TCREUR_Public/060807.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Monday, August 7, 2006, Vol. 7, No. 155

                            Headlines


A U S T R I A

A & O: Vienna Court Orders Closing of Business
ARGE -CONSTRUCTION: Creditors Will Receive 10.77% Allocation
BARSONY: Vienna Court Orders Closing of Business
BCS FITNESS: Property Manager Declares Insufficient Assets
CLEAN - MASTER: Creditors' Meeting Slated for August 22

ECKL: Vienna Court Orders Closing of Business


F R A N C E

ATMEL CORP: Completes US$140-Million Atmel Grenoble Sale to e2v
EUROTUNNEL SA: S&P Keeps Junk Secured Rating on Watch Negative


G E R M A N Y

ALANAS GMBH: Claims Registration Ends August 22
BRENNTAG HOLDING: S&P Keeps B+ Credit Rating on Watch Negative
COMPTOIR GMBH: Claims Registration Ends August 18
FORM-CONCEPT: Creditors' Meeting Slated August 15
FREIFLACHENBAU VETTER: Claims Registration Ends August 22

GBV GETRANKE: Claims Registration Ends August 20
GESTINI INNOVATIONEN: Claims Registration Ends August 11
I.D. REISEN: Claims Registration Ends August 18
MSLG GMBH: Claims Registration Ends August 16
NRG ENERGY: Earns US$203 Million in Second Quarter 2006

NRG ENERGY: Fitch Upgrades Rating on Senior Notes to B+
OERDER HAUSTECHNIK: Claims Registration Ends August 20
PROMETHEUS IMMOBILIEN: Creditors' Meeting Slated for August 24


I T A L Y

BANCA POPOLARE: Weak Finances Prompt S&P to Cut Rating to BB
FIAT SPA: Fitch Revises Outlook to Positive & Keeps IDR at BB-


K A Z A K H S T A N

AYAN-KOS: Creditors Must File Claims by Sept. 1
AZIAINTERKOM LTD: Creditors Must File Claims by Sept. 1
HAKS: Creditors Must File Claims by Sept. 4
LUKIR: Proof of Claim Deadline Slated for Sept. 1
PC: Proof of Claim Deadline Slated for Sept. 4

SHYMKENTAGROSERVIS: Claims Registration Ends Sept. 4
TAISOIGAN: Claims Registration Ends Sept. 1
TAKT-AVTO: Creditors' Claims Due Sept. 1
VEST: Creditors' Claims Due Sept. 4
VIZ & C: Creditors' Claims Due Sept. 4


K Y R G Y Z S T A N

C-AND-C PLAZA: Proof of Claim Deadline Slated for Sept. 13


N E T H E R L A N D S

DELTA EYE: Ticonderoga Wins Judgment Against Kardux Enterprises


N O R W A Y

FALCONBRIDGE LTD: Bid Changes Prompt S&P's Positive Watch


P O R T U G A L

COGECO CABLE: Acquisition Spurs S&P to Lower Credit Rating to BB


R U S S I A

AGROTORG: S&P Affirms BB- Long-Term Corporate Credit Rating
BELEVEEVSKIY ENGINEERING: P. Krivov to Manage Assets
BELEZINSKIY PARQUET: A. Shaydullin to Manage Assets
BELGORODSKIY ECOLOGICAL: Court Starts Bankruptcy Supervision
BUILDER: Kurgan Court Starts Bankruptcy Supervision
CHEPETSKAYA FURNITURE: Court Starts Bankruptcy Supervision

DAVLEKANOVSKY GRAIN PRODUCT: V. Palaksov to Manage Assets
DOBRYNYA: Court Names I. Valvakova as Insolvency Manager
GLOBE: Krasnoyarsk Court Commences Bankruptcy Supervision
IZERBELSKAYA: Khakasiya Court Starts Bankruptcy Supervision
KAMSKAYA TRANSPORT: Court Names L. Safin as Insolvency Manager
KHUNGAROVIN: Court Names V. Sokolov as Insolvency Manager

KRASNOYARSKAYA CHEMICAL: A. Adaykin to Manage Assets
MK-126: Court Starts Bankruptcy Supervision
PAVLOVSKAYA GARMENT: Y. Ovcharenkov to Manage Assets
PYATEROCHKA HOLDING: S&P Affirms BB- Corporate Credit Rating
RODINA: Altay Court Starts Bankruptcy Supervision
STROY-MECHANIZATION: Court Starts Bankruptcy Supervision

SVYAZ-TRANSIT: Court Starts Bankruptcy Supervision
TATNEFT: Fitch Changes Outlook to Positive & Maintains IDR at B
URALSKIY FACTORY: Court Starts Bankruptcy Supervision
VOLZHSKIY BAKERY: Court Starts Bankruptcy Supervision


T U R K E Y

HSBC BANK: S&P Assigns BB/B Counterparty Credit Rating


U K R A I N E

CENTRALNIJ: Court Names S. Kitsul as Insolvency Manager
GEFEST-TRADE: Court Names Ivan Radik as Insolvency Manager
KRIVORIZHKOKSOHIMREMONT: Mikola Lukashuk to Liquidate Assets
KOZATSKIJ SHLYAH: Court Names Tax Agency as Liquidator
PLEYADA: Hortitskij Tax Agency to Liquidate Assets

SENDMARKET-HOLDING: Court Names Svitlana Bikova as Liquidator
SHEDRA: Court Names Borovik Ruslan as Insolvency Manager
VEKTOR-INTERTEH: Court Names Ivan Radik as Liquidator
ZAHIDREMBUDSERVICE: Court Names Ludmila Buchinska as Liquidator
ZOLOTE YAJTSE: Court Names Volodimir Shuba as Liquidator


U N I T E D   K I N G D O M

ADVENTURE KINGDOM: Brings In Joint Liquidators from Insol House
ATLANTIC 66: Creditors Resolve to Voluntary Liquidation
ATMEL CORP: Completes US$140-Million Atmel Grenoble Sale to e2v
BLUE ANGEL: Names Moira Fitzpatrick as Administrator
CHIQUE FASHIONS: Creditors Confirm Liquidator's Appointment

EASTMAN KODAK: Board Elects Laura G. Quatela as Vice President
EIRCOM GROUP: Moody's Lowers Corporate Family Rating to Ba3
ENESCO GROUP: Amends U.S. Credit Facility to Hike Loan Borrowing
ENESCO GROUP: Posts US$24.9 Million Net Loss in Second Qtr. 2006
FLAVOURS OF INDIA: Brings In Rothman Pantall as Administrators

FLYNN CONSTRUCTION: Taps Administrators from Begbies Traynor
FORD MOTOR: Recalls 1.2 Million Trucks, SUVs and Vans in the US
FORD MOTOR: Second Qtr. Net Loss Up to US$254MM After Revision
FORD MOTOR: Hires Keneth Leet as Strategic Advisor to Bill Ford

GLOBAL COMMODITIES: Brings In Rothman Pantall as Administrators
HOMEHUNTERS UK: Names Joint Liquidators to Wind Up Business
IMPRESSIONS OF MONMOUTH: Begins Liquidation Procedure
KRONOS INTERNATIONAL: Completes EUR400-Mln Exchange Offer
LBHR INTERNATIONAL: Taps A. J. Clark to Liquidate Assets

LONG TERM: Appoints Bishop Fleming as Joint Administrators
MISYS PLC: Shows GBP7 Million Positive Equity at May 31, 2006
MORAJ & COMPANY: Hires Joint Liquidators from Ashcrofts
P.S.A. DESIGN: Hires SFP as Joint Administrators
PRIMARY CARE: Creditors Confirm Voluntary Liquidation

RCS HAULAGE: Appoints C. H. I. Moore as Liquidator
RECRUITMENT ENTERPRISES: Joint Liquidators Take Over Operations
REFCO INC: Files June 2006 Statement of Cash Disbursements
REFCO INC: Wants Court Nod on Intercompany Debt Settlement Pact
RHEMA BUILDING: Brings In Administrators from Chantrey Vellacott

S.P.A. AEROFOILS: Robert Gibbons Begins Liquidation Procedure
SALTDEAN GARAGE: V. W. Financial Appoints Vantis as Receivers
SCOTTISH RE: Fitch Holds Negative Watch on Low-B Ratings
SCOTTISH RE: Names Nathan V. Gemmiti as General Counsel
SHARP INTERNATIONAL: Taps BDO Stoy as Joint Administrators

SQUARE SHEET: Appoints Begbies Traynor to Administer Assets
TEAMWORK PARTNERSHIP: Nominates Liquidator from Mayfields
TI AUTOMOTIVE: Australian Unit Cuts 33 Jobs
TI AUTOMOTIVE: Wins Contracts From Three Major Automakers

* AlixPartners Employees & Hellman Firm to Gain Majority Stake
* Moody's to Devise Capital Adequacy Scoring System for Banks

                            *********

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


A & O: Vienna Court Orders Closing of Business
----------------------------------------------
The Trade Court of Vienna entered an order on June 19 closing
the business of Trade LLC A & O (FN 259943w).  Court-appointed
property manager Guenther Hoedl 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. Guenther Hoedl
         c/o Dr. Andrea Simma
         Schulerstrasse 18
         1010 Viena, Austria
         Tel: 513 16 55
         Fax: 513 16 55 33
         E-mail: Hoedl@anwaltsteam.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on April 19 (Bankr. Case No. 5 S 64/06f).  Andrea Simma
represents Dr. Hoedl in the bankruptcy proceedings.


ARGE -CONSTRUCTION: Creditors Will Receive 10.77% Allocation
------------------------------------------------------------
Creditors of LLC Arge -Construction Technics will receive 10.77%
on account of their claim after the Trade Court of Vienna
approves the final decision of the property manager.

Headquartered in Vienna, Austria, the Debtor 's bankruptcy case
(Bankr. Case No. 3 S 34/06d) was removed from (Bankr. Case No.
36 S 49/04z) on March 7.


BARSONY: Vienna Court Orders Closing of Business
------------------------------------------------
The Trade Court of Vienna entered an order on June 19 closing
the business of LLC Barsony (FN 263210z).  Court-appointed
property manager Peter Pullez 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. Peter Pullez
         c/o Dr. Robert Gschwandtner
         Tuchlauben 8
         1010 Vienna, Austria
         Tel: 513 29 79
         E-mail: pullezgschwandtner@aon.at

Headquartered in Vienna, the Debtor declared bankruptcy on
June 1 (Bankr. Case No. 2 S 93/06y).  Robert Gschwandtner
represents Dr. Pullex in the bankruptcy proceedings.


BCS FITNESS: Property Manager Declares Insufficient Assets
----------------------------------------------------------
Dr. Arno Maschke, the court-appointed property manager for LLC
BCS Fitness Studio (FN 199376a), declared on June 19 that the
Debtor's property is insufficient to cover creditors' claim.

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

Headquartered in Vienna, the Debtor declared bankruptcy on
May 16 (Bankr. Case No. 2 S 83/06b).  Georg Unger represents
Dr. Maschke in the bankruptcy proceedings.

The property manager and his representative can be reached at:

         Dr. Arno Maschke
         Dr. Georg Unger
         Mariahilfer Strasse 50
         1070 Vienna, Austria
         Tel: 523 62 00
         Fax: 526 72 74
         E-Mail: schulyok-unger@csg.at


CLEAN - MASTER: Creditors' Meeting Slated for August 22
-------------------------------------------------------
Creditors owed money by KEG Clean - Master Todorovic (FN
249580f) are encouraged to attend the first creditors' meeting
at 11:10 a.m. on Aug. 22 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting 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 2 S 102/06x).  Kurt Freyler serves as
the court-appointed property manager of the bankrupt estate.
Hans Rant represents Dr. Freyler in the bankruptcy proceedings.

The property manager and his representative can be reached at:

         Dr. Kurt Freyler
         c/o Dr. Hans Rant
         Seilerstatte 5
         1010 Vienna, Austria
         Tel: 513 31 65
         Fax: 512 20 01
         E-mail: ra-kanzlei@rant-freyler.at


ECKL: Vienna Court Orders Closing of Business
---------------------------------------------
The Trade Court of Vienna entered an order on June 19 closing
the business of Private Construction Enterprise Eckl (FN
250284s).  Court-appointed property manager Guenther Hoedl
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. Guenther Hoedl
         c/o Dr. Andrea Simma
         Schulerstrasse 18
         1010 Vienna, Austria
         Tel: 513 67 03
         E-mail: Hoedl@anwaltsteam.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 9 (Bankr. Case No. 2 S 79/06i).  Dr. Andrea Simma
represents Dr. Hodl in the bankruptcy proceedings.


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


ATMEL CORP: Completes US$140-Million Atmel Grenoble Sale to e2v
---------------------------------------------------------------
Atmel Corp. concluded the sale of its Grenoble, France
subsidiary including the manufacturing facility for US$140
million to e2v technologies plc, a British corporation.

George Perlegos, chairman and chief executive officer said, "As
we previously announced on July 13, 2006, this sale represents
another milestone in Atmel's plan to consolidate its
manufacturing operations.  We remain committed to focusing
resources on our core technologies and developing leading-edge
products for growth markets,"

The Company retains rights to its patented finger-print scanning
recognition technology.  All other Grenoble products including
image sensors and aerospace qualified microprocessors are
included in the purchase by e2v.

                           About e2v

Headquartered in Chelmsford, UK, e2v - http://www.e2v.com--
designs, develops and manufactures electronic tube and sensor
components & sub-systems that are supplied to niche markets
within the three core areas of Medical & Science, Aerospace &
Defense and Commercial & Industrial.

                          About Atmel

Atmel Corp. -- http://www.atmel.com/-- (Nasdaq: ATML)
designs and manufactures microcontrollers, advanced logic,
mixed- signal, nonvolatile memory and radio frequency (RF)
components. Leveraging one of the industry's broadest
intellectual property (IP) technology portfolios, Atmel is able
to provide the electronics industry with complete system
solutions.  It is focused on consumer, industrial, security,
communications, computing and automotive markets.

                          *     *     *

Standard & Poor's Rating Services assigned its single-B long-
term foreign issuer and long-term local issuer credit ratings to
Atmel Corp. on Oct. 24, 2001, and said the outlook, at that
time, was negative.


EUROTUNNEL SA: S&P Keeps Junk Secured Rating on Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said its 'C' long-term senior
secured debt rating on Anglo-French Channel Tunnel
infrastructure operator Eurotunnel S.A.'s GBP240 million senior
secured bank loan, due 2012, remains on CreditWatch with
negative implications.

"Our decision follows the judgment by the Paris Commercial Court
to place Eurotunnel and 17 related entities under the protection
of the French law, procedure de sauvegarde," said Standard &
Poor's credit analyst Jan Willem Plantagie.

"Eurotunnel currently has a six-month stay on its debt
repayments, which is extendable at the court's discretion if no
agreement is reached."

These debt ratings on the nonguaranteed Class A, B, and C notes
issued by related special-purpose vehicle (SPV) Fixed-Link
Finance B.V. (FLF1) also remain on CreditWatch with negative
implications:

   -- Class A senior secured debt, rated 'C',

   -- Class B subordinated debt, rated 'C', and
   -- Class C junior subordinated debt, rated 'C'.

In addition, the 'C' long-term debt rating on related SPV Fixed-
Link Finance 2 B.V.'s non-guaranteed senior secured notes
remains on CreditWatch with negative implications.

All of the above ratings were placed on CreditWatch on Feb. 9,
2004.  This action followed the announcement of unspecified debt
restructuring, and factors in our concerns about intensifying
competition in the cross-Channel travel market.

Eurotunnel started legal proceedings to be placed under the
procedure de sauvegarde on July 13.  The company made GBP78
million in debt payments at the end of July 2006, and is
scheduled to make another GBP74 million of debt payments before
the end of December this year.  Under the procedure de
sauvegarde, however, Eurotunnel will not be able to make these
payments.

A relatively small interest payment is due on Aug. 15, on a
tranche of senior secured debt.  If this payment is not made,
the senior secured debt rating will be lowered to 'D'.

FLF1 and FLF2 do not fall under the procedure de sauvegarde, but
will also be affected by the stay on debt payments at
Eurotunnel.

Negotiations between Eurotunnel and its creditors will continue,
although now with the involvement of judicial administrators.

"Standard & Poor's is not aware that senior creditors have
started any substitution process and it appears that various key
parties are still working toward finding a compromise," said Mr.
Plantagie.

"Standard & Poor's will continue its discussions with management
and monitor developments."


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


ALANAS GMBH: Claims Registration Ends August 22
-----------------------------------------------
Creditors of alanas GmbH have until Aug. 22 to register their
claims with court-appointed provisional administrator Hans-Joerg
Graf.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on Sept. 25 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of 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 alanas GmbH on July 11.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         alanas GmbH
         Monschauer Road 223
         52355 Dueren, Germany

         Attn: Alexander Andreas Aschauer, Manager
         Leo-Meuser-Str. 18
         52249 Eschweiler, Germany

The administrator can be contacted at:

         Dr. Hans-Joerg Graf
         Robert Perthel Road 49
         50739 Cologne, Germany


BRENNTAG HOLDING: S&P Keeps B+ Credit Rating on Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services commented on its CreditWatch
placement of full line chemicals distributor Brenntag Holding
GmbH & Co. KG.  The 'B+' long-term corporate credit rating
remains on CreditWatch with negative implications, where it was
placed on July 25, following the announcement that the company
is to be acquired by funds advised by private equity firm BC
Partners.

The 'B+' senior secured debt rating on Brenntag's EUR1.54
billion bank loan, and 'B-' subordinated debt rating on its
EUR305 million second-lien loan also remain on CreditWatch with
negative implications.  The recovery rating of '2' on the
group's EUR1.54 billion senior secured debt had not been placed
on CreditWatch.

"S&P's preliminary evaluation of Brenntag's strategy and
financing under its new shareholder, BC partners, is that the
ratings are expected to be lowered by one notch due to the
incremental debt being incurred in connection with the buyout,
future funding requirements, and risks of executing the
company's renewed growth strategy that is likely to absorb most
of the free cash flow and keep leverage high," said Standard &
Poor's credit analyst Eve Greb.

"However, the company's track record of growth by acquisition,
increasing operating efficiency in recent years, and managing
profitably through the chemical industry price cycle somewhat
mitigate these risks," she added.

Leverage of the company will be increased assuming that the
purchase price will be financed by a rollover of existing debt
and the addition of about EUR355 million of incremental debt.
The new capital structure will most likely result in total
lease- and pension-adjusted debt to EBITDA of 6.9x, while future
deleveraging potential is seen to be small as a result of the
growth strategy.

S&P's preliminary evaluation of the proposed financing package
indicates that, despite the expected increase in senior debt
levels of EUR165 million, the recovery rating of '2' is likely
to remain unchanged, although a final determination of the
ratings will depend on a review of the revised documentation as
well as resolution of the CreditWatch placement on the corporate
credit rating.

"Assuming that the senior lender is in agreement with the
amended financing package with the change to covenants, and
waives the change of control clause, S&P expects the CreditWatch
placement to be resolved within the coming weeks," said Ms.
Greb.


COMPTOIR GMBH: Claims Registration Ends August 18
-------------------------------------------------
Creditors of Comptoir GmbH have until Aug. 18 to register their
claims with court-appointed provisional administrator Axel W.
Bierbach.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Sept. 18 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         Munich, 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 Munich opened bankruptcy proceedings
against Comptoir GmbH on July 3.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Comptoir GmbH
         Elsenheimer Str. 61
         80687 Munich, Germany

The administrator can be contacted at:

         Axel W. Bierbach
         Schwanthalerstr. 32
         80336 Munich, Germany
         Tel: 54511-0
         Fax: 54511-444


FORM-CONCEPT: Creditors' Meeting Slated August 15
-------------------------------------------------
The court-appointed provisional administrator for FORM-CONCEPT
Gastronomie GmbH, Biner Bahr, will present his first report on
the Company's insolvency proceedings at a creditors' meeting at
9:45 a.m. on Aug. 15.

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

         The District Court of Duesseldorf
         Area A 341
         3rd Floor
         Muehlenstrasse 34
         40213 Duesseldorf, Germany

The Court will also verify the claims set out in the
administrator's report at 9:25 a.m. on Sept. 5 at the same
venue.

Creditors have until Aug. 15 to register their claims with the
court-appointed provisional administrator.

The District Court of Duesseldorf opened bankruptcy proceedings
against FORM-CONCEPT Gastronomie GmbH on July 18.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         FORM-CONCEPT Gastronomie GmbH
         Attn: Theofilos Ekizoglou, Manager
         Huenefeld Road 107
         40764 Langenfeld, Germany

The administrator can be reached at:

         Dr. Biner Bahr
         Jagerhofstrasse 21-22
         40479 Duesseldorf, Germany


FREIFLACHENBAU VETTER: Claims Registration Ends August 22
---------------------------------------------------------
Creditors of Freiflachenbau Vetter GmbH have until Aug. 22 to
register their claims with court-appointed provisional
administrator Michael Hawelka.

Creditors and other interested parties are encouraged to attend
the meeting at 2:30 p.m. on Sept. 19 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 Leipzig
         Hall 145
         Leipzig, 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 Leipzig opened bankruptcy proceedings
against Freiflachenbau Vetter GmbH on June 27.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Freiflachenbau Vetter GmbH
         Frank Vetter, Manager
         Hedwig-Burgheim-Str. 10
         04157 Leipzig, Germany

The administrator can be contacted at:

         Michael Hawelka
         Nonnenstrasse 37
         04229 Leipzig, Germany


GBV GETRANKE: Claims Registration Ends August 20
------------------------------------------------
Creditors of GBV Getranke und Bier Vertriebs GmbH have until
Aug. 20 to register their claims with court-appointed
provisional administrator Hanns Poellmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Sept. 20 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 Munich
         Meeting Room 102
         Infanteriestr. 5
         Munich, 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 Munich opened bankruptcy proceedings
against GBV Getranke und Bier Vertriebs GmbH on July 4.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         GBV Getranke und Bier Vertriebs GmbH
         Hauptstr. 14
         85737 Ismaning, Germany

The administrator can be contacted at:

         Hanns Poellmann
         Prannerstr. 11
         80333 Munich, Germany
         Tel: 089/33008090
         Fax: 089/330080999


GESTINI INNOVATIONEN: Claims Registration Ends August 11
--------------------------------------------------------
Creditors of Gestini Innovationen GmbH & Co. KG have until
Aug. 11 to register their claims with court-appointed
provisional administrator Christoph Henningsmeier.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 Cuxhaven
         Hall 112
         Old Building
         Deichstr. 12 A
         27472 Cuxhaven, 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 Cuxhaven opened bankruptcy proceedings
against Gestini Innovationen GmbH & Co. KG on July 11.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Gestini Innovationen GmbH & Co. KG
         Baron of Stone Route 15
         27472 Cuxhaven, Germany

         Attn: Astrid Behrens, Manager
         Grossen Freien 11
         31275 Lehrte, Germany

The administrator can be contacted at:

         Christoph Henningsmeier
         Osdorfer Highway 230
         22549 Hamburg, Germany
         Tel: 040/8078810
         Fax: 040/807881-20


I.D. REISEN: Claims Registration Ends August 18
-----------------------------------------------
Creditors of I.D. Reisen GmbH have until Aug. 18 to register
their claims with court-appointed provisional administrator Arne
Brumm.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Sept. 8 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Magdeburg
         Hall E
         Insolvency Department
         Liebknechtstrasse 65-91
         39110 Magdeburg, 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 Magdeburg opened bankruptcy proceedings
against I.D. Reisen GmbH on July 12.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         I.D. Reisen GmbH
         Bockstrasse 11
         06484 Quedlinburg, Germany

         Attn: Ines Daumichen, Manager
         Grabengasse 10
         06484 Quedlinburg, Bulgaria

The administrator can be contacted at:

         Arne Brumm
         Jahnring 29
         39104 Magdeburg, Germany
         Tel: 0391/5971240
         Fax: 0391/5971241


MSLG GMBH: Claims Registration Ends August 16
---------------------------------------------
Creditors of MSLG GmbH have until Aug. 16 to register their
claims with court-appointed provisional administrator Stephan
Jaeger.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 6 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         Munich, 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 Munich opened bankruptcy proceedings
against MSLG GmbH on July 4.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         MSLG GmbH
         Werinherstr. 15
         81541 Munich, Germany

The administrator can be contacted at:

         Stephan Jaeger
         Leopoldstr. 139
         80804 Munich, Germany
         Tel: 089/361930-750
         Fax: 089/361930-999


NRG ENERGY: Earns US$203 Million in Second Quarter 2006
-------------------------------------------------------
NRG Energy Inc. reported second quarter 2006 operating income of
US$416 million versus US$43 million for the second quarter of
2005. Cash flow from operations was US$238 million, including a
US$42 million reduction in the amount of cash collateral posted
in support of trading operations, compared to US$27 million
during the same period last year which included a collateral
outflow of US$179 million.

For the six months ended June 30, 2006, operating income was
US$626 million versus US$90 million for the same period last
year.  Cash flow from operations year to date was US$604 million
for 2006, an increase of US$513 million over 2005.

Net income for the three months ended June 30, 2006, was
US$203 million compared to a net income of US$24 million for the
same period in 2005.  For the six months ended June 30, the
Company reported net income of US$229 million compared to a
US$47 million net income for the same period last year.

Net income in 2006 included US$105 million in after tax
refinancing expenses incurred as part of the first quarter
closing of the Texas Genco acquisition, partially offset by
US$49 million in after-tax one-time gains related to the
resolution of disputes and litigation.  The quarter-on-quarter
and year-to-date operating income increases largely reflect the
February 2, 2006 acquisition of Texas Genco (now known as NRG
Texas).

Also contributing to the improved second quarter performance
were plant operating rate improvements at five of the six
classic NRG baseload coal plants and higher New York capacity
prices versus the same period last year.  These improvements
were partially offset by increased general and administrative
expenses associated with the NRG Texas integration and Mirant-
related expenses.  The year-to-date results benefited from US$67
million in surplus emissions allowance sales and US$30 million
in improved South Central margins achieved primarily through
higher plant operating rates and increased merchant sales.
Offsetting these increases were US$69 million in lower Northeast
margins due primarily to the unseasonably mild weather in the
first quarter, higher operations and maintenance expenses due to
increased major maintenance, and higher general and
administrative expenses.

"As we informed the market during the Texas Genco acquisition
financing, we expected cash generation from both our Texas
business and the classic NRG portfolio to pay immediate benefits
in terms of a return to our shareholders," said David Crane,
NRG's President and Chief Executive Officer.  "Now, with all
aspects of our business performing at higher levels as a result
of the continued success of the FORNRG program and the
integration of NRG Texas almost complete, we are in a position
to fulfill our promise with a US$750 million capital allocation
program."

                    Share Repurchase Program

The Company disclosed a US$750 million share repurchase program
which, due to the restrictions imposed by our loan covenants,
will be implemented in two phases.

Phase One is a US$500 million common share repurchase program
which the Company intends to commence immediately and complete
over the course of 2006.  In addition, the sale of the
Australian business is expected to provide approximately US$400
million in net cash proceeds that NRG intends to use to pay down
its Term B loan in the first quarter of 2007.  Consolidated
project level debt associated with Australia is US$177 million,
bringing total expected debt reduction to US$577 million.

Phase Two of the share repurchase plan-which will be initiated
after the expected step up in the Company's restricted payment
capacity at the end of the first quarter 2007-is an additional
US$250 million common share buyback.  The Company reserves the
flexibility-based on market conditions at the time-to reallocate
all or a portion of Phase Two to the initiation of a common
share dividend.

"The capital allocation program that we are announcing today has
been carefully sized and structured to return significant
capital to shareholders in the near term, reduce leverage at the
corporate level, and retain financial flexibility to support the
ongoing fleet redevelopment initiative," said Robert Flexon,
NRG's Executive Vice President and Chief Financial Officer.  "By
focusing on a large buyback in the near term, we expect to be
able to take maximum advantage of the significant undervaluation
of our equity," added Flexon.

To execute the first phase of the share repurchase plan, within
the limitations contained in the Company's credit agreement and
bond indenture, the Company will form two wholly owned
subsidiaries to hold the repurchased shares. The initial
capitalization of the subsidiaries includes US$166 million in
cash from the NRG parent.  Additionally, the subsidiaries will
enter into non-recourse debt and preferred purchase agreements
with units of Credit Suisse for an incremental US$334 million-
funded through US$250 million in debt and US$84 million of
preferred equity. Neither the debt nor the preferred will be
recourse to NRG. The shares, which will be repurchased between
now and year end, will serve as collateral for the debt.
Periodic funding will be drawn pro rata from the subsidiary's
US$166 million in cash received from the parent and the US$334
million in debt and preferred financings from Credit Suisse.
The difference between the US$334 million of facilities and the
US$400 million of maturities reflects accrued interest and
dividends to be paid at maturity.  Credit Suisse will retain the
economic benefit of share price appreciation in excess
of a 20 percent compound annual growth rate.

                      About NRG Energy

NRG Energy, Inc. (NYSE: NRG) -- http://www.nrgenergy.com/--
presently owns and operates a diverse portfolio of power-
generating facilities, primarily in Texas and the Northeast,
South Central and Western regions of the United States.  Its
operations include baseload, intermediate, peaking, and
cogeneration facilities, thermal energy production and energy
resource recovery facilities.  NRG also has ownership interests
in generating facilities in Australia and Germany.


NRG ENERGY: Fitch Upgrades Rating on Senior Notes to B+
-------------------------------------------------------
Fitch Ratings has upgraded the rating of NRG Energy's senior
notes to 'B+' from 'B' and affirmed the company's issuer default
rating and all other instrument ratings.  The Rating Outlook is
Stable.

The upgrade of the senior notes is in no way connected to the
recently announced share repurchase.  Rather, the upgrade of the
rating of the company's senior notes reflects increased expected
recovery for senior notes holder should the company default on
its debt.  The expectation of improved recoveries is driven
primarily by Fitch's expectation of continued high forward
natural gas prices.  While near term gas prices have declined
significantly from the very high prices prevailing following
Hurricane Katrina, the prices several years out have increased
from those prevailing earlier this year.  Forward gas prices are
key inputs into Fitch's wholesale power forecast which is used
to derive valuations for the recovery rating process.
Accordingly, the expectation of higher gas prices in the future
have resulted in improved recovery prospects for the senior
notes.

On Aug. 1, 2006, NRG announced a share repurchase program
pursuant to which the company expects to repurchase up to US$750
million of the company's stock.  Phase I of the program entails
the repurchase of US$500 million of stock.  The repurchase will
be effected through two newly formed subsidiaries.  NRG will
contribute US$166 million into the new subsidiaries and they
will raise non-recourse debt and preferred stock totaling US$334
million.  The total proceeds of US$500 million will be used to
execute the stock repurchase.

Given that the initial US$166 million contribution to the new
subsidiaries is a permitted payment pursuant to the restricted
payments provisions under the company's secured credit facility
and unsecured notes, and given the non-recourse nature of the
newly raised financing, Fitch views the proposed repurchase to
have no impact of the company's credit ratings.  Fitch stresses
that NRG has the option, but no obligation to support in any way
the debt and preferred stock incurred by the newly formed
subsidiaries.  Should the company have the capacity under its
restricted payments tests and the prevailing stock price be
attractive, NRG can make the necessary contributions to retire
the outside financing. Should this not be the case, the shares
held by the subsidiaries will be liquidated to retire the debt
and preferred stock.

Fitch stresses that it does not view the new subsidiary
structure as a credit enhancing structure.  Rather the timing of
the upgrade of the senior notes is coincidental to the
announcement of the repurchase and reflects only the periodic
review Fitch conducts on all the credits followed by Fitch.

NRG owns and operates a diverse portfolio of power-generating
facilities, primarily in Texas and the Northeast, South Central
and Western regions of the United States.  Its operations
include baseload, intermediate, peaking, and cogeneration
facilities, thermal energy production and energy resource
recovery facilities.  NRG also has ownership interests in
generating facilities in Australia and Germany.

Fitch upgrades this rating with a Stable Outlook:

    -- Senior notes to 'B+'/'RR3' from 'B'/'RR4'.

Fitch affirms these ratings with a Stable Outlook:

    -- Senior secured term loan B at 'BB'/'RR1';
    -- Senior secured revolving credit facility at 'BB'/'RR1';
    -- Convertible preferred stock at 'CCC+'/'RR6';
    -- Issuer default rating at 'B'.


OERDER HAUSTECHNIK: Claims Registration Ends August 20
------------------------------------------------------
Creditors of Oerder Haustechnik GmbH have until Aug. 20 to
register their claims with court-appointed provisional
administrator Hans-Gerd Jauch.

Creditors and other interested parties are encouraged to attend
the meeting at 11:20 a.m. on Sept. 20 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Room 142
         1st Floor
         Luxemburger Road 101
         50939 Cologne, Germany

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

The District Court of Cologne opened bankruptcy proceedings
against Oerder Haustechnik GmbH on July 14.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Oerder Haustechnik GmbH
         Attn: William Herkersdorf Bergisch and
         Markus Coutellier, Managers
         Wipperfuerther Road 398
         51515 Kuerten, Germany

The administrator can be contacted at:

         Hans-Gerd Jauch
         Sachsenring 81
         50677 Cologne, Germany


PROMETHEUS IMMOBILIEN: Creditors' Meeting Slated for August 24
--------------------------------------------------------------
The court-appointed provisional administrator for Prometheus
Immobilien Verwaltungs GmbH & Co. Objekt Leonberg, Neue
Ramtelstrasse KG, Wolfgang Schroeder, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 10:05 a.m. on Aug. 24.

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

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

The Court will also verify the claims set out in the
administrator's report at 10:00 a.m. on Nov. 30 at the same
venue.

Creditors have until Oct. 5 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Prometheus Immobilien Verwaltungs GmbH & Co.
Objekt Leonberg, Neue Ramtelstrasse KG on July 12.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Prometheus Immobilien Verwaltungs GmbH & Co.
         Objekt Leonberg, Neue Ramtelstrasse KG
         Kurfuerstendamm 207-208
         10719 Berlin, Germany

The administrator can be reached at:

         Dr. Wolfgang Schroeder
         Genthiner Str. 48
         10785 Berlin, Germany


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


BANCA POPOLARE: Weak Finances Prompt S&P to Cut Rating to BB
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
counterparty credit rating on Italian regional bank Banca
Popolare di Intra SCPARL to 'BB' from 'BB+'.  At the same time,
the short-term rating was affirmed at 'B'.  The ratings remain
on CreditWatch with developing implications, where they were
originally placed on Feb. 15.

"The downgrade reflects Intra's weakened profitability and
franchise, highlighted by the decline of the bank's retail
funding base," said Standard & Poor's credit analyst Taos Fudji.

The rating action also takes into account unresolved legal
risks, following Intra's failure to settle claims for damages
with judicial authorities regarding the bankruptcy of textile
company Finpart.

The CreditWatch status reflects the potential for Intra to be
upgraded if it successfully completes negotiations to become a
member of a financially stronger banking group in the near term.
It also indicates the potential for another downgrade resulting
from current damage to the bank's reputation or possible
continued deterioration in liquidity.  Additional material
delays in merger negotiations or the bank's inability to reach
agreement with potential acquirers would be negative for the
bank's creditworthiness.

Intra's financial profile is weak due to massive losses in 2005
and early 2006.  The bank has suffered some retail deposit
outflow due to its recent financial and legal turmoil.

Intra has engaged in merger talks with a number of regional
Italian banks.  Four banks, Banco Popolare di Verona e Novara
SCRL, Banca Popolare di Vicenza ScpA, Veneto Banca SCRL, and
Credito Valtellinese have been short-listed, and are expected to
submit offers by early September 2006.

"Standard & Poor's will resolve the CreditWatch status after the
potential acquisition is clarified and following a review of
Intra's asset quality and business plan," said Mr. Fudji.


FIAT SPA: Fitch Revises Outlook to Positive & Keeps IDR at BB-
--------------------------------------------------------------
Fitch Ratings has changed Fiat S.p.A.'s Outlook to Positive from
Stable.  Its Issuer Default rating and senior unsecured rating
are affirmed at BB-.  The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.

The Outlook change is underpinned by the consistent improvement
of the group's financial profile, the pick-up in Fiat Auto's
market shares and earnings since late 2005 and positive
expectations for the CNH and Iveco divisions.

"We believe that there is a potential for upgrade in the next
one to two years provided that Fiat maintains the positive
momentum demonstrated since early 2005," Emmanuel Bulle,
Director in Fitch's European Corporates group disclosed.

In H106, Fiat Auto, the group's largest division and the main
growth and profit driver, confirmed the rebound in operating
profits initiated in 2005.  Fiat Auto posted a third consecutive
quarter of positive operating margins before unusual items in
Q206, reversing the trend of negative margins between FY01 and
FY05.  More importantly, the division generated cash in Q206.

Fiat Auto's higher operating margins have been supported by the
success of new products as well as the resulting rebound in
market shares.  Its market share in Italy has remained above 30%
since end-2005, compared to 26%-29% in 2005.  Its market share
in Western Europe returned to its 2002 level of 8% in April 2006
and has remained there since.

Importantly, the group has focused on design and improved its
product mix by selling a higher proportion of more profitable
versions and cut sales in lower-margin distribution channels
like rental cars, fleets and self registrations.  Fiat is also
making great efforts to rebuild its distribution network and its
brand strategy.

Fitch cautions, however, that the already fierce competition in
WE will intensify in the short term as several new models from
Fiat's main competitors come to the market.  Nevertheless, the
agency expects the possible loss in sales momentum for the key
Grande Punto to be partially compensated by the launch of new
products including the next C-segment vehicle and by an
increasing contribution from light commercial vehicles.

Fitch will monitor market share development and new models
reception.  It will keep a close watch on Fiat Auto's ability to
maintain the positive sales trend without resorting heavily to
incentives and advertising spending, which are detrimental to
margins.

The group has also benefited from its sound and consistent
strategy of non-core assets disposal and selective industrial
alliances to enter into new segments and countries and share
development costs on new models and technologies.  In
particular, Fiat recently announced the creation of a joint
venture in auto financing with Credit Agricole and a series of
industrial alliances including the ones with Tata Motors in
India to manufacture passenger vehicles, engines and
transmissions.

The asset disposal program and realignment of the group's
portfolio have provided cash to strengthen the balance sheet and
allow Fiat to focus on core activities.  After Fiat Auto, Fiat's
management is also focusing its efforts on its construction and
equipment division, CNH, to boost operating margins and cash-
flow generation.

While free cash flows were enhanced by the asset disposals in
2005, underlying cash flows from operations turned positive in
H106 due to higher margins at Fiat Auto and in the other
divisions.  As adjusted by Fitch, industrial activities
generated EUR3.8 billion and EUR1.8 billion in CFO in FY05 and
H106 respectively, and FCF before asset disposals and
divestments were also positive at EUR1.1 billion and EUR0.8
billion respectively, compared to negative cash flows in the
previous years.

Positive FCF and asset disposals enabled net financial debt to
decline rapidly to EUR2.3 billion in H106 from EUR3.5 billion at
FYE05 and from more than EUR10 billion at FYE04, according to
Fitch's calculations.  As a result, Fiat's credit ratios have
significantly improved.  Total debt on EBITDA improved to 2.2x
in H106 from 3x at FYE 05 and 8.6x at FYE04.


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


AYAN-KOS: Creditors Must File Claims by Sept. 1
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Ayan-Kos insolvent on June 13.

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

         The Specialized Inter-Regional
         Economic Court of Kostanai Region
         Gogol Str. 177a
         Kostanai
         Kostanai Region
    Kazakhstan


AZIAINTERKOM LTD: Creditors Must File Claims by Sept. 1
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Aziainterkom Ltd. insolvent on May 30.

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

         The Specialized Inter-Regional
         Economic Court of Kostanai Region
         Gogol Str. 177a
    Kostanai
    Kostanai Region
    Kazakhstan


HAKS: Creditors Must File Claims by Sept. 4
-------------------------------------------
The Specialized Inter-Regional Economic Court of Aktobe Region
declared LLP Haks insolvent.

Creditors have until Sept. 4 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Aktobe Region
         Altynsarina Str. 31
         Aktobe
    Aktobe Region
    Kazakhstan
    Tel: 8 (3132) 21-30-32


LUKIR: Proof of Claim Deadline Slated for Sept. 1
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Lukir insolvent on June 14.

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

         The Specialized Inter-Regional
         Economic Court of Kostanai Region
         Gogol Str. 177a
         Kostanai
    Kostanai Region
    Kazakhstan


PC: Proof of Claim Deadline Slated for Sept. 4
----------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Kurylys Company PC (RNN 302500210964)
insolvent without the introduction of the bankruptcy
proceedings.

Creditors have until Sept. 4 to submit written proofs of claim
to:

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


SHYMKENTAGROSERVIS: Claims Registration Ends Sept. 4
----------------------------------------------------
CJSC Shymkentagroservis has declared insolvency.  Creditors have
until Sept. 4 to submit written proofs of claim to:

         CJSC Shymkentagroservis
         Temirlanovskoye Road
    Shymkent
    South Kazakhstan Region
    Kazakhstan


TAISOIGAN: Claims Registration Ends Sept. 1
-------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Taisoigan insolvent on June 9.

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

         The Specialized Inter-Regional
         Economic Court of Kostanai Region
         Gogol Str. 177a
    Kostanai
    Kostanai Region
    Kazakhstan


TAKT-AVTO: Creditors' Claims Due Sept. 1
----------------------------------------
The Specialized Inter-Regional Economic Court of Astana declared
LLP Takt-Avto insolvent on June 5.

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

         LLP Takt-Avto
         Micro District 4, 34/22
    010000 Astana, Kazakhstan
    Tel: 8 (3172) 36-09-38
         8 (3003) 28-76-84


VEST: Creditors' Claims Due Sept. 4
-----------------------------------
The Specialized Inter-Regional Economic Court of Jambyl Region
declared LLP Vest insolvent on June 9.  Subsequently, bankruptcy
proceedings were introduced at the company.

Creditors have until Sept. 4 to submit written proofs of claim
to:

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


VIZ & C: Creditors' Claims Due Sept. 4
--------------------------------------
The Specialized Inter-Regional Economic Court of Aktobe Region
declared LLP VIZ & C insolvent.

Creditors have until Sept. 4 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Aktobe Region
         Altynsarina Str. 31
         Aktobe
    Aktobe Region
    Kazakhstan
    Tel: 8 (3132) 21-30-32


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


C-AND-C PLAZA: Proof of Claim Deadline Slated for Sept. 13
----------------------------------------------------------
The Branch of the JSC Venture C-and-C Plaza in the Kyrgyz
Republic has declared insolvency.

Creditors have until Sept. 13 to submit written proofs of claim
to:

         JSC Venture C-and-C Plaza
         Molodejnaya Str. 35/4
         Bishkek, Kyrgyzstan
         Tel: (+996 312) 26-29-35


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


DELTA EYE: Ticonderoga Wins Judgment Against Kardux Enterprises
---------------------------------------------------------------
The Netherlands District Court of Rotterdam has granted
Ticonderoga Ventures Inc. a monetary judgment over Kardux
Enterprises and Solutions B.V.

Delta Eye Security and Kardux Enterprises and Solutions B.V.,
which both operated in Stellendam, the Netherlands, were
contracted by Ticonderoga Ventures to provide security services.

Thereafter, Delta Eye Security, which was allegedly operated by
CJ Kardux, was declared bankrupt (Rotterdam District Court
Insolvency Chamber, Rechtbank Rotterdam, Faillissementskamer,
Reg # 05.292F, April 26, 2005).

Ticonderoga Ventures claimed that Mr. Kardux, through Delta Eye
Security and Kardux Enterprises and Solutions B.V., had
improperly manipulated payments from Ticonderoga Ventures.  When
confronted with the allegations, Mr. Kardux refused to admit
fault, and failed to return the sums improperly obtained.
Ticonderoga Ventures was compelled to retain overseas counsel in
the Netherlands, and commence legal action against Kardux
Enterprises.

In civil proceeding (Case # 712049 CV EXPL 06-164), Judge R.
Veenendaal in the Cantonal Section of Middelharnis, District
Court of Rotterdam (Rechtbank Rotterdam) awarded a judgment in
favor of Ticonderoga Ventures and against Kardux Enterprises and
Solutions B.V.


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


FALCONBRIDGE LTD: Bid Changes Prompt S&P's Positive Watch
---------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications on Inco Ltd. and Falconbridge Ltd. to positive from
developing, where they were placed July 18, 2006.  This action
stems from the lower probability under all current takeover
scenarios that ratings will be lowered into the speculative-
grade category.

The ratings on Falconbridge will likely be raised or affirmed at
'BBB-', assuming that Xstrata PLC (parent of Xstrata Queensland
Ltd. (BBB+/Watch Neg/--)) is successful in acquiring
Falconbridge on Aug. 14, 2006, which now appears highly probable
after Inco dropped its bid last week.

Falconbridge Ltd.'s CDN$0.9 Million Cumulative Preffered Shares
Series 1, CDN$119.7 Million Cumulative Preferred Shares Series
2, and CDN$150 Million Preferred Shares Series H, all carry
Standar & Poor's BB rating.

"The most important factor in resolving the CreditWatch will be
an assessment of Xstrata's post-acquisition financing plan,"
(details of which have yet to be disclosed) said Standard &
Poor's credit analyst Donald Marleau.  Xstrata has publicly
stated its commitment to an investment-grade rating.
"Furthermore, to determine the ultimate rating for each debt
issue, Standard & Poor's will evaluate the ownership structure
and the relative positioning of obligations within the enlarged
Xstrata group that could contribute to structural
subordination," he added.

The ratings on Inco will also probably be raised or affirmed at
'BBB-'.

With a friendly bid from Phelps Dodge Corp. (BBB/Watch Neg/A-2)
and a hostile bid from Teck Cominco Ltd. (BBB/Watch Neg/--)
outstanding, the ultimate ownership of Inco will be determined
only after Aug. 16, 2006, at the earliest.  "In both cases,
however, the corporate credit ratings will likely remain
investment-grade, notwithstanding the more aggressive capital
structures currently being contemplated," said Mr. Marleau.  The
uncomplicated ownership structure in both cases should also
shield the eventual issue-level ratings from the negative
effects of structural subordination.

Teck Cominco's increased bid of July 31, 2006, would result in a
decidedly more aggressive capital structure.  Standard & Poor's
estimates that the combined entity's total debt would be more
than US$9.5 billion, resulting in pro forma debt to last 12
months (LTM) EBITDA of about 2.25x.  After accounting for $2.8
billion of combined unfunded pensions and other postemployment
benefits and asset retirement obligations, the combined entity's
fully adjusted debt would exceed $12 billion.  As such, total
debt to LTM EBITDA of 2.8x would be aggressive, especially
considering that metals prices are at a cyclical peak.


===============
P O R T U G A L
===============


COGECO CABLE: Acquisition Spurs S&P to Lower Credit Rating to BB
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Montreal-based cable service provider
Cogeco Cable Inc. to 'BB' from 'BB+' following the company's
announcement that it has completed the previously announced
debt-financed acquisition of Portugal-based cable operator
Cabovisao-Televisao por Cabo S.A.

Standard & Poor's also lowered the rating on Cogeco's first
priority senior secured debt to 'BB+' from 'BBB-' and affirmed
the recovery rating of '1'.  Cogeco's CAD725 million revolving
credit facility and CAD175 million term loan credit facility
were assigned a 'BB+' senior secured debt rating with a recovery
rating of '1'.  The '1' recovery rating reflects expectation of
a full recovery of principal in a default scenario.

In addition, Standard & Poor's lowered the rating on the
company's CAD125 million second secured debentures to 'BB' from
'BB+' and assigned a recovery rating of '2', indicating
expectation of substantial recovery of principal in the event of
a payment default.  All ratings were removed from CreditWatch,
where they were placed with negative implications June 2.  The
outlook is stable.

The downgrade reflects Cogeco's weakened consolidated risk
profile, given higher leverage and the weak business risk
profile of Cabovisao.

"The Cabovisao acquisition results in a combined entity that has
a weaker business risk profile than Cogeco, whose stand-alone
business profile is considered low investment-grade," said
Standard & Poor's credit analyst Madhav Hari.

Cabovisao, which represents 25% of Cogeco's pro forma revenues,
has a higher risk than the company's Canadian operations given
the company's exposure to a greater degree of competition,
operations in relatively weaker demographics and weaker
profitability.

"The lack of operational and capex synergies between the two
operations as well as management inexperience in Portugal are
additional factors," added Mr. Hari.

The financial profile has also weakened given the higher debt
leverage of the combined entity and a more aggressive financial
policy.

Cogeco's parent, Cogeco Inc., has a neutral effect on the
ratings, given that there is a small amount of debt at the
parent level and that Cogeco will continue to account for the
majority of Cogeco Inc.'s revenues and EBITDA.

Cabovisao's weak business risk profile reflects weak country
macroeconomics as well as company-specific challenges such as:

   -- small scale, weak demographics within its operating areas,
   -- significant competition, and
   -- relatively weaker margins.

In particular, the level of prospective competition is a key-
rating factor, given that about 60% of homes passed are also
serviced by an incumbent cable operator, TV Cabo while direct-
to-home satellite competes in the remainder.  Furthermore, the
level of competitive intensity from incumbent telecom operator,
Portugal Telecom as well as from new entrants is poised to
increase in the future.

Mitigating factors include:

   -- low penetration levels particularly for broadband,

   -- a sufficiently upgraded regional cable infrastructure,

   -- ownership of a high capacity national fiber optic network,

   -- good success in bundling multiple services,

   -- healthy subscriber momentum, and

   -- an improved profitability level which we believe is
sustainable in the medium term.

The stable outlook is based on expectations that Cogeco's
Canadian operations can sustain their operating momentum and
therefore support any potential weakness at Cabovisao.  In
addition, Standard & Poor's assume that credit measures will
improve to levels more consistent with the rating within three
years.

The outlook and rating could be negatively affected if the
Canadian operations do not perform as expected owing to
increased competition and/or Cabovisao's profitability and free
cash flow profile materially weakens.

The outlook could be revised to positive if Cabovisao's business
risk profile further solidifies and the consolidated credit
measures improve at a faster-than-expected rate.  The ratings
and outlook assume that no material amount of debt will be added
at the parent level and that Cogeco Inc. and its media assets
will continue to be credit neutral.


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


AGROTORG: S&P Affirms BB- Long-Term Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on Pyaterochka Holding N.V., the owner
of Russia's largest grocery retail network.

At the same time, Standard & Poor's affirmed its 'BB-' long-term
corporate credit and 'ruAA-' Russia national scale ratings on
Pyaterochka's guaranteed operating subsidiary OOO Agrotorg.

The 'ruAA-' Russia national scale ratings on the senior
unsecured and senior secured debt issued by related entity
Pyaterochka Finance have also been affirmed.

All ratings were removed from CreditWatch with negative
implications, where they had been placed on April 12, following
Pyaterochka's announced acquisition of Russia's leading
supermarket chain Perekrestok.  The outlook is negative.

"The affirmation reflects Standard & Poor's view that the
increase in financial risk after the acquisition of Perekrestok
is offset by the expectation that Pyaterochka will progressively
restore a less-aggressive financial profile," said Standard &
Poor's credit analyst Ivan Strougatski.

The moderate improvement in the group's business profile and the
strong growth prospects of the Russian market are also
mitigating factors.  As we expect the group to continue to spend
substantial amounts of capital to finance its organic growth, a
strong increase in cash flow generation will be necessary to
improve its financial measures.

Pyaterochka is highly leveraged as a result of the Perekrestok
acquisition, with lease-adjusted total debt to EBITDA expected
to be about 4.5x in 2006, which is high for the rating category.
Although the group plans to reduce its leverage though
improvements in profitability and cash flow generation, its
extensive capital expenditure program aimed at new store
openings could lead to an increase in absolute debt levels.

"The ratings would be lowered if Pyaterochka does not restore
its credit protection measures to a less-aggressive level," Mr.
Strougatski added.

Specifically, the group would need to achieve lease-adjusted
total debt to EBITDA of below 4.0x in the next 18 months-24
months.

The outlook could be revised to stable if the group can
demonstrate its ability to improve cash flow generation and
consequently reduce leverage.  Pyaterochka would also need to
maintain capital expenditures at levels that would allow the
group to continue to lead the Russian food retail segment.


BELEVEEVSKIY ENGINEERING: P. Krivov to Manage Assets
----------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. P.
Krivov as Insolvency Manager for OJSC Beleveevskiy Engineering
Works.  She can be reached at:

         P. Krivov
         Vostochnaya 79
         Belebey
         452009 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A07-20268/05-G-FLE.

The Arbitration Court of Bashkortostan Republic is located at:

         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan Republic
         Russia


The Debtor can be reached at:

         OJSC Beleveevskiy Engineering Works
         Vostochnaya 79
         Belebey
         452009 Bashkortostan Republic
         Russia


BELEZINSKIY PARQUET: A. Shaydullin to Manage Assets
---------------------------------------------------
The Arbitration Court of Udmurtiya Republic appointed Mr. A.
Shaydullin as Insolvency Manager for CJSC Belezinskiy Parquet.
He can be reached at:

         A. Shaydullin
         Neftyanikov 54
         Mozhga
         427793 Udmurtiya Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A71-001627/2006-G2.

The Debtor can be reached at:

         CJSC Belezinskiy Parquet
         Belezino
         Udmurtiya Republic
         Russia


BELGORODSKIY ECOLOGICAL: Court Starts Bankruptcy Supervision
------------------------------------------------------------
The Arbitration Court of Belgorod Region has commenced
bankruptcy supervision procedure on CJSC Belgorodskiy Ecological
Complex (TIN 3102012353).  The case is docketed under Case No.
A08-2214/06-11.

The Temporary Insolvency Manager is:

         V. Konovalov
         Post User Box 1
         308015 Belgorod Region
         Russia

The Debtor can be reached at:

         CJSC Belgorodskiy Ecological Complex
         Streletskoye
         Belgorod Region
         Russia


BUILDER: Kurgan Court Starts Bankruptcy Supervision
---------------------------------------------------
The Arbitration Court of Kurgan Region has commenced bankruptcy
supervision procedure on CJSC Builder.  The case is docketed
under Case No. A34-1115/2006.

The Temporary Insolvency Manager is:

         V. Suvorova
         K. Marksa Str. 8
         Belozerskoye
         641360 Kurgan Region
         Russia
         Tel: 8-35-232-2-11-06

The Debtor can be reached at:

         CJSC Builder
         Belozerskoye
         Stroiteley Str. 12
         Belozerskiy Region
         Kurgan Region
         Russia


CHEPETSKAYA FURNITURE: Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Arbitration Court of Udmurtiya Republic will convene on
Sept. 20 to hear the bankruptcy supervision procedure on CJSC
Chepetskaya Furniture Factory.  The case was docketed under Case
No. A71-002190/2006 G21.

The Temporary Insolvency Manager is:

         Mr. L. Bogdanov
         8th Post Office
         Post User Box 425
         427628 Udmurtiya
         Glazov
         Russia

The Debtor can be reached at:

         CJSC Chepetskaya Furniture Factory
         Cheptsa Str. 35
         Kezskiy Region
         Udmurtiya Republic
         Russia


DAVLEKANOVSKY GRAIN PRODUCT: V. Palaksov to Manage Assets
---------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. V.
Palaksov as Insolvency Manager for OJSC Davlekanovsky Grain
Product.  He can be reached at:

         V. Palaksov
         Rooms 8-9
         Tsyryupy Str. 153
         Ufa
         450006 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A07-35783/05-G-ADM.

The Debtor can be reached at:

         OJSC Davlekanovsky Grain Product
         Voroshilova Str. 2
         Davlekanovo
         453400 Bashkortostan Republic
         Russia


DOBRYNYA: Court Names I. Valvakova as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Lipetsk Region appointed Ms. I.
Valvakova as Insolvency Manager for LLC Agro Company Dobrynya.
She can be reached at:

         I. Valvakova
         Post User Box 1414
         398006 Lipetsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A36-414/2006.

The Debtor can be reached at:

         LLC Agro Company Dobrynya
         Plavits St.
         Dobrinskiy Region
         Lipetsk Region
         Russia


GLOBE: Krasnoyarsk Court Commences Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region has commenced
bankruptcy supervision procedure on CJSC Globe.  The case is
docketed under Case No. A33-32636/2005.

The Temporary Insolvency Manager is:

         D. Makhov
         Post User Box 910
         660043 Krasnoyarsk Region
         Russia

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143.
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Globe
         Boguchany
         Krasnoyarsk Region
         Russia


IZERBELSKAYA: Khakasiya Court Starts Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Khakasiya Republic has commenced
bankruptcy supervision procedure on LLC Izerbelskaya.
The case was docketed under Case No. A74-1660/2006.

The Temporary Insolvency Manager is:

         A. Maltsev
         Apartment 36
         Kolkhoznaya Str. 45
         Abakan
         Khakasiya Republic
         Russia

The Debtor can be reached at:

         LLC Izerbelskaya
         Sayanogorsk
         Khakasiya Republic
         Russia


KAMSKAYA TRANSPORT: Court Names L. Safin as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Tatarstan Republic appointed Mr. L.
Safin as Insolvency Manager for LLC Kamskaya Transport Company.
He can be reached at:

         L. Safin
         Post User Box 659
         Kazan
         420032 Tatarstan Republic
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A65-7091/2005-SG4-35.

The Arbitration Court of Tatarstan Republic is located at:

         Room 12, Floor 2
         Entrance 2, Building 1
         Kremlin
         Kazan, Tatarstan Republic
         Russia

The Debtor can be reached at:

         LLC Kamskaya Transport Company
         Entrance 4
         Ak.Rubanenko Avenue 12
         Naberezhnye Chelny
         Tatarstan Republic
         Russia


KHUNGAROVIN: Court Names V. Sokolov as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Chuvashiya Republic appointed Mr. V.
Sokolov as Insolvency Manager for OJSC Khungarovin.  He can be
reached at:

          Nikolaeva Str. 15
          Tsivilsk
          Chuvashiya Republic
          Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A79-1856/2006.

The Debtor can be reached at:

         OJSC Khungarovin
         Kugesi
         Cheboksarskiy Region
         Chuvashiya Republic
         Russia


KRASNOYARSKAYA CHEMICAL: A. Adaykin to Manage Assets
----------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. A.
Adaykin as Insolvency Manager for CJSC Krasnoyarskaya Chemical
Company.  He can be reached at:

         A. Adaykin
         Post User Box 21866
         660060 Krasnoyarsk Region
         Russia

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

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143.
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Krasnoyarskaya Chemical Company
         Parizhskoy Kommunyn 33-809
         660049 Krasnoyarsk Region
         Russia


MK-126: Court Starts Bankruptcy Supervision
-------------------------------------------
The Arbitration Court of Yamalo-Nenetskiy Autonomous Region
commenced bankruptcy supervision procedure on OJSC MK-126 (TIN
8904003360).  The case is docketed under Case No. A81-1872/2006.

The Temporary Insolvency Manager is:

         A. Balabanov
         Uralet Location
         Novyj Urengoy
         Yamalo-Nenetskiy Autonomous Region
         Russia

The Arbitration Court of Yamalo-Nenetskiy Autonomous Region is
located at:

         Chubynina Str. 37A
         Salekhard
         Yamalo-Nenetskiy Autonomous Region
         Russia

The Debtor can be reached at:

         OJSC MK-126
         Uralet Location
         Novyj Urengoy
         Yamalo-Nenetskiy Autonomous Region
         Russia


PAVLOVSKAYA GARMENT: Y. Ovcharenkov to Manage Assets
----------------------------------------------------
The Arbitration Court of Voronezh Region appointed Mr. Y.
Ovcharenkov as Insolvency Manager for OJSC Pavlovskaya Garment
Factory.  He can be reached at:

         Y. Ovcharenkov
         Pobedy Avenue 41-91
         Voronezh Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A14-23314-2005 12/27b.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         OJSC Pavlovskaya Garment Factory
         Revolyutsii Pr. 76
         Pavlovsk
         Voronezh Region
         Russia


PYATEROCHKA HOLDING: S&P Affirms BB- Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on Pyaterochka Holding N.V., the owner
of Russia's largest grocery retail network.

At the same time, Standard & Poor's affirmed its 'BB-' long-term
corporate credit and 'ruAA-' Russia national scale ratings on
Pyaterochka's guaranteed operating subsidiary OOO Agrotorg.

The 'ruAA-' Russia national scale ratings on the senior
unsecured and senior secured debt issued by related entity
Pyaterochka Finance have also been affirmed.

All ratings were removed from CreditWatch with negative
implications, where they had been placed on April 12, following
Pyaterochka's announced acquisition of Russia's leading
supermarket chain Perekrestok.  The outlook is negative.

"The affirmation reflects Standard & Poor's view that the
increase in financial risk after the acquisition of Perekrestok
is offset by the expectation that Pyaterochka will progressively
restore a less-aggressive financial profile," said Standard &
Poor's credit analyst Ivan Strougatski.

The moderate improvement in the group's business profile and the
strong growth prospects of the Russian market are also
mitigating factors.  As we expect the group to continue to spend
substantial amounts of capital to finance its organic growth, a
strong increase in cash flow generation will be necessary to
improve its financial measures.

Pyaterochka is highly leveraged as a result of the Perekrestok
acquisition, with lease-adjusted total debt to EBITDA expected
to be about 4.5x in 2006, which is high for the rating category.
Although the group plans to reduce its leverage though
improvements in profitability and cash flow generation, its
extensive capital expenditure program aimed at new store
openings could lead to an increase in absolute debt levels.

"The ratings would be lowered if Pyaterochka does not restore
its credit protection measures to a less-aggressive level," Mr.
Strougatski added.

Specifically, the group would need to achieve lease-adjusted
total debt to EBITDA of below 4.0x in the next 18 months-24
months.

The outlook could be revised to stable if the group can
demonstrate its ability to improve cash flow generation and
consequently reduce leverage.  Pyaterochka would also need to
maintain capital expenditures at levels that would allow the
group to continue to lead the Russian food retail segment.


RODINA: Altay Court Starts Bankruptcy Supervision
-------------------------------------------------
The Arbitration Court of Altay Region has commenced bankruptcy
supervision procedure on OJSC Rodina.  The case was docketed
under Case No. A03-23770/06-B.

The Temporary Insolvency Manager is:

         N. Bakhareva
         Post User Box 46
         Biysk
         659305 Altay Region
         Russia

The Debtor can be reached at:

         OJSC Rodina
         Vinogradovka
         Kulundinskiy Region
         656901 Altay Region
         Russia


STROY-MECHANIZATION: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Tatarstan Republic has commenced
bankruptcy supervision procedure on OJSC Stroy-Mechanization.
The case is docketed under Case No. A65-6356/2006-SG4-26.

The Temporary Insolvency Manager is:

         Mr. A. Miller
         Post User Box 188
         Almetyevsk GOS-11
         423461 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located:

         Room 12, Floor 2
         Entrance 2, Building 1
         Kremlin, Kazan
         Tatarstan Republic
         Russia

The Debtor can be reached at:

         OJSC Stroy-Mechanization
         Bazovaya Str. 4
         Almetyevsk
         Tatarstan Republic
         Russia


SVYAZ-TRANSIT: Court Starts Bankruptcy Supervision
--------------------------------------------------
The Arbitration Court of Bashkortostan Republic has commenced
bankruptcy supervision procedure on OJSC Svyaz-Transit (TIN
0263003883).  The case was docketed under Case No. A07-31196/05-
G-MOG.

The Temporary Insolvency Manager is:

         Y. Alekseev
         Office 1
         8th Marta Str. 14
         Ufa
         450008 Bashkortostan Republic
         Russia

The Arbitration Court of Bashkortostan Republic is located at:

         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan Republic
         Russia

The Debtor can be reached at:

         OJSC Svyaz-Transit
         Kosmodemyanskoy Str. 10
         Meleuz
         Bashkortostan Republic
         Russia


TATNEFT: Fitch Changes Outlook to Positive & Maintains IDR at B
---------------------------------------------------------------
Fitch Ratings changed Tatarstan-based Tatneft's Outlook to
Positive from Stable.  It's Issuer Default and Short-term
ratings are affirmed at B.

The revised Outlook is based on Fitch's expectations that
Tatneft will be able to significantly enhance its business
profile with the commissioning of its new refinery at
Nizhnekamsk.  The new refinery is designed to address the two
problems that have beset the Russian oil industry, through the
efficient refining of sour crude oil and improving the quality
of Russian export crude.

As such, the project enjoys support, not only at the Republic
level, but also at the federal level, and has been awarded
US$610 million from the Federal Investment Fund of the Russian
Federation for the construction of crude oil and refined product
pipelines and a rail link infrastructure intended to boost
product export capacity.  When the new refinery is complete,
Tatneft will be able to refine 65% of its high-sulphur crude in
the Russian Federation, reducing the amount blended in the
Transneft pipeline.

Additionally, Tatneft's financial policy is moderate.  The
company has maintained broadly consistent debt levels and
intends to repay 60% of its dollar-denominated bank debt and 73%
of its ruble-denominated bond debt outstanding by end-2006.  The
company is in the process of securing project financing for the
construction of its new refinery at Nizhnekamsk and expects such
financing to be put in place in 2007.  The company has
historically maintained a gearing ratio below 25% and is
expected to continue to do so.

Fitch would expect to consider an upgrade of Tatneft's Issuer
Default rating once the company demonstrates a resumption of
timely financial result filing for 2005, and if the company
maintains a conservative financial profile with Funds from
Operations adjusted leverage below 1x and FFO interest coverage
above15x.  Fitch is also looking for the company to maintain
profitability of around US$10 per barrel of production,
successfully complete its Nizhnekamsk refinery financing in 2007
and begin stage 1 construction in 2008.

Tatneft is Russia's sixth largest oil production company,
operating mainly in the semi-autonomous Republic of Tatarstan
(BB /Stable Outlook/B) located approximately 750 km southeast of
Moscow within the Russian Federation. Tatneft and its
subsidiaries are engaged in crude oil exploration, development
and production, representing over 80% of all the crude oil
produced in Tatarstan.

The company is also engaged in the refining and marketing of
crude oil and refined products as well as petrochemicals and has
interest in banking sector via its ownership in Zenit-Devon
Credit Bank group.  The Republic of Tatarstan holds a 36%
interest in Tatneft as well as a golden share.  As such, the
Republic is able to exercise considerable influence over the
company's business operations.


URALSKIY FACTORY: Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Arbitration Court of Sverdlovsk Region has commenced
bankruptcy supervision procedure on CJSC Uralskiy Factory of
Experimental Alloys.  The case is docketed under Case No. A60-
8652/2006-S11.

The Temporary Insolvency Manager is:

         S. Shelegin
         Post User Box 123
         620039 Ekaterinburg Region
         Russia

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34.
         620151 Ekaterinburg Region
         Russia

The Debtor can be reached at:

         CJSC Uralskiy Factory of Experimental Alloys
         Alpinistov Str. 57
         620010 Ekaterinburg Region
         Russia


VOLZHSKIY BAKERY: Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Arbitration Court of Mariy El Republic has commenced
bankruptcy supervision procedure on OJSC Volzhskiy Bakery.  The
case is docketed under Case No. A-38-11/95-2006.

The Temporary Insolvency Manager is:

         V. Chalyj
         Tel/Fax: 45-72-23
         Post User Box 6
         Yoshkar-Ola
         424006 Mariy El Republic Russia

The Debtor can be reached at:

         OJSC Volzhskiy Bakery
         Lenina Str. 65.
         Volzhsk
         425000 Mariy El Republic
         Russia


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


HSBC BANK: S&P Assigns BB/B Counterparty Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB/B'
counterparty credit and 'trAA+/trA-1' national scale ratings to
Turkey-based HSBC Bank A.S.  The outlook is stable.

The ratings on HSBC/T primarily reflect the high-risk banking
and economic environment in the Republic of Turkey, and the
potential risks linked to the bank's ambitious expansion
strategy.  These risk factors are partially tempered by the
benefit of being fully owned by HSBC Holdings PLC, with the
long-term rating incorporating a one-notch uplift from the
stand-alone rating on the bank to reflect strong expected
support if needed.  The ratings also reflect the bank's good
financial profile and strong brand name and business franchise.

"Turkey's financial and economic environment still makes for a
risky banking environment, and most of the factors underpinning
the ratings on the sovereign create risks for Turkish banks,"
said Standard & Poor's credit analyst Magar Kouyoumdjian.

"However, the bank's strategic importance to HSBC group as its
foothold into the large Turkish market, and its operational and
business integration into the HSBC group, have positioned HSBC/T
well to weather a major crisis or to benefit from an improving
economic and financial environment in Turkey," he added.

The stable outlook reflects that on Turkey, and an upgrade of
the sovereign could result in an upgrade for the bank, other
things being equal.  HSBC/T is well placed to benefit from the
evolving economic and banking environment in Turkey.

"Despite recent glitches in the operating environment, if the
positive economic developments continue, the bank will benefit
from lower cost of funds and increasing business opportunities,"
added Mr. Kouyoumdjian.

Conversely, if confidence deteriorates, HSBC/T -- along with
other Turkish banks -- will have to operate in a more difficult
and volatile environment with limited lending opportunities,
making progress much more uncertain.  The bank's ambitious
growth plan in a high-risk economy is challenging and reliant on
additional capital generation.


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


CENTRALNIJ: Court Names S. Kitsul as Insolvency Manager
-------------------------------------------------------
The Economic Court of Kyiv Region appointed S. Kitsul as
Liquidator/Insolvency Manager for LLC Centralnij (code EDRPOU
19426569).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 8.  The case is docketed
under Case No. 121/14 b-06.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Centralnij
         Yaroslav Mudrij Str. 36
         Bila Tserkva
         Kyiv Region
         Ukraine


GEFEST-TRADE: Court Names Ivan Radik as Insolvency Manager
----------------------------------------------------------
The Economic Court of Harkiv Region appointed for LLC GEFEST-
TRADE (code EDRPOU 33559097).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 9.  The case is docketed
under Case No. B-39/63-06.

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:

         LLC Gefest-Trade
         Traktorobudivnikiv Str. 140-b/75
         Harkiv Region
         Ukraine


KRIVORIZHKOKSOHIMREMONT: Mikola Lukashuk to Liquidate Assets
------------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Mikola
Lukashuk as Liquidator/Insolvency Manager for OJSC
Krivorizhkoksohimremont (code EDRPOU 00192301).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 11.  The case is docketed
under Case No. B 15/104/05.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Krivorizhkoksohimremont
         Tsimlyanska Str. 1
         Krivij Rig
         50000 Dnipropetrovsk Region
         Ukraine


KOZATSKIJ SHLYAH: Court Names Tax Agency as Liquidator
------------------------------------------------------
The Economic Court of Zaporizhya Region appointed State Tax
Inspection in Hortitskij District of Zaporizhya as Liquidator
for LLC Kozatskij Shlyah (code EDRPOU 30201625).  The Liquidator
can be reached:

         State Inspection in Hortitskij District of Zaporizhya
         Gudimenko Str. 10-a
         69114 Zaporizhya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 17.  The case is docketed
under Case No. 25/78/06.

The Economic Court of Zaporizhya Region is located at:

         Shaumyana Str. 4
         69001 Zaporizhya Region
         Ukraine

The Debtor can be reached at:

         LLC Kozatskij Shlyah
         Novgorodska Str. 22-A/70
         69076 Zaporizhya Region
         Ukraine


PLEYADA: Hortitskij Tax Agency to Liquidate Assets
--------------------------------------------------
The Economic Court of Zaporizhya Region appointed the State Tax
Inspection in Hortitskij District of Zaporizhya as Liquidator
for LLC Pleyada (code EDRPOU 25477163).  The Liquidator can be
reached at:

         State Inspection in Hortitskij District of Zaporizhya
         Gudimenko Str. 10-a
         69114 Zaporizhya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 17.  The case is docketed
under Case No. 19/72/06.

The Economic Court of Zaporizhya Region is located at:

         Shaumyana Str. 4
         69001 Zaporizhya Region
         Ukraine

The Debtor can be reached at:

         LLC Pleyada
         Novgorodska Str. 22-A/70
         69076 Zaporizhya Region
         Ukraine


SENDMARKET-HOLDING: Court Names Svitlana Bikova as Liquidator
-------------------------------------------------------------
The Economic Court of Sevastopol Region appointed Svitlana
Bikova as Liquidator/Insolvency Manager for LLC Sendmarket-
Holding (code EDRPOU 30816721).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 6.  The case is docketed
under Case No. 20-7/868-4/204-7/1269/076-5/121.

The Economic Court of Sevastopol Region is located at:

         Pavlichenko Str. 5
         Sevastopol
         99011 AR Krym Region
         Ukraine

The Debtor can be reached at:

         LLC Sendmarket-Holding
         Kulakov Str. 84
         Sevastopol
         99011 AR Krym Region
         Ukraine


SHEDRA: Court Names Borovik Ruslan as Insolvency Manager
--------------------------------------------------------
The Economic Court of Poltava Region appointed Borovik Ruslan as
Liquidator/Insolvency Manager for Agricultural LLC Shedra (code
EDRPOU 32646450).  He can be reached at:

         Borovik Ruslan
         Perspektivnij Avenue 10
         36007 Poltava Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 8.  The case is docketed
under Case No. 7/57-06.

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Shedra
         Iskivtsi
         Lubenskij District
         37572 Poltava Region
         Ukraine


VEKTOR-INTERTEH: Court Names Ivan Radik as Liquidator
-----------------------------------------------------
The Economic Court of Harkiv Region appointed Ivan Radik as
Liquidator/Insolvency Manager for LLC Vektor-Interteh (code
EDRPOU 33559076).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 9.  The case is docketed
under Case No. B-39/66-06.

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:

         LLC Vektor-Interteh
         Traktorobudivnikiv Str. 140-b/75
         Harkiv Region
         Ukraine


ZAHIDREMBUDSERVICE: Court Names Ludmila Buchinska as Liquidator
---------------------------------------------------------------
The Economic Court of Lviv Region appointed Ludmila Buchinska as
Liquidator/Insolvency Manager for LLC Zahidrembudservice.  She
can be reached at:

         Ludmila Buchinska
         Varshavska Str. 94
         79020 Lviv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 15.  The case is docketed
under Case No. 6/65-5/85.

The Economic Court of Lviv Region is located at:

         Lichakivska Str. 81
         79010 Lviv Region
         Ukraine

The Debtor can be reached at:

         LLC Zahidrembudservice
         B. Hmelnitskij Str. 6.
         Chervonograd
         80100 Lviv Region
         Ukraine


ZOLOTE YAJTSE: Court Names Volodimir Shuba as Liquidator
--------------------------------------------------------
The Economic Court of Harkiv Region appointed Volodimir Shuba as
Liquidator/Insolvency Manager for Agricultural LLC Zolote Yajtse
(code EDRPOU 30957487).  He can be reached at:

         Gamarnik Str. 5
         61003 Harkiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 25.  The case is docketed
under Case No. B-19/02-06.

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:

         Agricultural LLC Zolote Yajtse
         Molodizhna Str. 20
         Zamiske
         Valkivskij District
         Harkiv Region
         Ukraine


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


ADVENTURE KINGDOM: Brings In Joint Liquidators from Insol House
---------------------------------------------------------------
Richard Frank Simms and Martin Richard Buttriss of Insol House
were appointed Joint Liquidators of Adventure Kingdom Limited on
May 10.

The company can be reached at:

         Adventure Kingdom Limited
    Freer Street
    Nuneaton
    Warwickshire CV114PR
    United Kingdom
    Tel: 024 7634 0130


ATLANTIC 66: Creditors Resolve to Voluntary Liquidation
-------------------------------------------------------
Creditors of Atlantic 66 Limited resolved on May 8 to
voluntarily liquidate the company's assets.

Andrew James Nichols of Redman Nichols was appointed Liquidator.

The company can be reached at:

         Atlantic Road
         London SW9 8PY
         United Kingdom
         Tel: 020 7326 4920


ATMEL CORP: Completes US$140-Million Atmel Grenoble Sale to e2v
---------------------------------------------------------------
Atmel Corp. concluded the sale of its Grenoble, France
subsidiary including the manufacturing facility for US$140
million to e2v technologies plc, a British corporation.

George Perlegos, chairman and chief executive officer said, "As
we previously announced on July 13, 2006, this sale represents
another milestone in Atmel's plan to consolidate its
manufacturing operations.  We remain committed to focusing
resources on our core technologies and developing leading-edge
products for growth markets,"

The Company retains rights to its patented finger-print scanning
recognition technology.  All other Grenoble products including
image sensors and aerospace qualified microprocessors are
included in the purchase by e2v.

                           About e2v

Headquartered in Chelmsford, UK, e2v - http://www.e2v.com--
designs, develops and manufactures electronic tube and sensor
components & sub-systems that are supplied to niche markets
within the three core areas of Medical & Science, Aerospace &
Defense and Commercial & Industrial.

                          About Atmel

Atmel Corp. -- http://www.atmel.com/-- (Nasdaq: ATML)
designs and manufactures microcontrollers, advanced logic,
mixed- signal, nonvolatile memory and radio frequency (RF)
components. Leveraging one of the industry's broadest
intellectual property (IP) technology portfolios, Atmel is able
to provide the electronics industry with complete system
solutions.  It is focused on consumer, industrial, security,
communications, computing and automotive markets.

                          *     *     *

Standard & Poor's Rating Services assigned its single-B long-
term foreign issuer and long-term local issuer credit ratings to
Atmel Corp. on Oct. 24, 2001, and said the outlook, at that
time, was negative.


BLUE ANGEL: Names Moira Fitzpatrick as Administrator
----------------------------------------------------
Moira C. Fitzpatrick of MCF Business Rescue and Insolvency was
named administrator of Blue Angel Fishing Limited (Company
Number 04418584) on July 3.

The administrator can be reached at:

         MCF Business Rescue and Insolvency
         Matford Business Center
         Matford Park Road
         Exeter EX2 8ED
         United Kingdom

Blue Angel Fishing Limited can be reached at:

         2 St. Marys Road
         Brixham
         Devon TQ5 9QF
         United Kingdom
         Tel: 01803 856 430
         Fax: 01803 855 955


CHIQUE FASHIONS: Creditors Confirm Liquidator's Appointment
-----------------------------------------------------------
Creditors of Chique Fashions Limited confirmed the appointment
of Situl Devji Raithatha of Springfields Business Recovery as
Liquidator on May 10.

The company can be reached at:

         Chique Fashions Limited
         6 Cairnsford Road
         Leicester LE2 6GF
         United Kingdom
         Tel: 0116 262 3562


EASTMAN KODAK: Board Elects Laura G. Quatela as Vice President
--------------------------------------------------------------
Eastman Kodak Company's Board of Directors elected Laura G.
Quatela as Vice President of the company, effective immediately.

Ms. Quatela, 49, is Director of Intellectual Property
Transactions.  She is responsible for directing strategic cross-
licensing and royalty-bearing licensing activities for the
company, including managing IP valuations and investments,
developing licensing strategy, conducting negotiations, and
structuring licenses.

She joined Kodak in 1999 and held various positions in the
Marketing, Antitrust, Trademark & Litigation staff in the
company's Legal department.  She was promoted to Director of
Corporate Commercial Affairs, Vice President Legal and Assistant
General Counsel in 2004.

From August 2002 to December 2003, Ms. Quatela served as
Director, Finance Transformation and Vice President, Finance &
Administration.  In this position she led a team charged with
planning and executing restructuring of Kodak's finance
functions.

Prior to joining Kodak, she worked for Clover Capital
Management, Inc., SASIB Railway GRS, and Bausch & Lomb Inc. In
private law practice, she was a defense litigator specializing
in mass tort cases.

She is a graduate of Denison University, B.A., International
Politics (1979) and Case Western Reserve University School of
Law, J.D. (1982).

                     About Eastman Kodak

Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- provides imaging products and services.
The company is committed to a digitally oriented growth strategy
focused on four businesses: Digital & Film Imaging Systems,
Health, Graphic Communications, and Display & Components.

                         *     *     *

As reported in the Troubled Company Reporter on May 25, Fitch
downgraded Eastman Kodak's Issuer Default Rating to 'B' from
'BB-' and the company's senior unsecured debt to 'B-' from
'B+' on May 16, 2006.  Fitch said the Outlook remains Negative.

The ratings reflected Fitch's growing concern regarding EK's
ability to generate profitable organic digital revenue growth
and sufficient free cash flow to offset continual declines in
the company's traditional business.


EIRCOM GROUP: Moody's Lowers Corporate Family Rating to Ba3
-----------------------------------------------------------
Moody's Investors Service today downgraded the Corporate Family
Rating of eircom Group plc to Ba3 from Ba2.  Moody's also
downgraded the rating of Valentia Telecommunications Unlimited's
EUR550 million unsecured notes due 2013 to B2 from Ba3 and the
rating of eircom Funding plc's EUR285 million and US$250 million
senior subordinated notes due 2013 to B2 from B1.

The rating on the existing EUR1.4 billion senior secured credit
facilities was also downgraded to Ba3 and is expected to be
withdrawn once it is refinanced by a new EUR3.5 billion secured
credit facility.  These rating actions conclude the review for
possible downgrade initiated on May 23 following the
announcement by eircom that BCM Ireland Holdings Limited had
launched a full offer for the company.  The outlook on the
ratings is stable.

Moody's notes that BCM Ireland Holdings Limited, the financial
sponsor-owned entity that acquired eircom Group plc in a
leveraged buy-out, has tendered for the Valentia
Telecommunications Unlimited and eircom Funding plc bonds.  The
ratings of these bonds reflect Moody's assessment of the
potential credit risk for any bonds that are not tendered.
Moody's expects to rate shortly the new debt that BCMIH and its
parent BCM Ireland Finance Ltd intend to issue.

The Ba3 CFR reflects:

   -- the combination of eircom's high initial leverage
following its leveraged buy-out,

   -- ongoing regulatory and competitive risks,

   -- the uncertainty regarding the company's longer-term plans
for mobile telephony, and

   -- eircom's dependence on the fixed-line telecommunications
business.

Eircom's high initial leverage and very limited financial
flexibility reflect the weak positioning of the CFR at the Ba3
level.

However, despite these significant challenges, the rating is
underpinned by:

   -- eircom's dominant position in the Irish fixed-line
telecommunications market and the competitive advantage
afforded by the company's significant scale and network
reach;

   -- the growth potential of the recently acquired mobile
operations;

   -- the strong operational cash flow provided by eircom's
businesses;

   -- a favorable competitive fixed-line environment; and

   -- the success in reducing costs and improving cash flow.

In addition, eircom benefits from the current strength of the
Irish economy and its favorable demographics, such as:

   -- population growth,

   -- net immigration and housing growth, and

   -- low average age of the population.

Given the high initial leverage, the stable outlook for eircom's
ratings reflects Moody's expectation that the company will be
able to execute its current business plan successfully, focusing
on the development of its growing mobile operations through
Meteor and limiting the revenue decline in fixed line.  Moody's
expects that a successful execution of the plan will lead to an
improvement in credit metrics.

Evidence of successful execution supported by EBITDA growth and
de-leveraging on an Adj. Debt/EBITDAR basis would lead to upward
pressure on the ratings over the medium term.  Conversely, any
indication of pressure on operating performance and/or failure
to deliver in the de-leveraging targets so that leverage on an
Adj. Debt/EBITDAR basis does not fall below 6x could result in
negative rating pressure.

BCM Ireland Holdings Limited is a holding company of eircom, the
principal provider of fixed-line telecommunications services in
Ireland and, following its acquisition of Meteor, the third
largest mobile operator in Ireland.  In the last twelve months
ending March 31, 2006, eircom generated revenues of EUR1.7
billion.


ENESCO GROUP: Amends U.S. Credit Facility to Hike Loan Borrowing
----------------------------------------------------------------
Enesco Group, Inc., signed a twelfth amendment to its current
U.S. credit facility with Bank of America, N.A. and LaSalle Bank
N.A., effective as of July 20, 2006, to increase its borrowing
availability in amounts from US$9 million to US$15 million.
With the signing of the twelfth amendment, the facility now has
a termination date of Sept. 15, 2006.

The amendment replaces most of the previous financial covenants
with covenants requiring compliance (subject to permitted
variances) with budgeted cash receipts, cash disbursements and
loan formulas.  The amendment also provides for a waiver of
existing events of default under the credit agreement as of the
date of the twelfth amendment and requires that the Company
obtain commitments for new financing.

"The twelfth amendment to our current credit facility provides
Enesco with the appropriate financing to meet the Company's
seasonal needs, as well as allows us to pursue and complete new
long-term financing," stated Marie Meisenbach Graul, Executive
Vice President and Chief Financial Officer.  "The amendment
maintains the US$70 million ceiling on our credit facility while
providing us with expanded financial flexibility over the next
two months.  We remain focused on implementing initiatives to
improve and better manage the Company's cash flow.  Managing our
expenses remains our critical priority and we continue to
evaluate additional opportunities for operating expense
reductions."

                 About Enesco Group, Inc.

Enesco Group, Inc. --- http://www.enesco.com/-- is a world
leader in the giftware, and home and garden decor industries.
Serving more than 44,000 customers worldwide, Enesco distributes
products to a wide variety of specialty card and gift retailers,
home decor boutiques, as well as mass-market chains and direct
mail retailers.  Internationally, Enesco serves markets
operating in the United Kingdom, Canada, Europe, Mexico,
Australia and Asia.  With subsidiaries located in Europe and
Canada, and a business unit in Hong Kong, Enesco's international
distribution network is a leader in the industry.  Enesco's
product lines include some of the world's most recognizable
brands, including Border Fine Arts, Bratz, Circle of Love,
Foundations, Halcyon Days, Jim Shore Designs, Lilliput Lane,
Pooh & Friends, Walt Disney Classics Collection, and Walt Disney
Company, among others.

                What Happened to Precious Moments?

On May 17, 2005, the Company terminated its license agreement
with Precious Moments, Inc., to sell Precious Moments(R)
products in the U.S.  On July 1, 2005, the Company we began
operating under an agreement with PMI where Enesco provided PMI
transitional services related to its licensed inventory through
December 31, 2005.  In conjunction with the PMI agreement, in
June 2005 the Company incurred a loss of US$7.7 million equal to
the cost of inventory transferred to PMI.  The Company has not
recorded any revenues for transition services in 2006, as PMI
has exercised its option to perform the services in-house
beginning January 1, 2006.

During the transition period, Enesco maintained inventories of
PMI products on a consignment basis and processed sales orders
on PMI's behalf.  Enesco recorded the gross sale and cost of
sale of PMI products and, additionally, recorded a charge to
cost of sales for the sale amounts to be remitted to PMI, net of
the amounts due from PMI for inventory purchases.  Enesco also
earned sales commissions and service fees from PMI for product
fulfillment, selling and marketing costs.  In the three months
ended June 30, 2006, Enesco and PMI reconciled the amounts owed
to each other and, as a result, the Company recorded an
additional charge of US$355,000 to cost of sales to properly
reflect amounts due to PMI.  At June 30, 2006, the net amount
owed PMI was US$1 million, payable in three equal installments
in July, August and September.


ENESCO GROUP: Posts US$24.9 Million Net Loss in Second Qtr. 2006
----------------------------------------------------------------
Enesco Group, Inc., reported financial results for the second
quarter ended June 30, 2006.

Net revenues were US$37.8 million compared to US$45.7 million in
the second quarter of 2005.  Second quarter 2006 revenues do not
include U.S. Precious Moments sales while second quarter 2005
included US$8.0 million in U.S. Precious Moments sales.
Excluding U.S. sales of Precious Moments from the second quarter
of 2005, net revenues in the second quarter of 2006 have
remained unchanged at US$37.8 million.  Flat revenue primarily
reflects the impact from slower ramp-up of product shipments at
the new third-party distribution center, lost sales due to
manufacturing capacity losses and lost sales of replenishment
product due to the U.S. warehouse shipping delays.  Enesco also
experienced lower sales from collectibles and Gregg Gift.

Gross profit was US$11.0 million compared to US$9.7 million in
the second quarter of 2005.  Gross profit margin expanded 7.9
percentage points to 29% from 21.1% in the second quarter of
2005, which included the loss on the Precious Moments license
termination.  The second quarter 2006 gross margin includes a
US$4.2 million increase in our inventory reserves, made
necessary by the Company's accelerated initiatives to sell slow-
moving inventory in order to help expedite resolving its
distribution issues and clear out the Elk Grove Village facility
that most likely will be vacated by year end.  Gross profit
margin in the second quarter 2005 was significantly impacted by
the US$7.7 million loss recognized on the Precious Moments
license termination in the U.S., the guaranteed minimum royalty
costs and generally lower margins on the product line.
Excluding the effects of Precious Moments from the second
quarter of 2005, gross margin in the second quarter of 2006
would have decreased 7.3% points to 29% from 36.3% in the second
quarter of 2005.  This decline is due primarily to the US$4.2
million increase in the lower of cost or market reserves
established as of June 30, 2006.

Second quarter net loss was US$24.9 million compared to a net
loss of US$22.0 million in the second quarter of 2005.  Net loss
for the quarter includes a US$2.2 million charge after-tax,
related the sale of the Dartington operation, as well as a
charge of US$4.6 million resulting from the impairment of
goodwill related to Gregg Gift.  Excluding the losses related to
Dartington and Gregg Gift, the net loss for the quarter improved
to US$17.4 million.

Basil Elliott, President and Chief Executive Officer at Enesco,
stated, "Despite the challenges Enesco is currently facing, we
continue to make progress in implementing our Operating
Improvement Plan.  Our sales in the second quarter were
negatively impacted in large part by the rationalization of our
product lines at the end of last year, as well as a shipping
disruption which resulted when we transitioned to a third-party
warehouse.  However, our exit from the U.S. Precious Moments
business and our product rationalization are benefiting our
operating margin.  In addition, while the ramp-up at the new
distribution center was slower than anticipated, we have reached
targeted shipping levels as of the last week of the second
quarter.  We are continuing to work with our third-party
logistics provider to improve performance and also plan to
utilize additional distribution resources to fulfill orders for
the remainder of the year.

"Our near-term top priority is to obtain the new long-term
financing to replace our current U.S. credit facility.  Other
priorities for the upcoming months include improving our
distribution processes and continuing to decrease corporate
expenses.  Our manufacturing relationships are also being
strengthened and new sourcing opportunities are being explored.
We remain committed to completing our Operating Improvement Plan
and returning to profitability."

Mr. Elliott added, "We will continue to focus on positioning
Enesco as a leader in our industry once more.  We took steps
toward this goal with the successful launch of new products
developed within our four merchandise categories at the summer
gift shows, including a new baby line from the Land of Milk &
Honey license and a new everyday product statement for Heartwood
Creek. We also are delighted to have received several top honors
from NALED 10 days ago at their Industry Achievement Awards.
Jim Shore was named Artist of the Year for an unprecedented
third consecutive year, and Enesco received the Collectible of
the Year award for the Heartwood Creek 'A Star Shall Guide Us'
angel figurine.  We are proud to be honored by the industry and
the customers we serve."

Cash and cash equivalents as of June 30, 2006 were US$7.3
million, versus US$12.9 million as of December 31, 2005.  Cash
and cash equivalents are a function of cash flows from operating
investing and financing activities.  Historically, the Company
says it has satisfied capital requirements with borrowings.
Cash balances and working capital requirements fluctuate due to
operating results, shipping cycles, accounts receivable
collections, inventory management and timing of payments, among
other factors.  Working capital requirements fluctuate during
the year and generally are greatest early in the fourth quarter
and lowest early in the first quarter.  Enesco has been
extending payables in order to conserve cash since May 15, 2006.

                        Financial Advisor

During the quarter, Enesco appointed Jefferies & Company as its
new financial advisor and Mesirow Financial, LLC as its new
restructuring consultant.

                          Defaults

For the week ended June 4, 2006, the Company's actual borrowings
exceeded the allowable maximum borrowing capacity under the
terms of the current credit agreement by approximately US$1.0
million, which constituted a default under the agreement.  The
Company has been working with its vendors to extend payment
terms and as a result have unfortunately slowed down some
inventory shipments.

The Company says that if it is not successful in extending
payment terms with its suppliers, or otherwise unable to pay its
suppliers promptly, the suppliers may be unwilling to ship
products, and its business, financial condition and results of
operations would be materially and adversely impacted.

The Company disclosed that on June 14, 2006, it was in technical
default of its existing U.S. credit facility as the Company had
exceeded the maximum allowable borrowing capacity under the
credit facility without immediate repayment of the excess
amount.

The Company disclosed that it entered into a twelfth amendment
to our existing U.S. credit facility, which increased its
borrowing availability, provided a waiver to our defaults under
the credit agreement and set a new facility termination date of
September 15, 2006.  Under the twelfth amendment to its credit
facility the Company will be required to pay significant usage
and credit facility extension fees (ranging from US$1.4 million
to US$2.1 million) to its lenders on or prior to the facility
termination date.  The Company relates that these payments may
have a material adverse effect on its available cash position.

                    Notes and Loans Payable

At June 30, 2006, Enesco had total lines of credit providing for
maximum borrowings of US$73.3 million, US$70.0 million of which
is available under the Company's existing U.S. credit facility.
Actual borrowings of US$42.6 million and letters of credit and a
customs bond totaling US$4.0 million were outstanding at
June 30, 2006. The net available borrowing capacity under our
existing U.S. credit facility based on eligible collateral as of
June 30, 2006 was US$1.7 million.

Full-text copies of the Company's financial statements for the
quarter ended June 30, 2006 is available for free at:

               http://ResearchArchives.com/t/s?eec

                 About Enesco Group, Inc.

Enesco Group, Inc. --- http://www.enesco.com/-- is a world
leader in the giftware, and home and garden decor industries.
Serving more than 44,000 customers worldwide, Enesco distributes
products to a wide variety of specialty card and gift retailers,
home decor boutiques, as well as mass-market chains and direct
mail retailers.  Internationally, Enesco serves markets
operating in the United Kingdom, Canada, Europe, Mexico,
Australia and Asia.  With subsidiaries located in Europe and
Canada, and a business unit in Hong Kong, Enesco's international
distribution network is a leader in the industry.  Enesco's
product lines include some of the world's most recognizable
brands, including Border Fine Arts, Bratz, Circle of Love,
Foundations, Halcyon Days, Jim Shore Designs, Lilliput Lane,
Pooh & Friends, Walt Disney Classics Collection, and Walt Disney
Company, among others.

                What Happened to Precious Moments?

On May 17, 2005, the Company terminated its license agreement
with Precious Moments, Inc., to sell Precious Moments(R)
products in the U.S.  On July 1, 2005, the Company we began
operating under an agreement with PMI where Enesco provided PMI
transitional services related to its licensed inventory through
December 31, 2005.  In conjunction with the PMI agreement, in
June 2005 the Company incurred a loss of US$7.7 million equal to
the cost of inventory transferred to PMI.  The Company has not
recorded any revenues for transition services in 2006, as PMI
has exercised its option to perform the services in-house
beginning January 1, 2006.

During the transition period, Enesco maintained inventories of
PMI products on a consignment basis and processed sales orders
on PMI's behalf.  Enesco recorded the gross sale and cost of
sale of PMI products and, additionally, recorded a charge to
cost of sales for the sale amounts to be remitted to PMI, net of
the amounts due from PMI for inventory purchases.  Enesco also
earned sales commissions and service fees from PMI for product
fulfillment, selling and marketing costs.  In the three months
ended June 30, 2006, Enesco and PMI reconciled the amounts owed
to each other and, as a result, the Company recorded an
additional charge of US$355,000 to cost of sales to properly
reflect amounts due to PMI.  At June 30, 2006, the net amount
owed PMI was US$1 million, payable in three equal installments
in July, August and September.


FLAVOURS OF INDIA: Brings In Rothman Pantall as Administrators
--------------------------------------------------------------
R. D. Smailes and S. B. Ryman of Rothman Pantall & Co. were
appointed joint administrators of Flavours of India (Wales)
Limited (Company Number 04467987) on June 30

Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was
established in 1955 as a general accountancy practice, and has
grown to its present 18 offices across the South of England. It
is one of the largest independent firms of Chartered Accountants
in the region, and rank in the top 40 in the United Kingdom.

Headquartered in Cardiff, United Kingdom, Flavours of India
(Wales) Limited is a restaurant serving Indian foods.


FLYNN CONSTRUCTION: Taps Administrators from Begbies Traynor
------------------------------------------------------------
P. Stanley and G. N. Lee of Begbies Traynor were appointed joint
administrators of Flynn Construction Limited (Company Number
04194127) on July 6.

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

Headquartered in Manchester, United Kingdom Flynn Construction
Limited is engaged in general construction and engineering.


FORD MOTOR: Recalls 1.2 Million Trucks, SUVs and Vans in the US
---------------------------------------------------------------
Ford Motor Company is supplementing the 2005 speed control
deactivation system recall to include certain speed control-
equipped gas or natural gas 1994-2002 F-250 through F-550 F-
Super Duty trucks, 2000-2002 Excursions, 1994-1996 Econoline
vans and 1996-2002 E-450 vans, as well as speed control-equipped
1998 Explorers and Mountaineers.  Ford estimates that there are
approximately 1.2 million of these vehicles currently on U.S.
roads.

"Today's action includes those vehicles that were identified as
having a interaction issue between the speed control
deactivation switch and the brake system that could, in rare
cases, cause the switch to overheat and ultimately catch fire,"
said Ray Nevi, assistant director, Ford Automotive Safety
Office.

Last year, Ford conducted a recall of approximately five million
vehicles to add a fused wiring harness to the speed control
deactivation switch to eliminate the potential risk of fire if
the switch leaked.  The fused wiring harness cuts off the
electrical current to the switch in the rare event there is
increased current due to a leaking switch.  Increased current
can result in the switch overheating.

"Following last year's recall, we indicated further analysis
would continue to determine what vehicle characteristics were
contributing to the potential for switch leakage," said Mr.
Nevi.

"After a year of intensive research, including working with
NHTSA's engineers, we have concluded that certain factors on the
affected vehicles may lead to the switch overheating."

These factors include the specific orientation of the switch on
the brake master cylinder and repeated high vacuum events at the
switch due to typical brake system operation.  It is the
repeated high vacuum events that may cause some speed control
deactivation switch seals to become more susceptible to failure,
thus allowing brake fluid to pass through the seal to the
electrical side of the switch.  Brake fluid leaks into the
switch can cause it to corrode and possibly overheat.  The high
vacuum events combined with the switch orientation increase the
potential for a fire in these vehicles.  Therefore, Ford is
recalling these additional vehicles.

Ford has a sufficient supply of fused wiring harnesses to repair
customers' vehicles.  Customers affected by this recall are
instructed to take their vehicles to a Ford or Lincoln Mercury
dealership to have fused wiring harness installed.

Owners of affected vehicles will be notified by mail shortly.
Owners who have not already had their previously recalled
vehicles repaired should contact their dealers to make
arrangements for the repair.

Customers may contact Ford's Customer Relationship Center at
1-888-222-2751.

                    About Ford Motor Company

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and
distributes automobiles in 200 markets across six continents.
With about 300,000 employees and more than 100 plants worldwide,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo.  Its automotive-related services include Ford Motor
Credit Company.

                          *     *     *

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  The outlook for the ratings is
negative.


FORD MOTOR: Second Qtr. Net Loss Up to US$254MM After Revision
--------------------------------------------------------------
Ford Motor Company revised its results for the second quarter of
2006 to reflect a US$131 million increase in net loss.

From a reported net loss of US$123 million on July 20, 2006, the
Company's net loss for the second quarter of 2006 has been
increased to US$254 million to reflect the increase in estimates
of its pension curtailment loss, as well as subsequent events
that existed as of the date of its balance sheet.

The Company also projects its full-year 2006 pension curtailment
expense to be US$1.2 billion and full-year 2006 special items to
be US$3.8 billion.

At June 30, 2006, its retiree Voluntary Employee Beneficiary
Association trust contained US$6.2 billion, invested on a long-
term basis.  The Company plans to invest about US$3 billion of
the total VEBA amount in shorter-duration fixed income
investments to facilitate retiree benefits payment.

The Company further disclosed that it expects its Premier
Automotive Group operating segment to be unprofitable for 2006.

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and
distributes automobiles in 200 markets across six continents.
With about 300,000 employees and more than 100 plants worldwide,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo.  Its automotive-related services include Ford Motor
Credit Company.

                          *     *     *

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  The outlook for the ratings is
negative.


FORD MOTOR: Hires Keneth Leet as Strategic Advisor to Bill Ford
---------------------------------------------------------------
Ford Motor Company hired Kenneth H.M. Leet as a strategic
advisor to Bill Ford, the company's chairman and chief executive
officer.

Mr. Leet is an 18-year veteran of Goldman Sachs, serving the
firm in its London and New York offices as a partner and was
responsible for its investment banking activities with
industrial companies, including Ford Motor.  Mr. Leet has also
led European banking operations for Bank of America.  Mr. Leet
will report directly to Bill Ford and work closely with senior
management in exploring strategic alternatives for the company.

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and
distributes automobiles in 200 markets across six continents.
With about 300,000 employees and more than 100 plants worldwide,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo.  Its automotive-related services include Ford Motor
Credit Company.

                          *     *     *

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12-month period.  The outlook for the ratings is
negative.


GLOBAL COMMODITIES: Brings In Rothman Pantall as Administrators
---------------------------------------------------------------
R. D. Smailes and S. B. Ryman of Rothman Pantall & Co. were
appointed joint administrators of Global Commodities (U.K.)
Limited (Company Number 04149946) on July 6.

Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was
established in 1955 as a general accountancy practice, and has
grown to its present 18 offices across the South of England. It
is one of the largest independent firms of Chartered Accountants
in the region, and rank in the top 40 in the United Kingdom.

Headquartered in Norfolk, United Kingdom, Global Commodities
(U.K.) Limited is engaged in biodiesel production.


HOMEHUNTERS UK: Names Joint Liquidators to Wind Up Business
-----------------------------------------------------------
Stewart Trevor Bennett and James Preston Bradney of Berg Kaprow
Lewis LLP were appointed Joint Liquidators of Homehunters UK
Limited on May 4 by resolutions of members and creditors.

The company can be reached at:

         Homehunters UK Limited
         121 Park Road
    Peterborough
    Cambridgeshire PE1 2TR
    United Kingdom
    Tel: 01733 552 222
              01733 552 233
    Fax: 01733 896 093
    Web: http://www.mortgagefuture.co.uk/
              http://www.uk-mortgage-advisors.co.uk/


IMPRESSIONS OF MONMOUTH: Begins Liquidation Procedure
-----------------------------------------------------
Impressions of Monmouth Limited is voluntarily liquidating its
assets after creditors proved that the company could no longer
continue its operations due to liabilities.

David Hughes was appointed Liquidator.

The company can be reached at:

         Impressions of Monmouth Limited
         The New Buildings
         Ellwood Road
         Milkwall
         Coleford
         Gloucestershire GL167LE
         United Kingdom
    Tel: 01594 839 407


KRONOS INTERNATIONAL: Completes EUR400-Mln Exchange Offer
---------------------------------------------------------
Kronos International Inc., a wholly owned subsidiary of Kronos
Worldwide, Inc. (NYSE: KRO), completed on July 25 its previously
announced offer to exchange EUR400 million aggregate principal
amount of 6-1/2% Senior Secured Notes due 2013 issued on
April 11, 2006, for a like principal amount of notes that have
been registered under the Securities Act of 1933, as amended.

The Company was advised by the exchange agent for the exchange
offer that an aggregate principal amount of EUR399,450,000 were
validly tendered and accepted in the exchange offer.

Kronos International Inc. -- http://www.kronostio2.com/-- is a
wholly owned subsidiary of Kronos Worldwide, Inc., headquartered
in Dallas, Texas and produces titanium dioxide (TiO2) pigments
in Europe.

Kronos International Inc. conducts Kronos Worldwide's titanium
dioxide pigments operations in Europe.

                        *     *     *

As reported in TCR-Europe on April 7, Standard & Poor's Ratings
Services assigned its 'B+' rating to Kronos International Inc.'s
EUR400 million senior secured notes issue due 2013.  At the same
time, the rating was placed on CreditWatch with negative
implications.

The senior secured notes also carry Fitch's BB ratings.


LBHR INTERNATIONAL: Taps A. J. Clark to Liquidate Assets
--------------------------------------------------------
A. J. Clark of Carter Clark was appointed Liquidator of LBHR
International Limited on May 4 by resolutions of members and
creditors.

The company can be reached at:

         LBHR International Limited
         Technology House
         151 Silbury Boulevard
         Milton Keynes MK9 1LH
         United Kingdom
    Tel: 01908 507 505
    Fax: 01908 424 474


LONG TERM: Appoints Bishop Fleming as Joint Administrators
----------------------------------------------------------
Samuel Jonathan Talby and Jeremiah Anthony O'Sullivan of Bishop
Fleming were appointed joint administrators of Long Term
Security (South) Limited (Company Number 04921367) on July 6.

The administrators can be contacted at:

         Russell Bedford House
         City Forum
         250 City Road
         London EC1V 2QQ
         United Kingdom
         Tel: 020 7490 7766
         Fax: 020 7490 5102

Long Term Security (South) Limited can be reached at:

         22A South Street
         Epsom
         Surrey KT18 7PF
         United Kingdom
         Tel: 01372 846 458


MISYS PLC: Shows GBP7 Million Positive Equity at May 31, 2006
-------------------------------------------------------------
Misys plc reported its preliminary financial results for the
year ended May 31, 2006.

Misys reported net profit of GBP213.1 million for the year ended
May 31, 2006, compared with a GBP62.4 million net profit for the
year ended May 31, 2005.

Revenue for the year ended May 31, 2006, was GBP953.3 million
compared to revenue of GBP854.7 million in the same period a
year ago.

At May 31, 2006, the company's balance sheet shows a positive
stockholders' equity of GBP7 million, compared with a GBP155.6
million deficit at Nov. 30, 2005.  It reports GBP649.9 million
in net assets and GBP343.6 million in net liabilities.

The preliminary results reflect:

   -- increased ILF order intake and revenue in the banking
segment;

   -- 9% increase in like-for-like operating profit in the
healthcare segment;

   -- strong recovery in operating profit on a like-for-like
basis in Sesame;

   -- strategic investment in product development; and

   -- bolt-on acquisitions.

Kevin Lomax, Chief Executive of the Company, commented, "Our
businesses are in transition to higher growth market areas.  We
are encouraged by the initial progress we have made but
recognize that there is more to do.  We are firmly focused on
increasing growth and value for shareholders."

                           About Misys PLC

Headquartered in the U.K., Misys PLC -- http://www.misys.com/--
provides industry-specific software serving the international
banking and healthcare industries and the UK general insurance
industry.


MORAJ & COMPANY: Hires Joint Liquidators from Ashcrofts
-------------------------------------------------------
Harjinder Johal and George Michael of Ashcrofts were appointed
Joint Liquidators of Moraj & Company Limited on May 12.

The company can be reached at:

         Moraj & Company Limited
         147 Amersham Avenue
         London N18 1DZ
         United Kingdom
         Tel: 020 8884 2703


P.S.A. DESIGN: Hires SFP as Joint Administrators
------------------------------------------------
Simon Franklin Plant and Daniel Plant of SFP were appointed
joint administrators of P.S.A. Design & Engineering Limited
(Company Number 05328358) on July 3.

The administrators can be reached at:

         SFP
         9 Ensign House
         Admirals Way
         Marsh Wall
         London E14 9XQ
         United Kingdom
         Tel: 020 7538 2222

P.S.A. Design & Engineering Limited can be reached:

         Unit 58
         Camp Hill Industrial Estate
         John Kempe Way
         Birmingham B12 0HU
         United Kingdom
         Tel: 0121 773 8432


PRIMARY CARE: Creditors Confirm Voluntary Liquidation
-----------------------------------------------------
Creditors of Primary Care Pharmaceuticals Limited confirmed
resolutions for voluntary liquidation and the appointment of
Allan Cooper and John Russell of The P&A Partnership on May 8.

The company can be reached at:

         Primary Care Pharmaceuticals Limited
         Unit 2 Greetwell Hollow
         Crofton Drive
         Lincoln LN3 4NR
         United Kingdom
         Tel: 01604 753 102


RCS HAULAGE: Appoints C. H. I. Moore as Liquidator
--------------------------------------------------
C. H. I. Moore of K. J. Watkin & Co. was appointed Liquidator of
RCS Haulage Limited at an extraordinary general meeting on
May 9.

The company can be reached at:

         RCS Haulage Ltd
         Watling Street Business Park
    Watling Street
    Cannock
    Staffordshire WS11 9XG
    United Kingdom
    Tel: 01543 379900


RECRUITMENT ENTERPRISES: Joint Liquidators Take Over Operations
---------------------------------------------------------------
Paul W. Ellison and Robert C. Keyes of Hurst Morrison Thomson
Corporate Recovery LLP were appointed Joint Liquidators of
Recruitment Enterprises Limited (t/a Network Midlands) by
resolutions of members and creditors.

The company can be reached at:

         Recruitment Enterprises Limited
         12 Midland Ct
         Central Park
         Lutterworth
         Leicestershire LE174PN
         United Kingdom
         Tel: 01455 556 777
         Fax: 01455 556 444


REFCO INC: Files June 2006 Statement of Cash Disbursements
----------------------------------------------------------
In lieu of comprehensive financial statements, Refco, Inc., and
its debtor-affiliates delivered to the U.S. Bankruptcy Court for
the Southern District of New York a monthly statement of their
cash receipts and disbursements for the period from June 1
to June 30, 2006.

Peter F. James, controller of Refco, reports that the company
holds a beginning cash balance of US$1,357,526,000 during the
reporting period.  Refco received US$36,191,000 and disbursed
US$21,584,000 in cash.  Refco's ending cash balance totals
US$1,372,133,000.

As paying agent for certain non-debtors and Refco, LLC, the
Debtors disbursed approximately US$3,200,000.

Refco also paid $662,000 in gross wages, of which US$354,000 was
paid on behalf of and reimbursed by the Non-Debtors and Refco
LLC.

Mr. James discloses that Refco withheld US$204,000 in employee
payroll taxes, of which US$30,000 was remitted to a third party
vendor.

Mr. James states that all taxes due and owing, as well as tax
returns, have been paid and filed for the current period.

Refco paid US$7,252,000 for professional fees for June, and
US$18,073,000 since the Petition Date.  The Debtors did not pay
professional fees on Refco LLC's behalf.

Mr. James says all insurance policies are fully paid for the
current period, including amounts owed for workers' compensation
and disability insurance.

A full-text copy of Refco's June 2006 Monthly Statement is
available at no charge at http://researcharchives.com/t/s?e19

                       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: Wants Court Nod on Intercompany Debt Settlement Pact
---------------------------------------------------------------
Refco, Inc., and its debtor-affiliates, ask the U.S. Bankruptcy
Court for the Southern District of New York to approve a
Stipulation entered into by the Debtors, Refco Securities, LLC,
Refco Capital Markets, Ltd., Marc Kirschner, the Court-appointed
trustee for RCM, and the Official Committee of Unsecured
Creditors, pursuant to Rule 9019 of the Federal Rules of
Bankruptcy Procedure.

Refco Securities, is a non-debtor subsidiary of Refco Regulated
Companies LLC and a registered broker-dealer.  According to its
books and records, RSL -- which is currently undergoing an
orderly out-of-court wind-down -- owes Refco Capital LLC (RCC)
an
aggregate of $127,459,910, on account of a series of
transactions between them that occurred before the Petition
Date.

Mr. Kirschner asserts that RCM has an ownership interest in the
RCC Debt and that RCM has additional claims against Refco
Capital.  Refco Capital contests the RCM Trustee's assertions.

The Official Committee of Unsecured Creditors has stated that it
is prepared to take action in the Court to obtain the right to
act on Refco Capital's behalf and to collect the RCC Debt.

To avert potential litigation, Refco Capital is willing to
accept full payment of the RCC Debt over time.

           RSL Segregated Funds and Sberbank Judgment

As of May 31, 2006, RSL maintained approximately $7,000,000 in
segregated funds under Rule 15c3-3 of the Securities Exchange
Act of 1934 on account of claims or potential claims of
unaffiliated third-party customers.

As an RSL customer, RCM asserts that it is owed not less than
$42,900,000 -- RCM-RSL Claim -- from RSL, which currently
maintains approximately $45,900,000 in additional segregated
funds on account of claims or potential claims asserted by RCM
against RSL.

The SEC has informally requested that RSL segregate funds for
protection of unknown RSL customers.  RSL does not currently
have sufficient available liquid assets to satisfy the non-
customer claims against it and to segregate additional funds
requested by the SEC.

Moreover, the Savings Bank of the Russian Federation has a
judgment against RSL for $123,733,733, plus interest from
June 2, 2006, and costs.  RSL and Sberbank have entered into a
separate agreement under which RSL will pay the Sberbank
Judgment, but on a basis that is pari passu with the RCC Debt.

          Intercompany Obligations Between RSL and RCM

RSL asserts that it is owed approximately $92,000,000 -- RSL-RCM
Claim -- from RCM, but that amount remains subject to further
review.

RSL has asked the RCM Trustee to consent to a set-off of
intercompany debts between RSL and RCM, including the debt
related to the RCM-Related Segregated Funds.

However, the RCM Trustee has not consented to a set-off of the
RCM-RSL Claim, but has agreed to other accommodations to permit
the pari passu payment of the RCC Debt with the Sberbank
Judgment, on terms and conditions similar to that agreed to by
Sberbank.

                      Parties Stipulate

Recognizing that RSL lacks current liquidity sufficient to
satisfy all of the outstanding claims against it and to meet all
segregation requirements and requests, and to avoid possible
litigation costs, RSL, Refco Capital, the RCM Trustee, and the
Creditors Committee entered into a stipulation dated July 20,
2006.  The parties agree that:

   (1) RSL will pay the $127,459,910 RCC Debt through pro rata
       distributions to Refco Capital based on available cash
       amount within two business days after any date on which
       available cash exceeds $2,000,000.  The Stipulation
       recognizes RSL's obligation to segregate funds for the
       customers' benefit and accounts for RSL's obligation to
       pay Refco Capital over time.

   (2) In any event, RSL is unconditionally obligated to pay
       Refco Capital at least certain aggregate percentage
       amounts of the RCC Debt on or before these dates:

          * within two business days after the execution of the
            Stipulation, 80% of the RCC Debt equal to
            $101,967,928; and

          * by December 22, 2006, 100% of the RCC Debt, plus a
            4.98% interest accruing from and after April 30,
            2006, on a sum of the unpaid portion of the RCC
            Debt.

   (3) All payments made by RSL to Refco Capital are to be held
       in a separate segregated account designated by Refco
       Capital until the Stipulation becomes final and no longer
       subject to review.  At that time, 60% of any payments
       made from RSL to Refco Capital are to be held in a
       segregated account until disputes related to ownership of
       the RCC Debt have been determined by Court order.  Refco
       Capital will be free to use the remaining 40% of funds in
       the ordinary course of administering its estate.  All
       liens and encumbrances on the RCC Debt will attach to all
       payments made by RSL in respect of the RCC Debt.  This
       provision makes significant assets available to Refco
       Capital's estate, at the same time preserving disputes
       related to the ownership of the RCC Debt for a later
       date.

   (4) RCC and the Creditors Committee will forebear from taking
       any and all actions to obtain a judgment or collect on
       the RCC Debt unless and until approval of the Stipulation
       is denied by the Court or a defined event of default
       occurs under the Stipulation.

   (5) On the occurrence of a defined event of default:

          -- the entirety of the RCC Debt becomes immediately
             due and payable;

          -- Refco Capital and the Creditors Committee are
             entitled to seek a judgment and otherwise pursue
             collection on the RCC Debt against RSL's assets;

          -- certain provisions of the Stipulation terminate
             without further Court order; and

          -- Refco Capital and the Creditors Committee reserve
             all rights to enforce the entirety of the RCC Debt,
             and all rights reserved by any party under the
             Stipulation remain reserved.

   (6) RSL is prohibited from paying or reserving for or
       granting a lien on collateral to secure any RSL Creditor
       Claim or any other non-customer claims that may become
       known to RSL following July 20, 2006, unless RSL
       contemporaneously makes a pro rata payment or grant of
       collateral to Refco Capital on the RCC Debt, or unless
       Refco Capital consents in writing.  This provision
       protects Refco Capital if additional non-customers are
       asserted against RSL.

   (7) Pending further Court order, the RCM Trustee is not to
       seek payment of or from the RCM-Related Segregated Funds,
       which are to be placed in a separate escrow account
       bearing interest.  RSL, Refco Capital, and the RCM
       Trustee also reserve their rights with respect to
       entitlement to the RCM-Related Segregated Funds.
       In addition, RSL is not to offset the RCM-RSL Claim
       against the RSL-RCM claim.

   (8) If RSL's Third-Party Customer Claims exceed the amounts
       held as Third Party Segregated Funds, the Third-Party
       Segregated Claims are to be paid first from the Excess
       Customer Segregated Funds and second from the RCM-Related
       Segregated Funds.  To the extent that any Third-Party
       Customer Claims are paid from RCM-Related Segregated
       Funds, RCM's claim will be treated as a non-customer
       claim.

              Approval of Stipulation is Necessary

J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, tells Judge Drain that the Stipulation
harmonizes the payments to be made to Refco Capital with those
made to Sberbank pursuant to a similar payment agreement.

Although RSL lacks currently available liquid assets sufficient
to meet SEC segregation requirements and to satisfy both
Sberbank's claim and the RCC Debt in full, Mr. Milmoe asserts
that the payment schedules in the Sberbank agreement and the
Stipulation facilitate immediate payment to the extent of RSL's
currently available liquid assets.

Mr. Milmoe also notes that the proposed agreement was negotiated
whereby the RCC Debt is to be satisfied in full by the end of
2006, and in the event of non-payment, Refco Capital's remedies
are preserved.  RCM's claims against RSL and Refco Capital are
fully preserved for future resolution and distribution.

In addition, Mr. Milmoe asserts, the Debtors' consent to the
authority of the Creditors Committee to bring any action
necessary to enforce the RCC Debt if there is an Event of
Default under the Stipulation is necessary and beneficial for
the efficient administration of Refco Capital's estate.

Mr. Milmoe explains that the Creditors Committee's advisors have
significant involvement in investigating Refco Capital's claims
against RSL and have played a key role in negotiating payment
terms under the Stipulation on Refco Capital's behalf.
Moreover, Refco Capital and RSL, which are related companies,
are represented by the same counsel.  It would maximize
efficiency and expedience to authorize other professional to
undertake litigation on Refco Capital's behalf against RSL.

                       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).


RHEMA BUILDING: Brings In Administrators from Chantrey Vellacott
----------------------------------------------------------------
Richard Howard Toone and Kevin Anthony Murphy of Chantrey
Vellacott DFK were appointed joint administrators of Rhema
Building Services Limited (Company Number 03443944) on July 4.

Headquartered in Hove, East Sussex, Chantrey Vellacott DFK --
http://www.cvdfk.com/-- is one of the oldest firms of chartered
accountants in the United Kingdom.  It provides accounting,
taxation and related advisory services.

Rhema Building Services Limited can be reached at:

         41 Amersham Road
         London SE14 6QQ
         United Kingdom
         Tel: 020 8692 5962


S.P.A. AEROFOILS: Robert Gibbons Begins Liquidation Procedure
-------------------------------------------------------------
Robert Gibbons of Arrans was appointed Liquidator of S.P.A.
(Aerofoils) Limited on May 4 after creditors decided to wind up
the company.

The company can be reached at:

         S.P.A. (Aerofoils) Limited
         Tamworth Road
         Lichfield
         Staffordshire WS149PX
         United Kingdom
         Tel: 01827 300 150
         Fax: 01827 300 151


SALTDEAN GARAGE: V. W. Financial Appoints Vantis as Receivers
-------------------------------------------------------------
V. W. Financial Services (U.K.) Limited appointed Sidney Hopper
and Colin Ian Vickers of Vantis PLC joint administrative
receivers of Saltdean Garage Limited (Company Number 01381811)
on July 21.

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

Headquartered in Peacehaven, United Kingdom, Saltdean Garage
Limited is engaged in vehicle sale and services.


SCOTTISH RE: Fitch Holds Negative Watch on Low-B Ratings
--------------------------------------------------------
Fitch Ratings has downgraded these Scottish Re ratings:

Scottish Re Group Ltd.

    -- Issuer default rating to 'BBB-' from 'BBB'.

Operating subsidiaries:

    -- Insurer financial strength (IFS) to 'BBB+' from 'A-'

All ratings remain on Rating Watch Negative.

The ratings action reflect Fitch's heightened concern over the
increased stress placed on financial flexibility of the holding
company following SCT's announcements yesterday.  The announced
writedown of the deferred tax asset by $112 million, as well as
the impact on new business production of subsequent rating
downgrades, are expected to further pressure the company's
earnings performance going forward.  Fitch believes that the
company has adequate liquidity over the near term and its
capital position, as measured by risk adjusted capital is within
ratings expectations.

Progress on strategic initiatives undertaken will be reflected
as they materialize and execution of plans with regard to
potential capital sources would help to alleviate ratings
pressure.

The following ratings remain on Rating Watch Negative:

Scottish Annuity & Life Insurance Company (Cayman) Limited

    -- IFS downgraded to 'BBB+' from 'A-'.

Scottish Re (U.S.) Inc.

    -- IFS downgraded to 'BBB+' from 'A-'.

Scottish Re Limited

    -- IFS downgraded to 'BBB+' from 'A-'.

Scottish Re Group Limited

    -- IDR downgraded to 'BBB-' from 'BBB';

    -- 4.5% $115 million senior convertible notes downgraded to
       'BB+' from 'BBB-';

    -- 5.875% $142 million hybrid capital units downgraded to
       'BB' from 'BB+';

    -- 7.25% $125 million non-cumulative perpetual preferred
       stock downgraded to 'BB' from 'BB+'.


SCOTTISH RE: Names Nathan V. Gemmiti as General Counsel
-------------------------------------------------------
Scottish Re Group Limited appointed Nathan V. Gemmiti as General
Counsel.

Mr. Gemmiti joined Scottish Re in 2003 as Chief Legal Counsel
for Scottish Re's North American operations.  He was appointed
earlier this year to Senior Vice President, Associate Counsel
for Scottish Re Group Limited.

Paul Goldean, Chief Executive Officer, remarked, "I have worked
closely with Nate for over three years and believe his rare
combination of technical skills, rounded legal experience and
industry perspective leave him particularly well suited for the
position."

Prior to working for Scottish Re, Mr. Gemmiti served as in-house
corporate counsel for Forum Financial Group, LLC, since renamed
Citigroup Global Transaction Services.  Mr. Gemmiti obtained a
B.A. from Saint Anselm College in Manchester, New Hampshire and
a J.D. from Boston College School of Law.

                     About Scottish Re

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

                        *    *    *

Following Scottish Re Group Limited's profit warning, Moody's
Investors Service downgraded on July 31,2006, to Ba2 from Baa2
the senior unsecured debt rating of Scottish Re; the rating
agency also downgraded to Baa2 from A3 the insurance financial
strength ratings of the company's core insurance subsidiaries,
Scottish Annuity & Life Insurance Company (Cayman) Ltd. and
Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re
remain on negative outlook.

A.M. Best Co. also downgraded on July 31, 2006, the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).
A.M. Best has also downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  All FSR and debt ratings have been placed under
review with negative implications.


SHARP INTERNATIONAL: Taps BDO Stoy as Joint Administrators
----------------------------------------------------------
Christopher Kim Rayment and Martha Hanora Thompson of BDO Stoy
Hayward LLP were appointed joint administrators of Sharp
International Limited (Company Number 03192238) on July 5.

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

Sharp International Limited can be reached at:

         Kettle Ct
         Harris Business Park
         Hanbury Road
         Stoke Prior
         Bromsgrove
         Worcestershire B60 4BD
         United Kingdom
         Tel: 01527 577 596


SQUARE SHEET: Appoints Begbies Traynor to Administer Assets
-----------------------------------------------------------
D. F. Wilson and J. N. R. Pitts of Begbies Traynor were
appointed joint administrators of Square Sheet Limited (Company
Number 05086790) on June 29.

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

Headquartered in Leeds, United Kingdom, Square Sheet Limited
retails alcoholic beverages.


TEAMWORK PARTNERSHIP: Nominates Liquidator from Mayfields
---------------------------------------------------------
Paul John Webb of Mayfields Insolvency Practitioners was
nominated Liquidator of The Teamwork Partnership Limited on
May 10.

The company can be reached at:

         The Teamwork Partnership Limited
         2 Greenfield Road
         Measham
         Swadlincote
         Derbyshire DE127LB
         United Kingdom
         Tel: 01530 274 932
         Fax: 01530 273 871


TI AUTOMOTIVE: Australian Unit Cuts 33 Jobs
-------------------------------------------
The Australian Workers Union says 18 workers have been
terminated from TI Automotive, ABC News Online reports.

The job losses were flagged last year when the Kilburn-based
company lost its contract with Holden to supply brake and fuel
systems.

Union organizer Joe Kane says another 15 workers will go at TI
through voluntary redundancies over the next few months.

                     About TI Automotive

Based in Warren, Mich., TI Automotive -- http://www.tiauto.com/
-- employs over 20,000 people at more than 130 facilities in 29
countries on six continents.

                           *   *   *

Moody's Investors Service assigned a B1 rating to TI
Automotive's Long Term Family Rating and Bank Loan Debt
effective on April 28, 2004.  Standard and Poor's gave the
company a BB- rating for its Long Term Foreign Issuer Credit and
a BB rating for its Long Term Local Issuer Credit, effective on
April 29, 2004.

As reported in TCR-Europe on March 6, S&P revised its outlook on
U.K.-based automotive supplier TI Automotive Ltd. to negative
from stable.  At the same time, S&P's affirmed its 'BB-' long-
term corporate credit and 'BB' senior secured bank loan ratings
on the group.


TI AUTOMOTIVE: Wins Contracts From Three Major Automakers
---------------------------------------------------------
TI Automotive has been awarded contracts by three major
automakers and an automotive supplier to produce brake- and
fuel-line components and assemblies, as well as air-bag tubes
for more than seven new-model vehicles, according to a company
press release.

Combined lifetime sales for the new contracts from
DaimlerChrysler, General Motors, Ford and TRW total more than
US$118.2 million.  Production at TI facilities in North America,
China and South Korea already has started on several projects,
while others are slated to begin this fall and later in 2007.

The new business awarded to TI Automotive includes production of
brake-jounce lines at the company's De Los Nogales plant in
Reynosa, Mexico.  TI Automotive's plant in Ossian, Ill., as well
as facilities in Mexico, China and South Korea will produce
various brake- and fuel-line components and assemblies.  The De
Los Nogales plant also will supply air-bag tubes.

                     About TI Automotive

Based in Warren, Mich., TI Automotive -- http://www.tiauto.com/
-- employs over 20,000 people at more than 130 facilities in 29
countries on six continents.

                           *   *   *

Moody's Investors Service assigned a B1 rating to TI
Automotive's Long Term Family Rating and Bank Loan Debt
effective on April 28, 2004.  Standard and Poor's gave the
company a BB- rating for its Long Term Foreign Issuer Credit and
a BB rating for its Long Term Local Issuer Credit, effective on
April 29, 2004.

As reported in TCR-Europe on March 6, S&P revised its outlook on
U.K.-based automotive supplier TI Automotive Ltd. to negative
from stable.  At the same time, S&P's affirmed its 'BB-' long-
term corporate credit and 'BB' senior secured bank loan ratings
on the group.


* AlixPartners Employees & Hellman Firm to Gain Majority Stake
--------------------------------------------------------------
AlixPartners LLC has agreed to a recapitalization of the firm by
which affiliates of Hellman & Friedman LLC will make a
significant investment in AlixPartners.

AlixPartners' 78 managing directors, along with the remainder of
its more than 500 employees, also will gain a considerable
equity stake in the enterprise.  Together, they will hold a
majority interest in the private firm.  Michael Grindfors, 50,
will continue as CEO of the firm.

The transaction puts the total enterprise value of the firm in
excess of US$800 million.  Other terms of the transaction were
not disclosed.  Jay Alix, 50, who founded the firm in 1981, said
he is transferring a substantial portion of his interest but
will remain with the firm as co-chairman and will be its largest
individual shareholder.  The other co-chairman will be Philip
Hammarskjold of Hellman & Friedman LLC.

"This recapitalization accomplishes three things," said Jay
Alix.  "It fulfills my long-held objective of an orderly
succession from an entrepreneurial firm to a self-perpetuating
institution.  It gives our employees, who have worked very hard
to build our firm, a significant equity ownership and an
important stake in our future.  And, it gives us an incredibly
valuable currency - equity in the form of stock - to attract and
retain the best talent in our industry."

"Long ago we institutionalized our 'magic.'  What makes us
unique among professional services firms is that we have always
been a firm with more than just one or two 'stars,'" said
Grindfors.  "Not only are we credited with inventing the term
'turnaround,' but we also are widely recognized as a pioneer in
the industry, creating innovations such as our turnaround-team
model, our share-the-risk 'success-fee' model and taking our
hands-on approach into performance improvement for financially
sound companies.  Our success has been based on creating real
value for our clients over the last 25 years, and we are
committed to continuing that tradition."

AlixPartners has enjoyed 25 years of uninterrupted revenue
growth.  In the last ten years, the firm has grown from two
offices in the U.S. to 12 offices in North America, Europe and
Asia, with affiliations in South America and Australia, and it
has achieved organic average annual growth of more than 30
percent during that time.  More than half of its revenue today
comes from providing services to healthy companies seeking
performance improvement, IT transformation and financial
advisory services.

"We are thrilled at the opportunity to support Michael Grindfors
and the managing directors and employees at AlixPartners in this
recapitalization transaction," said Mr. Hammarskjold.  "We have
been active investors in the professional services industry for
many years, and our experience and diligence indicate that by
almost any measure, AlixPartners sets the standard for
outstanding performance and brand recognition in the global
consulting industry.

"AlixPartners' commitment to getting results for its clients
will continue to drive the firm's growth, particularly in
today's uncertain economic environment," Mr. Hammarskjold
continued.  "By providing the managing directors and employees
of the firm with a greater economic stake in its future success,
we believe this recapitalization will serve as a catalyst to
help the firm grow and support its clients worldwide."

AlixPartners' present or past clients include General Motors
Corp. (U.S.), BP PLC (U.K.), Toys "R" Us Inc. (U.S.), Henkel
KgaA (Germany), Karstadt Quelle AG (Germany) and Bruno Magli Spa
(Italy), as well as some of the largest restructurings of all
time, including WorldCom Inc., Kmart Corp., Enron Corp., Refco
LLC and Calpine Corp.

Under terms of the agreement, each of AlixPartners' managing
directors will be given the opportunity to roll over some of the
value of his or her existing interests in the firm into new
equity in the recapitalized organization.  In addition,
employees other than managing directors will participate in a
"phantom equity" program.  Alix said the recapitalization was
expected to close within the next 90 days.

                   About Hellman & Friedman

Hellman & Friedman LLC is a leading private equity investment
firm with offices in San Francisco, New York and London.  The
Firm focuses on investing in superior business franchises and as
a value-added partner to management in select industries
including financial services, professional services, asset
management, software and information, media and energy.  Since
its founding in 1984, the Firm has raised and, through its
affiliated funds, managed over $8 billion of committed capital.
Recent investments include: Activant Solutions Inc., Artisan
Partners Limited Partnership, DoubleClick, Inc., GeoVera
Insurance Group Holdings, Ltd., LPL Holdings, Inc., Mondrian
Investment Partners, Ltd., The Nasdaq Stock Market, Inc. (NDAQ),
Texas Genco LLC, Vertafore, Inc. and VNU N.V.

                        About AlixPartners

AlixPartners LLC -- http://www.alixpartners.com/-- is a global
performance improvement, corporate turnaround and financial
advisory services firm.  The AlixPartners' "one-stop-shop" suite
of services range from financial restructuring and operational
performance improvement across all major corporate disciplines
(manufacturing, supply chain, IT, sales & marketing, working
capital, etc.), to financial advisory services (including
financial reporting, corporate governance and investigations) to
technology-enabled restructuring and claims management.  The
firm has more than 500 employees, with offices in Chicago,
Dallas, Detroit, Düsseldorf, London, Los Angeles, Milan, Munich,
New York, Paris, San Francisco and Tokyo.


* Moody's to Devise Capital Adequacy Scoring System for Banks
------------------------------------------------------------
Moody's Investors Service revealed its intention to enhance its
capital adequacy methodology for banks and clarify the role of
capital adequacy in the ratings process.  In particular, Moody's
will devise a Basel II capital adequacy scoring system in order
to complement its bank financial strength ratings.

According to Moody's, the advent of the new Basel II capital
standards for banks worldwide constitutes a major positive step
in the process to more tightly relate the capital base of an
institution to its overall risk profile.

"Specifically, Moody's believes that the move toward Basel II
will enhance the strategic importance of optimizing the capital
position and the capital allocation process as key drivers of
banks' financial performance," says Herve Geny, Senior Vice
President -- Risk Management Specialist in Moody's Financial
Institutions Group.

Although the quantitative output of the Basel II framework
(Pillar 1 and 2) constitutes a solid basis of measurement for
the minimum required capital of a bank, Moody's believes that
the mechanistic application of regulatory rules can lend a false
sense of accuracy and precision to the output of capital models.
Therefore, Moody's will not rely solely on the Basel II
calculations in its own framework for capital adequacy.

"Instead, Moody's intends to adopt a 'building blocks' approach
with relative weights assigned to each block," explains Geny.

The key elements of Moody's new framework will be:

   -- the numerical results from the Basel II models,

   -- the firm's observable performance relative to external
benchmarks, and

   -- expert judgment resulting from Moody's own risk management
assessment methodology.

In Moody's view, these components provide a necessary analytical
bridge between the computations of the regulatory rules and the
reality of the capital markets.

As part of the process of evaluating capital frameworks, Moody's
also intends to be able to perform comparative analyses of best
practices for various types of risks and will make these
analyses available to the market in due course.

Moody's plans for a capital adequacy framework for financial
institutions are set out in a new special comment titled
"Moody's approach to bank capital adequacy in the context of
Basel II."

                           *********

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
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                 * * * End of Transmission * * *