NR - Not rated.  
      TBD - To be determined.


WOOD STREET: Moody's Rates EUR16.5-Mln Class E Notes at Ba3
------------------------------------------------------------
Moody's assigned these ratings to seven classes of notes and two
classes of combination notes issued by Wood Street CLO III B.V.,
a bankruptcy remote special purpose vehicle incorporated in the
Netherlands:

   -- EUR137,500,000 Class A-1 Senior Secured Floating Rate
Notes: Aaa;

   -- EUR187,000,000 Class A-2A Senior Secured Floating Rate
Notes: Aaa;

   -- EUR33,000,000 Class A-2B Senior Secured Floating Rate
Notes: Aaa;  

   -- EUR49,500,000 Class B Senior Secured Floating Rate Notes:
Aa2;

   -- EUR44,000,000 Class C Senior Secured Deferrable Floating
Rate Notes: A2;

   -- EUR24,750,000 Class D Senior Secured Deferrable Floating
Rate Notes: Baa3;

   -- EUR16,500,000 Class E Senior Secured Deferrable Floating
Rate Notes: Ba3;

   -- EUR10,000,000 Class U Combination Notes: Baa2; and

   -- EUR5,000,000 Class V Combination Notes: A2.

These ratings are based upon:

   -- an assessment of the credit quality and of the
diversification of the assets in the initial portfolio;

   -- an assessment of the eligibility criteria applicable to
the future additions to the portfolio;

   -- the overcollateralization of the notes;

   -- the protection against losses through the subordination of
the Class B, C, D, E notes, the EUR57,750,000 subordinated
notes and the excess spread available in the transaction;
and

   -- the legal and structural integrity of the issue.

The ratings of the notes other than the combination notes
address the expected loss posed to investors by the legal
maturity of each class in 2022.  With respect to each class of
combination notes, the rating address the expected loss posed to
investors by the legal final maturity in 2022 as a proportion of
the Rated Balance, where the Rated Balance is equal, at any
time, to the principal amount of the 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.

This transaction is a high yield collateralized loan obligation
related to a portfolio of mainly senior and mezzanine loans.
Alcentra Limited dynamically manages this portfolio.  This is
the tenth European arbitrage CLO transaction managed Alcentra.  
This portfolio will be partially acquired at closing date and
partially during the eight-month ramp-up period at the end of
which the portfolio shall comply amongst others with certain
quality tests.  Thereafter, the portfolio of loans will be
actively managed and the portfolio manager will have the option
to direct the issuer to buy or sell loans.  Any addition or
removal of loans will be subject to a number of portfolio
criteria.

In this transaction, investors are not directly exposed to
currency risk, as potential non-euro assets included in the
portfolio will be hedged with individual asset swaps.


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


AKER KVAERNER: Inks EUR60-Mln Power Boiler Deal with KFx Inc.
-------------------------------------------------------------
Aker Kvaerner has been awarded a contract for the supply of a
power boiler island to KFx Inc., which is developing its coal
beneficiation facility at their Buckskin plant in Wyoming, U.S.  
The contract value to Aker Kvaerner is approximately EUR60
million.

KFx Inc. will use the new power boiler to produce steam for
KFx's coal beneficiation process, which utilises heat and
pressure to physically and chemically transform high moisture,
low heating value coals, into more energy efficient, lower
emission fuel.

Kvaerner Power, part of the Aker Kvaerner group, will supply the
coal-fired power boiler to KFx's Buckskin plant. The power
boiler will use circulating fluidized bed technology and will
have a steam capacity of 88 kilograms per second.  The new
boiler island will be ready in December 2008.  

                          Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner Oil & Gas --
http://www.akerkvaerner.com/-- provides products and services  
for the offshore upstream oil and gas industry.  The group has
operations in Norway, the U.K. and the U.S.  In 2005, the group
booked revenues and EBITDA of NOK28.2 billion and NOK1.7 billion
respectively.

                        *     *     *

As reported in TCR-Europe on April 26, Moody's Investors Service
upgraded the ratings of Aker Kvaerner Oil & Gas Group and its
subsidiary Aker Kvaerner AS, primarily to reflect the
sustainable strong recovery in profitability and cash flow
generation of the ring-fenced oil and gas group over the past
two years, coupled with the clear reduction in senior debt,
repaid from internally generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS

   -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

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

As reported in TCR-Europe on April 24, Fitch Ratings upgraded
Norway-based Aker Kvaerner Oil & Gas Group AS's Issuer Default
Rating to BB+ from BB.  Fitch said the Outlook remains Positive.  
The rating of the EUR260 million second-lien bond issue
guaranteed by AK O&G is also upgraded to BB+ from BB.


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


NETIA SA: Registers Share Capital Increase & Structure
------------------------------------------------------
Netia SA received a decision of the Regional Court in Warsaw
with regard to:

    * registration on June 22, of Netia's share capital
      increase; and

    * a change to the number of ordinary bearer series J shares,
      reflecting the status as of May 8, which was the last
      day of settlement by Krajowy Depozyt Papierow
      Wartos'ciowych SA (National Deposit of Securities) of
      transactions regarding the exercise of Netia's there-year
      subscription warrants by their holders, who subscribed for
      series J shares until April 29.

Following the registration of the increase, the Company's share
capital indicated in the Polish court amounts to PLN389,167,839
and represents 389,167,839 shares, PLN1 par value per share,
with each share entitling to one vote at Netia's general meeting
of shareholders.  

The number of the ordinary bearer series J shares indicated in
the Polish court following the registration amounts to
62,464,062.

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
===========


BALASHOVSKIY: Bankruptcy Hearing Slated for July 27
---------------------------------------------------
The Arbitration Court of Saratov Region will convene on July 27,
at 2:50 p.m. to hear the bankruptcy supervision procedure on
OJSC Meat Combine Balashovskiy.  The case was docketed under
Case No. A-57-69B/06-31.

The Temporary Insolvency Manager is:

         S. Khoryukov
         Room 2
         Michurina Str. 50
         410056 Saratov Region
         Russia

The Debtor can be reached at:

         OJSC Meat Combine Balashovskiy
         Tikhiy Per. 9
         Balashov
         412300, Saratov Region
         Russia


BAYKALSKAYA SHIPBUILDING: K. Sobolev to Manage Assets
-----------------------------------------------------
The Arbitration Court of Buryatiya Republic appointed Mr. K.
Sobolev as insolvency manager for CJSC Baykalskaya Shipbuilding
Company.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A10-4013/05.

The Debtor can be reached at:

         CJSC Baykalskaya Shipbuilding Company
         Korabelnaya Str. 32
         Ulan-Ude
         Buryatiya Republic
         Russia


CHAINSKIY MASLODEL: Court Starts Bankruptcy Supervision
-------------------------------------------------------
The Arbitration Court of Tomsk Region has commenced bankruptcy
supervision procedure on OJSC Chainskiy Maslodel.  The case was
docketed under Case No. A67-20262/05.

The Temporary Insolvency Manager is:

         Y. Chigarev
         Office 10
         Komsomolskiy Pr. 58
         Sosnovka
         Tomsk Region
         Russia


DOROGINSKOYE: Court Names A. Demidov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Novosibirsk Region appointed Mr. A.
Demidov as insolvency manager for CJSC Doroginskoye.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-347/06-29/3.

The Debtor can be reached at:

         CJSC Doroginskoye
         Dorogin-Zaimka
         Cherepanovskiy Region
         633515 Novosibirsk Region
         Russia


GAZPROM: Shareholders Okay 2005 Annual Report
---------------------------------------------
The Annual General Shareholders' Meeting of Gazprom has approved
the Company's 2005 Annual Report and Accounting Statements
including Profit & Loss Accounts and decided on the distribution
of profit (dividends inclusive) based on the 2005 financial year
results.

Based on the Gazprom 2005 operating highlights, the
Shareholders' Meeting approved RUR1.5 per 1 share in dividends,
which is the maximum dividend amount ever paid out by the
Company.

The total sum earmarked as dividends payable based on the 2005
results accounts for RUR35.51 billion, or 17.5% of overall net
profit.  Dec. 31, 2006 was fixed as the dividend distribution
deadline.  These decisions are fully in line with the Board of
Directors' recommendations.

The Shareholders' Meeting also decided on the remuneration of
the Gazprom Board of Directors and Audit Commission Members, who
are not public officials, in the amount recommended by the Board
of Directors

                      PwC as Auditor

In compliance with the Board of Directors' recommendations, the
Annual General Shareholders' Meeting of OAO Gazprom has approved
PricewaterhouseCoopers Audit as the Company's auditor for 2006.

ZAO PricewaterhouseCoopers Audit is the company established
under the laws of the Russian Federation and being member of the
PricewaterhouseCoopers International Group of Companies -- a
global leader in auditing and consulting services.  The
PricewaterhouseCoopers Group provides professional services in
many locations worldwide through a network of its international
representative offices.

PricewaterhouseCoopers launched its business on the Russian
market back in 1913.  After a long period of absence the company
resumed its activity in Russia in 1989.

Gazprom and PricewaterhouseCoopers Audit started cooperating in
Russia in 1995.  Currently, the services of
PricewaterhouseCoopers Audit rendered to Gazprom include:

   -- auditing annual accounting statements of Gazprom (parent
      company) pursuant to the requirements of the Russian
      legislation;

   -- auditing annual consolidated accounting statements of
      Gazprom Group filed in accordance with the requirements of
      he Russian legislation; and

   -- auditing consolidated financial statements of Gazprom
      Group filed under the International Financial Reporting
      Standards.

PricewaterhouseCoopers Audit also serves as auditor for a range
of Gazprom's large subsidiaries.

                          About Gazprom

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

                         *     *     *

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

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

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


GAZPROM: Shareholders Name Dmitry Medvedev as New Board Chairman
----------------------------------------------------------------
Shareholders of Gazprom have elected Dmitry Medvedev, First
Deputy Chairman of the Government of the Russian Federation, as
Chairman of the Gazprom Board of Directors on June 30.

Alexey Miller, Chairman of the Gazprom Management Committee was
named as Deputy Chairman of the Board of Directors.

Based on the voting held during the Annual General Shareholders'
Meeting of Gazprom, 11 persons have been elected to the
Company's Board of Directors.

The newly elected Board of Directors' Members are:

   -- Ananenkov, Alexander Georgiyevich: Deputy Chairman of the
      Management Committee, OAO Gazprom;

   -- Bergmann, Burckhard: Chairman of the Executive Board, E.ON
      Ruhrgas AG;

   -- Fyodorov, Boris Grigoriyevich: Doctor of Science in
      Economics;

   -- Gazizullin, Farit Rafikovich: Member of the Board of
      Directors, OAO Gazprom;

   -- Gref German, Oskarovich: Economic Development and Trade
      Minister of the Russian Federation;

   -- Karpel, Elena Yevgeniyevna: Head of the Economic Expertise
      and Pricing Department, OAO Gazprom;

   -- Khristenko, Viktor Borisovich: Industry and Energy
      Minister of the Russian Federation;

   -- Medvedev, Dmitry Anatoliyevich: First Deputy Chairman of
      the Government of the Russian Federation;

   -- Miller, Alexey Borisovich: Chairman of the Management
      Committee, OAO Gazprom;

   -- Sereda, Mikhail Leonidovich: Deputy Chairman of the
      Management Committee and Head of the Administration, OAO
      Gazprom; and

   -- Yusufov, Igor Khanukovich: Special Envoy of the Russian
      Federation President for International Energy Cooperation;

In the election, 145,750 votes were against all candidates with
294,866 submitted as voting abstentions.

The Shareholders' Meeting also reelected the 9-member Audit
Commission and ratified a handful of transactions of corporate
interest to be potentially executed by Gazprom within regular
business activity.

The Shareholders' Meeting decided not to approve changes and
amendments in the Company's Articles of Association, brought
forward by a group of shareholders owning a total of 2.05
percent of corporate voting stock.

                          About Gazprom

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

                         *     *     *

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

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

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


GAZPROM: Inks Partnership Deal with Itera Oil
---------------------------------------------
Alexey Miller, Chairman of Gazprom's Management Committee have
signed a partnership agreement with Igor Markov, Chairman of the
Board of Directors of Itera Oil & Gas Company for 2006 to 2010.

In accordance with the agreement signed, Itera will take part in
expanding, reconstructing and modernizing the Gazprom Unified
Gas Supply System as stipulated by the General Scheme for the
Gas Industry's Development up to 2030.

Gazprom and Itera will also join efforts to develop and
implement a project aimed at erecting infrastructure for the
transmission of gas condensate from its production facilities,
located on the fields developed by both companies, to final
consumers.

Additionally, Gazprom and Itera will take part in creating joint
oil & gas chemicals production facilities.

The agreement contemplates that Itera will sell to Gazprom a
portion of the gas produced as well as will get involved in
supplying feedstock to Gazprom owned processing plants.

The companies intend to jointly take part in the socioeconomic
development of the regions of corporate interest and to take
measures for their environmental rehabilitation.

The joint projects set out in the Agreement will be implemented
in accordance with the agreements and contracts signed between
Gazprom and Itera.

                          About Gazprom

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

                         *     *     *

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

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

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


INTERNATIONAL BANK: Obtains EUR15-Mln Syndicated Term Loan
----------------------------------------------------------
JSC Vneshtorgbank and Moscow Narodny Bank Limited acting as
Mandated Lead Arrangers and Bookrunners have launched a EUR15
million syndication for International Bank of St. Petersburg.  
The loan bears a margin of 3.25 percent and has a tenor of 364
days with an extension option for a further 364 days.

Headquartered in Moscow, Russia, International Bank of St.
Petersburg -- http://www.ibsp.ru/en-- was founded in 1989 and  
is the seventh largest financial institution in St. Petersburg
and 71st largest Russian bank by assets.  IBSP core business is
corporate banking in the North-Western region of Russia.  The
Bank also services municipal budget of St. Petersburg.  IBSP has
a branch in Moscow and representative offices in Helsinki,
Tallinn and Astrakhan.

International Bank of St. Petersburg is rated B-/B by Fitch
Ratings with stable outlook and CCC+/C with stable outlook by
Standard & Poor's.


KISELEVSKIY CENTRE: Court Names V. Nikitenko to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Kemerovo Region appointed Mr. V.
Nikitenko as insolvency manager for CJSC Kiselevskiy Centre of
Energo-Mechanical Engineering.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A27-686/2006-4.

The Debtor can be reached at:

         CJSC Kiselevskiy Centre of
         Energo-Mechanical Engineering
         Kurganskaya Str. 15.
         Kiselevsk
         652701 Kemerovo Region
         Russia


MASLYANINSKIY FLAX: A. Shiyanov to Manage Insolvency Assets
-----------------------------------------------------------
The Arbitration Court of Novosibirsk Region appointed Mr. A.
Shiyanov as insolvency manager for LLC Corporation Maslyaninskiy
Flax Factory.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-24327/05-29/315.  

         Pushkina Str. 18B
         Kochenevo
         632640 Novosibirsk Region
         Russia

The Debtor can be reached at:

         LLC Corporation Maslyaninskiy Flax Factory
         Sadovaya Str. 81
         Maslyanino
         633561 Novosibirsk Region
         Russia


NOVOCHEBULINSKOYE: Court Names A. Levinov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Novosibirsk Region appointed Mr. A.
Levinov as insolvency manager for CJSC Novochebulinskoye (TIN
5413109834).

         A. Levinov
         Post User Box 22
         630129 Novosibirsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-10575/05-27/161.

The Debtor can be reached at:

         CJSC Novochebulinskoye
         Novaya Chebula.
         Bolotinskiy Region
         Novosibirsk Region
         Russia


NOVOPOKROVSKOYE: Osmk Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Osmk Region has commenced bankruptcy
supervision procedure on OJSC Novopokrovskoye.  The case is
docketed under Case No. A 46-2842/2006.

The Temporary Insolvency Manager is:

         A. Markelov
         Post User Box 5398
         644047 Osmk-47
         Russia

The Debtor can be reached at:

         OJSC Novopokrovskoye
         Krutinskiy Region
         Osmk Region
         Russia


NOVOSIBIRSKAYA MACARONI: V. Fedchenko to Manage Assets
------------------------------------------------------
The Arbitration Court of Novosibirsk Region appointed Mr. V.
Fedchenko as insolvency manager for OJSC Novosibirskaya Macaroni
Factory.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-11080/03-SB/207.

The Debtor can be reached at:

         OJSC Novosibirskaya Macaroni Factory
         Fabrichnaya Str. 33.
         630007 Novosibirsk Region
         Russia


NOVOSIBIRSKIY WOOD-COMBINE: S. Dubnovets to Manage Assets
---------------------------------------------------------
The Arbitration Court of Novosibirsk Region appointed Mr. S.
Dubnovets as insolvency manager for OJSC Novosibirskiy Wood-
Combine.  He can be reached at:

         S. Dubnovets
         1st Chulymskaya Str. 112/1
         630029 Novosibirsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-23484/05-27/303.

The Debtor can be reached at:

         OJSC Novosibirskiy Wood-Combine
         1st Chulymskaya Str. 112/1
         630029 Novosibirsk Region
         Russia


OMSKIY CRYOGENIC: Omsk Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Arbitration Court of Omsk Region has commenced bankruptcy
supervision procedure on CJSC Omskiy Factory of Cryogenic
Engineering.

The case is docketed under Case No. K/E-278/05.

The Temporary Insolvency Manager is:

         E. Vitkovskiy
         Office 1
         5th Armii Str. 4
         644122 Omsk Region
         Russia

The Debtor can be reached at:

         CJSC Omskiy Factory of Cryogenic Engineering
         22 Partsyezda Str. 97
         644015 Omsk Region
         Russia


PROM-ENERGO-RESOURCE: Court Commences Bankruptcy Supervision
------------------------------------------------------------
The Arbitration Court of Kemerovo Region has commenced
bankruptcy supervision procedure on LLC Insurance Company Prom-
Energo-Resource.  The case is docketed under Case No. A27-
6660/2006-4.

The Temporary Insolvency Manager is:

         T. Orlova
         Office 320
         Demyana Bednogo Str. 1
         Kemerovo
         Russia

The Debtor can be reached at:

         LLC Insurance Company Prom-Energo-Resource
         Apartment 621
         Ostrovskogo Str. 12
         Kemerovo
         Russia


PYATEROCHKA HOLDING: Launches US$50 Million GDR Purchase Program
----------------------------------------------------------------
Pyaterochka Holding N.V. has launched a Global Depositary
Receipt purchase program to meet its expected obligations under
the company's employee stock option program.  The GDR purchase
program begins June 30 and is expected to run through to the end
of 2006, subject to market conditions.  The total value of this
GDR purchase program in 2006 is currently planned to reach US$50
million.

Pyaterochka Holding N.V.'s existing employee stock option
programme is capped at a total of US$150 million over a five-
year period.  The first stock options were issued to employees
in 2005, and will be exercisable from 2008.

Pyaterochka Holding N.V. will make further announcements
relating to the GDR purchase programme, as appropriate,
including the date of the purchase, the number of GDRs
purchased, the price paid, the number of GDRs held in treasury
and the number of GDRs remaining in issue.

Headquartered in the Netherlands, Pyaterochka Holding N.V. --
http://www.e5.ru/english-- is a leading Russian food retailer  
operating a large store network largely covering the Moscow
region and St. Petersburg but also with a good presence in other
Russian regions through its franchise operations.  The company
has recently acquired two of its successful regional franchise
operations -- in Yekaterinburg and Chelyabinsk.  Pyaterochka's
2004 net revenues were US$1.1 billion.  The company had
unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on April 18, Moody's Investors Service
placed the Ba3 corporate family rating and the Aa3.ru national
scale rating of Pyaterochka Holding N.V. under review for
possible downgrade.  


ROSNEFT: Acquires 97.51% Equity Stake in Nakhoda Oil Harbor
-----------------------------------------------------------
OAO Rosneft and the Alliance Group have finalized a deal
involving Rosneft's acquisition from the Alliance Oil Company of
97.51% in the charter capital of Nakhodkinsky Neftenalivnoy
Morskoy Torgovy Port.  The capital represents 1,271,385 of
common registered shares.

The Nakhodka Oil-Loading Commercial Harbour is located in the
Novitsky bay on the Western bank of the Nakhodka Gulf and is the
largest specialist commercial seaport on Russia's Pacific coast.  
The oil harbor is open for navigation all year-round and does
not require ships to be accompanied by ice-breakers during the
winter months.

In 2005, the Nakhodka oil harbor shipped around 6 million tons
of oil products and serviced over 1,000 vessels.

The Nakhodka oil harbor comprises one of the links in the single
technological and infrastructure chain for Rosneft's storage and
transshipment of oil products.  With its acquisition of the
Nakhodka oil harbor, Rosneft has therefore completed the
establishment in Nakhodka Bay of a single self-contained
industrial complex, one of the largest not only in the Far East,
but throughout Russia.

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

                        *     *     *

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


TNK-BP INTERNATIONAL: S&P Raises Credit Rating to BB+
-----------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit ratings on TNK-BP International Ltd. and
related entities to 'BB+' from 'BB'.  The outlook is stable.
The ratings were removed from CreditWatch with positive
implications, where they had been placed on May 12.

At the same time, Standard & Poor's affirmed its 'B' short-term
corporate credit rating on the group.
     
"The upgrade recognizes TNK-BP's continued success in operating
in the Russian oil and gas market and in dealing with country-
related risks, as evidenced by the group's recent extension of
two of its licenses related to its core Samotlor field," said
Standard & Poor's credit analyst Karl Nietvelt.
     
Samotlor accounted for 41% of group production in 2005. The
upgrade also follows TNK-BP's success in obtaining nine new
exploration and production licenses during 2005.
    
In addition, visibility has increased on the group's 2002-2003
tax audit outcomes.  Initial tax acts had been issued by the
federal tax authorities, for which TNK-BP has provisioned US$1.5
billion.  Related future cash outflows should be manageable, as
TNK-BP's financials are currently very robust.
     
The stable outlook factors in the maintenance of TNK-BP's cost
competitiveness, even under a normalized oil pricing
environment; our expectations that operating cash flow to net
debt will remain above 50%; and the group's ability to fund the
bulk of its significantly increased organic investment program
from internal cash flow generation.
     
Debt levels are likely to steadily trend upward from current
lows, but we do not expect leverage to increase to the maximum
50% policy level and remain there.  If it did, this would equate
to sizable net debt of roughly US$10 billion, and as a result
financial flexibility would be greatly reduced.
     
Near-term rating upside is limited due to the dynamic Russian
regulatory environment, including ongoing changes to the subsoil
law, which might restrict access to large new resources for
entities not majority controlled by Russian shareholders,
including, potentially, TNK-BP.  The increasingly dominant role
of state-owned players in the Russian oil and gas market also
creates a degree of uncertainty.

"An upgrade is not excluded in the medium term, but it would
depend on the regulatory and operating environment in Russia,
particularly following the presidential elections in early
2008," added Mr. Nietvelt.

If TNK-BP were to successfully resolve the challenges it
currently faces in developing its gas projects through working
with Russian OAO Gazprom, we would also consider this a positive
credit factor.  Additionally, for the ratings on the group to
reach investment grade, we would expect a continued disciplined
financial policy, and no changes in ownership of the company.


TROITSKIY BUTTER-CHEESE: Bankruptcy Hearing Slated for July 24
--------------------------------------------------------------
The Arbitration Court of Altay Region will convene on July 24 to
hear the bankruptcy proceedings against OJSC Troitskiy Butter-
Cheese Factory.  

The case is docketed under Case No. A03-12723/05-B.  

The Insolvency Manager is:

         S. Pupkov
         Post User Box 130
         Vorovskogo Str. 140
         Barnaul
         656002 Altay Region
         Russia

The Debtor can be reached at:

         OJSC Troitskiy Butter-Cheese Factory
         Troitskoye
         Troitskiy Region
         Altay Region
         Russia


VNESHTORGBANK: Launches EUR15-Million Bank Loan for IBSP
--------------------------------------------------------
JSC Vneshtorgbank and Moscow Narodny Bank Limited acting as
Mandated Lead Arrangers and Bookrunners have launched a
EUR15 million syndication for International Bank of St.
Petersburg.  The loan bears a margin of 3.25 percent and has a
tenor of 364 days with an extension option for a further 364
days.

                      About the Company

Headquartered in Moscow, Russia, JSC Vneshtorgbank and its
subsidiaries are a leading Russian commercial banking group,
offering a wide range of banking services and conducting
operations in both Russian and international markets.  As of
Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions.  The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.

At the beginning of 2006, VTB purchased a 98% stake in the Bank
Mriya located in Ukraine.  VTB has operated under a full banking
License No. 1000 from the Central Bank of the Russian Federation
since 1990.  With 23,145 employees as of Dec. 31, 2005, the
Group operates in the commercial banking sector including
deposit taking and commercial lending, support of clients'
export/import transactions, foreign exchange, securities
trading, and trading in derivative financial instruments.  The
Government of the Russian Federation is the main shareholder of
VTB and owns through the Federal Property Management Agency
99.9% of its registered share capital.  

                        *     *     *

As reported in TCR-Europe on March 30, Fitch Ratings assigned
Russia's JSC Vneshtorgbank a Local Currency Issuer Default
Rating of BBB.  VTB's other ratings are Foreign Currency IDR
BBB/Stable Outlook, Short-term F3, Support 2, and Individual
C/D.


ZOLOTAYA GRIVA: Bankruptcy Hearing Slated for Aug. 7
----------------------------------------------------
The Arbitration Court of Novosibirsk Region will convene on
Aug. 7 at 9:30 a.m. to hear the bankruptcy supervision procedure
on OJSC Zolotaya Griva.  The case is docketed under Case No.
A45-7498/06-54/141.

The Temporary Insolvency Manager is:

         V. Makarov         
         Krasnoobsk, Post User Box 325
         630501 Novosibirsk Region
         Russia

The Debtor can be reached at:

         OJSC Zolotaya Griva
         Zolotaya Griva
         Chulymskiy Region
         632583 Novosibirsk Region
         Russia


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


FONCAIXA FTGENCAT 4: Moody's Junks EUR6 Million Series E Notes
--------------------------------------------------------------
Moody's Investors Service assigned provisional credit ratings to
six series of Bonos de Titulizacion de Activos issued by
FONCAIXA FTGENCAT 4 Fondo de Titulizacion de Activos, a Spanish
Asset Securitization Fund created by Gesticaixa, S.G.F.T, S.A.

Ratings assigned:

   -- EUR251.2 million Series A(S) notes: (P)Aaa;
   -- EUR326.0 million Series A(G) notes: (P)Aaa;
   -- EUR9.6 million Series B notes: (P)A2;
   -- EUR7.2 million Series C notes: (P)Baa2;
   -- EUR6.0 million Series D notes: (P)Ba1; and
   -- EUR6.0 million Series E notes: (P)C.

The provisional ratings address the expected loss posed to
investors by the legal final maturity on March 10, 2049.  In
Moody's opinion, the structure allows for timely payment of
interest and ultimate payment of principal at par on or before
the rated final legal maturity date on Classes A/B/C/D, and for
ultimate payment of interest and principal at par on or before
the rated final legal maturity date on Class E.  The ratings do
not address full redemption of the Notes on the expected
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.

FONCAIXA FTGENCAT 4, FTA, a securitization of small- and medium-
sized entreprises loans under the FTGENCAT program carried out
by La Caixa, S.A., comes after the concession by the Economy
Department of Catalonia of a new guarantee budget for the
current year.

Strong features within this deal include among others:

   -- a strong swap agreement guaranteeing an excess spread of
0.50%;

   -- a 1.00% reserve fund to cover potential shortfalls in
interest or principal;

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

   -- the guarantee of the Generalitat of Catalonia, as concerns
the Series A(G) notes; and

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

Weaker features include:

   -- pro-rata amortization of the notes;

   -- strong geographical concentration in the region of
Catalonia; 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 was, as of June 2006,
made up of a portfolio of 14,258 loans and 12,251 borrowers,
granted to Catalan enterprises.  The loans have been originated
between 1988 and 2006, with a weighted average seasoning of 2.62
years and a weighted average remaining life of 13.69 years.  The
weighted average interest rate is 3.83%.  Around 76.50% 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 52.84%.  Geographically the pool
is concentrated in Catalonia.

Moody's based the provisional 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 account,
the guaranteed excess spread, the reserve fund and the
subordination of the notes; and

   -- the legal and structural integrity of the transaction.

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


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

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

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

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

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

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

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

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

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

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

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

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

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

Moody's has based its ratings on:

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

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

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


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


PROFILO TELRA: Fitch Assigns Local Currency IDR at B
----------------------------------------------------
Fitch Ratings assigned Profilo Telra Elektronik Sanayi ve
Ticaret A.S. a local currency Issuer Default rating of B, with
Stable Outlook.  At the same time Fitch assigned Profilo a
National Long-term rating of BBB+ with a Stable Outlook.

The ratings reflect Profilo's adequate export revenues, securing
both foreign currency inflows and the geographical
diversification of the business.  It also has a technologically
up-to-date product portfolio, and recently established strategic
branding and production partnerships.

However, Profilo also has a weak capitalization base, with total
adjusted debt to total adjusted capitalization at 82% at end-
FY05, and the company's cash flows have been irregular over the
last three years.  Profilo is third largest Turkish TV
manufacturer, behind Vestel and Beko.

About half of Profilo's production is dedicated to branded
products, which partially immunizes it against the heightened
price competition which is a feature of B-brand product ranges.
From 2006 onwards the company plans to mitigate price
competition risks with an increased premium product portfolio.

Fitch expects the company's profitability to recover as the
reasons for revenue and operating profit contraction in FY05 -
namely, strong price competition in the domestic market, a
negative 12% FX impact and industry-wide supply problems - have
all subsided.  Further to its significant R&D and capacity
expansion investments in FY05, and its newly forged branding
partnerships, Profilo is dedicating about 1 million units of its
production to premium segments.  This effectively positions the
company in the market as a medium-scale innovator with a high-
technology product range.

In terms of cost structure, about 90% of cost of goods sold is
components, where half of the component cost is displays.  Gross
profit is thus exposed to component prices and Profilo's ability
to pass on these prices to its end-customers.  The company's
ability to develop technological partnership arrangements and
increased share of premium priced products in the overall
portfolio serve to mitigate component and sales pricing ability
risks.

At FYE05, Profilo's net debt stood at TRY142 million, most of
which is short-term unsecured bank debt.  Most of the bank loans
remain counter-guaranteed by the assignment of export documents
or letters of credit from export contracts as well as promissory
notes received from domestic sales, as is common Turkish
corporate banking practice.  Off-balance-sheet liabilities
amount to TRY132 million, consisting of export commitments and
letters of guarantee and promissory notes, all of which are
associated with the company's foreign trade activities.

Profilo Telra is the largest entity within the privately owned
Profilo Group, which has interests in real estate, shipbuilding,
tourism and various industrial production ventures.  Profilo
commands 14.4% of the 3.4 million unit domestic market.  It is
also the third-largest TV producer in Europe after Vestel and
Beko, with production capacity of 5 million units.  It has
annual production capacity of 1 million units of DVD players,
satellite and terrestrial receivers and electronic cash
registers.


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


AGROLIT: Court Appoints Mikola Kaluzhnij as Insolvency Manager
--------------------------------------------------------------
The Economic Court of Sumi Region appointed Mikola Kaluzhnij as
Liquidator/Insolvency Manager for LLC Agrolit (code EDRPOU
30749121).  He can be reached at:

         Mikola Kaluzhnij
         Karl Libkneht Str. 43         
         Bilopillya
         41800 Sumi Region
         Tel: 8 (0543) 9-28-74
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on Jan. 5.  

The Economic Court of Sumi Region is located at:  

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         LLC Agrolit
         50 Rokiv SRSR Str. 2
         Yampil
         41200 Sumi Region
         Ukraine


AGROPRODUKT: Mikolaiv Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Mikolaiv Region commenced bankruptcy
supervision procedure on LLC Agroprodukt (code EDRPOU 30348780)
on April 28.  The case is docketed under Case No. 10/202/2006.

The Temporary Insolvency Manager is:

         Sergij Avilov
         Gagarin Str. 29/175
         Brovari
         07400 Kyiv Region
         Ukraine

The Economic Court of Mikolaiv Region is located at:

         Admiralska Str. 22
         54009 Mikolaiv Region
         Ukraine

The Debtor can be reached at:

         LLC Agroprodukt
         Urozhajna Str. 1
         Shevchenkove
         Zhovtnevij District
         Mikolaiv Region
         Ukraine


ALKOR: Court Names Mikola Kaluzhnij to Manage Assets
----------------------------------------------------
The Economic Court of Sumi Region appointed Mikola Kaluzhnij as
Liquidator/Insolvency Manager for LLC Production-Commercial Firm
Alkor (code EDRPOU 14021187).  He can be reached at:

         Mikola Kaluzhnij
         Karl Libkneht Str. 43         
         Bilopillya
         41800 Sumi Region
         Ukraine
         Tel: 8 (0543) 9-28-74

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
7/104-05.

The Economic Court of Sumi Region is located at:  

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         LLC Production-Commercial Firm Alkor
         Baturinska Str. 65
         Konotop
         41600 Sumi Region


DRUZHBA: Vinnitsya Court Appoints Liquidator
--------------------------------------------
The Economic Court of Vinnitsya Region appointed the Vinnitsya
Regional Sector of Bankruptcy Questions as Liquidator for
Agricultural LLC Druzhba (code EDRPOU 30870108)

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 4.  The case is docketed
under Case No. 10/36-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Druzhba
         District Chemeriske
         Barskij
         23026 Vinnitsya Region
         Ukraine


KOLOS: Dnipropetrovsk Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Dnipropetrovsk Region commenced bankruptcy
supervision procedure on LLC Agrofirm Kolos (code EDRPOU
30847058) on March 28.  

The case is docketed under Case No. B 29/39/06.

The Temporary Insolvency Manager is:

         Mr. M. Lukashuk
         Krivij Rig, a/b 2558
         50051 Dnipropetrovsk Region
         Ukraine
         Tel: 8 (0564) 92-96-98

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Agrofirm Kolos
         Pidstepna Str. 29-A
         Zlatoustivka
         Krivij Rig District
         53073 Dnipropetrovsk Region
         Ukraine


KVARTA: Court Appoints V. Yurkiv to Liquidate Assets
----------------------------------------------------
The Economic Court of Ivano-Frankivsk Region appointed Mr. V.
Yurkiv as Liquidator/Insolvency Manager for LLC Kvarta (code
EDRPOU 22176082).  He can be reached at:

         V. Yurkiv
         Kalush
         Bilas i Danilishin Str. 14-a, a/b 86                           
         77304 Ivano-Frankivsk Region
         Ukraine
         Tel: 8 (03472) 5-12-25

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 13.  The case is docketed
under Case No. B-7/51.

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

         Shevchenko Str. 16a
         76000 Ivano-Frankivsk Region
         Ukraine

The Debtor can be reached at:

         LLC Kvarta
         Girnichoryatuvalna Str. 27/2
         Kalush
         77300 Ivano-Frankivsk Region
         Ukraine


PERSHOTRAVNEVE: Court Starts Bankruptcy Supervision
---------------------------------------------------
The Economic Court of Sumi Region commenced bankruptcy
supervision procedure on OJSC Pershotravneve (code EDRPOU
00386695) on March 10.  The case is docketed under Case No.
12/34.

The Temporary Insolvency Manager is:

         Oleksandr Sugonyako
         Kozatskij val Str. 2A
         40030 Sumi Region
         Ukraine
         Tel: 22-10-80

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine
         
The Debtor can be reached at:

         OJSC Pershotravneve
         Ulyanov Str. 1
         Sloboda
         Burinskij District
         41714 Sumi Region
         Ukraine


SMAK: Court Names Petro Stotskij as Insolvency Manager
------------------------------------------------------
The Economic Court of AR Krym Region appointed Petro Stotskij as
Liquidator/Insolvency Manager for LLC Smak (code EDRPOU
30376467).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 11.  The case is docketed
under Case No. 2-8/6644-2005.

The Economic Court of AR Krym Region is located at:  

         Karl Marks Str. 18
         Simferopol
         AR Krym Region
         Ukraine

The Debtor can be reached at:

         LLC Smak
         Karahanyan Str. 27
         Glazivka
         Leninskij District
         AR Krym Region
         Ukraine


SPARTAK: Court Names Oleksandr Bandola as Liquidator
----------------------------------------------------
The Economic Court of Kyiv Region appointed Oleksandr Bandola as
Liquidator/Insolvency Manager for LLC Spartak (code EDRPOU
20584173).

         Oleksandr Bandola
         Hohlovih Str. 6-B/31
         04119 Kyiv Region

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 6.  The case is docketed
under Case No. 89/14 b-05.

The Economic Court of Kyiv Region is located at:  

         Komintern Str. 165
         01032 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Spartak
         Nova Buda
         Borodyanskij District
         07823 Kyiv Region
         Ukraine


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


A. FOX: Appoints Joint Administrators from Kroll
------------------------------------------------
D.J. Whitehouse and P.F. Duffy of Kroll were appointed joint
administrators of A. Fox Systems Limited (Company Number
03564173) on June 6.

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

Headquartered in Barnsley, United Kingdom, A. Fox Systems
Limited distributes water detection units.


ADAL GROUP: Brings In Administrators from PKF
---------------------------------------------
Philip Armstrong, David S. Merrygold and Philip Long of PKF (UK)
LLP were appointed on June 6 joint administrators of:

   -- Adal Group (UK) Limited (Company Number 04937000),   
   -- Guilform Holdings Limited (Company Number 01239256),
   -- Adal Seco Limited (Company Number 03146648),
   -- Adal Engineering Limited (Company Number 01080528),
   -- Adal Estates Limited (Company Number 04937942),
   -- Adal Structures Limited (Company Number 04729849), and
   -- Adal Guilform Limited (Company Number 02653021).

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

Headquartered in London, Adal Group (UK) Limited, Guilform
Holdings Limited, Adal Seco Limited, Adal Engineering Limited,
Adal Estates Limited, Adal Structures Limited and Adal Guilform
Limited are engaged in general engineering.


ARCH CAPITAL: Growing Biz Spurs S&P to Affirm BB+ Pref. Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+' preferred
stock ratings to Arch Capital Group Ltd.'s recently filed
universal shelf registration.

Standard & Poor's also said that it affirmed its 'BBB'
counterparty credit rating on ACGL and its 'A-' counterparty
credit and financial strength ratings on ACGL's operating
subsidiaries.

The outlook on all these companies is stable.

"The ratings are supported by the group's growing business
franchise, strong operating performance, strong capital
adequacy, and strong financial flexibility," said Standard &
Poor's credit analyst Laline Carvalho.

"These positive factors are partially offset by Arch's
relatively short operating history and significant proportion of
casualty writings that have not fully matured."
     
The new shelf has an unlimited notional amount, which is in
accordance with the new SEC rules as of Dec. 1, 2005.  At this
stage, Standard & Poor's does not expect any potential issuances
under the shelf to lead to a material change in the group's
financial leverage, which remains within Standard & Poor's
expectations.

Standard & Poor's expects that Arch's net exposures in property
and other short-tail lines of business, particularly in Arch's
reinsurance division will grow moderately in 2006, reflecting
the expectation of substantially improved market conditions in
these lines.  Other lines of business are expected to show flat
growth for the year.

Assuming normal catastrophe losses, Standard & Poor's expects
the group's 2006 operating results to be very strong.The capital
adequacy ratio is expected to remain strong in 2006, reflecting
anticipated strong earnings for the year, partially offset by
expected increased net exposures in property and other short-
tail lines.  Standard & Poor's expects total debt plus preferred
leverage to remain supportive of the ratings at about 18%-20
over the medium term, with fixed charge coverage remaining very
strong at more than 8x.


BLUE WAHOO: Hires CLB Coopers as Joint Administrators
-----------------------------------------------------
Mark Getliffe and Diane Hill of CLB Coopers were appointed joint
administrators of Blue Wahoo Board & Tackle Co. Ltd. (Company
Number 05076028) on June 6.

The administrators can be contacted at:

         CLB Coopers
         Century House
         11 St Peters Square
         Manchester M2 3DN
         United Kingdom
         Tel: 0161-245-1000
         Fax: 0161-245-1001
         Web: http://www.clb.co.uk
         E-mail: manchester@clb.co.uk

Headquartered in Worsley, Blue Wahoo Board & Tackle Co Ltd
wholesales clothing and footwear.


BULLET POINT: Taps Deloitte & Touche as Administrators
------------------------------------------------------
Ian Brown and Adrian Peter Berry of Deloitte & Touche LLP were
appointed joint administrators of Bullet Point Presentations
Limited (Company Number 3675293) on June 5.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  It provides audit,
tax, consulting and corporate finance services through more than
9,000 people in 21 locations.  

Headquartered in Leeds, Bullet Point Presentations Limited
provides interactive whiteboards.


COMPLETE PROPERTY: Names P.R. Dewey as Administrator
----------------------------------------------------
P.R. Dewey of Dewey & Co was appointed administrator of Complete
Property Protection Ltd. (Company Number 03330119) on June 5.

The administrator can be contacted at:

         Dewey & Co.
         17 St Andrews Crescent
         Cardiff
         Glamorgan CF10 3DB
         United Kingdom
         Tel: 029 2022 2244
         Fax: 029 2022 2223  
         E-mail: peter@dewey.demon.co.uk

Complete Property Protection Ltd can be reached at:

         Dragon House
         Princes Way
         Bridgend Ind Est
         Bridgend
         Mid Glamorgan CF313AQ
         United Kingdom
         Tel: 01656 818 999
         Fax: 01656 810 999


CRAWLEY TOWN: Brings In Administrators from Begbies Traynor
-----------------------------------------------------------
Rod Sadler and Michael E.G. Saville of Begbies Traynor were
appointed joint administrators of Crawley Town Football & Social
Club Limited (Company Number 03858150) on June 5.

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.  

Crawley Town Football & Social Club Limited can be reached at:

         Broadfield Stadium
         Brighton Road
         Crawley
         West Sussex RH11 9RX
         United Kingdom
         Tel: 01293 410 009
         Fax: 01293 410 002


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

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

The company can be reached at:

         McClymont Construction Limited
         1B Oakwood Parade
         Bramley Road
         London N14 4HY
         United Kingdom
         Tel: 020 8670 1070


MOBBERLEY PLANT: Hires Administrators from Mazars LLP
-----------------------------------------------------
Robert David Adamson and Paul Charlton of Mazars LLP were
appointed joint administrators of Mobberley Plant Hire (Company
Number 05032999) on May 6.

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

Mobberley Plant Hire can be reached at:

         Two Gates
         Wood Lane
         Mobberley
         Knutsford
         Cheshire WA16 7NP
         United Kingdom
         Tel: 01565 880 140
         Fax: 01565 889 097


MORTGAGE INTELLIGENCE: Creditors Pass Winding Up Resolution
-----------------------------------------------------------
Creditors of Mortgage Intelligence (North East) Limited passed a
resolution to wind up the company's operations during an
extraordinary general meeting on April 12.

John Bell and Simon John Lundy, of Hawdon Bell & Co, were
appointed Joint Liquidators.

The company can be reached at:

         Mortgage Intelligence (North East) Limited
         22-22A Athenaeum Street
         Sunderland SR1 1DH
         United Kingdom
         Tel: 0191 565 7788
         Fax: 0191 510 8111


NORTHCLIFFE MOTOR: Hires Joint Liquidators from Begbies Traynor
---------------------------------------------------------------
Neil Brackenbury and Michael Saville, of Begbies Traynor, were
appointed Joint Liquidators of Northcliffe Motor Co Ltd after
creditors decided to wind up the company on April 11.

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

Northcliffe Motor Co Ltd can be reached at:

         Doncaster Road
         Denaby Main
         Doncaster
         South Yorkshire DN124DY
         United Kingdom
         Tel: 01709 863 366
         Fax: 01709 868 683


NTL CABLE: Moody's Places B2 Rating Under Review
------------------------------------------------
Moody's Investors Service placed the B2 rating of NTL Cable
plc's senior notes on review for possible downgrade following
NTL Inc.'s announcement that it is considering issuing the
proposed GBP600 million in senior unsecured notes intended to
refinance the remainder of its GBP1.8 billion bridge facility at
NTL Investment Holdings Limited or at a finance subsidiary of
that company, and that as a result the new notes could be
structurally senior to the existing notes at NTL Cable plc.
Moody's comments that none of NTL's other ratings have been
impacted by this rating action.

Moody's review for possible downgrade will consider the revised
capital structure of the company following the refinancing of
the bridge facility.  Moody's cautions that in the event that
the company uses its flexibility to raise a significant portion
of the new notes on a priority basis to the existing NTL Cable
plc notes, the notching of the existing notes is likely to widen
by one notch to B3.

Headquartered in Delaware, New Jersey, NTL Inc. is a large
telecommunications and cable communications provider in the UK.
For the year ending Dec. 31, 2005, the company reported pro-
forma revenues of approximately GBP3.5 billion.


OCULAR DISPLAY: Hires Deloitte & Touche to Administer Assets
------------------------------------------------------------
Ian Brown and Adrian Peter Berry of Deloitte & Touche LLP were
appointed joint administrators of Ocular Display Products
Limited (Company Number 04507245) on June 5.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  It provides audit,
tax, consulting and corporate finance services through more than
9,000 people in 21 locations.  

Ocular Display Products Limited can be reached at:

         Cartwright House
         30 Springwell Road
         Leeds LS12 1AX
         United Kingdom


OPTIMUM RECRUITMENT: Appoints BDO Stoy as Administrators
--------------------------------------------------------
Geoff Kinlan and Tony Nygate of BDO Stoy Hayward LLP were
appointed joint administrators of Optimum Recruitment Services
(East Midlands) Ltd. (Company Number 05540979) on June 1.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the UK member  
firm of BDO International, the world's fifth largest accountancy
network with more than 600 offices in 100 countries.

Optimum Recruitment Services (East Midlands) Ltd is engaged in
labor recruitment.


PULSE MEDIA: Brings In Joint Liquidators from Valentine & Co
------------------------------------------------------------
Pulse Media (UK) Ltd is liquidating its assets after creditors
agreed to wind up the company on April 7.

Robert Valentine and Mark Reynolds, of Valentine & Co, were
appointed Joint Liquidators.

The company can be reached at:

         Pulse Media (UK) Limited
         Unit 4A Lansbury Estate
         102 Lower Guildford Road
         Knaphill
         Woking
         Surrey GU212EP
         United Kingdom
         Tel: 0870 750 4002
         Fax: 01483 833 794


RAND SERVICES: Brings In Tenon Recovery to Administer Assets
------------------------------------------------------------
T.J. Binyon and S.R. Thomas of Tenon Recovery were appointed
joint administrators of Rand Services Limited (Company Number
01858847) on June 6.

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

Headquartered in Hove, Rand Services Limited is engaged in
business and management consultancy.


RANK GROUP: Disposes DVD Business for GBP5.9 Million Cash
---------------------------------------------------------
Deluxe Media Services, a subsidiary of Rank Group PLC, completed
the sale of its U.K. DVD replication business and its U.K.
distribution business to a subsidiary of Sony DADC for a cash
consideration of GBP5.9 million.

As part of the transaction, Sony has acquired the assets of the
Businesses and assumed certain liabilities.  The cash
consideration received by Rank is subject to certain post-
closing adjustments for working capital and other items.

The DVD replication and distribution businesses that Sony has
acquired from Deluxe Media are, respectively, located in
Southwater, West Sussex and Enfield, London.  The disposals were
in line with Rank's previously announced intention to exit
Deluxe Media Services through the separate disposals of
individual businesses or assets.

Rank is currently in discussions with a number of third parties
for the disposal of the remaining assets of Deluxe Media
Services and will make any further announcements required in due
course.

Deluxe Media Services is an international manufacturer and
distributor of optical media on behalf of content owners in the
video, music, games, software and information industries.  In
the year to Dec. 31, 2005, Deluxe Media Services reported
revenue of GBP267.1 million and an operating loss before
exceptional items of GBP16.4 million.

Sony DADC is a solution and technology provider for the
entertainment, education and information industries and provides
world-class optical media replication services and supply chain
solutions, as well as software services.

Headquartered in London, Rank Group PLC -- http://www.rank.com/
-- is an international leisure and entertainment company.  The
Group provides services to the film industry, including film
processing, video duplication and cinema exhibition.  The
Group's leisure and entertainment activities entail gambling
services, encompassing Mecca Bingo Clubs and Grosvenor Casinos,
and owned and franchises Hard Rock cafes.

                        *     *     *

As reported in the TCR-Europe on March 8, Moody's Investors
Service assigned a Ba2 corporate family rating to The Rank Group
Plc and concurrently downgraded the senior unsecured long-term
debt ratings of Rank Group Finance Plc (guaranteed by The Rank
Group Plc) to Ba2 (from Baa3).

At the same time, Fitch Ratings downgraded The Rank Group PLC's
Long-term Issuer Default rating and Senior Unsecured ratings to
BB- from BB+ and removed them from Rating Watch Negative.  A
Negative Outlook is assigned.  The Short-term rating is affirmed
at B.  The downgrade follows the disposal of its film processing
business, Deluxe Film, and confirmation of a return of capital
to shareholders announced in conjunction with its 2005
preliminary results.

In addition, Standard & Poor's Ratings Services lowered its
long- and short-term corporate credit ratings on U.K.-based
diversified leisure and entertainment company The Rank Group PLC
to 'BB-/B' from 'BBB-/A-3'.  S&P said the outlook is stable.


SARAI WINDOWS: Creditors Confirm Liquidator's Appointment
---------------------------------------------------------
Creditors of Sarai Windows Limited confirmed the appointment of
Roderick Graham Butcher as Liquidator during an extraordinary
general meeting on April 7.

The company can be reached at:

         Sarai Windows Limited
         Albion Road
         West Bromwich
         West Midlands B70 8AX
         United Kingdom
         Tel: 0121 553 6655
         Fax: 0121 523 2808


TICKENHAM GOLF: Taps Colin Andrew Presscott to Liquidate Assets
---------------------------------------------------------------
Colin Andrew Prescott, of Moore Stephens LLP, was appointed
Liquidator of Tickenham Golf Club Limited after creditors opted
to wind up the company on April 7.

Moore Stephens -- http://www.moorestephens.co.uk/-- offers  
audit, business support, corporate finance, corporate recovery,
dispute analysis, financial services, insurance broking, IT
consultancy, pensions audit, risk advisory services, tax and
trusts & estates services.  Its U.K. network comprises over
1,400 partners and staff.

Tickenham Golf Club Limited can be reached at:

         Clevedon Road
         Tickenham
         Clevedon
         Avon BS216RY
         United Kingdom
         Tel: 01275 856 626


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders   Total    Working
                                   Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                              (214)       1,756      183


BELGIUM
-------
City Hotels               CITY.BR     (7)         210      (15)
Real Software             REAL.BR    (49)         142      (34)
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)


DENMARK
-------
Elite Shipping                       (28)         101       19


FRANCE    
------
Acces Industrie                       (8)         106      (35)
Arbel                     PA.ARB     (98)         222      (72)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Charbo De France                  (3,872)       4,738   (2,868)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256       21
Compagnies de
   Machines Bull                    (139)         137       (6)
Dollfus Mieg & Cie S.A.   DS         (11)         165      (29)
Euro Computer System                (110)         682      377
Genesys S.A.              GNS.PA     (15)         136        3
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (68)         233       29
Labo Dolisos              DOLI.PA    (28)         110      (33)
Matussiere et Forest S.A. MTF        (78)         294      (28)
Metaleurop S.A.           PA.PA      (24)         181      (30)
Oeneo S.A.                SABT.PA    (12)         292       38
Pneumatiques Kleber S.A.             (34)         480      139
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
St Fiacre (FIN)                       (1)         111      (33)
Teamlog                   TLO        (19)         109       (3)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Cognis Deutschland
   GmbH & Co. KG                    (102)       3,409     (503)
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG        (8)         111      N.A.
Kaufring AG               KAUG       (19)         151      (51)
Maternus Kliniken AG      MAK.F       (3)         207      (30)
Nordsee AG                            (8)         195      (31)
Primacom AG               PRIG      (268)       1,257   (1,048)
Rinol AG                  RLIG       (64)         104      (15)
Schaltbau Hold            SLTG       (23)         144       (7)
Senator Entertainment    
    AG                    SENGk.BE  (153)         126     (148)
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
Vivanco Gruppe                       (55)         131      (31)


HUNGARY
-------
NABI Rt.                  NABHY       (2)         229   (8,950)


ICELAND
-------
Decode Genetics Inc.      DCGN        (9)         229      141

ITALY
-----
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                      (152)         732     (322)
Gruppo Coin S.p.A.        GC        (150)       4,218      N.A.
I Viaggi del
   Ventaglio S.p.A.       VVE.MI     (61)         487      (58)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (18,419)       4,121  (12,481)
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Mostostal Zabrze          MECOF.PK    (6)         227     (366)


ROMANIA
-------
Oltchim RM Valce          OLT        (45)          232     321)


RUSSIA
------
OAO Samaraneftegas                  (332)         892  (16,942)
Zil Auto                            (168)         409  (10,680)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.                     (116)       1,283     (278)
Santana Motor S.A.                   (46)         223       41
Sniace S.A.                          (16)         136      (34)


SWITZERLAND
-----------
Wedins Skor
    Accessoarer AB                   (10)         139     (129)


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
AEA Technology Plc        AAT.L      (24)         340      (50)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Anker PLC                 ANK.L      (22)         115       13
Bonded Coach
   Holiday Group Plc                  (6)         188      (44)
Blenheim Group                      (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Plc        BGY     (5,823)       4,921      434
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
British Sky Broadcasting
   Group Plc              BSY        (61)       4,157      139
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST       (39)         567       (5)
Danka Bus System          DNK.L     (108)         540       34
Dawson Holdings           DWN.L      (12)         158      (19)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music              
   Industries Group       EMI     (1,411)       3,235     (331)
Euromoney Institutional
   Investor Plc           ERM.L      (88)         297      (56)
European Home Retail Plc  EHRL       (14)         111      (37)
Gartland Whalley                     (11)         145       (8)
Global Green Tech Group             (156)         408      (18)
Gondola Holdings Plc      GND.L     (239)         987     (396)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV         (9)         875     (190)
Homestyle Group Plc       HME        (29)         409     (124)
Imperial Chemical
   Industries Plc         ICI       (835)       8,881      (49)
Invensys PLC                        (963)       4,861      913
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L    (683)         492     (371)
Lambert Fenchurch Group               (1)       1,827        3

Lattice Group                     (1,290)      12,410   (1,228)
Leeds United              LDSUF.PK   (73)         144      (29)
M 2003 Plc                        (2,204)       7,205     (756)
Manchester City                      (17)         154      (21)
Micro Focus
   International Plc      MCRO.L     (14)         115      (11)
Misys Plc                 MSY       (460)         906       60
Mytravel Group            MT.L      (283)       1,159     (410)
Orange Plc                ORNGF     (594)       2,902        7
Park Group Plc            PKG.L       (5)         111      (13)
Partygaming Plc           PRTY       (46)         398     (110)
Premier Foods Plc         PFD.L      (31)       1,475       16
Probus Estates Plc        PBE.L      (28)         113      (49)
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,134)       2,678      (45)
RHM Plc                   RHM       (586)       2,411       59
Saatchi & Saatchi         SSI       (119)         705      (41)
Seton Healthcare                     (11)         157        0
SFI Group                           (108)         178     (162)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,361)
UK Coal Plc               UKC        (25)         865      (62)
Virgin Mobile
   Holdings Plc           VMOB.L    (101)         278      (80)

Each Tuesday edition of the TCR-Europe contains a list of
companies with insolvent balance sheets based on the latest
publicly available balance sheet available to our editors at the
time of publication.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true
value of a firm's assets.  A company may establish reserves on
its balance sheet for liabilities that may never materialize.  
The prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

                           *********

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

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

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

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

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

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


                 * * * End of Transmission * * *