TCREUR_Public/060804.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

             Friday, August 4, 2006, Vol. 7, No. 154    

                            Headlines


A U S T R I A

ETI: Vienna Court Orders Closing of Business
FCP: Claims Registration Period Ends August 8
FRANZ BRANDL: Korneuburg Court Orders Closing of Business
G-TRUCKS: First Creditors' Meeting Slated for August 7
GRUENTHAL ANDREAS: Claims Registration Period Ends August 8

HERTA GLUECK: Vienna Court Orders Closing of Business
IMMO & LOG: Claims Registration Period Ends August 8
MD: Claims Registration Period Ends August 8
PERKAL & PARTNER: Claims Registration Period Ends August 8


F I N L A N D

METSO CORP: Inks Supply Pact with Russian Copper Mine
METSO CORP: JP Morgan Hikes Paid Up Share Capital to 5.03%
METSO CORP: Names Kalle Reponen SVP for Strategy and M&A


G E R M A N Y

ACA AACHENER: Claims Registration Ends August 20
AEK GMBH: Claims Registration Ends August 11
ANSWER GMBH: Claims Registration Ends August 10
AS-LEUCHTEN: Claims Registration Ends August 8
B BURAGO: Claims Registration Ends August 10

BAUPARTNER BAUGESELLSCHAFT: Creditors' Meeting Set for Aug. 11
EUROBIZZ HOLDING: Claims Registration Ends August 14
KRUG TRANSPORTE: Claims Registration Ends August 7
LUENER LANDHAUS: Claims Registration Ends August 21
STRUCKMEIER-FLIESENGROSSHANDEL: Claims Registration Ends Aug. 24


I T A L Y

KNOLL INC: Earns US$14.8 Million in Second Quarter 2006
KNOLL INC: Stockholders Launch 9.1-Mln Secondary Shares Offer
PARMALAT SPA: Faces Inclusion in U.S. Class Action


K A Z A K H S T A N

AEN: Creditors Must File Claims by Sept. 1
ALKOM: Creditors Must File Claims by Sept. 1
ASELL TELEKOM: Creditors Must File Claims by Sept. 1
BIZNES SENTR: Proof of Claim Deadline Slated for Sept. 1
KAZFOSFOTREID: Proof of Claim Deadline Slated for Sept. 1

M & G: Claims Registration Ends Sept. 1
RAWOL: Claims Registration Ends Sept. 1
SHAH & AKTAU: Creditors' Claims Due Sept. 1
STROISNABSERVIS: Creditors' Claims Due Sept. 1
TRANSSTROI: Creditors' Claims Due Sept. 1


K Y R G Y Z S T A N

CHUI BISHKEK: Public Auction Scheduled for Aug. 18


N E T H E R L A N D S

GETRONICS NV: Moody's Junks EUR100-Mln Sr. Unsecured Bonds


P O L A N D

NETIA SA: Merges with Three Wholly Owned Subsidiaries
NETIA SA: Third Avenue Hikes Equity Stake to 12.09%


R U S S I A

CHEMICAL PRODUCT: Court Names N. Sotneva as Insolvency Manager
GRAIN PRODUCT: Court Starts Bankruptcy Supervision
KHABAROVSKIY METAL: Court Starts Bankruptcy Supervision
MAGADANSKIY LEATHER-FUR: G. Chmutina to Manage Assets
METSO CORP: Inks Supply Pact with Russian Copper Mine

OCEAN-PRIM: Khabarovsk Court Commences Bankruptcy Supervision
OSINSKOYE BEER: Court Names A. Potrachkov as Insolvency Manager
SEVERSTAL: Hires Investment Banks for London Stock Listing
SOKOL: Undergoes External Management Procedure
SPITAK: Amur Court Starts Bankruptcy Supervision

TARASOVSK-AGRO-PROM-SNAB: N. Lemaev to Manage Assets
TIMBER MILL 34: Court Starts Bankruptcy Supervision
USTYANSKOYE GRAIN: Court Starts Bankruptcy Supervision
VYATSKOYE ZARECHYE: M. Lopatina to Manage Assets
YUG-STEEL-SERVICE: A. Semenyakov to Manage Assets

YUKOS OIL: Founder's Camp Denounces Russian Bankruptcy Order
YUSOVSKAYA: Court Names A. Kolyshnitsyn as Insolvency Manager


U K R A I N E

AS-MARKET: Kyiv Court Names A. Agafonov as Liquidator
AVAL-INVEST: Court Names Yurij Tukman as Insolvency Manager
AZOT: Kyiv Court Commences Bankruptcy Supervision
BUDYANSKIJ FAYANS: Court Starts Bankruptcy Supervision
DARNITSYA: Kyiv Court Starts Bankruptcy Supervision

HARCHOKOMBINAT: Court Names Sergij Vasiltsov as Liquidator
KELMENETSKIJ' SUGAR: Volodimir Zavalnuk to Liquidate Assets
KRIVBASRUDBUD: Court Starts Bankruptcy Supervision
ORIHIVSKE BURYAKOGOSPODARSTVO: Bankruptcy Supervision Starts
TAS-KOMMERTZBANK: Fitch Assigns B- Issuer Default Ratings

UKRAINA: Court Starts Bankruptcy Supervision


U N I T E D   K I N G D O M

A HEAD: Creditors Pass Winding Up Resolution
A1 TM LIMITED: Hires Geoffrey Martin as Joint Administrators
BACCHUS 2006-2: S&P Rates EUR12.3-Mln Class E Notes at BB
BRISTOL INNS: Appoints Joint Administrators from BDO Stoy
BRITISH AIRWAYS: Iberia Lineas Open for Further Integration

BRITISH AIRWAYS: Sells 14.6% Stake in WNS Unit for US$96 Million
CITIZEN SECURITY: Appoints Robert Cook as Administrator
CORNERSTONE TITAN: Fitch Rates GBP3.5 Million Class J Notes at B
DACAL ENGINEERING: Financial Woes Prompt Voluntary Liquidation
DAVISON ENGINEERING: Names Edwin James Kirkwood as Administrator

DESIGNGUIDE LTD: Taps Kikis Kallis to Liquidate Assets
DISPEC ANODIZING: Taps DTE Leonard Curtis to Administer Assets
EASTMAN KODAK: S&P Places B+ Rating on Watch Negative
EQUIOS LTD: Appoints Charles Moore as Liquidator
GENSEC LIMITED: Brings In DTE as Joint Administrators

GLOSS IMAGE: Names Joint Administrators from Begbies Traynor
HEATING & VENTILATION: Names Ian Pattinson Liquidator
JUBILEE CDO: S&P Assigns BB- Rating to EUR17-Mln Class E Notes
KRISPY KREME: Resolves Suit with Southern California Franchisee
LOCKS OF EXETER: Begins Liquidation Procedure

LONDON WALL: Moody's Rates EUR28-Mln Class E Notes at Ba1
NEMUS FUNDING: Moody's Assigns Ba3 Rating to Class E Notes
PIMS ENTERPRISES: Taps Menzies & David Rubin as Administrators
REFCO INC: Court to Consider Excl. Period Requests on Sept. 12
REFCO INC: Ch. 11 Trustee Hires Goldin & AP as Crisis Managers

SCOTTISH RE: S&P Lowers Counterparty Credit Rating to BB+
SEVERSTAL: Hires Investment Banks for London Stock Listing
SOLVECREST LTD: M. S. E. Solomons Leads Liquidation Procedure
SOUTH EAST: Appoints Administrators from Berg Kaprow
STRATTON FYNES: Hires Stephen Mark Rout to Liquidate Assets

TOMMY TAYLOR'S: Creditors Opt to Voluntary Liquidation
UNITED WORLDWIDE: Names David Alexander Hole as Administrator
VALLEY WINDOWS: Brings In Joint Liquidators from Lines Henry

* Fitch Expects Default Rates Increase on European Second Lien

                            *********


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


ETI: Vienna Court Orders Closing of Business
--------------------------------------------
The Trade Court of Vienna entered an order on June 19 closing
the business of LLC ETI (FN 208593f).  Court-appointed property
manager Michael Guenther 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. Michael Guenther
         c/o Dr. Susanne Fruhstorfer
         Seilerstatte 17
         1010 Vienna, Austria
         Tel: 512 57 76
         E-mail: office@fg-lawyers.at        

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 29 (Bankr. Case No. 2 S 87/06s).  Susanne Fruhstorfer
represents Dr. Guenther in the bankruptcy proceedings.


FCP: Claims Registration Period Ends August 8
---------------------------------------------
Creditors owed money by LLC FCP (FN 232795x) have until Aug. 8
to file written proofs of claims to court-appointed property
manager Florian Gehmacher at:

         Dr. Florian Gehmacher
         c/o Dr. Matthias Schmidt
         Dr. Karl Lueger-Ring 12
         1010 Vienna, Austria
         Tel: 533 16 95
         Fax: 535 56 86
         E-mail: gehmacher@preslmayr.at   

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Aug. 22 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria the Debtor declared bankruptcy
on June 20 (Bankr. Case No. 4 S 104/06f).  Matthias Schmidt
represents Dr. Gehmacher in the bankruptcy proceedings.  


FRANZ BRANDL: Korneuburg Court Orders Closing of Business
---------------------------------------------------------
The Land Court of Korneuburg entered an order on June 19 closing
the business of LLC Franz Brandl (FN 67028x).  Court-appointed
property manager Kurt Schick 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:

         Mag. Kurt Schick
         c/o Mag. Thomas Stenitzer
         Bahnstrasse 1 A
         2130 Mistelbach, Austria
         Tel: 02572/320 20-0
         Fax: 02572/320 20 32
         E-mail: kanzlei-laa@ra-stenitzer.at        

Headquartered in Stockerau, Austria, the Debtor declared
bankruptcy on May 31 (Bankr. Case No. 36 S 61/06x).  Thomas
Stenitzer represents Mag. Schick in the bankruptcy proceedings.


G-TRUCKS: First Creditors' Meeting Slated for August 7
------------------------------------------------------
Creditors owed money by LLC G-Trucks (FN 249807p) are encouraged
to attend the first creditors' meeting at 10:30 a.m. on Aug. 7   
to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of Klagenfurt
         Hall 225/II
         Klagenfurt, Austria

Headquartered in Klagenfurt, Austria, the Debtor declared
bankruptcy on June 20 (Bankr. Case S 41 S 67/06k).  Gerhard Kurt
Kochwalter serves as the court-appointed property manager of the
bankrupt estate.  

The property manager can be reached at:

         Dr. Gerhard Kurt Kochwalter
         Old Place 25
         2nd Floor
         9020 Klagenfurt, Austria
         Tel: 0463/56 122
         Fax: 0463/56122-15
         E-mail: kochw@chello.at


GRUENTHAL ANDREAS: Claims Registration Period Ends August 8
-----------------------------------------------------------
Creditors owed money by LLC Gruenthal Andreas (FN 119841m) have
until Aug. 8 to file written proofs of claims to court-appointed
property manager Eberhard Wallentin at:

         Dr. Eberhard Wallentin
         Porcelain Lane 4-6
         1090 Vienna, Austria
         Tel: 313 74-0
         Fax: 313 74-80
         E-mail: office@ksw.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Aug. 22 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria the Debtor declared bankruptcy
on June 20 (Bankr. Case No. 4 S 103/06h).  


HERTA GLUECK: Vienna Court Orders Closing of Business
-----------------------------------------------------
The Trade Court of Vienna entered an order on June 19 closing
the business of LLC Herta Glueck (FN 168011a).  Court-appointed
property manager Horst Winkelmayr 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:

         Mag. Horst Winkelmayr
         c/o Dr. Carl Knittl
         Porzellangasse 22A/1/7
         1090 Vienna, Austria
         Tel: 532 47 77
         Fax: 532 47 77 50
         E-mail: rae@kniwi.at         

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 12 (Bankr. Case No. 4 S 79/06d).  Carl Knittl represents
Mag. Winkelmayr in the bankruptcy proceedings.


IMMO & LOG: Claims Registration Period Ends August 8
----------------------------------------------------
Creditors owed money by LLC Immo & Log (FN 216724m) have until
Aug. 8 to file written proofs of claims to court-appointed
property manager Johannes Jaksch at:

         Dr. Johannes Jaksch
         c/o Dr. Alexander Schoeller
         Reischachstrasse 3/12 A
         1010 Vienna, Austria
         Tel: 713 44 33
              713 34 05
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at     

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Aug. 22 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1707
         Vienna, Austria

Headquartered in Vienna, Austria the Debtor declared bankruptcy
on June 20 (Bankr. Case No. 2 S 101/06z).  Alexander Schoeller
represents Dr. Jaksch in the bankruptcy proceedings.


MD: Claims Registration Period Ends August 8
--------------------------------------------
Creditors owed money by LLC MD (FN 178763m) have until Aug. 8 to
file written proofs of claims to court-appointed property
manager Friedrich Lorenz at:

         Dr. Friedrich Lorenz
         c/o Dr. Andreas Ruetz
         Main Street 4
         2486 Pottendorf, Austria
         Tel: 02623/7226161
         Fax: 02623/7226120
         E-mail: masseverwalter@aon.at   

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Aug. 22 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Viennese New City
         Room 15
         Viennese New City, Austria

Headquartered in Blumau - Neurisshof, Austria the Debtor
declared bankruptcy on June 20 (Bankr. Case No. 11 S 59/06x).


PERKAL & PARTNER: Claims Registration Period Ends August 8
----------------------------------------------------------
Creditors owed money by OEG Perkal & Partner (FN 222545y) have
until Aug. 8 to file written proofs of claims to court-appointed
property manager Walter Kainz at:

         Dr. Walter Kainz
         c/o Dr. Eva Wexberg
         Casting House Road 23
         1040 Vienna, Austria
         Tel: 505 88 31
         Fax: 505 94 64
         E-mail: kanzlei@kainz-wexberg.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:15 a.m. on Aug. 22 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1701
         Vienna, Austria

Headquartered in Vienna, Austria the Debtor declared bankruptcy
on June 20 (Bankr. Case No. 6 S 58/06f).  Eva Wexberg represents
Dr. Kainz in the bankruptcy proceedings.  


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


METSO CORP: Inks Supply Pact with Russian Copper Mine
-----------------------------------------------------
Metso Minerals will supply grinding and flotation equipment to
Gaisky copper mine for Ural Mining and Metallurgical Company's
raw material complex.  

The delivery will be completed by the end of 2007.  The value of
the order is over EUR20 million.  About EUR17 million was
included in the second-quarter order intake, while the rest will
be included in the third quarter orders.

The order comprises two SAG mills of 5,000 kW each, two ball
mills of 4,100 kW each and seventeen units of RCS (Reactor Cell
System) flotation cells, complemented by installation and
commissioning support services.

Metso's solution is for the processing plant of the Gaiskoe,
Osennee and Letnee deposits development project in the
Orenburgsky region in the southern Ural mountains.  The
deposits' estimated resources comprise approximately 300 million
tons of copper sulfide ore.  Once in operation, the estimated
annual production of the process plant will be 8 million tons of
copper/copper ore per year.

Ural Mining and Metallurgical Company is one of the largest
Russian mining and metallurgical companies, producing an
estimated 40% of Russia's copper.  The company employs over
75,000 people.  In 2004 its sales reached RUB73 billion (EUR 2.1
billion).

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

                        *     *     *

As reported in TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


METSO CORP: JP Morgan Hikes Paid Up Share Capital to 5.03%
----------------------------------------------------------
Metso Corp. has been informed about a change in the holding of
the mutual funds managed by J.P. Morgan Chase & Co. of the paid
up share capital of Metso Corp.

On July 31, 2006, J.P. Morgan Chase & Co.'s holdings amounted to
5.03 percent of the paid up share capital of Metso Corp. from
4.98 percent on Jan. 19, 2006.

The threshold of five percent was crossed on July 31, when J.P.
Morgan Asset Management (UK) Limited purchased 146,138 Metso
shares.

According to their announcement, holdings by mutual funds of
J.P. Morgan Chase & Co. on July 31, 2006 were:

                    Entity                         Shares
                    ------                         ------
   J.P. Morgan Investment Management Inc.       1,646,014
   J.P. Morgan Trust Bank                         118,000
   JP Asset Management (Taiwan) Limited            30,610
   JP Asset Management Limited                    124,145
   JP Morgan Fleming Asset Management
      (Japan) Limited                              56,379
   JPMorgan Asset Management (UK) Limited       4,737,437
   JPMorgan Chase Bank                            240,640
   J.P. Morgan Securities Ltd.                    172,221
                                                ---------
   Total                                        7,125,446

This holding corresponds to 5.03 percent of the paid up share
capital of Metso Corp.

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

                        *     *     *

As reported in TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


METSO CORP: Names Kalle Reponen SVP for Strategy and M&A
--------------------------------------------------------
Metso Corp. disclosed the appointment of Kalle Reponen, as its
Senior Vice President, Strategy and M&A effective Aug. 14.  Mr.
Reponen will report to Jorma Eloranta, President and CEO.

Mr. Reponen is currently Partner and the head of the Helsinki
office at MCF Corporate Finance.  He has previously worked at
Nordea Corporate Finance as Head of Capital Goods and Basic
Materials Sector, and at Wartsila Corp. where he most recently
held the position of Vice President, Corporate Development and
Treasury.

Metso is a global technology corporation serving customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.  In 2004, the net
sales of Metso Corporation were approximately EUR4 billion, and
it has some 22,000 employees in more than 50 countries.  Metso's
shares are listed on the Helsinki and New York Stock Exchanges.

Headquartered in Helsinki, Finland, Metso Corp. --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

                        *     *     *

As reported in TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


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


ACA AACHENER: Claims Registration Ends August 20
------------------------------------------------
Creditors of AcA AACHENER AUSBAU GmbH have until Aug. 20 to
register their claims with court-appointed provisional
administrator Jens Olinger.

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

The meeting of creditors will be held at:

         The District Court of Aachen
         Meeting Room K 3
         3rd Floor
         Alter Posthof 1
         52062 Aachen, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Aachen opened bankruptcy proceedings
against AcA AACHENER AUSBAU GmbH on July 14.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         AcA AACHENER AUSBAU GmbH
         Juelicher Road 191
         52070 Aachen, Germany

         Attn: Irmin Ganic, Manager
         Brunnenstrasse 30
         NLD-2322 Vaals, Germany

The administrator can be contacted at:

         Jens Olinger
         Eupener Road 181
         52066 Aachen, Germany


AEK GMBH: Claims Registration Ends August 11
--------------------------------------------
Creditors of AEK GmbH have until Aug. 11 to register their
claims with court-appointed provisional administrator Peter
Depre.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Aug. 31 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Kaiserslautern
         Hall 13
         Bahnhofstr. 24
         67655 Kaiserslautern, 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 Kaiserslautern opened bankruptcy
proceedings against AEK GmbH on July 3.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         AEK GmbH
         Hoelzchen 32
         67292 Kirchheimbolanden, Germany

         Attn: Karolina Chmielewska, Manager
         c/o Kraft
         Hans-Beimler-Weg 2
         36433 Bad Salzungen, Germany

         Stanislaw Urbaniak, Manager
         Rhein 61
         67547 Worms, Germany

The administrator can be contacted at:

         Peter Depre
         O 4, 13-16
         68161 Mannheim, Germany
         Tel: 0621/120-7810
         Fax: 0621/153-800


ANSWER GMBH: Claims Registration Ends August 10
-----------------------------------------------
Creditors of ANSWER GmbH have until Aug. 10 to register their
claims with court-appointed provisional administrator Sebastian
Henneke.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Sept. 26 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 Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, 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 Dortmund opened bankruptcy proceedings
against ANSWER GmbH on July 12.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         ANSWER GmbH
         Deusener Str. 91
         44369 Dortmund, Germany

         Attn: Ahmed Mohamad Kassem, Manager
         Burgstr. 34
         51371 Leverkusen, Germany

The administrator can be contacted at:

         Dr. Sebastian Henneke
         Hansastrasse 61
         44137 Dortmund, Germany


AS-LEUCHTEN: Claims Registration Ends August 8
----------------------------------------------
Creditors of AS-Leuchten GmbH have until Aug. 8 to register
their claims with court-appointed provisional administrator
Wilhelm Klaas.

Creditors and other interested parties are encouraged to attend
the meeting at 10:25 a.m. on Aug. 29 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Kleve
         Meeting Room C 58
         Ground Floor
         Schlossberg 1 (Swan Castle)
         47533 Kleve, 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 Kleve opened bankruptcy proceedings
against AS-Leuchten GmbH on July 12.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         AS-Leuchten GmbH
         Attn: Arnold Schridde, Manager
         Vossheider Road 260
         47574 Goch, Germany

The administrator can be contacted at:

         Wilhelm Klaas
         Eichendorffstrasse 25
         47800 Krefeld, Germany


B BURAGO: Claims Registration Ends August 10
--------------------------------------------
Creditors of B BURAGO Deutschland GmbH i.L. have until Aug. 10
to register their claims with court-appointed provisional
administrator Stefan Roth.

Creditors and other interested parties are encouraged to attend
the meeting at 2:30 p.m. on Aug. 21 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Pirmasens
         Area 235
         2nd Floor
         Pirmasens, 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 Pirmasens opened bankruptcy proceedings
against B BURAGO Deutschland GmbH i.L.on July 17.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         B BURAGO Deutschland GmbH i.L.
         66954 Pirmasens, Germany

         Attn: Dr. Andreas Sonntag, Liquidator
         Prince George Route 19
         40477 Duesseldorf, Germany

The administrator can be contacted at:

         Stefan Roth
         Brook Route 5-7
         68165 Mannheim, Germany
         Tel: 0621/44004-41
         Fax: 0621/448399


BAUPARTNER BAUGESELLSCHAFT: Creditors' Meeting Set for Aug. 11
--------------------------------------------------------------
The court-appointed provisional administrator for Baupartner
Baugesellschaft mbH, Jens Koeke, will present his first report
on the Company's insolvency proceedings at a creditors' meeting
at 9:00 a.m. on Aug. 11.

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

         The District Court of Goettingen
         Hall B8
         Berliner Road 8
         37073 Goettingen, Germany

The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Sept. 15 at the same
venue.

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

The District Court of Goettingen opened bankruptcy proceedings
against Baupartner Baugesellschaft mbH on July 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Baupartner Baugesellschaft mbH
         Attn: Detlef Schottke, Manager
         Martin-Luther-Road 48
         37081 Goettingen, Germany

The administrator can be reached at:

         Jens Koeke
         Upper Karspuele 36
         37073 Goettingen, Germany
         Tel: 0551/5085920
         Fax: 0551/5085921
         

EUROBIZZ HOLDING: Claims Registration Ends August 14
----------------------------------------------------
Creditors of Eurobizz Holding GmbH have until Aug. 14 to
register their claims with court-appointed provisional
administrator Jan Wilhelm.

Creditors and other interested parties are encouraged to attend
the meeting at 12:30 p.m. on Sept. 11 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 Kiel
         Hall 3         
         Kiel, 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 Kiel opened bankruptcy proceedings against
Eurobizz Holding GmbH on July 17.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Eurobizz Holding GmbH
         Holstenstr. 13-15
         24103 Kiel, Germany

The administrator can be contacted at:

         Jan Wilhelm
         Albert-Einstein-Ring 11
         22761 Hamburg, Germany


KRUG TRANSPORTE: Claims Registration Ends August 7
--------------------------------------------------
Creditors of Krug Transporte GmbH have until Aug. 7 to register
their claims with court-appointed provisional administrator Ute
Jacob.

Creditors and other interested parties are encouraged to attend
the meeting at 12:00 noon on Sept. 4 at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Kiel
         Hall 17
         Kiel, 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 Kiel opened bankruptcy proceedings against
Krug Transporte GmbH on July 12.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Krug Transporte GmbH
         Toepfergrube 9
         24113 Kiel, Germany

The administrator can be contacted at:

         Ute Jacob
         Lorentzendamm 19
         24103 Kiel, Germany


LUENER LANDHAUS: Claims Registration Ends August 21
---------------------------------------------------
Creditors of Luener Landhaus Bautragergesellschaft mbH have
until Aug. 21 to register their claims with court-appointed
provisional administrator Hinnerk-J. Mueller.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 12 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 Lueneburg
         Hall 302
         Ochsenmarket 3
         21335 Lueneburg, 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 Lueneburg opened bankruptcy proceedings
against Luener Landhaus Bautragergesellschaft mbH on July 10.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Luener Landhaus Bautragergesellschaft mbH
         Lueneburger Road 55
         21385 Amelinghausen, Germany

         Attn: Stefan Aleksiev Ivanov, Manager
         70 Et.
         1 App. 3
         9007 Varna, Bulgaria

The administrator can be contacted at:

         Hinnerk-J. Mueller
         Speersort 4-6
         20095 Hamburg, Germany
         Tel: 040/303010
         Fax: 040/30301111


STRUCKMEIER-FLIESENGROSSHANDEL: Claims Registration Ends Aug. 24
----------------------------------------------------------------
Creditors of Struckmeier-Fliesengrosshandel GmbH have until
Aug. 24 to register their claims with court-appointed
provisional administrator Wolfgang Maus.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 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 at 10:00 a.m. on Oct. 5 at the same
venue.

The District Court of Bad Kreuznach opened bankruptcy
proceedings against Struckmeier-Fliesengrosshandel GmbH on
July 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Struckmeier-Fliesengrosshandel GmbH
         Ruedesheimer Str. 120
         55545 Bad Kreuznach, Germany

         Attn: Helmut Alfred Schafer, Manager
         55452 Guldental, Germany

The administrator can be contacted at:

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


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


KNOLL INC: Earns US$14.8 Million in Second Quarter 2006
-------------------------------------------------------
Knoll Inc. disclosed that its net income of US$14.8 million for
the second quarter ended June 30, 2006, increased 29.8% over the
second in the prior year and its quarter ending backlog of
US$169.6 million, increased 29.3% over second quarter 2005.

The Company reported net sales of US$247.5 million for the
quarter, a 25.2% increase from second quarter 2005 and operating
income increased 21.2% to US$29.2 million from the second
quarter 2005.

"We continued to differentiate ourselves with our financial
performance this quarter," Andrew Cogan, chief executive officer
said.  "Not only did we deliver industry leading operating
margins in spite of significant inflation and foreign exchange
pressures, but as our growth initiatives have gained traction
our top-line performance versus the industry has accelerated."

Cash provided by operations in the second quarter of 2006 was
US$21.2 million compared to US$18.6 million during the same
period the year before.  The Company repurchased approximately
531,000 shares of its stock for US$10.2 million during the
quarter.  US$8.3 million of the repurchases were under the
Company's US$50 million buyback program with the remaining
amount purchased with stock option proceeds.  Also during the
quarter the Company repaid US$8.1 million of debt and paid a
quarterly dividend of US$5.1 million.

Barry McCabe, chief financial officer, said, "While implementing
our US$50,000,000 buyback program we were still able to improve
our leverage ratio sequentially from the first quarter 2006 from
2.8 to 2.6 and we are pleased with S&P's recent decision to
upgrade the ratings on our debt to a 'BB' rating."

Headquartered in East Greenville, Pennsylvania, Knoll Inc.,
(NYSE:KNL) designs and manufactures branded office furniture
products and textiles, serves clients worldwide.  It distributes
its products through a network of more than 300 dealerships and
100 showrooms and regional offices.  The Company operates four
manufacturing sites in North America: East Greenville,
Pennsylvania; Grand Rapids and Muskegon, Michigan; and Toronto,
Ontario.  In addition, it has plants in Foligno and Graffignana,
Italy.

                         *     *     *

As reported in the Troubled Company Reporter on July 18,
Standard & Poor's Ratings Services raised its corporate credit
rating and senior secured bank loan ratings, on Knoll Inc., to
'BB' from 'BB-'.  S&P said the outlook was revised to stable
from positive.


KNOLL INC: Stockholders Launch 9.1-Mln Secondary Shares Offer
-------------------------------------------------------------
Some Knoll Inc. stockholders commenced a secondary offering of
9,100,000 shares of common stock under the Company's existing
effective shelf registration statement.

The shares are sold by Warburg, Pincus Ventures, L.P., and
Burton B. Staniar.  Warburg Pincus intends to grant the
underwriters of the offering an option to purchase up to an
additional 1,365,000 shares of common stock.  Knoll will not
issue any shares or receive any proceeds in the offering.

Goldman, Sachs & Co. and Banc of America Securities LLC are the
joint book-running lead managers and UBS Investment Bank is co-
manager of the offering.

A preliminary prospectus supplement on the proposed offering may
be obtained by contacting:

                Goldman, Sachs & Co.
                85 Broad Street
                New York, NY 10004
                Attn: Prospectus Department
                212-902-1171

                Banc of America Securities LLC
                Capital Markets Operations
                100 West 33rd Street, 3rd Floor
                New York, NY 10001
                Attn: Prospectus Fulfillment

Headquartered in East Greenville, Pennsylvania, Knoll Inc.,
(NYSE:KNL) designs and manufactures branded office furniture
products and textiles, serves clients worldwide.  It distributes
its products through a network of more than 300 dealerships and
100 showrooms and regional offices.  The Company operates four
manufacturing sites in North America: East Greenville,
Pennsylvania; Grand Rapids and Muskegon, Michigan; and Toronto,
Ontario.  In addition, it has plants in Foligno and Graffignana,
Italy.

                         *     *     *

As reported in the Troubled Company Reporter on July 18, 2006
Standard & Poor's Ratings Services raised its corporate credit
rating and senior secured bank loan ratings, on Knoll Inc., to
'BB' from 'BB-'.  S&P said the outlook was revised to stable
from positive.


PARMALAT SPA: Faces Inclusion in U.S. Class Action
--------------------------------------------------
At least eight parties-in-interest filed with the U.S. District
Court for the Southern District of New York their oppositions,
or joinders to oppositions, to the investors' request for leave
to file an amended complaint:

   -- Credit Suisse First Boston;
   -- Banca Nazionale del Lavoro S.p.A.;

   -- Grant Thornton International;

   -- Deloitte & Touche USA LLP and Deloitte & Touche LLP;

   -- Deloitte Touche Tohmatsu and James E. Copeland, Jr.;

   -- Banc of America Securities Limited, Bank of America, N.A.
      and Bank of America Corporation;

   -- Grant Thornton LLP; and

   -- Enrico Bondi, extraordinary commissioner of
      Parmalat S.p.A.
   
As previously reported, lawyers representing the class
plaintiffs in the securities class action against Parmalat
sought the District Court's permission to amend their complaint
to, among others, assert claims against reorganized Parmalat
S.p.A., the entity that recently emerged from Extraordinary
Administration Proceedings in Italy.

The Amended Complaint also:

   -- adds other CSFB entities as defendants and asserts new
      securities law claims against them;

   -- adds new allegations against dismissed defendant Grant
      Thornton LLP; and

   -- substitutes Paolo Biaco with a new class representative,
      Margery Louise Kronengold.

                            Too Late

Michael S. Feldberg, Esq., at Allen & Overy LLP, counsel for
CSFB, contends that the addition of a new putative class
representative and a new claim for controlling person liability
is prejudicial to the CSFB Entities.

"CSFB and the other defendants have completed substantial and
costly class discovery and have planned their opposition to
class certification bases on the . . . belief that Paolo Bianco,
the sole purported U.S.-resident purchaser of Parmalat bonds,
would be included among the putative class representatives," Mr.
Feldberg argues.  "CSFB would be forced, unfairly to duplicate
its discovery efforts relative to Ms. Kronengold and divert
resources from, and rethink, its written response to class
certification. . . ."

Banca Nazionale, the Deloitte & Touche Entities, Grant Thornton
International and the Bank of America Entities raise the same
concerns with regards to Ms. Kronengold.  They support CSFB's
opposition to the proposed addition of a new putative class
representative.

Grant Thornton points out that almost a year has passed since
the District Court dismissed the investors' claims against it.  
The District Court gave the investors until mid-August 2005 to
make a "final effort" to replead those claims but they did not
try to do so.  Grant Thornton contends that "it is now far too
late" for the investors to re-insert the firm into the Parmalat
securities litigation.

                      Foreign Debtors Respond

Although Parmalat's downfall is the subject of the Securities
Fraud Action, the Foreign Debtors assert that neither they nor
Reorganized Parmalat are defendants in the Securities Fraud
Action.

The reason for their exclusion is clear, Marcia L. Goldstein,
Esq., at Weil, Gotshal & Manges LLP, in New York, asserts.  The
specific purpose of Section 304 of the Bankruptcy Code, as well
as the comity principles that underlie that statute, is to
prevent the assertion of claims against the Foreign Debtors and
Reorganized Parmalat in actions like the Securities Fraud
Action, she explains.

Ms. Goldstein argues that the investors are subject to the
Section 304 injunction, and Section 304(c) dictates that the
injunction should not be modified to permit their request.

To obtain relief under Section 304, a request must be made by an
authorized representative of a party in a foreign proceeding,
Ms. Goldstein says.

Ms. Goldstein further notes that, similar to a U.S. Chapter 11
case, Italian law does not permit parties to assert prepetition
claims directly against Reorganized Parmalat.  While Italian law
and the composition with creditors under the Foreign Debtors'
Restructuring Plan permit the assertion of late claims -- unlike
a Chapter 11 case which implements a prescribed bar date -- the
Parma Court, in Italy, has exclusive jurisdiction during the
bankruptcy case to consider the admission of all claims before
any obligation of Reorganized Parmalat arises.

As the bankruptcy case in Italy remains open since certain
creditors have appealed the approval of the Composition, the
investors are required to assert their claims in the Parma
Court.

The Foreign Debtors dispute the investors' argument that
Reorganized Parmalat is not entitled to Section 304 injunctive
relief after the Composition was approved.

Pursuant to Section 304, a U.S. court may channel claims to the
foreign proceeding at any stage of the ancillary case -- not
merely the beginning of the process -- as long as there exists a
need to enjoin actions that could jeopardize the success of the
foreign reorganization proceeding.  Thus, Ms. Goldstein says, it
is common for a foreign debtor to complete its foreign
restructuring and seek a permanent injunction pursuant to
Section 304 to assist in the enforcement of its reorganization.

"If a foreign debtor could not obtain a permanent injunction
following confirmation of its bankruptcy plan in the foreign
proceeding, Section 304 would be a pointless, hollow mechanism,"
Ms. Goldstein contends.  "Parties would simply be 'delayed' from
initiating their actions against the foreign debtor . . . until
after the foreign debtor 'successfully' completed its
bankruptcy.  Clearly, this was not Congress' intent in providing
assistance to foreign proceedings under Section 304."

In addition to lacking merit, the Foreign Debtors believe that
the investors' request to add Reorganized Parmalat as a party is
inexplicably late.

The delay, Ms. Goldstein says, has prevented the Foreign
Debtors' administrator, Dr. Enrico Bondi, and Reorganized
Parmalat from participating in class discovery.

The investors make no effort to explain their delay in bringing
their request, Ms. Goldstein notes.  The investors' request is
not predicated on any recent event, and any factual bases for
their securities fraud allegations have been known to class
counsel since they filed their original complaint in January
2004.

The Foreign Debtors ask the District Court to deny the
investors' request.

                          About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that  
can be stored at room temperature for months.  It also has 40-
some brand product line includes yogurt, cheese, butter, cakes
and cookies, breads, pizza, snack foods and vegetable sauces,
soups and juices.

The Company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.  

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.


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


AEN: Creditors Must File Claims by Sept. 1
------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Aen insolvent.  Subsequently, bankruptcy proceedings were
introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Aen
         Klochkova Str. 21-32
    Almaty, Kazakhstan
    Tel: 8 300 460 17-71


ALKOM: Creditors Must File Claims by Sept. 1
--------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Company Alkom insolvent on June 12.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Company Alkom
         P.O. Box 1
         JSC Kazpochta
         Post Office 57
         050057 Almaty, Kazakhstan


ASELL TELEKOM: Creditors Must File Claims by Sept. 1
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Asell Telekom insolvent on June 12.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Asell Telekom
         P.O. Box 1
    JSC Kazpochta
    Post Office 57
    050057 Almaty, Kazakhstan


BIZNES SENTR: Proof of Claim Deadline Slated for Sept. 1
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Biznes Sentr insolvent on June 7.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Biznes Sentr
         Entuziastov Str. 100
         Ust-Kamenogorsk
    East Kazakhstan Region
    Kazakhstan
    Tel: 8 (3232) 62-40-06


KAZFOSFOTREID: Proof of Claim Deadline Slated for Sept. 1
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Kazfosfotreid insolvent on June 12.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Kazfosfotreid
         P.O. Box 1
    JSC Kazpochta
    Post Office 57
    050057 Almaty, Kazakhstan


M & G: Claims Registration Ends Sept. 1
---------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Corporation M & G insolvent on June 12.  Subsequently,
bankruptcy proceedings were introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Corporation M & G
         P.O. Box 1
    JSC Kazpochta
    Post Office 57
    050057 Almaty, Kazakhstan


RAWOL: Claims Registration Ends Sept. 1
---------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Rawol insolvent.  Subsequently, bankruptcy proceedings were
introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Rawol
         Klochkova Str. 21-32
    Almaty, Kazakhstan
    Tel: 8 300 460 17-71


SHAH & AKTAU: Creditors' Claims Due Sept. 1
-------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP Shah & Aktau insolvent on June 6.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Shah & Aktau
         Aktau, 27-67-7
         Mangistau Region
    Kazakhstan
    Tel: 8 (3292) 41-00-42
    Fax: 8 (3292) 41-00-42


STROISNABSERVIS: Creditors' Claims Due Sept. 1
----------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Stroisnabservis insolvent.  Subsequently, bankruptcy
proceedings were introduced at the company.

Creditors have until Sept. 1 to submit written proofs of claim
to:

         LLP Stroisnabservis
         Klochkova Str. 21-32
    Almaty, Kazakhstan
    Tel: 8 300 460 17-71


TRANSSTROI: Creditors' Claims Due Sept. 1
-----------------------------------------
The Kazakhstan Branch of the OJSC Corporation Transstroi has
declared insolvency.  Creditors have until Sept. 1 to submit
written proofs of claim to:

         OJSC Corporation Transstroi
         Auezova Str. 120/1
         Astana, Kazakhstan

         OJSC Corporation Transstroi
         Lenina Str. 1
    Fabrichnyi
    Jambylsky District
    Almaty Region
    Kazakhstan
    Tel: 8 (32770) 3-23-64
              8 (32770) 3-27-04


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


CHUI BISHKEK: Public Auction Scheduled for Aug. 18
--------------------------------------------------
The Chui-Bishkek-Talas Territorial Department of the State
Committee of the Kyrgyz Republic for the State Property
Management will auction the dormitory of the State Customs
Inspection of Panfilov Region to the public at 11:00 a.m. on
Aug. 18 at:

         5th Floor
         Moskovskaya Str. 172
         Bishkek, Kyrgyzstan

The entity has declared a KGS309,900 starting price for the
property.
  
The auction will be conducted by English method.

Interested bidders have until 5:00 p.m. on Aug. 17 to submit
their bids and necessary documents at:

         Room 1
         5th Floor
         Moskovskaya Str. 172
    Bishkek, Kyrgyzstan

and deposit an amount equivalent to 10% of the starting price to
the settlement account of:

         The Chui-Bishkek-Talas Territorial Department of the
    State Property Committee of the Kyrgyz Republic
         OJSC Settlement and Saving Company
         Lenin Department
         Settlement Account No. 8504172080101005/205802605
         MFO 129001

The winner of the auction will pay 7% of the selling price.

Inquiries can be addressed to (+996 312) 21-87-25.


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


GETRONICS NV: Moody's Junks EUR100-Mln Sr. Unsecured Bonds
----------------------------------------------------------
Moody's Investors Service downgraded Getronics' corporate family
rating to B2 from B1 and placed the ratings on review for
possible downgrade following the company's announcement of half
year results showing a widening of net losses and fall in
margins below the company's expectations.  Concurrently the
rating on the EUR100 million senior unsecured convertible Dutch
bonds due 2008 has been downgraded to Caa1 from B3.

The downgrade reflects Moody's concerns stemming from the
company's continued disclosure of weak operating performance,
execution risk from ongoing restructuring and business re-
engineering initiatives and the need to clarify the impact on
the core business and future cash flows from various disposals.

The review for possible downgrade will focus on operating
performance and Getronics' ability to reverse margin decline and
negative operating cash flows in light of operational
difficulties and the highly competitive operating environment.
The company's liquidity position will also be an important
ratings driver.

Moody's notes that the company is undergoing material
restructuring with divestment of businesses in Central and
Eastern Europe, downsizing of the North American and other
businesses, reduction in headcount of over 1,000 staff, sale of
the HR Services business and integration of the RedSiren and
PinkRoccade acquisitions.  The company is also implementing a
revised business model called the "Breakout Program" and has had
to deal with costly problems in its Italian business.

An amended credit agreement was negotiated in March after
banking covenants were breached due to impacts from the Italian
business.  The amendment stipulates that senior secured credit
facilities will be reduced by EUR30 million by 30 September
2006.  The divestment program and plans to improve cash
management should assist Getronics to operate with less
available headroom under these facilities.  Moody's will
continue to monitor the outcomes of the divestment program,
together with their impact on liquidity.

Getronics operates in a competitive operating environment that
is subject to cyclical factors and continuous change that is
characteristic of the ITC market.  The company is subject to on-
going challenges of managing a broad base of multi-national
operations across a number of different countries.  Event risk
is considered material given Getronics' acquisition, divestment
and restructuring programs and requirements to reduce costs and
improve cash management.

Ratings actions:

Gentronics N.V.

   -- corporate family rating, downgraded to B2 from B1; and

   -- rating on EUR100 million senior unsecured convertible
Dutch bonds due 2008, downgraded to Caa1 from B3.

The ratings have been placed on review for possible downgrade.

Headquartered in Amsterdam, The Netherlands, Getronics is a
leading international Information and Communications Technology
provider.  For the 12 months ended Dec. 31, 2005, Getronics
reported total revenues of around EUR2.6 billion.


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


NETIA SA: Merges with Three Wholly Owned Subsidiaries
-----------------------------------------------------
The District Court for the Capital City of Warsaw, XIII
Commercial Division of the National Court Register, entered in
the register of entrepreneurs on July 31, the merger between
Netia and its three wholly-owned subsidiaries, which operated
previously under the following names:

   -- Regionalne Sieci Telekomunikacyjne El-Net SA
   -- Netia WiMax SA
   -- Polbox Sp. z o.o.

Except for Regionalne Sieci Telekomunikacyjne El-Net SA, the
Acquired Companies do not conduct telecommunications activities.

The merger was carried out pursuant to Article 492, Section 1,
of the Polish Commercial Companies Code in relation to Article
515, Section 1 of the CCC through the transfer of the Acquired
Companies' assets to Netia (merger by acquisition) without any
increase in Netia's share capital, without any share exchanges
and without amending Netia's statute.

According to the CCC, Netia's merger with the Acquired Companies
occurred as of July 31, 2006.  As of that date, pursuant to
Article 494 of the CCC, Netia assumed all the rights and
liabilities of the Acquired Companies that were dissolved.  The
merger completed the procedure of internal consolidation of the
Acquired Companies within the Netia Group.

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


NETIA SA: Third Avenue Hikes Equity Stake to 12.09%
---------------------------------------------------
Netia SA (WSE: NET) received a notification on Aug. 2 filed on
behalf of Third Avenue Management LLC that ownership of Netia's
shares, held by Third Avenue Management on behalf of its
clients, has increased above the threshold of 12% of the total
number of votes at Netia's General Meeting of Shareholders.

According to the notification, as a result of the settlement on
July 31, 2006, of a purchase of Netia shares effected on the
Warsaw Stock Exchange, Third Avenue Management holds 47,034,707
Netia shares, representing 12.09% of Netia's share capital.  
Third Avenue's ownership entitles it to exercise 47,034,707
votes, which represents 12.09% of the total number of votes at
Netia's General Meeting of Shareholders.

Prior to this transaction, Third Avenue Management held
46,524,969 Netia shares, which represented 11.95% of Netia's
share capital, and was entitled to 46,524,969 votes,
representing 11.95% of the total number of votes, at Netia's
General Shareholder Meeting.

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


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


CHEMICAL PRODUCT: Court Names N. Sotneva as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Moscow Region appointed Ms. N. Sotneva
as Insolvency Manager for CJSC Chemical Product.  She can be
reached at:

         N. Sotneva
         Post User Box 15
         603018 Nizhniy Novgorod Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-14623/06-103-67B.

The Debtor can be reached at:

         CJSC Chemical Product
         Building 6
         Smolenskiy Avenue 13
         Moscow Region
         Russia


GRAIN PRODUCT: Court Starts Bankruptcy Supervision
--------------------------------------------------
The Arbitration Court of Rostov Region has commenced bankruptcy
supervision procedure on CJSC Grain Product (TIN 6167058390).  
The case is docketed under Case No. A53-2424/06-S2-33.

The Temporary Insolvency Manager is:

         A. Shershunov
         Budenovskiy Pr. 27
         344082 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         CJSC Grain Product
         Lesnaya Str. 61/2
         103008 Moscow Region
         Russia


KHABAROVSKIY METAL: Court Starts Bankruptcy Supervision
-------------------------------------------------------
The Arbitration Court of Khabarovsk Region has commenced
bankruptcy supervision procedure on OJSC Khabarovskiy Factory of
Metal Products.  The case is docketed under Case No. A73-
3363/2006-39.

The Temporary Insolvency Manager is:

         E. Shtinova
         Respublikanskaya Str. 17
         680023 Khabarovsk Region
         Russia

The Debtor can be reached at:

         OJSC Khabarovskiy Factory of Metal Products
         Dovatora Str. 5
         680000 Khabarovsk Region
         Russia


MAGADANSKIY LEATHER-FUR: G. Chmutina to Manage Assets
-----------------------------------------------------
The Arbitration Court of Magadan Region appointed Ms. G.
Chmutina as Insolvency Manager for OJSC Magadanskiy Leather-Fur
Factory.  She can be reached at:

         G. Chmutina
         Office 105
         Sv. Innokentiya Per. 13
         675000 Blagoveshensk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A37-849/06-4b.

The Debtor can be reached at:

         OJSC Magadanskiy Leather-Fur Factory
         Kozhezavodskaya Str. 12
         658200 Magadan Region
         Russia


METSO CORP: Inks Supply Pact with Russian Copper Mine
-----------------------------------------------------
Metso Minerals will supply grinding and flotation equipment to
Gaisky copper mine for Ural Mining and Metallurgical Company's
raw material complex.  The delivery is expected to be completed
by the end of 2007.  The value of the order is over EUR20
million.  About EUR17 million was included in the second-quarter
order intake, while the rest will be included in the third
quarter orders.

The order comprises two SAG mills of 5,000 kW each, two ball
mills of 4,100 kW each and seventeen units of RCS (Reactor Cell
System) flotation cells, complemented by installation and
commissioning support services.

Metso's solution is for the processing plant of the Gaiskoe,
Osennee and Letnee deposits development project in the
Orenburgsky region in the southern Ural mountains.  The
deposits' estimated resources comprise approximately 300 million
tons of copper sulfide ore.  Once in operation, the estimated
annual production of the process plant will be 8 million tons of
copper/copper ore per year.

Ural Mining and Metallurgical Company is one of the largest
Russian mining and metallurgical companies, producing an
estimated 40% of Russia's copper.  The company employs over
75,000 people.  In 2004 its sales reached RUB73 billion (EUR 2.1
billion).

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

                        *     *     *

As reported in TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


OCEAN-PRIM: Khabarovsk Court Commences Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Khabarovsk Region has commenced
bankruptcy supervision procedure on CJSC Ocean-Prim.  The case
is docketed under Case No. A73-1115/2006-9.

The Temporary Insolvency Manager is:

         V. Gruzdev
         Apartment 43
         B. Aerodrom Str. DOS 32
         680014 Khabarovsk Region
         Russia

The Debtor can be reached at:

         CJSC Ocean-Prim
         Svetlanskaya Str. 25
         690600 Vladivostok Region
         Russia


OSINSKOYE BEER: Court Names A. Potrachkov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Perm Region appointed Mr. A. Potrachkov
as Insolvency Manager for CJSC Osinskoye Beer.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A50-6612/2006-B.

The Arbitration Court of Perm Region is located at:

         Lunacharskogo Str. 3
         Perm Region
         Russia

The Debtor can be reached at:

         CJSC Osinskoye Beer
         Kosmonavtov Shosse 368
         614065 Perm Region
         Russia


SEVERSTAL: Hires Investment Banks for London Stock Listing
----------------------------------------------------------
OAO Severstal has hired Citigroup Inc., UBS AG and Deutsche Bank
AG for a share listing in London that could value the company at
about US$15 billion, Alistair MacDonald and Geoffrey T. Smith
writes for The Wall Street Journal citing an unnamed source.

Severstal expects to raise as much as US$1.5 billion in the
third quarter of 2006 from the share sale, the source told WSJ.

A low volume of Severstal's shares is already listed in Moscow
and trades at a discount to London-listed rivals such as Evraz
Group SA and OAO Novolipetsk Steel, the paper relates.

"The deal makes sense as it will create an opportunity for the
stock to re-rate, and give the company a currency for deal-
making," Michael Kavanagh, an analyst at MDM Bank in Moscow,
told WSJ.

                      Failed Arcelor Deal

As reported in TCR-Europe on June 26, Arcelor S.A.'s Board of
Directors ditched a pre-signed merger agreement with Severstal
over an improved offer from Indian steelmaker Mittal Steel.

Until the deal, Arcelor had recommended a EUR13 billion merger
with Severstal, saying that an Arcelor-Severtal fusion would be
more efficient and productive than an Arcelor-Mittal union.  

The planned merger, however, received stiff opposition from some
Arcelor shareholders, who had expressed concerns that Alexei
Mordashov, Severstal's majority owner, would end up controlling
the merged company.  Severstal had improved the terms of
proposed merger, opting to own 25% of the new company rather
than 32% as previously agreed.

                        About Severstal

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

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

                        *     *     *

As reported in TCR-Europe on July 5, Standard & Poor's Ratings
Services kept its 'B+' long-term corporate credit rating on
Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

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


SOKOL: Undergoes External Management Procedure
----------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region has
commenced external management bankruptcy procedure on OJSC
Leningradskiy Factory Sokol (TIN 4716017852).  The case is
docketed under Case No. A56-21060/05.

The External Insolvency Manager is:

         V. Kostomarov
         Office 205
         Angliyskiy Pr. 3
         190121 St. Petersburg Region
         Russia

The Arbitration Court of St. Petersburg and the Leningrad Region
is located at:

         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         OJSC Leningradskiy Factory Sokol
         Nikolskoye
         Tosnenskiy Region
         Leningrad Region
         Russia


SPITAK: Amur Court Starts Bankruptcy Supervision
------------------------------------------------
The Arbitration Court of Amur Region has commenced bankruptcy
supervision procedure on CJSC Spitak (TIN 2819000529).  The case
is docketed under Case No. AO4-1685/06-10/135 B.

The Temporary Insolvency Manager is:

         I. Lagutina
         Shimanovskogo Str. 46/2
         Blagoveshensk
         675000 Amur Region
         Russia

The Debtor can be reached at:

         CJSC Spitak
         Krasnoyarovo
         Mazanovskiy Region
         Amur Region
         Russia


TARASOVSK-AGRO-PROM-SNAB: N. Lemaev to Manage Assets
----------------------------------------------------
The Arbitration Court of Rostov Region appointed N. Lemaev as
Insolvency Manager for OJSC Tarasovsk-Agro-Prom-Snab (TIN
6133006370).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A53-1958/06-S2-51.

The Arbitration Court of Rostov Region is located at:

         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         OJSC Tarasovsk-Agro-Prom-Snab
         Ostrovskogo Str. 3A.
         Tarasovskiy
         Tarasovskiy Region
         346050 Rostov Region
         Russia


TIMBER MILL 34: Court Starts Bankruptcy Supervision
---------------------------------------------------
The Arbitration Court of Arkhangelsk Region has commenced
bankruptcy supervision procedure on OJSC Timber Mill 34.  The
case was docketed under Case No. A05-10060/05-21.

The Temporary Insolvency Manager is:

         N. Rasputin
         Arsenalnaya Str. 1D.
         300002 Tula Region
         Russia

The Debtor can be reached at:

         OJSC Timber Mill 34
         Mankevicha Str. 13.
         Onega
         Onezhskiy Region
         164840 Arkhangelsk Region
         Russia


USTYANSKOYE GRAIN: Court Starts Bankruptcy Supervision
------------------------------------------------------
The Arbitration Court of Arkhangelsk Region commenced bankruptcy
supervision procedure on OJSC Ustyanskoye Grain Receiving
Enterprise (TIN 2922006436).  The case was docketed under Case
No. A05-3800/2006-28.

The Temporary Insolvency Manager is:

         A. Zamaraev
         Post User Box 18
         160004 Vologda Region
         Russia

The Debtor can be reached at:

         OJSC Ustyanskoye Grain Receiving Enterprise
         Aviatsionnaya Str. 20
         Kostylevo St.
         Ustyanskiy Region
         165220 Arkhangelsk Region
         Russia


VYATSKOYE ZARECHYE: M. Lopatina to Manage Assets
------------------------------------------------
The Arbitration Court of Kirov Region appointed Ms. M. Lopatina
as Insolvency Manager for LLC Agro Company Vyatskoye Zarechye.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A28-339/05-301/20.

The Debtor can be reached at:

         LLC Agro Company Vyatskoye Zarechye
         Truda Str. 1
         Zonikha
         Slobodskiy Region
         Kirov Region
         Russia


YUG-STEEL-SERVICE: A. Semenyakov to Manage Assets
-------------------------------------------------
The Arbitration Court of Rostov Region appointed Mr. A.
Semenyakov as Insolvency Manager for LLC Yug-Steel-Service.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A53-3981/06-S2-33.

The Arbitration Court of Rostov Region is located at:

         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         LLC Yug-Steel-Service
         Chekhova Str. 271
         Taganrog
         Rostov Region
         Russia


YUKOS OIL: Founder's Camp Denounces Russian Bankruptcy Order
------------------------------------------------------------
Following a Russian court's decision to declare OAO Yukos Oil
bankrupt on Aug. 1, Robert Amsterdam, international counsel for
political prisoner Mikhail Khodorkovsky, called upon Western
politicians, business leaders, and investors to stop the
"hemorrhaging" of Russian justice and recognize the vengeful
political persecution against his client.

"So far all court processes relating to either Yukos or any
Yukos-related defendants -- let alone Mikhail Khodorkovsky --
have been outside the rule of law," said Mr. Amsterdam.  "Now
these shameful judicial activities are occurring with the full
and active complicity of major Western financial institutions,
which is paramount to the sponsorship of illegal state
expropriation.  The conduct of these banks shall now be open to
public scrutiny."

The Yukos bankruptcy decision represents the latest chapter in
the ongoing state campaign to silence Mikhail Khodorkovsky,
destroy Yukos and damage investor value, Mr. Amsterdam argues.  
"These farcical court hearings are nothing more than a desperate
attempt to cloak state crimes with an illusion of legitimacy."

The order to force the liquidation of Yukos assets follows the
submission of a disputed company evaluation by Eduard Rebgun,
the court-appointed liquidator who is viewed by many as the
Kremlin's architect of Yukos' forced expropriation.  The
hearings have been dominated by a syndicate of creditor banks
including Societe Generale, Deutsche Bank, and Citigroup, which
Mr. Amsterdam argues were pressured by OAO Rosneft.  Many
believe that both state-owned Rosneft and Gazprom will likely
acquire the Yukos assets for next to nothing in yet another non-
transparent auction.

"Let no one believe the Yukos case has anything to do with the
legitimate exercise of state function," said Mr. Amsterdam.  
"This latest charade underscores the bogus quality of the
proceedings which exiled Khodorkovsky to Siberia, putting his
life into danger."

Mr. Amsterdam continued, "Consider the facts: along with the
failed attempts to build confidence with the IPO of Rosneft and
the G-8 Summit, a court decision was issued to impound Mikhail
Khodorkovsky's house, the current residence of his wife and
children, followed by the rushed Yukos bankruptcy decision.  Far
from coincidence, the confluence of these events demonstrates
the political vendetta behind the illegal imprisonment of my
client.  The Russian state, with its policy of perestroika in
reverse, sends a clear message of its intent to stamp out
political competition, transparency, and free markets.  It is a
message that should not remain unanswered."

Mr. Khodorkovsky founded what was once Russia's largest oil
producer and previously served as its chief executive officer.  
He was sentenced to nine years in prison in June 2005 for
charges including tax evasion and fraud along with business
associate Platon Lebedev.

As reported in TCR-Europe on June 2, 2005, Mr. Khodorkovsky was
found guilty by a three-judge panel of massive fraud, tax
evasion and embezzlement in relation to his business activities
in the 1990s.  Authorities had accused him of buying Yukos cheap
at a time when privatization in Russia was yet unregulated.

Mr. Khodorkovsky was believed to be Russia's richest man with
wealth of US$15 billion dollars, according to Fortune Magazine,
at the time of his arrest in 2003.

                           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.

On Aug. 1, 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.  The
expected court ruling paves the way for the company's
liquidation and auction.



YUSOVSKAYA: Court Names A. Kolyshnitsyn as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Kirov Region appointed Mr. A.
Kolyshnitsyn as Insolvency Manager for CJSC Agro Company
Yusovskaya.  He can be reached at:

         A. Kolyshnitsyn
         Shorsa Str. 26-a
         610014 Kirov Region
         Russia
         Tel: (8332) 56-02-45

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A28-180/05-242/6.

The Arbitration Court of Kirov Region is located at:

         K-Libknekhta Str. 102
         610017 Kirov Region
         Russia

The Debtor can be reached at:

         CJSC Agro Company Yusovskaya
         Yusovo
         Farenskiy Region
         612505 Kirov Region
         Russia



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


AS-MARKET: Kyiv Court Names A. Agafonov as Liquidator
-----------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. A. Agafonov as
Liquidator/Insolvency Manager for LLC As-Market (code EDRPOU
31026631).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 6.  The case is docketed
under Case No. 15/36-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 As-Market
         Nauki avenue, 18/138
         03039 Kyiv Region
         Ukraine


AVAL-INVEST: Court Names Yurij Tukman as Insolvency Manager
-----------------------------------------------------------
The Economic Court of Kyiv Region appointed Yurij Tukman as
Liquidator/Insolvency Manager for CJSC AVAL-INVEST (code EDRPOU
31841303).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 6.  The case is docketed
under Case No. 15/393-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:

         CJSC Aval-Invest
         Prorizna Str. 4
         01034 Kyiv Region
         Ukraine


AZOT: Kyiv Court Commences Bankruptcy Supervision
-------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on Ukrainian Agrarian-Chemical Company
Azot (code EDRPOU 31409786) on April 28.  The case is docketed
under Case No. 15/350-b.

The Temporary Insolvency Manager is:

         Anatolij Gunko
         Brovari
         M. Grushevskij Str. 17/55
         Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         Ukrainian Agrarian-Chemical Company Azot
         M. Grushevskij Str. 10
         Kyiv Region
         Ukraine


BUDYANSKIJ FAYANS: Court Starts Bankruptcy Supervision
------------------------------------------------------
The Economic Court of Harkiv Region commenced bankruptcy
supervision procedure on JSCCT Budyanskij Fayans (code EDRPOU
00310456) on May 25.  The case is docketed under Case No.
B-39/58-06.

The Temporary Insolvency Manager is:

         Oksana Kuznetsova
         Zaliznichna Str. 1
         Budi
         62456 Harkiv Region
         Ukraine

The Economic Court of Harkiv Region is located at:

         Derzhprom 8th Entrance
         Svobodi Square 5
         61022 Harkiv Region
         Ukraine

The Debtor can be reached at:

         JSCCT Budyanskij Fayans
         Zaliznichna Str. 1
         Budi
         Harkiv Region
         Ukraine


DARNITSYA: Kyiv Court Starts Bankruptcy Supervision
---------------------------------------------------
The Economic Court of Kyiv Region commenced bankruptcy
supervision procedure on OJSC Darnitsya (code EDRPOU 04012997).  
The case is docketed under Case No. 23/273-b.  

The Temporary Insolvency Manager is:

         Sergij Yegorenkov
         Lesya Ukrainka Boulevard 19/138
         01133 Kyiv Region
         Ukraine

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         OJSC Darnitsya
         Perova Str. 26-B
         02125 Kyiv Region Ukraine


HARCHOKOMBINAT: Court Names Sergij Vasiltsov as Liquidator
----------------------------------------------------------
The Economic Court of Zaporizhya Region appointed Sergij
Vasiltsov as Liquidator/Insolvency Manager for Joint Enterprise
Harchokombinat (code EDRPOU 20481881).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 25.  The case is docketed
under Case No. 19/82/06.

The Economic Court of Zaporizhya Region is located at:

         Shaumyana Str. 4
         69001 Zaporizhya Region
         Ukraine

The Debtor can be reached at:

         Joint Enterprise Harchokombinat
         Rozivka, Pivdenna Str. 3
         70300 Zaporizhya Region
         Ukraine


KELMENETSKIJ' SUGAR: Volodimir Zavalnuk to Liquidate Assets
-----------------------------------------------------------
The Economic Court of Chernivtsi Region appointed Volodimir
Zavalnuk as Liquidator/Insolvency Manager for OJSC Kelmenetskij'
Sugar Plant (code EDRPOU 00373149).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 8.  The case is docketed
under Case No. 6/189-121/B.

The Economic Court of Chernivtsi Region is located at:

         O. Kobilyanska Str. 14
         58000 Chernivtsi Region
         Ukraine

The Debtor can be reached at:

         OJSC Kelmenetskij' Sugar Plant
         Nelipivtsi
         60152 Chernivtsi Region
         Ukraine


KRIVBASRUDBUD: Court Starts Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Dnipropetrovsk Region commenced bankruptcy
supervision procedure on CJSC Krivbasrudbud (code EDRPOU
01239051) on May 15.  The case is docketed under Case No.
B 40/105/06.

The Temporary Insolvency Manager is:

         N. Fedko
         Orenburgska Str. 120
         49074 Dnipropetrovsk Region
         Ukraine

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         CJSC Krivbasrudbud
         Svitlogorska Str. 74.
         Krivij Rig
         50011 Dnipropetrovsk Region
         Ukraine


ORIHIVSKE BURYAKOGOSPODARSTVO: Bankruptcy Supervision Starts
------------------------------------------------------------
The Economic Court of Poltava Region commenced bankruptcy
supervision procedure on OJSC Orihivske Buryakogospodarstvo
(code EDRPOU 00384928) on May 16.  The case is docketed under
Case No. 18/213.  

The Temporary Insolvency Manager is:

         Larisa Golejna
         Miru Str. 9/96
         36022 Poltava Region
         Ukraine

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         OJSC Orihivske Buryakogospodarstvo
         Novoorihivka
         Lubenskij District
         Poltava Region
         Ukraine


TAS-KOMMERTZBANK: Fitch Assigns B- Issuer Default Ratings
---------------------------------------------------------
Fitch Ratings assigned Ukraine-based TAS-Kommertzbank ratings of
Issuer Default B-, Short-term B, Support 5, Individual D/E and
National Long-term BBB-.  A Stable Outlook has been assigned to
both Issuer Default and National Long-term ratings.

The ratings reflect TAS's small size by international standards,
potentially vulnerable liquidity position, its concentrated
business and only adequate capitalization given expected rapid
balance sheet growth.  The ratings also capture the growing
retail franchise, the reasonable asset quality to date and
limited market risks.

Rating uplift might stem from an improvement in liquidity along
with adequately capitalized franchise expansion.  Downside risks
could arise if the bank fails to manage prudently the credit and
operational risks associated with growth.

Profitability has been moderate to date, driven by a healthy net
interest margin on the back of rising retail loans.  However,
last year saw a notable reduction in performance ratios due to
aggressive regional markets penetration accompanied by price
dumping strategies.  Although the bank plans further expansion
into higher yielding retail banking, large investment outlays
associated with the new retail platform implementation will
hamper medium-term profitability.

The latter will remain at best modest during the rollout.  The
net interest margin might also come under further pressure from
tighter competition from foreign players entering the Ukrainian
market en masse.  Asset quality has been adequate so far, driven
by stricter credit procedures; however, this may change due to
larger amounts of uncollateralized lending and more risky target
client segments.  TAS's liquidity position is vulnerable as a
result of limited access to long-term funding, and the bank may
need external support if there are market liquidity squeezes.

TAS emerged from the Kiev branch of Privatbank in 2001.
Initially the bank's business was limited to serving a group of
affiliated companies, with a primary focus in the Kiev region,
before it developed its franchise through third-party business
and regional penetration.  At end-March 2006 TAS' sales network
comprised 105 points of sale and over 40 ATMs.  

TAS is ultimately owned by Sergey Tigipko, chairman of the
bank's management board and former chairman of the National Bank
of Ukraine and deputy prime-minister.  The shareholder has
interests in a wide array of other industries.


UKRAINA: Court Starts Bankruptcy Supervision
--------------------------------------------
The Economic Court of Poltava Region commenced bankruptcy
supervision procedure on Agricultural LLC Ukraina (code EDRPOU
05524819) on June 15.  The case is docketed under Case No.
18/200.

The Temporary Insolvency Manager is:

         Yevgen Vasin
         Vavilov Avenue 5/11
         36000 Poltava Region
         Ukraine

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Ukraina
         Pashenka
         Reshetilivskij District
         38451 Poltava Region
         Ukraine


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


A HEAD: Creditors Pass Winding Up Resolution
--------------------------------------------
Creditors of A Head of the Rest Limited passed on May 3 a
resolution to voluntarily wind up the company's operations.

Martin Henry Linton was appointed Liquidator.

The company can be reached at:

         A Head of the Rest Limited
         272 regents park road
         London N3 3HN
         United Kingdom
         Tel: 01759 373 828


A1 TM LIMITED: Hires Geoffrey Martin as Joint Administrators
------------------------------------------------------------
Stephen Hull and Geoffrey Martin of Geoffrey Martin & Co. were
appointed joint administrators of A1 TM Limited (Company Number
04700836) on July 4.

The administrators can be reached at:

         Geoffrey Martin & Co.
         St. James's House
         28 Park Place
         Leeds
         West Yorkshire LS1 2SP
         United Kingdom
         Tel: 0113 244 5141
         Fax: 0113 242 3851
         E-mail: geoffrey.martin@geoffreymartin.co.uk

A1 TM Limited can be reached at:

         Ashworth House
         Manchester Road
         Burnley
         Lancashire BB11 1HB
         United Kingdom


BACCHUS 2006-2: S&P Rates EUR12.3-Mln Class E Notes at BB
---------------------------------------------------------  
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR369 million senior secured and
deferrable floating-rate notes to be issued by BACCHUS 2006-2
PLC, an SPE.  At the same time, BACCHUS 2006-2 will issue EUR41
million of unrated notes.
  
At closing, BACCHUS 2006-2 will issue floating-rate notes, the
proceeds of which, after paying transaction fees and expenses,
will be invested in a portfolio of predominantly senior-secured
leveraged loans.
  
The transaction has a reinvestment period of six years and the
collateral manager will be IKB Deutsche Industriebank AG, acting
as IKB Fund Management through its London branch.
  
This will be the second arbitrage CLO transaction brought to
market by IKB, broadening the bank's presence in the European
CLO market.  The first one closed on March 15 and was preceded
by seven balance sheet CLOs, both synthetic and cash.
  
The ratings reflect:

   -- commensurate credit support in the form of
overcollateralization and subordination,

   -- a diversified collateral pool of loans and derivative
financial instruments,

   -- currency risk protections,

   -- strong collateral investment guidelines,

   -- the expected bankruptcy-remoteness of the issuer, and

   -- various amortization triggers.
  
                          Ratings List
                       BACCHUS 2006-2 PLC
                EUR410 Million Senior Secured And
                 Deferrable Floating-Rate Notes
  
                             Prelim.        Prelim.
              Class          rating         amount (Mil. EUR)
              -----          ------         ------
              A-1            AAA            152.0
              A-2A           AAA            115.0
    A-2B           AAA             12.9
    B              AA              39.9
    C              A               18.5
    D              BBB-            18.4
    E              BB              12.3
    Subordinated   NR              41.0
         notes
  
              NR-Not rated.


BRISTOL INNS: Appoints Joint Administrators from BDO Stoy
---------------------------------------------------------
Graham David Randall and Anthony David Nygate of BDO Stoy
Hayward LLP were appointed joint administrators of Bristol Inns
Limited (Company Number 04972791) on July 3.

Headquartered in London, United Kingdom, BDO Stoy Hayward --
http://www.bdo.co.uk/-- is the U.K. member firm of BDO  
International, the world's fifth largest accountancy network
with more than 600 offices in 100 countries.  Its services
include: audit and assurance, business restructuring, corporate
finance, disputes and investigations, investment management,
risk assurance services, tax services, and valuations.

Headquartered in Falfield, United Kingdom, Bristol Inns Limited
-- http://www.bristolinn.co.uk/-- operates hotels.


BRITISH AIRWAYS: Iberia Lineas Open for Further Integration
-----------------------------------------------------------
Iberia Lineas Aereas de Espana SA has disclosed the possibility
of further integrating with partner and shareholder British
Airways Plc, Bloomberg News reports.

British Airways holds a 10% equity stake in Spain's largest
airline.

"The possibility of further future integration is always there,"
Iberia Chief Financial Officer Enrique Dupuy told Bloomberg.  
"We believe, and I think so does British Airways, in a
consolidation process of the European airline industry, and
carriers will tend to group around leading carriers, which will
not be more than three," Mr. Dupuy said.

Europe's airline industry has seen a merger of monopolies in the
past years to reduce costs and combat the growing competition of
discount carriers.  In 2004, Air France SA acquired KLM Royal
Dutch Airlines NV to form Air France-KLM Group, now Europe's
biggest carrier.  At the end of 2006, Deutsche Lufthansa AG
expects to increase its 49% stake in Swiss International Air
Lines Ltd. in order to take full control of the company.

                      About the Company

Headquartered in West Drayton, England, British Airways Plc --
http://www.ba.com/-- is the U.K.'s largest international  
scheduled airline, flying to over 550 destinations.  The British
Airways group consists of British Airways Plc and a number of
subsidiary companies including in particular British Airways
Holidays Limited and British Airways Travel Shops Limited.

                        *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


BRITISH AIRWAYS: Sells 14.6% Stake in WNS Unit for US$96 Million
----------------------------------------------------------------
British Airways sold its 14.6 percent shareholding in WNS
(Holdings) Ltd. on July 26 for US$96 million (GBP52 million), as
part of WNS' initial public offering.

The airline will report a gain on disposal of approximately
GBP48 million in second quarter.  Proceeds of the sale will be
used to repay existing gross debt amounting to GBP4.1 billion at
March 31, 2006.

                           About WNS

WNS (Holdings) Ltd. provides data, voice and analytical services
in India and will continue to provide services such as data
processing and revenue accounting on behalf of British Airways.  
British Airways set up the operating company as a wholly owned
subsidiary in 1996.  The controlling share of this company was
sold to Warburg Pincus in May 2000 to focus and develop the
company further.  

                       About the Company

Headquartered in West Drayton, England, British Airways Plc --
http://www.ba.com/-- is the U.K.'s largest international  
scheduled airline, flying to over 550 destinations.  The British
Airways group consists of British Airways Plc and a number of
subsidiary companies including in particular British Airways
Holidays Limited and British Airways Travel Shops Limited.

                        *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


CITIZEN SECURITY: Appoints Robert Cook as Administrator
-------------------------------------------------------
Robert Edward Caunce Cook of UHY Hacker Young was appointed
administrator of Citizen Security Services Limited (Company
Number 05508648) on July 7.

The administrator can be contacted at:

         UHY Hacker Young
         St James Buildings
         79 Oxford Street
         Manchester
         Greater Manchester M1 6HT
         United Kingdom
         Tel: 0161 236 6936
         Fax: 0161 228 0117
         E-mail: e.cook@uhy-uk.com

Citizen Security Services Limited can be reached at:

         Hytech Industrial Park 1
         Peel Lane
         Manchester
         Lancashire M8 8RJ
         United Kingdom
         Tel: 0161 831 7595  


CORNERSTONE TITAN: Fitch Rates GBP3.5 Million Class J Notes at B
----------------------------------------------------------------
Fitch Ratings assigned final ratings to Cornerstone Titan 2006-1
PLC's floating-rate notes due April 2015.

   -- GBP393.4 million Class A: AAA;
   -- GBP0.1 million Class X: AAA;
   -- GBP49.9 million Class B: AAA;
   -- GBP20.3 million Class C: AA;
   -- GBP25.5 million Class D: AA;
   -- GBP20.7 million Class E: A;
   -- GBP31.4 million Class F: BBB;
   -- GBP13.8 million Class G: BBB-;
   -- GBP5.5 million Class H: BB; and
   -- GBP3.5 million Class J: B.

The final ratings reflect the credit enhancement provided to
each Class by the subordination of Classes junior to it, the
positive and negative features of the underlying collateral, and
the integrity of the legal and financial structures.  The
ratings address the timely payment of interest on the notes and
the ultimate repayment of principal by final legal maturity in
April 2015.

Initial credit enhancement for the Class A notes (28.8%) is
provided by subordination of the Class B, C, D, E, F, G, H and J
notes.  Likewise, initial credit enhancement for the Class B
(21.4%), Class C (17.8%), Class D (13.3%), Class E (9.6%), Class
F (4%), Class G (1.6%) and Class H (0.6%) is provided by the
subordination of those notes junior to them.

This transaction is a securitization of six whole commercial
mortgage loans and four senior A tranches of commercial mortgage
loans, with four originated by Credit Suisse, five by Capmark
Bank Europe PLC and one by the Anglo Irish Bank Corporation.

The total principal balance outstanding of the pool is
GBP564,266,461 and the initial weighted average loan-to-value
ratio is 76%.  Nine of the 10 loans are secured by single
properties, comprising 93.2% of the pool by initial balance; six
of these loans are secured by single properties occupied by
single tenants.  

Four of the single tenants have an investment-grade rating,
although one of these tenants no longer occupies the property
concerned.  Although the portfolio benefits from a relatively
strong weighted average unexpired lease term of 10.2 years,
should any of the tenants occupying properties which secure the
single tenant loans choose not to renew its lease or default on
its rental payments, the ratings of the notes may be affected.

Interest on the notes will be paid quarterly in arrears,
commencing in October 2006.  Scheduled repayment of principal on
the loans will be distributed sequentially as the loans
themselves amortize, although prepaid principal and final bullet
repayments will be distributed on a modified pro rata basis for
as long as a sequential trigger has not been breached.

The transaction structure does not include a liquidity facility
to cover interest and principal shortfalls on the notes and
certain loan level expenses; instead, under the servicing
agreement, the advance provider and, to the extent that it is
required to do so, the back-up advance provider, will be
required to advance cash to the issuer to cover such shortfalls
and expenses.

This is the first European CMBS transaction structure
incorporating servicing advances in lieu of a liquidity
facility, although it is a standard feature of US CMBS
transactions.


DACAL ENGINEERING: Financial Woes Prompt Voluntary Liquidation  
--------------------------------------------------------------
Dacal Engineering Co. Limited is voluntarily liquidating its
assets after creditors proved that it could no longer continue
its operations due to liabilities.

Rosalind Mary Hilton of Adcroft Hilton was appointed Liquidator.

The company can be reached at:

         Dacal Engineering Co. Limited
         Dacal
         Scafell Road
         Queensway Industrial Estate
         Lytham St. Annes
    Lancashire FY8 3HE
    United Kingdom
    Tel: 01253 789 944
    Fax: 01253 737 040


DAVISON ENGINEERING: Names Edwin James Kirkwood as Administrator
----------------------------------------------------------------
Edwin James Kirkwood of EJK Associates Limited was named
administrator of Davidson Engineering (North East) Limited
(Company Number 03257511) on June 29.

The administrator can be reached at:

         EJK Associates Limited
         2 Church Court
         Morley
         Leeds
         West Yorkshire LS27 9TN
         United Kingdom
         Tel: 0113 253 5232
         Fax: 0113 253 5953
         E-mail: edwin.kirkwood@ejkassociates.co.uk

Headquartered in Cleveland, United Kingdom, Davidson Engineering
(North East) Limited is engaged in general mechanical
engineering.


DESIGNGUIDE LTD: Taps Kikis Kallis to Liquidate Assets
------------------------------------------------------
Kikis Kallis of Kallis & Co. was appointed Liquidator of
Designguide Limited on May 8 after creditors resolved to wind up
the company.

The company can be reached at:

         Designguide Limited
         8 South Molton Street
         London W1K 5QQ
         United Kingdom
         Tel: 020 7629 9617
         Fax: 020 7749 1057


DISPEC ANODIZING: Taps DTE Leonard Curtis to Administer Assets
--------------------------------------------------------------
J. M. Titley and A. Poxon of DTE Leonard Curtis were appointed
joint administrators of Dispec Anodizing Limited (Company Number
04112457) on July 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.

Headquartered in Barnoldswick, United Kingdom, Dispec Anodizing
Limited treats and coats metals.


EASTMAN KODAK: S&P Places B+ Rating on Watch Negative
-----------------------------------------------------
Standard & Poor's Ratings Services placed its B+ credit rating
on Eastman Kodak Co. on CreditWatch with negative implications.  
The Rochester, N.Y.-based imaging company had US$3.5 billion in
debt as of June 30.
     
"Standard & Poor's is concerned that currently weak
profitability and a slower-than-anticipated revenue growth in
the company's emerging digital business will not offset the
rapid decline in its traditional business," said Standard &
Poor's credit analyst Tulip Lim.

Kodak has announced that it anticipates digital revenue growth
for full-year 2006 slowing to 10%, compared with its previous
expectation of 16%-22%.  Digital revenue increased only 6% in
the second quarter of 2006.  In its traditional business, the
company expects a 22% decline in revenues, at the higher end of
its previously forecast decline of between 16% and 22%.
     
In resolving the CreditWatch listing, we will include an updated
assessment of the company's near- and intermediate-term profit
and cash flow potential in light of the difficult operating
environment, competition, and slower-than-expected digital sales
growth.  S&P's evaluation will also consider the magnitude and
use of proceeds from the potential sale of Kodak's Health group
and the burden of the company's unfunded postretirement benefit
obligations on its financial profile.


EQUIOS LTD: Appoints Charles Moore as Liquidator
------------------------------------------------
Charles Moore of Moore & Co. was appointed Liquidator of Equios
Limited during an extraordinary general meeting on May 4.

The company can be reached at:

         Equios Limited
         Coble Dene
    North Shields
    Tyne and Wear NE296DE
    United Kingdom
    Tel: 0870 870 2830
    Fax: 0870 870 2840


GENSEC LIMITED: Brings In DTE as Joint Administrators
-----------------------------------------------------
J.M. Titley and A. Poxon of DTE Leonard Curtis were appointed
joint administrators of Gensec Limited (Company Number 05039609)
on July 5.

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.

Headquartered in Manchester, United Kingdom Gensec Limited
offers security services.


GLOSS IMAGE: Names Joint Administrators from Begbies Traynor
------------------------------------------------------------
Paul Stanley and Gary Norton Lee of Begbies Traynor were
appointed joint administrators of Gloss Image Limited (Company
Number 05268925) on July 6.

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

Gloss Image Limited can be reached at:

         Churwell Vale
         Shaw Cross Business Park
         Dewsbury
         West Yorkshire WF12 7RD
         United Kingdom
         Tel: 01924 451 881
         Fax: 01924 456 864


HEATING & VENTILATION: Names Ian Pattinson Liquidator
-----------------------------------------------------
Ian Pattinson was named Liquidator of Heating & Ventilation
Services Limited on May 10 after creditors agreed to wind up the
company.

The company can be reached at:

         Heating & Ventilation Services Limited
    12 Newfield Close
    Solihull
    West Midlands B91 2SH
    Tel: 0121 711 1677   


JUBILEE CDO: S&P Assigns BB- Rating to EUR17-Mln Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR400 million senior secured floating-
rate notes to be issued by Jubilee CDO VI B.V., a special
purpose entity.
  
The ratings reflect:

   -- commensurate credit enhancement in the form of
overcollateralization and subordination,

   -- a diversified collateral pool of loans and derivative
financial instruments,

   -- currency risk protections, strong collateral investment
guidelines,

   -- the expected bankruptcy-remoteness of the issuer, and

   -- various amortization triggers.
  
At closing, Jubilee CDO VI will issue floating-rate notes and
invest the proceeds in a portfolio of predominantly senior-
secured leveraged loans.  The transaction has a reinvestment
period of six years and the investment manager will be Alcentra
Ltd.
  
Jubilee CDO VI is expected to be a bankruptcy-remote, private
company with limited liability, incorporated under the laws of
The Netherlands.  Its only purpose is to acquire the portfolio,
issue the notes, and engage in certain related transactions.
  
This will be the 11th European CDO transaction managed by
Alcentra.  Earlier deals included Blue Eagle CDO I S.A., Hamlet
I Leveraged Loan Fund B.V., and the first five Jubilee CDO
transactions.
  
                       Ratings List
                    Jubilee CDO VI B.V.
        EUR400 Million Senior Secured Floating-Rate Notes

                          Prelim.        Prelim.
           Class          rating         amount (Mil. EUR)
           -----          ------         ------
           A              AAA             263.00
      B              AA               32.00
      C              A                27.00
      D              BBB-             21.00
      E              BB-              17.00
      Subordinated   NR               40.00
  
           NR-Not rated.


KRISPY KREME: Resolves Suit with Southern California Franchisee
---------------------------------------------------------------
Krispy Kreme Doughnuts Inc. and its wholly-owned subsidiary,
Krispy Kreme Doughnut Corporation, reached agreements with their
Southern California franchisee, Great Circle Family Foods, LLC,
on an integrated transaction involving the settlement of all
pending litigation between the parties.  

As part of the transaction, Southern Doughnuts, LLC, a wholly-
owned subsidiary of KKDC, will acquire at closing three of Great
Circle's stores located in Burbank, Ontario and Orange,
California, together with the related franchise rights.

Southern Doughnuts has agreed to pay Great Circle US$2.9 million
for the acquired stores and related assets, with US$400,000
having already been paid upon the signing of the agreements and
US$2.5 million to be paid upon the parties' satisfaction of
certain closing conditions.  The parties anticipate closing the
transaction in mid-to-late August.  Under the agreements, Krispy
Kreme, GCFF and related parties exchanged mutual releases and
dismissals regarding he pending litigation and arbitration,
which releases and dismissals will remain in effect unless
Southern Doughnuts fails to remit the balance of the
consideration owed.

In addition, the parties contemplate negotiating and entering
into an option agreement under which Krispy Kreme will have the
option to acquire 100% of the equity of GCFF for nominal
consideration, exercisable following a due diligence period to
be agreed to by the parties.

"This agreement is another step in the turnaround of Krispy
Kreme," said Daryl Brewster, President and Chief Executive
Officer of Krispy Kreme.  "We look forward to gaining the rights
to several profitable stores in the Southern California market
and continuing to serve our customers there."

                        About Krispy Kreme                   

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme  
(NYSE: KKD) -- http://www.krispykreme.com/-- is a leading  
branded specialty retailer of premium quality doughnuts,
including the Company's signature Hot Original Glazed.  There
are currently approximately 300 Krispy Kreme stores and 90
satellites operating systemwide in the U.S., Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.  The
Debtor operates six out of the approximately 360 Krispy Kreme
stores and 50 satellites located worldwide.  The Company filed
for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case
No. 05-14268).  M. Blake Cleary, Esq., Margaret B. Whiteman,
Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt &
Taylor, LLP, represent the Debtor in its restructuring efforts.  
When the Debtor filed for protection from its creditors, it
estimated US$10 million to US$50 million in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-
00932).  The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana.  Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts.  When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.

Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


LOCKS OF EXETER: Begins Liquidation Procedure  
---------------------------------------------
Locks of Exeter Limited is voluntarily liquidating its assets
after creditors passed on May 5 a resolution to wind up the
company.

Moira C. Fitzpatrick of MCF Business Rescue and Insolvency was
appointed Liquidator.

The company can be reached at:

         Locks of Exeter Limited
         Unit 5
         Hennock Road North
         Marsh Barton Trading Estate
         Exeter
         Devon EX2 8NJ
    United Kingdom
    Tel: 01392 257 990
    Fax: 01392 422 198


LONDON WALL: Moody's Rates EUR28-Mln Class E Notes at Ba1
---------------------------------------------------------
Moody's Investors Service assigned these ratings to Notes issued
by London Wall 2006-1 Ltd. transaction:

   -- EUR124,000,000 Class A Notes: Aaa;
   -- EUR76,000,000 Class B1 Notes: Aa2;
   -- US$30,000,000 Class B2 Notes: Aa2;
   -- EUR36,000,000 Class C Notes: A2;
   -- EUR36,000,000 Class D Notes: Baa2; and
   -- EUR28,000,000 Class E Notes: Ba1.

The ratings of the notes are based upon:

   -- an assessment of the credit quality of the underlying
entities,

   -- the definition of credit events affecting the notes,

   -- the initial subordination of the threshold amount relative
to the Class E notes, the Class E notes relative to the
Class D notes, the Class D notes relative to the Class C
notes, the Class C notes relative to the Class B1 and B2
pari passu notes and the Class B1 and B2 pari passu notes
relative to the Class A notes,

   -- the legal and structural integrity of the transaction.

London Wall 2006-1, Ltd. is a funded synthetic transaction,
arranged by Deutsche Bank AG London, in which investors are
exposed to the credit risk related to a portfolio of corporate
senior loans, including syndicated loans, guarantees, letters of
credit, or revolving credit facilities, to companies rated or
mapped at least Ba2.  A currency swap was put in place between
the Issuer and Deutsche Bank to swap exchanges in EUR to US$ for
the payments under the Class B2 notes.  

The credit risk transferred by Deutsche Bank AG through this
transaction is related to a total portfolio of EUR 4billion,
mainly European and U.S. reference entities.  This reference
pool is made up initially of 179 separate obligor groups.  Its
weighted average rating is Baa2.  Throughout the replenishment
period of 4 years, Deutsche Bank AG will be bound by certain
eligibility and portfolio criteria, including a Moody's CDOROM
test.


NEMUS FUNDING: Moody's Assigns Ba3 Rating to Class E Notes
----------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
the Notes issued by NEMUS Funding No.1 P.L.C.:

   -- GBP35,730,000 Class A Floating Rate Notes due 2014: Aaa;
   -- GBP44,840,000 Class B Floating Rate Notes due 2014: Aa1;
   -- GBP35,905,000 Class C Floating Rate Notes due 2014: A1;
   -- GBP40,375,000 Class D Floating Rate Notes due 2014: Baa3;
and
   -- GBP17,330,000 Class E Floating Rate Notes due 2014: Ba3.

Moody's has not assigned a rating to the Class F Notes of the
Issuer.

The ratings on the Notes are based upon:

   -- the junior ranking position of the Notes relative to the
Senior Credit Default Swap of GBP 713,456,000;

   -- Moody's assessment of the real estate quality and  
characteristics of the underlying property portfolio;

   -- a loan-by-loan analysis of the pool of reference
obligations backing the Senior CDS and the Notes;

   -- the partial borrower level interest rate hedging provided
by HSBC Bank PLC; and

   -- the legal and structural characteristics of this issue.

This partially funded, synthetic transaction represents the
securitisation of 23 commercial mortgage loans, originated by
HSBC Bank PLC.  The loans are primarily secured by first ranking
legal mortgages on 192 commercial properties, first ranking
security over units for three properties and cash collateral for
certain loans.  The properties are located in the United Kingdom
with 74.4 per cent located in Central London.  55.5 per cent of
the portfolio by market value comprises office property with
other uses including industrial, retail and hotel.  

Key strengths of the pool are:

   -- the weighted average underwriter's loan-to-value ratio of
56.4%; and

   -- the loan diversity relative to recent CMBS conduit
transactions.

Key weaknesses include:

   -- refinancing risk plus tenant rollover risk,
   -- asset concentration risk, and
   -- significant unhedged exposure to interest rate movements.  

In addition, the transaction allows for an initial 18 months
reinvestment period for additions subject to Moody's rating
confirmation.

The ratings of the Notes address the expected loss posed to
investors by the legal final maturity.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal with respect to the Notes by the legal
final maturity date.  Moody's ratings address only the credit
risks associated with the transaction.  Other non-credit risks
have not been addressed, but may have a significant effect on
yield to investors.


PIMS ENTERPRISES: Taps Menzies & David Rubin as Administrators
--------------------------------------------------------------
Asher Miller of David Rubin & Partners and James Godefroy and
Andrew Stoneman of Menzies Corporate Restructuring were
appointed joint administrators of PIMS Enterprises Limited
(Company Number 04477317) on July 5.

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

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

PIMS Enterprises Limited can be reached at:

         Burnt Mills
         Basildon
         Essex SS13 1LJ
         United Kingdom
         Tel: 01268 530 100


REFCO INC: Court to Consider Excl. Period Requests on Sept. 12
--------------------------------------------------------------
The Hon. Robert D. Drain of the United States Bankruptcy Court
for the Southern District of New York adjourned, to 10 a.m. on
Sept. 12, the hearing to consider Refco Inc., and its debtor-
affiliates' request to extend their:

    * Exclusive Plan Filing Period to Sept 1, 2006; and
    * Exclusive Solicitation Period to Oct. 31, 2006.

The Court had previously adjourned the hearing from June 27 to
July 20.

                       About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


REFCO INC: Ch. 11 Trustee Hires Goldin & AP as Crisis Managers
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorizes Marc Kirschner, as Chapter 11 trustee of Refco
Capital Markets, Ltd.'s estate, to employ Goldin Associates,
LLC, and AP Services, LLC, as crisis managers for RCM, under the
terms of the Trustee's engagement letters with the two firms,
dated May 19 and May 22, 2006.

For the avoidance of doubt, Judge Robert Drain permits Goldin
and APS to serve the Debtors' interests, and against the RCM's
interests, without restraint, notwithstanding their engagement
by the U.S. Trustee

RCM will compensate Goldin and APS under the Engagement Letters.

Helder P. Pereira, Esq., at Bingham McCutchen LLP, in New York,
recounts that, on December 12, 2005, and on March 17, 2006, the
Bankruptcy Court entered orders authorizing the Debtors to
employ AP Services and Goldin as their crisis managers.

Pursuant to their existing employment arrangements with the
Debtors, neither Goldin nor APS provides employees directly to
RCM.  RCM has no employees of its own but instead draws on the
services of executives and employees of other Debtor entities,
including those provided by Goldin and APS.

The Debtors have previously employed the Goldin & APS Employees
on the basis that those employees are critical to the Debtors'
chances of reaching a successful resolution of the chapter 11
cases.  The issues pertaining to RCM are no less complex than
those applicable to the cases as a whole, Mr. Pereira asserts.

Prior to the RCM Trustee's appointment, the Goldin & APS
Employees provided these services to RCM, including:

   (a) assisting with the management of the bankruptcy process,
       including evaluating and implementing strategic and
       tactical options through the proceedings;

   (b) developing and implementing cash management strategies,
       tactics and processes;

   (c) coordinating information requests and responses to lender
       groups and other parties-in-interest in the bankruptcy
       process;

   (d) assisting with the preparation of the statement of
       affairs, schedules, monthly operating reports and other
       regular reports required by the Bankruptcy Court as well
       as claims processes; and

   (e) assisting with other matters as may be requested that
       fall within the expertise of Goldin and APS.

Mr. Pereira says that the appointment of a Chapter 11 Trustee
has not changed RCM's need for APS' and Goldin's services.  
Moreover, the Bankruptcy Court has indicated that the RCM
Trustee should "focus on the key issues pertaining to a plan."

To maintain that focus, the RCM Trustee will require the
assistance of professionals with respect to various aspects of
administering or winding down the RCM estate.  Thus, the RCM
Trustee seeks to continue the use of the Goldin & APS Employees
in a manner largely consistent with the past practices of the
Debtors' cases.

The Engagement Letters alter slightly the terms of the existing
engagements of Goldin and APS by the Debtors.  The alterations
clarify:

   (i) the degree to which Goldin & APS Employees will report to
       the RCM Trustee in respect of RCM-specific matters; and

  (ii) the rights of the RCM Trustee in respect of allocations
       of the fees and expenses of the Goldin & APS Employees.

The RCM Trustee clarifies that the Goldin & APS Employees will
not be employed as RCM-specific employees.  The RCM Trustee
merely wants to continue existing relationships through which
the Goldin & APS Employees provide services for and on behalf of
RCM.  The RCM Trustee does not seek to employ any new or
different members or associates of Goldin and APS as RCM-
specific employees.

Given that the Goldin & APS Employees will continue to provide
similar services to the non-RCM Debtors, it is possible that the
Goldin & APS Employees may take actions or positions that are
adverse to RCM, Mr. Pereira relates.

The Engagement Letters expressly contemplate that possible
conflict, and they contain a related waiver from the RCM Trustee  
-- the services to the non-RCM Debtors will not be a breach of
the Engagement Letters nor may the RCM Trustee seek to
disqualify the Goldin & APS Employees from providing the
services or being compensated for them.

                       About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


SCOTTISH RE: S&P Lowers Counterparty Credit Rating to BB+
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Scottish Re Group Ltd., Scottish Re's subsidiaries, and some
related issues.  Specifically, the counterparty credit rating on
Scottish Re was lowered to 'BB+' from 'BBB-', and the
counterparty credit and financial strength ratings on Scottish
Re's operating companies were lowered to 'BBB+' from 'A-'.  All
of these ratings remain on CreditWatch with negative
implications, where they were placed on July 31.
      
"Reinsurance companies rely heavily on customer confidence, and
negative perceptions in the marketplace regarding Scottish Re
have increased significantly in the past several days," said
Standard & Poor's credit analyst Neil Strauss.

"This has weakened Scottish Re's competitive position."  There
is little question that it will be more difficult for the
company to attract new clients, potentially significantly so.  
Scottish Re's level of earnings will be lower, as pricing,
collateral requirements, and funding costs are negatively
affected.
     
Standard & Poor's believes there is substantial value in the
underlying businesses.  However, because of the anticipated loss
and resulting negative effect on Scottish Re's financial
flexibility, there is a need for capital to be raised to augment
anticipated liquidity and collateral needs over the next several
quarters, including potential debt redemption in December.
     
The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and competitive position of the
company.


SEVERSTAL: Hires Investment Banks for London Stock Listing
----------------------------------------------------------
OAO Severstal has hired Citigroup Inc., UBS AG and Deutsche Bank
AG for a share listing in London that could value the company at
about US$15 billion, Alistair MacDonald and Geoffrey T. Smith
writes for The Wall Street Journal citing an unnamed source.

Severstal expects to raise as much as US$1.5 billion in the
third quarter of 2006 from the share sale, the source told WSJ.

A low volume of Severstal's shares is already listed in Moscow
and trades at a discount to London-listed rivals such as Evraz
Group SA and OAO Novolipetsk Steel, the paper relates.

"The deal makes sense as it will create an opportunity for the
stock to re-rate, and give the company a currency for deal-
making," Michael Kavanagh, an analyst at MDM Bank in Moscow,
told WSJ.

                      Failed Arcelor Deal

As reported in TCR-Europe on June 26, Arcelor S.A.'s Board of
Directors ditched a pre-signed merger agreement with Severstal
over an improved offer from Indian steelmaker Mittal Steel.

Until the deal, Arcelor had recommended a EUR13 billion merger
with Severstal, saying that an Arcelor-Severtal fusion would be
more efficient and productive than an Arcelor-Mittal union.  

The planned merger, however, received stiff opposition from some
Arcelor shareholders, who had expressed concerns that Alexei
Mordashov, Severstal's majority owner, would end up controlling
the merged company.  Severstal had improved the terms of
proposed merger, opting to own 25% of the new company rather
than 32% as previously agreed.

                        About Severstal

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

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

                        *     *     *

As reported in TCR-Europe on July 5, Standard & Poor's Ratings
Services kept its 'B+' long-term corporate credit rating on
Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

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


SOLVECREST LTD: M. S. E. Solomons Leads Liquidation Procedure
-------------------------------------------------------------
M. S. E. Solomons of SPW Poppleton & Appleby was appointed
Liquidator of Solvecrest Limited on May 9 after creditors
decided to wind up the company.

The company can be reached at:

         Solvecrest Limited
    3 Seymour Road
    London W4 5ES
    United Kingdom
    Tel: 020 8747 1515
    Fax: 0870 458 1813


SOUTH EAST: Appoints Administrators from Berg Kaprow
----------------------------------------------------
Stewart Trevor Bennett and James Preston Bradley of Berg Kaprow
Lewis LLP were appointed joint administrators of South East
Tipping Limited (Company Number 03705675) on July 6.

The administrators can be reached at:

         Berg Kaprow Lewis LLP
         35 Ballards Lane
         London N3 1XW
         United Kingdom
         Tel: 020 8922 9222
         Fax: 020 8922 9223
         Enquiry Line: 020 8922 9121

South East Tipping Limited can be reached at:

         Old London Road
         Farningham
         Dartford DA4 0JN
         United Kingdom
         Tel: 01322 865 501
         Fax: 01322 860 235


STRATTON FYNES: Hires Stephen Mark Rout to Liquidate Assets
-----------------------------------------------------------
Stephen Mark Rout of Stephen M. Rout & Company was appointed
Liquidator of Stratton Fynes & Co. Limited on May 8.

The company can be reached at:

         Stratton Fynes & Co. Limited
         50 Hall Gate
         Doncaster
         South Yorkshire DN1 3PB
         United Kingdom
         Tel: 01302 321 200
         Fax: 01302 321 700


TOMMY TAYLOR'S: Creditors Opt to Voluntary Liquidation
------------------------------------------------------
Creditors of Tommy Taylor's Limited opted on May 8 to place the
company into voluntary liquidation.

Geoffrey John Kirk was appointed Liquidator.

The company can be reached at:

    Tommy Taylor's Limite
    43 Station Road
    Taunton
    Somerset TA1 1NZ
    United Kingdom
    Tel: 01823 325 225


UNITED WORLDWIDE: Names David Alexander Hole as Administrator
-------------------------------------------------------------
David Alexander Hole of Alexander Business Consulting was named
administrator of United Worldwide Telecom Limited (Company
Number 03764046) on July 4.

The administrator can be reached at:

         Alexander Business Consulting
         3000 Manchester Business Park
         Aviator Way
         Manchester (Airport) M22 5TG
         United Kingdom

United Worldwide Telecom Limited can be reached at:

         Wilmslow House
         Grove Way
         Water Lane
         Wilmslow
         Cheshire SK9 5AG
         United Kingdom
         Tel: 0870 750 0320
         Fax: 01625 539 153


VALLEY WINDOWS: Brings In Joint Liquidators from Lines Henry
------------------------------------------------------------
Neil Henry and Michael Simister of Lines Henry were appointed
Joint Liquidators of Valley Windows & Conservatories (Northern)
Limited on May 9.

The company can be reached at:

         Valley Windows & Conservatories (Northern) Limited
         280 Leigh Road
         Atherton
         Manchester M46 0PN
    United Kingdom
    Tel: 01942 887 222


* Fitch Expects Default Rates Increase on European Second Lien
--------------------------------------------------------------
Fitch Ratings saw weak recovery prospects for European second
lien as the leveraged credit market continues to see higher
leverage and more aggressively back-ended capital structures.  

Fitch expects an increase in default rates over next 12-18
months, as leveraged companies face up to a more challenging
economic environment, and stresses that investors should focus
increasingly on recovery prospects when considering new lending
opportunities.

"Although we have not yet recorded a default on a European
Fitch-rated second lien transaction, during H106 the Issuer
Default Ratings of two second lien issuers were rated at CCC or
below, indicating a higher probability of default," Michelle De
Angelis, Director in Fitch's Leveraged Finance team commented.

"We expect limited recoveries for the majority of second lien
transactions, based on Fitch's view of distressed enterprise
valuation multiples and the current record high financial
leverage levels.  This is reflected in the 89% of Fitch-rated
European second lien tranches being awarded a Recovery Rating of
RR5 or below," Mr. De Angelis added.

A Recovery Rating of RR5 or below indicates expected recoveries
of 30% or less, which is lower than the historical average for
second-secured debt.

Although the number of issuers with an Issuer Default Rating of
CCC or below is relatively small for transactions involving
second lien, this is to be expected given the less mature nature
of this market when compared to senior secured debt, mezzanine
or high yield.

Nonetheless, there is a rising trend in the probability of
default, as the large volume of recently arranged transactions
employing unprecedented leverage levels enter a more challenging
economic environment, where demand conditions are vulnerable to
rising short-term interest rates and cost pressures mount from
sustained high raw materials prices.

Fitch estimates that the high debt levels prevalent in the
market, particularly for transactions involving second lien
where the average total leverage was 6.5x in Q206, combined with
reasonably conservative assumptions regarding enterprise
valuations in a distress scenario at the mid-point of the credit
cycle, will likely result in much more limited recoveries on
average for junior secured debt instruments, including second
lien and mezzanine.

European leveraged credit market conditions remain buoyant, with
unprecedented liquidity from collateralized loan obligations and
hedge funds driving up average leverage levels while downward
pricing pressure continues for both senior and junior secured
instruments.  Average total leverage in all Fitch-rated second
lien deals rose to a new high of 6.5x in Q206, compared to 5.9x
for the overall leveraged market in Q206.  

In H106, the sharp contrast between risk and reward for second
lien loans emerged more strongly, as second lien pricing once
more dipped below 500bps on several deals.  This is a notable
reversal from the re-pricing that followed troubled syndications
for Debenhams and Sanitec in 2005.

European second lien volumes remained strong in H106 at EUR3.13
billion compared to EUR2.15 billion in H105 (an increase of
45%), but still somewhat behind the high of EUR3.6 billion in
H205.  This brings total trailing 12 months European second lien
issuance to EUR6.73 billion.

Although second lien appears to be an accepted instrument in the
leveraged market, with even much smaller transactions
incorporating an element of this structure, it has yet to reach
the universal acceptance level of mezzanine, and in fact
continues to feature predominantly as a complement to mezzanine
debt.  

In this regard, a dedicated pool of second lien investors has
yet to emerge, compared to senior secured and mezzanine loan
products, which enjoy deep support from buy and hold CLO and
mezzanine funds.  Rather, it continues to rely on an
opportunistic investor base, predominantly hedge funds, or from
cross-selling with mezzanine tranches.


                           *********


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.


                 * * * End of Transmission * * *