TCREUR_Public/060802.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, August 2, 2006, Vol. 7, No. 152   

                            Headlines


A U S T R I A

BAR-COM: Vienna Court Orders Closing of Business
E-VITA: Creditors' Meeting by Compensation Slated for Aug. 3
DANIEL UND PARTNER: Creditors' Meeting Slated for August 10
LADLER: Creditors' Meeting Slated for September 11
LEDERER: Claims Registration Period Ends August 8


B U L G A R I A

* S&P Assigns BB- Long-Term Credit Rating to Karlovo City


F R A N C E

EUROTUNNEL GROUP: Court to Rule on Creditor Protection Today
SNC SUMMERSUN: U.S. Court to Rule on Ch. 15 Petition Tomorrow


G E R M A N Y

BEHRENS HAUSTECHNIK: Claims Registration Ends August 15
BDN BIEGETECHNIK: Claims Registration Ends August 14
DEUTSCHES ROTES: Creditors' Meeting Slated for August 16
GEBR. WIESEMANN: Claims Registration Ends August 16
KM-SERVICE: Claims Registration Ends August 20

KUENZLER GRUNDSTUECKS: Claims Registration Ends August 15
STAHL- UND METALLBAU: Claims Registration Ends August 21
TRI IMMOBILIENVERMITTLUNGS: Claims Registration Ends August 16
VOLKSWAGEN AG: Faurecia CEO Faces Possible Jail Term on Bribes
VOLKSWAGEN AG: Files Lawsuit on Kickback Scandal
VOX GROUP: Claims Registration Ends August 18

WIKA GESELLSCHAFT: Claims Registration Ends August 14


G R E E C E

EMPORIKI BANK: Credit Agricole Hikes Bid to EUR25 per Share


I R E L A N D

SCOTTISH RE: Hires Goldman Sachs & Bear Stearns for Advice
SCOTTISH RE: Moody's Downgrades Sr. Unsecured Debt Rating to Ba2


I T A L Y

BANCA ITALEASE: Fitch Keeps Individual Rating at C
FINPART SPA: Court Rejects Popolare di Intra's EUR50-Mln Offer
POPOLARE DI INTRA: Milan Court Turns Down Offer for Finpart SpA
TISCALI SPA: Posts EUR62.9 Million EBITDA for First Half 2006


K A Z A K H S T A N

AKMAI: Creditors Must File Claims by Aug. 29
AQVA SPESTEH: Creditors Must File Claims by Aug. 29
BIZNES O-XXI: Creditors Must File Claims by Aug. 29
MTZ TRANSMASH: Proof of Claim Deadline Slated for Aug. 29
ROSINKA: Proof of Claim Deadline Slated for Aug. 25

ROST: Claims Registration Ends Aug. 29
STROIKONSTRUKSIA: Claims Registration Ends Aug. 29
TANDAI: Creditors' Claims Due Aug. 25
TEHNOSERVIS-TARAZ: Creditors' Claims Due Aug. 25
USB COM: Creditors' Claims Due Aug. 25


K Y R G Y Z S T A N

VESTA-TOKMOK: Public Auction Scheduled for Aug. 17


L I T H U A N I A

SEB VILNIAUS: Fitch Maintains Individual Rating at C


N E T H E R L A N D S

CARLSON WAGONLIT: S&P Assigns B+ Long-Term Corp. Credit Rating
MITTAL STEEL: Moody's Confirm Ba1 Senior Unsecured Ratings


R U S S I A

BRICKWORKS: Court Names D. Serdyuk as Insolvency Manager
COMPANY-BUILDER: Court Names A. Boykov as Insolvency Manager
DANILOVSKIY FACTORY: Court Starts Bankruptcy Supervision
DMITRIEVSKIY BUTTER-CHEESE: A. Antyukhov to Manage Assets
ERMISH-AGRO-PROM: Court Names S. Mordvinov as Insolvency Manager

KARLAMANSKIY SUGAR: Court Names G. Yaparov to Manage Assets
NOVOUSITOVSKIY: Court Names O. Fokina as Insolvency Manager
PROKOPYEVSKIY EXPERIMENTAL: Court Starts Bankruptcy Supervision
ROSNEFT OIL: Debt Repayments Prompt S&P to Lift Ratings to BB
STARO-STEKLYANNYJ SPIRIT: Court Starts Bankruptcy Supervision

STERLITAMAKSKIY FACTORY: External Management Procedure Starts
TARUTINO: Court Names N. Surtaev as Insolvency Manager
TROYA: Bankruptcy Hearing Slated for October 11
VOLGA-MARTIN-DIESEL: S. Pavlish to Manage Insolvency Assets
VOLOGDA-WOOD-STROY: Court Names A. Ershov as Insolvency Manager

YUKOS OIL: Moscow Arbitration Court Rules on Bankruptcy
YUKOS OIL: Court to Hear Rosneft's US$226.1-Bln Claim on Aug. 10
YUKOS OIL: Disputes FSA Ruling on Rosneft IPO at Court of Appeal


U K R A I N E

CHEREPIVSKE: Sumi Court Starts Bankruptcy Supervision
DEMPURG-A: Court Names Mikola Usenko as Insolvency Manager
DISKUS: Court Names Vadim Osipenko as Insolvency Manager
KRUPSKE: Court Names Igor Ponomaryov as Liquidator
PARTEKS: Court Names Svitlana Lunkova as Insolvency Manager

PODILLYA: Court Names Leonid Glivinskij as Liquidator
PRILUKI' ETHER-OIL: Court Starts Bankruptcy Supervision
SINTEKBUD': Court Names Vadim Bolejko as Liquidator
TAURUS AGROPROM: Court Names O. Sherban as Liquidator
TRANSAUTO-PLUS: Court Names Vadim Bolejko as Insolvency Manager

UNITED FINANCIAL: Kyiv Court Starts Bankruptcy Supervision
ZHVANETSKE REPAIR-TRANSPORT: Court Starts Bankruptcy Supervision

* Standard & Poor's Assigns B+ Issuer Rating to Crimea Republic


U N I T E D   K I N G D O M

ACTIVE FASCIA: Brings In Liquidator from HKM LLP
AEOLUS CDO: Fitch Rates EUR9.5 Million Class E Notes at B
ANLABY JEWELLERS: Joint Liquidators Take Over Operations
BEAUTY CONCEPTS: Creditors Pass Winding Up Resolution
BELMONT ENGINEERING: Brings In Gerald Edelman as Administrators

BILL HARMAN: Creditors' Meeting Slated for August 9
BODY SHOP: Hires Vantis as Joint Administrators
BUILDLINK UK: Begins Liquidation Procedure
CHAMART INT'L: Names Donald Bailey Liquidator
DIRECT CONSUMABLES: Taps Paul J. Fleming to Liquidate Assets

DJB PASSPORTS: Creditors Opt to Voluntarily Liquidation
EUROTUNNEL GROUP: Court to Rule on Creditor Protection Today
FISHERS LIMITED: Appoints McTear Williams as Administrators
FOXHEATH PROPERTIES: Confirms Joint Liquidators' Appointment
GUNNERSWIN LTD: Hires Liquidator from Haines Watts BRI

HERBALIFE INT'L: S&P Rates US$300-Mln Credit Facility at BB+
HST FINANCIAL: Appoints PwC as Joint Administrators
INCENTIVE & CONFERENCE: Creditors' Meeting Slated for Aug. 4
INCO LTD: Teck Cominco Raises Cash & Stock Bid
INTERSPACE LIMITED: Names Surjit Singla as Administrator

INVENSYS PLC: 93.88% of Shareholders Tender 6.5% Notes Due 2010
M.C.S. SUSPENDED: Appoints Joint Liquidators to Wind Up Business
MAINTENANCE ONE: Names Administrators from Begbies Traynor
MILLFIELD ATLAS: Hires Joint Administrators from PwC
MONKEY-BOY LEISURE: Creditors Resolve to Voluntary Liquidation

NORTHERN FOODS: Sells NFT Distribution for GBP51.2 Million
OFFICIAL MAP: A. Clifton Leads Liquidation Procedure
SCOTTISH RE: Hires Goldman Sachs & Bear Stearns for Advice
SCOTTISH RE: Moody's Downgrades Sr. Unsecured Debt Rating to Ba2
SPICE ROUTE: Brings In Administrators from Hurst Morrison

VALENTIA TELECOMMUNICATIONS: S&P Cuts Corp. Credit Rating to BB-

                            *********

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


BAR-COM: Vienna Court Orders Closing of Business
------------------------------------------------
The Trade Court of Vienna entered an order on June 16 closing
the business of Trade LLC Bar-Com (FN 218253k).  Court-appointed
property manager Robert Gschwandtner determined that the
continuing operation of the business would reduce the value of
the estate.

The property manager and his representative can be reached at:

         Dr. Robert Gschwandtner
         c/o Dr. Peter Pullez
         Tuchlauben 8
         1010 Vienna, Austria
         Tel: 513 29 79
         E-mail: pullezgschwandtner@aon.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 2 (Bankr. Case No. 2 S 96/06i).  Peter Pullez represents
Dr. Gschwandtner in the bankruptcy proceedings.


E-VITA: Creditors' Meeting by Compensation Slated for Aug. 3
------------------------------------------------------------
Creditors owed money by LLC E-Vita Spa (FN 267816y) are
encouraged to attend the creditors' meeting by compensation
payment at 9:30 a.m. on Aug. 3.

The creditors' meeting will be held at:

         The Land Court of Feldkirch
         Hall 45
         1st Floor
         Feldkirch, Austria

Headquartered in Bludenz, Austria, the Debtor began compensation
proceedings on June 16 (Case 13 Sa 2/06h).  Patrick Piccolruaz
serves as the court-appointed compensation manager of the
Debtor.  Stefan Mueller represents Mag. Piccolruaz in the
compensation proceedings.

The compensation manager and his representative can be reached
at:

         Mag. Patrick Piccolruaz
         c/o Dr. Stefan Mueller
         Bahnhofstrasse 8
         6700 Bludenz, Austria
         Tel: 05552/62286-0
         Fax: 05552/62286-18
         E-mail: rae@piccol.vol.at


DANIEL UND PARTNER: Creditors' Meeting Slated for August 10
-----------------------------------------------------------
Creditors owed money by LLC Daniel und Partner (FN 149280f) are
encouraged to attend the creditors' meeting at 9:15 a.m. on
Aug. 10 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1703
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 16 (Bankr. Case 5 S 80/06h).  Wolfgang Leitner serves as
the court-appointed property manager of the bankrupt estate.  

The property manager and his representative can be reached at:

         Dr. Wolfgang Leitner
         c/o Dr. Helmut Platzgummer
         Kohlmarket 14
         1010 Vienna, Austria
         Tel: 533 19 39
         Fax: 533 19 39 39
         E-mail: kanzlei@lp-law.at


LADLER: Creditors' Meeting Slated for September 11
--------------------------------------------------
Creditors owed money by LLC Ladler (FN 42978d) are encouraged to
attend the creditors' meeting at 10:30 a.m. on Sept. 11 to
consider the adoption of the rule by revision and final decision
and meeting on compulsory payment of the compensation.

The creditors' meeting will be held at:

         The Land Court of Graz
         Room 222
         2nd Floor
         Graz, Austria

Creditors owed money by the Debtor will receive a 20% recovery
on account of their claim within one year after project
adoption.

Headquartered in Graz, Austria, the Debtor declared bankruptcy
on March 1 (Bankr. Case 26 S 19/06y).  Wolfgang Nopp serves as
the court-appointed property manager of the bankrupt estate.   
Roland Gsellmann represents the Debtor in the bankruptcy
proceedings.

The property manager can be reached at:

         Dr. Wolfgang Nopp
         Kaiserfeldgasse 1
         8010 Graz
         Tel: 0316/821460
         Fax: 0316/821460-24
         E-mail: konoko@gmx.at  

The Debtor's representative can be reached at:

         Dr. Roland Gsellmann
         Farber Place 1
         8010 Graz, Austria


LEDERER: Claims Registration Period Ends August 8
-------------------------------------------------
Creditors owed money by Construction LLC Lederer (FN 52237w)
have until Aug. 8 to file written proofs of claims to court-
appointed property manager Rudolf Vogrin at:

         Mag. Rudolf Vogrin
         c/o Dr. Andreas Wippel
         Triester Road 15
         2620 Neunkirchen, Austria
         Tel: 02635/62860
         Fax: 02635/6286114
         E-mail: kanzlei.wippel@aon.at    

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 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 Land Court of Viennese New City
         Room 15
         Viennese New City, Austria

Headquartered in Enzenreith, Austria the Debtor declared
bankruptcy on June 16 (Bankr. Case No. 11 S 58/06z).   


===============
B U L G A R I A
===============


* S&P Assigns BB- Long-Term Credit Rating to Karlovo City
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
issuer credit rating to the City of Karlovo in Bulgaria.  The
outlook is stable.  

In addition to Karlovo, Standard & Poor's rates four other
municipalities in Bulgaria: the Bulgarian capital City of Sofia,
and the Cities of Plovdiv, Stara Zagora, and Varna.

"The rating on Karlovo reflects its weak operating performance,
low revenue predictability due to ongoing intergovernmental
reforms, limited financial flexibility in the face of operating
expenditure pressures, and infrastructure investment needs,"
said Standard & Poor's credit analyst Marcin Gdula.

"The rating is supported by the city's low debt level and
limited contingent liabilities."

The Bulgarian Municipal Debt Act places restrictive requirements
on Bulgarian local and regional governments incurring debt.
Karlovo only has a short debt history.  The city's debt-to-
operating revenues ratio was 4.6% at the end of 2005, and is not
expected to increase beyond 10% over the next 2-3 years.  There
are no significant contingent liabilities, as there are only a
small number of municipal companies, which are profitable.
     
Standard & Poor's expects that Karlovo will achieve, on average,
a balanced operating budget or even small operating deficits in
the next few years, and that its balances after capital
expenditures will not exceed 5% of total revenues.  Standard &
Poor's also expects that the city's debt will remain low at
below 15% of operating revenues.

"If the nationwide economic upturn, on the back of EU pre-
accession funds inflows, helps to increase the city's revenues
and accelerate infrastructure upgrading, leading to the city's
improved operating and overall financial performance, this could
have a positive effect on the rating," said Mr. Gdula.

"Conversely, if the city were to significantly raise its debt
level, or its financial performance was to deteriorate further
over the next 2-3 years, then the stable outlook could be
revised to negative, or the rating could be lowered."


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


EUROTUNNEL GROUP: Court to Rule on Creditor Protection Today
------------------------------------------------------------
The Commercial Court of Paris will decide today whether to grant
Eurotunnel Group creditor protection pursuant to the French law
"procedure de sauvegarde", after renewed talks with bondholders
to restructure a GBP6.2 billion debt failed.  The group filed
the petition on July 13.

"We are working, and we are advancing," Nina Mitz, a spokeswoman
for The Association of Eurotunnel's Secured Bondholders (ARCO)
told Reuters.  "There have only been two meetings, and we are
ready to continue our discussions under the auspices of the
court," Ms. Mitz added.

ARCO represents 68% of Eurotunnel's outstanding GBP1.9 billion
bonds and notes.

As previously reported in TCR-Europe Eurotunnel pointed out that
the restructuring of its debt has been a problem between
creditors ever since it proposed a management-backed rescue plan
with Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays
PLC.

The current negotiations led by the company have now given rise
to an implicit consensus that:

   -- the sustainable level of debt is approximately GBP2.9
      billion; and

   -- the current shareholders must benefit from accretion
      measures and retain a significant proportion of the
      equity.

                  Restructuring Proposals

Eurotunnel had turned down, on June 27, a 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, aimed 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 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, which represents the group's senior
creditors.  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.

                        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.

                        Company Crisis

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 faced
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.


SNC SUMMERSUN: U.S. Court to Rule on Ch. 15 Petition Tomorrow
-------------------------------------------------------------
The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for
the Southern District of New York will decide at 12:00 noon
tomorrow, Aug. 3, whether to grant S.N.C. Summersun et cie and
its debtor-affiliates relief under chapter 15 of the U.S.
Bankruptcy Code.

Gilles Gauthier, in his capacity as foreign representative for
the Debtors, filed the chapter 15 petition in the Manhattan
court on May 4.

Chapter 15, which became effective Oct. 17, 2005, broadens the
mechanism through which representatives of non-US proceedings
might obtain relief, including injunctive relief, in the United
States, expands the powers of U.S. Bankruptcy Courts, and
enhances the rights of both U.S. and non-U.S. creditors.

                     Fraud Investigation

In his application, Mr. Gauthier said he has conducted extensive
investigations relating to the interests and claims against the
Debtors, and learned of a fraudulent scheme perpetrated by
Maurice Cohen, the Debtors' former de facto manager, relating to
Euro-American Lodging Corp.  Delaware-based EALC reportedly owns
a certain real property located at 135 West 52nd Street in New
York in which the Flatotel is operated.

The Foreign Debtors, EALC and Societe de Banque Occidentale, a
subsidiary of Credit Lyonnais, which provided financing for the
development of the New York Property into a hotel, contemplated
and understood that:

   -- the Debtors were to own a 65% equity interest in EALC and
      the New York property; and

   -- SDBO's subsidiary was to own a 35% equity interest in EALC
      and the New York property.

However, Mr. Gauthier revealed that Mr. Cohen diverted the
interests in EALC to shell companies in order to realize the
economic benefit of the New York property.  S.A. Consortium de
Realisation - CDR Creances, as successor-in-interest to SDBO,
filed a EUR63.6 million claim against the Debtors under the loan
agreement.

In view of Mr. Cohen's fraudulent conduct, Mr. Gauthier filed a
motion with the Commercial Court of Antibes seeking to extend
the Debtor's judicial liquidation to EALC on the ground that
EALC is a fictitious company.

The Antibes Court approved Mr. Gauthier's request on July 7,
2006.  The Antibes Court found that:

   -- it was competent to extend the foreign proceedings to EALC
      under Article 14 of the French Civil Code; and

   -- Mr. Cohen used EALC as part of a fraudulent scheme to
      acquire and reap the benefits of the New York property
      without using any of his own funds.

Based on these findings, the Antibes Court extended the foreign
proceedings to EALC and consolidated EALC and the New York
property with the Foreign Debtors and their assets for joint
liquidation.

                     EALC Creditors Object

Macson Express USA Inc. and Macson USA LLC, as EALC's creditors
and as the lessee, manager and franchise operator of Flatotel,
objects to Mr. Gauthier's chapter 15 petition.

Lauren J. Wachtler, Esq., of Montclare & Wachtler, counsel to
the creditors, discloses that the petition is seeking more than
to seize the US assets owned by the Summersun entities.  The
petition, Ms. Wachtler says, sought to recognize in advance any
future order of the Antibes Court that authorizes Mr. Gauthier
to sell a major real estate asset owned by EALC even though:

  (a) EALC is a Delaware corporation judicially recognized as an
      independent corporate entity under New York law;

  (b) EALC's unsecured and secured creditors like Macson, and
      Atlantic Bank were not even named or served as creditors
      in the Antibes proceedings;

  (c) only the Summersun entities, not EALC, are named as
      debtors in the Antibes liquidation proceeding; and

  (d) there is ongoing litigation in the New York state courts
      addressing important state law issues of lien priorities
      and foreclosure relative to EALC's ownership of the
      Flatotel building.

Once the U.S. Bankruptcy Court enters an order granting
recognition of the foreign proceedings, Mr. Gauthier said he
intends to seek the orderly sale of the New York property under
Section 363 of the Bankruptcy Code.

Objections to the relief must be filed with the court before
4:30 p.m. today, Aug. 2, with a courtesy copy to the Chambers of
the Hon. Stuart M. Bernstein, and served upon:

         Kaye Scholer LLP
         Attn: Madlyn Gleich Primoff, Esq.
         425 Park Avenue
         New York, NY 10022

Headquartered in Valbonne, France, S.N.C. Summersun et cie is a
partnership company formed under French commercial law for the
purpose of purchasing, managing and operating real estate.  It
owns two 32-floor towers located at 14 Rue de Theatre in Paris,
France.  S.A. and S.A.R.L. are partners in S.N.C.

Madlyn Gleich Primoff, Esq., at Kaye Scholer LLP, represents Mr.
Gauthier in the chapter 15 case.  As of May 4, 2006, the Debtors
estimated more than US$100 million in assets and liabilities.


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


BEHRENS HAUSTECHNIK: Claims Registration Ends August 15
-------------------------------------------------------
Creditors of Behrens Haustechnik GmbH have until Aug. 15 to
register their claims with court-appointed provisional
administrator Tammo Seemann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Wilhelmshaven
         Hall 109
         Old Building
         Market Route 15
         26382 Wilhelmshaven, 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 Wilhelmshaven opened bankruptcy
proceedings against Behrens Haustechnik GmbH on July 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Behrens Haustechnik GmbH
         Attn: Joachim Behrens, Manager
         Westersteder Road 26
         26345 Bockhorn, Germany

The administrator can be contacted at:

         Dr. Tammo Seemann
         Haareneschstrasse 59
         26121 Oldenburg, Germany
         Tel: 0441/20529-0
         Fax: 0441/20529-29
         E-mail: seemanntammo@yahoo.de


BDN BIEGETECHNIK: Claims Registration Ends August 14
----------------------------------------------------
Creditors of BDN Biegetechnik GmbH have until Aug. 14 to
register their claims with court-appointed provisional
administrator Annette Dietter.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Aug. 18, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wetzlar
         Meeting Room 201
         Building B
         II. Stick
         Wetherstr. 1
         35578 Wetzlar, Germany
      
The Court will also verify the claims set out in the
administrator's report at 9:15 a.m. on Sept. 20 at the same
venue.

The District Court of Wetzlar opened bankruptcy proceedings
against BDN Biegetechnik GmbH on July 5.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         BDN Biegetechnik GmbH
         Theodor-von Schacht-Route 2
         35578 Wetzlar, Germany

         Attn: Karl-Heinz Neeb, Manager
         Lotzengraben 22
         35584 Wetzlar-Naunheim, Germany

The administrator can be contacted at:

         Annette Dietter
         Chapel Road 7
         65555 Limburg, Germany
         Tel: 06431/97770
         Fax: 06431/977720
         E-mail: limburg@reus-und-partner.de
         

DEUTSCHES ROTES: Creditors' Meeting Slated for August 16
--------------------------------------------------------
The court-appointed provisional administrator for Deutsches
Rotes Kreuz Sozialdienste Lausitz GmbH, Olaf Seidel, will
present his first report on the Company's insolvency proceedings
at a creditors' meeting at 11:45 a.m., on Aug. 16.

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

         The District Court of Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden, Germany

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m., on Sept. 28 at the same
venue.

Creditors have until Aug. 17 to register their claims with the
court-appointed provisional administrator.

The District Court of Dresden opened bankruptcy proceedings
against Deutsches Rotes Kreuz Sozialdienste Lausitz GmbH on
July 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Deutsches Rotes Kreuz Sozialdienste Lausitz GmbH
         Haydnstr. 4
         01917 Kamenz, Germany

The administrator can be reached at:

         Olaf Seidel
         Weisseritz Road 3
         01067 Dresden, Germany
         Web: http://www.WORAKO.de/


GEBR. WIESEMANN: Claims Registration Ends August 16
---------------------------------------------------
Creditors of Gebr. Wiesemann GmbH have until Aug. 16 to register
their claims with court-appointed provisional administrator
Andreas Ringstmeier.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Sept. 6, 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 Cologne
         Meeting Room 14
         Ground Floor
         Luxemburger Road 101
         50939 Cologne, 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 Cologne opened bankruptcy proceedings
against Gebr. Wiesemann GmbH on July 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Gebr. Wiesemann GmbH
         Attn: Juergen Baumann Dortmund, Manager
         Industriestr. 31
         42477 Radevormwald, Germany

The administrator can be contacted at:

         Dr. Andreas Ringstmeier
         Magnusstr. 13
         50672 Cologne


KM-SERVICE: Claims Registration Ends August 20
----------------------------------------------
Creditors of KM-Service Kindor GmbH have until Aug. 20 to
register their claims with court-appointed provisional
administrator Eckhard Finke.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 14, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bad Kreuznach
         Hall 309
         Ringstrasse 79
         55543 Bad Kreuznach, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bad Kreuznach opened bankruptcy
proceedings against KM-Service Kindor GmbH on June 29.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         KM-Service Kindor GmbH
         Rebgarten 19
         55545 Bad Kreuznach, Germany

         Attn: Selma Hess, Manager
         55576 Badenheim, Germany

The administrator can be contacted at:

         Eckhard Finke
         Mannheimer Road 173
         55543 Bad Kreuznach, Germany
         Tel: 0671/84007-68
         Fax: 0671/84007-43


KUENZLER GRUNDSTUECKS: Claims Registration Ends August 15
---------------------------------------------------------
Creditors of Kuenzler Grundstuecksgemeinschaft GbR have until
Aug. 15 to register their claims with court-appointed
provisional administrator Philipp Grub.

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

The meeting of creditors will be held at:

         The District Court of Stuttgart
         Hall 4
         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 Kuenzler Grundstuecksgemeinschaft GbR on July 5.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Kuenzler Grundstuecksgemeinschaft GbR
         Remsstr. 2
         73650 Winterbach, Germany

         Attn: Otto-Karl Kuenzler, Manager
         Remsstr. 13
         73650 Winterbach, Germany

The administrator can be contacted at:

         Dr. Philipp Grub
         Humboldtstr. 16
         70178 Stuttgart, Germany
         Tel: 0711/966890
         Fax: 0711/9668919


STAHL- UND METALLBAU: Claims Registration Ends August 21
--------------------------------------------------------
Creditors of Stahl- und Metallbau Krone GmbH have until Aug. 21
to register their claims with court-appointed provisional
administrator Andreas Kienast.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.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 Stendal
         Hall 411
         Judicial Center "Albrecht der Bar"
         Scharnhorststrasse 40
         39576 Stendal, 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 Stendal opened bankruptcy proceedings
against Stahl- und Metallbau Krone GmbH on July 6.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Stahl- und Metallbau Krone GmbH
         Attn: Katrin Schmidt and Thomas Krone, Managers
         Nahplan 1
         39517 Grieben, Germany

The administrator can be contacted at:

         Andreas Kienast
         Lennestrasse 10
         D-39112 Magdeburg, Germany
         Tel: 0391/59733-0
         Fax: 0391/5973333


TRI IMMOBILIENVERMITTLUNGS: Claims Registration Ends August 16
--------------------------------------------------------------
Creditors of TRI Immobilienvermittlungs- und Bautrager GmbH have
until Aug. 16 to register their claims with court-appointed
provisional administrator Rolf Friedrich.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 6, 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 Ludwigsburg
         Hall 2008
         Palace Schuetz
         Schorndorfer Road 28
         Ludwigsburg, 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 Ludwigsburg opened bankruptcy proceedings
against TRI Immobilienvermittlungs- und Bautrager GmbH on
July 5.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         TRI Immobilienvermittlungs- und Bautrager GmbH
         Attn: Radovan Ruzek, Manager         
         Schwieberdinger Road 63
         71636 Ludwigsburg, Germany

The administrator can be contacted at:

         Rolf Friedrich
         Silver Castle Route 160
         70178 Stuttgart, Germany
         Tel: 0711/2376873


VOLKSWAGEN AG: Faurecia CEO Faces Possible Jail Term on Bribes
--------------------------------------------------------------
Pierre Levi, chairman and chief executive of car parts supplier
Faurecia S.A., has admitted knowledge of the bribery scam
between his company and carmaker Volkswagen AG, Bloomberg News
reports citing German prosecutor Sibylle Gottwald.

"[Mr.] Levi told us in a letter that he knew of the bribe
payments as far back as 2001," revealed Ms. Gottwald, adding
that the Faurecia CEO sent the document in June.

The prosecutors have included Mr. Levi in the probe, who is
facing up to five years in jail if charged and convicted, Ms.
Gottwald told Bloomberg.

As reported in TCR-Europe on July 26, German prosecutors are
probing into an alleged bribery scam between carmaker Volkswagen
AG and French car parts supplier Faurecia SA.

Prosecutors accuse Faurecia, a unit of PSA Peugeot Citroen S.A.,
of paying as much as EUR800,000 in bribes to VW's purchasing
managers to secure delivery contracts since 1998, WSJ relates.  
The prosecutors are investigating around 20 VW employees and
have secured the arrest of two Faurecia managers and a staff of
VW unit Audi.  

Prosecutors are also investigating 10 other car parts suppliers,
carmakers Audi and Bayerische Motoren Werke AG, Ms. Gottwald
said.

VW, which has pledged full cooperation on the matter, had filed
a complaint "against everyone possibly" connected to bribery
scandal.

                         About Faurecia

Headquartered in Nanterre, France, Faurecia S.A. --
http://www.faurecia.com/-- is one of Europe's largest  
automotive seat makers.  Faurecia also manufactures exhaust
systems, vehicle interiors, and front-end systems for cars.  It
has supply contracts with the Chrysler division of
DaimlerChrysler and owns Faurecia Exhaust Systems, a top exhaust
system maker in the US.

                        About Volkswagen

Headquartered in Wolfsburg, Germany, the Volkswagen AG --
http://www.volkswagen.de/-- is one of the world's leading  
automobile manufacturers and the largest carmaker in Europe.  
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.

                        *     *     *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November 2005, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.

As reported in TCR-Europe on July 18, VW has scheduled 4,000 to
6,000 job layoffs in its Brazilian plants through 2008.  It has
five factories in Brazil with about 21,000 workers.


VOLKSWAGEN AG: Files Lawsuit on Kickback Scandal
------------------------------------------------
Volkswagen AG has filed a lawsuit in a German court related with
the recent bribery scam between the carmaker and car parts
supplier Faurecia S.A., the Wall Street Journal reports.

"We're not tolerating illegal activities and take every possible
action against everyone who breaches law and order and damages
our company," Bernd Pischetsrieder, VW Chief Executive, said in
a statement.  WSJ says Mr. Pischetsrieder noted that the suit,
which names no defendant, applies to VW employees and also to
personnel the carmaker's "business partners."  Mr.
Pischetsrieder pledged cooperation with authorities.

German prosecutors accuse Faurecia, a unit of PSA Peugeot
Citroen S.A., of paying as much as EUR800,000 in bribes to VW's
purchasing managers to secure delivery contracts since 1998.  
The prosecutors are investigating around 20 VW employees and
have secured the arrest of two Faurecia managers and a staff of
VW unit Audi.  

Spiegel Online reports that Mr. Pischetsrieder had sent a letter
informing Faurecia supervisory board member and PSA Peugeot CEO
Jean Martin Folz that he wants to cease working with Faurecia
Chief Executive Pierre Levi.  Mr. Levi is currently under probe
after admitting knowledge of kickbacks in his company.

                Proposed Workweek Adjustments

Meanwhile, VW employees might soon agree with the company's plan
for a 35-hour workweek, if the carmaker will employ a profit-
sharing scheme, worker representative Bernd Osterloh told the
weekly Stern.  VW said in June it would drop its current 29-hour
workweek and return to the standard 35-hour workweek but without
a wage increase.  

"[VW] will not get the longer working time it has demanded for
free," Mr. Osterloh was quoted by Stern as saying.  Mr. Sterloh,
however, said the top priority is to secure the company's
future, and "we will have to make compromises for this, also on
working time."

                         About Faurecia

Headquartered in Nanterre, France, Faurecia S.A. --
http://www.faurecia.com/-- is one of Europe's largest  
automotive seat makers.  Faurecia also manufactures exhaust
systems, vehicle interiors, and front-end systems for cars.  It
has supply contracts with the Chrysler division of
DaimlerChrysler and owns Faurecia Exhaust Systems, a top exhaust
system maker in the US.

                        About Volkswagen

Headquartered in Wolfsburg, Germany, the Volkswagen AG --
http://www.volkswagen.de/-- is one of the world's leading  
automobile manufacturers and the largest carmaker in Europe.  
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.

                        *     *     *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November 2005, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.

As reported in TCR-Europe on July 18, VW has scheduled 4,000 to
6,000 job layoffs in its Brazilian plants through 2008.  It has
five factories in Brazil with about 21,000 workers.


VOX GROUP: Claims Registration Ends August 18
---------------------------------------------
Creditors of VOX Group GmbH have until Aug. 18 to register their
claims with court-appointed provisional administrator Gerhard
Walter.

Creditors and other interested parties are encouraged to attend
the meeting at 2:50 p.m. on Oct. 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 Koenigstein/Ts.
         Hall 4
         Law Courts
         Castle Way 9
         61462 Koenigstein/Ts.
         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 Koenigstein/Ts. opened bankruptcy
proceedings against VOX Group GmbH on June 29.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         VOX Group GmbH
         Katharina-Paulus-Str. 8
         65824 Schwalbach, Germany

         Attn: Colin Ronald Bottoms, Manager
         Muehl 10
         65824 Schwalbach, Germany

The administrator can be contacted at:

         Dr. Gerhard Walter
         Cronstettenstrasse 30
         D-60322 Frankfurt, Germany
         Tel: 069/9591100
         Fax: 069/95911012


WIKA GESELLSCHAFT: Claims Registration Ends August 14
-----------------------------------------------------
Creditors of WIKA Gesellschaft fuer Innen- und Aussenhandel mbH
have until Aug. 14 to register their claims with court-appointed
provisional administrator Stephan Klein.

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 Mannheim
         Area 232
         2nd Floor
         West Wing
         Schloss
         68149 Mannheim, 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 Mannheim opened bankruptcy proceedings
against WIKA Gesellschaft fuer Innen- und Aussenhandel mbH on
July 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         WIKA Gesellschaft fuer Innen- und Aussenhandel mbH
         Attn: Dirk Widder, Manager
         Rudolf-Diesel-Str. 5
         68723 Schwetzingen, Germany

The administrator can be contacted at:

         Dr. Stephan Klein
         M 1, 1
         68161 Mannheim, Germany
         Tel: 0621/15046417


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


EMPORIKI BANK: Credit Agricole Hikes Bid to EUR25 per Share
-----------------------------------------------------------
French bank Credit Agricole S.A. has increased its takeover
offer for Emporiki Bank of Greece S.A. from EUR23.5 per share to
EUR25 per share, Bloomberg News says.

Agricole, which holds a nine-percent stake in Emporiki, raised
its bid after the Greek government said the French bank's offer
was too low.  The raised offer values Emporiki at around EUR3.3
billion.

"Agricole had symbolically increase its offer to keep on good
terms with the Greek government," Jean Sassus, an analyst at
Raymond James, told Bloomberg.  "You have to live with the
government, which has regulatory powers."

Should Agricole succeed in its bid, it would gain two million
clients in Greece, which is currently experiencing a lending
boom, Bloomberg relates.

Bank of Cyprus, which offered EUR6 per share in cash and 3.25
BOC shares for every Emporiki share, withdrew its bid in July
after failing to get approval from the Central Bank of Cyprus.

                      About Credit Agricole

Headquartered in Paris, France, Credit Agricole S.A. (Euronext
Paris: ACA) -- http://www.credit-agricole-sa.fr/-- is the  
country's largest bank, owning a 25% stake each in about 40
regional banks, which in turn own more than half of Cr,dit
Agricole.  The company offers retail and business banking,
lending, and deposit services at more than 9,000 locations
throughout the country, including those of subsidiary Le Credit
Lyonnais (LCL), which it acquired in 2003.

                       About Emporiki Bank

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

                        *     *     *

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

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

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


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


SCOTTISH RE: Hires Goldman Sachs & Bear Stearns for Advice
----------------------------------------------------------
Scottish Re Group Limited (NYSE: SCT) has hired Goldman Sachs
and Bear Stearns to "assist with evaluating strategic
alternatives and potential sources of capital."  

The announcement came as the global life reinsurance company
disclosed a projected US$130 million second quarter loss and the
resignation of its President and CEO.  

In June, Jeffrey P. Hughes joined Scottish Re's Board of
Directors.  Mr. Hughes was elected to the Board at a meeting
held on June 22, following the resignation of William Spiegel.  
Mr. Hughes is Vice Chairman and a founding partner of The
Cypress Group, a New York based private equity firm and also the
Company's largest shareholder.  

Mr. Hughes, Scottish Re commented at the time, has a lengthy
record of business accomplishments and many years of board
experience across a range of industries.

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/-- is a  
global life reinsurance specialist.  Scottish Re has operating
companies in Bermuda, Charlotte, North Carolina, Grand Cayman
Dublin, Ireland, and Windsor, United Kingdom.  At March 31,
2006, the reinsurer's balance sheet showed US$12.2 billion
assets and US$10.8 billion in liabilities.  

                           *    *    *

On July 31, 2006, Fitch Ratings cut Scottish Re's issuer default
rating to BBB from A-, and lowered its insurer financial
strength rating one notch to A-.  Fitch rates the reinsurer's
hybrid and preferred securities at BB+.  


SCOTTISH RE: Moody's Downgrades Sr. Unsecured Debt Rating to Ba2
----------------------------------------------------------------
Following Scottish Re Group Limited's profit warning, Moody's
Investors Service has downgraded to Ba2 from Baa2 the senior
unsecured debt rating of Scottish Re.  

The rating agency also downgraded to Baa2 from A3 the insurance
financial strength ratings of the company's core insurance
subsidiaries, Scottish Annuity & Life Insurance Company (Cayman)
Ltd. and Scottish Re (U.S.), Inc.  All debt and IFS ratings of
Scottish Re remain on negative outlook.

On July 31, Scottish Re announced it expects to report a net
operating loss available to ordinary shareholders of
approximately US$130 million for the second quarter ended
June 30.  As a result Moody's commented that the company will
not meet the earning's expectations for the company's ratings as
previously outlined by Moody's.

The rating agency noted that the company has announced a series
of "one time charges" and accounting adjustments over a period
of multiple quarters.  Despite a number of recent investments in
personnel and systems to improve risk management and internal
controls at the company, the recent earnings announcement
diminishes Moody's confidence that there will not be further
adverse developments over the near to medium term.

The rating agency also noted that the company will be challenged
to write business following the recent earnings' misses, thereby
reducing future earnings growth.  However, the company's
liquidity profile and capital position appear adequate over the
near to medium term.

The company also announced that Scott E. Willkomm has resigned
his position as President and Chief Executive Officer.  Moody's
commented that the recent events at the company suggest problems
with the quality of its governance.  The departure of the CEO,
who had been with Scottish Re since 2000 as president and CFO,
raises concerns about the board's CEO and senior executive
succession-planning efforts.

Consistent with Moody's practice of widening the notching
between the IFS ratings and debt ratings at the holding company
as a company's ratings move down, the debt ratings were
downgraded three notches as opposed to two for the IFS ratings.

Ratings downgraded with a negative outlook:

Scottish Re Group Limited:

   -- Senior Unsecured, to Ba2 from Baa2;
   -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2;  
   -- Subordinate Shelf, to (P)Ba3 from (P)Baa3;
   -- Junior subordinate Shelf, to (P)B1 from (P)Ba1;
   -- Preferred Stock, to B1 from Ba1; and
   -- Preferred Shelf, to (P)B1 from (P)Ba1.

Scottish Holdings Statutory Trust II

   -- Preferred Shelf, to (P)Ba3 from (P)Baa3

Scottish Holdings Statutory Trust III

   -- Preferred Shelf, to (P)Ba3 from (P)Baa3

Scottish Annuity & Life Ins Co. (Cayman) Ltd.

   -- IFSR, to Baa2 from A3

Premium Asset Trust Series 2004-4

   -- Senior Secured, to Baa2 from A3

Scottish Re (U.S.), Inc.

   -- IFSR, to Baa2 from A3

Stingray Pass-Through Trust

   -- Senior Secured, to Baa2 from A3.

On Oct. 18, 2004, Moody's affirmed the ratings of Scottish Re
and its subsidiaries following the announcement that Scottish Re
had agreed to acquire the individual life reinsurance business
of ING Re.  The outlook for the ratings was lowered to negative
from stable at that time.

Scottish Re Group Limited is a Cayman Islands company with
principal executive offices located in Bermuda; it also has
significant operations in Charlotte, NC, Denver, CO and Windsor,
England.  On March 31, Scottish Re reported assets of US$12.3
billion and shareholders' equity of US$1.2 billion.

Moody's insurance financial strength ratings are opinions on the
ability of insurance companies to repay punctually senior
policyholder claims and obligations.


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


BANCA ITALEASE: Fitch Keeps Individual Rating at C
--------------------------------------------------
Fitch Ratings affirmed Banca Italease's ratings at Issuer
Default A- with a Stable Outlook, Short-term F2, Individual C
and Support 2 following the announced acquisition of leasing
company Leasimpresa.

On July 28, Banca Italease announced that it had agreed with
Banco Popolare di Verona e Novara to acquired through a merger
by incorporation its leasing subsidiary Leasimpresa for
EUR258 million in shares.  The operation is subject to approval
by both banks' board of directors and shareholder meetings and
by the authorities.

At the same time, Banca Italease announced plans to raise an
additional EUR300 million in fresh capital through a right issue
by end-2006, subject to authorization by Banca Italease's
shareholders.

The acquisition of Leasimpresa, which had EUR2.53 billion total
assets at end-2005 and a market share of 1.9% of new leasing
contracts in 2005, should enable Banca Italease to strengthen
its position as Italy's leading leasing company.  

The bank also expects to generate synergies, estimated at EUR13
million for 2007 and EUR34 million by 2008, primarily from
cross-selling opportunities to Leasimpresa's customer base.  In
addition, BPVN has agreed to refer its customers exclusively to
Banca Italease for a period of three years from the date of the
transaction.

Fitch considers the transaction and the planned rights issue
positive for the bank as they help business growth and should
ensure the availability of sufficient capital for the bank's
aggressive expansion plans.  Banca Italease's equity should
reach over EUR1.3 billion by end-2006 and its Tier 1 regulatory
capital ratio should strengthen significantly.

Banca Italease has stated that it intends to maintain a Tier 1
ratio above 7% over the medium term, which Fitch considers
acceptable given the bank's fast growth and exposure to Italian
real estate leases.  The agency notes that Banca Italease's
ratings could come under pressure if faster-than-expected asset
growth results in the bank not attaining its projected capital
adequacy ratio.

As a result of both operations, BPVN's stake in Banca Italease
is expected to rise to over 34% from currently 29%, and BPVN has
stated that it regards a stake of approximately 30% as
strategic.  A smooth integration of Leasimpresa should be helped
by both companies utilizing the same IT platform and by Banca
Italease management's good knowledge of the leasing company.
Banca Italease's management has a good record in integrating
newly acquired businesses.

Nevertheless, Fitch notes that the bank's rapid growth to date,
which has included a number of acquisitions, might give rise to
increasing operational risk.

Fitch considers Banca Italease's performance good.  The bank
announced preliminary results for H106, posting net income of
around EUR80 million, a 76% year-on-year increase according to
the bank's calculations.  Banca Italease has also revised its
financial targets under its 2006-2008 business plan.  

It expects to generate EUR351.6 million consolidated net income
by 2008, an increase of almost EUR100 million compared to the
previous 2008 target.  While Fitch considers the bank's target
ambitious, it should be helped by the currently strong
performance of the sector, which provides ample scope for
further growth.


FINPART SPA: Court Rejects Popolare di Intra's EUR50-Mln Offer
--------------------------------------------------------------
The Milan Bankruptcy Court rejected a composition proposal by
Banca Popolare di Intra for bankrupt textile company Finpart
S.p.A., Il Sole 24 Ore says.

According to the report, the Court refused Intra's EUR50-million
offer due to:

   -- an unclear loan draw-down mechanism; and

   -- property group Inim serving as guarantee by Intra for
      money lent to Finpart.

Intra tells the court that the composition proposal was to avoid
legal obstacles as Finpart's creditors were mostly bondholders
to which the bank has no connection.

Il Sole reports that the ruling may have been influenced by
chief prosecutor Luigi Orsi, who revealed the vague sale
transaction of former Inim-owned Scottish castle to an Intra-
financed businessman.

                  About Banca Popolare di Intra

Based in Verbania Intra, Italy, Banca Popolare di Intra --  
http://www.bpintra.it/-- Intra is a small cooperative bank with  
a strong local franchise in Piedmont and Lombardy.  The bank
operates through a network of 80 branches and employs around
1,100 staff.

                        *     *     *

As reported in TCR-Europe on July 6, Standard & Poor's Ratings
Services has the bank's 'BB+' long-term and 'B' short-term
counterparty credit ratings would remain on CreditWatch with
developing implications, where they were initially placed on
Feb. 15.
     
"The current ratings are supported by the short-term prospect of
an agreement with judicial authorities on settling the
substantial legal risks linked with the bankruptcy of textile
company Finpart," said Standard & Poor's credit analyst Taos
Fudji.

"They are also supported by the continuing interest in buying
Intra demonstrated by four short-listed banks," he added.
    
The bank's financial profile is weak due to the massive losses
it suffered in 2005 and early 2006, and the liquidity position
has deteriorated following the recent turmoil.  
     
Standard & Poor's will resolve the CreditWatch status once the
buyer has been selected, and after a review of Intra's risk
profile and business plan.

As reported in TCR-Europe on Feb. 21, Fitch Ratings lowered
Banca Popolare di Intra's ratings to Long-term BBB- from BBB and
Individual rating to D from C.  At the same time the agency has
put on Rating Watch Negative the bank's Long-term BBB- and
Short-term F3 ratings.The Support rating is affirmed at 3.

The downgrade of the bank's Long-term and Individual ratings
reflects the weakening of Intra's capital base stemming from
large losses in its loan portfolio.  For 2005 the bank reported
a net loss of EUR113 million, severely limiting its financial
flexibility.  

                         About Finpart

Headquartered in Milan, Italy, Finpart S.p.A. is fashion holding
company whose labels include Cerruti and Frette.  The Milan
Bankruptcy Court declared Finpart insolvent in October 2005.

Finpart's problems started in July 2004 after defaulting on
EUR200 million bonds issued by subsidiary Cerruti Finance.  For
the first nine months of 2004, the company booked EUR59.5
million in losses, up from -EUR49.7 million in the same period
in 2003.  

In June 2005, the Court gave Finpart two months to draft a
restructuring plan approved by banks and stock market regulator
CONSOB.  The plan, however, got stuck at CONSOB, which refused
to approve the plan because it entails going to the market with
a debt-to-equity offer.  The plan proposes to reduce bond debt
by 35%, convert another 35% into new shares, and postpone
maturity of the remaining 30% until 2011.


POPOLARE DI INTRA: Milan Court Turns Down Offer for Finpart SpA
---------------------------------------------------------------
The Milan Bankruptcy Court rejected a composition proposal by
Banca Popolare di Intra for bankrupt textile company Finpart
S.p.A., Il Sole 24 Ore says.

According to the report, the Court refused Intra's EUR50-million
offer due to:

   -- an unclear loan draw-down mechanism; and

   -- property group Inim serving as guarantee by Intra for
      money lent to Finpart.

Intra tells the court that the composition proposal was to avoid
legal obstacles as Finpart's creditors were mostly bondholders
to which the bank has no connection.

Il Sole reports that the ruling may have been influenced by
chief prosecutor Luigi Orsi, who revealed the vague sale
transaction of former Inim-owned Scottish castle to an Intra-
financed businessman.

                  About Banca Popolare di Intra

Based in Verbania Intra, Italy, Banca Popolare di Intra --  
http://www.bpintra.it/-- Intra is a small cooperative bank with  
a strong local franchise in Piedmont and Lombardy.  The bank
operates through a network of 80 branches and employs around
1,100 staff.

                        *     *     *

As reported in TCR-Europe on July 6, Standard & Poor's Ratings
Services has the bank's 'BB+' long-term and 'B' short-term
counterparty credit ratings would remain on CreditWatch with
developing implications, where they were initially placed on
Feb. 15.
     
"The current ratings are supported by the short-term prospect of
an agreement with judicial authorities on settling the
substantial legal risks linked with the bankruptcy of textile
company Finpart," said Standard & Poor's credit analyst Taos
Fudji.

"They are also supported by the continuing interest in buying
Intra demonstrated by four short-listed banks," he added.
    
The bank's financial profile is weak due to the massive losses
it suffered in 2005 and early 2006, and the liquidity position
has deteriorated following the recent turmoil.  
     
Standard & Poor's will resolve the CreditWatch status once the
buyer has been selected, and after a review of Intra's risk
profile and business plan.

As reported in TCR-Europe on Feb. 21, Fitch Ratings lowered
Banca Popolare di Intra's ratings to Long-term BBB- from BBB and
Individual rating to D from C.  At the same time the agency has
put on Rating Watch Negative the bank's Long-term BBB- and
Short-term F3 ratings.The Support rating is affirmed at 3.

The downgrade of the bank's Long-term and Individual ratings
reflects the weakening of Intra's capital base stemming from
large losses in its loan portfolio.  For 2005 the bank reported
a net loss of EUR113 million, severely limiting its financial
flexibility.  

                         About Finpart

Headquartered in Milan, Italy, Finpart S.p.A. is fashion holding
company whose labels include Cerruti and Frette.  The Milan
Bankruptcy Court declared Finpart insolvent in October 2005.

Finpart's problems started in July 2004 after defaulting on
EUR200 million bonds issued by subsidiary Cerruti Finance.  For
the first nine months of 2004, the company booked EUR59.5
million in losses, up from -EUR49.7 million in the same period
in 2003.  

In June 2005, the Court gave Finpart two months to draft a
restructuring plan approved by banks and stock market regulator
CONSOB.  The plan, however, got stuck at CONSOB, which refused
to approve the plan because it entails going to the market with
a debt-to-equity offer.  The plan proposes to reduce bond debt
by 35%, convert another 35% into new shares, and postpone
maturity of the remaining 30% until 2011.


TISCALI SPA: Posts EUR62.9 Million EBITDA for First Half 2006
-------------------------------------------------------------
Tiscali S.p.A. releases its preliminary results for the first
half ending June 30, 2006.

Preliminary results for the semester ending June 30, 2006,
confirm the trend of continuous improvement of Tiscali Group's
financial and operational results.

The 2006 half year revenues stood at EUR 412.9 million, up 17%
versus first half 2005 (EUR 353.7 million), thanks to the
significant growth of ADSL revenues (up 44% versus 1H2005).

Approximately 360,000 users registered to Tiscali's ADSL
services in the first semester, bringing total broadband
customers to 2.07 million (up 21% compared to 31st December
2005), of which more than one quarter receive unbundled
services.

In particular, new DSL users in the United Kingdom, where
customer migration to the unbundling network is successfully
ongoing, were around 265,000, reaching a total of around 1.2
million subscribers; 81,000 new users registered in Italy
reaching a total of around 384,000 subscribers and 26,000 in the
Netherlands, reaching a total of around 276,000.

The gross operating result -- EBITDA -- stood at EUR62.9
million, a 20% increase versus EUR52.4 million of first half
2005.

Tiscali's Board of Directors will convene on Sept. 13 to approve
the results.

                          About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the  
country.  The group also operates in other European countries
through acquisitions.   Tiscali has more than seven million
subscribers, of which over 1.5 million are broadband users.  
It has sold non-core assets to raise money to cover a EUR250
million bond that matured in July.  Former chairman and founder
Renato Soru owns almost 30% of the company.

                        *     *     *

As reported in TCR-Europe on March 8, Fitch Ratings sustained
Italy-based Tiscali S.p.A.'s Long-term Issuer Default Rating at
CCC with Stable Outlook.  Tiscali's Short-term rating is
downgraded to C from B to be in line with the CCC IDR.  At the
same time, the agency affirmed Tiscali Finance S.A.'s EUR209
million guaranteed notes at B-/RR2.


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


AKMAI: Creditors Must File Claims by Aug. 29
--------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Akmai (RNN 061800074535) insolvent.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Aug. 29 to submit written proofs of claim
to:
         
         LLP Akmai
         Micro District Mamyr-1, 13-43
         Almaty, Kazakhstan
         Tel: 8 333 294 44-97


AQVA SPESTEH: Creditors Must File Claims by Aug. 29
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Aqva Spesteh insolvent.

Creditors have until Aug. 29 to submit written proofs of claim
to:

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


BIZNES O-XXI: Creditors Must File Claims by Aug. 29
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl Region
declared LLP Biznes O-XXI insolvent on May 30.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Aug. 29 to submit written proofs of claim
to:
         
         The Specialized Inter-Regional
         Economic Court of Jambyl Region
         Suleimanova Str. 11a (17)
         Taraz
         Jambyl Region
         Kazakhstan
         Tel: 8 (3262) 43-25-52
              8 (32642) 2-40-74


MTZ TRANSMASH: Proof of Claim Deadline Slated for Aug. 29
---------------------------------------------------------
The LLP Representative of the MTZ Transmash in Kazakhstan has
declared insolvency.  Creditors have until Aug. 29 to submit
written proofs of claim to:

         MTZ Transmash
         Abai Str. 182
         Almaty District
         Astana, Kazakhstan


ROSINKA: Proof of Claim Deadline Slated for Aug. 25
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP Rosinka insolvent on June 5.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Aug. 25 to submit written proofs of claim.

Inquiries can be addressed to 8 (3292) 50-97-23.


ROST: Claims Registration Ends Aug. 29
--------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
CJSC Rost (RNN 600400105900) insolvent on June 5.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Aug. 29 to submit written proofs of claim
to:

         CJSC Rost
         Post Office Box 252
         General Post Office
         050000 Almaty, Kazakhstan
         Tel: 8 333 241 79-98


STROIKONSTRUKSIA: Claims Registration Ends Aug. 29
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Stroikonstruksia insolvent on June 6.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Aug. 29 to submit written proofs of claim
to:

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


TANDAI: Creditors' Claims Due Aug. 25
-------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP Tandai insolvent.

Creditors have until Aug. 25 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Atyrau Region
         3rd Floor
         Abai Str. 10a
    Atyrau
    Atyrau Region
    Kazakhstan


TEHNOSERVIS-TARAZ: Creditors' Claims Due Aug. 25
------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl Region
declared LLP Tehnoservis-Taraz insolvent on June 2.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Aug. 25 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Jambyl Region
         Suleimanova Str. 11a (17)
         Taraz
         Jambyl Region
         Kazakhstan
         Tel: 8 (3262) 43-25-52


USB COM: Creditors' Claims Due Aug. 25
--------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP USB Com (RNN 600300511851) insolvent on June 14.

Creditors have until Aug. 25 to submit written proofs of claim
to:

         LLP USB Com
         Micro District 3, 34-93
         Almaty, Kazakhstan


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


VESTA-TOKMOK: Public Auction Scheduled for Aug. 17
--------------------------------------------------
The bidding organizer and insolvency manager of the LLC Vesta-
Tokmok set for public auction the company's knitting equipment
complex at 10:00 a.m. on Aug. 17 at:

         Ovcharova Str. 39-a
         Tokmok, Kyrgyzstan

The property's starting price is set at EUR695,635, which was
reduced by 50%.

Interested bidders have until 2:00 p.m. on Aug. 16 to deposit an
amount equivalent to 1% of the starting price to:

         Settlement Account No. 1020002000271781
         Lenin Department of the OJSC Kyrgyzpromstroibank
         MFO 101002

or to the cashier of the LLC Vesta-Tokmok.

Participants may submit their bids at:

         Room 310
         L. Tolstogo Str. 114
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 65-94-34
              (0-502) 55-11-97


=================
L I T H U A N I A
=================


SEB VILNIAUS: Fitch Maintains Individual Rating at C
----------------------------------------------------
Fitch Ratings changed Lithuania-based SEB Vilniaus Banka's
Outlook to Positive from Stable.  The ratings are affirmed at
Issuer Default A, Short-term F1, Individual C and Support 1.

This follows the change in the Outlook on SEB Vilniaus Bankas'
parent, Sweden-based Skandinaviska Enskilda Banken's to Positive
from Stable.  SEB Vilniaus Bankas' Issuer Default, Short-term
and Support ratings are based on the potential support available
from its parent.  SEB owns 99% of SEB Vilniaus Bankas, and Fitch
considers there to be an extremely high probability that support
would be available from SEB should the need arise.

Vilniaus Bankas is the largest bank in Lithuania.  It has
subsidiaries involved in leasing, investment banking, mortgages,
life assurance, asset management, venture capital and real
estate.  It also owns 98.7% of Bank Agio, a small Ukrainian
bank.


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


CARLSON WAGONLIT: S&P Assigns B+ Long-Term Corp. Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to France- and Netherlands-based travel
management company Carlson Wagonlit B.V., the parent company of
Carlson Wagonlit Travel Group.  The outlook is stable.
     
At the same time, Carlson Wagonlit B.V.'s US$850 million
proposed senior secured facilities, due 2013 and 2014, were
assigned a 'B+' rating, the same level as the corporate credit
rating, with a recovery rating of '2', indicating Standard &
Poor's expectation of a substantial recovery of principal (80%-
100%) in the event of a payment default.
     
Proceeds from the financing are being used to finance the
recapitalization of CWT group by U.S.-based privately owned
marketing and leisure group Carlson Companies Inc. and private
equity group One Equity Partners; to finance the acquisition of
U.S.-based travel management company Navigant International
Inc.; and for working capital and other corporate requirements
of CWT.

The ratings are subject to satisfactory review of final
documentation and successful closing of the underlying
transactions.

"The corporate credit rating reflects CWT's high leverage after
completion of the buy-out and the acquisition," said Standard &
Poor's credit analyst Michael Seewald.

It also reflects the vulnerability of the travel sector to
external event risk, as was experienced in 2001-2003, the
pressure on margins in light of the high bargaining power of
corporate clients and travel service suppliers, and the
possibility that further acquisitions or future dividend
payments might be funded by further recapitalization.  

These negative rating factors are partially mitigated by the
group's leading worldwide market position in the growing, but
fragmented, corporate travel services market, its strong track
record in cash generation and in acquiring and integrating
businesses, and by its diversified revenue streams and flexible
cost structure.  At closing of the transaction during the third
quarter 2006, CWT will have a total financial debt position of
about US$1 billion.
    
CWT, which was previously a joint venture of CCI and French
leisure group Accor S.A., had revenues of US$1.2 billion in 2005
and an EBITDA of US$120 million.  The company is the second-
largest player in the corporate travel-services market with a
worldwide 7% pre-acquisition market share (9% post-acquisition)
after American Express group, which holds a 10% market share.
   
"The stable outlook reflects our expectation that CWT will be
able to realize projected post-acquisition synergies and
revenue-growth targets according to plan and to generate
sufficient free cash flow to cover its debt service
requirements," said Mr. Seewald.


MITTAL STEEL: Moody's Confirm Ba1 Senior Unsecured Ratings
----------------------------------------------------------
Moody's Investors Service confirmed the Baa3 corporate family
and senior unsecured issuer ratings of Mittal Steel Company
N.V., the Baa3 rating of the guaranteed debt of Ispat Inland,
ULC as well as the Ba1 senior unsecured rating of Mittal Steel
U.S.A. Inc. and the Ba1 senior unsecured rating of bonds
initially issued by Ispat Inland, Inc.  

In addition, Moody's downgraded the long-term rating of Arcelor
Finance and Usinor, now Arcelor France, to Baa3 from Baa2 and
the short-term rating of Arcelor Finance to Prime-3 from
Prime-2.  The outlook is stable for all ratings.

The rating actions conclude the review for possible downgrade
that was initiated on Mittal Steel and Arcelor's ratings on
January 30 as a result of Mittal Steel's bid for Arcelor and
follow the tender of 91.9% of Arcelor shares to Mittal Steel,
paving the way for a merger of the two groups.  Upon completion
of the merger, the combined entity will be the world's leading
steel producer with a steel-making capacity of 120 million tons
p.a. and an unrivalled product and geographical coverage - key
factors supporting the current ratings.

The Baa3 ratings are also underpinned by the group's solid
operational and cash flow profile, with financial metrics that
Moody's expects to show a trend of de-leveraging following the
transaction.  Both Arcelor and Mittal have demonstrated strong
performance over recent years, primarily as a result of the
buoyancy in steel prices but also thanks to cost improvements,
efficiencies in operations and, in the case of Mittal, better
access to lower-cost raw materials.  Cash flows from both
companies are substantial in the context of legacy individual
indebtedness and as such the individual company credit metrics
were strong pre-transaction.

As regards prospects for servicing the combined debt plus
acquisition debt, it is Moody's central scenario that steel
prices will remain robust over the next 12-18 months, thereby
providing a window for speedy debt reduction from a peak of
adjusted proforma US$36 billion.  

Pro-forma (2005) metrics for the transaction are:

   -- Operating Cash Flow less Dividends to Adjusted Debt of
21.8%;

   -- Free Cash Flow to Adjusted Debt of 9.3%; EBIT to Gross
Interest of 7.9x; and

   -- Adjusted Debt / EBITDA of 2.3x.

Moody's expects these metrics to develop as follows over the
next two to three years:

   -- Operating Cash Flow less Dividends to Adjusted Debt in the
high twenties;

   -- Free Cash Flow to Adjusted Debt in the mid teens;

   -- EBIT to Gross Interest above 6.0x; and

   -- Adjusted Debt / EBITDA below 2.5x.

Moreover, Mittal's access to raw materials and its high levels
of self-sufficiency should ensure that the group's exposure to
volatile prices is minimized, thus maintaining a good cash
cushion for variations in steel prices.

Given the immediate risks associated with combining the entities
at a relatively high point in the steel price cycle, and the
need to conclude on a number of outstanding pre-merger issues -
not least the likely sale of Dofasco, the possible buy-out of
Arcelor's Brazilian minorities and the composition of the senior
management roster.

Moody's has set certain financial metrics as a threshold to
maintaining investment grade, namely:

   -- Operating Cash Flow less Dividends to Adjusted Debt of at
least 20%;

   -- Free Cash Flow to Adjusted Debt of at least 5%; EBIT to
Gross Interest of at least 4x; and

   -- Adjusted Debt/EBITDA of below 3.5x.

Any improvement in the ratings will primarily depend upon the
success of the integration process and the performance of the
combined entity over the next 12-18 months, most notably to
reduce debt as expected.

Moody's will continue to assess the evolution of the debt and
capital structure of the combined entity.  At the outset it is
expected that the legacy debt outstanding at each entity will
remain in place.  Moreover, Moody's has not introduced any
notching for any structural subordination given the position of
the debt relative to the cash flow generation from the
respective entities.  The rating of Arcelor has therefore been
aligned with Mittal's Baa3 rating.

The stable outlook is based on Moody's expectation that the
combined cash flows will remain above the threshold metrics and
that the combined management of the two groups will be able to
integrate operations with a common strategic direction.

Ratings confirmed:

Mittal Steel Company N.V.

   -- Baa3 Corporate Family Rating; and
   -- Baa3 Issuer Rating

Mittal Steel USA, Inc.

   -- Ba1 Rating on the senior unsecured global notes

Ispat Inland Inc.

   -- Ba1 Rating on the senior unsecured industrial revenue
bonds; and   

   -- Ba1 Rating on the senior unsecured pollution control
bonds.

Ispat Inland U.L.C.

   -- Baa3 rating on the guaranteed senior secured notes due
2010 (floating rate); and

   -- Baa3 rating on the guaranteed senior secured notes.

Ratings downgraded:

Arcelor Finance

   -- Senior Unsecured Rating, to Baa3 from Baa2;
   -- Short-Term Rating, to Prime-3 from Prime-2; and
   -- Baa3 Senior Unsecured Rating of Usinor, to Baa3 from Baa2.

Mittal Steel Company N.V., the world's largest steel company,
was formed from the combination of Ispat International N.V., LNM
Holdings N.V. and ISG.  For the fiscal year 2005, the company
reported revenues of US$28 billion.

Arcelor, based in Luxembourg, is the world's second-largest
steel group with leading market positions in flat steel, long
steel and stainless steel.  In 2005 the group generated annual
sales of EUR32 billion.


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


BRICKWORKS: Court Names D. Serdyuk as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Krasnodar Region appointed Mr. D.
Serdyuk as Insolvency Manager for OJSC Brickworks.  He can be
reached at:

         D. Serdyuk
         Uralskaya Str. 134
         350059 Krasnodar Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-32-19451/2005-1/298 B.

The Debtor can be reached at:

         OJSC Brickworks
         Mezhdurechenskiy
         Pavlovskiy Region
         352051 Krasnodar Region
         Russia


COMPANY-BUILDER: Court Names A. Boykov as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Moscow Region appointed Mr. A. Boykov
as Insolvency Manager for LLC Company-Builder (TIN 7724023358).  
He can be reached at:

         A. Boykov
         Building 1
         Sumskoy Proezd 21
         117208 Moscow Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-73597/05-71-211 B.  

The Debtor can be reached at:

         LLC Company-Builder
         Building 5
         Kashirskoye Shosse 57
         115211 Moscow Region
         Russia


DANILOVSKIY FACTORY: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Yaroslavl Region has commenced
bankruptcy supervision procedure on OJSC Danilovskiy Factory of
Woodworkers.

The case is docketed under Case No. A82-2800/06-3B/27.  

The Temporary Insolvency Manager is:

         Mr. V. Ryabchenkov
         Post User Box 17
         127106 Moscow Region
         Russia

The Debtor can be reached at:

         OJSC Danilovskiy Factory of Woodworkers
         Zavodskaya Str. 7
         Danilov
         152070 Yaroslavl Region
         Russia


DMITRIEVSKIY BUTTER-CHEESE: A. Antyukhov to Manage Assets
---------------------------------------------------------
The Arbitration Court of Kursk Region appointed Mr. A. Antyukhov
as Insolvency Manager for OJSC Dmitrievskiy Butter-Cheese
Factory (TIN 4605000765).  He can be reached at:

         A. Antyukhov
         Room 406
         Dzerzhinskogo Str. 68
         305001 Kursk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A35-2320/05 g.

The Arbitration Court of Kursk Region is located at:

         K. Marksa Str. 25
         305004 Kursk Region
         Russia

The Debtor can be reached at:

         OJSC Dmitrievskiy Butter-Cheese Factory
         Promehslennaya Str. 1
         Dmitriev
         307500 Kursk Region
         Russia


ERMISH-AGRO-PROM: Court Names S. Mordvinov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Ryazan Region appointed Mr. S.
Mordvinov as Insolvency Manager for OJSC Ermish-Agro-Prom.  He
can be reached at:

         S. Mordvinov
         Post User Box 75
         390035 Ryazan Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A54-3048/2005-S20.

The Arbitration Court of Ryazan Region is located at:

         Pochtovaya Str. 43/44
         Ryazan Region
         Russia

The Debtor can be reached at:

         OJSC Ermish-Agro-Prom
         Mekhanizatorov Str. 10
         Ermish
         391660 Ryazan Region
         Russia


KARLAMANSKIY SUGAR: Court Names G. Yaparov to Manage Assets
-----------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. G.
Yaparov as Insolvency Manager for OJSC Karlamanskiy Sugar-
Concentrated-Milk Factory (TIN 0229005721).  He can be reached
at:

         Tramvaynaya Str. 4B
         Ufa
         450027 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A07-2194/02/A-RSA/KhRM.

The Arbitration Court of Bashkortostan Republic is located at:

         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan Republic
         Russia

The Debtor can be reached at:

         OJSC Karlamanskiy Sugar-Concentrated-Milk Factory
         Lenina Str. 1
         Pribelskiy
         Kramaskalinskiy Region
         453012 Bashkortostan Republic
         Russia


NOVOUSITOVSKIY: Court Names O. Fokina as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Pskov Region appointed Ms. O. Fokina as
Insolvency Manager for OJSC Flax Factory Novousitovskiy.  She
can be reached at:

         4th Floor
         Sovetskaya Str. 60A
         180000 Pskov Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A52-7124/2005/4.

The Debtor can be reached at:

         OJSC Flax Factory Novousiovskiy
         Novaya Usitva
         Palkinskiy Region
         181275 Pskov Region
         Russia


PROKOPYEVSKIY EXPERIMENTAL: Court Starts Bankruptcy Supervision
---------------------------------------------------------------
The Arbitration Court of Kemerovo Region will convene on Oct. 30
to hear the bankruptcy supervision procedure on LLC
Prokopyevskiy Experimental Factory.  The case is docketed under
Case No. A8554/2006-4.

The Temporary Insolvency Manager is:

         A. Shestakov
         Apartment 5
         Lesnoy Per. 4
         634041 Tomsk Region
         Russia

The Debtor can be reached at:

         LLC Prokopyevskiy Experimental Factory
         Gagrina Str. 26a
         Prokopyevsk
         653033 Kemerovo Region
         Russia


ROSNEFT OIL: Debt Repayments Prompt S&P to Lift Ratings to BB
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit and senior unsecured debt ratings on Russia-
based OJSC Oil Company Rosneft to 'BB' from 'B+'.  The outlook
is stable.

"The rating action reflects the substantial repayment of US$7.3
billion of short-term debt at the level of Rosneft's parent,
Rosneftegaz," said Standard & Poor's credit analyst Tatiana
Kordyukova.

The debt had been guaranteed by Rosneft and was repaid using the
proceeds from Rosneft's recent IPO.  In addition, Rosneft
received about US$1.9 billion of proceeds from the newly issued
shares, of which US$1.3 billion will be used to fund the
company's liabilities under its capital expenditure commitments.
As a result, Rosneft's total adjusted debt has reduced to an
estimated US$13.4 billion at July 31, from US$21 billion at
Jan. 1.  

Rosneft's financial profile is also continuing to benefit from
the current high oil price environment, which allows the company
to generate increasing free operating cash flows (US$1.7 billion
in the 12 months to March 31, which is calculated as operating
cash flows adjusted for capital expenditure).

Rosneft's credit metrics continue to be below those of its main
Russian peers, however, while its aggressive growth strategy and
appetite for acquisitions could result in a renewed rise in its
debt.  The company remains involved in several litigations,
which entail certain risks, although claimants--current,
contingent, or future--face a difficult negotiating and legal
environment when dealing with Rosneft in the Russian context,
which mitigates these risks somewhat.
     
There remains the possibility of substantial debt-financed
acquisitions given Rosneft's ambitious growth strategies and its
historically aggressive approach to financing acquisitions and
major investments.  Standard & Poor's expects the company to
invest heavily in various greenfield projects and to acquire or
build downsteam assets.  The company is likely to remain an
active acquirer of new licenses and producing oil assets as
well.

"More predictable strategies, a clearer definition of its
financial policies, and/or improved liquidity with lower short-
term debt maturities could increase the chances of an upgrade,"
said Ms. Kordyukova.

"This is especially if Russian government policy toward Rosneft
and the energy sector is seen to be more institutionalized,
transparent, and creditor friendly."


STARO-STEKLYANNYJ SPIRIT: Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Ryazan Region has commenced bankruptcy
supervision procedure on OJSC Staro-Steklyannyj Spirit
Distillery.  The case was docketed under Case No. A54-1342/2006.

The Temporary Insolvency Manager is:

         E. Porkhunov
         Office 14
         Zavrazhnova Pr. 5
         390013 Ryazan Region
         Russia

The Arbitration Court of Ryazan Region is located at:

         Pochtovaya Str. 43/44
         Ryazan Region
         Russia

The Debtor can be reached at:

         OJSC Staro-Steklyannyj Spirit Distillery
         Staro-Steklyannoye
         Spasskiy Region
         Ryazan Region
         Russia


STERLITAMAKSKIY FACTORY: External Management Procedure Starts
-------------------------------------------------------------
The Arbitration Court of Bashkortostan Republic commenced
external management bankruptcy procedure on OJSC Sterlitamakskiy
Factory of Silicate Bricks.  The case is docketed under Case No.
A07/28816/05-G.

The External Insolvency Manager is:

         V. Karteshkov
         Dzhambula Str. 5
         Sterlitamak
         453102 Bashkortostan Republic
         Russia

The Debtor can be reached at:

         OJSC Sterlitamakskiy Factory of Silicate Bricks
         Dzhambula
         Sterlitamak
         453102 Bashkortostan Republic
         Russia


TARUTINO: Court Names N. Surtaev as Insolvency Manager
------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. N.
Surtaev as Insolvency Manager for OJSC Tarutino.  He can be
reached at:

         N. Surtaev
         Office 203
         Diksona Str.1
         Krasnoyarsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-6340/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         OJSC Tarutino
         Tarutino
         Krasnoyarsk Region
         Russia


TROYA: Bankruptcy Hearing Slated for October 11
-----------------------------------------------
The Arbitration Court of Kaluga Region will convene at 2:30 p.m.
on Oct. 11 to hear the bankruptcy supervision procedure on LLC
Tobacco Company Troya.  The case was docketed under Case No.
A23-692/06B-17-33.

The Temporary Insolvency Manager is:

         A. Razmahova  
         Tsiolkovskogo Str. 33/19
         248000 Kaluga Region
         Russia

The Arbitration Court of Kaluga Region is located at:

         Staryj Torg Square 4
         Kaluga Region
         Russia

The Debtor can be reached at:

         LLC Tobacco Company Troya
         Moskovskaya Str. 290
         248021 Kaluga Region
         Russia


VOLGA-MARTIN-DIESEL: S. Pavlish to Manage Insolvency Assets
-----------------------------------------------------------
The Arbitration Court of Volgograd Region appointed Ms. S.
Pavlish as Insolvency Manager for CJSC Volgogradskiy Motor
Factory Volga-Martin-Diesel.  She can be reached at:

         S. Pavlish
         Office 400
         7th Gvardeyskaya Str. 2A
         400005 Volgograd Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A12-29747/05-s57.

The Debtor can be reached at:

         CJSC Volgogradskiy Motor Factory Volga-Martin-Diesel
         Aviatorov Shosse, 8
         400048 Volgograd Region
         Russia


VOLOGDA-WOOD-STROY: Court Names A. Ershov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Vologda Region appointed Mr. A. Ershov
as Insolvency Manager for OJSC Vologda-Wood-Stroy (TIN
3525027199).  He can be reached at:

         A. Ershov
         Post User Box 7
         160004 Vologda Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A13-1482/2005-17.

The Debtor can be reached at:

         OJSC Vologda-Wood-Stroy
         Vetoshkina Str. 3B
         160000 Vologda Region
         Russia


YUKOS OIL: Moscow Arbitration Court Rules on Bankruptcy
-------------------------------------------------------
The Hon. Pavel Markov of the Moscow Arbitration Court upheld
creditors' vote to liquidate OAO Yukos Oil Co. and declared what
was once Russia's biggest oil firm bankrupt on Aug. 1.  The
expected court ruling paves the way for the company's
liquidation and auction.

"It is a death sentence for the company," Yukos lawyer Drew
Holliner told the Associated Press after the ruling.

Yukos's creditors, led by the Federal Tax Service and state-
owned OAO Rosneft Oil Company, will oversee the liquidation and
distribution of the company's assets.

According to The Guardian, Russian state-dominated companies
like Rosneft and Gazprom confirmed their interest in a business
expected to go for a knockdown price at auction.  Gazprom has
already proposed to pay close to US$2 billion for Yukos' 20%
stake on Gazprom Neft.

As reported by TCR-Europe on July 27, creditors of Yukos voted
to liquidate the oil firm after rejecting a management rescue
plan, which valued the company's assets at about US$30 billion.  
This would have permitted Yukos to continue its operations and
attempt to pay off US$18 billion in debts through asset sales.

The vote came after bankruptcy manager Eduard Rebgun said Yukos
couldn't pay its debts in the time allotted by law.

Former Yukos CEO Steven Theede, whose resignation took effect
yesterday, has expected the court to approve the ruling based on
Mr. Eduard Rebgun's recommendation amidst management's
insistence on the firm's solvency.

Yukos disclosed it would make an appeal against yesterday's
bankruptcy decision.

                           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-
0775), 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: Court to Hear Rosneft's US$226.1-Bln Claim on Aug. 10
----------------------------------------------------------------
A Russian court has postponed a hearing into an US$8.4 billion
(RUB226.1 billion) claim against Yukos Oil Co. by state-owned
oil firm OAO Rosneft Oil until Aug. 10, Reuters reports citing
Interfax as its source.

Rosneft's claim could increase its standing in the list of Yukos
creditors, who voted last week to declare Yukos bankrupt,
Reuters relates.

According to the report, Rosneft has accused Yukos of stripping
value from its former Yuganskneftegaz unit, which Rosneft bought
in 2004.

Yukos creditors listed in the claims register include:

  Company                             Amount
  -------                             ------
  Russian Federal Tax Service         RUB353.8 billion
  Yuganskneftegaz                     More than RUB108.8 billion
  Tomskneft-BNK                       RUB12.3 billion
  Samaraneftegaz                      RUB1.85 billion
  Yukos-Moscow                        RUB933 million
  Siberia Service Company             RUB228.4 million
  Yukos-RM                            RUB131.3 million
  Yukos-EP                            RUB110 million
  Prikaspiiburneft                    RUB54.9 million
  Sibinteklizing                      RUB52 million
  Orelnefteprodukt                    RUB25.7 million
  Tyumenskaya Kompleksnaya            RUB24.1 million
  Geologorazvedochnaya Ekspeditsiya    
   Cargill Yug                        RUB18.8 million
  BDO Unicon Consulting               Around RUB12 million
  Yukos-Vostok Trade                  RUB4 million
  M-Reestr                            RUB3.5 million
  Progress insurance company          RUB2.3 million
  MGTS                                RUB586,000
  Center of Rescue and Environmental  Around RUB$90,000

Rosneft purchased Yukos' largest production unit,
Yuganskneftegaz, in December 2004 after the Russian government
seized the asset as payment for more than US$30 billion in tax
arrears for 2000-2003.

Rosneft acquired US$482 million of Yukos' debts from a 14-bank
consortium, led by Societe Generale, which is the remainder of a
US$1 billion loan owed by Yukos, in March.

On March 10, 2006, the bank group asked the Moscow Arbitration
Court to declare Yukos bankrupt in an attempt to recover the
remainder of the US$1 billion debt under outstanding loan
agreements.  

Creditors voted last week to liquidate what was once Russia's
biggest oil firm after rejecting a management rescue plan, which
values the company's assets at about US$30 billion.

As reported in TCR-Europe on July 27, Yukos's creditors, led by
the Federal Tax Service and Rosneft, will oversee the
liquidation and distribution of the company's assets.

                          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 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: Disputes FSA Ruling on Rosneft IPO at Court of Appeal
----------------------------------------------------------------
Yukos Oil Co. has filed a challenge at the British Court of
Appeal against the decision of U.K.'s Financial Services
Authority to allow rival group OAO Rosneft's shares to float on
the London Stock Exchange on July 19, Karl West writes for The
Herald.

Yukos has applied for permission to seek a judicial review on
decisions made by the FSA and the LSE as to whether they have
acted lawfully in allowing the shares to be listed in the London
market.  

Mr. West reports that the appellate court will rule on the
application after Yukos submits its skeleton argument by Aug. 7.

If the court approves Yukos's request, FSA, the LSE and Rosneft
will have a chance to ask the court to reject Yukos's claim and
uphold the lower court's earlier decision, Mr. West relates.

As reported in TCR-Europe on July 20, Mr. Justice Charles of the
U.K. High Court of Justice denied Yukos's request to block
Rosneft's shares from trading in London.

The full listing of Rosneft shares began its formal trading on
the LSE on July 19, a few days after its shares kicked off in
the Moscow exchange.

Yukos lawyers argued at the High Court that the IPO amounts to
money laundering under the Proceeds of Crime Act, because 70% of
the company's value came from the unlawful seizure and sale of
Yukos.  Yukos is claiming that the flotation would amount to the
sale of the stolen property.

Rosneft purchased Yukos' largest production unit,
Yuganskneftegaz, in December 2004 after the Russian government
seized the asset as payment for more than US$30 billion in tax
arrears for 2000-2003.

Rosneft will use proceeds from the IPO to pay off a US$7.5
billion syndicated bank loan that helped finance the state
buyback of a 10.7% stake in Gazprom.

                        About Rosneft

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

                        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.


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


CHEREPIVSKE: Sumi Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Economic Court of Sumi Region commenced bankruptcy
supervision procedure on LLC Cherepivske on May 11.  The case is
docketed under Case No. 6/48-06.

The Temporary Insolvency Manager is:

         Sergij Gajdukov
         Psilska Str. 4/9
         40022 Sumi Region
         Ukraine

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         LLC Cherepivske
         Radyanska Str. 8
         Cherepivka
         Burinskij District
         41753 Sumi Region
         Ukraine


DEMPURG-A: Court Names Mikola Usenko as Insolvency Manager
----------------------------------------------------------
The Economic Court of Sumi Region appointed Mikola Usenko as
Liquidator/Insolvency Manager for CJSC Dempurg-a (code EDRPOU
30561134).   

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 29.  The case is docketed
under Case No. 7/80-06.

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         CJSC Dempurg-A
         Topolyanska Str. 28
         40022 Sumi Region
         Ukraine


DISKUS: Court Names Vadim Osipenko as Insolvency Manager
--------------------------------------------------------
The Economic Court of Kyiv Region appointed as
Liquidator/Insolvency Manager for LLC Diskus (code EDRPOU
32206777).  He can be reached at:

         Vadim Osipenko
         Borisoglibska Str. 15-V
         Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
15/351-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 Diskus
         Moskovska Str. 7/25
         01010 Kyiv Region
         Ukraine


KRUPSKE: Court Names Igor Ponomaryov as Liquidator
--------------------------------------------------
The Economic Court of Sumi Region appointed Igor Ponomaryov as
Liquidator/Insolvency Manager for Agricultural LLC Krupske (code
EDRPOU 31593403).  He can be reached at:

         Igor Ponomaryov
         Lazarevskij Str. 15/2
         Konotop
         41615 Sumi Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 17.  The case is docketed
under Case No. 7/68-06.

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Krupske
         Krupske
         Konotop District
         41673 Sumi Region
         Ukraine


PARTEKS: Court Names Svitlana Lunkova as Insolvency Manager
-----------------------------------------------------------
The Economic Court of Kyiv Region appointed Svitlana Lunkova as
Liquidator/Insolvency Manager for LLC Parteks (code EDRPOU
30154020).  She can be reached at:

         Svitlana Lunkova
         Politbijtsiv Str. 5/47
         83054 Donetsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 31.  The case is docketed
under Case No. 43/322.

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 Parteks
         Koltsov Str. 1-A
         03194 Kyiv Region
         Ukraine


PODILLYA: Court Names Leonid Glivinskij as Liquidator
-----------------------------------------------------
The Economic Court of Hmelnitskij Region appointed Leonid
Glivinskij as Liquidator/Insolvency Manager for Agricultural LLC
Podillya (code EDRPOU 03378101).  He can be reached at:

         Leonid Glivinskij
         a/b 41
         Polonne
         30500 Hmelnitskij Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 19.  

The Economic Court of Hmelnitskij Region is located at:

         Nezalezhnosti Square 1
         29000 Hmelnitskij Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Podillya
         Vorobiyivka
         Polonne District
         Hmelnitskij Region
         Ukraine


PRILUKI' ETHER-OIL: Court Starts Bankruptcy Supervision
-------------------------------------------------------
The Economic Court of Chernigiv Region commenced bankruptcy
supervision procedure on OJSC Priluki' Ether-Oil Combine (code
EDRPOU 00383662) on May 17.  The case is docketed under Case No.
5/227 b.

The Temporary Insolvency Manager is:

         Viktor Cherevyak
         Sadova Str. 94/39
         Priluki
         17500 Chernigiv Region
         Ukraine

The Economic Court of Chernigiv Region is located at:

         Miru Avenue 20
         14000 Chernigiv Region
         Ukraine

The Debtor can be reached at:

         OJSC Priluki' Ether-Oil Combine
         Bosobrod Str. 95
         Priluki
         17500 Chernigiv Region
         Ukraine


SINTEKBUD': Court Names Vadim Bolejko as Liquidator
---------------------------------------------------
The Economic Court of Kyiv Region appointed Vadim Bolejko as
Liquidator/Insolvency Manager for LLC Industrial Company
Sintekbud (code EDRPOU 31922497).  He can be reached at:

         Vadim Bolejko
         Ahmatova Str. 14-B/136
         Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 1.  

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 Industrial Company Sintekbud
         Yaltinska Str. 5-B
         02099 Kyiv Region
         Ukraine


TAURUS AGROPROM: Court Names O. Sherban as Liquidator
-----------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. O. Sherban as
Liquidator/Insolvency Manager for LLC Taurus Agroprom (code
EDRPOU 32959381)

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 18.  The case is docketed
under Case No. 43/13.  

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 Taurus Agroprom
         Plehanov Str. 19
         02002 Kyiv Region
         Ukraine


TRANSAUTO-PLUS: Court Names Vadim Bolejko as Insolvency Manager
---------------------------------------------------------------
The Economic Court of Kyiv Region appointed Vadim Bolejko as
Liquidator/Insolvency Manager for LLC Transauto-Plus (code
EDRPOU 31517799).  He can be reached at:

         Vadim Bolejko
         Ahmatova Str. 14-B/136
         Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 1.  

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 Transauto-Plus
         Vasilenko Str. 7-A
         03124 Kyiv Region
         Ukraine


UNITED FINANCIAL: Kyiv Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on LLC United Financial Group (code EDRPOU
23528991) on May 23.  The case is docketed under Case No.
23/244-b.

The Temporary Insolvency Manager is:

         Denis Lihopyok
         a/b 37
         49000 Dnipropetrovsk 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 United Financial Group
         Moskovska Str. 7/26
         01010 Kyiv Region
         Ukraine


ZHVANETSKE REPAIR-TRANSPORT: Court Starts Bankruptcy Supervision
----------------------------------------------------------------
The Economic Court of Hmelnitskij Region commenced bankruptcy
supervision procedure on OJSC Zhvanetske Repair-Transport
Enterprise (code EDRPOU 03079054) on April 18.  The case is
docketed under Case No. 13/105-B.

The Temporary Insolvency Manager is:

         Sergij Shishkin
         Institutska Str. 17/3
         Hmelnitskij Region
         Ukraine

The Economic Court of Hmelnitskij Region is located at:

         Nezalezhnosti Square 1
         29000 Hmelnitskij Region
         Ukraine

The Debtor can be reached at:

         OJSC Zhvanetske Repair-Transport Enterprise
         Zhvanets
         Kamyanets-Podilskij District
         32365 Hmelnitskij Region
         Ukraine


* Standard & Poor's Assigns B+ Issuer Rating to Crimea Republic  
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' foreign
currency long-term issuer credit rating to the Autonomous
Republic of Crimea, a region in the south of the Republic of
Ukraine.  The outlook is stable.  At the same time, a
'uaA+' Ukraine national scale credit rating was assigned.
     
"The ratings on Crimea reflect low predictability of revenues
and generally low financial flexibility due to central
government control and the republic's high reliance on
government transfers," said Standard & Poor's credit analyst
Boris Kopeykin.

"Low wealth levels, combined with high infrastructure needs and
contingent liabilities also put pressure on the ratings.
Furthermore, there is a need to improve financial and
operational transparency."

The ratings are supported however by the republic's low debt
burden, its currently sound finances, and economic growth
supported by Crimea's favorable location on the Black Sea coast.
     
Revenue predictability and flexibility are low in Crimea, owing
to central government controls on taxes, and an evolving inter-
budgetary system.  The republic's strong reliance on government
transfers, which amounted to 60% of total revenues in 2005,
further exposes it to central government decisions.
Expenditure flexibility is also restricted, due to budgetary
pressures and regulations.  This is only compensated for to a
small extent by Crimea's status as an autonomous republic, which
gives it slightly more flexibility than other regions.
     
The republic did not have any debt at May 2006, and debt is not
expected to exceed a very modest 3%-5% of total revenues by the
end of 2006.  Future medium-term debt policy, however, may be
more aggressive, due to extensive infrastructure needs.  In any
case, debt is not expected to exceed a low 30% of total revenues
by 2008.
    
Standard & Poor's expects that future economic growth will allow
Crimea to maintain sound financial performance, with operating
surpluses above 10% of operating revenues in 2007-2008.

"Continued revenue growth, combined with additional investments
in infrastructure and improvements in transparency, could lead
to a positive rating action in the future," said Mr. Kopeykin.

"Setbacks in interbudgetary relations, however, leading to
worsening finances, may put the ratings under pressure."


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


ACTIVE FASCIA: Brings In Liquidator from HKM LLP
------------------------------------------------
John Philip Walter Harlow of HKM LLP was appointed Liquidator of
Active Fascia Supplies Limited on May 5.

HKM LLP -- http://www.hkm.co.uk/-- offers accountancy, business  
taxation, and insolvency advice.  In July 2004, HKM Harlow
Khandhia Mistry changed its business status to become a limited
liability partnership and is now known as HKM LLP.  

The company can be reached at:

         Active Fascia Supplies Limited
         144 West Avenue
         Wigston
         Leicestershire LE182FB
         United Kingdom
         Tel: 0116 288 3024


AEOLUS CDO: Fitch Rates EUR9.5 Million Class E Notes at B
---------------------------------------------------------
Fitch Ratings placed Aeolus CDO Limited's Series Colonnade I's
upcoming issue of EUR126 million credit-linked floating-rate
notes due 2066 expected ratings.  The transaction represents a
partially funded collateralized debt obligation securitization
of European mezzanine structured finance assets.

   -- EUR49,700,000 Class A secured notes: AAA;
   -- EUR25,000,000 Class B secured notes: AA;
   -- EUR12,500,000 Class C secured notes: A;
   -- EUR13,800,000 Class D secured notes: BBB-;
   -- EUR9,500,000 Class E secured notes: B; and
   -- EUR15,500,000 subordinated notes: not rated.

The final ratings are contingent on receipt of final documents
conforming to information already received.

The expected ratings are based on the credit quality of the
mezzanine asset-backed securities reference obligations, the
collateral arrangements, available credit enhancement, the
priorities of payment and the sound financial and legal
structure of the transaction.  Available excess spread will
serve as a first layer of loss protection.

Credit enhancement for the Class A notes in the form of
subordination totals 17%, and is provided by the Class B notes
(5.6%), the Class C notes (2.8%), the Class D notes (3.1%), the
Class E notes (2.1%) and the subordinated notes (3.4%).  Certain
structuring and administration fees will amortize over the first
six years of the transaction and will therefore reduce the
amount of excess spread available.

Morgan Stanley Capital Services Inc. will buy protection via a
credit default swap agreement on a EUR450 million reference
portfolio.  The EUR395 million expected portfolio at closing
consists of about 73 mezzanine ABS reference obligations with an
expected weighted average life of 4.7 years.

The remainder of the portfolio will be referenced during the
initial six-month ramp-up period, after which during the first
six years of the transaction, MS has the right to replenish but
not to substitute the reference portfolio.

MS's right to replenish will be subject to portfolio guidelines,
which include over-collateralization and interest coverage tests
as well as a VECTOR test incorporating the Fitch Default VECTOR
Model.  Additionally, the CDS counterparty may designate a
reference obligation as credit impaired and call a credit
impairment event if certain criteria are met.

MS will enter into the CDS with Aeolus, a limited liability
company incorporated in Jersey, Channel Islands.  Morgan Stanley
will guarantee MS obligations under the CDS.  Under the CDS, in
return for periodic premium payments based on the reference
obligations spreads, MS will receive from Aeolus any loss
payments following credit and credit impairment events on the
ABS reference portfolio.  Since the subordinated notes are
expected to be issued and are funded without credit enhancement,
they will represent the first loss piece.

Credit events under the CDS include bankruptcy, failure to pay
interest, failure to pay principal, a loss event, a rating
downgrade and a PIK reference obligation default.  These credit
and credit impairment events are subject to a cash settlement
process.  The expected ratings consider the adherence of the
credit events and the settlement process to Fitch's published
criteria.

To fund its obligations under the CDS agreements, Colonnade I
will issue a total of EUR126 million in credit-linked notes.  
Morgan Stanley will initially retained the EUR324 million of
remaining credit risk at closing through a senior CDS agreement.  

The notes will bear floating-rate interest of EURIBOR plus a
margin, which will be paid quarterly in arrears. The proceeds
from the issuance of the notes will initially be invested in the
Lehman Brothers Liquidity Funds PLC Lehman Euro Liquidity Fund.


ANLABY JEWELLERS: Joint Liquidators Take Over Operations
--------------------------------------------------------
Matthew Colin Bowker and David Antony Willis of Jacksons
Jolliffe Cork were appointed Joint Liquidators of Anlaby
Jewellers Limited on May 2.

Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- offers  
business recovery and insolvency work services.  The company
comprises certified and chartered accountants, licensed
insolvency practitioners and business turnaround consultants,
many having joined us from senior positions within National
firms.  It has offices in Doncaster, Harrogate, Hull,
Middlesbrough, Wakefield and York.  

Anlaby Jewellers Limited can be reached at:

         3 Wilson Street
         Anlaby
         Hull HU107AN
         United Kingdom
         Tel: 01482 655 557


BEAUTY CONCEPTS: Creditors Pass Winding Up Resolution
-----------------------------------------------------
Creditors of Beauty Concepts Limited passed on March 16 a
resolution to voluntarily wind up the company.

Peter Bridger of Bridgers was appointed Liquidator.

The company can be reached at:

         Beauty Concepts Limited
         40 Station Hill
         Reading RG1 1NF
         United Kingdom
         Tel: 0118 939 3300


BELMONT ENGINEERING: Brings In Gerald Edelman as Administrators  
---------------------------------------------------------------
Bernard Hoffman and Ian Yerrill of Gerald Edelman Business
Recovery were appointed joint administrators of Belmont
Engineering Services (U.K.) Limited (Company Number 4140135) on
June 30.

Gerald Edelman -- http://www.geraldedelman.com/-- is registered  
to carry on audit work by the Institute of Chartered Accountants
in England and Wales and is authorized and regulated by the
Financial Services Authority. Gerald Edelman Financial Solutions
Ltd is an appointed representative of Independent Solutions
Group Ltd who is regulated by the Financial Services Authority.

Headquartered in Swindon, United Kingdom, Belmont Engineering
Services (U.K.) Limited is engaged in general mechanical
engineering services.


BILL HARMAN: Creditors' Meeting Slated for August 9
---------------------------------------------------
Creditors of Bill Harman & Co. Limited (t/a Pathfinder
Recruitment Services) (Company Number 1123842) will meet at
10:00 a.m. on Aug. 9 at:

         Peters Elworthy & Moore
         Salisbury House
         Station Road
         Cambridge CB1 2LA
         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 Aug. 8 at:

         Shay Lettice
         Administrator
         Peters Elworthy & Moore
         Salisbury House
         Station Road
         Cambridge
         Cambridgeshire CB1 2LA
         United Kingdom
         Tel: 01223 362333
         Fax: 01223 461424
         E-mail: slettice@pem.co.uk


BODY SHOP: Hires Vantis as Joint Administrators
-----------------------------------------------
Geoffrey Paul Rowley and Sidney Hopper of Vantis plc were
appointed joint administrators of Body Shop Developments Limited
(Company Number 03402248) on June 29.

Headquartered in West Sussex, United Kingdom, Vantis plc --
http://www.vantisplc.com/-- provides accounting, business and  
tax advisory services in the United Kingdom.

Body Shop Developments Limited can be reached at:

         Unit 9/11
         Lichfield Trading Estate
         Lagrange
         Tamworth
         Staffordshire B79 7XD
         United Kingdom
         Tel: 0121 355 8220


BUILDLINK UK: Begins Liquidation Procedure
------------------------------------------
Buildlink (U.K.) Limited is liquidating its assets after
creditors proved that the company could no longer continue its
operations due to liabilities.

Simon Gwinnutt was appointed Liquidator.

The company can be reached at:

         Buildlink (U.K.) Limited
         Unit 1B
         Windmill Avenue
         Woolpit Business Park
         Woolpit
         Bury St. Edmunds
         Suffolk IP309UP
         United Kingdom
         Tel: 01359 242 432
         Fax: 01359 242 239
         Web: http://www.builders-tools.near2.me.uk/
              http://www.suffolkconservatives.com/


CHAMART INT'L: Names Donald Bailey Liquidator
---------------------------------------------
Donald Bailey of Begbies Traynor was appointed Liquidator of
Chamart International Limited on April 24.

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

Chamart International Limited can be reached at:

         Chamart House
         Haigh Avenue
         Stockport
         Cheshire SK4 1NU
         United Kingdom
         Tel: 0161 480 9900
         Fax: 0161 480 9955


DIRECT CONSUMABLES: Taps Paul J. Fleming to Liquidate Assets
------------------------------------------------------------
Paul J. Fleming, of Parkin S. Booth & Co. was appointed
Liquidator of Direct Consumables (U.K.) Limited on May 9.

Parkin S. Booth & Co -- http://www.parkinsbooth.co.uk/-- is a  
medium-sized firm with particular expertise in its own field.  
Dealing entirely with insolvency matters, the firm does not
undertake any audit or taxation work.

Direct Consumables (U.K.) Limited can be reached at:

         Unit 43
         Price Street Business Centre
         Price Street
         Birkenhead
         Merseyside CH414JQ
         Tel: 0151 652 9030
         Fax: 0151 652 2355
         Web: http://www.foreverpromotions.com/


DJB PASSPORTS: Creditors Opt to Voluntarily Liquidation
-------------------------------------------------------
Creditors of DJB Passports & Visas Limited opted on May 9 to
place the company into voluntary liquidation.

John Kelmanson and Elias Paourou of The Kelmanson Partnership
were appointed Joint Liquidators.

The company can be reached at:

         DJB Passports & Visas Limited
         4-24 Britannia Street
         London WC1X9JD
         United Kingdom
         Fax: 020 7278 5043


EUROTUNNEL GROUP: Court to Rule on Creditor Protection Today
------------------------------------------------------------
The Commercial Court of Paris will decide today whether to grant
Eurotunnel Group creditor protection pursuant to the French law
"procedure de sauvegarde", after renewed talks with bondholders
to restructure a GBP6.2 billion debt failed.  The group filed
the petition on July 13.

"We are working, and we are advancing," Nina Mitz, a spokeswoman
for The Association of Eurotunnel's Secured Bondholders (ARCO)
told Reuters.  "There have only been two meetings, and we are
ready to continue our discussions under the auspices of the
court," Ms. Mitz added.

ARCO represents 68% of Eurotunnel's outstanding GBP1.9 billion
bonds and notes.

As previously reported in TCR-Europe Eurotunnel pointed out that
the restructuring of its debt has been a problem between
creditors ever since it proposed a management-backed rescue plan
with Goldman Sachs Group Inc., Macquarie Bank Ltd. and Barclays
PLC.

The current negotiations led by the company have now given rise
to an implicit consensus that:

   -- the sustainable level of debt is approximately GBP2.9
      billion; and

   -- the current shareholders must benefit from accretion
      measures and retain a significant proportion of the
      equity.

                  Restructuring Proposals

Eurotunnel had turned down, on June 27, a 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, aimed 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 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, which represents the group's senior
creditors.  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.

                        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.

                        Company Crisis

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 faced
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.


FISHERS LIMITED: Appoints McTear Williams as Administrators
-----------------------------------------------------------
Andrew McTear and Chris Williams of McTear Williams & Wood were
appointed joint administrators of Fishers (Norwich) Limited
(Company Number 00428512) on July 4.

The administrators can be reached at:

         McTear Williams & Wood
         De Vere House
         90 St Faiths Lane
         Norwich
         Norfolk NR1 1NE
         United Kingdom
         Tel: 01603 877540
         Fax: 01603 877549
         E-mail: chriswilliams@mw-w.com  

Fishers (Norwich) Limited can be reached at:

         Unit 3 Woodside Business Park
         Thetford Road
         Ingham
         Bury St. Edmunds
         Suffolk IP31 1NR
         United Kingdom
         Tel: 01603 401 002
         Fax: 01284 729 178


FOXHEATH PROPERTIES: Confirms Joint Liquidators' Appointment
------------------------------------------------------------
Creditors of Foxheat Properties Limited confirmed the
appointment of Jason James Godefroy and Paul John Clark of
Menzies Corporate Restructuring as Joint Liquidators on May 3.

Menzies Corporate Restructuring -- http://www.menzies.co.uk/--  
is a member of Moores Rowland International, an association of
independent accounting firms throughout the world with some
20,800 partners and staff, operating from 628 offices in 92
countries.  MRI, which is ranked 8th amongst the leading
international accounting associations, achieved global revenues
of US$1,800 million in 2003.

Foxheath Properties Limited can be reached at:

         88A High Street
         Billericay
         Essex CM129BT
         United Kingdom
         Tel: 01277 627 222


GUNNERSWIN LTD: Hires Liquidator from Haines Watts BRI
------------------------------------------------------
Stephen Lawrence Harfitt of Haines Watts BRI was appointed
Liquidator of Gunnerswin Limited on April 27.

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

Gunnerswin Limited can be reached at:

         31-33 Kew Road
         Richmond
         Surrey TW9 2NQ
         United Kingdom
         Tel: 020 8332 6222


HERBALIFE INT'L: S&P Rates US$300-Mln Credit Facility at BB+
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its bank loan and
recovery ratings to Herbalife International Inc.'s US$300
million bank financing.  

Herbalife International Inc. is the borrower under the facility,
which is comprised of a US$200 million six-year first-lien term
loan and a US$100 million six-year first-lien revolving credit
facility.
     
The first-lien loans are rated 'BB+', the same as the corporate
credit rating, with recovery ratings of '3', indicating the
expectation of meaningful (50%-80%) recovery of principal in the
event of default.

Proceeds from the facilities will be used to redeem the
company's US$165 million 9.5% notes due 2011 and pay the related
accrued interest.
     
All obligations under the credit facility are unconditionally
guaranteed by Herbalife Ltd., the parent company, and its direct
and indirect wholly owned subsidiaries except certain non-U.S.
subsidiaries.  The facility is secured by a first-priority
security interest in substantially all present and future
tangible and intangible assets of the company, including a
pledge of 100% of the stock of domestic subsidiaries and 66% of
the stock of non-U.S. subsidiaries.

                        Ratings List

Herbalife International Inc.
  Corporate credit rating                 BB+/Stable/--

Ratings Assigned
  US$200 mil first-lien term loan         BB+
   Recovery rating                        3
  US$100 million first-lien credit fac    BB+
   Recovery rating                        3


HST FINANCIAL: Appoints PwC as Joint Administrators
---------------------------------------------------
Michael John Andrew Jervis and Dan Yoram Schwarzmann of
PricewaterhouseCoopers LLP were appointed joint administrators
of HST Financial Limited (Company Number 04193250) on July 3.

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

Headquartered in Macclesfield, United Kingdom, HST Financial
Limited is an independent financial advisor.


INCENTIVE & CONFERENCE: Creditors' Meeting Slated for Aug. 4
------------------------------------------------------------
Creditors of Incentive & Conference Centre Limited (Company
Number 2780925) will meet at 11:00 a.m. on Aug. 4 at:

         39 Hatton Garden
         London EC1N 8EH
         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 Aug. 3 to:

         Stephen John Evans
         Joint Administrator
         Pure Recovery LLP
         39 Hatton Garden,
         London EC1N 8EH
         United Kingdom
         Tel: 020 7404 7999


INCO LTD: Teck Cominco Raises Cash & Stock Bid
----------------------------------------------
Teck Cominco Limited revised its cash and share offer to acquire
all the outstanding shares of Inco Limited (TSX, NYSE:N).  

Under the revised offer, Inco shareholders will receive, subject
to proration, CDN$82.50 per Inco share in cash, or 1.1293 Teck
Cominco Class B subordinate voting shares plus CDN$0.05 per Inco
share.  The revised offer represents CDN$40 in cash and 0.5821
of a Teck Cominco Class B subordinate voting share per Inco
share at full proration.  The expiry time for the revised Teck
Cominco offer is Aug. 16, 2006, at midnight (Toronto time).

"We believe that our revised offer will be very attractive to
Inco shareholders," Don Lindsay, Teck Cominco's President and
Chief Executive Officer, said.  "It is also consistent with our
stated policy that we will take a disciplined approach to this
transaction.  The increased cash component crystallizes
substantial value for Inco shareholders who choose that option.  
The lower number of Teck Cominco shares offered preserves more
value for shareholders who participate in the great potential of
the combined company, including existing Teck Cominco
shareholders.  Inco shareholders have a choice between the
certainty and value of our offer and the highly conditional
offer by Phelps Dodge, which will not close until September, at
the earliest, if at all.  We have all regulatory approvals we
require to complete our offer on August 16.  Inco shareholders
should tender their shares to our offer as soon as possible."

Teck Cominco will pay up to a maximum of CDN$9.1 billion in cash
and will issue up to 132.3 million Teck Cominco Class B
subordinate voting shares pursuant to the revised offer.  This
represents an increase in the cash component of the offer of
CDN$2.7 billion or 43%, and a decrease of 10.7 million shares or
7.5% in comparison to Teck Cominco's original offer.  Teck
Cominco will fund the cash portion of the offer out of its
CDN$3.6 billion of cash on hand and a committed term loan
facility.

All other terms of the Teck Cominco offer are unchanged.  Teck
Cominco's offer was conditional on Inco's announced takeover bid
for Falconbridge having been withdrawn or terminated and on the
Inco/Falconbridge support agreement having been terminated in
accordance with its terms.  On July 28, 2006, Falconbridge
reported that the support agreement had been terminated as a
result of the July 27, 2006 expiry of the Inco offer, fulfilling
this condition of our offer.

"This clears the way for our offer to proceed directly to Inco
shareholders," Mr. Lindsay said.  "As we announced on July 21,
our offer remains open until Aug. 16, 2006.  In the meantime, we
continue to assess all relevant developments and market
conditions solely in the context of determining what makes sense
for Teck Cominco shareholders.  We understand the real value
that a combination of Teck Cominco and Inco could mean for our
shareholders, but it is only one of many opportunities that we
are considering.  If the market determines that Inco is worth
more than we are prepared to pay, we will accept that.   We will
not be drawn into a bidding war that would be inconsistent with
our commitment to value for Teck Cominco shareholders."

Teck Cominco expects to mail a formal notice of variation to all
Inco shareholders on or before Aug. 3, 2006.

                       About Teck Cominco

Headquartered in Vancouver, Canada, Teck Cominco Limited (TSX:
TCK.A; TCK.B; NYSE: TCK) -- http://www.teckcominco.com/-- is a  
diversified mining company.  The Company focuses in the
production of zinc and metallurgical coal and also produces
copper, gold and specialty metals.

                         About Inco Ltd.

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

                       *    *    *

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.


INTERSPACE LIMITED: Names Surjit Singla as Administrator
--------------------------------------------------------
Surjit Kumar Singla of Singla & Co. was named administrator of
Interspace Limited (Company Number 03708150) on July 3.

The administrator can be contacted at:

         Singla & Co.
         12 Devereaux Court
         Strand
         London WC2R 3JL
         United Kingdom
         Tel: 020 7353 6922
         Fax: 020 7583 4126

Interspace Limited can be reached at:

         Gatehouse
         1-3 St. John's Square
         London EC1M 4DH
         United Kingdom
         Tel: 020 7251 6972
         Fax: 020 7251 6868


INVENSYS PLC: 93.88% of Shareholders Tender 6.5% Notes Due 2010
---------------------------------------------------------------
Invensys PLC reveals its acceptance and the result of its cash
tender offer for any and all of its outstanding US$200,000,000
6.5% notes due 2010, which were issued by Siebe, PLC, the former
name of Invensys.

As of July 28, US$187,750,000 aggregate principal amount of the
Notes had been validly tendered in connection with the offer,
representing approximately 93.88% of the outstanding notes.

Invensys accepted for payment all notes validly tendered and not
validly withdrawn on or before July 28.  The company will make
payment on Aug. 2.

Deutsche Bank AG, London Branch acted as exclusive dealer
manager in connection with the offer.

           Completes Sale of Invensys Building Systems

Invensys PLC completed on July 28, the sale of its Invensys
Building Systems (formerly Advanced Building Systems) operations
in the USA and Asia Pacific to Schneider Electric S.A. for a
gross cash consideration of US$296 million.

                        About Invensys Plc

Based in London, United Kingdom, Invensys Plc --
http://www.invensys.com/-- is a global automation, controls and  
process solutions Group operating in more than 60 countries
worldwide.  The company operates through six units: Controls,
Process Systems, Rail Systems, APV, Wonderware, and Eurotherm.
For the 12 ended March 31, 2006, Invensys had GBP2.5 billion in
total revenues from continuing operations.  

                        *     *     *

As reported by TCR-Europe on July 31, Moody's Investors Service
upgraded the corporate family rating to Ba3 from B1 following
the expected repayment of around GBP410 million of net debt
using proceeds from a GBP341 million rights issue and from the
anticipated closing of the sale of Invensys Building Systems in
the U.S. and Asia Pacific to Schneider Electric S.A. for
GBP157 million.  

Standard & Poor's Ratings Services revised its outlook on
Invensys Plc to stable from negative, reflecting an improvement
in the group's near-term prospects, although significant credit
risks remain.  At the same time, all ratings on the group,
including the long-term 'B+' corporate credit rating, were
affirmed.


M.C.S. SUSPENDED: Appoints Joint Liquidators to Wind Up Business
----------------------------------------------------------------  
Robert Valentine and Mark Reynolds of Valentine & Co. were
appointed Joint Liquidators of M.C.S Suspended Ceilings Limited
on May 4.

The company can be reached at:

         M.C.S. Suspended Ceilings Limited
         6 Kingsley Walk
         Grays
         Essex RM164HH
         United Kingdom
         Tel: 01375 396 491


MAINTENANCE ONE: Names Administrators from Begbies Traynor
----------------------------------------------------------
Vivian Murray Bairstow, David Paul Hudson and Timothy John
Edward Dolder of Begbies Traynor (South) LLP were appointed
joint administrators of Maintenance One Services Limited
(Company Number 03475372) on July 3.

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

Headquartered in Milton Keynes, United Kingdom, Maintenance One
Services Limited is engaged in supermarket refrigeration/freezer
maintenance.


MILLFIELD ATLAS: Hires Joint Administrators from PwC
----------------------------------------------------
Michael John Andrew Jervis and Dan Yoram Schwarzmann of
PricewaterhouseCoopers LLP were appointed joint administrators
of Millfield Atlas Limited (Company Number 03455266), Millfield
Partnership Limited (Company Number 03472816), Addiscombe Group
Limited (Company Number 02850080) and Millfield Management
Services Limited (Company Number 03521953) on July 3.

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

Headquartered in Croydon, United Kingdom, Millfield Atlas
Limited, Millfield Partnership Limited, Addiscombe Group Limited
and Millfield Management Services Limited  --
http://www.millfield-partnership.co.uk/-- are independent  
financial advisors.


MONKEY-BOY LEISURE: Creditors Resolve to Voluntary Liquidation
--------------------------------------------------------------
Creditors of Monkey-Boy Leisure Limited resolved on May 9 to
voluntarily liquidate the company's assets.

Jonathan Elman Avery-Gee of Kay Johnson Gee was appointed
Liquidator.

The company can be reached at:

         Monkey-Boy Leisure Limited
         4 Oxford Street
         Nottingham NG1 5BH
         United Kingdom
         Tel: 079 7029 0555


NORTHERN FOODS: Sells NFT Distribution for GBP51.2 Million
----------------------------------------------------------
Northern Foods reached an agreement for the proposed sale of the
business and assets of NFT Distribution, its chilled
distribution business, to a new group formed through a
management buyout and backed by Phoenix Equity Partners.

Proceeds of the sale will be GBP51.2 million, comprising GBP44.5
million cash on completion together with a loan note of GBP6.7
million payable to Northern Foods not later than 12 months after
completion.  These will also be subjected to a final adjustment
for the closing working capital on completion.  

The new company will assume the name of NFT Distribution
Holdings Ltd. and completion is expected within 14 days
following employee consultation and issue of new transport
operation licenses.

NFT was established by Northern Foods in 1979 and provides
chilled distribution services to the food sector.  The gross
asset value of the transaction at April 1, 2006 is GBP44.5
million.  Turnover for the year ended April 1, 2006 was GBP111.4
million, with an operating profit of GBP3.9 million.

Approximately 89% of the business is with third party customers.
The majority of the proceeds will be used to reduce debt, with a
payment of GBP10 million to be made to the Northern Foods
Pension Scheme.

The disposal of NFT is the first sale under Northern Foods'
wider disposal program that was announced on May 31.  As part of
a radical refocusing of the company, Northern Foods is
progressing the disposal of businesses currently representing
approximately 40% of group revenue in order to concentrate on
fewer, core categories.  Proceeds of the disposals will be used
to reduce borrowings and the pension deficit as well as to
invest for growth.

"[This] announcement represents a very positive first step in
our disposal program and we are delighted to have reached a
successful conclusion to this sale.  Distribution is not core to
Northern Foods going forward but this is a great business and we
wish NFT and its employees well," Pat O'Driscoll, Chief
Executive of Northern Foods commented.

"It's with great pleasure that we are able to take on the
running of NFT as a separate business and with an existing
strong customer base.  The position of the company as the market
leader in primary chilled distribution affords us an excellent
opportunity to not only maintain our high levels of service and
delivery, but also develop the business into new areas," David
Frankish, Managing Director of NFT disclosed.  

Mr. Frankish added, "The management buyout and independence of
NFT represents an exciting opportunity for the team and we are
delighted to be working alongside Phoenix as they have a proven
pedigree in supporting and developing medium sized U.K. based
businesses."

                        About the Company

Headquartered in Leeds, Northern Foods PLC --
http://www.northern-foods.co.uk/-- is one of U.K.'s leading  
food producers with a turnover of GBP1.5 billion and over 22,000
employees based in sites across the U.K. and Ireland.

Northern Foods began restructuring and refocusing its business
in Autumn 2003.  It has launched a comprehensive strategic
review of the business, established a new management team, and
simplified its business structure and factory organization.

                           *    *    *

As reported by TCR-Europe on June 5, Northern Foods PLC reported
GBP5 million in net loss on GBP1.44 billion in revenues for the
52-weeks ended April 1, 2006, compared with GBP22.8 million in
net profit on GBP1.42 billion in revenues for the same period in
2005.

At April 1, 2006, Northern Foods had GBP928.2 million in total
assets, GBP776.1 million in total liabilities and GBP152.1
million in shareholders' equity.


OFFICIAL MAP: A. Clifton Leads Liquidation Procedure
----------------------------------------------------
A. Clifton of DTE Leonard Curtis was appointed Liquidator of The
Official Map Company Limited on May 3.

DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax  
consultancy, company secretarial services, corporate finance,
corporate recovery, turnaround, forensic accounting, financial
services and insurance & risk management.

The Official Map Company Limited can be reached at:

         34 East Street
         Colchester
         CO1 2TP
         United Kingdom
         Tel: 01206 798 181


SCOTTISH RE: Hires Goldman Sachs & Bear Stearns for Advice
----------------------------------------------------------
Scottish Re Group Limited (NYSE: SCT) has hired Goldman Sachs
and Bear Stearns to "assist with evaluating strategic
alternatives and potential sources of capital."  

The announcement came as the global life reinsurance company
disclosed a projected US$130 million second quarter loss and the
resignation of its President and CEO.  

In June, Jeffrey P. Hughes joined Scottish Re's Board of
Directors.  Mr. Hughes was elected to the Board at a meeting
held on June 22, following the resignation of William Spiegel.  
Mr. Hughes is Vice Chairman and a founding partner of The
Cypress Group, a New York based private equity firm and also the
Company's largest shareholder.  

Mr. Hughes, Scottish Re commented at the time, has a lengthy
record of business accomplishments and many years of board
experience across a range of industries.

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/-- is a  
global life reinsurance specialist.  Scottish Re has operating
companies in Bermuda, Charlotte, North Carolina, Grand Cayman
Dublin, Ireland, and Windsor, United Kingdom.  At March 31,
2006, the reinsurer's balance sheet showed US$12.2 billion
assets and US$10.8 billion in liabilities.  

                           *    *    *

On July 31, 2006, Fitch Ratings cut Scottish Re's issuer default
rating to BBB from A-, and lowered its insurer financial
strength rating one notch to A-.  Fitch rates the reinsurer's
hybrid and preferred securities at BB+.  


SCOTTISH RE: Moody's Downgrades Sr. Unsecured Debt Rating to Ba2
----------------------------------------------------------------
Following Scottish Re Group Limited's profit warning, Moody's
Investors Service has downgraded to Ba2 from Baa2 the senior
unsecured debt rating of Scottish Re.  

The rating agency also downgraded to Baa2 from A3 the insurance
financial strength ratings of the company's core insurance
subsidiaries, Scottish Annuity & Life Insurance Company (Cayman)
Ltd. and Scottish Re (U.S.), Inc.  All debt and IFS ratings of
Scottish Re remain on negative outlook.

On July 31, Scottish Re announced it expects to report a net
operating loss available to ordinary shareholders of
approximately US$130 million for the second quarter ended
June 30.  As a result Moody's commented that the company will
not meet the earning's expectations for the company's ratings as
previously outlined by Moody's.

The rating agency noted that the company has announced a series
of "one time charges" and accounting adjustments over a period
of multiple quarters.  Despite a number of recent investments in
personnel and systems to improve risk management and internal
controls at the company, the recent earnings announcement
diminishes Moody's confidence that there will not be further
adverse developments over the near to medium term.

The rating agency also noted that the company will be challenged
to write business following the recent earnings' misses, thereby
reducing future earnings growth.  However, the company's
liquidity profile and capital position appear adequate over the
near to medium term.

The company also announced that Scott E. Willkomm has resigned
his position as President and Chief Executive Officer.  Moody's
commented that the recent events at the company suggest problems
with the quality of its governance.  The departure of the CEO,
who had been with Scottish Re since 2000 as president and CFO,
raises concerns about the board's CEO and senior executive
succession-planning efforts.

Consistent with Moody's practice of widening the notching
between the IFS ratings and debt ratings at the holding company
as a company's ratings move down, the debt ratings were
downgraded three notches as opposed to two for the IFS ratings.

Ratings downgraded with a negative outlook:

Scottish Re Group Limited:

   -- Senior Unsecured, to Ba2 from Baa2;
   -- Senior Unsecured Shelf, to (P)Ba2 from (P)Baa2;  
   -- Subordinate Shelf, to (P)Ba3 from (P)Baa3;
   -- Junior subordinate Shelf, to (P)B1 from (P)Ba1;
   -- Preferred Stock, to B1 from Ba1; and
   -- Preferred Shelf, to (P)B1 from (P)Ba1.

Scottish Holdings Statutory Trust II

   -- Preferred Shelf, to (P)Ba3 from (P)Baa3

Scottish Holdings Statutory Trust III

   -- Preferred Shelf, to (P)Ba3 from (P)Baa3

Scottish Annuity & Life Ins Co. (Cayman) Ltd.

   -- IFSR, to Baa2 from A3

Premium Asset Trust Series 2004-4

   -- Senior Secured, to Baa2 from A3

Scottish Re (U.S.), Inc.

   -- IFSR, to Baa2 from A3

Stingray Pass-Through Trust

   -- Senior Secured, to Baa2 from A3.

On Oct. 18, 2004, Moody's affirmed the ratings of Scottish Re
and its subsidiaries following the announcement that Scottish Re
had agreed to acquire the individual life reinsurance business
of ING Re.  The outlook for the ratings was lowered to negative
from stable at that time.

Scottish Re Group Limited is a Cayman Islands company with
principal executive offices located in Bermuda; it also has
significant operations in Charlotte, NC, Denver, CO and Windsor,
England.  On March 31, Scottish Re reported assets of US$12.3
billion and shareholders' equity of US$1.2 billion.

Moody's insurance financial strength ratings are opinions on the
ability of insurance companies to repay punctually senior
policyholder claims and obligations.


SPICE ROUTE: Brings In Administrators from Hurst Morrison
---------------------------------------------------------
Paul William Ellison and Robert Christopher Keyes of Hurst
Morrison Thomson Corporate Recovery LLP were appointed joint
administrators of Spice Route Limited (Company Number 04286096)
on July 3.

The administrators can be contacted at:

         Hurst Morrison Thomson Corporate Recovery LLP
         5 Fairmile
         Henley on Thames
         Oxfordshire RG9 2JR
         United Kingdom
         Tel: +44 (0) 1491 579866
         Fax: +44 (0) 1491 573397
         E-mail: hmt@hmtgroup.co.uk

Headquartered in Windsor, United Kingdom, Spice Route Limited --
http://www.spice-route.co.uk/-- features the unique blend of  
traditional Indian cuisine with contemporary influence.  The
restaurant was launched on Dec. 3, 2001 by celebrated
broadcaster and author, Mridula Baljekar.


VALENTIA TELECOMMUNICATIONS: S&P Cuts Corp. Credit Rating to BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Valentia Telecommunications upc to
'BB-' from 'BB+' following a vote by the shareholders of
Valentia's owner, eircom Group PLC, to accept an offer from
BCM Ireland Holdings Ltd., a newly incorporated company funded
by Babcock & Brown Capital Ltd. and certain affiliates, and
eircom ESOP Trustee Ltd. to purchase the company for an
enterprise value representing EUR4.8 billion.  The outlook is
stable.

At the same time Standard & Poor's assigned its 'BB-' long-term
corporate credit rating to BCMIH, the future owner of eircom and
its parent company BCM Ireland Finance Ltd.  The EUR3.3 billion
senior secured facilities borrowed by BCMIH have been assigned a
'BB-' rating, the same as the corporate credit rating, with a
recovery rating of '2', indicating Standard & Poor's expectation
of substantial recovery of principal (80%-100%) for senior
lenders in the event of a payment default.  

A EUR200 million second-lien loan has been rated 'B' with a
recovery rating of '5', indicating a negligible recovery of
principal (0%-25%) in the event of a payment default.  Finally,
Standard & Poor's assigned a 'B' issue credit rating to the
proposed EUR500 million floating-rate notes issue due 2016 to be
issued by BCM Ireland Finance Ltd.
     
The issue ratings on Valentia's existing EUR550 million senior
unsecured notes and eircom Funding upc's EUR285 million and
US$250 million senior subordinated notes have been lowered to
'B' from 'BB-', reflecting the lowering of the corporate credit
rating and structural and legal subordination.  These notes and
Valentia's outstanding bank EUR1.4 billion bank facility will be
refinanced as part of the transaction.

All ratings have been removed from CreditWatch with negative
implications, where they were placed on Feb. 22, following
eircom's announcement that it had received a preliminary
approach from Babcock & Brown Capital, which may or may not have
led to an offer being made for the group.
     
The downgrade reflects the material weakening of Valentia's
credit quality as a result of the takeover by BCMIH.  The
revised capital structure includes debt of more than
EUR3.8 billion, which amounts to an increase of EUR1.4 billion
from current levels, and the consequent higher interest payments
will constrain the group's future cash flow generation.  

Furthermore, free operating cash flow generation (FOCF)-which
was EUR165 million for the year ended March 31, will be
negatively impacted in the early years of the business plan by
the need for higher capital expenditures as eircom's mobile arm,
Meteor Mobile Communications Ltd. builds out its network and as
eircom makes investments in its growing broadband business.

"These developments will take place in an increasingly
competitive and tightly regulated market," said Standard &
Poor's credit analyst Michael O'Brien, "and as a result, BCMIH
and the eircom group have little ratings flexibility for
operating underperformance."

                           *********

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

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

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

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

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

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


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