TCREUR_Public/060724.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

              Monday, July 24, 2006, Vol. 7, No. 145

                            Headlines


A U S T R I A

ABS: Creditors' Meeting Slated for July 26
ADESSI: Creditors' Meeting Slated for August 7
ELEKTRO HAUNSCHMID: Linz Court Orders Closing of Business
ELEKTRO KAINZ: Court Orders Closing of Business
HIMMELBAUER KARL: Property Manager Declares Insufficient Funds

HOLZBAU SCHEIFLINGER: Court Orders Closing of Business
K.I.D-TRANSPORT: Creditors' Meeting Slated for August 7
PREMAX: Property Manager Declares Insufficient Funds
SILHENGST INNENAUSBAU: Claims Registration Period Ends August 8


F R A N C E

CROWN EUROPEAN: Fitch Gives B+ Issuer Default Rating
EUROTUNNEL GROUP: Revenue Up 2% to GBP277 Million in First Half

* Euler Sees Significant Increase In Global Business Failures


G E R M A N Y

AUTO-CENTER: Claims Registration Ends August 15
FRESENIUS MEDICAL: Wins Patent Case vs. Baxter International
GBF GEMEINNUETZIGE: Claims Registration Ends August 4
HEIDELBERGCEMENT AG: Aims to Reach 2007 Profit Goal this Year
HEIDELBERGCEMENT: Eyes Majority Stake in India's Mysore Cement

IMMOOR GMBH: Creditors' Meeting Slated for August 10
JENOPTIK AG: Michael Mertin succeeds Norbert Thiel as COO
MARKETING HSV: Claims Registration Ends August 3
MCM GASTRONOMIE: Claims Registration Ends August 4
PRIMUS GMBH: Claims Registration Ends August 2

RUNNEY SPORTS: Claims Registration Ends August 4
STAHL- UND METALLBAU: Claims Registration Ends August 13
TISCHLEREI SASSIN: Claims Registration Ends August 15
WAGNER- HEIN: Claims Registration Ends August 8


I R E L A N D

ADAGIO III CLO: Moody's Rates EUR17-Mln Class E Notes at (P)Ba3


K A Z A K H S T A N

BEKEN-ATA: Creditors Must File Claims by Aug. 7
FORT-E: Creditors Must File Claims by Aug. 7
INKOM: Creditors Must File Claims by Aug. 7
IRTYSH-EKIBASTUZ: Proof of Claim Deadline Slated for Aug. 7
JIGER: Proof of Claim Deadline Slated for Aug. 7

KAZKOMMERTS FINANCE: S&P Assigns BB- Rating to Proposed Notes
PROEKT-BIZNES-MARKETING: Claims Registration Ends Aug. 7
PROFIL-PV: Claims Registration Ends Aug. 7
STROISERVIS: Claims Registration Ends Aug. 7
SULEIMEN: Creditors' Claims Due Aug. 7

UST-KAMENOGORSKY HLEBOBULOCHNYI: Creditors' Claims Due Aug. 7
VENUS COMPANY: Creditors' Claims Due Aug. 7


K Y R G Y Z S T A N

ORIX: Proof of Claim Deadline Slated for Sept. 6


L U X E M B O U R G

NORTEL NETWORKS: Forms Strategic Alliance with Microsoft Corp.


R U S S I A

ADYGEYSKIY: Court Names S. Romanchin as Insolvency Manager
BIF-AGRO: Court Commences Bankruptcy Supervision
GAZPROM: Bids for Yukos Oil's 20% Stake in Gazprom Neft
GAZPROM: Officially Gains Gas Monopoly Status in Russia
ITKULSKOYE: Novosibirsk Court Begins Bankruptcy Supervision

KALUGA-FURNITURE: Court Names A. Razmakhova Insolvency Manager
KYSHTYMSKAYA GARMENT: S. Spirin to Manage Insolvency Assets
LGOVSKAYA ZARYA: Kursk Court Starts Bankruptcy Supervision
NEOLIT: Yamalo-Nenetskiy Court Starts Bankruptcy Supervision
PROKHLADNENSKAYA RAY-SEL-KHOZ-TEKHNIKA: Popov to Manage Assets

SAKHALIN-GAS-SERVICE: A. Bocharov to Manage Insolvency Assets
TROITSKOYE: Court Names V. Veryasov as Insolvency Manager
YUKOS OIL: CEO Steven Theede Steps Down, Expects Liquidation
YUKOS OIL: Gazprom Bids for 20% Stake in Gazprom Neft


U K R A I N E

AGRO PLUS: Court Names I. Yasnogor as Insolvency Manager
CHORNOMORRIBZBUT: Court Names JSCB Legbank as Liquidator
CREATIVE: Kyiv Court Starts Bankruptcy Supervision
ELMART: Kyiv Court Starts Bankruptcy Supervision
ENERGOUNIVERS: Court Starts Bankruptcy Supervision

FARNAT: Donetsk Court Names S. Kitsul as Insolvency Manager
IRTA: Court Names Svitlana Babich as Insolvency Manager
LINGVA-SOFT: Kyiv Court Starts Bankruptcy Supervision
SPECAGROTRANS: Court Names Volodimir Matlash as Liquidator
SVATOVO' TRADE: Court Names Oleksij Voronko as Liquidator


U N I T E D   K I N G D O M

A GARBUTT: Financial Woes Prompt Liquidation
AMBROSDEN COURT: Barclays Bank Hires Receivers from Baker Tilly
ASHTEAD GROUP: Acquisition Plan Spurs S&P to Affirm BB- Rating
ASPERN PATH: Creditors Pass Winding Up Resolution
BELVOIR DESIGNS: Creditors' Meeting Slated for July 31

CABLE & WIRELESS: Proposes to Buy KeyTech Ltd for GBP113 Million
CITY FINANCIAL: Liquidator Sets July 31 Claims Bar Date
CROWN CORK: Moody's Affirms Ba3 Corporate Family Rating
CROWN CORK: Fitch Gives B+ Issuer Default Rating
CUSTOM LINERS: DEM Finance Appoints Tenon Recovery as Receivers

DAMONT AUDIO: Creditors Nominate Liquidator
EARTH FROM THE AIR: Names Alan R. Price to Liquidate Assets
EAST VEST: Caroline Vestey Taps Receivers from Kingston Smith
ESTERLINE TECHNOLOGIES: Moody's Lifts Corp. Family Rating to Ba2
EUROTUNNEL GROUP: Revenue Up 2% to GBP277 Million in First Half

FARRINGDON MORTGAGES: S&P Removes B2a Notes from Watch Negative
FRASER BUILDING: Claims Filing Period Ends July 26
HMV GROUP: Appoints Simon Fox as Group Chief Executive
HYLTON ROOFING: Taps Ian William Kings to Liquidate Assets
IFSA STRONGMAN: Bouwhuis Morrill Expresses Going Concern Doubt

IFSA STRONGMAN: Posts US$362,094 Net Loss in First Quarter 2006
LAZER FOODS: Creditors Confirm Joint Liquidators' Appointment
M & B BARK: Creditors Resolve to Voluntary Liquidation
MIDDLESEX SEALED: Hires Joint Liquidators from Begbies Traynor
NEWSOME PRINTERS: Taps Peter O'Hara to Liquidate Assets

NORTHERNSPARK LTD: Appoints J. N. Bleazard as Liquidator
NURSE X: Brings In Joint Liquidators from KPMG LLP
PROKEM LTD: Creditors Confirm Voluntary Liquidation
RANK GROUP: Sells Off U.K. CD Replication Unit for GBP3 Million
RAPID PRINTERS: Claims Registration Ends July 26

RAY WARD LIMITED: Brings In Tenon Recovery as Administrators
RDL LIMITED: Creditors' Meeting Slated for July 26
REFCO INC: Chapter 11 Trustee Settles with Rogers Raw
SAFE PALLET: Brings In Kroll as Joint Administrators
SANDWELL NEW: Brings In Deloitte & Touche as Administrators

STRAND OVERSEAS: Royal Bank Taps Receivers from KPMG
TRAIN 4 SECURITY: Hires Ward & Co. as Administrators
WRG ACQUISITIONS: Sells Waste Disposal Business for GBP1.4 Bln
WRG FINANCE: Moody's Places Low -B Ratings Under Review
WRG FINANCE: S&P Assigns BB- Long-Term Corp. Credit Rating

* Euler Sees Significant Increase In Global Business Failures

                            *********


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


ABS: Creditors' Meeting Slated for July 26
------------------------------------------
Creditors owed money by LLC ABS (FN 209353y) are encouraged to
attend the creditors' meeting at 9:00 a.m. on July 26 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

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

Headquartered in Stockerau, Austria, the Debtor declared
bankruptcy on June 8 (Bankr. Case 36 S 64/06p).  Stephan Riel
serves as the court-appointed property manager of the bankrupt
estate.  Alexander Schoeller represents Dr. Riel in the
bankruptcy process.

The property manager and his representative can be reached at:

         Dr. Stephan Riel
         c/o Dr. Alexander Schoeller
         Reischachstrasse 3/12A
         1010 Vienna, Austria
         Tel: 01/713 44 33
         Fax: 01/713 10 33
         E-mail: kanzlei@jsr.at


ADESSI: Creditors' Meeting Slated for August 7
----------------------------------------------
Creditors owed money by LLC Adessi (FN 247222m) are encouraged
to attend the creditors' meeting at 11:30 a.m. on Aug. 7 to
consider the adoption of the rule by revision.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1705
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 8 (Bankr. Case 3 S 50/06g).  Martina Simlinger-Haas
serves as the court-appointed property manager of the bankrupt
estate.  

The property manager can be reached at:

         Dr. Martina Simlinger-Haas
         Reisnerstrasse 31
         1030 Vienna, Austria
         Tel: 713 99 46
         Fax: 713 99 46-22
         E-mail: ra.reisnerstr31@aon.at


ELEKTRO HAUNSCHMID: Linz Court Orders Closing of Business
---------------------------------------------------------
The Land Court of Linz entered an order on June 8 closing the
business of LLC Elektro Haunschmid.  Court-appointed property
manager Christian Ebmer determined that the continuing operation
of the business would reduce the value of the estate.

The property manager can be reached at:

         Mag. Christian Ebmer
         Schillerstrasse 12
         4020 Linz, Austria
         Tel: 65 69 69
         Fax: 65 69 69-60
         E-mail: office@hep.co.at

Headquartered in Freistadt, Austria, the Debtor declared
bankruptcy on April 6 (Bankr. Case No. 38 S 14/06x).


ELEKTRO KAINZ: Court Orders Closing of Business
-----------------------------------------------
The Land Court of Krems an der Donau entered an order on June 8
closing the business of LLC Elektro Kainz.  Court-appointed
property manager Mario Noe-Nordberg determined that the
continuing operation of the business would reduce the value of
the estate.

The property manager can be reached at:

         Dr. Mario Noe-Nordberg
         Hamernistrasse 10
         3830 Waidhofen an der Thaya, Austria
         Tel: 02842/52570
         Fax: 02842/52570-4
         E-mail: ra-noe-nordberg@aon.at

Headquartered in Heidenreichstein, Austria, the Debtor declared
bankruptcy on April 13 (Bankr. Case No. 9 S 19/06a).


HIMMELBAUER KARL: Property Manager Declares Insufficient Funds
--------------------------------------------------------------
Dr. Kristina Kock, the court-appointed property manager for LLC
Himmelbauer Karl (FN 71094a), declared on June 8 that the Debtor
does not have enough assets to pay off creditors.

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

Headquartered in Hadres, Austria, the Debtor declared bankruptcy
on May 17 (Bankr. Case No. 36 S 59/06b).  

The property manager can be reached at:

         Dr. Kristina Kock
         Hauptplatz 6
         2020 Hollabrunn, Austria
         Tel: 02952/30 615
         Fax: 02952/30 615 15
         E-mail: office@ra-kch.at


HOLZBAU SCHEIFLINGER: Court Orders Closing of Business
------------------------------------------------------
The Land Court of Klagenfurt entered an order on June 8 closing
the business of LLC Holzbau Scheiflinger.  Court-appointed
property manager Rolf Gabron determined that the continuing
operation of the business would reduce the value of the estate.

The property manager can be reached at:

         Mag. Rolf Gabron
         Peter-Wunderlichstrasse 17
         9800 Spittal an der Drau, Austria
         Tel: 04762/35336
         Fax: 04762/35336-4
         E-mail: gabron@anwalt-spittal.at   

Headquartered in Spittal an der Drau, Austria, the Debtor
declared bankruptcy on May 26 (Bankr. Case No. 41 S 61/06b).


K.I.D-TRANSPORT: Creditors' Meeting Slated for August 7
-------------------------------------------------------
Creditors owed money by LLC K.I.D-Transport and Trade
(FN 254294m) are encouraged to attend the creditors' meeting at
9:30 a.m. on August 7 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1705
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 8 (Bankr. Case 3 S 86/06a).  Thomas Steiner serves as
the court-appointed property manager of the bankrupt estate.  
Renate Steiner represents Mag. Steiner in the bankruptcy
process.

The property manager and his representative can be reached at:

         Mag. Thomas Steiner
         c/o Dr. Renate Steiner
         Weihburggasse 18-20/50
         1010 Vienna, Austria
         Tel: 513 53 63
         Fax: 513 53 63-17
         E-mail: steiner.steiner@aon.at  


PREMAX: Property Manager Declares Insufficient Funds
----------------------------------------------------
Dr. Ilse Korenjak, the court-appointed property manager for
Construction LLC Premax (FN 255959k), declared on June 8 that
the Debtor's property is insufficient to pay off creditors.

The Trade Court of Vienna is yet to rule on the property
manager's claim.

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 8 (Bankr. Case No. 6 S 45/06v).  

The property manager can be reached at:

         Dr. Ilse Korenjak
         Gusshausstrasse 6
         1040 Vienna, Austria
         Tel: 512 21 02
         Fax: 512 21 02 20
         E-mail: office@buresch-korenjak.at


SILHENGST INNENAUSBAU: Claims Registration Period Ends August 8
---------------------------------------------------------------
Creditors owed money by KEG Silhengst Innenausbau (FN 172006a)
have until Aug. 8 to file written proofs of claims to court-
appointed property manager Alexander Schoeller at:

         Dr. Alexander Schoeller
         c/o Dr. Stephan Riel
         Reischachstrasse 3/12 A
         1010 Vienna, Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at    

Creditors and other interested parties are encouraged to attend
the first creditors' meeting at 10:30 a.m. on Aug. 22 to
consider the adoption of the rule by revision and
accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1701
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 8 (Bankr. Case No. 6 S 56/06m).  Stephen Riel represents
Dr. Schoeller in the bankruptcy proceedings.


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


CROWN EUROPEAN: Fitch Gives B+ Issuer Default Rating
----------------------------------------------------
Fitch rates Crown Holdings Inc., Crown Cork & Seal Company,
Inc., Crown Americas LLC and Crown European Holdings S.A. as:

Crown Holdings:

   -- Issuer Default Rating (IDR) B+

Crown Cork & Seal Company:

   -- IDR B+; and
   -- Senior unsecured notes B/Recovery Rating (RR) of 5

Crown Americas LLC:

   -- IDR B+;
   -- Senior secured dollar term facility BB+/RR1;
   -- Senior secured dollar revolving facility BB+/RR1; and
   -- Senior unsecured notes B+/RR4.

Crown European Holdings S.A.:

   -- IDR B+;
   -- Senior secured euro term facility BB+/RR1;
   -- Senior secured euro revolving facility BB+/RR1; and
   -- Senior secured euro 1st priority notes BB+/RR1.

Approximately US$3.5 billion of debt is covered by the ratings.
The Rating Outlook is Stable.

The ratings reflect Crown's leading market share across its
product categories, balanced revenue mix, geographic
diversification, good liquidity, modest near-term debt
maturities, volume growth in emerging markets, and focus on debt
reduction.  Rating concerns include high leverage, escalating
raw materials costs, intense competition and low unit volume
growth in mature markets, and to a lesser extent, asbestos
liability.  Broader packaging conversion trends towards plastics
are also a consideration, although not a primary rating factor.

The Stable Outlook reflects the relatively steady demand in
Crown's key end-markets, consistent operating performance and
solid cash generation.  The company's demonstrated ability to
pass-through most raw materials price increases is also noted.

The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes.  The recovery analysis also considers jurisdictional
issues, with approximately 70% of the company's assets residing
outside of the U.S.  

The RRs for Crown Americas, LLC., and Crown European Holdings,
SA's senior secured credit facility, consisting of dollar-based
and foreign currency term loans and revolving credit facilities
reflect significant expected recovery due to security from
substantially all U.S. assets and certain foreign subsidiary
assets, 65% pledge of capital stock of non-U.S. subsidiaries of
Crown Americas, as well as substantial cushions of unsecured
debt and equity.

The US$504 million of term loans mature in 2012 and are held at
Crown Americas (US$165 million) and Crown European Holdings
(EUR287 million/US$339 million).  The revolving credit
facilities mature in 2011 and consist of US$410 million at Crown
Americas, US$350 million at Crown European Holdings, and US$40
million at Crown Canada.

The U.S. based credit facilities are guaranteed by Crown
Holdings, Crown Cork & Seal, Crown Americas, and Crown
International Holdings.  The European-based facilities are
guaranteed by the same entities as well as certain foreign
guarantor subsidiaries.

The 6.25% senior secured first priority notes held at Crown
European Holdings (EUR460 million/US$587 million, due 2011) are
rated RR1; (expected 91%-100% recovery) which reflects
outstanding recovery prospects in a distressed scenario deriving
from a first priority lien on certain foreign subsidiary assets,
100% stock of Crown Cork & Seal, and significant debt with lower
priority.  These notes are guaranteed by the same entities
guaranteeing the European based credit facilities listed above.

The Recovery Rating for the US$1.1 billion of senior unsecured
notes held at Crown Americas (US$500 million of 7.625% notes,
due 2013 and US$600 million of 7.75% notes, due 2015) is RR4;
(expected 31%-50% recovery) and reflects the expectation of
average recovery due to lack of security for the notes, and
limited enterprise value remaining after allocation to senior
secured debt in a distressed scenario.  

These notes are guaranteed by Crown and each of Crown's U.S.
restricted guarantor subsidiaries.  Upon a change of control the
notes are puttable at 101% of par.  The 7.625% notes become
callable in November 2009, and the 7.75% notes become callable
in November 2010.

The Recovery Rating for the US$807 million of senior unsecured
notes held at Crown Cork & Seal (US$107 million of 7.0% notes,
due 2006; US$350 million of 7.375% notes, due 2026; US$150
million of 7.5% notes, due 2096; and US$200 million of 8.0%
notes, due 2023) is RR5; (expected 11%-30% recovery) and
reflects the below average recovery prospects for these notes,
and also considers their structural subordination.  

These notes are guaranteed by Crown Holdings.  It should be
noted that while this class of debt carries a lower expected
recovery under the assumptions of a distressed scenario, US$107
million will mature in December 2006 and is covered by adequate
liquidity.

The company's liquidity at the end of the first quarter was
about US$563 million, and consisted of cash and available
revolver.  Liquidity has declined somewhat over the past five
quarters largely as a result of substantial cash payments in
2005 for debt restructuring fees and pension contributions.

The company has US$139 million of debt maturities due in 2006,
which will be funded by cash from operations and available
liquidity.  Additionally, Crown has two receivables
securitization facilities of US$225 million and EUR120 million,
and Fitch estimates availability under these facilities of about
US$110 million.

Cash generation has been solid for the past several years with
the notable exception of 2005 when the company reported negative
US$360 million of free cash flow and negative US$122 million of
operating cash flow.  Fitch notes that the significant decline
was primarily the result of US$354 million of one-time cash pre-
payment fees incurred in connection with the 2005 debt
refinancing, as well as US$401 million of pension contributions
which included US$266 million of accelerated payments.

Excluding the pre-payment fees and the accelerated portion of
the pension contribution, pro-forma free cash flow would have
been about US$260 million.

Crown's credit metrics have been improving over the past few
years as the company has been paying down debt with funds from
divestitures and cash from operations.  The debt refinancing in
2005 also reduced interest expense and extended major debt
maturities for several years.  

However, leverage remains relatively high.  As of Dec. 31, 2005,
the company had leverage of 4.1 times and EBITDA interest
coverage of 2.3x.  The company's 2005 refinancing lowered
interest expense by roughly 30% based on a 2006 gross interest
expense projection of about US$250 million.  

Covenants under the senior secured credit facilities limit debt-
to-EBITDA to 4.25x through Sept. 30, 2007 and EBITDA interest
coverage to 2.75x through the same date.  It should be noted
that Fitch's calculation of these ratios is not equivalent to
those allowed for covenant compliance.

The company is benefiting from its focused strategy of organic
growth in the metals packaging sector.  Through divestitures
over the past several years, the company has largely exited
plastics-based packaging operations.  Simultaneously, the
company has aggressively pursued growth opportunities in
emerging markets, where it is well positioned to capture sizable
new volume.  

The company has recently added sold-out new capacity that will
increase volumes in beverage cans by 15%-20% outside North
America.  In mature markets, Crown intends to maintain market
share and expand production of specialty and niche-market metal
packaging, which typically garners higher margins.

Challenges include escalating raw materials costs and
maintaining unit volumes, particularly in mature markets.
Crown's principal raw materials comprise nearly 60% of cost of
goods sold and each have shown price increases of 16% to 20% or
more in the past year.  The company has been successful for the
most part in implementing price increases and maintaining
profitability despite the higher prices.

However, Fitch remains cautious about the company's continued
ability to pass-through all price increases and maintain
volumes, especially considering the intense price competition
within the metal packaging industry.  

Management has noted a 6% loss of North America beverage can
volume recently, which was due to price competition.  The
company believes this volume will be replaced with new business,
which will be fully realized sometime in 2007.  Additionally,
double-digit beverage can volume growth in certain emerging
markets will likely bolster total volume growth, and 5% global
volume growth across all products is expected in 2006.

In addition, the company has asbestos liability exposure from a
business acquired over 40 years ago.  Crown has accrued a
provision for asbestos liability claims of about US$211 million
as of March 31, 2006 and had about 80,000 claims outstanding as
of the same date.  Fitch is encouraged by the trend in annual
new claims and cash payments for settlements, both of which have
been declining each year for the past several years.

However, the issue remains as an ongoing ratings consideration.
The company expects to pay about US$25 million in asbestos-
related claims in 2006.  Fitch used a US$200 million asbestos-
related liability estimate in the calculation of enterprise
value for the recovery analysis.

Significant divestitures seem unlikely going forward.  Fitch
believes the company is now positioned to generate healthy
operating cash flows over the intermediate term and will likely
reduce capital expenditures somewhat.  As cash generation
improves, Fitch expects that Crown will likely continue to focus
on debt reduction and prudent asset management.  

Management has indicated that substantive acquisitions are not
part of its strategic plan.  Additionally, the company has about
US$145 million remaining in an authorized share repurchase
program that was initiated to offset dilution.

Crown repurchased approximately US$38 million of common stock in
2005 and US$9 million in the first quarter of 2006.  Debt
maturities are modest over the next several years, with the
exception of US$139 million in 2006, which includes US$107
million of 7.0% senior unsecured notes at Crown Cork & Seal
maturing in December 2006.


EUROTUNNEL GROUP: Revenue Up 2% to GBP277 Million in First Half
---------------------------------------------------------------
Eurotunnel Group has released its operating results for the
first half of 2006.

The company disclosed that revenue for the period increased two
percent reflecting GBP277 million compared with the GBP271
million revenue in 2005.

For first half of 2006, operating expenses decreased by nine
percent reflecting GBP116 million operating expenses from GBP127
million operating expenses for the same period in 2005.

The significant reduction of expenses and an increased revenue
contributed to the raised operating margin of 12% showing GBP161
million for the first half in 2006 compared with GBP144 million
for the same period in 2005.

For the second half of 2006, Eurotunnel pointed out the
situation created by the refusal of certain creditors to approve
the proposed financial restructuring and, by consequence, the
request for the safeguard procedure in France could have a
negative impact on customer reservations or supplier demands
which is difficult to predict.

"Eurotunnel's operating results for the first half of this year
are very good," Jacques Gounon, Eurotunnel's Chairman and Chief
Executive disclosed.  "This marked improvement is the tangible
result of the considerable efforts made by the staff and shows
the potential Eurotunnel has.  It would be an injustice if these
efforts were reduced to nothing by the refusal of creditors to
reach a rapid solution to the question of the debt."

                        About the Company

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

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

As reported by TCR-Europe on July 14, Eurotunnel Group was
forced to place itself under creditor protection at the
Commercial Court of Paris pursuant to the French law "procedure
de sauvegarde" on July 13, after restructuring talks with
bondholders failed.

The parties have been in talks to restructure Eurotunnel's
outstanding EUR6.2 billion debt.

On June 27, Eurotunnel turned down the restructuring plan
prepared by a group of secured bondholders led by Deutsche Bank
AG asserting that it requires too much debt and gives too much
to bondholders.

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

The plan rivaled the preliminary restructuring agreement backed
by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and
Barclays PLC.  The plan dated May 23, valued the company at
around EUR7.03 billion and included a EUR1.5 billion hybrid
issue with a 6% to 9% coupon and would reduce debt by 54%.

Under the agreement, bondholders will get a GBP75 million return
for their GBP1.9 billion bond holdings.

On July 12, Eurotunnel presented an ultimate proposal to reach a
compromise between the May 23 preliminary restructuring
agreement and the demands made by its subordinated creditors
represented by The Association of Eurotunnel's Secured
Bondholders (ARCO).

The company claimed that the majority of these demands were
satisfied by the substantial efforts jointly made by the company
and the Ad Hoc Committee.  The subordinated creditors, led by
Deutsche Bank, rejected this final attempt to reach a consensual
deal.

The Joint Board of Eurotunnel unanimously decided to cancel the
General Meetings of Shareholders of Eurotunnel PLC and
Eurotunnel SA, planned for July 27.

Absent a final agreement, the Group may default in January 2007
under a 1998 debt agreement.

                        *     *     *

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

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


* Euler Sees Significant Increase In Global Business Failures
-------------------------------------------------------------
After a substantial increase in 2005 and a decline in 2006, the
number of business insolvencies in the U.S. is predicted to
climb once again in 2007, according to global trade credit
insurer Euler Hermes.  Worldwide, the Index predicts that
business failures will increase by 3% in 2007 on the heels of a
global economic slowdown.  

The Global Business Failure Index -- created by Euler Hermes to
compare business failures by country, going beyond the national
definitions and taking into account the size of the respective
global economies -- predicts an 8% increase in US corporate
insolvencies for 2007.  The Index has fluctuated quite a bit in
the past two years, showing a 14% increase in 2005 and a five-
percent decrease for 2006.  The 2005 hike was caused by an
increased number of businesses insolvencies in advance of the
new bankruptcy laws, which took effect on November 17, 2005.  
However, the revamped U.S. bankruptcy code has caused a notable
decrease in the number of corporate insolvencies for 2006, with
the Index predicting a slight decrease in the number of
businesses that will declare bankruptcy.

Dan North, Euler Hermes ACI Chief Economist, offered his view on
the macroeconomic factors that can affect business failures:
"The U.S. economy turned in a very strong performance in the
first quarter as real Gross Domestic Product grew at a 5.6%
annualized rate.  However, GDP growth is expected to slow during
the rest of the year as a result of three factors.

   -- First, the housing market, which has supported the U.S.
      economy over the past few years, is cooling off, providing
      less equity to finance consumer activity and reducing
      demand for household goods and services;

   -- Second, high energy prices, particularly for gasoline, are
      putting a drag on consumer activity;  

   -- Third, and perhaps most importantly, the Federal Reserve
      may have tightened monetary policy too far as reflected in
      the inverted yield curve, a strong indicator of a future
      slowdown.  

The effects of Fed tightening take a year or more to be felt,
meaning that the U.S. economy will be experiencing a drag from
rising interest rates for at least another 12 months.  These
three pressures on the US economy will certainly put pressure on
business failures throughout the next year."

Euler Hermes Global Business Failure Index forecasts these
country-by-county changes in the number of business failures:

     Country        2007      2006
     -------        ----      ----
     U.S.A.           8%       -5%
     France           0%        0%
     Spain            4%       10%
     Denmark          0%       -8%
     Taiwan           4%        7%
     Luxembourg       0%       -1%
     Greece           4%        5%
     Germany          0%       -5%
     U.K.               3%        8%
     China            0%        0%
     Portugal         3%        5%
     Hungary         -1%       -1%
     Hong Kong       -1%      -11%
     Italy            3%        3%
     Netherlands     -1%       -2%
     Belgium          2%        0%
     Canada          -3%       -3%
     Ireland         -3%       -3%
     Norway           1%      -10%
     Austria         -3%       -2%
     Japan            1%        2%
     Finland         -3%       -6%
     Czech Republic   1%       -4%
     South Korea     -4%      -10%
     Switzerland      0%        0%
     Singapore       -7%       -6%
     Slovakia         0%        8%
     Sweden          -7%      -10%
     Poland           0%       -1%
     Brazil          -8%      -15%

     Western Europe   1%        0%

     Global Index of
     insolvencies     3%       -1%

In the face of the changing domestic and global economic
climate, recognizing and managing future risks becomes a
priority for the nation's business leaders.  The predicted rise
in business failures highlights the important role that trade
credit insurance can play within the business environment, said
Euler Hermes ACI Vice President of Marketing Keith Sherman.  "A
Euler Hermes ACI credit insurance program provides a valuable
extension to a company's credit management practices - a second
pair of objective eyes when approving buyers, as well as an
early warning system should things begin to decline so that
exposure can be effectively managed," he said.  "And,
ultimately, should an unexpected loss occur, the trade credit
insurance policy provides indemnification, thus protecting the
policyholder's revenue and bottom line."  

Euler Hermes ACI utilizes a proprietary database that monitors
the credit worthiness of more than 40 million companies
worldwide; this provides advance warning for policyholders and
allows losses to be minimized in the event of a large corporate
insolvency.

Further analysis of the Global Business Failure Index is
available in the Euler Hermes Insolvency Outlook publication,
which is available upon request.

Headquartered in Owings Mills, Maryland, Euler Hermes ACI --
http://www.eulerhermes.com/usa-- is the U.S. subsidiary of the  
Euler Hermes Group and the oldest and largest provider of trade
credit insurance in North America.  

Euler Hermes is the worldwide leader in credit insurance and one
of the leaders in bonding and guarantees.  With 5,400 employees
in 43 countries, Euler Hermes offers a complete range of
services for the management of customer receivables.  The group
posted a EUR2 billion turnover in 2005.

Euler Hermes, a subsidiary of AGF and a member of Allianz, is
listed on Euronext Paris.  Standard & Poor's rates the group and
its principal credit insurance subsidiaries AA-.


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


AUTO-CENTER: Claims Registration Ends August 15
-----------------------------------------------
Creditors of Auto-Center Bodecker GmbH have until Aug. 15 to
register their claims with court-appointed provisional
administrator Norbert Kuepper.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Sept. 13 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Room 13 B
         Gerichtsstr. 2-6
         48149 Muenster, 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 Muenster opened bankruptcy proceedings
against Auto-Center Bodecker GmbH on July 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Auto-Center Bodecker GmbH
         Robert-Schuman-Ring 1
         59302 Oelde, Germany

         Attn: Juergen Bodecker, Manager
         Buchenweg 30
         59302 Oelde, Germany

The administrator can be contacted at:

         Dr. Norbert Kuepper
         Paderborner Str. 11
         33415 Verl, Germany         


FRESENIUS MEDICAL: Wins Patent Case vs. Baxter International
------------------------------------------------------------
The U.S. District Court for the Northern District of California
entered a ruling that Fresenius Medical Care & Co. KGaA is not
infringing patents on hemodialysis machines held by Baxter
International Inc.

As reported in the Intellectual Property Reporter on July 12,
Fresenius Medical Care Holdings Inc., a subsidiary of Fresenius
Medical Care & Co. KGaA., sought declaratory judgment with the
Court that it did not violate Baxter's patent rights.

On April 3, 2003, FMCH filed a suit in the U.S. District Court
for the Northern District of California (Case No. C 03-1431)
claiming non-infringement, invalidity and unenforceability of
Baxter's patents.

Baxter has counterclaimed for monetary damages, injunctive
relief, and willful infringement of its patents against FMCH.
Both parties have also filed dispositive motions, some of which
have been decided by the Court.

Headquartered in Bad Homburg, Germany, Fresenius Medical Care &
Co. KgaA -- http://www.fmc-ag.com/-- is the world's largest,  
integrated provider of products and services for individuals
undergoing dialysis because of chronic kidney failure, a
condition that affects more than 1,300,000 individuals
worldwide.  Through its network of approximately 1,645 dialysis
clinics in North America, Europe, Latin America, Asia-Pacific
and Africa, Fresenius Medical Care provides dialysis treatment
to approximately 128,200 patients around the globe.  Fresenius
Medical Care is also the world's leading provider of dialysis
products such as hemodialysis machines, dialyzers and related
disposable products.  Fresenius AG holds approximately 37% of
Fresenius Medical Care & Co. KgaA's capital.

                        *     *     *

As reported in TCR-Europe on April 5, Moody's Investors Service
affirmed all ratings of Fresenius AG and subsidiary Fresenius
Medical Care & Co KGaA.  Moody's also affirmed Fresenius AG's:

   -- Corporate family rating of Ba2;
   -- EUR1 billion of senior notes rated Ba2; and
   -- EUR87.9 million of senior notes rated Ba2

Fresenius Medical Care & Co KgaA's:

   -- Corporate Family Rating of Ba2;
   -- Senior credit facility rated Ba2; and
   -- Trust Preferred securities rated B1.

As reported in TCR-Europe on April 4, Standard & Poor's Ratings
Services assigned a BB' senior secured debt rating to Fresenius
Medical Care KGaA's US$4.6 billion facilities, which were put in
place to finance the acquisition of Renal Care Group Inc. (RCG;
BB-/Positive/--).

At the same time, Standard & Poor's lowered its long-term
corporate credit ratings on the Germany-based health-care
companies, FMC and its parent Fresenius AG to 'BB' from 'BB+',
following U.S. antitrust clearance for FMC's acquisition of
U.S.-based health-care company Renal Care.  The ratings were
removed from CreditWatch, where they were originally placed on
May 4, 2005.  S&P said the outlook is negative.


GBF GEMEINNUETZIGE: Claims Registration Ends August 4
-----------------------------------------------------
Creditors of GbF gemeinnuetzige Gesellschaft fuer berufliche
Frauenforderung mbH have until Aug. 4 to register their claims
with court-appointed provisional administrator Thomas Heimes.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 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 Saarbruecken
         Area Hall 13
         1st Floor
         Branch Office Sulzbach
         Vopeliusstrasse 2
         66280 Sulzbach, Germany
      
The Court will also verify the claims set out in the
administrator's report at 9:05 a.m. on Sept. 5 at the same
venue.

The District Court of Saarbruecken opened bankruptcy proceedings
against GbF gemeinnuetzige Gesellschaft fuer berufliche
Frauenforderung mbH on July 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         GbF gemeinnuetzige Gesellschaft fuer
         berufliche Frauenforderung mbH
         Attn: Regine Grunewald, Manager
         Emperor Route 8
         66111 Saarbruecken, Germany

The administrator can be contacted at:

         Thomas Heimes
         Faktoreistrasse 4
         66111 Saarbruecken, Germany         
         Tel: (0681) 41010
         Fax: (0681) 41012 79


HEIDELBERGCEMENT AG: Aims to Reach 2007 Profit Goal this Year
-------------------------------------------------------------
HeidelbergCement AG might achieve its profit target sooner than
2007 as the company looks at cost cuts and acquisitions,
Bloomberg News says.

HeidelbergCement AG is eyeing a 17%-20% return-on-equity target
for 2007, but is optimistic it might achieve the figure this
year, chief executive Bernd Scheifele told Handelsblatt.

Mr. Scheifele's cost-cutting plans include:

   -- making redundant 1,150 administrative employees; and

   -- optimizing production capacity by lengthening the running
      time of kilns.

Cash gained from the cost-reduction measures will be used for
the company's expansion program, which entails acquiring stakes
in foreign cement firms, Handelsblatt relates.  HeidelbergCement
recently gained control of:

   -- Volsk Cement in Russia,
   -- Randers Cement and DK Beton in Denmark,
   -- Buchtarma Cement in Kazakhstan, and
   -- Doncement in Ukraine.

HeidelbergCement, which has set aside EUR500 million for further
acquisitions in Eastern Europe and Central Asia, has expressed
intention to hike its stake to more than 50% in India's Mysore
Cement Ltd.

                    About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG --
http://www.heidelbergcement.com/-- was founded in 1873 and is  
publicly traded.  The company produces cement as well as
building materials and building chemicals.  The group's fiscal
2004 revenue amounted to EUR6.9 billion.

                        *     *     *

As reported in the TCR-Europe on May 9, Standard & Poor's
Ratings Services revised its outlook on Germany-based cement
producer HeidelbergCement AG to positive from stable.  At the
same time, the 'BB+' long-term and 'B' short-term corporate
credit ratings, and the ratings on all outstanding debt of
HeidelbergCement and its related entities were affirmed.

"This reflects further improvements in the group's financial
profile in 2005 and the first quarter of 2006, as well as
reduced leverage at the Spohn Cement GmbH level," said Standard
& Poor's credit analyst Eve Greb.


HEIDELBERGCEMENT: Eyes Majority Stake in India's Mysore Cement
--------------------------------------------------------------
HeidelbergCement AG plans to take over the majority of the
Indian cement company Mysore Cement Ltd. in order to gain access
to the central and southern Indian markets.

The Frankfurter Allgemeine Zeitung reports that HeidelbergCement
AG plans to almost triple its cement production capacity in
India to 10 million tons.

Mysore Cement is a publicly listed cement company with
integrated cement plants in:

   -- Damoh, North Central India, and
   -- Ammassandra, Southern India,

and a grinding plant in Jhansi, Northern India.

Damoh and Jhansi supply, among others, the market in Bhopal,
Lucknow; Ammassandra logistically has a good access to the
rapidly growing Bangalore area.  In 2005, the cement and clinker
sales amounted to 2.2 million tons with a total capacity of 2.6
million tons.

In the first stage, HeidelbergCement intends to take over a
stake of 41.7% by a capital increase.  Upon completion of the
capital increase, HeidelbergCement plans to acquire an 8.4%
stake from Birla Group, Mysore Cement's main shareholder. This
acquisition will give HeidelbergCement more than a 50% stake in
Mysore Cement.  The buying price for this transaction will
amount to about US$100 million.  Pursuant to Indian law,
HeidelbergCement is then obligated to make a public tender
offer.

In the last 10 years, the Indian cement market has grown about
eight percent yearly.  After China, India is the second largest
cement consumer in the world.  Due to large population growth
and expansion of infrastructure, a dynamic development of
construction activities is expected in the coming years.

In 2005, the cement consumption grew by 11% to approximately 136
million tons.  The domestic cement production facilities are
presently operating at full capacity.

"The acquisition of Mysore Cement is in line with our long-term
strategy of step-by-step expanding our presence in emerging
markets," Dr. Bernd Scheifele, Chairman of the Managing Board at
HeidelbergCement, said.  "With its activities in central and
southern India, Mysore Cement offers a good starting point for
supplying cement to the rapidly developing markets in the
western part of India.  With the existing grinding plant in
Mumbai, our capacity in India will reach about 3.5 million tons
of cement."

                    About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG --
http://www.heidelbergcement.com/-- was founded in 1873 and is  
publicly traded.  The company produces cement as well as
building materials and building chemicals.  The group's fiscal
2004 revenue amounted to EUR6.9 billion.

                        *     *     *

As reported in TCR-Europe on May 9, Standard & Poor's Ratings
Services revised its outlook on Germany-based cement producer
HeidelbergCement AG to positive from stable.  At the same time,
the 'BB+' long-term and 'B' short-term corporate credit ratings,
and the ratings on all outstanding debt of HeidelbergCement and
its related entities were affirmed.

"This reflects further improvements in the group's financial
profile in 2005 and the first quarter of 2006, as well as
reduced leverage at the Spohn Cement GmbH level," said Standard
& Poor's credit analyst Eve Greb.


IMMOOR GMBH: Creditors' Meeting Slated for August 10
----------------------------------------------------
The court-appointed provisional administrator for Immoor GmbH,
Bernd Peters, will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 9:15 a.m. on
Aug. 10.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:00 a.m. on Nov. 23 at the same
venue.

Creditors have until Oct. 10 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Immoor GmbH on June 28.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Immoor GmbH
         Speicher 1-3
         28759 Bremen, Germany

         Attn: Arne Hans Immoor, Manager
         Kreisstr. 8
         28759 Bremen, Germany

The administrator can be reached at:

         Dr. Bernd Peters
         Wall 146
         28195 Bremen, Germany
         Tel: 0421/2440090
         Fax: 0421/24400929


JENOPTIK AG: Michael Mertin succeeds Norbert Thiel as COO
---------------------------------------------------------
The Supervisory Board of Jenoptik AG appointed Dr. Michael
Mertin as ordinary member of the Executive Board effective
Oct. 1, 2006.

In his new role as Director of Technology/Operating Business
(Chief Operating Officer) of Jenoptik AG, he will succeed
Norbert Thiel who will be turning his attention to new tasks
outside Jenoptik, as planned, after nine years in management
positions.

Dr. Mertin will be responsible for and drive forward the
continuing expansion of the three operating divisions. In his
future role he will also be responsible for the research and
development, environmental management and central marketing of
the Jenoptik Group.

Dr. Mertin comes from the Zeiss Group where he has held various
leading positions since 1996.

The Supervisory Board and the Management of Jenoptik AG would
like to thank Norbert Thiel for his years of contribution
towards the development and restructuring of the Thuringian
technology group.  Norbert Thiel will retain a link with the
Jenoptik Group in an advisory capacity in the area of
nanotechnology.  Together with his successor he will ensure a
smooth transition.

                      About the Company

Headquartered in Jena, Germany, Jenoptik AG --
http://www.jenoptik.com/cps/rde/xchg/jenoptik_en-- produces and  
markets components, systems and facilities for the medical,
electronics, telecommunications and semiconductor manufacturing
industries. The Company manufactures clean room for electronics
producers, diode lasers, infrared cameras and high-resolution
lenses.

                        *     *     *

As reported in TCR-Europe on Feb 21, Fitch Ratings affirmed
Jenoptik AG's ratings at Senior Unsecured B and Short-term B.  
Jenoptik's EUR150 million senior notes have also been affirmed
at B.  The Senior Unsecured rating, as well as the rating of the
EUR150 million Senior Notes are removed from Rating Watch
Negative.  A Stable Outlook is assigned to the Senior Unsecured
rating.


MARKETING HSV: Claims Registration Ends August 3
------------------------------------------------
Creditors of Marketing HSV Blau Weiss Insel Usedom Verwaltungs-
GmbH have until Aug. 3 to register their claims with court-
appointed provisional administrator Stefan Schuppa.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 13 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Stralsund
         Hall A 421
         4th Floor
         House A
         Franconia Dam 17
         Stralsund, 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 Stralsund opened bankruptcy proceedings
against Marketing HSV Blau Weiss Insel Usedom Verwaltungs-GmbH
on June 29.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Marketing HSV Blau Weiss Insel Usedom Verwaltungs-GmbH
         Ahlbecker Chaussee 1 a
         17429 Seebad Bansin, Germany

The administrator can be contacted at:

         Stefan Schuppa
         Bleichstr. 15
         17489 Greifswald, Germany         


MCM GASTRONOMIE: Claims Registration Ends August 4
--------------------------------------------------
Creditors of MCM Gastronomie GmbH have until Aug. 4 to register
their claims with court-appointed provisional administrator
Guenter Trutnau.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Aug. 25 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Meeting Room A234
         2nd Floor
         Isle 2
         42103 Wuppertal, 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 Wuppertal opened bankruptcy proceedings
against MCM Gastronomie GmbH on July 3.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         MCM Gastronomie GmbH
         Attn: Thorsten Bonnekoh, Manager
         Haardtstrasse 16 d
         45768 Marl, Germany

The administrator can be contacted at:

         Dr. Guenter Trutnau
         Kettwiger Road 32/34
         45127 Essen, Germany         


PRIMUS GMBH: Claims Registration Ends August 2
----------------------------------------------
Creditors of Primus GmbH Immobilien- und
Finanzierungsvermittlung have until Aug. 2 to register their
claims with court-appointed provisional administrator Klaus
Albert Maier.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 31 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 Stuttgart
         Room 13
         Hauffstr. 5
         70190 Stuttgart, 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 Stuttgart opened bankruptcy proceedings
against Primus GmbH Immobilien- und Finanzierungsvermittlung on
June 26.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Primus GmbH Immobilien- und Finanzierungsvermittlung
         Marienplatz 1
         70178 Stuttgart, Germany

The administrator can be contacted at:

         Klaus Albert Maier
         Wilhelmstr. 12
         70182 Stuttgart, Germany   
         Tel: 0711/164240
         Fax: 0711/1642424      


RUNNEY SPORTS: Claims Registration Ends August 4
------------------------------------------------
Creditors of Runney Sports und Fitness GmbH have until
Aug. 4 to register their claims with court-appointed provisional
administrator Marco Kuhlmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Aug. 25 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Meeting Room A234
         2nd Floor
         Isle 2
         42103 Wuppertal, 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 Wuppertal opened bankruptcy proceedings
against Runney Sports und Fitness GmbH on July 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Runney Sports und Fitness GmbH
         Attn: Kornelia Bergmann, Manager
         Heinrich-Hertz-Str. 16
         40699 Erkrath, Germany

The administrator can be contacted at:

         Marco Kuhlmann
         Simonsstrasse 80
         42117 Wuppertal, Germany         


STAHL- UND METALLBAU: Claims Registration Ends August 13
--------------------------------------------------------
Creditors of Stahl- und Metallbau Jeurissen GmbH have until
Aug. 13 to register their claims with court-appointed
provisional administrator Martin Dreschers.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Sept. 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 Aachen
         Meeting Room K 3
         3rd Floor
         Alter Posthof 1
         52062 Aachen, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Aachen opened bankruptcy proceedings
against Stahl- und Metallbau Jeurissen GmbH on July 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Stahl- und Metallbau Jeurissen GmbH
         Attn: Wilhelmus Hubertus Jeurissen, Manager
         Borsigstr. 10
         52511 Geilenkirchen-Niederheid, Germany

The administrator can be contacted at:

         Dr. Martin Dreschers
         Juelicher Road 116
         52070 Aachen, Germany         


TISCHLEREI SASSIN: Claims Registration Ends August 15
-----------------------------------------------------
Creditors of Tischlerei Sassin GmbH have until Aug. 15 to
register their claims with court-appointed provisional
administrator Holger Rhode.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Sept. 5 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 Wuppertal
         Meeting Room A234
         2nd Floor
         Isle 2
         42103 Wuppertal, 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 Wuppertal opened bankruptcy proceedings
against Tischlerei Sassin GmbH on July 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Tischlerei Sassin GmbH
         Thunbuschstrasse 8
         42781 Haan, Germany

         Attn: Martin Sassin, Manager
         Carlo-Schmid-Road 11
         40595 Duesseldorf, Germany

The administrator can be contacted at:

         Holger Rhode
         Friedrich-Ebert-Road 17
         42103 Wuppertal, Germany     
    

WAGNER- HEIN: Claims Registration Ends August 8
-----------------------------------------------
Creditors of Wagner- Hein Spezialabdichtung GmbH & Co. KG have
until Aug. 8 to register their claims with court-appointed
provisional administrator Kay Hassler.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Aug. 23 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 Flensburg
         Hall A 220
         Flensburg, 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 Flensburg opened bankruptcy proceedings
against Wagner- Hein Spezialabdichtung GmbH & Co. KG on July 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Wagner- Hein Spezialabdichtung GmbH & Co. KG
         Attn: Peter Hein, Manager
         Industrial Road 18
         24848 Kropp, Germany

The administrator can be contacted at:

         Dr. Kay Hassler
         Wrangelstrasse 17 - 19
         24937 Flensburg, Germany         


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


ADAGIO III CLO: Moody's Rates EUR17-Mln Class E Notes at (P)Ba3
---------------------------------------------------------------
Moody's assigned these provisional ratings to the notes to be
issued by Adagio III CLO Plc, an Irish special purpose company:

   -- EUR351,000,000 Class A Senior Floating Rate Notes due 2022
Notes: (P)Aaa;

   -- EUR25,000,000 Class B Senior Floating Rate Notes due 2022
Notes: (P)Aa2;

   -- EUR30,500,000 Class C Senior Subordinated Deferrable
Floating Rate Notes due 2022 Notes: (P)A2;

   -- EUR28,000,000 Class D Senior Subordinated Deferrable
Floating Rate Notes due 2022 Notes: (P)Baa3; and

   -- EUR17,000,000 Class E Senior Subordinated Deferrable
Floating Rate Notes due 2022 Notes: (P) Ba3.

EUR48,500,000 Subordinated Notes were issued but are not rated
by Moody's.

The ratings address the expected loss posed to investors by the
legal final maturity.

These provisional ratings are based upon:

   -- An assessment of the eligibility criteria and portfolio
guidelines applicable to the future additions to the
portfolio;

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

   -- The macro hedging strategy, which insulates partially
Adagio III CLO Plc from the volatility of the EUR/GBP e
xchange rates, for Sterling denominated obligations;

   -- The expertise of AXA Investment Managers Paris S.A. as
loan manager; and

   -- The legal and structural integrity of the issue.

This transaction is a high yield collateralized loan obligation
related to a portfolio of mostly European senior and mezzanine
loans with a predominance of senior loans.  AXA IM dynamically
manages this portfolio.  This portfolio was partially acquired
at closing and will be completed during, at the latest, the 12
month ramp-up period in compliance with portfolio guidelines
which include, among other tests, a Moody's Metric test, a
weighted average life test and a weighted average spread test.  
After the effective date, the portfolio of loans will be
actively managed and the investment adviser will have the
option, on behalf of the issuer to buy or sell loans.  Any
addition or removal of loans will be subject to a number of
portfolio criteria.

Moody's assigns provisional ratings prior to the closing of the
transaction based on the available information.  After complete
review of the final documentation, Moody's will endeavor to
assign definitive ratings and will disseminate them through our
Client Service Desk.  A definitive rating may differ from a
provisional rating.


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


BEKEN-ATA: Creditors Must File Claims by Aug. 7
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region declared LLP Beken-ata insolvent on May 22.

Creditors have until Aug. 7 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda Region
         Jahayeva Str. 71
         Kyzylorda
         Kyzylorda Region
         Kazakhstan
         Tel: 8 (3242) 27-23-65
              8 (3242) 27-24-55


FORT-E: Creditors Must File Claims by Aug. 7
--------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Production-Venture Company Fort-E insolvent on
May 16.  Subsequently, bankruptcy proceedings were introduced at
the company.

Creditors have until Aug. 7 to submit written proofs of claim to
the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Naberejnaya Str. 3-103
         Pavlodar
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 53-84-02


INKOM: Creditors Must File Claims by Aug. 7
-------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region declared LLP Inkom insolvent on May 15.

Creditors have until Aug. 7 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda Region
         Jahayeva Str. 71
         Kyzylorda
         Kyzylorda Region
         Kazakhstan
         Tel: 8 (3242) 27-23-65
              8 (3242) 27-24-55


IRTYSH-EKIBASTUZ: Proof of Claim Deadline Slated for Aug. 7
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Firm Irtysh-Ekibastuz insolvent on May 16.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Aug. 7 to submit written proofs of claim to
the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Naberejnaya Str. 3-103
         Pavlodar
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 53-84-02


JIGER: Proof of Claim Deadline Slated for Aug. 7
------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region declared LLP Jiger insolvent on May 15.

Creditors have until Aug. 7 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda Region
         Jahayeva Str. 71
         Kyzylorda
         Kyzylorda Region
         Kazakhstan
         Tel: 8 (3242) 27-23-65
              8 (3242) 27-24-55


KAZKOMMERTS FINANCE: S&P Assigns BB- Rating to Proposed Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' debt
rating to the Subordinated Loan Participation Notes to be issued
by, but without recourse to, Kazkommerts Finance 2 B.V. (KF2), a
Netherlands-based special-purpose vehicle.  

The Subordinated Loan Participation Notes will be issued for the
purpose of financing a subordinated loan to Kazakhstan-based
Kazkommertsbank JSC (KKB).  The rights and interests of KF2 as
lender to KKB will be charged to a trustee for the benefit of
the noteholders under a trust deed.

The issue matures in 2016, but is callable after five years,
with a coupon step-up at the call date. The credit risk of the
Subordinated Loan Participation Notes wholly reflects the
creditworthiness of KKB and the subordination of the claims.
     
The ratings on KKB reflect the rapid loan growth and significant
concentrations in lending and funding in a high-risk economic
and banking environment.  Furthermore, fast loan growth has
pressurized capitalization, which needs to be addressed soon.
KKB has been using Kazakhstan's improved economic prospects to
its advantage, attracting primary funds as well as international
debt to fund its growing profitable lending business.  

The European Bank for Reconstruction and Development's decision
to invest into the equity of KKB has improved KKB's corporate
governance.  The ratings benefit from a one-notch uplift from
expected government support in the event of a financial or
systemic crisis, as we perceive KKB to be a systemically
important bank.


PROEKT-BIZNES-MARKETING: Claims Registration Ends Aug. 7
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Proekt-Biznes-Marketing insolvent on May 16.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Aug. 7 to submit written proofs of claim to
the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Naberejnaya Str. 3-103
         Pavlodar
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 53-84-02


PROFIL-PV: Claims Registration Ends Aug. 7
------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region
declared LLP Profil-PV insolvent on May 16.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Aug. 7 to submit written proofs of claim to
the insolvency manager at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar Region
         Naberejnaya Str. 3-103
         Pavlodar
         Pavlodar Region
         Kazakhstan
         Tel: 8 (3182) 53-84-02


STROISERVIS: Claims Registration Ends Aug. 7
-------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region LLP Stroiservis declared insolvent on May 15 and
bankruptcy proceedings were introduced at the company.

Creditors have until Aug. 7 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Ushanova Str. 78-27
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel/Fax: 8 (3232) 26-24-41


SULEIMEN: Creditors' Claims Due Aug. 7
--------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
Region declared LLP Suleimen insolvent on May 11.

Creditors have until Aug. 7 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda Region
         Jahayeva Str. 71
         Kyzylorda
         Kyzylorda Region
         Kazakhstan
         Tel: 8 (3242) 27-23-65
              8 (3242) 27-24-55


UST-KAMENOGORSKY HLEBOBULOCHNYI: Creditors' Claims Due Aug. 7
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Ust-Kamenogorsky Bakery Plant Ust-
Kamenogorsky Hlebobulochnyi Kombinat insolvent on May 15.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Aug. 7 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Ushanova Str. 78-27
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel/Fax: 8 (3232) 26-24-41


VENUS COMPANY: Creditors' Claims Due Aug. 7
-------------------------------------------
LLP Venus Company has declared insolvency.  Creditors have until
Aug. 7 to submit written proofs of claim to:

         LLP Venus Company
         Baitursynova Str. 105
         Kostanai
         Kostanai Region
         458000 Kazakhstan


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


ORIX: Proof of Claim Deadline Slated for Sept. 6
------------------------------------------------
Joint Kyrgyz-Kazakh LLC Orix has declared insolvency.  Creditors
have until Sept. 6 to submit written proofs of claim to:

         LLC Orix
         Den-Syaopina Str. 306
         Bishkek, Kyrgyzstan


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


NORTEL NETWORKS: Forms Strategic Alliance with Microsoft Corp.
--------------------------------------------------------------
The convergence of the communications and IT industries took a
significant step forward as Microsoft Corp. and Nortel Networks
Corp. reported a strategic alliance based on a shared vision for
unified communications.

By engaging the companies at the technology, marketing and
business levels, the alliance will allow both companies to drive
new growth opportunities and has the potential to ultimately
transform businesses communications, reducing costs and
complexity and improving productivity for customers.

By combining Nortel's network quality and reliability with
Microsoft(R) software's ease of use, the alliance will
accelerate the availability of unified communications -- an
industry concept that uses advanced technologies to break down
today's device- and network-centric silos of communication (such
as e-mail, instant messaging, telephony and multimedia
conferencing) and makes it easy and efficient for workers to
reach colleagues, partners and customers with the devices and
applications they use most.

Nortel and Microsoft will transition traditional business phone
systems into software, with a Microsoft unified communications
software platform and Nortel software products to provide
further advanced telephony functionality.  This software-centric
approach will provide the easiest transition path for
businesses, helping enable them to reduce the total cost of
ownership and better protect current and future investments.  It
will also more quickly enable the creation of new, innovative
applications.

"Nortel and Microsoft have each led fundamental transformations
in their own market -- Nortel's digital innovation and
Microsoft's software on every desktop," said Mike Zafirovski,
president and CEO of Nortel. "By combining our unique strengths,
Microsoft and Nortel will accelerate the delivery of unified
communications -- delivering to our customers a higher-quality
user experience, with greater reliability and lower total cost
of ownership.  That's where we can make a real difference."

"We are investing together because the communications industry
is at an inflection point," said Steve Ballmer, CEO of
Microsoft.  "We will have deep collaboration in product
development with Nortel, allowing us to rapidly deliver high-
quality, highly reliable solutions that will support mission-
critical communications.  The opportunity for our customers is
fantastic.  We will enable them to realize tremendous economic
and business benefits from unified communications."

"This is a gutsy play for Nortel -- accelerating the move of our
voice technology into software and working with the world's
software leader as part of our broader business strategy to
transform the company into a software and services leader," Mr.
Zafirovski said.  "From this transaction, we believe we can
capture well beyond $1 billion in new revenue, ramping up with
increased momentum through 2009 via professional services, voice
products and applications, as well as data pull-through in the
enterprise."

"Unified communications will drive the next major advance in
individual, team and organizational productivity in today's
24x7, always-connected and increasingly mobile work
environment," said Jeff Raikes, president of the Business
Division at Microsoft.  

"Our software-based approach puts people at the center of
communications through a single identity across e-mail, voice
mail, voice over Internet protocol call processing, instant
messaging and video, and intuitively embeds communications
capabilities into people's everyday work processes, including
the Microsoft Office system and third-party software
applications."

                   Components of the Agreement

   1) Strategic alliance

      * The companies will enter into a four-year alliance
        agreement, with provisions for its extension.

      * Nortel will be Microsoft's strategic partner for
        advanced unified communications solutions and systems
        integration.

      * The two companies will form the Innovative
        Communications Alliance --
        http://www.innovativecommunicationsalliance.com  
        -- as a go-to-market vehicle.

      * Microsoft and Nortel will deploy the other's
        technologies in their enterprise networks.

   2) Solutions and systems integration
          
      * Nortel becomes a strategic systems integration partner
        for the advanced unified communications solution.

      * Nortel believes it can capture substantial new revenue
        through service offerings such as convergence planning,
        integration, optimization, monitoring and managed
        services.

   3) Joint product development

      * Nortel and Microsoft will form joint teams to
        collaborate on product development that spans
        enterprise, mobile and wireline carrier solutions.

      * The two companies will cross-license intellectual
        property.

      * Nortel and Microsoft will engage in early-stage
        integration and testing.

      * Nortel will deliver solutions that complement
        Microsoft's unified communications platform, including
        enterprise contact center applications, mission-critical
        telephony functions, advanced mobility capabilities and
        data networking infrastructure.

   4) Go-to-market initiatives

      * Microsoft and Nortel will jointly sell the advanced
        unified communications solution and integration
        services.  The plan is to develop a training and
        incentive program for the companies' sales teams.

      * Both companies will invest substantial resources in         
        marketing, business development and delivery.

      * Microsoft and Nortel will build a joint channel
        ecosystem using both companies' systems integrator,
        reseller, and service provider relationships.

      * The two companies will develop a series of compelling
        solutions for a range of customers, including small and
        medium-sized business, large corporations and service
        providers.

                         About Microsoft

Headquartered in Redmond, Washington, Microsoft Corp. (Nasdaq:
MSFT) provides software, services and solutions that help people
and businesses realize their full potential.

                      About Nortel Networks

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

                           *     *     *

As reported in TCR-Europe on July 11, Dominion Bond Rating
Service confirmed the long-term ratings of Nortel Networks
Capital Corporation, Nortel Networks Corporation, and Nortel
Networks Limited at B (low) along with the preferred share
ratings of Nortel Networks Limited at Pfd-5 (low).  All trends
are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

As reported in the Troubled Company Reporter on June 20, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating of Nortel; assigned a B3 rating to the proposed $2
billion senior note issue; downgraded the $200 million 6.875%
Senior Notes due 2023 and revised the outlook to stable from
negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and
assigned its 'B-' senior unsecured debt rating to the company's
proposed $2 billion notes.  S&P said the outlook is stable.


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


ADYGEYSKIY: Court Names S. Romanchin as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Adygeya Republic appointed Mr. S.
Romanchin as Insolvency Manager for OJSC Tinned Food Factory
Adygeyskiy.  He can be reached at:

         S. Romanchin
         3rd Kurskaya Str. 15
         302004 Orel Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A01-B-248-2005-11.

The Debtor can be reached at:

         OJSC Tinned Food Factory Adygeyskiy
         Promyshlennaya Str. 2
         Yablonovskiy
         Takhtamukayskiy Region
         385540 Adygeya Republic
         Russia


BIF-AGRO: Court Commences Bankruptcy Supervision
------------------------------------------------
The Arbitration Court of Rostov Region has commenced bankruptcy
supervision procedure on OJSC Bif-Agro (TIN 6125019110).  The
case is docketed under Case No. A53-1163/06-S2-36.

The Temporary Insolvency Manager is:

         N. Lemaev
         Office 504
         Oborony Str. 24
         344082 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         OJSC Bif-Agro
         Stadionnaya Str. 1
         Sloboda Krasyukovskoye
         Oktyabrskiy Region
         346492 Rostov Region
         Russia


GAZPROM: Bids for Yukos Oil's 20% Stake in Gazprom Neft
-------------------------------------------------------
OAO Gazprom has launched an offer to acquire OAO Yukos Oil's 20%
stake in Gazprom Neft, Bloomberg News reports citing Interfax
News.

As reported in TCR-Europe on June 28, Gazprom wanted to acquire
Yukos Oil's stake in Gazprom Neft at a price lower than it paid
to Millhouse Capital, Alexander Ryazanov, Gazprom Neft
president, said.  Mr. Ryazanov noted that Gazprom acquired
Millhouse Capital's 72% stake in Gazprom Neft for US$13
billion in October 2005.   

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

Alexei Serditov, a spokesman for OAO Gazprom Neft, in which
Yukos owns a stake, declined to comment, as did Gazprom's press
service, Bloomberg relates.

                         About Yukos Oil

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

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

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

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

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

                          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 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: Officially Gains Gas Monopoly Status in Russia
-------------------------------------------------------
President Vladimir Putin of Russia signed a law acknowledging
OAO Gazprom's status as the country's gas monopoly, Financial
Wire says.

The new law, Financial Wire relates, officially gives Gazprom
control over all gas exports including:

   -- liquefied natural gas,
   -- piped natural gas, and
   -- liquefied petroleum gas.

Gazprom has been the country's official "coordinator" for gas
exports, but discussions over a formal acknowledgment as a
monopoly began only this spring when a disagreement over energy
markets occurred between Russia and the European Union,
Financial Wire adds.

Experts, according to the report, say that the law might be
Russia's preemptive defense of Gazprom's monopoly status.  
Russian recently signed, but has not yet ratified, an
international Energy Charter that would allow foreign companies
to attack Gazprom.  If Russia ratifies the Energy Charter, it
would be forced to give other companies equal and
nondiscriminatory access to its pipelines.

Russia, however, claims that:

   -- the charter is outdated; and

   -- opening its export pipelines would hamper its current gas
      delivery obligations.

Russia has existing production sharing agreements with Exxon
Mobil's (NYSE: XOM) Sakhalin I project and Royal Dutch Shell's
(NYSE: RDS) Skahalin II.

                          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 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.


ITKULSKOYE: Novosibirsk Court Begins Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Novosibirsk Region has commenced
bankruptcy supervision procedure on OJSC Itkulskoye.  The case
is docketed under Case No. A45-8733/06-29/71.

The Temporary Insolvency Manager is:

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

The Debtor can be reached at:

         OJSC Itkulskoye
         Novoitkulskoye
         Chulymskiy Region
         632561 Novosibirsk Region
         Russia


KALUGA-FURNITURE: Court Names A. Razmakhova Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Kaluga Region appointed Ms. A.
Razmakhova as Insolvency Manager for CJSC Kaluga-Furniture.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A23-6511/05B-10-137.  

The Debtor can be reached at:

         CJSC Kaluga-Furniture
         Skladskaya Str. 6.
         UNR Territory
         Sosnovyj
         248016 Kaluga Region
         Russia


KYSHTYMSKAYA GARMENT: S. Spirin to Manage Insolvency Assets
-----------------------------------------------------------
The Arbitration Court of Chelyabinsk Region appointed Mr. S.
Spirin as Insolvency Manager for LLC Kyshtymskaya Garment
Factory (TIN 7413009223).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A76-32423/05-52-231.

         Apartment 161
         Rumyantseva Str. 33
         392024 Chelyabinsk Region
         Russia

The Debtor can be reached at:

         LLC Kyshtymskaya Garment Factory
         Chelyuskintsev Str. 82a
         Kyshtym
         Chelyabinsk Region
         Russia


LGOVSKAYA ZARYA: Kursk Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Arbitration Court of Kursk Region has commenced bankruptcy
supervision procedure on LLC Lgovskaya Zarya.  The case is
docketed under Case No. A35-2807/06 g.

The Temporary Insolvency Manager is:

         E. Slepushkina
         Room 314
         K. Marksa Str. 51
         305029 Kursk Region
         Russia

The Debtor can be reached at:

         LLC Lgovskaya Zarya
         Zelenaya Str. 17
         Lgov
         307000 Kursk Region
         Russia


NEOLIT: Yamalo-Nenetskiy Court Starts Bankruptcy Supervision
------------------------------------------------------------
The Arbitration Court of Yamalo-Nenetskiy Autonomous Region has
commenced bankruptcy supervision procedure on CJSC Neolit.
The case is docketed under Case No. A81-7648/2005.  

The Temporary Insolvency Manager is:

         Mr. A. Bratchikov
         Apartment 1
         Okunevaya Str. 8
         Tarko-Sale
         Purovskiy Region
         Yamalo-Nenetskiy Autonomous Region
         629851 Tyumen Region
         Russia
         
The Debtor can be reached at:

         CJSC Neolit
         Novyj Urengoj
         Tyumen Region
         Russia


PROKHLADNENSKAYA RAY-SEL-KHOZ-TEKHNIKA: Popov to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Kabardino-Balkariya Republic appointed
Mr. A. Popov as Insolvency Manager for OJSC Prokhladnenskaya
Ray-Sel-Khoz-Tekhnika.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A20-651/2006g.

The Debtor can be reached at:

         OJSC Prokhladnenskaya Ray-Sel-Khoz-Tekhnika
         Prasol Str. 12
         Prokhladnyj
         Kabardino-Balkariya Republic
         Russia


SAKHALIN-GAS-SERVICE: A. Bocharov to Manage Insolvency Assets
-------------------------------------------------------------
The Arbitration Court of Sakhalin Region appointed Mr. A.
Bocharov as Insolvency Manager for CJSC Sakhalin-Gas-Service
(TIN 6501092405).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A59-373/05-S9.

         Ukrainskaya Str. 14A
         693012 Yuzhno-Sakhalinsk Region
         Russia

The Debtor can be reached at:

         CJSC Sakhalin-Gas-Service
         Ukrainskiy Per. 15
         693012 Yuzhno-Sakhalinsk Region
         Russia


TROITSKOYE: Court Names V. Veryasov as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Mordoviya Republic appointed Mr. V.
Veryasov as Insolvency Manager for LLC Agricultural Company
Troitskoye (TIN 1303067990).  

         V. Veryasov
         Gagarina Str. 42
         Torbeevo
         431030 Mordoviya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A39-706/06-37/12.

The Debtor can be reached at:

         LLC Agricultural Company Troitskoye
         Kamenki
         Atyashevskiy Region
         431812 Mordoviya Republic
         Russia


YUKOS OIL: CEO Steven Theede Steps Down, Expects Liquidation
------------------------------------------------------------
OAO Yukos Oil Co. CEO Steven Theede has resigned after court-
appointed bankruptcy manager Eduard Rebgun recommended the
liquidation of the Moscow-based oil firm.  

Mr. Theede, who will leave his post on Aug. 1, said there was
"nothing left" he could do to prevent the company's liquidation,
Andrew E. Kramer writes for The New York Times, citing Mr.
Theede's letter to the board released hours before a bankruptcy
hearing in Moscow.

Mr. Theede revealed that Mr. Rebgun's report values the
company's assets at RUB450 billion (US$16.89 billion).

"Based upon these figures, Mr. Rebgun concludes that the
financial rehabilitation of Yukos is not possible due to the
insolvency he finds in his analysis," Mr. Theede said.  
"However, based upon the analysis performed thus far by Yukos,
Yukos is solvent and Mr. Rebgun's claim and asset summaries are
flawed."

According to Mr. Theede, Mr. Rebgun asserts that there are
approximately RUB500 billion (US$18.76 billion) in claims
against the company.  

"This figure does not comport with the claim information
recently provided to Yukos by Mr. Rebgun showing that US$16.98
billion of claims have been admitted by the Moscow Arbitration
Court, which is actually less than the claims that Yukos had
assumed it would have to pay in its June 1, 2006 Plan Outline,
and significantly less than the value of Yukos' assets," Mr.
Theede continued.

Mr. Theede insists that a Yukos representative was barred from
obtaining a copy of Mr. Rebgun's report, thus speculating as to
what Mr. Rebgun's methodology in calculating Yukos' asset value.

"This figure is materially in error and significantly below the
fair market value of Yukos' assets, particularly given the
rising price of oil and natural gas in world markets," Mr.
Theede said.  "Recent market events show that Yukos'
approximately US$30 billion valuation of its business is a
conservative estimate.  Since Yukos proposed its Plan Outline,
the market price for crude oil has continued to rise and is now
over $75 per barrel."

Gregory L. White of The Wall Street Journal reports that Mr.
Rebgun dismissed Mr. Theede's comments as "emotional".  Mr.
Rebgun said he will make the details of his analysis public on
Wednesday, the WSJ relates.

Yukos creditors will reconvene tomorrow, July 25, to decide
whether to recommend the company's liquidation or accept a
Yukos-backed recovery plan.

                        About Yukos

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

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

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

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

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


YUKOS OIL: Gazprom Bids for 20% Stake in Gazprom Neft
-----------------------------------------------------
OAO Gazprom has launched an offer to acquire OAO Yukos Oil's 20%
stake in Gazprom Neft, Bloomberg News reports citing Interfax
News.

As reported in TCR-Europe on June 28, Gazprom wanted to acquire
Yukos Oil's stake in Gazprom Neft at a price lower than it paid
to Millhouse Capital, Alexander Ryazanov, Gazprom Neft
president, said.  Mr. Ryazanov noted that Gazprom acquired
Millhouse Capital's 72% stake in Gazprom Neft for US$13
billion in October 2005.   

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

Alexei Serditov, a spokesman for OAO Gazprom Neft, in which
Yukos owns a stake, declined to comment, as did Gazprom's press
service, Bloomberg relates.

                          About Gazprom

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

                         About Yukos Oil

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

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

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

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

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


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


AGRO PLUS: Court Names I. Yasnogor as Insolvency Manager
--------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Mr. I.
Yasnogor as Liquidator/Insolvency Manager for LLC AGRO PLUS
(code EDRPOU 30260806).  He can be reached at:

         I. Yasnogor
         a/b 2350
         49040 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 18.  The case is docketed
under Case No. B 15/59/06.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Agro Plus
         Shevchenko Str. 1
         Shevchenko
         Dnipropetrovsk District
         52053 Dnipropetrovsk Region
         Ukraine


CHORNOMORRIBZBUT: Court Names JSCB Legbank as Liquidator
--------------------------------------------------------
The Economic Court of Kyiv Region appointed JSCB Legbank (code
EDRPOU 14291780) as Liquidator for LLC Trade House
Chornomorribzbut (code EDRPOU 31028183).  The Liquidator can be
reached at:

         JSCB Legbank
         Zhilyanska Str. 27
         01033 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 11.  The case is docketed
under Case No. 23/74-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Trade House Chornomorribzbut
         Ivan Kudrya Str. 26
         Kyiv Region
         Ukraine


CREATIVE: Kyiv Court Starts Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Creative (code EDRPOU 33057730).  
The case is docketed under Case No. 15/252-b.  

The Temporary Insolvency Manager is:

         I. Konstantinov
         Shors Str. 29
         01015 Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Creative
         Shors Str. 29
         01015 Kyiv Region
         Ukraine


ELMART: Kyiv Court Starts Bankruptcy Supervision
------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC ELMART (code EDRPOU 30575912).  The
case is docketed under Case No. 15/250-b.

The Temporary Insolvency Manager is:

         I. Konstantinov
         Shors Str. 29
         01015 Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Elmart
         Shors Str. 29
         01015 Kyiv Region
         Ukraine


ENERGOUNIVERS: Court Starts Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Energounivers (code EDRPOU
30757347) on May 17.  The case is docketed under Case
No. 43/252.

The Temporary Insolvency Manager is:

         Oleksandr Maksimov
         10-V/36
         101 Quarter
         Kremenchuk
         39601 Poltava Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Energounivers
         Horiv Str. 41-B
         04071 Kyiv Region
         Ukraine


FARNAT: Donetsk Court Names S. Kitsul as Insolvency Manager
-----------------------------------------------------------
The Economic Court of Donetsk Region appointed Mr. S. Kitsul as
Liquidator/Insolvency Manager for LLC Farnat (code EDRPOU
24455225).  He can be reached at:

         Liskivska Str. 28/15
         02097 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 3.  The case is docketed under
Case No. 42/58 B.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         LLC Farnat
         Kaluzka Str. 10
         08003 Donetsk Region
         Ukraine


IRTA: Court Names Svitlana Babich as Insolvency Manager
-------------------------------------------------------
The Economic Court of Kyiv Region appointed Svitlana Babich as
Insolvency Manager for LLC Irta (code EDRPOU 32853587).  She can
be reached at:

         Artema St. 1/5-701
         04053 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 17.  The case is docketed
under Case No. 43/277.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Irta
         Litvinenko-Volgemut Str. 2-A
         03194 Kyiv Region
         Ukraine


LINGVA-SOFT: Kyiv Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC Lingva-Soft (code EDRPOU 32709172).
The case is docketed under Case No. 15/251-b.  

The Temporary Insolvency Manager is:

         I. Konstantinov
         Druzhbi Narodiv Boulevard 8/9
         01103 Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Lingva-Soft
         Druzhbi Narodiv Boulevard 8/9
         01103 Kyiv Region
         Ukraine


SPECAGROTRANS: Court Names Volodimir Matlash as Liquidator
----------------------------------------------------------
The Economic Court of Poltava Region appointed Volodimir Matlash
as Liquidator/Insolvency Manager for OJSC Specagrotrans (code
EDRPOU 21042014).  He can be reached at:

         Volodimir Matlash as Liquidator
         a/b 487
         36034 Poltava Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 18.  The case is docketed
under Case No. 20/33.

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         OJSC Specagrotrans
         Druzhbi Str. 1
         Poltava Region
         Ukraine


SVATOVO' TRADE: Court Names Oleksij Voronko as Liquidator
---------------------------------------------------------
The Economic Court of Lugansk Region appointed Oleksij Voronko
as Liquidator/Insolvency Manager for OJSC Svatovo' Trade
Equipment Plant (code EDRPOU 02132438).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 4.  The case is docketed under
Case No. 9/146 b.

The Economic Court of Lugansk Region is located at:

         Geroiv VVV Square 3a
         91000 Lugansk Region
         Ukraine

The Debtor can be reached at:

         OJSC Svatovo' Trade Equipment Plant
         Zavodskij Lane 9
         Svatovo
         92600 Lugansk Region
         Ukraine


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


A GARBUTT: Financial Woes Prompt Liquidation
--------------------------------------------
A Garbutt & Son Limited is winding up its operations after
creditors established the company could no longer continue its
business due to mounting debts.

Andrew James Nichols of Redman Nichols was appointed Liquidator.

The company can be reached at:

         A Garbutt & Son Limited
         26 Rythergate
         Cawood, Selby
         North Yorkshire YO8 3TP
         United Kingdom
         Tel: 01757 268 227


AMBROSDEN COURT: Barclays Bank Hires Receivers from Baker Tilly
---------------------------------------------------------------
Barclays Bank PLC appointed Michael D. Rollings, Geoffrey L.
Carton-Kelly and Alan Lovett of Baker Tilly joint administrative
receivers of Ambrosden Court Limited (Company Number 969279) on
July 7.

Headquartered in Birmingham, Baker Tilly --
http://www.bakertilly.co.uk/-- is a leading independent firm of  
chartered accountants and business advisers in the United
Kingdom. The firm's annual fee income is over GBP168 million and
is part of a global network, which has 122 member firms in 85
countries as an independent member of Baker Tilly International.

A family company with a building pedigree which can be traced as
far back as the 17th Century, Ambrosden Court Limited --
http://www.ambrosdencourt.co.uk/-- has specialized in high  
quality buildings and developments for over 35 years; shops,
flats, offices, factories, design and build projects, a major
involvement in the development of the Alto Golf and Country Club
in the Algarve, southern Portugal, and the renown marque of
County Homes.


ASHTEAD GROUP: Acquisition Plan Spurs S&P to Affirm BB- Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on U.K.-based plant-hire company Ashtead
Group PLC, following confirmation of the company's agreement to
acquire NationsRent Cos. Inc., the sixth-largest full-service
equipment provider in the U.S., for a total cost of US$1.05
billion (GBP568 million).  The outlook remains stable.
     
"Ashtead has enough financial flexibility at the rating level to
allow for the acquisition of NationsRent, based on the proposed
GBP150 million commitment of equity that is integral to the
transaction," said Standard & Poor's credit analyst Jarrad
Oberhardt.

"In addition, the affirmation reflects our opinion that trading
conditions in Ashtead's key North American markets will remain
strong for at least the next 12 months."

The proposed US$800 million increase to Ashtead's existing
asset-backed loan (ABL) has been assigned a senior secured debt
rating of 'BB', one notch above the corporate credit rating, and
a recovery rating of '1', reflecting our expectation of full
recovery of principal for senior secured lenders in the event of
a payment default.  The ABL will now comprise US$1.6 billion in
total.  

In addition, the proposed US$550 million second-lien notes due
2016 to be issued by related entity Ashtead Capital Inc. have
been assigned an issue rating of 'B', two notches below the
corporate credit rating due to the level of prior liabilities,
and a recovery rating of '4', indicating our expectation of
marginal recovery (25%-50%) of principal in the event of payment
default.  The existing US$250 million second-lien notes at
Ashtead Holdings PLC due 2015 have also been assigned a recovery
rating of '4', because they are expected to rank pari passu with
the new second-lien notes due 2016. The ratings are subject to
final documentation.

Standard & Poor's expects Ashtead to benefit from continuing
favorable conditions in the U.S. throughout the remainder of
2006 and also into 2007.  Ashtead's markets remain highly
cyclical, however, and forward visibility is limited.

We expect Ashtead to retain funds from operations to net debt of
about 20% and net debt to EBITDA of 3.0x-4.0x, over the course
of a cycle.  The ratings could come under pressure if financial
performance materially deviates below these levels, triggered
either by an unexpected turn of the cycle or unforeseen problems
to integrate NationsRent.

On the other hand, further sustained improvement in credit
metrics and an appropriate level of free operating cash flow
combined with real debt reduction would be required before an
upgrade could be considered.


ASPERN PATH: Creditors Pass Winding Up Resolution
-------------------------------------------------
Creditors of Aspern Path Limited passed a resolution to wind up
the company's operations on April 26.

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

The company can be reached at:

         Aspern Path Limited
         17 Church Park Close
         Coventry CV6 2EQ
         United Kingdom
         Tel: 024 7633 6633


BELVOIR DESIGNS: Creditors' Meeting Slated for July 31
------------------------------------------------------
Creditors of Belvoir Designs Ltd. (Company Number 04691452) will
meet at 10:00 a.m. on July 31 at:

         St. Nicholas House
         31 Park Row
         Nottingham NG1 6FQ
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon, on July 28 at:

         Allan Watson Graham and Richard James Philpott
         Joint Administrators
         KPMG
         Peat House
         1 Waterloo Way
         Leicester LE1 6LP
         United Kingdom
         Tel: (0116) 256 6000
         Fax: (0116) 256 6050

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


CABLE & WIRELESS: Proposes to Buy KeyTech Ltd for GBP113 Million
----------------------------------------------------------------
Cable and Wireless PLC made a formal proposal to the Board of
Directors of KeyTech Limited, the holding company of the leading
telecommunications group in Bermuda, to acquire 100% of
KeyTech's outstanding share capital.

The proposal values each KeyTech share at BMD$17, equivalent to
BMD$205 million (approximately GBP113 million), and is payable
in cash.  This represents a premium of 35% over the 30 day
weighted average closing price of BMD$12.61.  The proposal is
subject to customary due diligence and regulatory approvals, and
KeyTech Board and shareholder approvals.

Cable & Wireless has been the primary provider of international
telecommunications services in Bermuda for over 115 years.  

"The provision of a comprehensive service offering combined with
Cable & Wireless' international scale and expertise will benefit
both our customers and the economy of Bermuda," Harris Jones,
Group Managing Director of Cable and Wireless disclosed.

"In addition, we will be well positioned to meet future
competitive and technological challenges with enhanced service
offerings and investments in infrastructure," Mr. Jones
concluded.

                      About KeyTech Limited

KeyTech Limted -- http://www.keytech.bm/-- is a diversified  
telecommunications holding company focused largely on the
Bermuda market.  Its key business segments are Bermuda Telecom
Company Limited, M3 Wireless Ltd., Logic Communications Limited
and Bermuda Yellow Pages Limited.   For the financial year to
31st March 2006, KeyTech reported total revenues of BD$98.9
million and consolidated net income of BD$11.7 million.

                     About Cable & Wireless

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

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

                        *     *     *

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

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


CITY FINANCIAL: Liquidator Sets July 31 Claims Bar Date
-------------------------------------------------------
Appointed Liquidator Anthony Harry Hyams requires creditors of
City (Financial) Focus Limited to send in their full names,
addresses and descriptions, full particulars of debts or claims,
and the names and addresses of Solicitors (if any) on or before
July 31 at:

         Marriotts LLP
         Allan House
         10 John Princes Street
         London W1G 0AH
         United Kingdom

The company can be reached at:

         City (Financial) Focus Limited
         65 Duke Street
         London W1K 5AJ
         United Kingdom
         Tel: 020 7437 4375
         Fax: 020 7437 4376


CROWN CORK: Moody's Affirms Ba3 Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service affirmed the Corporate Family Rating
of Crown Cork and Seal Company, Inc., as well as ratings on the
debt instruments of Crown and its operating subsidiaries,
including Crown Americas LLC's US$365 million senior secured
term loan B.  Moody's expects that the proposed US$200 million
increase in term loan B will be used to fund a share repurchase
of about US$100 million, fund a U.K. pension obligation of about
GBP30 million (US$55 million), reduce borrowings under the
existing revolver, and pay fees and expenses.

Key ratings factors for packaging companies include:
   
   -- financial leverage and interest coverage,

   -- operating profile as reflected in operating profitability
and asset efficiency, and

   -- competitive position as reflected in revenue size, the
value-added nature of the company's products, ability of
customers to switch to other suppliers, and substrate
diversity.

Crown exhibits an overall credit profile that remains consistent
with a corporate family rating of Ba3, with the financial
leverage and interest coverage factor being weak for the rating
category, operating profile in line with the rating category,
and competitive profile relatively strong for the rating
category.  

Moody's estimates that pro forma for the recently announced
increase in term loan B at Crown Americas to US$365 million from
US$165 million, Crown's total debt to EBITDA, adjusted for
operating leases, pensions, and asbestos liabilities would rise
to over 5.0 times, while free cash flow to debt would be in the
high single digits and EBIT interest coverage would be below 2.0
times.

Moody's expects Crown to maintain EBIT margins in the mid to
high single digits and EBIT to gross property, plant, and
equipment in the low teens.  Strengths in Crown's competitive
profile include annual revenue of over US$7.0 billion and a
concentrated industry structure that contributes to stability in
the company's overall market share.

Ratings affirmed:

   -- US$410 million US Revolving Credit Facility due 2011:Ba2;

   -- US$350 million European Revolving Credit Facility due
2011: Ba2;

   -- US$40 million Canadian Revolving Credit Facility due 2011:
Ba2;

   -- US$365 million (originally $165 million) US Term Loan B
due 2012: Ba2;

   -- US$348 million Euro Term Loan B due 2012: Ba2;

   -- US$500 million Crown Americas senior notes due 2013: B1;

   -- US$600 million Crown Americas senior notes due 2015: B1;

   -- EUR460 million ($558 million) European Holdings 6.25%
First Lien Notes due September 1, 2011: Ba2;

   -- US$200 million Crown Cork & Seal Company, Inc. 8.00%
Senior Unsecured Notes due April 15, 2023: B2;

   -- US$350 million Crown Cork & Seal 7.375% Senior Unsecured
Notes due December 15, 2026: B2;

   -- US$150 million Crown Cork & Seal 7.50% Senior Unsecured
Notes due December 15, 2096: B2;

   -- US$107 million (originally US$300 million) Crown Cork &
Seal Finance PLC Senior Unsecured Notes, due
      December 15, 2006: B2;

   -- Speculative Grade Liquidity Rating: SGL-2; and

   -- Corporate Family Rating at Crown Cork & Seal Company,
Inc.: Ba3

The ratings outlook is stable.

Large share repurchases beyond those currently expected, or
significant debt-financed acquisitions, or evidence of inability
to cope with raw materials price increases or other exogenous
shocks, could put downward pressure on the ratings.  The outlook
or ratings likely would come under pressure if on a sustained
basis adjusted total debt to EBITDA exceeds 5.0 times or free
cash flow to debt deteriorates to below 5%.  Conversely, if
Crown exhibits sustained reduction in leverage and improvement
in free cash flow such that total debt to EBITDA declines toward
4.0 times and expected free cash flow to debt improves to above
10%, the ratings could be raised.

Crown Holdings, Inc., together with its principal subsidiary
Crown Cork and Seal Company, Inc., headquartered in
Philadelphia, Pennsylvania, is a leading global manufacturer of
steel and aluminum containers for food, beverage, and consumer
products.  Revenues for the twelve months ended June 30 were
approximately US$7.0 billion.


CROWN CORK: Fitch Gives B+ Issuer Default Rating
------------------------------------------------
Fitch rates Crown Holdings Inc., Crown Cork & Seal Company,
Inc., Crown Americas LLC and Crown European Holdings S.A. as:

Crown Holdings:

   -- Issuer Default Rating (IDR) B+

Crown Cork & Seal Company:

   -- IDR B+; and
   -- Senior unsecured notes B/Recovery Rating (RR) of 5

Crown Americas LLC:

   -- IDR B+;
   -- Senior secured dollar term facility BB+/RR1;
   -- Senior secured dollar revolving facility BB+/RR1; and
   -- Senior unsecured notes B+/RR4.

Crown European Holdings S.A.:

   -- IDR B+;
   -- Senior secured euro term facility BB+/RR1;
   -- Senior secured euro revolving facility BB+/RR1; and
   -- Senior secured euro 1st priority notes BB+/RR1.

Approximately US$3.5 billion of debt is covered by the ratings.
The Rating Outlook is Stable.

The ratings reflect Crown's leading market share across its
product categories, balanced revenue mix, geographic
diversification, good liquidity, modest near-term debt
maturities, volume growth in emerging markets, and focus on debt
reduction.  Rating concerns include high leverage, escalating
raw materials costs, intense competition and low unit volume
growth in mature markets, and to a lesser extent, asbestos
liability.  Broader packaging conversion trends towards plastics
are also a consideration, although not a primary rating factor.

The Stable Outlook reflects the relatively steady demand in
Crown's key end-markets, consistent operating performance and
solid cash generation.  The company's demonstrated ability to
pass-through most raw materials price increases is also noted.

The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes.  The recovery analysis also considers jurisdictional
issues, with approximately 70% of the company's assets residing
outside of the U.S.  

The RRs for Crown Americas, LLC., and Crown European Holdings,
SA's senior secured credit facility, consisting of dollar-based
and foreign currency term loans and revolving credit facilities
reflect significant expected recovery due to security from
substantially all U.S. assets and certain foreign subsidiary
assets, 65% pledge of capital stock of non-U.S. subsidiaries of
Crown Americas, as well as substantial cushions of unsecured
debt and equity.

The US$504 million of term loans mature in 2012 and are held at
Crown Americas (US$165 million) and Crown European Holdings
(EUR287 million/US$339 million).  The revolving credit
facilities mature in 2011 and consist of US$410 million at Crown
Americas, US$350 million at Crown European Holdings, and US$40
million at Crown Canada.

The U.S. based credit facilities are guaranteed by Crown
Holdings, Crown Cork & Seal, Crown Americas, and Crown
International Holdings.  The European-based facilities are
guaranteed by the same entities as well as certain foreign
guarantor subsidiaries.

The 6.25% senior secured first priority notes held at Crown
European Holdings (EUR460 million/US$587 million, due 2011) are
rated RR1; (expected 91%-100% recovery) which reflects
outstanding recovery prospects in a distressed scenario deriving
from a first priority lien on certain foreign subsidiary assets,
100% stock of Crown Cork & Seal, and significant debt with lower
priority.  These notes are guaranteed by the same entities
guaranteeing the European based credit facilities listed above.

The Recovery Rating for the US$1.1 billion of senior unsecured
notes held at Crown Americas (US$500 million of 7.625% notes,
due 2013 and US$600 million of 7.75% notes, due 2015) is RR4;
(expected 31%-50% recovery) and reflects the expectation of
average recovery due to lack of security for the notes, and
limited enterprise value remaining after allocation to senior
secured debt in a distressed scenario.  

These notes are guaranteed by Crown and each of Crown's U.S.
restricted guarantor subsidiaries.  Upon a change of control the
notes are puttable at 101% of par.  The 7.625% notes become
callable in November 2009, and the 7.75% notes become callable
in November 2010.

The Recovery Rating for the US$807 million of senior unsecured
notes held at Crown Cork & Seal (US$107 million of 7.0% notes,
due 2006; US$350 million of 7.375% notes, due 2026; US$150
million of 7.5% notes, due 2096; and US$200 million of 8.0%
notes, due 2023) is RR5; (expected 11%-30% recovery) and
reflects the below average recovery prospects for these notes,
and also considers their structural subordination.  

These notes are guaranteed by Crown Holdings.  It should be
noted that while this class of debt carries a lower expected
recovery under the assumptions of a distressed scenario, US$107
million will mature in December 2006 and is covered by adequate
liquidity.

The company's liquidity at the end of the first quarter was
about US$563 million, and consisted of cash and available
revolver.  Liquidity has declined somewhat over the past five
quarters largely as a result of substantial cash payments in
2005 for debt restructuring fees and pension contributions.

The company has US$139 million of debt maturities due in 2006,
which will be funded by cash from operations and available
liquidity.  Additionally, Crown has two receivables
securitization facilities of US$225 million and EUR120 million,
and Fitch estimates availability under these facilities of about
US$110 million.

Cash generation has been solid for the past several years with
the notable exception of 2005 when the company reported negative
US$360 million of free cash flow and negative US$122 million of
operating cash flow.  Fitch notes that the significant decline
was primarily the result of US$354 million of one-time cash pre-
payment fees incurred in connection with the 2005 debt
refinancing, as well as US$401 million of pension contributions
which included US$266 million of accelerated payments.

Excluding the pre-payment fees and the accelerated portion of
the pension contribution, pro-forma free cash flow would have
been about US$260 million.

Crown's credit metrics have been improving over the past few
years as the company has been paying down debt with funds from
divestitures and cash from operations.  The debt refinancing in
2005 also reduced interest expense and extended major debt
maturities for several years.  

However, leverage remains relatively high.  As of Dec. 31, 2005,
the company had leverage of 4.1 times and EBITDA interest
coverage of 2.3x.  The company's 2005 refinancing lowered
interest expense by roughly 30% based on a 2006 gross interest
expense projection of about US$250 million.  

Covenants under the senior secured credit facilities limit debt-
to-EBITDA to 4.25x through Sept. 30, 2007 and EBITDA interest
coverage to 2.75x through the same date.  It should be noted
that Fitch's calculation of these ratios is not equivalent to
those allowed for covenant compliance.

The company is benefiting from its focused strategy of organic
growth in the metals packaging sector.  Through divestitures
over the past several years, the company has largely exited
plastics-based packaging operations.  Simultaneously, the
company has aggressively pursued growth opportunities in
emerging markets, where it is well positioned to capture sizable
new volume.  

The company has recently added sold-out new capacity that will
increase volumes in beverage cans by 15%-20% outside North
America.  In mature markets, Crown intends to maintain market
share and expand production of specialty and niche-market metal
packaging, which typically garners higher margins.

Challenges include escalating raw materials costs and
maintaining unit volumes, particularly in mature markets.
Crown's principal raw materials comprise nearly 60% of cost of
goods sold and each have shown price increases of 16% to 20% or
more in the past year.  The company has been successful for the
most part in implementing price increases and maintaining
profitability despite the higher prices.

However, Fitch remains cautious about the company's continued
ability to pass-through all price increases and maintain
volumes, especially considering the intense price competition
within the metal packaging industry.  

Management has noted a 6% loss of North America beverage can
volume recently, which was due to price competition.  The
company believes this volume will be replaced with new business,
which will be fully realized sometime in 2007.  Additionally,
double-digit beverage can volume growth in certain emerging
markets will likely bolster total volume growth, and 5% global
volume growth across all products is expected in 2006.

In addition, the company has asbestos liability exposure from a
business acquired over 40 years ago.  Crown has accrued a
provision for asbestos liability claims of about US$211 million
as of March 31, 2006 and had about 80,000 claims outstanding as
of the same date.  Fitch is encouraged by the trend in annual
new claims and cash payments for settlements, both of which have
been declining each year for the past several years.

However, the issue remains as an ongoing ratings consideration.
The company expects to pay about US$25 million in asbestos-
related claims in 2006.  Fitch used a US$200 million asbestos-
related liability estimate in the calculation of enterprise
value for the recovery analysis.

Significant divestitures seem unlikely going forward.  Fitch
believes the company is now positioned to generate healthy
operating cash flows over the intermediate term and will likely
reduce capital expenditures somewhat.  As cash generation
improves, Fitch expects that Crown will likely continue to focus
on debt reduction and prudent asset management.  

Management has indicated that substantive acquisitions are not
part of its strategic plan.  Additionally, the company has about
US$145 million remaining in an authorized share repurchase
program that was initiated to offset dilution.

Crown repurchased approximately US$38 million of common stock in
2005 and US$9 million in the first quarter of 2006.  Debt
maturities are modest over the next several years, with the
exception of US$139 million in 2006, which includes US$107
million of 7.0% senior unsecured notes at Crown Cork & Seal
maturing in December 2006.


CUSTOM LINERS: DEM Finance Appoints Tenon Recovery as Receivers
---------------------------------------------------------------
DEM Finance PLC appointed Dilip K. Dattani and Patrick Ellward
of Tenon Recovery joint administrative receivers of Custom
Liners Limited (Company Number 0454007) on July 7.

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

Custom Liners Limited can be reached at:

         West Street
         Worsbrough Dale
         South Yorkshire S70 5PD
         United Kingdom
         Tel: 01226 730 123


DAMONT AUDIO: Creditors Nominate Liquidator
-------------------------------------------
C. M. Iacovides of Jeffreys Henry Jacobs was nominated
Liquidator of Damont Audio Limited during an extraordinary
general meeting on April 24.

The company can be reached at:

         Damont Audio Limited
         20-30 Blyth Road
         Hayes
         Middlesex UB3 1BY
         United Kingdom
         Tel: 020 8573 5122


EARTH FROM THE AIR: Names Alan R. Price to Liquidate Assets
-----------------------------------------------------------
Alan R Price of Price & Co was appointed Liquidator of Earth
From the Air Limited after creditors opted to wind up the
company on April 25.

The company can be reached at:

         Earth From the Air Limited
         7 Torriano Mews
         London NW5 2RZ
         United Kingdom
         Tel: 020 7336 0298


EAST VEST: Caroline Vestey Taps Receivers from Kingston Smith
-------------------------------------------------------------
Caroline Vestey appointed Ian Robert and Nicholas John Miller of
Kingston Smith & Partners LLP joint administrative receivers of
East Vest Limited (Company Number 04479448) on July 3.

Kingston Smith -- http://www.kingstonsmith.co.uk/-- has over  
400 people, including 45 partners, based in six offices in
London and the South East, and was founding member of KS
International, a network of over 100 offices in 49 countries
around the world.  It was originally formed in 1923.

East Vest Limited can be reached at:

         13 David Mews
         London W1U 6EQ
         United Kingdom


ESTERLINE TECHNOLOGIES: Moody's Lifts Corp. Family Rating to Ba2
----------------------------------------------------------------
Moody's Investors Service raised the Corporate Family Rating of
Esterline Technologies Corporation to Ba2 from Ba3.  The rating
on US$175 million in senior subordinate notes has been upgraded
to Ba3 from B1.  The rating outlook is stable.  This concludes
the review commenced on Feb. 17.

The rating upgrade reflects the company's strong operating
performance that has resulted in substantially improved
operating metrics, a demonstrated ability to successfully carry-
out its acquisition strategy without use of substantial
leverage, and favorable economic conditions in the company's
prime customer sector as supplier to aircraft OEM's.  Ratings
are still constrained, however, by the company's modest revenue
base and a degree of continued uncertainty in the size and scope
of future acquisitions, and risks associated with integrating
such purchases.

The stable rating outlook anticipates that Esterline will
continue to pursue modestly sized acquisitions as part of its
growth initiative, but that the company's existing businesses
will demonstrate strong performance with stable or improving
margins, and that the company will generate free cash flow that
will facilitate a moderate amount of debt reduction over the
near term.  

Ratings or their outlook could be subject to upward revision if
the company were to repay a greater amount of debt through
consistently strong cash flow generation, resulting in leverage
of under 2 times and free cash flow in excess of 15% of total
debt, while successfully growing its revenue base to over US$2
billion without any erosion of margin levels.

Conversely, ratings or their outlook could be lowered if
operating results were to face unexpected deterioration, or if
the company were to increase debt for any reason, particularly
where a large amount of additional debt were involved in a
transformational type of acquisition, such that Debt/EBITDA were
to increase to over 3.5 times, if EBIT/interest were to fall
below 2.5 times, or if free cash flow were to fall below 5% of
debt.

Over the past three years, acquisitions and a steady level of
organic growth helped Esterline to increase and diversify its
revenue base, using only a modest amount of incremental debt to
finance such growth.  Since the assignment of its initial
Corporate Family Rating of Ba3 in 2003, Esterline has nearly
doubled its revenue, driven by both acquisitions and organic
growth.  Although organic growth has slowed somewhat in the
first half of FY06, Moody's expects revenue growth to continue
over the near term, driven by healthy demand in the commercial
aerospace market.

Esterline's revenues are divided between commercial aerospace,
military, and industrial customers in both the U.S. and Europe.
Recent robust ordering levels for the company's products are an
important barometer of the company's underlying business
strength.  Esterline's backlog grew from US$482 million in
Oct. 2005 to US$633 million at the end of Q2 2006.  The
company's expanded scale, strong order backlog, and
diversification are viewed more favorably by Moody's and
contribute to the rating upgrade.

Through this rapid growth period, strong cash flow and
disciplined financial policy has allowed Esterline to achieve
and maintain leverage and interest coverage at levels consistent
with a Ba2 corporate family rating.  Moody's estimates
April 2006 Debt/EBITDA at approximately 2.9 times, versus 3.5
times as of FY 2004.  EBIT/Interest stood at 3.6 times for the
LTM ended 4/28/06, and was 4.0 times for Q2 06, illustrating
coverage of additional interest related to the new term loan.

Esterline continues to execute an acquisitive growth strategy,
buying two aerospace contractors based in the United Kingdom
over the past eight months.  In December 2005, Esterline
acquired Darchem Holdings Limited, a manufacturer of thermally
engineered components for use in the manufacture of aerospace
products for US$122 million in cash.  The acquisition was funded
with cash on hand and US$80 million drawn on its revolving
credit facility.  The company's cash flow generation has enabled
it to pay down outstandings under that facility to US$18 million
drawn at the end of Q2 06, effectively reducing the financial
leverage associated with the Darchem acquisition.

In March 2006, Esterline acquired Wallop Defence Systems Limited
(WDSL), a U.K.-based manufacturer of military pyrotechnic
devices, for US$58 million in cash, partially financed with a
$100 million term loan due 2010.  While the market for WDSL's
products should remain strong, Moody's believes that Esterline
may be more challenged to achieve an adequate financial return
on this acquisition.  

On June 26, an explosion at a WDSL plant resulted in one
fatality and several minor injuries to workers.  Britain's
Health and Safety Executive has shut the plant down until it
completes an investigation of the incident.  While near-term
losses associated with the incident are likely to be covered by
available insurance, it is uncertain when and under what
conditions production might be able to resume, and what the
impact would be on the unit's profitability.  The incident may
have some residual negative impact on Esterline's financial
results, yet Moody's believes that the size of the business unit
affected relative to Esterline's overall revenue and earnings
base mitigates the impact that this incident may have on the
company's financial profile.

Moody's assesses Esterline's liquidity position as good, as the
company is estimated to have adequate cash balances and cash
flows to cover all but large unexpected uses for capital
expenditures or working capital purposes.  As of April 2006,
Esterline reported a cash balance of US$118 million. In
addition, the company has a US$100 million revolving credit
facility in place, with about US$82 million available as of
April 2006, providing additional liquidity cushion.  Esterline's
existing US$100 million term loan facility stipulates only
minimal required principal payments until 2010, while the senior
subordinated notes do not mature until 2013.

The Ba3 rating of the senior subordinated notes due 2013, one
notch below the Corporate Family Rating, reflects the junior
position in claim of this class of debt behind all existing and
future senior debt of the company, including approximately $200
million of senior secured credit facilities.  These notes are
guaranteed by all of the company's subsidiaries.

Ratings upgraded:

Issuer: Esterline Technologies Corp.

   -- Corporate Family Rating, to Ba2 from Ba3; and

   -- Senior Subordinated Regular Bond/Debenture, to Ba3 from
B1.

Outlook Actions:

Issuer: Esterline Technologies Corp.

   -- Outlook, changed to stable from rating under review

Esterline Technologies Corporation, headquartered in Bellevue
WA, serves aerospace and defense customers with products for
avionics, propulsion and guidance systems.

The company operates in three business segments: Avionics and
Controls, Sensors and Systems and Advanced Materials.  Esterline
had LTM April 2006 revenue of US$887 million.


EUROTUNNEL GROUP: Revenue Up 2% to GBP277 Million in First Half
---------------------------------------------------------------
Eurotunnel Group has released its operating results for the
first half of 2006.

The company disclosed that revenue for the period increased two
percent reflecting GBP277 million compared with the GBP271
million revenue in 2005.

For first half of 2006, operating expenses decreased by nine
percent reflecting GBP116 million operating expenses from GBP127
million operating expenses for the same period in 2005.

The significant reduction of expenses and an increased revenue
contributed to the raised operating margin of 12% showing GBP161
million for the first half in 2006 compared with GBP144 million
for the same period in 2005.

For the second half of 2006, Eurotunnel pointed out the
situation created by the refusal of certain creditors to approve
the proposed financial restructuring and, by consequence, the
request for the safeguard procedure in France could have a
negative impact on customer reservations or supplier demands
which is difficult to predict.

"Eurotunnel's operating results for the first half of this year
are very good," Jacques Gounon, Eurotunnel's Chairman and Chief
Executive disclosed.  "This marked improvement is the tangible
result of the considerable efforts made by the staff and shows
the potential Eurotunnel has.  It would be an injustice if these
efforts were reduced to nothing by the refusal of creditors to
reach a rapid solution to the question of the debt."

                        About the Company

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

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

As reported by TCR-Europe on July 14, Eurotunnel Group was
forced to place itself under creditor protection at the
Commercial Court of Paris pursuant to the French law "procedure
de sauvegarde" on July 13, after restructuring talks with
bondholders failed.

The parties have been in talks to restructure Eurotunnel's
outstanding EUR6.2 billion debt.

On June 27, Eurotunnel turned down the restructuring plan
prepared by a group of secured bondholders led by Deutsche Bank
AG asserting that it requires too much debt and gives too much
to bondholders.

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

The plan rivaled the preliminary restructuring agreement backed
by Eurotunnel, Goldman Sachs Group Inc., Macquarie Bank Ltd. and
Barclays PLC.  The plan dated May 23, valued the company at
around EUR7.03 billion and included a EUR1.5 billion hybrid
issue with a 6% to 9% coupon and would reduce debt by 54%.

Under the agreement, bondholders will get a GBP75 million return
for their GBP1.9 billion bond holdings.

On July 12, Eurotunnel presented an ultimate proposal to reach a
compromise between the May 23 preliminary restructuring
agreement and the demands made by its subordinated creditors
represented by The Association of Eurotunnel's Secured
Bondholders (ARCO).

The company claimed that the majority of these demands were
satisfied by the substantial efforts jointly made by the company
and the Ad Hoc Committee.  The subordinated creditors, led by
Deutsche Bank, rejected this final attempt to reach a consensual
deal.

The Joint Board of Eurotunnel unanimously decided to cancel the
General Meetings of Shareholders of Eurotunnel PLC and
Eurotunnel SA, planned for July 27.

Absent a final agreement, the Group may default in January 2007
under a 1998 debt agreement.

                        *     *     *

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

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


FARRINGDON MORTGAGES: S&P Removes B2a Notes from Watch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch with
negative implications and affirmed its credit ratings on the
class M2a, B1a, and B2a notes in the Farringdon Mortgages No. 1
PLC, U.K. RMBS transaction.  Standard & Poor's has also affirmed
its ratings on the class A1a, A1a DAC, A2a, A2a DAC, and MERCS
of the same transaction.
  
The affirmation follows a full credit and cash flow analysis of
the most recent transaction information received by Standard &
Poor's including up-to-date loan-level data for the July period.
  
"From a performance point of view, this is the most pressure
that we have seen applied to a U.K. nonconforming RMBS
transaction," said Kate Livesey, a credit analyst in the
Structured Finance group.  Despite the drawings on the reserve,
the transaction has shown some signs of improvement this
quarter.  The revised analysis showed that there is still
sufficient credit enhancement and liquidity support available in
the transaction to support the ratings assigned at closing.

Farringdon drew on its reserve for the second time this quarter,
taking GBP96,684 from a reserve of GBP1,155,347.  Total draws
equate to GBP312,872, 22.81% of the peak of the reserve fund
balance reached since closing.  The draws are due to a
combination of the high level of total (33.24%) and 90+ day
delinquencies (18.72%), the high coupon (2.59%) paid to the
detachable A coupon (DAC) notes, the low prepayment levels for
the first year of the transaction, and excess spread needed to
cure losses.  Various accounting errors and additional
unexpected expenses highlighted in the April investor report
stressed the transaction further.
  
The reserve fund was sized at 0.98% of the initial balance at
closing (GBP1,225,000), and is currently some way from its
target level of 4.20% of the initial amount, (GBP5,250,000).
Despite losses of GBP422,771 this quarter, the draw on the
reserve was GBP96,684. Losses were GBP91,452 in the April
quarter with a reserve draw of GBP216,187.
  
This quarter, repossessions have reduced to 1.58% from 3.90%,
and 90+-day delinquencies to 18.72% from 19.90%.  Based on this
we would expect losses to be lower on the next interest payment
date.  Therefore, a further draw on the reserve is more likely
if collection rates (interest due vs. interest received) drop
again.

Farringdon 1 is experiencing high arrears. However, the presence
of a higher proportion of credit adverse borrowers than other
U.K. nonconforming transactions was sized for through the
initial levels of required credit enhancement.  

There were 53.8% of borrowers in the closing pool classified as
heavy adverse.  During the months of February and March 2006,
approximately 28% of the heavy adverse portfolio reverted to the
full pay rate.  This reduced the collection rates and increased
arrears over the period, as borrowers suffered payment shock.
S&P has seen improvements in the collection rates for the May
period with rates at 98.95%.  Furthermore, the collection rates
for the loans that fall into the 90+ day delinquency have
reached a high of 46% for the same period.

Prepayment speeds over the first year of the transaction have
been low mainly because the pool consisted of 100% newly-
originated discount loans at closing.  S&P has seen an increase
in prepayments this quarter as borrowers have left any
introductory rate arrangements.  Annualized CPR was reported at
41.12%, up from 27.92% last quarter. There is just 4.18% still
to revert to the full standard variable rate.  The last revert
date is in December 2007.
  
A higher prepayment rate will, in some ways, benefit the
transaction.  As the notes are currently amortizing
sequentially, the speed at which the class A notes are paid
increases.  This in turn lowers the amount due to be paid on the
DACs as the interest payment for these notes is based on the
outstanding balance of the class A notes.  Therefore, more money
is able to flow down the waterfall.
  
The originator, Rooftop Mortgages Ltd., have been making efforts
to improve their collection rates and revise their product
strategy, such as the withdrawal of its heavy adverse product
with an LTV ratio greater than 70% in March.  The servicer,
Crown Mortgage Management Ltd., has hired additional staff and
is focused on improving arrears and implementing loss-mitigation
tactics.  Following the accounting errors recognized in the
April report, Crown Mortgage Management has implemented
additional controls to prevent repetition of such errors.
  
S&P will be monitoring the performance of this transaction
closely over the coming months and will provide further updates.

The notes, issued in February 2005, are backed by a pool of
first-ranking residential mortgages secured on properties
located in England and Wales.  The mortgages were originated by
Rooftop, which is a wholly owned subsidiary of Rooftop Holdings
Ltd., which is a majority-owned subsidiary of Bear U.K.
Mortgages Ltd., the minority interest of which is held by Crown
Asset Management Ltd.  Bear U.K. Mortgages is wholly owned by
The Bear Stearns Cos.
  
                         Ratings List
                  Farringdon Mortgages No. 1 PLC
         GBP125 Million Mortgage-Backed Floating-Rate Notes
  
                 Class                 Rating
                 -----                 ------
                            To                    From
  
Ratings Affirmed and Removed From CreditWatch With Negative
Implications
  
                 M2a        A                     A/Watch Neg
                 B1a        BBB                   BBB/Watch Neg
                 B2a        BB                    BB/Watch Neg
  
Ratings Affirmed
  
                A1a        AAA
                A1a DAC    AAA
                A2a        AAA
                A2a DAC    AAA
                MERCS      AAA


FRASER BUILDING: Claims Filing Period Ends July 26
-------------------------------------------------
Creditors of Fraser Building Limited are required on or before
July 26 to send in their full names, addresses and descriptions,
full particulars of debts or claims, and the names and addresses
of Solicitors (if any) to appointed Joint Liquidator Daniel Paul
Hennessy at:

         Cresswall Associates Limited
         Maple View
         White Moss Business Park
         Skelmersdale
         Lancashire WN8 9TG
         United Kingdom  

The company can be reached at:

         Fraser Building Limited
         399 Preston Road
         Standish
         Wigan
         Lancashire WN6 0QB
         United Kingdom
         Tel: 01257 472 454


HMV GROUP: Appoints Simon Fox as Group Chief Executive
------------------------------------------------------
HMV Group PLC appointed Simon Fox as Group Chief Executive
effective Sept. 28, 2006.

Mr. Fox, 45, joins HMV Group from Kesa Electricals Plc, where he
was Chief Operating Officer, with responsibility for Comet in
the U.K., Kesa's subsidiaries in Continental Europe and e-
commerce developments, covering approximately 350 stores and
over GBP2 billion of sales.

Prior to his appointment as COO, he was Managing Director of
Comet, which he led through its demerger from Kingfisher, and
established the chain's leadership of the online electrical
market and the transition of the brand from a price-led to a
service-based proposition.  Comet employs around 10,000 people
in the U.K.

Mr. Fox joins the Group on Sept. 4 as Group Chief Executive-
designate, succeeding Alan Giles, who will retire as Chief
Executive and as a director of HMV Group at the Group's AGM on
Sept. 28.

"The Board of HMV Group is delighted to announce someone of
Simon's caliber as Chief Executive.  He has strong strategic
mind combined with a first rate track record in all aspects of
retailing," Carl Symon, Non-Executive Chairman of HMV Group
commented.

"We had an excellent list of talented candidates to consider,
and Simon's background in closely related and highly competitive
retail markets, his international experience and his expertise
in developing leading online brands stood out.  The Board is
highly confident that he will successfully lead the
transformation of HMV Group into a truly world class multi-
channel retailer," Mr. Symon added.

Simon Fox expressed, "I am a huge admirer of the HMV and
Waterstone's brands, which are renowned for their specialist
positioning, passionate employees and unrivalled range
authority, and it will be a privilege to lead the Group."

"We all know that these are highly competitive markets, but I
firmly believe that the stellar attributes which are in the DNA
of the brands and operating culture will enable the Group's
businesses to successfully differentiate themselves and to
compete effectively through a variety of complementary retail
channels," Mr. Fox concluded.

                            About HMV

Headquartered in Maindenhead, United Kingdom, HMV Group PLC --
http://www.hmvgroup.com/-- operates 580 stores in eight  
different countries under two powerful retail brands, HMV and
Waterstone's.  On March 31, 2005, the Group completed a
refinancing of its senior bank facilities, creating a more
efficient capital structure.  A five-year GBP260 million
revolving credit facility was arranged, replacing an existing
GBP150 million revolving credit facility, together with
outstanding term debt of GBP160 million which was repaid in
full.  Consequent to the refinancing, GBP2.7 million of
unamortized deferred financing fees were written-off in the
financial year to April 30, 2005, as a non-cash exceptional
interest charge.  At Oct. 29, 2005, the company's balance sheet
showed GBP49.7 million in stockholders' deficit.


HYLTON ROOFING: Taps Ian William Kings to Liquidate Assets
----------------------------------------------------------
Ian William Kings of Tenon Recovery was appointed Liquidator of
Hylton Roofing Limited after creditors passed a resolution to
wind up the company on April 25.

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

Hylton Roofing Limited can be reached at:

         7 Harvey Close
         Crowther
         Washington
         Tyne and Wear NE380AB
         United Kingdom
         Tel: 0191 417 8518
         Fax: 0191 419 3469


IFSA STRONGMAN: Bouwhuis Morrill Expresses Going Concern Doubt
--------------------------------------------------------------
Bouwhuis, Morrill & Company, LLC, in Layton, Utah, raised
substantial doubt about IFSA Strongman, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005.  The auditor pointed to the Company's negative cash flows
and losses from operations since inception.

The Company reported a US$403,958 net loss on US$137,873 of
total revenues for the year ended Dec. 31, 2005.

At Dec. 31, 2005, the Company's balance sheet showed
US$1,863,724 in total assets and US$377,471 in total current
liabilities, and a US$1,486,253 stockholders' equity.

The Company continues to develop a strategy of exploring all
options available so it can have sufficient funds to be able to
operate over the next twelve months.  As a part of this plan,
the Company is currently in negotiations with their target
industries' key players to develop additional business
opportunities.  In addition, it is exploring options in order to
raise additional operating capital through debt and equity
financing.

A full-text copy of the Company's 2005 Annual Report is
available for free at http://researcharchives.com/t/s?dd8

                      About IFSA Strongman

Headquartered in London, England, IFSA Strongman, Inc., fka
Synerteck Inc. -- http://www.ifsastrongman.com/-- is an  
integrated media, entertainment and athlete representation
company, principally engaged in the development, production and
marketing of television programs, live events and the licensing
and sale of branded consumer products.  The content of their
entertainment and consumer products is centered on the various
strongman competitions and events worldwide.



IFSA STRONGMAN: Posts US$362,094 Net Loss in First Quarter 2006
---------------------------------------------------------------
IFSA Strongman Inc. filed its first quarter financial statements
for the quarterly period ended March 31, 2006, with the
Securities and Exchange Commission.

The Company reported a US$362,094 net loss on US$32,243 of sale
for the quarterly period ended March 31, 2006.  This compares to
a US$441,723 net loss on US$317,847 of sales for the period
ended March 31, 2005.

At March 31, 2006, the Company's balance sheet showed
US$1,938,304 in total assets, US$703,320 in total current
liabilities, and US$1,234,983 in stockholders' equity.

A full-text copy of the Company's financial statements for the
quarterly period ended March 31, 2006, are available for free at
http://researcharchives.com/t/s?dda

                        Going Concern Doubt

Bouwhuis, Morrill & Company, LLC, in Layton, Utah, raised
substantial doubt about IFSA Strongman, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005.  The auditor pointed to the Company's negative cash flows
and losses from operations since inception.

The Company reported a US$403,958 net loss on US$137,873 of
total revenues for the year ended Dec. 31, 2005.

                      About IFSA Strongman

Headquartered in London, England, IFSA Strongman, Inc., fka
Synerteck Inc. -- http://www.ifsastrongman.com/-- is an  
integrated media, entertainment and athlete representation
company, principally engaged in the development, production and
marketing of television programs, live events and the licensing
and sale of branded consumer products.  The content of their
entertainment and consumer products is centered on the various
strongman competitions and events worldwide.


LAZER FOODS: Creditors Confirm Joint Liquidators' Appointment
-------------------------------------------------------------
Creditors of Lazer Foods Limited confirmed the appointment of
Nigel Price and Mark Elijah Thomas Bowen of Moore Stephens LLP
as Joint Liquidators on April 21.

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.

Lazer Foods Limited can be reached at:

         Linton House
         Catherine Street
         Birmingham B6 5RS
         United Kingdom
         Tel: 0121 328 7074
         Fax: 0121 327 1507


M & B BARK: Creditors Resolve to Voluntary Liquidation
------------------------------------------------------
Creditors of M & B Bark Supplies Limited resolved to voluntarily
liquidate the company's assets during an extraordinary general
meeting on April 27.

The company can be reached at:

         M & B Bark Supplies Limited
         The Old Quarry
         Roughcote Lane
         Caverswall
         Stoke-on-Trent
         Staffordshire ST119ET
         United Kingdom
         Tel: 01782 388 222
         Fax: 01782 388 222
         Web: http://www.playbark.com/


MIDDLESEX SEALED: Hires Joint Liquidators from Begbies Traynor
--------------------------------------------------------------
Richard Andrew Segal and Paul Michael Davis of Begbies Traynor
were appointed Joint Liquidators of Middlesex Sealed Units
Limited after creditors decided to wind up the company on
April 25.

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

Middlesex Sealed Units Limited can be reached at:

         5 Alpha Estate
         Clayton Road
         Hayes
         Middlesex UB3 1BB
         United Kingdom
         Tel: 020 8561 7292


NEWSOME PRINTERS: Taps Peter O'Hara to Liquidate Assets
-------------------------------------------------------
Peter O'Hara of O'Hara & Co was appointed Liquidator of Newsome
Printers Limited after creditors agreed to wind up the company
on April 27.

The company can be reached at:

         Newsome Printers Limited
         Adwalton Park House
         132 Wakefield Road
         Drighlington
         Bradford
         West Yorkshire BD111DR
         United Kingdom
         Tel: 0113 285 9990
         Fax: 0113 287 9763


NORTHERNSPARK LTD: Appoints J. N. Bleazard as Liquidator
--------------------------------------------------------
Northernspak Limited is liquidating its assets after creditors
proved the company could no longer continue its business due to
liabilities.

Subsequently, J. N. Bleazard of XL Business Solutions Limited
was appointed Liquidator.

The company can be reached at:

         1 George Street
         Hipperholme
         Halifax
         West Yorkshire HX3 8DY
         United Kingdom
         Tel: 01422 205 533
         Fax: 01422 204 454


NURSE X: Brings In Joint Liquidators from KPMG LLP
--------------------------------------------------
Mark Jeremy Orton and Allan Watson Graham of KPMG LLP were
appointed Joint Liquidators of Nurse X Change Limited after
creditors resolved to wind up the company on April 27.

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

Nurse X Change Limited can be reached at:

         Foley House
         123 Stourport Road
         Kidderminster
         Worcestershire DY117BW
         United Kingdom
         Tel: 01299 827 727


PROKEM LTD: Creditors Confirm Voluntary Liquidation
---------------------------------------------------
Creditors of Prokem Limited, on April 25, confirmed the
company's voluntary liquidation together with the appointment of
Allan Cooper and John Russell of The P&A Partnership as Joint
Liquidators.

The P&A Partnership (aka Poppleton and Appleby) --
http://www.thepandapartnership.com/-- acts for all clearing  
banks and a growing number of factors and asset lenders.  Its
clients include multinational PLCs, SMEs, financial
institutions, accountants, solicitors and business advisors.

Prokem Limited can be reached at:

         6a Moor Oaks Road
         Sheffield S10 1BX
         United Kingdom
         Tel: 0114 289 9281
         Fax: 0114 289 1477


RANK GROUP: Sells Off U.K. CD Replication Unit for GBP3 Million
---------------------------------------------------------------
The Rank Group PLC completed the sale of Deluxe Media Services'
U.K. CD replication business located in Blackburn, Lancashire,
to a subsidiary of Entertainment Distribution Company LLC for a
net cash consideration of around GBP3 million including cash in
the business at completion retained by Rank.

As part of the transaction, EDC acquired 100% of the issued
share capital of Deluxe Global Media Services Blackburn Limited,
the holding company for the business.  The cash consideration
received by Rank is subject to certain post-closing adjustments
for working capital.

The disposal of the business, together with the disposals of
Deluxe Media Services' U.K. DVD replication and U.K.
distribution businesses to Sony DADC that were announced on
June 30, complete Deluxe Media Services' exit from all of its
U.K. businesses.

Rank is in discussions with a number of third parties for the
disposal of the remaining assets of Deluxe Media Services.  
These assets comprise the continental European distribution
businesses in Benelux, France, Italy, Spain and Scandinavia and
the U.S. DVD replication and distribution businesses.

                    About Deluxe Media Services

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.

                            About EDC

EDC, a subsidiary of Glenayre Technologies, Inc., is the largest
provider of pre-recorded entertainment products, including CDs
and DVDs, for Universal Music Group, the world leader in music
sales. Headquartered in New York, EDC's operations include
manufacturing and distribution facilities throughout North
America and in Hanover, Germany.

                        About Rank Group

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.


RAPID PRINTERS: Claims Registration Ends July 26
------------------------------------------------
Creditors of Rapid Printers Limited have until July 26 to send
in their full names, addresses and descriptions, full
particulars of debts or claims, and the names and addresses of
Solicitors (if any) to appointed Joint Liquidators Richard A. B.
Saville and Peter A. Blair at:

         Begbies Traynor
         Regency House
         21 The Ropewalk
         Nottingham NG1 5DU
         United Kingdom

The company can be reached at:

         Rapid Printers Limited
         The Old Chapel
         Nottingham Road
         Alfreton
         Derbyshire DE557GL
         United Kingdom
         Tel: 01773 832 825
         Fax: 01773 520 694


RAY WARD LIMITED: Brings In Tenon Recovery as Administrators
------------------------------------------------------------
S.R. Thomas and A.J. Pear of Tenon Recovery were appointed joint
administrators of Ray Ward (Gunsmiths) Limited (Company Number
02858987) on June 22.

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

Ray Ward (Gunsmiths) Limited can be reached at:

         12A Cadogan Place
         London SW1X 9PU
         United Kingdom
         Tel: 020 7235 2550
         Fax: 020 7259 6359
         Web: http://www.raywardgunsmith.co.uk/


RDL LIMITED: Creditors' Meeting Slated for July 26
--------------------------------------------------
Creditors of RDL (U.K.) Limited (Company Number 05450876) will
meet at 11:00 a.m. on July 26 at:

         The Grand Hotel
         Sea Front
         Torquay, Devon TQ2 6NT
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on July 25 at:

         Mark Elijah Thomas Bowen and Nigel Price both
         Joint Administrators
         Moore Stephens Corporate Recovery
         Beaufort House
         94-96 Newhall Street
         Birmingham B3 1PB
         United Kingdom
         Tel: 0121 233 2557
         Fax: 0121 200 2558

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.


REFCO INC: Chapter 11 Trustee Settles with Rogers Raw
-----------------------------------------------------
An agreement was reached between Marc S. Kirschner, as
chapter 11 trustee for Refco Capital Markets Ltd., and
representatives for Rogers International Raw Materials Fund L.P.
and Rogers Raw Materials Fund L.P. that will bring the claims of
the two funds into the settlement agreement reported by Mr.
Kirschner on June 30.

On Oct. 24, 2005, one week after the Refco chapter 11 filings,
the Rogers Funds filed a complaint in the bankruptcy court
seeking a constructive trust over US$364 million in cash and
securities that the funds claimed were wrongfully diverted from
Refco LLC, a once active commodity broker registered with the
CFTC, to RCM, an unregulated Bermuda unit of Refco Inc.

The settlement, which involves RCM customers who hold securities
accounts and foreign-exchange accounts, will provide that the
Rogers Funds shall receive the same treatment as the claims of
securities customers at RCM.  Under the settlement, Mr.
Kirschner has said that securities customers would initially
recover 70% of the value of their claims and foreign-exchange
customers would initially recover 26% of the value of their
claims.  Future recoveries would depend on Mr. Kirschner's
success at pursuing claims against other Refco entities and
third parties.

Importantly for the Rogers funds, the settlement of the funds'
claims against RCM would be without prejudice to the right of
the funds to assert the full amount of their claims against any
other party, including Refco, LLC, which is in a chapter 7
liquidation proceeding.  The settlement remains subject to
bankruptcy court approval at a hearing scheduled for Aug. 16,
2006.

"The settlement with RCM is in the best interests of the Rogers
funds and their investors," said Walter T. Price, C.E.O. of
Beeland Management Company, L.L.C., the operator of the two
funds.  "First, it should keep RCM in a chapter 11 proceeding
under the expert guidance of Marc Kirschner, who we fully
support as chapter 11 trustee.  Second, it provides for a return
of at least 70%, possibly more, on our claims at RCM.  Finally,
it fully preserves our claims against Refco, LLC, which
wrongfully diverted the funds' cash and securities on the eve of
the Refco bankruptcy filing."

With respect to the Rogers funds' claims against Refco LLC,
Mr. Price stated that the Rogers funds are willing to sit down
with Albert Togut, the chapter 7 trustee for Refco LLC, to work
out a resolution of those claims, but are prepared to bring
their claims to trial if no deal can be reached.

On June 30, Mr. Kirschner announced that he had reached the
settlement agreement between RCM securities and foreign-exchange
customers.  By the terms of the settlement agreement, if the
Rogers funds did not agree to join the settlement within 14
days, Mr. Kirschner would have been required to promptly file
papers with the bankruptcy court asking that the court convert
the RCM chapter 11 case to a chapter 7 stockbroker liquidation
case.  Mr. Kirschner would still have been able to seek
bankruptcy court approval of the settlement agreement, though
there are doubts that such a settlement could have been approved
in a stockbroker liquidation proceeding.

                       About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a  
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


SAFE PALLET: Brings In Kroll as Joint Administrators
----------------------------------------------------
Philip Francis Duffy and Simon Wilson of Kroll Limited were
appointed joint administrators of Safe Pallet Distribution
Limited (Company Number 00582835) on June 21.

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 Salford, United Kingdom, Safe Pallet
Distribution Limited is engaged in freight transport and
storage.


SANDWELL NEW: Brings In Deloitte & Touche as Administrators
-----------------------------------------------------------
James Farrington and Andrew Philip Peters of Deloitte & Touche
LLP were appointed joint administrators of Sandwell New Horizons
Limited (Company Number 2019320) on June 21.

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 West Bromwich, United Kingdom, Sandwell New
Horizons Limited provides training courses.


STRAND OVERSEAS: Royal Bank Taps Receivers from KPMG
----------------------------------------------------
Royal Bank of Scotland PLC appointed Jane Bronwen Moriarty and
Blair Carnegie Nimmo of KPMG LLP joint administrative receivers
of Strand Overseas Holdings Limited (Company Number 03230254) on
July 11.

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

Strand Overseas Holdings Limited can be reached at:

         Westbrook Centre
         Milton Road
         Cambridge CB4 1YQ
         United Kingdom
         Tel: 01223 356 566


TRAIN 4 SECURITY: Hires Ward & Co. as Administrators
----------------------------------------------------
Timothy J. Heaslegrave and Barry J. Ward of Ward & Co. were
appointed joint administrators of Train 4 Security Limited
(Company Number 05247092) on June 22.

The administrators can be reached at:

         Ward & Co.
         Bank House 7
         Shaw Street
         Worcester
         Worcestershire WR1 3QQ
         United Kingdom
         Tel: 01905 25000  

Train 4 Security Limited can be reached at:

         Link House
         Vines Lane
         Droitwich
         Worcestershire WR9 8NA
         United Kingdom


WRG ACQUISITIONS: Sells Waste Disposal Business for GBP1.4 Bln
--------------------------------------------------------------
WRG Holdings and Fomento de Construcciones y Contratas, S.A
agreed to sell WRG Holdings' waste disposal business to FCC for
GBP1.4 billion.  The transaction is expected to close in the
fourth quarter of this year, subject to clearance from the
competition authorities.

This sale follows the demerger in May 2006 of WRG Holdings'
activities into distinct waste disposal and renewable energy
businesses.  WRG Holdings retains ownership of the renewable
energy business, which is the largest pure-play renewable power
generation company in the U.K.

Upon completion of its acquisition of the waste disposal
business, FCC will become a leading player in the waste
management sector in the U.K., significantly enhancing its
existing presence through its wholly owned subsidiary Focsa.  

In combination with its current presence in Spain, where FCC is
the leader in the waste management sector, and the recent
acquisition of ASA, a prominent waste management player in
Austria and a number of key Eastern European markets, the
acquisition of WRG will position FCC as one of the leading Pan-
European waste management operators.

"In 2003, we identified Waste Recycling Group as an opportunity
to participate in the development of the U.K. waste industry,
which was undergoing radical change due to stricter regulation
and the greater need to develop the infrastructure that will
provide the future alternatives to landfill assets.  Today, the
business is transformed into a leader in its sector with a
strategic and operational discipline.  I am delighted that we
have found new owners for the business who will invest further
in its exciting prospects," Guy Hands, Chief Executive of Terra
Firma disclosed.

"Since Terra Firma financed the purchase of WRG in August 2003,
the business has been transformed to become one of the U.K.'s
leading waste management and energy recovery companies.  It
handles approximately 13 million tons of household, commercial
and industrial waste each year and operates facilities for the
reception, recycling and disposal of waste throughout the U.K.,
including a network of waste transfer and recycling centers and
regional network of operating landfill sites.  It manages nearly
70 civic amenity sites on behalf of local authorities for use by
the general public," disclosed Jim Meredith, Chief Executive of
Waste Recycling Group.

Mr. Meredith added, "This has been achieved with the support of
Terra Firma, who have worked with us to deliver a number of
strategic and operational initiatives to meet our customers'
requirements.  Under Terra Firma's ownership, WRG has invested
GBP450 million in developing waste treatment facilities for
local authorities and trade customers, including the Allington
incinerator in Kent, and made charitable donations of
approximately GBP10 million on average per year under the
landfill tax credit scheme, as part of our belief that we have a
responsibility to the communities we serve."

"I am delighted that for the next stage in our development we
will have the best possible strategic partners in FCC, with more
than 100 years of experience and a leadership position in the
Spanish waste management business, who have committed to
maintain the existing employment rights of WRG's staff," Mr.
Meredith concluded.

"We are delighted with the acquisition of WRG.  In our new
Strategic Plan approved by our Board in April 2005, and
supported by FCC's major shareholder, Esther Koplowitz, we
identified the U.K. waste management sector as one of our key
priorities for growth.  We have been present in this market for
more than 15 years through our subsidiary Focsa.  Through the
acquisition of WRG, and with the support of its outstanding   
management team, we will become one of the leading U.K. waste
management operators.  Our ambition is to become a European
leader in the waste management sector.  With the acquisition of
WRG, added to our leading presence in Spain, Portugal, and
Central and Eastern Europe, we believe we are achieving this
goal," Chief Executive of FCC Rafael Montes expressed.

Merrill Lynch and Deutsche Bank acted as financial advisors to
Terra Firma.

Morgan Stanley acted as financial advisors to FCC.

                  Allocation of Sale Proceeds

In connection with the consummation of the sale, WRG
Acquisitions PLC, as issuer of GBP300 million principal amount
of Second Lien Floating Rate Notes due 2011 and WRG Finance PLC,
as issuer of GBP200 million principal amount of 9% Senior Notes
due 2014 intend to use a portion of the proceeds from the sale
to:

   -- prepay the senior bank debt;
   -- redeem the Floating Rate Notes; and
   -- redeem the Senior Notes.

In connection with the senior bank debt, WRG Acquisitions
intends to prepay and discharge its obligations and the
obligations of its subsidiaries under its senior bank facilities
and associated hedging arrangements and the guarantee and
security arrangements entered into in connection therewith at
the time of closing.

For the Floating Rates Notes, WRG Acquisitions intends to
discharge its obligations and the obligations of its
subsidiaries under the Floating Rate Notes and the indenture at
the time of the closing of the sale by depositing funds in trust
with The Bank of New York as trustee, sufficient to redeem the
Floating Rate Notes in full in accordance with their terms on
Dec. 15, 2006.  

At closing the Trustee will be given an irrevocable instruction
to send the redemption notice as required by the indenture.  In
addition, at closing of the sale the guarantee and security
arrangements entered into in connection with the Floating Rate
Notes are to be released.

And for the Senior Notes, WRG Finance also intends to discharge
its obligations and the obligations of its subsidiaries under
the Senior Notes and the indenture at the time of the closing of
the sale by depositing funds in trust with the Trustee
sufficient to redeem the Senior Notes in full in accordance with
their terms on a date that could be as soon as 30 days following
the closing date for the sale.  

At closing the Trustee will be given an irrevocable instruction
to send the redemption notice as required by the indenture.  In
addition, at closing of the sale, the guarantee and security
arrangements entered into in connection with the Senior Notes
are to be released.

                   About Waste Recycling Group

Headquartered in Northampton, Waste Recycling Group --
http://www.wrg.co.uk/-- is one of the leading waste management  
services companies in the U.K.  The company receives 15 million
tons of household, commercial and industrial waste to recycle
and dispose each year. WRG also generates more renewable energy
from waste, thereby contributing significantly to the
government's efforts to reduce reliance of fossil fuels.


WRG FINANCE: Moody's Places Low -B Ratings Under Review
-------------------------------------------------------
Moody's Investors Service placed the ratings of WRG Finance Plc
and its subsidiary WRG Acquisitions Plc on review with direction
uncertain following WRG Holdings' announcement that it has
agreed to sell its waste disposal business other than its waste-
to-energy business to Fomento de Construcciones y Contratas,
S.A, for GBP1.4 billion.

On completion of the sale, which is subject to receipt of
clearance from the competition authorities, WRG Finance and WRG
Acquisitions intend to prepay all their outstanding indebtedness
including the GBP200,000,000 9% senior notes due 2014 and the
GBP300,000,000 second lien floating rate notes due 2011.

Moody's understands that it is a condition precedent of the sale
that the guarantees and liens held by the second-lien note-
holders and the guarantees held by the senior note-holders are
released.  Consequently it is the company's intention to
discharge its obligations under its existing notes upon
completion of the sale by depositing funds in trust with the
trustee in order to redeem the notes in accordance with their
terms when possible.

On completion of the sale, which is expected to close in Q4
2006, Moody's expects to withdraw these ratings:

   -- B1 corporate family rating at WRG Finance plc;

   -- B3 rating of the GBP 200 million senior notes due 2014
issued via WRG Finance plc; and  

   -- B1 rating of the GBP 300 million second lien floating rate
notes due 2011 issued via WRG Acquisition Plc.

Headquartered in Northampton, U.K., Waste Recycling Group is the
leading waste disposal operator in the U.K. with approximately
35% of the consented void capacity.  For the twelve-month period
ending Dec. 31, 2005, the company generated net operating
revenues of GBP542.8 million.


WRG FINANCE: S&P Assigns BB- Long-Term Corp. Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit ratings on U.K.-based waste management company
WRG Finance PLC and related entity WRG Acquisitions PLC, holding
companies in the Waste Recycling Group, on CreditWatch with
positive implications.  

At the same time, the 'B' senior unsecured debt rating on WRG
Finance and the 'B+' senior secured debt rating on WRG
Acquisitions were affirmed. The recovery rating of '3' on WRG
Acquisitions' senior secured debt was also affirmed.

The CreditWatch placement follows WRG's announcement that it
intends to sell its waste disposal business for GBP1.4 billion
and use a portion of the proceeds to redeem WRG Acquisitions'
GBP300 million senior secured second-lien floating-rate notes
and WRG Finance's GBP200 million senior unsecured notes, as well
as to prepay WRG Acquisitions' senior bank debt.

"The full repayment of the group's debt obligations will result
in a significantly less risky financial profile," said Standard
& Poor's credit analyst William Ferara.

WRG is currently highly leveraged, with cash pay debt to EBITDA
of about 4.5x for the 12 months ended March 31.  EBITDA cash
interest coverage is also weak for the ratings, at about 2.8x in
2005.
     
WRG's sole business after the sale will be its waste-to-energy
unit, which contains electricity generation operations powered
by the gas collected from landfill sites.  This green energy
source is largely sold under long-term fixed price contracts,
which provides WRG with a relatively stable source of income.
The group also benefits from regulatory requirements for a
proportion of U.K. electricity supplies to be generated from
green sources.  Gas production from the landfills has, however,
been lower than expected, which has affected operating cash
flows.

Standard & Poor's will resolve the CreditWatch status once the
transaction has been completed. WRG expects the sale to take
place by the end of November 2006.


* Euler Sees Significant Increase In Global Business Failures
-------------------------------------------------------------
After a substantial increase in 2005 and a decline in 2006, the
number of business insolvencies in the U.S. is predicted to
climb once again in 2007, according to global trade credit
insurer Euler Hermes.  Worldwide, the Index predicts that
business failures will increase by 3% in 2007 on the heels of a
global economic slowdown.  

The Global Business Failure Index -- created by Euler Hermes to
compare business failures by country, going beyond the national
definitions and taking into account the size of the respective
global economies -- predicts an 8% increase in US corporate
insolvencies for 2007.  The Index has fluctuated quite a bit in
the past two years, showing a 14% increase in 2005 and a five-
percent decrease for 2006.  The 2005 hike was caused by an
increased number of businesses insolvencies in advance of the
new bankruptcy laws, which took effect on November 17, 2005.  
However, the revamped U.S. bankruptcy code has caused a notable
decrease in the number of corporate insolvencies for 2006, with
the Index predicting a slight decrease in the number of
businesses that will declare bankruptcy.

Dan North, Euler Hermes ACI Chief Economist, offered his view on
the macroeconomic factors that can affect business failures:
"The U.S. economy turned in a very strong performance in the
first quarter as real Gross Domestic Product grew at a 5.6%
annualized rate.  However, GDP growth is expected to slow during
the rest of the year as a result of three factors.

   -- First, the housing market, which has supported the U.S.
      economy over the past few years, is cooling off, providing
      less equity to finance consumer activity and reducing
      demand for household goods and services;

   -- Second, high energy prices, particularly for gasoline, are
      putting a drag on consumer activity;  

   -- Third, and perhaps most importantly, the Federal Reserve
      may have tightened monetary policy too far as reflected in
      the inverted yield curve, a strong indicator of a future
      slowdown.  

The effects of Fed tightening take a year or more to be felt,
meaning that the U.S. economy will be experiencing a drag from
rising interest rates for at least another 12 months.  These
three pressures on the US economy will certainly put pressure on
business failures throughout the next year."

Euler Hermes Global Business Failure Index forecasts these
country-by-county changes in the number of business failures:

     Country        2007      2006
     -------        ----      ----
     U.S.A.           8%       -5%
     France           0%        0%
     Spain            4%       10%
     Denmark          0%       -8%
     Taiwan           4%        7%
     Luxembourg       0%       -1%
     Greece           4%        5%
     Germany          0%       -5%
     U.K.               3%        8%
     China            0%        0%
     Portugal         3%        5%
     Hungary         -1%       -1%
     Hong Kong       -1%      -11%
     Italy            3%        3%
     Netherlands     -1%       -2%
     Belgium          2%        0%
     Canada          -3%       -3%
     Ireland         -3%       -3%
     Norway           1%      -10%
     Austria         -3%       -2%
     Japan            1%        2%
     Finland         -3%       -6%
     Czech Republic   1%       -4%
     South Korea     -4%      -10%
     Switzerland      0%        0%
     Singapore       -7%       -6%
     Slovakia         0%        8%
     Sweden          -7%      -10%
     Poland           0%       -1%
     Brazil          -8%      -15%

     Western Europe   1%        0%

     Global Index of
     insolvencies     3%       -1%

In the face of the changing domestic and global economic
climate, recognizing and managing future risks becomes a
priority for the nation's business leaders.  The predicted rise
in business failures highlights the important role that trade
credit insurance can play within the business environment, said
Euler Hermes ACI Vice President of Marketing Keith Sherman.  "A
Euler Hermes ACI credit insurance program provides a valuable
extension to a company's credit management practices - a second
pair of objective eyes when approving buyers, as well as an
early warning system should things begin to decline so that
exposure can be effectively managed," he said.  "And,
ultimately, should an unexpected loss occur, the trade credit
insurance policy provides indemnification, thus protecting the
policyholder's revenue and bottom line."  

Euler Hermes ACI utilizes a proprietary database that monitors
the credit worthiness of more than 40 million companies
worldwide; this provides advance warning for policyholders and
allows losses to be minimized in the event of a large corporate
insolvency.

Further analysis of the Global Business Failure Index is
available in the Euler Hermes Insolvency Outlook publication,
which is available upon request.

Headquartered in Owings Mills, Maryland, Euler Hermes ACI --
http://www.eulerhermes.com/usa-- is the U.S. subsidiary of the  
Euler Hermes Group and the oldest and largest provider of trade
credit insurance in North America.  

Euler Hermes is the worldwide leader in credit insurance and one
of the leaders in bonding and guarantees.  With 5,400 employees
in 43 countries, Euler Hermes offers a complete range of
services for the management of customer receivables.  The group
posted a EUR2 billion turnover in 2005.

Euler Hermes, a subsidiary of AGF and a member of Allianz, is
listed on Euronext Paris.  Standard & Poor's rates the group and
its principal credit insurance subsidiaries AA-.

                           *********

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-
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel Laureno, Julybien Atadero, Carmel Zamesa
Paderog, and Joy Agravante, Editors.

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

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