TCREUR_Public/060808.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Tuesday, August 8, 2006, Vol. 7, No. 156

                            Headlines


A U S T R I A

ABC: Vienna Court Orders Closing of Business
BAU & WOHNBERATUNG: Claims Registration Period Ends August 10
CHRISTIAN SCHWARZLER: Court Orders Closing of Business
DANLIS: Creditors' Meeting Slated for August 10
ELEKTRO MOSER: Klagenfurt Court Orders Closing of Business

FSE FUN: Claims Registration Period Ends August 29
GOESCHL: Creditors' Meeting Slated for August 23
HAUER BEST: Court Orders Closing of Business


F I N L A N D

M-REAL CORP: Weakening Liquidity Spurs S&P to Lower Rating to B+


F R A N C E

EUROFACTOR: Fitch Keeps Individual Rating at C
RHODIA SA: June 30 Balance Sheet Upside-Down by EUR448 Million


G E R M A N Y

ALBERT STEIGENBERGER: Claims Registration Ends August 29
APL PRELLE: Claims Registration Ends August 28
GOALS 2006-1: Moody's Rates EUR5-Mln Class D Notes at Ba3
HUWIN GRUNDBESITZVERWALTUNG: Claims Registration Ends August 28
IWKA AG: Expects First Half Loss After EUR50 Million Writedown

J. KUEHHORN: Claims Registration Ends August 28
NEW ARMBRUST: Claims Registration Ends August 28
RANDERATH ELEKTRO: Claims Registration Ends August 31
SCHLOSSEREI HORST: Claims Registration Ends August 29
SCT RESEARCH: Claims Registration Ends August 29

STEREMAT INDUSTRIE: Creditors' Meeting Slated for August 30
TELE COLUMBUS: Subscriber Sale Prompts Moody's to Affirm Ratings
TS CO.MIT: Moody's Assigns Low-B Ratings to Class E & F Notes
VOLKSWAGEN AG: Porsche Backs Repeal of Veto Law
WKI GMBH: Claims Registration Ends August 30


I R E L A N D

BCM IRELAND: eircom Shareholders Accept US$8 Billion Offer
BCM IRELAND: Moody's Assigns Low-B Ratings to Credit Facilities
EIRCOM GROUP: Shareholders Accept BCMIH's US$8 Billion Offer


I T A L Y

CNH GLOBAL: S&P Raises Corporate Credit Rating to BB
FIAT SPA: Debt Reduction Spurs S&P to Lift Credit Rating to BB
LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million


K A Z A K H S T A N

AKSEPT ASTYK: Creditors Must File Claims by Sept. 5
INTEGRITY SYSTEMS: Creditors Must File Claims by Sept. 6
M-OIL MAXIMUM: Creditors Must File Claims by Sept. 5
MARK COMPANY: Proof of Claim Deadline Slated for Sept. 6
NEFTEPROMSNAB LTD: Proof of Claim Deadline Slated for Sept. 6

PROMTEHSERVIS: Creditors' Claims Due Sept. 6
TREID AGRO-SEVER: Creditors' Claims Due Sept. 6
URALAZAVTOSERVIS: Claims Registration Ends Sept. 6
VK AGROPROMENERGOSNAB: Claims Registration Ends Sept. 6
ZAVOD TEHNOLOGICHESKOGO: Claims Registration Ends Sept. 6


K Y R G Y Z S T A N

DASTAN-6: Creditors Must File Claims by Sept. 13


L U X E M B O U R G

COLT TELECOM: Debt Reduction Prompts S&P to Raise Rating to B
THESEUS EUROPEAN: Moody's Rates EUR15-Mln Class E Notes at Ba2


L U X E M B O U R G

NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares


N E T H E R L A N D S

GETRONICS NV: S&P Keeps Low-B & Junk Ratings on Watch Negative
LEVERAGED FINANCE: S&P Rates EUR7.4-Mln Class V Notes at BB-
NORTH WESTERLY: Moody's Assigns Ba2 Rating to Class E Notes


R U S S I A

ALAPAEVSKIY FACTORY: L. Korovnikova to Manage Assets
BODAYBINSKAYA MINING: Court Starts Bankruptcy Supervision
BOGDANOVICHSKIY PORCELAIN: K. Zelyutin to Manage Assets
ENERGY: Court Names I. Morlang as Insolvency Manager
FINNEFTEKOR: Court Names V. Gorbunov as Insolvency Manager

INTERNATIONAL INDUSTRIAL: Moody's Rates US$100-Mln Notes at B1
LUKOIL: Inks Mutual Cooperation Pact with Algeria's Sonatrech
LUKOIL: Sets Up Investment Center to Finance Plant Construction
MINING EQUIPMENT: Court Names I. Morlang as Insolvency Manager
OIL-INVEST: Court Names S. Semenov as Insolvency Manager

RUSSIAN MORTGAGE: Fitch Affirms US$3.5-Mln Class C Notes at BB-
SEROV-MEAT: Court Names T. Belousova as Insolvency Manager
SIBERIAN TIMBER: Court Names V. Safonov as Insolvency Manager
SOUTHERN TELECOM: Posts RUB1.05 Billion Net Losses in 2005
SOUTH TELECOM: Taps Alexander Dobryakov Deputy Director General

* S&P Assigns B Long-Term Credit Rating to Omsk City


T U R K E Y

OYAK BANK: Fitch Keeps Foreign Currency Default Rating at BB-


U K R A I N E

ARTOR: Court Names Yaroslav Onushkanich as Insolvency Manager
BUDINITSIATIVA: Court Names Vadim Bolejko as Liquidator
BUDKOMPLEKT DONBAS: Court Names V. Piskurskij as Liquidator
BUDRESURS-UKRAINA: Court Names Igor Kapelushnij as Liquidator
FEODOSIYA' TOBACCO: Court Names T. Kushnir as Liquidator

INFORM-PROMINVEST: Court Names Igor Kapelushnij as Liquidator
ODESGOLOVPOSTACH: Court Names Kirilo Liseyev as Liquidator
POLTAVHIMMASHBUD: Court Starts Bankruptcy Supervision
RODINA: Court Names L. Demets as Insolvency Manager
SANGO: Court Names Kozyatin' State Agency as Liquidator

TOP STYLE: Donetsk Court Names S. Lunkova as Insolvency Manager
TORGBUDMATERIALI: Court Names Kozyatin' Tax Agency as Liquidator
UGOLINVEST: Donetsk Court Commences Bankruptcy Supervision
VINNITSYA' FOOD: Court Names V. Bushanskij as Liquidator


U N I T E D   K I N G D O M

BAKERS OF MAYFAIR: Names David Kaye as Administrator
BLACK JACKET: Brings In Joint Liquidators from Ashcrofts
BRITISH AIRWAYS: Earns GBP154 Million in First Quarter 2006
BRITISH AIRWAYS: Reports July 2006 Traffic & Capacity Results
BUSINESS INFORMATION: Opts to Voluntary Liquidation

C. J. PEARCE: Appoints Joint Administrators from SFP
CASTLE LIMITED: Names David Hill as Administrator
CHILTON INTERNATIONAL: Names Michael R. Ellingworth Liquidator
COTT CORPORATION: Forms Two Business Units Under New Structure
DIGITAL FIRST: Taps Chantrey Vellacott to Administer Assets

EASTMAN KODAK: 2006 Second Quarter Loss Widens to US$282 Million
EASYFLEET LIMITED: Appoints David Rubin as Joint Administrators
GUS PLC: Asks Noteholders to Tender GBP350-Mln 5.625% Notes
HUMANWORLD LIMITED: Taps Donald Bailey to Liquidate Assets
KRONOS INT'L: Parent Posts US$13.6-Mln Net Income in 2nd Quarter

LANSBOROUGH LTD.: Names G. D. Sharma as Administrator
LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million
LEWIS PLASTICS: Creditors Confirm Liquidator's Appointment
NOVELIS INC: Obtains US$2.85-Bln Financing Pledge from Citigroup
OAKTRAIL LIMITED: Creditors Confirm Voluntary Liquidation

P & S ORGAN: Taps Marriotts LLP to Administer Assets
R & N Motors: Hires Liquidator from Arrans
REDPC LIMITED: Joint Liquidators Take Over Operations
REFCO INC: US Trustee Restructures Official Creditors' Committee
REFCO INC: Chapter 11 Trustee Hires Capstone as Advisor

REFCO INC: Ch. 7 Trustee Can Reimburse US$749,579 to Refco Group
RO-TECH ENGINEERING: Appoints Barry P. Knights as Liquidator
SINGAPORE SAM: Appoints Begbies Traynor as Administrators
SOUTHERN PACIFIC: S&P Places Low-B Ratings on Watch Positive
STRAND LIGHTING: Brings In KPMG as Joint Administrators

TELEVISION & DOMESTIC: Begins Liquidation Procedure
WESTWOODS LIMITED: Taps Menzies to Administer Assets

* Large Companies with Insolvent Balance Sheets

                            *********

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


ABC: Vienna Court Orders Closing of Business
--------------------------------------------
The Trade Court of Vienna entered an order on June 20 closing
the business of LLC ABC (FN 122875z).  Court-appointed property
manager Alexander Schoeller 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. Alexander Schoeller
         c/o Dr. Stephan Riel
         Reischachstrasse 3/12 A
         1010 Vienna, Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 13 (Bankr. Case No. 2 S 99/06f).  Stephen Riel
represents Dr. Schoeller in the bankruptcy proceedings.


BAU & WOHNBERATUNG: Claims Registration Period Ends August 10
-------------------------------------------------------------
Creditors owed money by LLC Bau & Wohnberatung (FN 139410s) have
until Aug. 10 to file written proofs of claims to court-
appointed property manager Eva Riess at:

         Dr. Eva Riess
         c/o Mag. Nikolaus Vogt
         Tent Lane 3/13
         1080 Vienna, Austria
         Tel: 402 57 01-0
         E-mail: law@riess.co.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Aug. 24 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1707
         Vienna, Austria

Headquartered in Vienna, Austria the Debtor declared bankruptcy
on June 21 (Bankr. Case No. 2 S 103/06v).  Nikolaus Vogt
represents Dr. Riess in the bankruptcy proceedings.  


CHRISTIAN SCHWARZLER: Court Orders Closing of Business
------------------------------------------------------
The Land Court of St. Poelten entered an order on June 20
closing the business of LLC Christian Schwarzler Holzwerk (FN
194622i).  Court-appointed property manager Gerhard Taufner
determined that the continuing operation of the business would
reduce the value of the estate.

The property manager can be reached at:

         Dr. Gerhard Taufner
         Bahnhofstrasse 5
         3390 Melk
         Austria
         Tel:  02752/52466
         Fax: 02752/52574
         E-mail: rechtsanwalt.taufner@taufner.at          

Headquartered in Laimbach am Ostrong, Austria, the Debtor
declared bankruptcy on May 8 (Bankr. Case No. 14 S 77/06y).   


DANLIS: Creditors' Meeting Slated for August 10
-----------------------------------------------
Creditors owed money by LLC Danlis (FN 221621p) are encouraged
to attend the creditors' meeting at 10:00 a.m. on Aug. 10 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1703
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 21 (Bankr. Case 5 S 83/06z).  Astrid A. Haider serves as
the court-appointed property manager of the bankrupt estate.   
Ute Toifl represents Mag. Haider in the bankruptcy proceedings.

The property manager can be reached at:

         Mag. Astrid A. Haider
         c/o Dr. Ute Toifl     
         Tuchlauben 12/20
         1010 Vienna, Austria
         Tel: 535 46 11
         Fax: 535 46 11-11
         E-mail: haider@thr.at


ELEKTRO MOSER: Klagenfurt Court Orders Closing of Business
----------------------------------------------------------
The Land Court of Klagenfurt entered an order on June 20 closing
the business of LLC Elektro Moser (FN 114958g).  Court-appointed
property manager Helmut Binder determined that the continuing
operation of the business would reduce the value of the estate.

The property manager can be reached at:

         Dr. Helmut Binder
         Widmanngasse 43
         9500 Villach, Austria
         Tel: 04242/22127
         Fax: 04242/22127-25
         E-mail: ra@kanzlei-binder.at          

Headquartered in Treffen bei Villach, Austria, the Debtor
declared bankruptcy on June 13 (Bankr. Case No. 40 S 44/06w).  


FSE FUN: Claims Registration Period Ends August 29
--------------------------------------------------
Creditors owed money by LLC FSE Fun, Sport & Entertainment (FN
201346y) have until Aug. 29 to file written proofs of claims to
court-appointed property manager Herbert Veit at:

         Dr. Herbert Veit
         Coulinstrasse 20
         4020 Linz, Austria
         Tel: 65 05 24
         Fax: 65 69 76
         E-mail: dr.veit@utanet.at     

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Sept. 12 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Linz
         Hall 522
         5th Floor
         Linz, Austria

Headquartered in Linz, Austria the Debtor declared bankruptcy on
June 21 (Bankr. Case No. 38 S 29/06b).  


GOESCHL: Creditors' Meeting Slated for August 23
------------------------------------------------
Creditors owed money by LLC Goeschl (FN 36242y) are encouraged
to attend the creditors' meeting at 8:30 a.m. on Aug. 23 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of Krems an der Donau
         Hall A
         2nd Floor
         Krems an der Donau, Austria

Headquartered in Walkersdorf, Austria, the Debtor declared
bankruptcy on June 21 (Bankr. Case 9 S 33/06k).  Heinrich Nagl
serves as the court-appointed property manager of the bankrupt
estate.  

The property manager can be reached at:

         Dr. Heinrich Nagl
         Pfarrgasse 5
         3580 Horn, Austria
         Tel: 02982/2278
         Fax: 02982/4479
         E-mail: dr.nagl.horn@aon.at


HAUER BEST: Court Orders Closing of Business
--------------------------------------------
The Land Court of Ried im Innkreis entered an order on June 20
closing the business of KEG Hauer Best Wohnbau (FN 114167v).  
Court-appointed property manager Petra Windhager determined that
the continuing operation of the business would reduce the value
of the estate.

The property manager can be reached at:

         Mag. Petra Windhager
         Tummelplatzstrasse 5
         4780 Schaerding, Austria
         Tel: 07712 / 35 855
         Fax: 07712 / 35 855-5
         E-mail: office@kanzlei-windhager.at         

Headquartered in Taufkirchen an der Pram, Austria, the Debtor
declared bankruptcy on May 31 (Bankr. Case No. 17 S 22/06a).  


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


M-REAL CORP: Weakening Liquidity Spurs S&P to Lower Rating to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Finland-based forest products company
M-real Corp. to 'B+' from 'BB-'.  At the same time, the rating
was removed from CreditWatch, where it had been placed with
negative implications on June 30.  The 'B' short-term corporate
credit rating was affirmed.  The outlook is negative.
     
"The rating action reflects M-real's continued operating and
financial underperformance, a negative revision of financial
expectations, and a weakening liquidity position.  Market
conditions remain tough, with essentially flat prices, despite
escalating input costs," said Standard & Poor's credit analyst
Andreas Zsiga.

The financial position is now expected to improve only modestly
in the short to medium term.  The liquidity headroom has
reduced, and is bordering on vulnerable.  This exposes the
company's credit quality to further potential setbacks. Standard
& Poor's will monitor the rating closely in view of the fragile
operating environment stabilization and improvement.
     
At June 30, M-real had total debt of EUR2.687 billion.  Market
conditions remain weak in key paper grades such as fine and
magazine paper because of prevailing overcapacity, aggravated by
the recent years' weak U.S. dollar exchange rates.  Attempts to
raise prices have been unsuccessful so far.  Input costs for
energy and chemicals remain high, and increasing pulp prices
have added to margin pressure recently.  Despite cost-cutting
measures, M-real has not been able to protect margins and cash
generation.  Continued high capital expenditures, both for the
Uruguay pulp mill project and elsewhere have contributed to
increasing debt levels, further burdened by restructuring costs.
     
Margins and cash flow are expected to improve somewhat in the
short to medium term as result of further volume growth, some
price increases, cost cutting, and, over time, reduced capital
expenditures.

"There is a risk that there will be no meaningful improvement in
cash flow and debt protection.  A further weakening of the
liquidity position beyond current expectations will also put the
ratings under pressure.  Further negative rating actions could
therefore occur in the near term," added Mr. Zsiga.

"The outlook could be revised to stable, however, if there is an
overall sustained improvement in the market environment and debt
protection measures."  

Although it is unknown at this stage, the outcome of the ongoing
strategic review could also impact the credit rating in the
medium term.

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


EUROFACTOR: Fitch Keeps Individual Rating at C
----------------------------------------------
Fitch Ratings upgraded Eurofactor's Issuer Default rating to AA
from AA-.  Eurofactor's Short-term, Individual and Support
ratings are affirmed at F1+, C and 1 respectively.  The Outlook
on the IDR is Stable.

Eurofactor's IDR is upgraded to align it with its parent's
(Credit Agricole, rated AA) IDR to reflect the former's
increased role as the factoring arm of CA and the strategic
importance of this business for the group.  

CA merged Eurofactor and its own fully owned subsidiary
specialized in factoring, Transfact on Oct. 7, 2005.  The
integration between the two entities has been completed and
Eurofactor is now focusing on building up its links with its new
strong shareholder.

It will notably work on gaining market share in France, where CA
enjoys a 35% market share on banking with SMEs, leaving strong
growth potential for Eurofactor.  So far, the regional banks of
CA bring in 26% of Eurofactor's new business and Credit Lyonnais
another 37%.  In line with CA's strategy to develop specialized
financial services in Europe, Eurofactor is also developing its
business abroad to remain the largest factoring company in
Europe.  CA owns 100% of Eurofactor via its central body, Credit
Agricole S.A. (rated F1+/AA).

Eurofactor's Individual rating takes into account its strong
franchise, satisfactory profitability and asset quality and
solid capital ratios, but also its small size and credit risk
concentration.

Eurofactor offers the three traditional factoring services: debt
securing, financing of invoices and management/collection of
receivables.  It is the largest factoring company in France,
with a 23.5% market share.

CA's other ratings are Short-term F1+, Individual B and
Support 1.


RHODIA SA: June 30 Balance Sheet Upside-Down by EUR448 Million
--------------------------------------------------------------
Rhodia SA disclosed its financial results for the second quarter
ended June 30, 2006.

Rhodia reported that its net sales increased 4.5% to EUR1.321
billion in the second quarter 2006 from EUR1.264 billion a year
earlier, primarily reflecting the impact of a 3.2% increase in
prices.

Rhodia reported consolidated net income of EUR78 million for the
second quarter ended June 30, 2006, compared with a EUR196
million net loss for the same period in 2005.

Operating performance improved, with recurring EBITDA up 18% at
EUR188 million compared with EUR159 million in the second
quarter 2005.  Recurring EBITDA margin rose to 14.2%,
illustrating the Group's ability to pass on price increases to
offset the rise in the cost of raw materials.

Operating profit grew strongly to EUR100 million from EUR35
million in the second quarter 2005.

At June 30, 2006, the Company reported a consolidated EUR4.983
billion in total assets and EUR5.431 billion, resulting in a
EUR448 million stockholders' deficit.

Headquartered in Paris, France, Rhodia SA (NYSE: RHA) --
http://www.rhodia.com/-- is a global specialty chemicals  
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets.  Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs.  Rhodia employs around 19,500
people worldwide.   Rhodia is listed on Euronext Paris and the
New York Stock Exchange.

                           *     *     *

Standard & Poor's Ratings Services raised, in July 2006, its
long-term corporate credit rating on France-based chemical
producer Rhodia S.A. to 'B+' from 'B'.  At the same time, the
'B' short-term rating was affirmed and the rating on senior
unsecured and subordinated bonds was raised to 'B-' from 'CCC+'.  
S&P said the outlook is stable.


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


ALBERT STEIGENBERGER: Claims Registration Ends August 29
--------------------------------------------------------
Creditors of Albert Steigenberger Grundbesitz Aktiengesellschaft
have until Aug. 29 to register their claims with court-appointed
provisional administrator Biner Bahr.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.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 Duesseldorf
         Area A 409
         4th Floor
         Muehlenstrasse 34
         40213 Duesseldorf, 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 Duesseldorf opened bankruptcy proceedings
against Albert Steigenberger Grundbesitz AG on July 19.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Albert Steigenberger Grundbesitz AG
         Uerdinger Str. 5
         40474 Duesseldorf, Germany

         Attn: Werner Pehlemann, Manager
         Sanddornstr. 79
         47269 Duisburg, Germany

         Marco Busch and Albert Steigenberger, Managers
         Bachstr. 7
         99444 Blankenhain, Germany

The administrator can be contacted at:

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

APL PRELLE: Claims Registration Ends August 28
----------------------------------------------
Creditors of APL Prelle GmbH have until Aug. 28 to register
their claims with court-appointed provisional administrator
Karsten Toetter.

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

The meeting of creditors will be held at:

         The District Court of Luebeck
         Hall E3
         Castle Field 7
         23568 Luebeck, 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 Luebeck opened bankruptcy proceedings
against APL Prelle GmbH on July 17.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         APL Prelle GmbH
         Attn: Andreas Prelle, Manager
         Schwartauer Avenue 138
         23554 Luebeck, Germany

The administrator can be contacted at:

         Karsten Toetter
         Speersort 4 - 6
         20095 Hamburg, Germany


GOALS 2006-1: Moody's Rates EUR5-Mln Class D Notes at Ba3
---------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
four classes of asset-backed notes to be issued by GOALS 2006-1
Limited:

   -- EUR215.5 million Class A Floating Rate Notes due 2014:
Aaa;

   -- EUR20 million Class B Floating Rate Notes due 2014: Aa1;

   -- EUR12.5 million Class C Floating Rate Notes due 2014:
Baa1; and

   -- EUR5 million Class D Floating Rate Notes due 2014: Ba3.

This is the first term and public securitization of equipment
lease receivables by the Germany based originator GRENKELEASING
AG.  The Baden-Baden domiciled company is listed on the
Frankfurt stock exchange and is specialized in IT and office
equipment leasing.

The issuer will apply the proceeds from the issue of four
classes of notes to pay the purchase price for the acquisition
of a static, amortizing pool of lease receivables under a
receivables purchase agreement between the issuer and the
seller.

According to Moody's, the ratings of the notes are based, inter
alia, on these factors:

   -- the simple structure with static pool;

   -- the pool consisting only of fully amortizing lease
contracts, but no residual value risk;

   -- the high level of diversity by lessees and region;

   -- the detailed and high quality historical information
available;

   -- the servicer's experience with securitization (already
financed by three ABCP conduits); and

   -- the extremely limited commingling risk as regular
collections go directly into the account of the issuer.

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

The provisional ratings were assigned on July 6.


HUWIN GRUNDBESITZVERWALTUNG: Claims Registration Ends August 28
---------------------------------------------------------------
Creditors of HUWIN Grundbesitzverwaltung GmbH have until Aug. 28
to register their claims with court-appointed provisional
administrator Joachim Klein II.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Sept. 28 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 1240
         12th 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 HUWIN Grundbesitzverwaltung GmbH on July 3.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         HUWIN Grundbesitzverwaltung GmbH
         Attn: Ursula Dahl-Bettermann, Manager
         Schlosspark 9
         51429 Bergisch Gladbach, Germany

The administrator can be contacted at:

         Joachim Klein II
         Hansaring 79 - 81
         50670 Cologne, Germany
         

IWKA AG: Expects First Half Loss After EUR50 Million Writedown
--------------------------------------------------------------
(JazeL/CPR)

IWKA AG will post a substantial loss in the first half of 2006
after a valuation adjustment of over EUR50 million as a result
of its restructuring efforts.

Companies that do not meet the targeted return on investment
targets were reclassified as discontinued operations effective
June 30, 2006, and will be sold.  The aforementioned valuation
adjustments will result from the planned sales of:

  (1) AROSchweisszangen-Group (Automotive Division);

  (2) GSN Maschinen-Anlagen-Service GmbH (Automotive);

  (3) HASSIA-Redatron GmbH (Packaging); and

  (4) the Boehringer Group, which is already part of
      discontinued operations.

On the other hand, comparable operating earnings generated by
continuing operations for the first six months of this fiscal
year improved significantly as projected.  The same applies to
cash flow.

The interim report to June 30, 2006, will be released today.

Dieter Schafer, the manager responsible for the packaging
division, will leave the company's Executive Board at the end of
the month.  Chief Executive Wolfgang-Dietrich Hein will take on
Mr. Schafer's duties.

Wyser-Pratte Management Company, which currently owns 8% of
IWKA's outstanding shares, reveals its support to the ongoing
portfolio sharpening and executive changes at IWKA.  Wyser-
Pratte said it looks forward to an acceleration and the
completion of these efforts.  

                      About the Company

Headquartered in Karlsruhe, Germany, IWKA AG --
http://www.iwka.de/-- is among the world's leading systems  
partners to the automobile industry and the consumer goods
industries.  Some 80 consolidated companies operate closely with
one another under the umbrella of the IWKA Management Holding
Company to provide top performance: in technology, products and
service.


J. KUEHHORN: Claims Registration Ends August 28
-----------------------------------------------
Creditors of J. Kuehhorn Holz-Markt GmbH have until Aug. 28 to
register their claims with court-appointed provisional
administrator Peter Engelmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 28 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 Fuerth
         Room 3
         Ground Floor
         Office Building
         Baumenstrasse 32
         Fuerth, 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 Fuerth opened bankruptcy proceedings
against J. Kuehhorn Holz-Markt GmbH on June 27.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         J. Kuehhorn Holz-Markt GmbH
         Bahnhofstr. 8a
         91315 Hoechstadt/Aisch, Germany

The administrator can be contacted at:

         Peter Engelmann
         Archives Route 3
         90408 Nuernberg, Germany
         Tel: 0911/5978122
         Fax: 0911/5978144


NEW ARMBRUST: Claims Registration Ends August 28
------------------------------------------------
Creditors of NEW Armbrust GmbH Elektro- & Datennetzwerktechnik
have until Aug. 28 to register their claims with court-appointed
provisional administrator Egon Trockel.

Creditors and other interested parties are encouraged to attend
the meeting at 1:10 p.m. on Sept. 14 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Essen
         Hall 293
         2nd Floor
         Principal Establishment
         Gelber Bereich
         Zweigertstr. 52
         45130 Essen, 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 Essen opened bankruptcy proceedings
against NEW Armbrust GmbH Elektro- & Datennetzwerktechnik on
July 1.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         NEW Armbrust GmbH Elektro- & Datennetzwerktechnik
         Lichtbogen 42
         45141 Essen, Germany

         Attn: Jose Garcia Fernandez, Manager
         Kappertsiepen 22
         45309 Essen, Germany

The administrator can be contacted at:

         Egon Trockel
         Zweigertstrasse 43
         45130 Essen, Germany
         Tel: (0201) 793613


RANDERATH ELEKTRO: Claims Registration Ends August 31
-----------------------------------------------------
Creditors of Randerath Elektro B.V. have until Aug. 31 to
register their claims with court-appointed provisional
administrator Frank Kebekus.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Sept. 26 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of 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 Randerath Elektro B.V.on July 19.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Randerath Elektro B.V.
         Attn: Angelo Elisabeth Hendrik Geurts, Manager         
         Oberbrucher Str. 2
         52525 Heinsberg, Germany

The administrator can be contacted at:

         Dr. Frank Kebekus
         Franconia Route 14-16
         52070 Aachen, Germany


SCHLOSSEREI HORST: Claims Registration Ends August 29
-----------------------------------------------------
Creditors of Schlosserei Horst Barthel GmbH have until Aug. 29
to register their claims with court-appointed provisional
administrator Peter Jost.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 28 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Frankfurt/Main opened bankruptcy
proceedings against Schlosserei Horst Barthel GmbH on June 1.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Schlosserei Horst Barthel GmbH
         Attn: Horst Barthel, Manager
         Electron Route 39
         65933 Frankfurt/Main, Germany

The administrator can be contacted at:

         Peter Jost
         Pfingstweidstrasse 3
         D-60316 Frankfurt/Main, Germany
         Tel: 069/209739-0
         Fax: 069/20973929


SCT RESEARCH: Claims Registration Ends August 29
------------------------------------------------
Creditors of SCT Research & Consulting GmbH have until Aug. 29
to register their claims with court-appointed provisional
administrator Karl-Dieter Sommerfeld.

Creditors and other interested parties are encouraged to attend
the meeting at 11:08 a.m. on Sept. 29 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Room 1240
         12th 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 SCT Research & Consulting GmbH on July 4.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         SCT Research & Consulting GmbH
         Attn: Udo Stadelmann Leverkusen, Manager   
         Gartenstr. 4
         51519 Odenthal, Germany

The administrator can be contacted at:

         Karl-Dieter Sommerfeld
         Hammerweg 3
         51766 Engelskirchen, Germany


STEREMAT INDUSTRIE: Creditors' Meeting Slated for August 30
-----------------------------------------------------------
The court-appointed provisional administrator for Steremat
Industrie AG, Bjoern Gehde, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 9:20
a.m. on Aug. 30.

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 9:00 a.m. on Dec. 6 at the same venue.

Creditors have until Oct. 11 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Steremat Industrie AG on July 14.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Steremat Industrie Aktiengesellschaft
         Bouchestr. 12
         12435 Berlin, Germany

The administrator can be reached at:

         Dr. Bjoern Gehde
         Goethestr. 85
         10623 Berlin, Germany


TELE COLUMBUS: Subscriber Sale Prompts Moody's to Affirm Ratings
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Tele Columbus
GmbH & Co. KG, formerly Tele Columbus AG & Co. KG, following the
company's announcement to sell over 400,000 subscribers in
Baden-Wurttemberg to Kabel BW Holding GmbH.

Ratings affirmed:

   -- Corporate family rating at B1;

   -- Senior secured bank facility due 2009 at Ba3;

   -- EUR245 million senior floating rating note due 2010 at B1;
and

   -- EUR230 million senior subordinated note due 2012 at B3.

The proceeds will be used to repay the outstanding amount under
the revolving facility.  The available amount under the facility
is being downsized to EUR85 million from the current EUR100
million to reflect the approximate proportionate loss in EBITDA
to Tele Columbus from the sale.  The remainder of the cash
proceeds will be held at Tele Columbus.

Moody's notes that the subscriber sale, although resulting in an
immediate reduction in an absolute debt level and an increase in
cash, dilutes the company's value attributable to the
bondholders.  However, the ratings affirmation relies on the
indication by the management of Unity Media GmbH, the company's
shareholder, to use the proceeds to further de-leverage Tele
Columbus.  

Furthermore, Moody's notes the flexibility under the terms and
conditions of Tele Columbus' financing agreements, which allow a
fairly broad use of proceeds from asset sales.  The affirmation
of the ratings does not assume the use of this flexibility.

Moody's also understands that Unity Media will seek to continue
to rationalise Tele Columbus assets.  At this stage, the rating
agency assumes that any further proceeds from asset sales will
be used for the company's de-leveraging.

Headquartered in Germany, Tele Columbus is the largest Level 4
cable television provider.  In Q1 2006, the company generated
EUR67.6 million in revenue.


TS CO.MIT: Moody's Assigns Low-B Ratings to Class E & F Notes
-------------------------------------------------------------  
Moody's assigned definitive ratings to six classes of Notes
issued by TS Co.mit One GmbH:

   -- EUR446,300,000 Class A Floating Rate Asset Backed Notes:
Aaa;

   -- EUR15,000,000 Class B Floating Rate Asset Backed Notes:
Aa2;

   -- EUR13,900,000 Class C Floating Rate Asset Backed Notes:
A2;

   -- EUR10,200,000 Class D Floating Rate Asset Backed Notes:
Baa1

   -- EUR11,300,000 Class E Floating Rate Asset Backed Notes:
Ba1; and

   -- EUR6,300,000 Class F Floating Rate Asset Backed Notes: B1.

The ratings address the expected loss posed to investors by the
legal final maturity in June 2013.

This transaction is a cash flow CLO representing the
securitisation of 396 loan receivables under 'Schuldschein' loan
agreements to 372 German small and medium sized companies.  The
deal was structured and launched by Commerzbank AG.  Such loan
receivables are governed by German law and denominated in EUR.
Repayment is provided for either in fixed quarterly installments
or in one single amount at maturity.  

Fixed interest payments are made quarterly in arrears.  For each
receivable the relevant debtor has agreed to comply with certain
financial covenants like equity, debt-to-equity or debt coverage
ratio.  The loan receivables generally are not secured by any
collateral.  In case insolvency proceedings are opened against a
debtor, the issuer therefore will rank just pari passu to other
senior unsecured creditors of such debtor.

Moody's utilized a cash flow model in order to determine the
losses of each class of notes under various default scenarios.
Instead of assuming that the portfolio default probability
distribution follows a given general density law, Moody's
modeled the default behavior of the portfolio via the Monte
Carlo simulation embedded in its CDOROM model.  

Basic parameters needed to be assessed as main inputs for the
model were the default probability of each single debtor, and
the correlation structure among the different debtors i.e.
intra- and inter-industry correlation, respectively.  In order
to assess the default probability of each debtor, Commerzbank's
internal ratings were translated into the Moody's rating scale
by applying a mapping table.  

As regards the correlation structure, Moody's assumed an average
intra-industry asset correlation per industry in the mid teens
and an average inter-industry asset correlation of around 4%.  
Eventually, the Moody's CDOROM model was run to obtain the
default date and the recovery rate of each defaulted loan in a
given simulation run.


VOLKSWAGEN AG: Porsche Backs Repeal of Veto Law
-----------------------------------------------
Sportscar maker Porsche AG supports the abolition of a German
law that prevents a takeover of Volkswagen AG, Chad Thomas
writes for Bloomberg News.

The European Commission has filed for proceedings at the
European Court of Justice in March 2005 seeking the repeal of
the so-called VW Law that gives veto rights to the German state
of Lower Saxony, which owns 20.75% stake in the carmaker.  

The law, which dates back to 1960, caps voting rights at 20%
regardless of the shareholding size.  The VW Law likewise gives
20%-stake investors the power to veto major decisions like
factory closings and capital hike.  Porsche currently wants to
raise its 21.28%-stake in VW to 25.1%.

According to Bloomberg News, if the law is abolished, an
investor needs to hold at least 25% of the stock to gain
blocking authority, which means Porsche would retain its veto
power while Lower Saxony loses its own.

"We want to be able to fully exercise our rights as a
shareholder," Albrecht Bamler, a spokesman for Porsche, told
Blomberg.  Mr. Bamler added that the company is mulling whether
to contact the Commission's lawyers handling the case and ask
for a speedy decision.

Lower Saxony, however, is optimistic of getting a favorable
ruling from the court.  "We are confident that the German
government, as the defendant in the case, has the more
convincing arguments and that the VW Law is legal and complies
with EU law," Matthias Sickert, a Lower Saxony spokesman, told
Bloomberg.

The EJC might rule on the case later next year, as it is
unlikely to set a hearing until September, Bloomberg reports
citing Christopher Fretwell as saying.  Mr. Fretwell, however,
noted that a ruling might come earlier if a hearing was held
this fall.

"I totally disagree with the Lower Saxony assessment," Daniel
Broby, chief investment officer at Bankinvest Holding A/S, which
manages 16,800 Porsche shares, told Bloomberg.  "Government has
no place in the auto industry and I hope the European Court of
Justice agrees."

                          About Porsche

Headquartered in Stuttgart, Germany, Dr. Ing. h.c. F. Porsche AG
-- http://www.porsche.com/-- designs and manufactures cars.  It  
currently has four model lines for its lineup: the Boxster, the
911 models, the Cayenne SUV, and the new Cayman S two-seater
coupe.  Porsche offers consulting services to other companies
involved in auto and furniture manufacturing, mechanical and
electronic engineering, and construction.

                        About Volkswagen

Headquartered in Wolfsburg, Germany, the Volkswagen AG --
http://www.volkswagen.de/-- is one of the world's leading  
automobile manufacturers and the largest carmaker in Europe.  
With 47 production plants in 11 European countries and a further
seven countries in the Americas, Asia and Africa, Volkswagen has
more than 343,000 employees producing over 21,500 vehicles or
are involved in vehicle-related services on every working day.

                        *     *     *

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

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

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

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


WKI GMBH: Claims Registration Ends August 30
--------------------------------------------
Creditors of WKI GmbH Warme, Kalte, Industriemontage have until
Aug. 30 to register their claims with court-appointed
provisional administrator Christian Adolf.

Creditors and other interested parties are encouraged to attend
the meeting at 1:05 p.m. on Sept. 26 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hof
         Meeting Room 012
         Ground Floor
         Berliner Place 1
         95030 Hof, 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 Hof opened bankruptcy proceedings against
WKI GmbH Warme, Kalte, Industriemontage on June 26.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         WKI GmbH Warme, Kalte, Industriemontage
         Keyserstr. 55
         95179 Geroldsgruen, Germany

The administrator can be contacted at:

         Christian Adolf
         Ludwigstr. 50
         95028 Hof, Germany
         Tel: 09281/8331080
         Fax: 09281/8331089


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


BCM IRELAND: eircom Shareholders Accept US$8 Billion Offer
----------------------------------------------------------
Shareholders of eircom Group PLC have voted to accept the
US$8 billion offer of BCM Ireland Holdings Limited for the
issued share capital in eircom at a Court Meeting and an
associated Extraordinary General Meeting of eircom shareholders
on July 26.

The offer for the acquisition of the issued capital in eircom is
through a scheme of arrangement under section 425 of the United
Kingdom Companies Act.  The final Court Hearing to approve the
Scheme is expected on Aug. 17 and effective date of the Scheme
is expected on Aug. 18.

Under the terms of the Cash Offer, eircom's ordinary
shareholders will receive EUR2.20 in cash for each eircom Group
PLC Ordinary Share held.

Once approved by the Court, all of eircom's ordinary shares will
be delisted from the Official Lists of the U.K. Listing
Authority and the Irish Stock Exchange.

"The vote to accept the Offer by eircom shareholders is a
significant milestone in our US$8 billion offer for all the
issued share capital in eircom," Rob Topfer, Executive Director
of BCM disclosed.

"We expect our strategy will deliver significant benefits to the
people of Ireland looking to maintain a competitive edge against
European counterparts," Mr. Topfer added.

"We welcome the approval by eircom shareholders to move forward
with the offer, which remains subject to the receipt of Court
approval which is expected on or about the 17th August.  BCMIH
is a committed long term shareholder and we look forward to
working with the management team of eircom, to build on the
existing business platform by embracing new products, being
highly customer focused and investing in its network
infrastructure," Pierre Danon, a Director of BCMIH expressed.

                      About Eircom Group PLC

Headquartered in Dublin, Ireland, eircom Group PLC --
http://eircom.net/-- is the principal provider of fixed-line  
telecommunications services in Ireland, as well as the leading
Internet service provider and, following its acquisition of
Meteor, the third largest mobile operator in Ireland.

                           *    *    *

As reported in TCR-Europe on Aug 07, Moody's Investors Service
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.

Moody's Investors Service assigned a Ba2 corporate family rating
to eircom Group plc.  Concurrently Moody's changed the rating
outlook to negative from stable.

As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings
Services lowered its long-term corporate credit rating on
Valentia Telecommunications upc to 'BB-' from 'BB+'.

                           *    *    *

As reported in TCR-Europe on Aug. 2, Standard & Poor's assigned
its 'BB-' long-term corporate credit rating to BCM Ireland
Holdings Limited, the future owner of eircom and its parent
company BCM Ireland Finance Ltd.  

The EUR3.3 billion senior secured facilities borrowed by BCMIH
have been assigned a 'BB-' rating, the same as the corporate
credit rating, with a recovery rating of '2', indicating
Standard & Poor's expectation of substantial recovery of
principal (80%-100%) for senior lenders in the event of a
payment default.  


BCM IRELAND: Moody's Assigns Low-B Ratings to Credit Facilities
---------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the
proposed borrowings of BCM Ireland Holdings Limited and BCM
Ireland Finance Ltd. in the context of the leveraged buy-out of
eircom Group plc.  

Concurrently, Moody's assigned a provisional(P)Ba3 Corporate
Family Rating to BCM Ireland Finance Ltd. and withdrew the Ba3
CFR of eircom Group plc.

Ratings assigned:

BCM Ireland Finance Limited
   
   -- Corporate Family Rating: (P)Ba3; and

   -- Senior unsecured notes due 2016: (P)B2.

BCM Ireland Holdings Limited

   -- Senior secured credit facilities: (P)Ba3; and

   -- Second-lien loan: (P)B2.

The assigned provisional ratings assume there will be no
material variations to the draft legal documentation reviewed by
Moody's and assume that these agreements are legally valid,
binding and enforceable.  Upon a conclusive review of the final
documentation, Moody's will endeavor to assign definitive
ratings.  A definitive rating may differ from a provisional
rating.

The rating outlook is stable.  The ratings for the newly rated
instruments are derived from BCMIF's (P)Ba3 CFR, which reflects
the combination of:

   -- eircom's high initial leverage following its leveraged
buy-out by a group of financial investors;

   -- ongoing regulatory and competitive risks;

   -- 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 ratings are
underpinned by:

   -- eircom's strong 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.

The (P)Ba3 rating of the senior secured bank facilities reflects
their strong covenant and collateral package and assumes that
security enforcement would not be hindered by any
regulatory/licence issues.  The senior unsecured notes have been
rated (P)B2, reflecting their contractually and structurally
subordinated position relative to the senior secured bank
facilities.  

The (P)B2 rating of the EUR350 million second-lien tranche
reflects the high initial leverage and the substantial amount of
secured bank debt that effectively ranks senior to the second-
lien tranche creditors which potentially limits the amount of
residual collateral value available to the second-lien debt
holders in a recovery scenario.

Proceeds from the newly issued bank and bond debt will be used
to redeem all of eircom's net financial debt, including the
EUR1.4 billion senior secured credit facilities, the EUR550
million 7.25% senior notes due 2013 issued by Valentia
Telecommunications Unlimited and the EUR285 million 8.25% senior
subordinated notes due 2013 and the US$250 million 8.25% senior
subordinated notes due 2013 issued by eircom Funding plc.

BCM Ireland Finance 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.


EIRCOM GROUP: Shareholders Accept BCMIH's US$8 Billion Offer
------------------------------------------------------------
Shareholders of eircom Group PLC have voted to accept the
US$8 billion offer of BCM Ireland Holdings Limited for the
issued share capital in eircom at a Court Meeting and an
associated Extraordinary General Meeting of eircom shareholders
on July 26.

The offer for the acquisition of the issued capital in eircom is
through a scheme of arrangement under section 425 of the United
Kingdom Companies Act.  The final Court Hearing to approve the
Scheme is expected on Aug. 17 and effective date of the Scheme
is expected on Aug. 18.

Under the terms of the Cash Offer, eircom's ordinary
shareholders will receive EUR2.20 in cash for each eircom Group
PLC Ordinary Share held.

Once approved by the Court, all of eircom's ordinary shares will
be delisted from the Official Lists of the U.K. Listing
Authority and the Irish Stock Exchange.

"The vote to accept the Offer by eircom shareholders is a
significant milestone in our US$8 billion offer for all the
issued share capital in eircom," Rob Topfer, Executive Director
of BCM disclosed.

"We expect our strategy will deliver significant benefits to the
people of Ireland looking to maintain a competitive edge against
European counterparts," Mr. Topfer added.

"We welcome the approval by eircom shareholders to move forward
with the offer, which remains subject to the receipt of Court
approval which is expected on or about the 17th August.  BCMIH
is a committed long term shareholder and we look forward to
working with the management team of eircom, to build on the
existing business platform by embracing new products, being
highly customer focused and investing in its network
infrastructure," Pierre Danon, a Director of BCMIH expressed.

                      About Eircom Group PLC

Headquartered in Dublin, Ireland, eircom Group PLC --
http://eircom.net/-- is the principal provider of fixed-line  
telecommunications services in Ireland, as well as the leading
Internet service provider and, following its acquisition of
Meteor, the third largest mobile operator in Ireland.

                           *    *    *

As reported in TCR-Europe on Aug 07, Moody's Investors Service
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.

Moody's Investors Service assigned a Ba2 corporate family rating
to eircom Group plc.  Concurrently Moody's changed the rating
outlook to negative from stable.

As reported in TCR-Europe on Aug. 2, Standard & Poor's Ratings
Services lowered its long-term corporate credit rating on
Valentia Telecommunications upc to 'BB-' from 'BB+'.

                           *    *    *

As reported in TCR-Europe on Aug. 2, Standard & Poor's assigned
its 'BB-' long-term corporate credit rating to BCM Ireland
Holdings Limited, the future owner of eircom and its parent
company BCM Ireland Finance Ltd.  

The EUR3.3 billion senior secured facilities borrowed by BCMIH
have been assigned a 'BB-' rating, the same as the corporate
credit rating, with a recovery rating of '2', indicating
Standard & Poor's expectation of substantial recovery of
principal (80%-100%) for senior lenders in the event of a
payment default.  


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


CNH GLOBAL: S&P Raises Corporate Credit Rating to BB
----------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on agricultural equipment maker CNH Global N.V. and
related entities to 'BB' from 'BB-' following the same rating
action taken by Standard & Poor's on CNH's parent company,
Italy-based Fiat SpA.  The outlook is stable.

The corporate credit rating and outlook on publicly traded CNH
are the same as those of the parent company, auto and truck
manufacturer Fiat, because of the close ties between the two
entities.  Fiat views CNH as a core business, and continues to
provide strong liquidity support to CNH in the way of
intercompany loans and bank loan guarantees.  Fiat also has an
approximate 90% equity ownership stake in CNH.  At June 30,
2006, CNH had US$617 million of cash deposited with Fiat
affiliates' cash management pools.  CNH also had US$571 million
of intercompany borrowings with Fiat affiliates.

The outlook could be changed to positive in the near term if the
trading profits of Fiat Auto continue to grow and free cash
flows continue to improve.  In addition, CNH's earnings and cash
flows are expected to continue strengthen modestly during the
next year because of reasonably favorable business conditions
and the benefits of the company's cost-reduction programs.


FIAT SPA: Debt Reduction Spurs S&P to Lift Credit Rating to BB
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB-'.  At the same time, Standard & Poor's
affirmed its 'B' short-term rating on Fiat.  The outlook is
stable.
     
"The upgrade reflects Fiat's strong debt reduction achievements,
positive trends in the auto sector, and improvements in the
group's profitability and cash generation," said Standard &
Poor's credit analyst Nicolas Baudouin.
     
First-half 2006 results confirmed the strong recovery of Fiat
Auto and solid performances by CNH Global N.V. and Iveco.  
Trading profit for the 12 months ended June 30, 2006, reached
EUR1.6 billion, a marked improvement from the ?1.0 billion
achieved in 2005.  The group reported first-half trading profit
of EUR982 million, with a EUR183 million contribution from the
auto sector.  This constituted the third consecutive quarter of
positive operating results for the automotive division.  
Standard & Poor's expects this trend to continue in the coming
quarters.  The other sectors of the group--agricultural
equipment and trucks--showed positive operating performances
with trading margins, respectively, of 7.2% and 5.3%.
     
The group's financial profile had already dramatically improved
in the second half of 2005.  Net industrial debt declined from
EUR9.2 billion at June 30, 2005, to EUR3.2 billion at end-
December 2005, mainly through one-off transactions such as the
EUR3 billion-loan conversion into equity.  The debt reduction
trend continued in first-half 2006, with reported net debt
decreasing further to EUR2.3 billion, on the back of EUR600
million of free cash flow.  The group's ability to generate
recurrent and substantial free cash flow is a key rating driver.
     
The outlook on Fiat, currently stable, could be revised to
positive in the near term if the trading profits of Fiat Auto
continue to grow and if free cash flows continue to improve.
     
"A further upgrade would require the successful launch of
another high-volume car that would lower Fiat's dependence on
the Punto," said Mr. Baudouin.

"Fiat would also need to increase the profitability of its
European automotive operations and further reduce industrial
debt."
     
Conversely, the outlook would be revised to negative if the
automotive activities were to face an unexpected setback.
     
Current ratings also acknowledge continuing robust performance
from CNH, which still has strong margin improvement potential,
and from Iveco.


LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million
-------------------------------------------------------------
Lazard Ltd reported its financial results for the first six
months and second quarter ended June 30, 2006.  

At June 30, 2006, the Company's balance sheet showed US$2.1
billion in total assets and US$2.8 billion in total liabilities
resulting in US$745 million stockholders' deficit.

For the second quarter of 2006, pro forma net income, assuming
full exchange of outstanding exchangeable interests, increased
97% to US$62.9 million from US$32 million for the second quarter
of 2005.  Financial Advisory revenue increased 24% compared to
the second quarter of 2005 and increased 18% compared to the
first quarter of 2006.  Asset Management revenue increased 19%
compared to the second quarter of 2005.  Operating revenue for
the second quarter of 2006 increased 24% to US$410.8 million
compared to US$330.1 million for the second quarter of 2005.

Operating income increased 49% to US$84.7 million for the second
quarter of 2006, including a gain of approximately US$5.3
million from the termination of our joint venture relationship
in Italy, compared to pro forma US$57 million for the second
quarter of 2005.  Net income before exchange of outstanding
exchangeable interests increased 97% to US$23.5 million for the
second quarter of 2006 compared to pro forma income from
continuing operations of US$12.0 million for the second quarter
of 2005.

Pro forma net income, assuming full exchange of outstanding
exchangeable interests, increased 82% to US$115.4 million for
the first six months of 2006 from US$63.3 million for the first
six months of 2005.  For the first six months of 2006, operating
revenue increased 28% to US$762 million compared to US$595.7
million for the first six months of 2005, resulting from growth
in both Financial Advisory and Asset Management businesses.

For the first six months of 2006 compared to the first six
months of 2005, Financial Advisory revenue increased 31% and
Asset Management revenue increased 15%.  Operating income
increased 72% to US$162.8 million for the first six months of
2006, including a gain of approximately US$5.3 million from the
termination of our joint venture relationship in Italy, compared
to pro forma US$94.5 million for the comparable 2005 period.  
Net income before exchange of outstanding exchangeable interests
increased 82% to US$43.2 million compared to pro forma income
from continuing operations of US$23.7 million for the first six
months of 2005.

"Lazard's strong results reflect our leadership position in
Financial Advisory, as we continue to advise on some of the most
complex and important transactions" said Bruce Wasserstein,
Chairman and Chief Executive Officer of Lazard Ltd.  "Our
results also show the steady progress of our Asset Management
business, as we continue to win new mandates with expanded
product offerings.  We are focused on creating value for our
shareholders. Our approach is to apply intellectual rigor and
creativity to all parts of our business."

"We are pleased to report another strong quarter and record
financial performance year-to-date," noted Steven J. Golub,
Lazard's Vice Chairman.  "Lazard's success is a result of
continued demand for world-class, independent advice, our
retention and attraction of top talent, momentum in our Asset
Management business and our continued focus on cost containment.   
We believe we continue to be positioned for long-term growth."

The Company's quarterly revenue and profits can fluctuate
materially depending on the number, size and timing of completed
transactions on which it advised, as well as seasonality and
other factors.  Accordingly, the revenue and profits in any
particular quarter may not be indicative of future results.  As
such, Lazard management believes that annual results are the
most meaningful.

   (a) Operating revenue excludes interest expense relating to
       financing activities and revenue relating to the
       consolidation of LAM General Partnerships, each of which
       are included in net revenue.

   (b) Operating income is after interest expense and before
       income taxes and minority interests.

Lazard Ltd. -- http://www.lazard.com/-- one of the world's  
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and South America.  With origins dating
back to 1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.


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


AKSEPT ASTYK: Creditors Must File Claims by Sept. 5
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Aksept Astyk insolvent on June 15.  Subsequently, bankruptcy
proceedings were introduced at the company.

Creditors have until Sept. 5 to submit written proofs of claim
to:

         LLP Aksept Astyk
         Chaplygina Str. 5
         Almaty, Kazakshtan
         Tel: 8 300 744 68-21


INTEGRITY SYSTEMS: Creditors Must File Claims by Sept. 6
--------------------------------------------------------
LLP Integrity Systems has declared insolvency.  Creditors have
until Sept. 6 to submit written proofs of claim to:

         LLP Integrity Systems
         Micro District Al-Farabi 81/1-13
         Almaty District
         Astana, Kazakhstan


M-OIL MAXIMUM: Creditors Must File Claims by Sept. 5
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP M-Oil Maximum (RNN 090400211197) declared insolvent
on May 31.

Creditors have until Sept. 5 to submit written proofs of claim
to:

         LLP M-Oil Maximum
         Zelenaya Str. 40
         Baiserke
    Ilisky District
    Almaty Region
    Kazakhstan
    Tel: 8 333 315 19-66


MARK COMPANY: Proof of Claim Deadline Slated for Sept. 6
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Mark Company Ltd. insolvent on June 12.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Dostyk Ave. 44-99
         Almaty, Kazakhstan
         Tel: 8 (3272) 91-43-47
              8 (7052) 03-30-32


NEFTEPROMSNAB LTD: Proof of Claim Deadline Slated for Sept. 6
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty declared
LLP Neftepromsnab Ltd. insolvent on June 14.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Dostyk Ave. 44-99
         Almaty, Kazakhstan
         Tel: 8 (3272) 91-43-47
              8 (7052) 03-30-32


PROMTEHSERVIS: Creditors' Claims Due Sept. 6
--------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Promtehservis insolvent.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         LLP Promtehservis
         Room 303
         Al-Farabi Ave. 119
         Kostanai
         Kostanai Region
         Kazakhstan


TREID AGRO-SEVER: Creditors' Claims Due Sept. 6
-----------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Treid Agro-Sever insolvent on
June 12.  Subsequently, bankruptcy proceedings were introduced
at the company.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan Region
         Jumabayeva Str. 102-25
         Petropavlovsk
         North Kazakhstan Region
         Kazakhstan


URALAZAVTOSERVIS: Claims Registration Ends Sept. 6
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP Uralazavtoservis insolvent on June 14.  
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         LLP Uralazavtoservis
         Aktau, 27-49-6
         Mangistau Region
         Kazakhstan
         Tel: 8 (3292) 41-20-13
         Fax: 8 (3292) 41-20-13


VK AGROPROMENERGOSNAB: Claims Registration Ends Sept. 6
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP VK Agropromenergosnab declared insolvent on
June 9.  Subsequently, bankruptcy proceedings were introduced at
the company.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         LLP VK Agropromenergosnab
         Krylova Str. 92/1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 25-12-13


ZAVOD TEHNOLOGICHESKOGO: Claims Registration Ends Sept. 6
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of North
Kazakhstan Region declared LLP Plant of the Technological
Equipment Zavod Tehnologicheskogo Oborudovaniya insolvent on
June 6.  Subsequently, bankruptcy proceedings were introduced at
the company.

Creditors have until Sept. 6 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan Region
         Jumabayeva Str. 102-25
         Petropavlovsk
    North Kazakhstan Region
    Kazakhstan


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


DASTAN-6: Creditors Must File Claims by Sept. 13
------------------------------------------------
The Branch Dastan-6 of the OJSC Transnational Corporation Dastan
has declared insolvency.  Creditors have until Sept. 13 to
submit written proofs of claim to:

         Dastan-6
         Baitik-Baatyr Str. 36
         720005 Bishkek, Kyrgyzstan
         Tel: (+996 312) 42-83-62


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


COLT TELECOM: Debt Reduction Prompts S&P to Raise Rating to B
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on European business telecommunications
provider COLT Telecom Group Ltd. to 'B' from 'B-' and removed
the ratings from CreditWatch, where they were placed on Feb. 24.
The outlook is stable.

The issue ratings on COLT's existing senior unsecured notes were
also raised to 'B' from 'B-' and removed from CreditWatch.
     
At the same time, Standard & Poor's assigned its 'B' long-term
corporate credit rating to COLT Telecom Group S.A., the new
ultimate parent of COLT.  The outlook is stable.
     
"The upgrade, as indicated in February, is a result of COLT's
significant actual and expected debt reduction following the
group's net EUR436.6 million equity issue in June 2006," said
Standard & Poor's credit analyst Simon Redmond.

"As a result, COLT's reduced future financial debt of about
EUR276 million poses a lower risk, with ongoing annual interest
of EUR20 million and EBITDA of more than EUR200 million,
assuming the further announced early redemption of the EUR250.4
million 2008 notes on Aug. 21."
     
Standard & Poor's believes that COLT's lower leverage leaves it
better placed to withstand the pressures inherent in its
operating environment and to sustain credit quality over the
near term.

Further upward ratings momentum over the next year would most
likely be driven by both improved business standing and stronger
and more sustained free operating cash flow generation.
Alternatively, a marked loss of customers, deterioration in
margins, or reversion to sustained negative free operating cash
flow would put pressure on the ratings.


THESEUS EUROPEAN: Moody's Rates EUR15-Mln Class E Notes at Ba2
--------------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
the notes issued by Theseus European CLO S.A., a Luxembourg
special purpose company:

   -- EUR135,000,000 Class A1 Senior Secured Floating Rate Notes
due 2022: Aaa;

   -- EUR90,000,000 Class A2A Senior Secured Floating Rate Notes
due 2022: Aaa;

   -- EUR10,000,000 Class A2B Senior Secured Floating Rate Notes
due 2022: Aa1;

   -- EUR16,000,000 Class B Senior Secured Deferrable Floating
Rate Notes due 2022: Aa2;

   -- EUR19,000,000 Class C Senior Secured Deferrable Floating
Rate Notes due 2022: A2;

   -- EUR11,000,000 Class D Senior Secured Deferrable Floating
Rate Notes due 2022: Baa2; and

   -- EUR15,000,000 Class E Senior Secured Deferrable Floating
Rate Notes due 2022: Ba2.

Theseus European CLO S.A. also issued unrated EUR 35,000,000
Class F Subordinated Notes due 2022.

These definitive ratings address the expected loss of
noteholders by the legal final maturity date in August 2022.

These ratings are based upon:

   -- an assessment of the credit quality and of the
diversification of the assets to be included in the
portfolio;

   -- an assessment of the eligibility criteria, reinvestment
criteria and portfolio limits applicable to the future
additions to the portfolio;

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

   -- the expertise of INVESCO Senior Secured Management Inc. in
the management of loans portfolios; and

   -- the legal and structural integrity of the transaction.

This transaction is a high yield collateralized loan obligation
related to a EUR325,000,000 portfolio comprised of senior loans
and mezzanine loans.  The portfolio is dynamic and INVESCO
Senior Secured Management Inc. will provide investment advice to
Theseus European CLO S.A. in respect thereof.  

The portfolio was 60% ramped-up at closing, and is expected to
be fully ramped-up within 12 months, subject to compliance with
the eligibility criteria and portfolio guidelines including,
amongst other tests, the diversity score, the weighted average
rating factor, the weighted average recovery rate, the weighted
average spread and the weighted average life of the assets in
the portfolio.

Deutsche Bank AG, London Branch, arranged the transaction.


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


NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares
------------------------------------------------------------
The board of directors of Nortel Networks Limited declared a
dividend for the months of August and September on each of the
outstanding Cumulative Redeemable Class A Preferred Shares
Series 5 and the outstanding Non-cumulative Redeemable Class A
Preferred Shares Series 7.

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.  The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime.  The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.

The dividend on each series in respect of the month of August is
payable on Sept. 12, 2006, to shareholders of record of such
series at the close of business on Aug. 31, 2006.  The dividend
on each series in respect of the month of September is payable
on Oct. 12, 2006, to shareholders of record of such series at
the close of business on Sept. 29, 2006.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology   
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.  
Nortel does business in more than 150 countries.

                        *    *    *

As reported in the Troubled Company Reporter on July 10, 2006,
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

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

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

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


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


GETRONICS NV: S&P Keeps Low-B & Junk Ratings on Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services commented on its CreditWatch
placement of Dutch IT services group Getronics N.V. Following
the release of second-quarter 2006 earnings, the 'B' long-term
corporate credit rating, along with the 'CCC+' senior unsecured
debt, 'B' bank loan, and '3' recovery ratings remained on
CreditWatch with negative implications, where they had
originally been placed on Jan. 19.

The '3' recovery rating indicates Standard & Poor's expectation
of meaningful (50%-80%) recovery of principal for secured
lenders in the event of a payment default.
      
At June 30, 2006, Getronics reported gross consolidated debt of
EUR636 million.

"Getronics' balance sheet was substantially weaker at June 30,
2006, after burning cash of EUR118 million in Italy during
first-half 2006 to cover operating losses, debt repayment, and
cash transfers," said Standard & Poor's credit analyst Patrice
Cochelin.

The group sold its Italian operations in June 2006.  Net
borrowings were EUR461 million, up from EUR303 million one year
earlier.  A EUR22 million net liability relating to Italy
remains on Getronics' balance sheet.

"Standard & Poor's expects to resolve the CreditWatch status by
the end of August 2006 following clarification of the group's
liquidity position," added Mr. Cochelin.


LEVERAGED FINANCE: S&P Rates EUR7.4-Mln Class V Notes at BB-
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR249.6 million floating-rate notes and
EUR30.0 million revolving facility to be issued by Leveraged
Finance Europe Capital IV B.V., a special purpose entity.
Unrated notes totaling EUR27.2 million will also be issued.
  
Leveraged Finance Europe Capital IV is a leveraged-loan CLO
transaction that will be managed by the Leveraged Funds Group of
BNP Paribas.  This is BNP Paribas' fourth European leveraged
loans CLO.
  
The transaction incorporates structural enhancements, such as
par value test haircuts for 'CCC' rated assets and discount
asset purchases.
  
The collateral that will secure the rated notes is expected to
comprise primarily European senior secured leveraged loans.
  
                       Ratings List
          Leveraged Finance Europe Capital IV B.V.
           EUR276.8 Million Floating-Rate Notes And
              EUR30 Million Revolving Facility
  
                          Prelim.        Prelim.
          Class           rating         amount (Mil. EUR)
          -----           ------         ------
          I-D             AAA            90.0
          I-N             AAA            94.3
          Revolving
          facility        AAA            30.0
          II              AA             26.3
          III             A              11.7
          IV              BBB-           19.9
          V               BB-             7.4
          Subordinated
          notes           NR             27.2
  
          NR-Not rated.


NORTH WESTERLY: Moody's Assigns Ba2 Rating to Class E Notes
-----------------------------------------------------------
Moody's assigned these credit ratings to seven classes of notes
to be issued by North Westerly CLO III B.V., a Dutch special
purpose company:

   -- EUR290,000,000 Class A Senior Floating Rate Notes, due
2022: Aaa;

   -- EUR32,000,000 Class B Deferrable Interest Floating Rate
Notes, due 2022: Aa3;

   -- EUR17,000,000 Class C Deferrable Interest Floating Rate
Notes, due 2022: A2;

   -- EUR15,500,000 Class D Deferrable Interest Floating Rate
Notes, due 2022: Baa2;

   -- EUR14,500,000 Class E Deferrable Interest Floating Rate
Notes, due 2022: Ba2;

   -- EUR6,000,000 Class R Combination Notes, due 2022: Baa1;
and

   -- EUR10,000,000 Class P Combination Notes, due 2022: Baa3.

EUR 40,800,000 Subordinated Notes, due 2022 have also been
issued but are not rated by Moody's.

The ratings address the expected loss posed to investors by the
legal final maturity in 2022.  Moody's ratings address only the
credit risks associated with the transaction.  Other non-credit
risks, such as those associated with the timing of principal
prepayments and other market risks, have not been addressed and
may have a significant effect on yield to investors.

The rating assigned to the Class P Combination Notes by Moody's
addresses the expected loss posed to the investors by the legal
final maturity in 2022 as a proportion of the Rated Balance,
where the Rated Balance is equal, at any time, to the principal
amount of the Class P Combination Notes on the closing date
minus the aggregate of all payments made from the closing date
to such date, either through interest or principal payments.

The rating assigned to the Class R Combination Notes by Moody's
addresses the expected loss posed to the investors by the legal
final maturity in 2022 as a proportion of the Rated Balance and
of the Rated Coupon, where the Rated Balance is equal, at any
time, to the principal amount of the Class R Combination Notes
on the closing date plus a Rated Coupon of 0.25% per annum
applied on the outstanding Rated Balance minus the aggregate of
all payments made from the closing date to such date, either
through interest or principal payments.

These ratings are based upon:

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

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

   -- the overcollateralization of the Notes;

   -- the proposed currency swap transactions, which insulate
the Issuer from the volatility of the foreign currency
exchange rates in respect of non-Euro denominated
obligations;

   -- the expertise of NIBC Bank NV as a collateral manager; and

   -- the legal and structural integrity of the issue.

This transaction is a high yield collateralized loan obligation
related to a collateral portfolio of approximately EUR400
million, comprised primarily of European senior secured debt
obligations, second secured debt obligations and unsecured debt
obligations and high yield bonds.  This portfolio is dynamically
managed by NIBC Bank N.V.  This portfolio will be partially
acquired at closing date and partially during the 12 months
ramp-up period in compliance with portfolio guidelines which
include, among other tests, a diversity score test, a weighted
average rating factor test and a weighted average spread test.

Thereafter, the portfolio of loans will be actively managed and
the portfolio manager will have the option to buy or sell assets
in the portfolio.  Any addition or removal of assets will be
subject to a number of portfolio criteria.

NIBC Bank N.V arranged the transaction.


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


ALAPAEVSKIY FACTORY: L. Korovnikova to Manage Assets
----------------------------------------------------
The Arbitration Court of Sverdlovsk Region appointed Ms. L.
Korovnikova as Insolvency Manager for CJSC Alapaevskiy Factory
of Reinforced Concrete Products.  She can be reached at:

         L. Korovnikova
         Post User Box 177
         620062 Ekaterinburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A60-29271/05-S11.

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         CJSC Alapaevskiy Factory of
         Reinforced Concrete Products
         Post User Box 177
         620062 Ekaterinburg Region
         Russia


BODAYBINSKAYA MINING: Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Irkutsk Region has commenced bankruptcy
supervision procedure on LLC Bodaybinskaya Mining Company (TIN
3802008472).  

The case is docketed under Case No. A-19-8901/06-29k.

The Temporary Insolvency Manager is:

         S. Sizov
         Proletarskaya Str. 1a
         Ust-Kut
         666780 Irkutsk Region Russia

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         LLC Bodaybinskaya Mining Company
         Sadovaya Str. 12-12.
         Balakhinskiy
         Bodaybinskiy Region
         666921 Irkutsk Region
         Russia


BOGDANOVICHSKIY PORCELAIN: K. Zelyutin to Manage Assets
-------------------------------------------------------
The Arbitration Court of Sverdlovsk Region appointed Mr. K.
Zelyutin as Insolvency Manager for CJSC Bogdanovichskiy
Porcelain Factory.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A60-35306/05-S11.

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         CJSC Bogdanovichskiy Porcelain Factory
         Stepana Razina Str. 62.
         Bogdanovich
         Sverdlovsk Region
         Russia


ENERGY: Court Names I. Morlang as Insolvency Manager
----------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. I.
Morlang as Insolvency Manager for OJSC Energy.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-5457/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         OJSC Energy
         K. Marksa Str. 48
         Krasnoyarsk Region
         Russia


FINNEFTEKOR: Court Names V. Gorbunov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Orenburg Region appointed Mr. V.
Gorbunov as Insolvency Manager for OJSC Finneftekor.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A47-3394/2006-14GK.  

The Arbitration Court of Orenburg Region is located at:

         9th January Str. 64
         460046 Orenburg Region
         Russia

The Debtor can be reached at:

         OJSC Finneftekor
         Lenina Pr. 41
         Orsk
         462404 Orenburg Region
         Russia


INTERNATIONAL INDUSTRIAL: Moody's Rates US$100-Mln Notes at B1
--------------------------------------------------------------
Moody's Investors Service has assigned a long-term rating of B1
to the US$100 million 9.5% loan participation notes due 2009
issued by IIB Luxembourg S.A., the proceeds of which were used
for the sole purpose of making a loan to International
Industrial Bank of Russia.  

The loan represents a senior unsecured obligation for IIB.  The
outlook for the rating is stable.  IIB's existing B1/NP long-
and short-term foreign currency deposit ratings and E+ financial
strength rating remain unaffected.

The B1 rating for the Notes is based primarily on the
fundamental ability of IIB, the ultimate obligor in respect of
payments under the Notes, to make timely payments of interest
and ultimate payment of principal on the Loan.  The rating does
not incorporate support from either IIB's shareholder or the
Russian financial authorities.

The notes contain a put option on the part of the noteholders
after the first 18 months of the bond life.  In addition,
covenants embedded in the transaction state that the Notes may
become payable in the event that the bank's ratings were to be
downgraded following a reorganization.  The rating agency notes
that these options could potentially have adverse liquidity
implications for the bank and might exert additional downward
pressure on its ratings.  There are also financial covenants
that require the bank to maintain a consolidated total capital
adequacy of at least 20% and restrict the bank's aggregated
lending to related parties to 50% of its total equity.

According to Moody's, at year-end 2005 the bank reported a total
capital ratio of 45.3% which should enable it to comfortably
comply with the high capital adequacy requirement.  However, the
situation may be more challenging with respect to the related-
party lending restriction, as the net credit exposure to related
parties on bank's balance sheet at end-December 2005 accounted
for 43% of its total equity.

IIB is headquartered in Moscow, Russian Federation, and reported
total assets of RUB76.1 billion (US$2.6 billion) and total
equity of RUB31.6 billion (US$1.1 billion) in accordance with
IFRS as at 31 December 2005.  As at end-March 2006 the bank
ranked 19th-largest in Russia in terms of total assets, as
calculated


LUKOIL: Inks Mutual Cooperation Pact with Algeria's Sonatrech
-------------------------------------------------------------
OAO LUKOIL signed a Memorandum of Understanding in Moscow with
Algerian state oil company, Sonatrach, on Aug. 4.  The agreement
covers issues of mutual cooperation in the areas of oil and gas
exploration, field development and petroleum refining.

The Memorandum was signed during a meeting between Victor
Khristenko, Russian Federation Minister of Industry and Energy
and Shakib Helil, Algerian Minister of Energy and Mines, who is
currently on a working visit in the Russian Federation.

The MoU outlines that the two companies will engage in mutual
cooperation, together with a general exchange of sector
expertise.  Co-projects are to be developed for research and
exploration of hydrocarbon resources and for the development,
refining and marketing of liquid hydrocarbons.

The signing of the Memorandum was the culmination of a series of
negotiations between LUKOIL and Sonatrach, through which the
potential was discussed for bilateral cooperation both in
Algeria and Russia, and in other countries.

The People's Democratic Republic of Algeria has a high potential
for developing its petroleum industry and overall economic
infrastructure, which makes it one of the higher-priority
countries for LUKOIL to undertake international projects.

Acknowledging the present strategic importance of the North
African region, LUKOIL is in the process of opening a
representative office in Algeria.

                      About the Company

Headquartered in Moscow, Russia, OAO Lukoil, is the country's
largest vertically integrated oil & gas company in terms of
reserves, and one of the largest oil & gas companies in the
world.  In the first nine months of 2005, the group produced
1.92 million barrels of oil equivalent (boe) per day and in 2004
had refinery throughput of 44 million tons.  Total SPE reserves
in 2004 were just over 20 billion boe.  The group's 2005 nine-
month revenues were US$40.6 billion.

                        *     *     *

As reported in TCR-Europe on July 12, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Lukoil
OAO to 'BB+' from 'BB'.  S&P said the outlook is positive.  

As reported in the TCR-Europe on Jan. 26, Moody's Investors
Service has changed the outlook of OAO Lukoil's Ba1 Corporate
Family Rating and Ba2 Issuer Rating to positive from stable.

Moody's last rating action on LUKOIL was on April 26, when the
agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2.


LUKOIL: Sets Up Investment Center to Finance Plant Construction
---------------------------------------------------------------
The Management Committee of OAO LUKOIL decided to set up a
financial and investment center based on OAO LUKOIL-
Volganefteprodukt.  This will operate as a customer company for
building visbreaking units and a deep conversion facility at the
production sites of OAO LUKOIL-Nizhegorodnefteorgsintez.

OAO LUKOIL-Volganefteprodukt will be constructing the units
supported by in-house and borrowed funds as part of the LUKOIL
Group Refinery Upgrading Program.  New sites will be owned by
OAO LUKOIL-Volganefteprodukt and part of OAO LUKOIL-
Nizhegorodnefteorgsintez' production schedule.

The decision to establish the center based on OAO LUKOIL-
Volganefteprodukt followed from both a need to improve the
financial performance of OAO LUKOIL-Nizhegorodnefteorgsintez and
also this company's inability to finance the upgrade of its
refining capacities with borrowed funds.  As previously
reported, the shareholders of OAO LUKOIL-
Nizhegorodnefteorgsintez had decided at the Company's AGM
against attracting funds to finance the plant upgrade.

As a result OAO LUKOIL concludes that a financial and investment
center set up in this way will provide consistent and sufficient
financing to support building plant building at OAO LUKOIL-
Nizhegorodnefteorgsintez.

                      About the Company

Headquartered in Moscow, Russia, OAO Lukoil, is the country's
largest vertically integrated oil & gas company in terms of
reserves, and one of the largest oil & gas companies in the
world.  In the first nine months of 2005, the group produced
1.92 million barrels of oil equivalent (boe) per day and in 2004
had refinery throughput of 44 million tons.  Total SPE reserves
in 2004 were just over 20 billion boe.  The group's 2005 nine-
month revenues were US$40.6 billion.

                        *     *     *

As reported in TCR-Europe on July 12, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Lukoil
OAO to 'BB+' from 'BB'.  S&P said the outlook is positive.  

As reported in the TCR-Europe on Jan. 26, Moody's Investors
Service has changed the outlook of OAO Lukoil's Ba1 Corporate
Family Rating and Ba2 Issuer Rating to positive from stable.

Moody's last rating action on LUKOIL was on April 26, when the
agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2.


MINING EQUIPMENT: Court Names I. Morlang as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. I.
Morlang as Insolvency Manager for CJSC Factory of Mining
Equipment.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-6986/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Factory of Mining Equipment
         Televizornyj Per., 5.
         Krasnoyarsk Region
         Russia


OIL-INVEST: Court Names S. Semenov as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Sverdlovsk Region appointed Mr. S.
Semenov as Insolvency Manager for CJSC Oil-Invest.  He can be
reached at:

         S. Semenov
         Post User Box 177
         620062 Ekaterinburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A60-7091/06-S11.

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         CJSC Oil-Invest
         Khokhryakova Str. 98
         Ekaterinburg Region
         Russia


RUSSIAN MORTGAGE: Fitch Affirms US$3.5-Mln Class C Notes at BB-
---------------------------------------------------------------
Fitch Ratings upgraded the senior notes of Russian Mortgage
Backed Securities 2006-1 S.A.  The rating actions are:

   -- US$74.2 million Class A (ISIN XS0254447872) upgraded to A-
      from BBB+;

   -- US$10.6 million Class B (ISIN XS0254451395) affirmed at
      BBB; and

   -- US$3.5m Class C (ISIN XS0254451551) affirmed at BB-.

The rating actions follow the upgrade of the Russian Federation
sovereign rating and Country Ceiling to BBB+/F2 from BBB/F3 on
July 25 and the upgrade of the originator of the securitized
assets, JSC Vneshtorgbank to BBB+/F2 from BBB/F3 on July 27.

Under Fitch emerging market structured finance criteria the
rating cap for this transaction has been set at one notch above
the level of the Country Ceiling for Russia.  The loans backing
the transaction are first-ranking US dollar-denominated
residential mortgage loans secured on property located in the
Russian Federation.  

Given that the borrowers' income is paid in Russian roubles, a
devaluation of the US dollar/Russian rouble exchange rate would
disadvantage these borrowers and could lead to higher levels of
payment delinquency on the mortgage portfolio.  

The initial exchange rate stresses that were factored into the
credit analysis were set at the Sovereign Issuer Default rating,
so these have now been amended slightly to reflect the Sovereign
upgrade.

This transaction closed less then one month ago, therefore no
performance data are yet available.


SEROV-MEAT: Court Names T. Belousova as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Sverdlovsk Region appointed Ms. T.
Belousova as Insolvency Manager for CJSC Serov-Meat.

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A60-7901/06-S11.

The Arbitration Court of Sverdlovsk Region is located at:

         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         CJSC Serov-Meat
         Gagarina Str. 2A
         Serov
         624980 Sverdlovsk Region
         Russia


SIBERIAN TIMBER: Court Names V. Safonov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Irkutsk Region appointed Mr. V. Safonov
as Insolvency Manager for LLC Siberian Timber Industry Complex.  
He can be reached at:

         V. Safonov
         Post User Box 146
         664025 Irkutsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A19-10083/06-8.

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         LLC Siberian Timber Industry Complex
         Lesopilnaya Str. 1
         Zima
         665383 Irkutsk Region
         Russia


SOUTHERN TELECOM: Posts RUB1.05 Billion Net Losses in 2005
----------------------------------------------------------
Southern Telecommunications Company (UTK) has reported its 2005
audited consolidated financial statements compiled according to
International Financial Reporting Standards (IFRS).  

The audit of 2005 financial statements, carried out by Ernst &
Young LLC is summarized as follows:

   -- 2005 consolidated revenue rose 8.33% over 2004 to
      RUB18.8 billion (US$652 million);

   -- 2005 OIBDA2 increased 15.19% year on year to RUB4.9
      billion (US$172 million), representing an OIBDA margin of
      26.33%;

   -- operating profit for the reporting period grew 11.42% over
      2004 to RUB1.8 billion (US$61 million);  

   -- 2005 revenues from new value added services3 rose 74.21%
      to RUB1.4 billion (US$49 million); revenues from local
      telephone services increased 17.19% to RUB7.16 billion
      (US$249 million), and

   -- volume of xDSL-based Internet traffic tripled to 172.6
      Tbytes.

Commenting on the 2005 financial results, Alexander Andreev, UTK
CEO, stated: "Due to active implementation of the Company's
development strategy UTK PJSC succeeded in improving its main
financial and performance results:

   -- active development of new technologies and up-to-date
      marketing solutions enabled the Company to increase its
      revenues from value-added telecom services by 74.21% in
      2005;

   -- in 2005 the Company continued to reduce its investment
      program: capex volume stood at RUB 3,213.5 million
      representing a 74.3%-decrease over 2004;

   -- the staff number had also been cut: as at the beginning of
      2006 the number of the Company's employees on payroll was
      37,660 people, which was down 4.3% over the beginning of
      2005.

"In line with the Company's policy on optimization of the debt
size and structure UTK PJSC placed series 04 bond issue worth
RUB5 billion.  The funds obtained from placement of 04-series
bonds were used for restructuring of UTK's debts.

"The Company undertook a number of measures to make UTK more
attractive for investment community.  As a result its market
capitalisation rose 90.7% over 2004 reaching US$515 million as
of Jan. 1, 2006.

"The Company's priority objectives for 2006 are to strengthen
its market positions, improve business efficiency, drive the
growth of new services and increase the Company's
capitalization."

In 2005, the company posted a RUB1.05 billion net loss, compared
with a RUB332 million net loss in 2004.

The increase in UTK's 2005 revenues from telecommunications
services was mainly due to expansion in the Company subscribers'
base, a 30.3%-increase in average revenue per unit to RUB139.4
per month and growth in revenues from value-added services and
traffic transit services for interconnected operators.

The company's 2005 revenues from local telephone services grew
by 17.19% to RUB7.16 billion.  Revenues from local telephone
calls (monthly subscriber fee and time-based payments for local
calls) rose by 35.78% to RUB6.5 billion.

                      About the Company

Headquartered in Krasnador, Russia, Southern Telecommunications
Co. -- http://www.stcompany.ru/-- provides local, long-  
distance, and cellular telephone, paging and telegraph services.

                        *     *     *

Southern Telecommunications carries Moody's Investors' Service's
Caa1 issuer rating and B3 long-term corporate family rating
since 2004.  Standard & Poor's also assigned junk ratings to the
Company's issuer credit in 2005.


SOUTH TELECOM: Taps Alexander Dobryakov Deputy Director General
---------------------------------------------------------------
Southern Telecommunications Company PJSC (UTK) has appointed
Alexander Dobryakov as its Deputy Director General responsible
for Economics and Finance, effective Aug. 1.  Prior to his
appointment, Mr. Dobryakov held the position of General Director
at LLC Graft-Trading.

Previously, Irina Prokofieva who is now employed at Svyazinvest
OJSC held the post of Deputy Director General of UTK PJSC for
Economics and Finance.

Born in 1972, Mr. Dobryakov graduated in 1996 from the St.
Petersburg State Academy of Engineering and Economics named
after P. Toliatti and gained a diploma in management economics.

In 1997-1998 he held the post of head of the corporate finances
group at IC CJSC AVK, St. Petersburg.  Between 1998-2000 he was
Deputy Financial Director at CJSC Farm Tamda 77, St. Petersburg
and from 2000-2006 he was Financial Director, General Director
and Business Adviser at LLC Graft-Trading, St. Petersburg.

                      About the Company

Headquartered in Krasnador, Russia, Southern Telecommunications
Co. -- http://www.stcompany.ru/-- provides local, long-  
distance, and cellular telephone, paging and telegraph services.

                        *     *     *

Southern Telecommunications carries Moody's Investors' Service's
Caa1 issuer rating and B3 long-term corporate family rating
since 2004.  Standard & Poor's also assigned junk ratings to the
Company's issuer credit in 2005.


* S&P Assigns B Long-Term Credit Rating to Omsk City
----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
credit rating to the Russian City of Omsk, the administrative
center of the Omsk Oblast located in Western Siberia.  The
outlook is stable.  At the same time, a 'ruBBB+' Russian scale
rating was assigned.

"The ratings are constrained by the city's poor debt profile,
which has a prevalence of short-term debt; weak, although
improving, budgetary performance; limited financial flexibility
and predictability; and moderately low liquidity," said Standard
& Poor's credit analyst Felix Ejgel.

"These risks are partially mitigated by the city's commitment to
gradual improvement of its financial indicators and debt
structure, backed by additional financial support from the Omsk
Oblast, and higher-than-average industrial output growth."
     
The city's debt portfolio is dominated by short-term debt, and
therefore, debt service is expected to be a high 30% of total
revenues in 2006.  Moreover, the city's historical debt
servicing record is poor, as it defaulted in the past and had to
restructure its overdue debts twice, in 2003 and 2005.
     
Nevertheless, after the oblast took over the city's foreign
currency denominated debt in 2006, the city's direct debt has
reduced significantly; it is expected to fall to an expected 30%
of operating revenues by the end of 2006 from a high 91% in
2004.  In addition, the debt burden is not expected to exceed
40% of operating revenues over the next two to three years.
     
Standard & Poor's expects that the city's strict control over
current spending will help stabilize budgetary performance;
operating performance is expected to at least balance and
single-digit deficits after capital expenditures are also
expected. Investments by private companies, the oblast, and the
state, in Omsk's infrastructure will expand the city's tax base
and contribute to its revenue growth.
    
"If the city's budgetary and debt indicators strengthen
significantly above expectations, the outlook could be changed
to positive," said Mr. Ejgel.

"Conversely, if the city fails to reduce debt service and
maintain budgetary performance, at least at the planned level,
this could put pressure on the ratings."


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


OYAK BANK: Fitch Keeps Foreign Currency Default Rating at BB-
-------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Oyak Bank A.S.'s ratings at
foreign and local currency Issuer Default BB-, Short-term
foreign and local currency B, Individual C/D, Support 3 and
National Long-term A.  The Outlook on the Issuer Default is
Positive and the Outlook on the National rating is Stable.

The ratings reflect Oyak Bank's stable core deposit base,
improved efficiency, sound asset quality and adequate
capitalization.  These are balanced by its rapidly-growing loan
portfolio in a potentially volatile operating environment.  The
key drivers of future upgrades to the bank's ratings would be
sustained improvements in profitability and growth of its
franchise.  

Fitch expects Oyak Bank's H106 performance will be negatively
affected by the recent volatility in the Turkish financial
markets, including higher interest rates and the depreciation of
the Turkish Lira.  The agency estimates the profitability in
2006 will be lower than that of 2005, despite a recovery in the
financial markets.  Downside risk to the ratings is still
limited, unless there is a major deterioration in the Turkish
economy resulting in widespread asset quality problems.

Oyak Bank is 100%-owned by Turkish armed forces pension fund,
which is the supplementary social security institution for
officers and non-commissioned officers of the Turkish armed
forces.  Oyak is among the largest conglomerates in Turkey with
a turnover of US$7.896 billion in 2005; it is active in
diversified sectors such as cement, automotive, energy,
construction, technology, food, chemicals and services.  

Oyak Bank's primary source of support, in case of need, would be
its shareholder, Oyak, which is legally required to support the
bank.  Fitch recognizes that Oyak has a high propensity to
support the bank; however, its ability to do so is considered
moderate, due to the foreign currency Issuer Default BB- rating
of the sovereign.

Oyak Bank is a mid-sized bank, with retail banking as it core
activity, although it has recently turned its focus to small
business banking.  It had 301 domestic branches at end-2005.

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


ARTOR: Court Names Yaroslav Onushkanich as Insolvency Manager
----------------------------------------------------------------
The Economic Court of Lviv Region appointed Yaroslav Onushkanich
as Liquidator/Insolvency Manager for LLC Artor (code EDRPOU
30420751).  He can be reached at:

         Yaroslav Onushkanich
         Strijska Str. 71-b/3
         79031 Lviv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 5.  The case is docketed
under Case No. 6/81-29/118.

The Economic Court of Lviv Region is located at:

         Lichakivska Str. 81
         79010 Lviv Region
         Ukraine

The Debtor can be reached at:

         LLC Artor
         Lisozavodska Str. 5
         Sudova Vishnya
         Lviv Region
         Ukraine


BUDINITSIATIVA: Court Names Vadim Bolejko as Liquidator
-------------------------------------------------------
The Economic Court of Kyiv Region appointed Vadim Bolejko as
Liquidator/Insolvency Manager for LLC Budinitsiativa (code
EDRPOU 33279851).  He can be reached at:

         Vadim Bolejko
         Office 12
         Anishenko Str. 12
         Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 20.  

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 Budinitsiativa
         Sholudenko Str. 19
         Vishgorod
         07300 Kyiv Region
         Ukraine


BUDKOMPLEKT DONBAS: Court Names V. Piskurskij as Liquidator
-----------------------------------------------------------
The Economic Court of Donetsk Region appointed Mr. V. Piskurskij
as Liquidator/Insolvency Manager for LLC Budkomplekt Donbas
(code EDRPOU 32879922).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
5/99 B.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         LLC Budkomplekt Donbas
         Kujbishev Str. 143-V
         83060 Donetsk Region
         Ukraine


BUDRESURS-UKRAINA: Court Names Igor Kapelushnij as Liquidator
-------------------------------------------------------------
The Economic Court of Kyiv appointed Igor Kapelushnij as
Liquidator/Insolvency Manager for LLC Budresurs-Ukraina (code
EDRPOU 32846716).  He can be reached at:

         Igor Kapelushnij
         a/b 53
         03037 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 26.  The case is docketed
under Case No. 23/279-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Budresurs-Ukraina
         Levitan Str. 8
         03083 Kyiv Region
         Ukraine


FEODOSIYA' TOBACCO: Court Names T. Kushnir as Liquidator
--------------------------------------------------------
The Economic Court of AR Krym Region appointed Mr. T. Kushnir as
Liquidator/Insolvency Manager for OJSC Feodosiya' Tobacco
Factory (code EDRPOU 00383136).  She can be reached at:

         T. Kushnir
         Pravdi Avenue 96/17
         04208 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 16.  The case is docketed
under Case No. 2-1/10772-2006.

The Economic Court of AR Krym Region is located at:

         Karl Marks Str. 18
         Simferopol
         95000 AR Krym Region
         Ukraine

The Debtor can be reached at:

         OJSC Feodosiya' Tobacco Factory
         Druzhbi Str. 62
         Feodosiya
         AR Krym Region
         Ukraine


INFORM-PROMINVEST: Court Names Igor Kapelushnij as Liquidator
-------------------------------------------------------------
The Economic Court of Kyiv appointed Igor Kapelushnij as
Liquidator/Insolvency Manager for LLC Inform-Prominvest (code
EDRPOU 33777759).  He can be reached at:

         Igor Kapelushnij
         a/b 53
         03037 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 26.  The case is docketed
under Case No. 23/278-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine

The Debtor can be reached at:

         LLC Inform-Prominvest
         Izumska Str. 7
         03039 Kyiv Region
         Ukraine


ODESGOLOVPOSTACH: Court Names Kirilo Liseyev as Liquidator
----------------------------------------------------------
The Economic Court of Odessa Region appointed Kirilo Liseyev as
Liquidator/Insolvency Manager for Odesgolovpostach (code EDRPOU
01886796).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
21/05-06-189.

The Economic Court of Odessa Region is located at:

         Shevchenko Avenue 4
         65032 Odessa Region
         Ukraine

The Debtor can be reached at:

         Odesgolovpostach
         Velika Arnautska Str. 2b
         65012 Odessa Region
         Ukraine


POLTAVHIMMASHBUD: Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Economic Court of Poltava Region commenced bankruptcy
supervision procedure on CJSC Poltavhimmashbud (code EDRPOU
01270606).  The case is docketed under Case No. 18/223.

The Temporary Insolvency Manager is:

         Yevgen Vasin
         Vavilov Avenue 5/11
         Poltava Region
         Ukraine

The Economic Court of Poltava Region is located at:

         Zigina Str. 1
         36000 Poltava Region
         Ukraine

The Debtor can be reached at:

         CJSC Poltavhimmashbud
         Perspektivnij Lane 8
         Poltava Region
         Ukraine


RODINA: Court Names L. Demets as Insolvency Manager
---------------------------------------------------
The Economic Court of Vinnitsya Region appointed Mr. L. Demets
as Liquidator/Insolvency Manager for Agricultural LLC Rodina
(code EDRPOU 30804449).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
10/66-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Rodina
         Migalivtsi
         Barskij District
         Vinnitsya Region
         Ukraine


SANGO: Court Names Kozyatin' State Agency as Liquidator
-------------------------------------------------------
The Economic Court of Vinnitsya Region appointed Kozyatin' State
Tax Inspection as Liquidator for LLC Sango (code EDRPOU
30808291).  The Liquidator can be reached at:

         Kozyatin' State Tax Inspection
         Pilip Orlik Str. 19
         Kozyatin District
         22100 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
5/120-b.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Sango
         Pilip Orlik Str. 16
         Kozyatin
         22100 Vinnitsya Region
         Ukraine


TOP STYLE: Donetsk Court Names S. Lunkova as Insolvency Manager
---------------------------------------------------------------
The Economic Court of Donetsk Region appointed Ms. S. Lunkova as
Liquidator/Insolvency Manager for LLC Top Style (code EDRPOU
31018437).  She can be reached at:

         S. Lunkova
         Office 324-1
         Artema Str. 74
         83000 Donetsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 5.  The case is docketed
under Case No. 42/104 B.

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         LLC Top Style
         Universitetska Str. 48
         83050 Donetsk Region
         Ukraine


TORGBUDMATERIALI: Court Names Kozyatin' Tax Agency as Liquidator
----------------------------------------------------------------
The Economic Court of Vinnitsya Region appointed the Kozyatin'
State Tax Inspection as Liquidator for LLC Torgbudmateriali
(code EDRPOU 05468914).  The Liquidator can be reached at:

         Kozyatin' State Tax Inspection
         Pilip Orlik Str. 19
         Kozyatin District
         22100 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
5/113-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Torgbudmateriali
         Chervonoarmijska Str. 60
         Kozyatin
         22100 Vinnitsya Region
         Ukraine


UGOLINVEST: Donetsk Court Commences Bankruptcy Supervision
----------------------------------------------------------
The Economic Court of Donetsk Region commenced bankruptcy
supervision procedure on JSCCT Ugolinvest (code EDRPOU 2178199)
on May 15.  The case is docketed under Case No. 5/84B.

The Temporary Insolvency Manager is:

         Ivan Popov
         Makiyivka
         Tayozhna Str. 1
         86123 Donetsk Region
         Ukraine

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         JSCCT Ugolinvest
         Shubert Str. 106
         Snizhne
         86500 Donetsk Region
         Ukraine


VINNITSYA' FOOD: Court Names V. Bushanskij as Liquidator
--------------------------------------------------------
The Economic Court of Vinnitsya Region appointed Mr. V.
Bushanskij as Liquidator/Insolvency Manager for Ukrainian-
American Joint Enterprise Vinnitsya' Food Group (code EDRPOU
25500011).  He can be reached at:

         V. Bushanskij
         Stahurskij Str. 20/26
         21000 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 15.  The case is docketed
under Case No. 5/214-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         Ukrainian-American Joint Enterprise
         Vinnitsya' Food Group
         Sverdlov Str. 155
         Vinnitsya Region
         Ukraine


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


BAKERS OF MAYFAIR: Names David Kaye as Administrator
----------------------------------------------------
David N. Kaye of Crawfords was appointed administrator of Bakers
of Mayfair Limited (Company Number 05553072) on July 3.

The administrator can be reached at:

         Crawfords
         Stanton House
         41 Blackfriars Road
         Salford
         Manchester
         Greater Manchester M3 7DB
         United Kingdom
         Tel: 0161 828 1000
         Fax: 0161 832 1829

Bakers of Mayfair Limited can be reached at:

         White Horse Inn Cottage
         Lenham Heath Road
         Sandway
         Maidstone
         Kent ME17 2HY
         United Kingdom


BLACK JACKET: Brings In Joint Liquidators from Ashcrofts
--------------------------------------------------------
Harjinder Johal and George Michael of Ashcrofts were appointed
Joint Liquidators of Black Jacket Co. Limited on May 12.

The company can be reached at:

         Black Jacket Co. Limited
         85 High Street
    Gillingham
    Kent ME7 1BL
    United Kingdom
    Tel: 01634 855 002
    Fax: 01634 855 002


BRITISH AIRWAYS: Earns GBP154 Million in First Quarter 2006
-----------------------------------------------------------
British Airways reported GBP154 million after-tax profit for the
first quarter ended June 30, 2006, compared with a GBP90 million
net profit for the same period in 2005.

The operating profit for the first quarter was GBP211 million,
compared with GBP176 million profit for the same period in 2005,
delivering an operating margin of 9.1 percent.

Operating cashflow was GBP475 million, an increase of GBP126
million from last year.

"These are good results driven by strong revenue as a result of
record seat factors and better cabin mix," Willie Walsh, British
Airways' chief executive, said.  "Total costs are up with fuel
up 44 percent at GBP512 million.  Employee costs are up 7
percent and reflects increased pension costs as a result of the
GBP2.1 billion accounting deficit in our New Airways Pension
Scheme.

"Our customers continue to see the benefit of investments in
products and services with the introduction of our upgraded in-
flight entertainment system.  Our new Club World bed will be
launched soon.  We have announced new services to Calgary and an
eighth daily service from London Heathrow to New York JFK.  We
are also increasing flights from London Heathrow to Sao Paulo in
Brazil from seven to 10 each week from December 3, 2006.

"On shorthaul our new low fares have been a big success.  While
competition in this market is brutal I am delighted to see we
are winning customers with record seat factors.  We're now even
more competitive on price whilst keeping ahead of the game by
offering full service flights, more frequently to more
convenient airports.

"We continue to make steady progress on changes to working
practices.  We recently agreed a deal with two further groups of
staff including dispatchers and loaders ahead of our move to
Terminal 5.  This comes on top of agreements with our aircraft
movements staff, equipment services and ground transport
services and the new single cabin crew fleet agreement at
Gatwick."

Martin Broughton, British Airways' chairman, said: 'Strong
revenue is expected to continue, supported by significant
promotional activity driving seat factors in all cabins.  For
the year to March 2007, total revenue is expected to improve by
6-7 percent up from previous guidance of 5-6 percent.  Capacity
growth in the first half of the year is expected to be about 4
percent slowing in the second half of the year to achieve a full
year increase of 2.5 - 3 percent.

"Fuel costs for the year are now expected to be GBP550 - GBP600
million up on last year.  Costs excluding fuel which were
previously forecast flat, are now expected to be slightly higher
this year as pension costs are driving employee costs up.

"We continue to focus on our move to Terminal 5 in 2008,
investing in our products for our customers and driving a
competitive cost base to make our company fit for growth.'

Revenue in the quarter, at GBP2.3 billion, was up 12.5 percent.

Traffic measured in revenue passenger kilometers was up 7.7% on
a flying program measured in available seat kilometers up 4.1
percent. This delivered seat factors up 2.7 points at a record
78.3 percent in the quarter.  Yield measured as pence per RPK
increased by 6.0 percent.

Cargo revenue was up 11.6 percent compared with last year, with
yields up 7.2 percent and increased volumes, measured in cargo
ton kilometers, up 4.1 percent.  The flying program was 3.7%
larger in available ton kilometers.

Total costs were up by 11.8 percent.  The rise was largely
driven by a 44 percent increase in the cost of fuel and a 7%
increase in employee costs due to increased pension costs,
severance and pay awards only partially offset by manpower
reductions.  Unit costs were up 7.9 percent in the same period.

At June 30, 2006, the company's balance sheet showed GBP12.4
billion in total assets, GBP10.1 million in total liabilities
and GBP2.3 million in stockholders' equity.

A full-text copy of British Airways' first quarter 2006
financial results is available at no charge at
http://ResearchArchives.com/t/s?f0e

                       About the Company

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

                        *     *     *

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


BRITISH AIRWAYS: Reports July 2006 Traffic & Capacity Results
-------------------------------------------------------------
British Airways Plc disclosed its traffic and capacity
statistics for July 2006.

In July 2006, passenger capacity, measured in Available Seat
Kilometers, was 2.8 percent above July 2005.  Traffic, measured
in Revenue Passenger Kilometers, was higher by 4.4 percent.  
This resulted in a passenger load factor up 1.2 points versus
last year, to 82.3 percent.  The increase in traffic comprised a
11.0 percent increase in premium traffic and a 3.3 percent
increase in non-premium traffic.  Cargo, measured in Cargo Ton
Kilometers, fell by 0.9 percent.  Overall load factor increased
by 1.2 points to 73.7 percent.

                        Market Conditions

Strong revenue is expected to continue, supported by significant
promotional activity driving seat factors in all cabins.   For
the year to March 2007, total revenue is expected to improve by
six to seven percent, up from previous guidance of five to six
percent due to the impact of record seat factors and better
cabin mix.  Capacity growth in the first half of the year is
expected to be about four percent slowing in the second half of
the year to achieve a full year increase of 2.5 - three percent.

                             Costs

Fuel costs for the year are now expected to be GBP550 - GBP600
million up on last year.  Costs excluding fuel which were
previously forecast flat, are now expected to be slightly higher
this year as pension costs are driving employee costs up.

                     Strategic Developments

British Airways reached agreement with its trade unions to merge
its Gatwick based longhaul and shorthaul cabin crew into a
single fleet from October this year.  The deal provides for
significant gains in productivity and staff flexibility and
reductions in employee costs estimated at GBP13.2 million a
year.

At BA's annual general meeting, BA's chairman Martin Broughton
said the trustees of the New Airways Pension Scheme (NAPS) had
written to the company to say they accept that on-going
contributions much in excess of current levels may not be
sustainable and that a reduction in future benefits is likely to
be required.  NAPS has an accounting deficit of GBP2.1 billion.

As part of an initial public offering by WNS (HOLDINGS) Ltd on
the New York Stock Exchange, British Airways sold its 14.6
percent shareholding in the India based business services
company, for net US$ 96 million (approximately GBP52
million).  The airline will report a gain on disposal of
approximately GBP48 million in second quarter and the proceeds
will be used to repay existing gross debt, which at March 31,
2006 amounted to GBP4.1 billion.

A new five times a week service is to be launched from Heathrow
to Calgary in Canada on Dec. 1.  British Airways will also
increase flights from Heathrow to JFK from seven to eight per
day and increase flights from Heathrow to Sao Paulo in Brazil
from seven to 10 each week.

British Airways announced an increase in the number of seats
available at its record low one-way fare of GBP29 by 500 percent
from July 27.  Almost two million additional seats are now
annually available from Gatwick to Europe at low fares. More
than 900,000 are priced from GBP29 one-way (including taxes and
charges) and a further 700,000 from GBP34.

The airline held a summer sale with up to GBP585 off popular
holiday destinations.  Flights from London to Bermuda and
Antigua began at just GBP299, New York from GBP249 return and
Mumbai from GBP299.

The airline extended its on-line check-in facility to families
and groups of six or less to further minimize waiting time at
the airport.

                       About the Company

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

                        *     *     *

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


BUSINESS INFORMATION: Opts to Voluntary Liquidation
---------------------------------------------------
Business Information Technology Services Limited opted on May 10
to voluntarily liquidate the company's assets.

D. Hardy of Poppleton & Appleby was appointed Liquidator.

The company can be reached at:

         Business Information Technology Services Limited
         75 Longford Road
    Longford
    Coventry CV6 6DY
    United Kingdom
    Tel: 024 7683 5600
         Web: http://www.b-i-t-s.co.uk/
         http://www.portalalix.co.uk/


C. J. PEARCE: Appoints Joint Administrators from SFP
----------------------------------------------------
Simon Franklin Plant and Daniel Plant of SFP were appointed
joint administrators of C.J. Pearce & Company Limited (Company
Number 02969832) on July 5.

The administrators can be reached at:

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

Headquartered in Telford, United Kingdom, C.J. Pearce & Company
Limited is engaged in general construction and civil
engineering.


CASTLE LIMITED: Names David Hill as Administrator
-------------------------------------------------
David Hill of Begbies Traynor was appointed administrator of
Castle (Monmouth) Limited (Company Number 663846) on July 4.

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 Monmouth, United Kingdom, Castle (Monmouth)
Limited manufactures cardboard packaging.


CHILTON INTERNATIONAL: Names Michael R. Ellingworth Liquidator
--------------------------------------------------------------
Michael R. Ellingworth of A & E Business Solutions was named
Liquidator of Chilton International Transport Limited on May 11.

The company can be reached at:

Chilton International Transport Limited

         Woodcock Heath
         Kingstone
         Uttoxeter
         Staffordshire ST148QS
         United Kingdom
         Tel: 01889 500 236
         Fax: 01889 500 236


COTT CORPORATION: Forms Two Business Units Under New Structure
--------------------------------------------------------------
Cott Corp. reported changes to its senior management
structure, roles and responsibilities, as well as the addition
of two new executives to its senior management team.

Under its new structure, two business units, North America and
International, are created to focus on customer management,
channel development, sales, and marketing.

Leading the North American business unit as president will be
John Dennehy, currently Senior Vice President of Sales and
Marketing for North America.  Mr. Dennehy has more than 25 years
of experience in the North American beverage industry and was
one of the Company's first U.S. employees when he joined the
Company in 1991 and played a key role in the Company's recent
North American realignment.

Wynn Willard was hired as president for the International
business unit.  Mr. Willard has extensive senior leadership
experience with major international consumer packaged goods
companies including Cadbury Schweppes, Nabisco and Hershey
Foods.  He has been president of Planters Company, chief
executive officer of Nabisco Ltd. and most recently, chief
executive officer of New World Pasta Company.

Clyde Preslar remains as chief financial officer.  Mr. Preslar
joined the Company in August of last year after spending nine
years as chief financial officer of Lance Inc., a U.S.
manufacturer of branded and retailer brand snack foods.

As a result of the changes, three senior executives will be
leaving the Company.  The executives are, Mark Benadiba,
executive vice president of North American Operations; Colin
Walker, senior vice president of Corporate Resources; and Andrew
Murfin, Managing Director of the U.K. and Europe.

"These three men are highly respected professionals and they
should be commended for their significant contributions to
Cott," Brent Willis, Cott's president and chief executive
officer, said.  "We want to thank them for their commitment and
dedication to the Company."

The Company further disclosed that the senior management changes
are effective Aug. 1, 2006.

Headquartered in Toronto, Ontario, Canada, Cott Corporation
(NYSE:COT; TSX:BCB) -- http://www.cott.com/-- is a non-
alcoholic beverage company and a retailer brand beverage
supplier.  The Company commercializes its business in over 60
countries worldwide, with its principal markets being the United
States, Canada, the United Kingdom and Mexico.  Cott markets or
supplies over 200 retailer and licensed brands, and Company-
owned brands including Cott, Royal Crown, Vintage, Vess and So
Clear.  Its products include carbonated soft drinks, sparkling
and flavoured mineral waters, energy drinks, juices, juice
drinks and smoothies, ready-to-drink teas, and other non-
carbonated beverages.

                         *     *     *

As reported in the Troubled Company Reporter on Feb. 3,
Moody's Investors Service downgraded Cott Beverages, Inc.'s
Senior Subordinated Regular Bond/Debenture rating to B1 from Ba3
and Cott Corporation's Corporate Family Rating, to Ba3 from Ba2.  
The ratings outlook is stable, Moody's said.  

As reported in the Troubled Company Reporter on Jan. 31, 2006,
Standard & Poor's Ratings Services lowered its ratings on Cott
Corp. by one notch, including its corporate credit rating, to
'BB-' from 'BB'.  S&P said the outlook is negative.


DIGITAL FIRST: Taps Chantrey Vellacott to Administer Assets
-----------------------------------------------------------
John Charles Heath and David John Oprey of Chantrey Vellacott
DFK were appointed joint administrators of Digital First Limited
(Company Number 03494777) on July 5.

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.  

Headquartered in Buckinghamshire, United Kingdom, Digital First
Limited -- http://www.digitalfirst.co.uk/-- retails camera.


EASTMAN KODAK: 2006 Second Quarter Loss Widens to US$282 Million
----------------------------------------------------------------
Eastman Kodak Company reported second-quarter financial results
essentially in line with the company's expectations and the
achievement of digital profitability two quarters ahead of last
year's pace.

On the basis of generally accepted accounting principles in the
U.S., Kodak expects net cash provided by operating activities
this year of US$800 million to US$1 billion, which corresponds
with investable cash flow of US$400 million to US$600 million.  
In connection with its digital transformation, the company
continues to incur significant restructuring charges, as
expected.  Accordingly, the company expects a GAAP loss from
continuing operations before interest, other income, net, and
income taxes for the full year of US$500 million to US$850
million.  This corresponds to digital earnings from operations
this year in a range of US$350 million to US$450 million.  
Consistent with its previously reported emphasis on digital
margin expansion, the company revised its 2006 digital revenue
growth forecast from a range of 16% to 22% to 10%, reflecting
the company's focus on pursuing profitable sales.  Total 2006
revenue is expected to be down 3%.

The company reported a second-quarter net loss of US$282
million, largely stemming from restructuring charges (US$214
million after taxes) and rising silver costs.  The loss is
consistent with the company's plan, announced in 2004, to create
a digital business model by restructuring its traditional
businesses and the associated manufacturing.  The company's
second-quarter 2006 GAAP pre-tax earnings were essentially
unchanged from the previous year.

"Our second-quarter results demonstrate continuing progress in
the execution of our digital business strategy and the
implementation of our digital business model," said Antonio M.
Perez, Chairman and Chief Executive Officer, Eastman Kodak
Company.  "We are coming into the final stages of our digital
transformation.  By the end of next year the majority of the
restructuring costs will be behind us and Kodak will be
positioned for sustained success in digital markets."

For the second quarter of 2006:

   * Sales totaled US$3.360 billion, a decrease of 9% from
     US$3.686 billion in the second quarter of 2005.  The
     decline in revenue was primarily in the Film and
     Photofinishing Systems Group and the Consumer Digital
     Imaging Group.  

     The Film and Photofinishing Systems Group decline is in       
     line with company expectations, and the decline in the
     Consumer Digital Imaging Group results from the changing
     market dynamics, as well as the company's stated goal to
     emphasize margin expansion over revenue growth.  

     Digital revenue totaled US$1.829 billion, a six-percent
     increase from US$1.720 billion.  Traditional revenue
     totaled US$1.522 billion, a 22% decline from US$1.950
     billion.  New Technologies contributed an additional US$9
     million in the second quarter, compared with US$16 million
     in the year-ago quarter.

   * The company's loss from continuing operations in the
     quarter, before interest, other income, net, and income
     taxes, was US$167 million, compared with a loss of US$137
     million in the year-ago quarter, largely as a result of
     increased depreciation expense because of the change in
     useful life assumptions implemented in the third quarter of
     2005.

   * The GAAP net loss was US$282 million, compared with a GAAP
     net loss of US$155 million, in the year-ago period.

   * Digital earnings were US$4 million, compared with a
     negative US$25 million in the year-ago quarter, primarily
     because of a year-over-year improvement in the company's
     Graphic Communications Group.

   * For the quarter, net cash provided by operating activities
     on a GAAP basis was US$80 million, compared with a negative
     US$207 million in the year-ago quarter.  Investable cash
     flow for the quarter was US$15 million, compared with
     negative US$297 million in the year-ago quarter.

   * Kodak held US$1.055 billion in cash on its balance sheet as
     of June 30, compared with US$1.077 billion on March 31,
     2006, and US$1.665 billion on Dec. 31, 2005.  This is
     consistent with the company's stated desire to maintain
     US$1 billion of cash on hand.

   * Debt decreased US$34 million from the first-quarter level,
     to US$3.531 billion as of June 30, 2006, and was down US$52
     million from the Dec. 31, 2005 level of US$3.583 billion.

   * Gross Profit was 24.1%, down from 28.2%, primarily because
     of the negative impact of rising silver prices and higher
     depreciation costs from changes in the useful lives of
     certain assets implemented in the third quarter of 2005.

                   20,500 Positions Eliminated

Kodak continues to implement its restructuring program to
support the company's goal of building a business model to
achieve sustained success in digital markets.  This program was
first announced in January 2004 and updated in July 2005, and
included the elimination of an estimated 25,000 positions and
charges totaling US$3 billion.

During the second quarter of 2006, the company eliminated
1,630 positions, bringing the program's total to-date to more
than 20,500 positions relative to the estimated 25,000.

Based on the restructuring actions completed to date, and an
understanding of the estimated remaining actions to conclude the
restructuring, the company expects that employment reductions
and total charges will now be within the range of 25,000 to
27,000 positions and US$3 billion to US$3.4 billion,
respectively.  The company continues to expect that these
actions will be essentially complete by the end of 2007.

           Evolution of Digital Camera Operating Model

The company reached an agreement with Flextronics International
Ltd. in order to streamline its digital camera operations.  
Under this agreement, Kodak will continue to manage high-level
system design and advanced research and development for its
digital still cameras, and will retain all of its intellectual
property.  Flextronics will manufacture and distribute Kodak
consumer digital cameras on a global basis and will handle
certain design and development functions.  

Flextronics will also manage the operations and logistics
services for Kodak's digital still cameras.  This is consistent
with Kodak's effort to drive further improvements in the
operating model of its Consumer Digital Imaging Group.  Also
under the agreement, approximately 550 Kodak personnel are
expected to be transferred to Flextronics facilities.

"This evolution in our digital capture operating model is
consistent with our strategy and will enable us to compete in
this business with greater flexibility, cost efficiency and
predictability," said Mr. Perez.  "It will support our margin
expansion efforts and enable us to better serve our customers
and consumers by delivering Kodak's innovative digital products
through the world class operations of Flextronics."

Kodak plans to provide a detailed update on its transformation
during its Annual Strategy Review meeting scheduled for Nov. 15,
2006 in New York City.

                       About Eastman Kodak

Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- is a worldwide vendor of imaging  
products and services.  The company is committed to a digitally
oriented growth strategy focused on four businesses: Digital &
Film Imaging Systems - providing consumers, professionals, and
cinematographers with digital and traditional products and
services; Health -- supplying the medical and dental professions
with traditional and digital imaging and information systems, IT
solutions, and services; Graphic Communications - providing
customers with a range of solutions for prepress, traditional
and digital printing, document scanning, and multi-vendor IT
services; and Display & Components - supplying original
equipment manufacturers with imaging sensors as well as
intellectual property and materials for the organic light-
emitting diode and LCD display industries.

                         *     *     *

As reported in the Troubled Company Reporter on May 25, 2006,
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.  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.

As reported in the Troubled Company Reporter on May 9, 2006,
Moody's Investors Service placed the ratings of the Eastman
Kodak Company on review for possible downgrade.  Ratings placed
on Review for Possible Downgrade included the Company's
Corporate Family Rating at B1; Senior Unsecured Rating at B2;
and Senior Secured Credit Facilities at Ba3.


EASYFLEET LIMITED: Appoints David Rubin as Joint Administrators
---------------------------------------------------------------
Paul Appleton and Asher Miller of David Rubin & Partners were
appointed joint administrators of Easyfleet Limited (Company
Number 5185003) on July 4.

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

Headquartered in Peterborough, United Kingdom, Easyfleet Limited
is engaged in car hire and chauffeur services.


GUS PLC: Asks Noteholders to Tender GBP350-Mln 5.625% Notes
-----------------------------------------------------------
GUS plc is inviting holders of its GBP350,000,000 5.625% Notes
due 2013 to offer to sell any or all of their Notes to the
Company.  The offer is at a price of 100% of their principal
amount plus accrued and unpaid interest up to, but excluding,
the settlement date, which is currently expected to be on
Sept. 7.  The invitation will expire at 12:00 noon on Sept. 5.

"We are giving the Noteholders a choice," David Tyler, Group
Finance Director, commented.  "If they are truly concerned about
a risk of default and want their money back, we will repay them
promptly: they should either approach the Trustee or respond to
our tender offer.  We have a committed bank facility which we
can use to repay the Notes, and none of our other debt would
cross-default."

As reported in TCR-Europe on Aug. 3, HSBC Holdings Plc, the
trustee for GUS Plc's bondholders, warns that GUS will default
on its GBP350 million 5.625% bonds due 2013 should shareholders
approve a plan to split the company into two, Steve Rothwell
writes for Bloomberg News.

London-based GUS intends to separate its Experian credit-
information unit from the Argos and Homebase store divisions,
Mr. Rothwell reports citing a notice from HSBC Trustee (C.I.)
Ltd.

Noteholders are advised to refer to the Invitation Memorandum
for the full terms and conditions of the invitation.  
Noteholders may obtain copies of the Invitation Memorandum from
the Tender Agent:

         Lucid Issuer Services Limited
         Tel: +44 20 7704 0880
         E-mail: gus@lucid-is.com  

The Invitation Memorandum is also available for inspection at
the UK Listing Authority's Document Viewing Facility which is
situated at:

         Financial Services Authority
         25 The North Colonnade
         Canary Wharf
         London E14 5HS
         United Kingdom

                    About the Company

Headquartered in London, England, GUS Plc --
http://www.gusplc.com/-- is a retail and business services  
group.  Its activities comprise general merchandise retailing
through Argos Retail Group and information and customer
relationship management services through Experian.

ARG is the UK's leading multi-brand, multi-channel retailer.  It
has two major businesses, Argos and Homebase.

Experian is a global leader in the market for information
solutions.  It supports clients in more than 60 countries.


HUMANWORLD LIMITED: Taps Donald Bailey to Liquidate Assets
----------------------------------------------------------
Donald Bailey of Begbies Traynor was appointed Liquidator of
Humanworld Limited at an extraordinary general meeting on
April 28.

The company can be reached at:

         Humanworld Limited
    Peel House
    Peel Road
    Skelmersdale
    Lancashire WN8 9PT
         United Kingdom
    Tel: 01695 555 300


KRONOS INT'L: Parent Posts US$13.6-Mln Net Income in 2nd Quarter
----------------------------------------------------------------
Kronos Worldwide Inc., the parent company of Kronos
International, reported a US$13.6 million net income for the
second quarter of 2006, compared with a US$32.9 million net
income in the second quarter of 2005.  

For the first six months of 2006, Kronos reported net income of
US$28.6 million, compared with net income of US$54.3 million in
the first six months of 2005.

Net sales of US$345.1 million in the second quarter of 2006 were
US$33.4 million, or 11%, higher than the second quarter of 2005.
Net sales of US$649.4 million for the first six months of 2006
were US$45.9 million, or 8%, higher than the first six months of
2005.  Net sales increased in the second quarter of 2006
primarily due to higher TiO2 sales volumes, partially offset by
lower average TiO2 selling prices, and the unfavorable effect of
fluctuations in foreign currency exchange rates, which decreased
sales by approximately US$4 million.  

TiO2 segment profit for the second quarter of 2006 was US$38.4
million compared with US$59.2 million in the second quarter of
2005, and was US$74.6 million for the first six months of 2006
compared with US$107.2 million for the first six months of 2005.  
Segment profit decreased in the second quarter of 2006, compared
to the second quarter 2005, due to the net effects of lower
average TiO2 selling prices, higher manufacturing costs,
particularly raw materials and energy costs, higher sales
volumes, and the effect of fluctuations in foreign currency
exchange rates, which negatively impacted segment profit
comparisons by approximately US$11 million.

TiO2 sales volumes in the second quarter 2006 increased 14% from
the second quarter of 2005, primarily due to higher sales
volumes in the US, Europe and export markets offsetting the
effects of lower sales volumes in Canada.  TiO2 sales volumes
for the first six months of 2006 increased 11% from the first
six months of 2005.  TiO2 production volumes were 2% and 3%
higher in the second quarter and first six months of 2006
respectively, as compared to the same periods in 2005, with
operating rates at near full capacity in all periods.  At June
30, 2006, finished goods inventories, which represented
approximately 2 months of average sales, were lower compared to
March 31, 2006.  TiO2 sales and production volumes in the first
six months of 2006 were both records for Kronos.

In April 2006, Kronos International issued an aggregate of
EUR400 million principal amount of new 6.5% Senior Secured Notes
due April 2013.  KII used the proceeds from the issuance of the
6.5% Senior Secured Notes to redeem all of its 8.875% Senior
Secured Notes in May 2006 at 104.437% of the aggregate principal
amount of EUR375 million.  

The company recognized a US$22.3 million pre-tax charge (US$14.8
million, or US$.30 per diluted share, net of income tax benefit)
in the second quarter of 2006 related to the early
extinguishment of the 8.875% Senior Secured Notes.  Other
interest income increased for the second quarter and the first
six months of 2006, due primarily to the interest earned from
the net proceeds of the new 6.5% Senior Secured Notes which were
held in escrow for approximately one month until the 8.875%
Senior Secured Notes were redeemed.

Income tax benefit in the first six months of 2006 includes an
aggregate tax benefit of US$12.6 million, or US$.26 per diluted
share (US$11.6 million, or US$.24 per diluted share, for the
second quarter of 2006) related to the withdrawal of certain
income tax assessments previously made by the Belgian and
Norwegian tax authorities, the favorable resolution of certain
income tax issues related to our German and Belgian operations
and the enactment of a reduction in the Canadian federal income
tax rate.

                      About the Company

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.


LANSBOROUGH LTD.: Names G. D. Sharma as Administrator
-----------------------------------------------------
G. D. Sharma of Sharma & Co. was named administrator of
Lansborough Ltd. (Company Number 3304875) on July 6.

The administrator can be reached at:

         Sharma & Co.
         50 Newhall Street
         Birmingham
         West Midlands B3 3QE
         United Kingdom
         Tel: 0121 248 5007
         Fax: 0121 248 5010
         E-mail: gagen@sharmaandco.com

Headquartered in Mereyside, United Kingdom, Lansborough Limited
retails footwear and leather goods.


LAZARD LTD: June 30 Balance Sheet Upside-Down By US$745 Million
-------------------------------------------------------------
Lazard Ltd reported its financial results for the first six
months and second quarter ended June 30, 2006.  

At June 30, 2006, the Company's balance sheet showed US$2.1
billion in total assets and US$2.8 billion in total liabilities
resulting in US$745 million stockholders' deficit.

For the second quarter of 2006, pro forma net income, assuming
full exchange of outstanding exchangeable interests, increased
97% to US$62.9 million from US$32 million for the second quarter
of 2005.  Financial Advisory revenue increased 24% compared to
the second quarter of 2005 and increased 18% compared to the
first quarter of 2006.  Asset Management revenue increased 19%
compared to the second quarter of 2005.  Operating revenue for
the second quarter of 2006 increased 24% to US$410.8 million
compared to US$330.1 million for the second quarter of 2005.

Operating income increased 49% to US$84.7 million for the second
quarter of 2006, including a gain of approximately US$5.3
million from the termination of our joint venture relationship
in Italy, compared to pro forma US$57 million for the second
quarter of 2005.  Net income before exchange of outstanding
exchangeable interests increased 97% to US$23.5 million for the
second quarter of 2006 compared to pro forma income from
continuing operations of US$12.0 million for the second quarter
of 2005.

Pro forma net income, assuming full exchange of outstanding
exchangeable interests, increased 82% to US$115.4 million for
the first six months of 2006 from US$63.3 million for the first
six months of 2005.  For the first six months of 2006, operating
revenue increased 28% to US$762 million compared to US$595.7
million for the first six months of 2005, resulting from growth
in both Financial Advisory and Asset Management businesses.

For the first six months of 2006 compared to the first six
months of 2005, Financial Advisory revenue increased 31% and
Asset Management revenue increased 15%.  Operating income
increased 72% to US$162.8 million for the first six months of
2006, including a gain of approximately US$5.3 million from the
termination of our joint venture relationship in Italy, compared
to pro forma US$94.5 million for the comparable 2005 period.  
Net income before exchange of outstanding exchangeable interests
increased 82% to US$43.2 million compared to pro forma income
from continuing operations of US$23.7 million for the first six
months of 2005.

"Lazard's strong results reflect our leadership position in
Financial Advisory, as we continue to advise on some of the most
complex and important transactions" said Bruce Wasserstein,
Chairman and Chief Executive Officer of Lazard Ltd.  "Our
results also show the steady progress of our Asset Management
business, as we continue to win new mandates with expanded
product offerings.  We are focused on creating value for our
shareholders. Our approach is to apply intellectual rigor and
creativity to all parts of our business."

"We are pleased to report another strong quarter and record
financial performance year-to-date," noted Steven J. Golub,
Lazard's Vice Chairman.  "Lazard's success is a result of
continued demand for world-class, independent advice, our
retention and attraction of top talent, momentum in our Asset
Management business and our continued focus on cost containment.   
We believe we continue to be positioned for long-term growth."

The Company's quarterly revenue and profits can fluctuate
materially depending on the number, size and timing of completed
transactions on which it advised, as well as seasonality and
other factors.  Accordingly, the revenue and profits in any
particular quarter may not be indicative of future results.  As
such, Lazard management believes that annual results are the
most meaningful.

   (a) Operating revenue excludes interest expense relating to
       financing activities and revenue relating to the
       consolidation of LAM General Partnerships, each of which
       are included in net revenue.

   (b) Operating income is after interest expense and before
       income taxes and minority interests.

Lazard Ltd. -- http://www.lazard.com/-- one of the world's  
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and South America.  With origins dating
back to 1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.


LEWIS PLASTICS: Creditors Confirm Liquidator's Appointment
----------------------------------------------------------
Creditors of Lewis Plastics (Fabrications) Limited confirmed the
appointment of Stephen Robert as Liquidator on May 10.

The company can be reached at:

         Lewis Plastics (Fabrications) Limited
         Grosvenor House
    North Lane
    Aldershot
    Hampshire GU124QG
    United Kingdom
    Tel: 01252 350 011
    Fax: 01252 344 144


NOVELIS INC: Obtains US$2.85-Bln Financing Pledge from Citigroup
----------------------------------------------------------------
Novelis Inc. obtained commitments for backstop financing
facilities totaling US$2.855 billion from Citigroup Global
Markets Inc.

As reported in the Troubled Company Reporter on July 27, Novelis
received a notice of default from the trustee for its 7-1/4%
Senior Notes due 2015.  This action resulted from the financial
restatement and review by Novelis and the subsequent delay in
filing its financial statements, which created a breach of its
bond covenants.  The notice of default triggers a 60-day period
within which the Company can cure the default by filing the
delayed reports.  Novelis stated that it is working towards this
goal; however, there can be no assurance of achievement and,
therefore, the Company has taken the step of securing
commitments for the backstop agreement from Citigroup.

As previously disclosed, the notice of default also accelerates
the deadlines for filing the delayed reports under the Company's
existing Credit Agreement waiver to 30 days from the date of
receipt of the notice.  Novelis will request a waiver from its
Credit Agreement lenders to extend the deadline for filing these
financial reports.

In the event that Novelis is not able to file its delayed
reports by the deadlines defined in the notice of default and in
its Credit Agreement waiver, the backstop financing facilities
would provide the funding necessary to retire the Senior Notes
and, if needed, replace the Company's existing term loan and
revolving credit facility.  The commitments by Citigroup under
the commitment letter are subject to the satisfaction of
customary conditions precedent for financings of this type.

                       About Novelis

Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional  
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis Europe provides its markets with value-added sheet and
light gauge products through a network of 14 plants.

The construction and industrial market represents Novelis
Europe's largest end-use application.  The company supplies
plain and painted sheet for building products such as roofing,
siding, panel walls and shutters.

In addition, Novelis Europe is a global leader in the production
of lithographic sheet, a specialized product requiring technical
production.  It is a leading supplier as well of foil and
beverage can sheet in Europe, and is one of the major suppliers
for ultra thin gauge foil for aseptic liquid packaging for milk
and juices.  And finally, Novelis is a leading supplier to the
European transportation end-use market.

Furthermore, Novelis is a leading recycler of aluminum with
Europe's largest dedicated beverage can recycling plant at
Latchford, U.K.

                        *    *    *

As reported in the Troubled Company Reporter on May 18, 2006,
Moody's Investors Service placed the ratings of Novelis Inc.,
and its subsidiary, Novelis Corp., under review for possible
downgrade.  In a related rating action, Moody's changed Novelis
Inc's speculative grade liquidity rating to SGL-3 from SGL-2.
Novelis Corporation's Ba2 senior secured bank credit facility
rating was placed on review for possible downgrade.

Novelis Inc.'s Ba3 corporate family rating; Ba2 senior secured
bank credit facility and B1 senior unsecured regular
bond/debenture were placed on review for possible downgrade.


OAKTRAIL LIMITED: Creditors Confirm Voluntary Liquidation
---------------------------------------------------------
Creditors of Oaktrail Limited confirmed on May 5 resolutions for
voluntary liquidation together with the appointment of Allan
Cooper and Andrew Philip Wood of The P&A Partnership as Joint
Liquidators.

The company can be reached at:

         Oaktrail Limited
         Berkeley House
    Berkeley Road
    Leeds LS8 3RU
    United Kingdom
    Tel: 0113 248 0400
    Fax: 0113 235 0124


P & S ORGAN: Taps Marriotts LLP to Administer Assets
----------------------------------------------------
Kevin Thomas Brown and Anthony Harry Hyams of Marriotts LLP were
appointed joint administrators of P & S Organ Supply Company
Limited (Company Number 01988477) on July 4.

The administrators can be contacted at:

         Marriotts LLP
         Allan House
         10 John Princes St
         London W1G 0JW
         United Kingdom
         Tel: 020 7495 2348  

Headquartered in Suffolk, United Kingdom, P & S Organ Supply
Company Limited supplies pipe organs.


R & N Motors: Hires Liquidator from Arrans
------------------------------------------
Robert Gibbons of Arrans was appointed Liquidator of R & N
Motors Limited at an extraordinary general meeting on May 4.

The company can be reached at:
           
         R & N Motors Limited
         Unit 2
    Eden Street Industrial Estate
    Eden Street
    Coventry
    West Midlands CV6 5HE
    Tel: 024 7666 2457   


REDPC LIMITED: Joint Liquidators Take Over Operations
-----------------------------------------------------
Stewart Trevor Bennett and James Preston Bradney were appointed
Joint Liquidators of RedPc Limited on May 5 by resolutions of
members and creditors.

The company can be reached at:

         RedPc Limited
         286A Chase Road
         London N14 6HF
    United Kingdom
    Tel: 0871 424 2600


REFCO INC: US Trustee Restructures Official Creditors' Committee
----------------------------------------------------------------
Diana G. Adams, the acting United States Trustee for Region 2,
reconstitutes the Official Committee of Unsecured Creditors as
of July 21, 2006.

The Creditors Committee is now composed of:

   1. Wells Fargo National Association, as Indenture Trustee
      6th Street, Marquette Ave., MAC N9303-120
      Minneapolis, Minnesota 55479
      Attention: Julie J. Becker, Vice President
      Phone: (612) 316-4772

   2. D.E. Shaw & Co., LP
      120 West 45th Street
      New York 10035
      Attention: Marc Sole
      Phone: (212) 478-0179

   3. Esopus Creek Advisors
      500 Fifth Avenue, Suite 2620
      New York 10110
      Attention: Joseph Criscione
      Phone: (212) 302-7214

                        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 United States and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore.  In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.  
Refco is one of the largest global clearing firms for
derivatives.

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  


REFCO INC: Chapter 11 Trustee Hires Capstone as Advisor
-------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York authorizes Marc S. Kirschner, the Chapter 11 trustee
overseeing Refco Capital Markets, Ltd.'s estate, to employ
Capstone Advisory Group, LLC, as his financial advisor with
respect to inter-creditor and inter-Debtor issues, including
intercompany claims, where the RCM Trustee determines that RCM's
interests may conflict with those of the other Chapter 11
Debtors.

Capstone's scope of services will be limited to performing
confirmatory due diligence and analysis of compilations of
information produced by Goldin Associates LLC, and APS Service
LLC, with respect to claims arising out of transactions between:

   (i) RCM and one or more of the Other Chapter 11 Debtors and
       non-debtor affiliates or subsidiaries of Refco, Inc.; or

  (ii) two or more of the Other Chapter 11 Debtors and Refco's
       non-debtor affiliates.

Capstone will not provide any services to the RCM Trustee unless
and until the analysis of the Intercompany Claims has progressed
to the point where it can be furnished to Capstone by Goldin or
APS on the RCM Trustee's instruction.

At that time, however, Capstone will be permitted to perform its
confirmatory due diligence and advise the RCM Trustee with
respect to reviewing, analyzing, and inquiring of Goldin or APS
about their work product and back up materials and processes.

Capstone may be compensated in accordance with the Engagement
Letter, subject to applicable requirements for payment of fees
and disbursements under the Bankruptcy Code, the Bankruptcy
Rules, guidelines promulgated by the United States Trustee, the
rules and other Court orders.

As reported in the Troubled Company Reporter on July 7, 2006,
Mr. Kirschner told the Court that there are significant
intercreditor and other issues, including intercompany claims,
which are unique to RCM and with respect to which RCM's
interests are, or may be, in direct conflict with the interests
of the other Chapter 11 Debtors' estates and stakeholders.

Capstone will:

   a.  assist the Trustee with analysis of RCM's books and
       records relating to intercompany transactions,
       intercompany accounting and related accounts of
       RCM;

   b.  advise the Trustee regarding any proposed transactions
       affecting the RCM estate or the resolution of the RCM
       case;

   c.  advise the Trustee regarding negotiations with
       stakeholders;

   d.  assist the Trustee and his counsel in negotiating and
       effecting a comprehensive resolution of the RCM
       bankruptcy;

   e.  perform other necessary financial advisory services for
       the Trustee in connection with the Chapter 11 case; and

   f.  provide valuation work and expert testimony as
       determined by the Trustee to be necessary.

Capstone will be paid based on the actual hours worked charged
at its standard hourly rates and reimbursed for its out-of-
pocket expenses.  The firm's current rates are:

     Position              Hourly Rate
     --------              -----------
     Executive Director    US$530 - US$575
     Staff                 US$250 - US$450
     Support Staff          US$75 - US$175

Capstone professionals who will have primary responsibility for
representing the Trustee are:

     Professional          Position at Capstone
     ------------          --------------------
     David Galfus          Member and Executive Director
     Robert Manzo          Executive Director
     Jack Surdoval         Managing Director

Other Capstone professionals may assist in the representation as
needed.

Mr. Galfus attests that Capstone:

     (i) is not a creditor, an equity security holder or an
         insider of RCM, or any other Chapter 11 Debtor;

    (ii) is not and was not within two years before the
         Petition Date, a director, officer or employee of RCM
         or any other Chapter 11 Debtor; and

  (iii) does not hold or represent any interest that is
        materially adverse to the interest of the RCM
        estate or of any class of creditors or equity security
        holders.

Capstone's professionals have played significant roles in many
of the largest and most complex cases under the Bankruptcy Code,
including the chapter 11 cases of Adelphia Communications
Corporation, Ames Department Stores, Inc., Enron Corp., Federal
Mogul, Inc., Mirant Energy, Inc., Owens Corning, Inc., Vencor,
Inc., and W.R. Grace.

                       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 INC: Ch. 7 Trustee Can Reimburse US$749,579 to Refco Group
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of new York
authorizes Albert Togut, the Chapter 7 Trustee appointed to
oversee the liquidation of Refco, LLC's estate, to reimburse
US$747,579 to Refco Group Ltd., LLC, for payments made to
holders of mechanic's lien claims.

As reported in the Troubled Company Reporter on July 7, 2006,
Mr. Togut, West Loop Associates LLC and the Contractors, Alps
Construction, Inc., KCE Ltd. and Griswold, Heckel & Kelly
Associates, Inc., reached a comprehensive settlement to resolve
West Loop's request, the Mechanic's Liens and the Claims.

In a Court-approved stipulation each of the Contractors agreed
to:

   (i) reduce by 5% the outstanding principal amount of each of
       its Claim  pertaining to the Properties;

  (ii) waive all attorney's fees and accrual of any interest to
       which each Contractor may be entitled;

(iii) take the necessary steps to discharge and release the
       Mechanic's Liens so that the threatened default against
       West Loop may be averted;

  (iv) release Refco LLC from any further claims relating to the
       Contracts, the Mechanic's Liens, and their Claims;

   (v) withdraw their Claims against Refco LLC; and

  (vi) file no additional proofs of claim against Refco LLC.

Refco Group will pay the Contractors US$747,579 in the aggregate
in full satisfaction of the Mechanic's Liens, the Claims, and
any other amounts due in connection with the Contracts.

                   West Loop's Motion to Compel

West Loop had asked the Court to compel Refco Group to comply
with its postpetition lease obligations.

Refco Group leases seven floors of an 18-story office building
owned by West Loop in the central business district of Chicago,
Illinois.  Refco, LLC, occupied some or all of the leased
premises.

Refco Group continues to occupy the Premises pursuant to a March
2006 Stipulated Order among Debtors, West Loop and Man
Financial, Inc.  The Stipulated Order contemplates rejection of
the Lease effective August 15, 2006.

Sidney P. Levinson, Esq., at Hennigan, Bennett & Dorman LLP, in
Los Angeles, California, contends that until the effective
rejection date, RGL is required "to timely perform all
obligations under the Lease to the extent required by Section
365(d)(3) of the Bankruptcy Code.  Among those obligations, Mr.
Levinson said, is a Lease covenant to either discharge or bond
any mechanic's liens filed against the Property as a result of
work performed or alleged to have been performed on the
Premises.

Mr. Levinson noted that Refco LLC has entered into a series of
agreements with Alps Construction, Inc., KCE Ltd. and Griswold,
Heckel & Kelly Associates, Inc., for the construction work to be
performed at the leased Premises.  The Contractors have sought
relief from the bankruptcy stay to commence a foreclosure action
in Illinois against RGL, Refco LLC, and West Loop.

The Contractors assert that Refco LLC or RGL failed to pay for
the work, leaving a balance in excess of US$700,000, including
amounts owed for work that was not completed until nearly one
month after RGL's bankruptcy filing.  The Contractors have filed
mechanic's liens of more than US$700,000 against the Property.

Although the Bankruptcy Court denied the Contractors' request,
the ruling did not fully resolve the problems West Loop faced.

Mr. Levinson relates that by letter dated April 19, 2006, West
Loop's mortgage lender, Greenwich Capital Financial Products,
Inc., issued a notice of default to West Loop based on the
existence of the Mechanic's Liens.  The notice of default
provides that, unless the Mechanic's Liens are discharged or
bonded, West Loop will be held in default under its purchase
money loan agreement dated October 7, 2005.

Unless the Court compels RGL to discharge or bond the Mechanic's
Liens, West Loop and, by consequence, RGL's estate will suffer
substantial damages that could and should otherwise be avoided
if RGL complies with its lease obligations, Mr. Levinson told
Judge Drain.

                       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).  


RO-TECH ENGINEERING: Appoints Barry P. Knights as Liquidator
------------------------------------------------------------
Barry P Knights of Knights & Company was appointed Liquidator of
Ro-Tech Engineering & Fabrication Limited on May 9.

The company can be reached at:

         16a Klondyke Industrial Estate
    Rushenden Road
    Queenborough
    Kent ME11 5HN
    Tel: 01795 666601  


SINGAPORE SAM: Appoints Begbies Traynor as Administrators
---------------------------------------------------------
Vivian Murray Bairstow and David Paul Hudson of Begbies Traynor
(South) LLP were appointed joint administrators of Singapore Sam
PLC (Company Number 02278138) 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.  

Singapore Sam PLC can be reached at:

         Eastgate Food Hall
         Basildon
         Essex SS14 1BE
         United Kingdom
         Tel: 01268 534 711


SOUTHERN PACIFIC: S&P Places Low-B Ratings on Watch Positive
------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
positive implications its credit ratings on the subordinate
classes issued by Southern Pacific Securities F PLC, Southern
Pacific Securities G PLC, Southern Pacific Securities H PLC,
Southern Pacific Securities 04-1 PLC, and Southern Pacific
Financing 04-A PLC.  The senior class A notes in each
transaction are unaffected by these CreditWatch placements.
  
The CreditWatch placements follow initial reviews of the most
recent information received by Standard & Poor's for each
transaction.
  
This analysis showed that the likelihood of positive rating
actions has increased for all the classes listed below.  Levels
of credit enhancement available to all the classes of notes
placed on CreditWatch positive have improved and the underlying
collateral continues to perform well.
  
Standard & Poor's has recently received loan-level data for all
of these transactions and will now carry out a more detailed
loan-level and cash flow analysis to investigate whether any or
all of these notes can attain a higher rating.  The results of
this review and any changes in the ratings are expected within
three months of this media release.
  
The notes, issued between 2003 and 2004, are backed by
portfolios of first-ranking residential mortgages secured over
properties in the U.K.
  
                         Ratings List
  
    Ratings Placed On CreditWatch With Positive Implications
  
           Class                    Rating
           -----                    ------
                      To                           From
                      --                           ----
              Southern Pacific Securities F PLC
            US$262 Million, GBP94.1 Million And
        EUR132 Million Mortgage-Backed Floating-Rate
          
          Notes
  
          M1           AA-/Watch Pos               AA-
          M2           AA-/Watch Pos               AA-
  
             Southern Pacific Securities G PLC
           EUR147 Million, GBP126.5 Million and
         US$282 Million Mortgage-Backed Floating-Rate

         Notes
  
         M            AA+/Watch Pos               AA+
         B            A/Watch Pos                 A
  

             Southern Pacific Securities H PLC
          EUR220.1 Million, GBP115.35 Million and
         US$99 Million Mortgage-Backed Floating-Rate

         Notes
  
         M1           BBB+/Watch Pos              BBB+
         M2           BBB+/Watch Pos              BBB+
         B            BB+/Watch Pos               BB+
  
             Southern Pacific Securities 04-1 PLC
            GBP215.2 Million, EUR325.7 Million, and
            US$310 Million Mortgage-Backed Floating-Rate

         Notes
  
         M            BBB+/Watch Pos              BBB+
         B            BB+/Watch Pos               BB+
  
              Southern Pacific Financing 04-A PLC
       GBP350 Million Mortgage-Backed Floating-Rate Notes
  
         B            AA/Watch Pos                AA
         C            A/Watch Pos                 A
         D            BBB/Watch Pos               BBB
         E            BB/Watch Pos                BB


STRAND LIGHTING: Brings In KPMG as Joint Administrators
-------------------------------------------------------
Jane Bronwen Moriarty and Blair Carnegie Nimmo of KPMG LLP were
appointed joint administrators of Strand Lighting Limited
(Company Number 00068713) on July 11.

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

Headquartered in Fife, United Kingdom, Strand Lighting Limited
is engaged in lighting manufacturing.


TELEVISION & DOMESTIC: Begins Liquidation Procedure
---------------------------------------------------
Television & Domestic Services (Hayes) Limited is voluntarily
liquidating its assets after it has been proven that the company
could no longer continue its operations due to liabilities.

Keith Aleric Stevens of Wilkins Kennedy was appointed
Liquidator.

The company can be reached at:

         Television & Domestic Services (Hayes) Limited
    1178 Uxbridge Road
    Hayes
    Middlesex UB4 8JB
         United Kingdom
         Tel: 020 8573 5666
         Fax: 020 8561 3387


WESTWOODS LIMITED: Taps Menzies to Administer Assets
----------------------------------------------------
Andrew John Duncan and Andrew Gordon Stoneman of Menzies
Corporate Restructuring were appointed joint administrators of
Westwoods (Garden) Limited (Company Number 3185932) on July 10.

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

Westwoods (Garden) Limited can be reached at:

         6 Peerglow Centre
         Marsh Lane
         Ware
         Hertfordshire SG12 9QL
         United Kingdom
         Tel: 01920 469 400
         Fax: 01920 469 401


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

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

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


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


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


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


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


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


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


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

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


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


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


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


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


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


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


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


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


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

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

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


                           *********


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

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

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

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

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

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


                 * * * End of Transmission * * *