TCREUR_Public/060809.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, August 9, 2006, Vol. 7, No. 157   

                            Headlines


A U S T R I A

ESLARNGASSE 25: Innsbruck Court Orders Closing of Business
GO-TRANS: Claims Registration Period Ends September 4
GOLFANLAGEN BAD: Property Manager Declares Insufficient Assets
PRISMA: Creditors' Meeting Slated for August 21
STUKKATEUR: Creditors' Meeting Slated for August 10

TIMPOL: Creditors' Meeting Slated for August 18
TROCKENBAU - GRBIC: Creditors' Meeting Slated for August 22


F R A N C E

ALCATEL SA: Inks EUR30-Million Contract with Iraq's ITPC
ALLIANZ GLOBAL: Creditors to Vote on Scheme on Oct. 27
UNION DE BANQUES: Fitch Lifts Individual Rating to C


G E R M A N Y

ALERIS INT'L: Closes Purchase on Corus Group's Aluminum Business
ALERIS INT'L: Completes Tender Offer on 10-3/8% & 9% Sr. Notes
ARC AAS: Claims Registration Ends September 4
BOEDEN BERLIN: Creditors' Meeting Slated for August 24
FRESENIUS MEDICAL: Earns US$130 Million Net Income in 2nd Qtr.

GASTRODOM GMBH: Claims Registration Ends September 5
GRUNDSTUECKSGESELLSCHAFT ADLERSHOF: Meeting Slated for Aug. 24
KLEEMANN & SCHOETTNER: Claims Registration Ends August 16
MAEHLER & KAEGE: Claims Registration Ends August 21
MEDICAL PHYSIO: Claims Registration Ends August 10

MINK SNACK: Claims Registration Ends August 28
RUDOLF BERG: Claims Registration Ends September 4
SISTRA VERWALTUNGSGESELLSCHAFT: Meeting Slated for August 30
SPECTRUM BRANDS: U.S. Attorney's Office Terminates Investigation
SPECTRUM BRANDS: Third Quarter Earnings Down to US$2.5 Million


H U N G A R Y

AES CORP: Dominican Unit Submits Electricity Crisis Resolution


I R E L A N D

HIBERNIAN GENERAL: Creditors to Vote on Scheme on Oct. 27
SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss
SCOTTISH RE: Names Nathan Gemmiti as General Counsel
SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops


I T A L Y

AVIO HOLDING: Moody's Places B1 Corp. Family Rating Under Review


K A Z A K H S T A N

DIN-AI: Creditors Must File Claims by Sept. 8
EVRAZIA-XXI: Creditors Must File Claims by Sept. 8
INTERSERVIS CO: Proof of Claim Deadline Slated for Sept. 8
KAMKOR: Proof of Claim Deadline Slated for Sept. 8
KAPITAL: Claims Registration Ends Sept. 8

KULTBYTSTROI: Claims Registration Ends Sept. 8
VASAND-TK: Creditors' Claims Due Sept. 8
VOSTOK-PRODUKT: Creditors' Claims Due Sept. 8


K Y R G Y Z S T A N

TASH-KAL: Creditors Must File Claims by Sept. 18


N E T H E R L A N D S

ORTHOFIX INT'L: Acquisition Spurs S&P to Revise Rating Outlook
PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit


R U S S I A

ASHLYK: Court Starts Bankruptcy Supervision
BATURINSKOYE: Court Names A. Gorokhov as Insolvency Manager
BOGOTOLSKIY BREWERY: A. Timoshkevich to Manage Assets
EUROPEAN TRADING: Court Names A. Kirichenko to Manage Assets
GAZPROM: Wins Auction to Explore & Develop Parusovy Prospect

KARAVAY: Court Names D. Glushkov as Insolvency Manager
KRASNOSELSKAYA: Krasnodar Court Starts Bankruptcy Supervision
KURSKAYA BEARING: Kursk Court Starts Bankruptcy Supervision
LASVINSKOYE: Court Starts Bankruptcy Supervision
NOVATEK OAO: Posts Second Quarter 2006 Prelim Operating Figures

NOVOLIPETSK STEEL: Hikes Equity Stake in NTK to 100%
PENZENSKIY FACTORY: Penza Court Starts Bankruptcy Supervision
PRYAMITSINO: Kursk Court Starts Bankruptcy Supervision
PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit
SHARYPOVSKAYA KNITTING: D. Glushkov to Manage Assets

SIBERIAN TRADING: Court Names L. Sitkina as Insolvency Manager
TATNEFT OAO: Taps PwC to Audit U.S. GAAP Financial Statements
VNESHTORGBANK: Sets RUB17 Billion Lending Limit for Avtovaz
WORLD OF FABRICS: Court Names O. Zinina as Insolvency Manager
YAMAL-GAS-STROY-INVEST: Court Names V. Opryshko to Manage Assets

YUKOS OIL: Court Reduces Yugansk Claim to US$770 Million


T U R K E Y

ALTERNATIFBANK A.S.: Fitch Keeps IDR at B+ with Outlook Positive


U K R A I N E

AGROUKRTORG: Court Names O. Sherban as Insolvency Manager
BOKAR INVEST: Court Names L. Misukevich as Liquidator
CHIGIRINENERGOBUDTRANS: Mikola Zanko to Manage Assets
KRASNOPEREKOPSKIJ BREAD: Volodimir Bida to Liquidate Assets
LUBASHIVKA' AGRICULTURAL: Dmitro Abmayev to Manage Assets

ENERGO-ROST: Kyiv Court Names I. Zolochinska as Liquidator
NAFTA-TRADE: Kyiv Court Names Igor Kapelushnij as Liquidator
NAFTOTRADER: Court Names Igor Kapelushnij as Liquidator
PRESTO: Kyiv Court Names O. Sherban as Insolvency Manager
PIVDENNA: Court Names Sergij Zhukov as Insolvency Manager

RADOPS: Kyiv Court Names D. Shapovalenko as Liquidator
REAL: Cherkassy Court Names Mikola Zanko as Insolvency Manager


U N I T E D   K I N G D O M

AFOS LIMITED: Five Arrows Hires Receivers from Tenon Recovery
APPLETREE COTTAGE: Names Administrators from Begbies Traynor
APW ELECTRONICS: Royal Bank of Scotland Appoints Kroll Receivers
ATMEL CORP: Steven Laub Replaces George Perlegos as CEO
COMMUNICATIONS COMPLETE: Joint Liquidators Take Over Operations

COUNTRYMAN JOHN: Taps Andrew Rosler to Liquidate Assets
CRYSTAL TRANSPORT: Creditors' Meeting Slated for August 15
E.J. WHITE: Creditors' Meeting Slated for August 16
FARRINGDON MORTGAGES: Fitch Affirms GBP3.13-Mln Class B2a at B
FRANCESCO'S LIMITED: Names J. N. Bleazard Liquidator

FREEABLE PROJECTS: Appoints Halstead Bottomley as Liquidator
GAINSBOROUGH U.K.: Creditors' Meeting Slated for August 17
GENERAL MOTORS: Files Multibillion-Dollar Claim Against Delphi
GENERAL MOTORS: Revising Second Qtr. Financials Due to GMAC Sale
GREYFRIARS INSURANCE: Creditors to Vote on Scheme on Oct. 27

HEATH REID: Creditors Ratify Joint Liquidators' Appointment
HEDDINGTON INSURANCE: Creditors to Vote on Scheme on Oct. 27
HOTELOC PLC: Moody's Puts Low-B & Junk Debt Ratings Under Review
J ROGERSON: Claims Filing Period Ends Oct. 10
LUEGO SPORTS: Hires Joints Liquidators from Elwell Watchorn

M & R TRANSPORT: Names Joint Administrators from Menzies
MASON & SONS: Asher Miller Leads Liquidation Procedure
MITSUI SUMITOMO: Creditors to Vote on Scheme on Oct. 27
OCEAN MARINE: Creditors to Vote on Scheme on Oct. 27
OFFICE & EDUCATIONAL: Nominates Liquidator from T.H. Associates

ORANGE VISION: Creditors Confirm Liquidator's Appointment
OSLO REINSURANCE: Creditors to Vote on Scheme on Oct. 27
PHOENIX LASER: Creditors' Meeting Slated for August 16
RANGOLD RESOURCES: Pretoria Court Grants Final Liquidation Order
REFCO INC: Court Okays Stipulations on Lease-Decision Period

REFCO INC: Debtors & Trustee Tap UHY Advisors as Tax Consultants
SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss
SCOTTISH RE: Names Nathan Gemmiti as General Counsel
SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops
SEA INSURANCE: Creditors to Vote on Scheme on Oct. 27

SELECT RESOURCING: Creditors' Meeting Slated for August 15
SOVEREIGN INSURANCE: Creditors to Vote on Scheme on Oct. 27
SOVEREIGN MARINE: Creditors to Vote on Scheme on October 27
SPHERE DRAKE: Creditors to Vote on Scheme on Oct. 27
THERMOTECH AIR: Creditors' Meeting Slated for August 11

TOKIO MARINE: Creditors to Vote on Scheme on Oct. 27
WAUSAU INSURANCE: Creditors to Vote on Scheme on Oct. 27

* Moody's Reports Global Speculative-Grade Corp. Default Rate

                            *********


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A U S T R I A
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ESLARNGASSE 25: Innsbruck Court Orders Closing of Business
----------------------------------------------------------
The Land Court of Innsbruck entered an order on June 21 closing
the business of LLC Eslarngasse 25 (FN 224999g).  Court-
appointed property manager Herbert Matzunski 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. Herbert Matzunski
         Salurner Road 16
         6020 Innsbruck, Austria
         Tel: 0512/582716
         Fax: 0512/571467
         E-mail: law@hauska-matzunski.at     

Headquartered in Natters, Austria, the Debtor declared
bankruptcy on June 12 (Bankr. Case No. 9 S 17/06h).  


GO-TRANS: Claims Registration Period Ends September 4
-----------------------------------------------------
Creditors owed money by LLC Go-Trans (FN 132485g) have until
Sept. 4 to file written proofs of claims to court-appointed
property manager Konrad Ferner at:

         Dr. Konrad Ferner
         Hellbrunner Str. 11
         5020 Salzburg, Austria
         Tel: 0662-841616
         Fax: 0662-841616-16
         E-mail: office@lawconsult.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Sept. 14 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Salzburg
         Room 221
         2nd Floor
         Salzburg, Austria

Headquartered in Eugendorf, Austria the Debtor declared
bankruptcy on June 21 (Bankr. Case No. 23 S 41/06h).  Sebastian
Oberascher represents the Debtor in the bankruptcy proceedings.  


GOLFANLAGEN BAD: Property Manager Declares Insufficient Assets
--------------------------------------------------------------
Dr. Klaus Juergen Karner, the court-appointed property manager
for LLC Golfanlagen Bad Kleinkirchheim- Reichenau (FN 245294b),
declared on June 21 that the Debtor's property is insufficient
to cover creditors' claim.

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

Headquartered in Patergassen, Austria, the Debtor declared
bankruptcy on Dec. 28, 2005 (Bankr. Case No. 41 S 113/05y).  

The property manager can be reached at:

         Dr. Klaus Juergen Karner
         Widmanngasse 44
         9500 Villach, Austria
         Tel: 04242/22 880
         Fax: 04242/21351
         E-Mail: office.kjk@aon.at


PRISMA: Creditors' Meeting Slated for August 21
-----------------------------------------------
Creditors owed money by LLC Prisma (FN 186274h) are encouraged
to attend the first creditors' meeting at 11:30 a.m. on Aug. 21   
to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of Innsbruck
         Conference Hall 212
         2nd Floor
         Maximilianstrasse 4
         6020 Innsbruck, Austria

Headquartered in Innsbruck, Austria, the Debtor declared
bankruptcy on June 21 (Bankr. Case 19 S 64/06v).  Stefan Geiler
serves as the court-appointed property manager of the bankrupt
estate.  Ekkehard Erlacher represents the Debtor in the
bankruptcy proceedings.

The property manager can be reached at:

         Dr. Stefan Geiler
         Maria-Theresien-Road 17/19
         6020 Innsbruck, Austria
         Tel: 0512/582760
         Fax: 0512/5827606
         E-mail: office@ullmann-geiler.at  

The representative of the Debtor can be reached at:

         Dr. Ekkehard Erlacher
         Marketgraben 12
         6020 Innsbruck, Austria
         Tel: 0512/573626


STUKKATEUR: Creditors' Meeting Slated for August 10
---------------------------------------------------
Creditors owed money by LLC Stukkateur (FN 198308f) are
encouraged to attend the creditors' meeting at 9:45 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 84/06x).  Norbert Abel serves as the
court-appointed property manager of the bankrupt estate.  
Johanna Abel-Winkler represents Mag. Abel in the bankruptcy
proceedings.

The property manager and his representative can be reached at:

         Mag. Norbert Abel
         c/o Mag. Johanna Abel-Winkler
         Franz-Josefs-Kai 49/19
         1010 Vienna, Austria
         Tel: 533 52 72
         Fax: 533 52 72 15
         E-mail: office@abel-abel.at


TIMPOL: Creditors' Meeting Slated for August 18
-----------------------------------------------
Creditors owed money by LLC Timpol (FN 60189p) are encouraged to
attend the creditors' meeting at 9:45 a.m. on Aug. 18 to
consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 607
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 21 (Bankr. Case 28 S 40/06w).  Daniel Lampersberger
serves as the court-appointed property manager of the bankrupt
estate.  

The property manager can be reached at:

         Mag. Daniel Lampersberger
         Esteplatz 4
         1030 Vienna, Austria
         Tel: 712 33 30
         Fax: 712 33 30 30
         E-mail: engelhart@csg.at


TROCKENBAU - GRBIC: Creditors' Meeting Slated for August 22
-----------------------------------------------------------
Creditors owed money by LLC Trockenbau - Grbic (FN 134702t) are
encouraged to attend the creditors' meeting at 9:45 a.m. on
Aug. 22 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 20 (Bankr. Case 4 S 106/06z).  Georg Auteried serves as
the court-appointed property manager of the bankrupt estate.  
Rainer W. Boehm represents Dr. Auteried in the bankruptcy
proceedings.

The property manager and his representative can be reached at:

         Dr. Georg  Auteried
         c/o Mag. Rainer W. Boehm
         Altgasse 21/9
         1130 Vienna, Austria
         Tel: 876 47 98
         Fax: 876 47 98 21
         E-mail: office@auteried.at  


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F R A N C E
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ALCATEL SA: Inks EUR30-Million Contract with Iraq's ITPC
--------------------------------------------------------
Alcatel (Paris: CGEP.PA and NYSE: ALA) has been awarded a EUR30-
million contract with Iraqi Telecommunications & Post
Corporation, the sole fixed operator in Iraq, to deliver a
turnkey high capacity nation-wide microwave backbone.

With this turnkey solution, ITPC will be able to handle the
ever-growing national traffic caused by continuous increasing
demands in the capital and in the country.  The network will
allow ITPC to provide fixed, mobile and data services very
quickly according to the Telco activity development the operator
wants to promote.  Alcatel will provide a backbone covering 62
sites along three important routes in the country.

The World Bank will finance this contract.

Under the terms of this contract, Alcatel will supply its
Alcatel 9600 LSY high-capacity long haul digital microwave radio
transmission backbone along with Optical Multi-Service Node
(OMSN) systems, PDH multiplex and cross connect, complemented by
a powerful end-to-end network management, power supply equipment
and towers providing efficient control & routing throughout the
network.  The robustness, reliability and scalability of the
Alcatel 9600 LSY solution make of it the preferred choice for
fixed and mobile operators

"We are confident that our long-term partner will deliver such
unique network backbone in the agreed time frames in order to
have it fully operational by beginning 2008," says H.E. Mohamed
S. Mohamed El Hamadany, Iraq Deputy Minister of Communications.  
We have an urge to reconstruct the network in Iraq and we are
convinced that Alcatel is the right partner for that,"

"Taking advantage of our deep knowledge of the Iraqi
telecommunications services, we are convinced that this cutting-
edge network will contribute to help Iraq to accelerate the
reconstruction of their country," comments Vincenzo Nesci, Vice
president of Alcatel's activities in the Middle East. "This
award is a proof of the Alcatel's commitment to provide
communication access to the "next billion" people around the
world. It will as well reinforce our position in Iraq and in the
region in which we have been present for more than 35 years by
now."

With more than 400,000 point-to-point microwave radios installed
in more than 150 countries, Alcatel is a technology leader and
top player in the wireless transmission market.

                          About Alcatel

Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and
NYSE: ALA) -- http://www.alcatel.com/-- provides communications  
solutions to telecommunication carriers, Internet service
providers and enterprises for delivery of voice, data and video
applications to their customers or employees.  Alcatel brings
its leading position in fixed and mobile broadband networks,
applications and services, to help its partners and customers
build a user-centric broadband world.  With sales of EUR13.1
billion and 58,000 employees in 2005, Alcatel operates in more
than 130 countries.

                         *     *     *

As reported in TCR-Europe on March 28, Standard & Poor's Ratings
Services placed its 'BB' long-term corporate credit rating on
France-based telecommunications equipment maker Alcatel on
CreditWatch with negative implications.



ALLIANZ GLOBAL: Creditors to Vote on Scheme on Oct. 27
------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


UNION DE BANQUES: Fitch Lifts Individual Rating to C
----------------------------------------------------
Fitch Ratings upgraded Union de Banques Arabes et Francaises'
Issuer Default rating to A- from BBB+, its Individual rating to
C from C/D, and its Support rating to 1 from 2.  Its Short-term
rating is affirmed at F2.  The Outlook on the IDR remains
Stable.

The upgrades on the IDR, Short-term and Support ratings reflect
an increased commitment from UBAF's reference shareholder Calyon
(rated AA/F1+, over 47% stake) towards the bank as well as its
strong involvement in the bank's restructuring since 2005.

Fitch views UBAF as a strategic participation for Calyon and is
likely to remain so in the long term.  The IDR, Short-term and
Support ratings of UBAF are based on the extremely strong
potential support it can expect to receive from Calyon.

The upgrade on the Individual rating reflects the strong
restructuring of the bank since 2005.  UBAF has notably cleaned
its balance sheet, reducing its net non-performing loans to
virtually nil when the debt restructuring conditions imposed by
Iraq on the London Club creditors, with the backing of
international monetary authorities, were known.  

While these measures led to EUR105 million loan loss provisions
and a EUR87 million net loss in 2005, this had been expected for
more than a decade, and UBAF's profits since the 1990s had been
retained to write off these exposures.

To complete its restructuring, under the supervision of Calyon
the loan granted by UBAF to a defeasance entity belonging to its
shareholders and carrying part of its old problem loans was paid
off.  This improved significantly the bank's liquidity and
removed an important non-earning asset from its balance sheet.

In addition, UBAF converted part of the subordinated debts it
received from its shareholders into equity and is in the process
of repaying the balance.  Finally, UBAF has been allowed by the
French authorities to resume dividend payments from 2005.

Excluding this restructuring, UBAF's profitability has now
returned to acceptable levels, with good performance in its
trade-finance activity and cost/income ratio reduced to the
lower 70% range.  At end-2005, documentary credits totaled
US$8.7 billion and the three-year plan indicates a US$12 billion
target, which looks achievable.

Calyon is closely involved in UBAF's risk management and new
business has led to very low new non-performing loans.  UBAF's
funding is in the form of deposits and interbank loans.  It
enjoys significant credit lines from Calyon.  Its comfortable
Tier 1 ratio (21%) has not been affected by the restructuring
process.

Created in 1970, UBAF's mission is to foster commercial
exchanges between countries where the bank is present and Arab
countries.  The bank is 52.7%-owned by Arab interests,
principally public sector banks.  The remaining 47.3% is held by
Calyon.  The majority control by Arab shareholders ensures a
regular business flow to UBAF, which is an advantage compared
with its competitors.


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G E R M A N Y
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ALERIS INT'L: Closes Purchase on Corus Group's Aluminum Business
----------------------------------------------------------------
Aleris International Inc. completed the purchase of the
downstream aluminum business of Corus Group plc.  The
acquisition includes Corus's aluminum rolling and extrusion
businesses but does not include Corus's primary aluminum
smelters.

"We are extremely pleased to have completed this acquisition
which continues the transformation of our company," Steve
Demetriou, Chairman and CEO of Aleris International said.  "We
re delighted to welcome 4,600 new employees to Aleris.  The
acquisition provides Aleris with a world-class technology
platform and a portfolio of high value-added products that
significantly diversifies our current offerings.  Today, we are
a global company with significant assets in Europe and a
foothold in the high-growth China economy.  We expect to
continue Aleris's track record of growth and profitability and
are very excited about the future."

                         About Corus

Corus Group PLC -- http://www.corusgroup.com/-- produces metal  
from its major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.  Corus
turns over GBP10 billion annually and employs 47,300 in over 40
countries and sales offices and service centers worldwide.
Corus was created through the merger of British Steel plc and
Koninklijke Hoogovens N.V.

                  About Aleris International

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International Inc. -- http://www.aleris.com/-- manufactures  
rolled aluminum products and is a global leader in aluminum
recycling and the production of specification alloys.  The
company also manufactures value-added zinc products that include
zinc oxide, zinc dust and zinc metal.  The Company operates 42
production facilities in the United States, Brazil, Germany,
Mexico and Wales, and employs approximately 4,200 employees.

                           *     *     *

As reported in the Troubled Company Reporter on July 18, 2006,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on Aleris International Inc. and removed it from
CreditWatch, where it was placed with negative implications on
March 21, 2006.  The CreditWatch placement followed Aleris'
announcement that it would acquire the downstream aluminum
assets of Corus Group PLC (BB/Stable/B) for US$880 million in
cash and assumed debt.  The outlook is negative.

At the same time, Standard & Poor's assigned its 'BB-' and '2'
recovery ratings to the company's proposed US$650 million senior
secured term loan B.  The '2' recovery rating indicates the
expectation of a substantial recovery of principal in the event
of a payment default.  The ratings are based on preliminary
terms and conditions and are predicated on the completion of the
Corus transaction and related financings substantially in the
form currently anticipated.

As reported in the Troubled Company Reporter on July 12, 2006,
Moody's Investors Service confirmed Aleris International, Inc.'s
B1 corporate family rating.  In a related rating action, Moody's
assigned a Ba3 rating to the company's proposed 7 year senior
secured guaranteed term loans aggregating US$650 million, which
Aleris is issuing to partially finance its EUR691 million
acquisition of certain aluminum assets from Corus Group plc and
refinance its existing debt.

The balance of the necessary funding will be provided under a
senior unsecured guaranteed bridge loan provided by Deutsche
Bank and Citigroup.  Aleris has initiated a tender offer for its
10-3/8% senior secured notes due 2010 and its 9% senior notes
due 2014 and is seeking consent to a number of modifications to
restrictive covenants, events of default, and in the case of the
10-3/8% senior secured notes, the release of security.

Moody's confirmed the B2 rating on the 10-3/8% senior secured
notes and the B3 rating on the 9% senior unsecured notes.  The
ratings for the proposed financings assume that the tender offer
will be successful, the desired consents obtained and that the
acquisition and associated financing transactions will close as
contemplated.  At such time, Moody's ratings for Aleris's
existing debt will be withdrawn.  The ratings outlook is
negative.


ALERIS INT'L: Completes Tender Offer on 10-3/8% & 9% Sr. Notes
--------------------------------------------------------------
Aleris International Inc. completed its tender offer to purchase
for cash any and all of its outstanding 10-3/8% Senior Secured
Notes Due 2010 (CUSIP No. 449681AC9) and 9% Senior Notes Due
2014 (CUSIP No. 014477AA1).  

The tender offer expired at 5:00 p.m., New York City time, on
July 31, 2006.  Through the expiration of the tender offer,
US$200,830,000 principal amount, or 96.17%, of the outstanding
principal amount of the 10-3/8% Notes and US$124,910,000
principal amount, or 99.93%, of the outstanding principal amount
of the 9% Notes, and the consents related thereto, have been
validly tendered.  Aleris accepted for purchase all of the Notes
validly tendered prior to the expiration of the tender offer and
the related consents.

On July 14, 2006, the requisite consents were received to
eliminate or make less restrictive substantially all of the
restrictive covenants and events of default and certain related
provisions contained in the indentures governing the Notes.  As
a result of obtaining the requisite consents, Aleris executed
and delivered supplemental indentures setting forth the
amendments to the indentures governing the Notes.  The
supplemental indentures provide that the amendments to the
indentures have become operative as a result of Aleris having
accepted for purchase pursuant to the tender offer the validly
tendered Notes.

Each holder who tendered the 10-3/8% Notes and related consents
on or before the consent date will receive US$1,100.78 per
US$1,000 principal amount of the 10-3/8% Notes, which includes a
US$20 consent payment, and each holder who tendered the 10-3/8%
Notes and related consents after the consent date but on or
before the expiration date will receive US$1,080.78 per US$1,000
principal amount of the 10-3/8% Notes.

Each holder who tendered the 9% Notes and related consents on or
before the consent date will receive US$1,134.96 per US$1,000
principal amount of the 9% Notes, which includes a US$20 consent
payment, and each holder who tendered the 9% Notes and related
consents after the consent date but on or before the expiration
date will receive US$1,114.96 per US$1,000 principal amount of
the 9% Notes.  Holders of the Notes tendered and accepted for
payment pursuant to the Offer also will be paid accrued and
unpaid interest on their Notes to, but not including, the
applicable payment date.

In addition, Aleris is depositing funds with JPMorgan Chase
Bank, N.A., as trustee under the indenture for the 10-3/8% Notes
to effect a covenant defeasance, which terminated its
obligations with respect to substantially all of the remaining
restrictive covenants on the 10-3/8% Notes, and is depositing
funds with LaSalle Bank National Association, as trustee under
the indenture for the 9% Notes to effect a legal defeasance,
which resulted in Aleris being discharged from its obligations
under the 9% Notes and the indenture governing the 9% Notes.

Deutsche Bank Securities Inc. acted as dealer manager for the
tender offer and as the solicitation agent for the consent
solicitation and Mackenzie Partners, Inc. was the depositary and
information agent.

                         About Corus

Corus Group PLC -- http://www.corusgroup.com/-- produces metal  
from its major operating facilities in the U.K., the
Netherlands, Germany, France, Norway, Belgium and Canada.  Corus
turns over GBP10 billion annually and employs 47,300 in over 40
countries and sales offices and service centers worldwide.
Corus was created through the merger of British Steel plc and
Koninklijke Hoogovens N.V.

                  About Aleris International

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International Inc. -- http://www.aleris.com/-- manufactures  
rolled aluminum products and is a global leader in aluminum
recycling and the production of specification alloys.  The
company also manufactures value-added zinc products that include
zinc oxide, zinc dust and zinc metal.  The Company operates 42
production facilities in the United States, Brazil, Germany,
Mexico and Wales, and employs approximately 4,200 employees.

                           *     *     *

As reported in the Troubled Company Reporter on July 18, 2006,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on Aleris International Inc. and removed it from
CreditWatch, where it was placed with negative implications on
March 21, 2006.  The CreditWatch placement followed Aleris'
announcement that it would acquire the downstream aluminum
assets of Corus Group PLC (BB/Stable/B) for US$880 million in
cash and assumed debt.  The outlook is negative.

At the same time, Standard & Poor's assigned its 'BB-' and '2'
recovery ratings to the company's proposed US$650 million senior
secured term loan B.  The '2' recovery rating indicates the
expectation of a substantial recovery of principal in the event
of a payment default.  The ratings are based on preliminary
terms and conditions and are predicated on the completion of the
Corus transaction and related financings substantially in the
form currently anticipated.

As reported in the Troubled Company Reporter on July 12, 2006,
Moody's Investors Service confirmed Aleris International, Inc.'s
B1 corporate family rating.  In a related rating action, Moody's
assigned a Ba3 rating to the company's proposed 7 year senior
secured guaranteed term loans aggregating US$650 million, which
Aleris is issuing to partially finance its EUR691 million
acquisition of certain aluminum assets from Corus Group plc and
refinance its existing debt.

The balance of the necessary funding will be provided under a
senior unsecured guaranteed bridge loan provided by Deutsche
Bank and Citigroup.  Aleris has initiated a tender offer for its
10-3/8% senior secured notes due 2010 and its 9% senior notes
due 2014 and is seeking consent to a number of modifications to
restrictive covenants, events of default, and in the case of the
10-3/8% senior secured notes, the release of security.

Moody's confirmed the B2 rating on the 10-3/8% senior secured
notes and the B3 rating on the 9% senior unsecured notes.  The
ratings for the proposed financings assume that the tender offer
will be successful, the desired consents obtained and that the
acquisition and associated financing transactions will close as
contemplated.  At such time, Moody's ratings for Aleris's
existing debt will be withdrawn.  The ratings outlook is
negative.


ARC AAS: Claims Registration Ends September 4
---------------------------------------------
Creditors of ARC AAS Automobile GmbH have until Sept. 4 to
register their claims with court-appointed provisional
administrator Stephan Kallenberg.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 4 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 Bingen am Rhein
         Room 9
         Law Courts
         Mainzer Road 52
         55411 Bingen am Rhein, 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 Bingen am Rhein opened bankruptcy
proceedings against ARC AAS Automobile GmbH on July 13.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         ARC AAS Automobile GmbH
         Schultheiss-Kollei-Str. 5
         55411 Bingen am Rhein, Germany

         Attn: Martin Santner, Manager
         Eisel 13
         55411 Bingen am Rhein, Germany

The administrator can be contacted at:

         Stephan Kallenberg
         Neutorstr. 9
         55116 Mainz, Germany
         Tel: 06131/14676-0
         Fax: 06131/14674-20


BOEDEN BERLIN: Creditors' Meeting Slated for August 24
------------------------------------------------------
The court-appointed provisional administrator for Boeden Berlin
GmbH, Knut Rebholz, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 9:50
a.m. on Aug. 24.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:15 a.m. on Nov. 2 at the same venue.

Creditors have until Sept. 20 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Boeden Berlin GmbH on July 17.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Boeden Berlin GmbH
         Kaulsdorfer Road 249
         12555 Berlin, Germany

The administrator can be reached at:

         Knut Rebholz
         Cicerostr. 22
         10709 Berlin, Germany


FRESENIUS MEDICAL: Earns US$130 Million Net Income in 2nd Qtr.
--------------------------------------------------------------
Fresenius Medical Care AG & Co. KGaA disclosed the results for
the second quarter and the first six months 2006.

Net income for the second quarter 2006 was US$130 million, an
increase of 12%.  Excluding one-time costs and SFAS 123(R), the
net income increased on a comparable basis by 19% to $139
million.

Total revenue for the second quarter 2006 compared to the second
quarter 2005 increased by 29% (30% at constant currency) to
$2.16 billion.  Total organic revenue growth worldwide was 9%.  
Dialysis Services revenue grew by 38% to US$1.65 billion (38% at
constant currency) in the second quarter of 2006.  Dialysis
Product revenue increased by 9% to US$514 million (9% at
constant currency) in the same period.  Excluding Renal Care
Group (RCG) and the divested dialysis clinics in conjunction
with the acquisition of RCG, revenue for the second quarter 2006
grew by 9%.

Operating income (EBIT) increased by 56% to US$372 million,
including a US$39 million gain from the divestiture of dialysis
clinics in conjunction with the regulatory approval for the
acquisition of RCG.  In addition, operating income for the
second quarter 2006 includes US$3 million of costs related to
the change of accounting principles for stock options (SFAS
123R) and US$4 million of one-time costs associated with the
restructuring of RCG and the transformation of Fresenius Medical
Care's legal form and related legal fees.

Excluding these costs and the gain from the divestiture,
operating income for the second quarter 2006 increased by 42% to
US$340 million resulting in an operating margin of 15.7%. For
the second quarter 2005 the operating margin was 14.3%.

Net interest expense for the second quarter 2006 was US$100
million compared to US$43 million in the same quarter of 2005.  
This increase is absolutely in line with expectations and is
purely the result of the debt financing for the RCG acquisition.

Income tax expense was US$135 million in the second quarter of
2006 as compared to US$79 million in the second quarter 2005,
reflecting effective tax rates of 49.6% and 40.4%, respectively.  
The tax rate has been impacted in the second quarter by tax
payments in connection with the divestiture of dialysis clinics
in the U.S. and the change of accounting principles for stock
options (SFAS 123R).  Excluding this impact, the tax rate was at
38.8%.

Cash Flow

In the second quarter of 2006, the Company generated US$165
million in cash from operations, compared to US$130 million last
year. Cash from operations in the second quarter includes US$75
million net tax payments related to the divestiture of clinics
and the RCG acquisition. Excluding these tax payments, the
underlying cash from operations in the second quarter 2006 was
US$240 million, or 11.1% of revenue. The strong cash flow
generation was supported by reductions in Days Sales Outstanding
(DSO) and increased earnings.

A total of US$95 million was spent for capital expenditures, net
of disposals. Free Cash Flow before acquisitions was US$70
million compared to US$72 million in the second quarter of 2005.
Excluding tax payments related to the divestiture of clinics the
underlying Free Cash Flow before acquisitions in the second
quarter 2006 was US$145 million. A total of US$24 million in
cash was used for acquisitions excluding the RCG acquisition.

"Our second quarter and half year financial results were
excellent and exceeded expectations," Ben Lipps, Chief Executive
Officer of Fresenius Medical Care, commented.  "We continue to
see earnings growth momentum which is based on the success of
our global business strategies and the dedication of our
employees.  In addition, Renal Care Group is continuing to
perform very well and our integration is well underway and on
track.  We are pleased that all regions and business segments
grew at or above market.  North America and Europe, which
represent over ninety percent of our business, continued their
strong growth in both the products and services segments.  Based
on the strong start in 2006, we have raised our revenue and net
income guidance for 2006."

                      First Half 2006

In the first half of 2006, net income was US$246 million, up 10%
from the first half of 2005.  Excluding costs related to the
change of accounting principles for stock options (SFAS 123R)
and one-time items net income increased by 19% to US$266
million.

Net revenue was US$3.91 billion, up 19% from the first half of
2005.  Adjusted for currency, net revenue rose 20% in the first
half of 2006.  Excluding Renal Care Group and the divested
clinics revenue for the first half of 2006 grew by 10%.

Operating income (EBIT) increased by 34% to US$616 million.  
Operating income for the first half of 2006 includes US$29
million of income as a result of the gain from the clinic
divestitures, net of costs mainly related to the RCG
restructuring and the change of accounting principles for stock
options.

Excluding these costs, operating income for the first half of
2006 increased by 28% to US$587 million.  This performance
resulted in an operating margin of 15.0% as compared to 14.0%
for the first half of 2005.

Net interest expense for the first six months of 2006 was US$156
million as a result of the write-off of deferred financing costs
related to the 2003 senior credit facility of US$15 million and
one quarter worth of additional interest expense, both in
conjunction with the financing of the RCG acquisition.  Income
tax expense was US$206 million in the first half of 2006 as
compared to US$149 million in the same period in 2005,
reflecting effective tax rates of 44.8% and 39.8%, respectively.
The tax rate has been impacted by tax payments in connection
with the gain on divestiture of dialysis clinics in the U.S. and
the change of accounting principles for stock options (SFAS
123R).  Excluding this impact, the tax rate was at 38.5%.

For the first half of 2006, earnings per ordinary share rose by
9% to US$2.51 (US$0.84 per ADS).  The weighted average number of
shares outstanding during the first half of 2006 was
approximately 97.9 million.

Cash Flow

Cash from operations during the first half of 2006 was US$327
million as compared to US$268 million in the first half of 2005.  
Cash from operations in the first half of 2006 includes US$75
million net tax payments related to the divestiture of clinics
and the RCG acquisition.  Excluding these tax payments the
underlying cash from operations was US$402 million in the first
half of 2006.  The increase compared to prior year was mainly
due to strong collection of receivables, improvements in
earnings and lower income tax payments for prior years.

A total of US$160 million was used for capital expenditures, net
of disposals.  Free Cash Flow before acquisitions for the first
half of 2006 was US$167 million as compared to US$171 million in
the first half of 2005.  Excluding tax payments due to the
divestiture of clinics the underlying Free Cash Flow before
acquisitions in the first half of 2006 was US$242 million.  A
total of US$35 million in cash was used for acquisitions other
than the RCG acquisition in the first half of 2006.

                  Outlook for 2006 Upgraded

Based on the strong performance in the first half of 2006, the
Company upgrades its guidance for the full year 2006.  After
expecting to report a revenue of about US$8.1 billion, the
Company now expects a revenue for 2006 of about US$8.3 billion.

The Company also upgrades its outlook for reported net income
for 2006.  After expecting a net income between US$515 million
and US$535 million, the Company now expects to report a net
income of at least US$542 million, which represents an increase
of at least 15% over the 2005 level.

In order to show the underlying performance of the Company, the
guidance does not take into effect any expected one-time items
and the change of accounting principle for stock options - SFAS
123(R) in the fiscal year 2006.

After previously assuming the after tax impact of one-time items
and SFAS 123(R) to be about US$60 million the Company now
expects this impact to be about US$40 million for the full year
2006.

In addition, the Company confirms its guidance on capital
expenditures and acquisition spending to be approximately US$550
million in 2006.

Full-text copies of Fresenius' 2006 second quarter and first
half results are available at no charge at
http://ResearchArchives.com/t/s?f19

Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG
(Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p) --
http://www.fmc-ag.com/-- is the world's largest, integrated  
provider of products and services for individuals undergoing
dialysis because of chronic kidney failure, a condition that
affects more than 1,300,000 individuals worldwide.  Through its
network of approximately 1,645 dialysis clinics in North
America, Europe, Latin America, Asia-Pacific and Africa,
Fresenius Medical Care provides dialysis treatment to
approximately 128,200 patients around the globe.  Fresenius
Medical Care is also the world's leading provider of dialysis
products such as hemodialysis machines, dialyzers and related
disposable products.  Fresenius AG holds approximately 37% of
Fresenius Medical Care AG & Co. KgaA's capital.

                        *     *     *

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

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

Fresenius Medical Care & Co KgaA's:

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

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

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


GASTRODOM GMBH: Claims Registration Ends September 5
----------------------------------------------------
Creditors of Gastrodom GmbH have until Sept. 5 to register their
claims with court-appointed provisional administrator Rainer
Eckert.

Creditors and other interested parties are encouraged to attend
the meeting at 8:15 a.m. on Oct. 10 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 Hanover
         Hall 226
         2nd Floor
         Office Building
         Hamburg Avenue 26
         30161 Hanover, 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 Hanover opened bankruptcy proceedings
against Gastrodom GmbH on July 5.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Gastrodom GmbH
         Attn: Axel Felsenstein, Manager
         Joachim Str. 3
         30159 Hanover, Germany

The administrator can be contacted at:

         Dr. Rainer Eckert
         Arthur-Menge-Ufer 5
         30169 Hanover, Germany
         Tel: 0511/626287-0
         Fax: 0511/626287-10

         
GRUNDSTUECKSGESELLSCHAFT ADLERSHOF: Meeting Slated for Aug. 24
--------------------------------------------------------------
The court-appointed provisional administrator for
Grundstuecksgesellschaft Adlershof Haus 10 GmbH & Co. KG, Dirk
Wittkowski, will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 9:45 a.m. on
Aug. 24.

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

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

The Court will also verify the claims set out in the
administrator's report at 9:45 a.m. on Nov. 16 at the same
venue.

Creditors have until Sept. 20 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Grundstuecksgesellschaft Adlershof Haus 10
GmbH & Co. KG on July 13.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Grundstuecksgesellschaft Adlershof Haus 10 GmbH
         & Co. KG
         Kleinen Wannsee 8
         14109 Berlin, Germany

The administrator can be reached at:

         Dr. Dirk Wittkowski
         Kirchblick 11
         14129 Berlin, Germany


KLEEMANN & SCHOETTNER: Claims Registration Ends August 16
---------------------------------------------------------
Creditors of Kleemann & Schoettner oHG Einbaukuechen-Essplatze-
Moebel have until Aug. 16 to register their claims with court-
appointed provisional administrator Ernst Wiesner.

Creditors and other interested parties are encouraged to attend
the meeting at 10:55 a.m. on Sept. 6 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hagen
         Area 283
         2nd Floor
         Main House (New Building)
         Heinitzstrasse 42
         58097 Hagen, 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 Hagen opened bankruptcy proceedings
against Kleemann & Schoettner oHG Einbaukuechen-Essplatze-Moebel
on July 18.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Kleemann & Schoettner oHG
         Hagener Str. 7
         58285 Gevelsberg, Germany

The administrator can be contacted at:

         Ernst Wiesner
         Kirchender Dorfweg 14
         58313 Herdecke, Germany
         Tel: 02330-80880
         Fax: +492330808888


MAEHLER & KAEGE: Claims Registration Ends August 21
---------------------------------------------------
Creditors of Maehler & Kaege Aktiengesellschaft have until
Aug. 21 to register their claims with court-appointed
provisional administrator Helmut Lorentz.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 20 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bingen am Rhein
         Hall 7
         Law Courts
         Mainzer Road 52
         55411 Bingen am Rhein, 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 Bingen am Rhein opened bankruptcy
proceedings against Maehler & Kaege Aktiengesellschaft on
July 14.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Maehler & Kaege Aktiengesellschaft
         Attn: Helmut Immerheiser, Manager
         Wilhelm-Leuschner-Str. 56
         55218 Ingelheim, Germany

The administrator can be contacted at:

         Dr. Helmut Lorentz
         Emperor Route 64
         55116 Mainz, Germany
         Tel: 06131/234551
         Fax: 06131/231094


MEDICAL PHYSIO: Claims Registration Ends August 10
--------------------------------------------------
Creditors of Medical Physio Point GmbH have until Aug. 10 to
register their claims with court-appointed provisional
administrator Christoph Schulte-Kaubruegger.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 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 Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Dortmund opened bankruptcy proceedings
against Medical Physio Point GmbH on July 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Medical Physio Point GmbH
         Kamener Str. 7
         59425 Unna, Germany

         Attn: Udo Pfaff, Manager
         Salinenstr. 3
         59425 Unna, Germany

The administrator can be contacted at:

         Dr. Christoph Schulte-Kaubruegger
         Rheinlanddamm 199
         44139 Dortmund, Germany


MINK SNACK: Claims Registration Ends August 28
----------------------------------------------
Creditors of Mink Snack GmbH have until Aug. 28 to register
their claims with court-appointed provisional administrator
Florian Stapper.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 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 Leipzig
         Hall 145
         Leipzig, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Leipzig opened bankruptcy proceedings
against Mink Snack GmbH on July 14.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         Mink Snack GmbH
         Attn: Eric Biebinger, Manager
         Blumenstr. 53
         04155 Leipzig, Germany

The administrator can be contacted at:

         Dr. Florian Stapper
         Karl-Heine-Road 16
         04229 Leipzig, Germany
         

RUDOLF BERG: Claims Registration Ends September 4
-------------------------------------------------
Creditors of Rudolf Berg Sanitar + Heizung GmbH have until
Sept. 4 to register their claims with court-appointed
provisional administrator Andreas Amelung.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Oct. 4 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 Rudolf Berg Sanitar + Heizung GmbH on July 14.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Rudolf Berg Sanitar + Heizung GmbH
         Hillesheimstr. 6
         50735 Cologne, Germany

         Attn: Martina Berg, Manager
         Gruener Hof 39
         50739 Cologne, Germany

The administrator can be contacted at:

         Andreas Amelung
         Mediapark 6 B
         50670 Cologne, Germany


SISTRA VERWALTUNGSGESELLSCHAFT: Meeting Slated for August 30
------------------------------------------------------------
The court-appointed provisional administrator for Sistra
Verwaltungsgesellschaft mbH & Co. Silbersteinstrasse KG, Udo
Feser, will present his first report on the Company's insolvency
proceedings at a creditors' meeting at 9:30 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 9:10 a.m. on Dec. 6 at the same venue.

Creditors have until Oct. 13 to register their claims with the
court-appointed provisional administrator.

The District Court of Charlottenburg opened bankruptcy
proceedings against Sistra Verwaltungsgesellschaft mbH & Co.
Silbersteinstrasse KG on July 17.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Sistra Verwaltungsgesellschaft mbH & Co.
         Silbersteinstrasse KG
         Dueppelstr. 37
         12163 Berlin, Germany

The administrator can be reached at:

         Udo Feser
         Uhlandstr. 165/166
         10719 Berlin, Germany


SPECTRUM BRANDS: U.S. Attorney's Office Terminates Investigation
----------------------------------------------------------------
The U.S. Attorney's Office for the Northern District of Georgia
informed Spectrum Brands, Inc., on July 27, 2006, that it has
terminated its investigation initiated Nov. 9, 2005.

The investigation relates to the company's financial results for
the third and fourth quarters of fiscal year 2005 and the impact
of the results on anticipated fiscal year 2006 earnings, as well
as to the sale of company shares by senior management in advance
of negative financial disclosures in 2005.  The Company
continues to cooperate with the Atlanta District Office of the
Securities and Exchange Commission's investigation into the
matters.

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products   
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.  
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world.  In Europe, the company is
headquartered in Sulzbach, Germany.  The company's stock trades
on the New York Stock Exchange under the symbol SPC.

                           *     *     *

As reported in the Troubled Company Reporter on June 15, 2006,
Standard & Poor's Ratings Services affirmed its ratings on
Spectrum Brands Inc., including the 'B-' corporate credit
rating. At the same time, the ratings were removed from Credit
Watch, where they were placed with negative implications
April 6, 2006, following the Company's substantially lowered
earnings guidance for the second quarter.  S&P said the rating
outlook is negative.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service downgraded all ratings of Spectrum
Brands, Inc.  The outlook for the ratings is stable.  This
action concluded the review for downgrade that was initiated on
April 7, 2006.  Ratings downgraded include Corporate family
rating to B3 from B2; US$300 million senior secured revolving
credit facilities to B2 from B1; US$1.2 billion senior secured
term loan facilities to B2 from B1; US$700 million senior
subordinated notes due 2015 to Caa2 from Caa1, and US$350
million senior subordinated notes due 2013 to Caa2 from Caa1.


SPECTRUM BRANDS: Third Quarter Earnings Down to US$2.5 Million
--------------------------------------------------------------
Spectrum Brands, Inc. reported net income for the quarter ended
July 2, 2006 of US$2.5 million compared to US$23.7 million for
the quarter ended July 3, 2005.

The Company also disclosed net sales for the third fiscal
quarter ending July 2, 2006 was US$698.3 million versus US$707.8
million for the same period a year ago.

Net income for the nine months ended July 2, 2006 was US$5.4
million, compared to US$49.7 million for the same period in the
previous year.

For the nine months ended July 2, 2006, net sales was US$1.94
billion, up by 13% from US$1.72 billion, for the same period a
year ago.

"Spectrum Brands continues to face challenges in our European
battery business, which was the leading contributor to our
disappointing third quarter results," David A. Jones, chairman
and chief executive officer, said.  "We also generated lower-
than-expected sales this quarter from Remington men's shaving in
North America at Father's Day.  However, there were a number of
bright spots in our third quarter results, including a strong
performance from Remington branded products in Europe and a
modest but encouraging sequential improvement in our North
American battery business.

Gross margin for the quarter was 38% versus 38.2% for the same
period last year.  The decline in gross margin percentage
resulted primarily from lower sales in the global battery
business and increased raw material costs.

Operating income was US$49.0 million versus fiscal 2005's third
quarter operating income of US$69.0 million.

Third quarter interest expense was US$45.7 million versus
US$38.6 million last year due to increased debt levels from the
Tetra acquisition and higher interest rates.  Total debt at
July 2, 2006 was US$2.283 billion.

Corporate expenses were US$27.6 million, compared to US$22.1
million in the prior year period.  Expansion of the global
operations support infrastructure and increased professional
fees accounted for the majority of the increase.

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products   
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.  
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world.  In Europe, the company is
headquartered in Sulzbach, Germany.  The company's stock trades
on the New York Stock Exchange under the symbol SPC.

                           *     *     *

As reported in the Troubled Company Reporter on June 15, 2006,
Standard & Poor's Ratings Services affirmed its ratings on
Spectrum Brands Inc., including the 'B-' corporate credit
rating. At the same time, the ratings were removed from Credit
Watch, where they were placed with negative implications
April 6, 2006, following the Company's substantially lowered
earnings guidance for the second quarter.  S&P said the rating
outlook is negative.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service downgraded all ratings of Spectrum
Brands, Inc.  The outlook for the ratings is stable.  This
action concluded the review for downgrade that was initiated on
April 7, 2006.  Ratings downgraded include Corporate family
rating to B3 from B2; US$300 million senior secured revolving
credit facilities to B2 from B1; US$1.2 billion senior secured
term loan facilities to B2 from B1; US$700 million senior
subordinated notes due 2015 to Caa2 from Caa1, and US$350
million senior subordinated notes due 2013 to Caa2 from Caa1.


=============
H U N G A R Y
=============


AES CORP: Dominican Unit Submits Electricity Crisis Resolution
--------------------------------------------------------------
AES Dominicana, a unit of AES Corp. in the Dominican Republic,
disclosed a proposal to resolve the crisis in the country's
electricity problems, Dominican Today reports.

As reported in the Troubled Company Reporter-Latin America on
July 27, 2006, the Dominican Republic was experiencing power
outages of up to 12 hours long, in the areas of the National
District, Santo Domingo Province, El Cibao, and the southern
region.  There had been problems in the Cibao transmission lines
and Santo Domingo Province.  Some cities were also experiencing
an overload in the urban transmission system.  The deficit was
approximately 600 megawatts, the Superintendence of Electricity
said.

AES Dominicana said that it is aware of the need to help to
resolve the structural problems caused by the recurrent crisis
in the electrical sector.

AES Dominicana proposed to resolve the crisis in the electrical
sector via the document "Sustainable development of the
Dominican electrical sector, 2006."

The company published in March 2004 the "Sustainable development
of the Dominican electrical sector," which covers the most
important subjects and encouraged integration and dialogue among
the agents in the industry as a key element to achieve the
definitive recuperation of the system.  Since then, progress has
been made in these aspects:

    -- improvement the "Pass Through" formula of the tariff,

    -- elimination of losses due to the exchange rate,

    -- consciousness-raising campaigns on energy savings and
       electrical fraud,

    -- better focusing of subsidy,

    -- reduction of the intra-sectorial debt, and

    -- proposal for redesign of the PRA.

Specific objectives for a plan to normalize electrical service:

    -- guarantee the providing of electrical service to all
       users of the system, including self-generators and
       isolated systems;

    -- adjust the technical and economic parameters proper to
       the electrical distribution service in the area, so that
       they achieve values close to those that are standard for
       services of similar characteristics;

    -- design and implement methods for measuring and control of
       service, within the scope of the Regulatory Agency, that
       will permit evaluation of the distributors' performance;
       and

    -- ensure that the economic resources contributed by the
       users and the Government, in payment for service
       received, are used in a manner that does not deviate from
       the objectives of the companies and the development of
       the sector.

In order to improve the condition of the national electrical
industry, AES Dominicana pointed out the need to identify and
implement an integral program.  To do this, it is necessary to
adopt a global focus of all the variables, due to the
interrelationships among the many problems that the sector is
facing.

The tactics adopted to confront the electricity sector's
difficulties have been short-term responses to emergencies
presented in day-to-day management by the different agents,
which has no result in the definitive solution of the industry's
real problems.

In the Sustainable development of the Dominican electrical
sector, 2006", AES Dominicana identified the primary causes of
the chronic situation, and proposed solutions intended to
achieve long-term sector sustainability.  The company said it is
also necessary to adopt short- and long-term measures that will
be applied simultaneously and immediately.

Joint application of the measures proposed will generate gradual
improvement in the sector's situation, whose expected effects
are:

    -- Levels of non-technical losses will be reduced
       significantly, and collection indices will increase to
       normal levels through:

       * institutional support,

       * appropriate penalties for non payment, theft and fraud,

       * design of tariff structure and efficient prices
         signals,

       * mitigation of generation cost,

       * investment plan to adjust and normalize transmission
         and distribution grids,

       * improvements in commercial management and grid
         operation, and

       * approaching the community.

    -- The cost to provide electrical service will be
       significantly reduced as a result of:

       * reduction in the cost of generation,

       * appropriate price signals, to discourage connections of
         new substations and private grids (physical by-passes)
         and to reincorporate of those existing onto the public
         grid, and

       * incentives to incorporate self-generators onto the
         public grid.

   -- The distributors' operating balance will improve until
      they reach their financial equilibrium.

Distribution companies, begin to regularize payments to the
generation companies, and to normalize the handling of the
demand due to financial problems.  Subsidies by the government
for PRA and the coverage of the deficit of the distribution
companies will be significantly reduced.  These effects will be
produced as a consequence of:

   -- reduction of non-technical losses,
   -- improvement in collection,
   -- reduction in the cost of service, and
   -- redesigning of the PRA program.

                      About the Company

AES Corporation -- http://www.aes.com/-- is a global power   
company.  The Company operates in South America, Europe, Africa,
Asia and the Caribbean countries.  Generating 44,000 megawatts
of electricity through 124 power facilities, the Company
delivers electricity through 15 distribution companies.

AES has been in Eastern Europe for nearly ten years, since it
acquired three power plants in Hungary in 1996.  Today, AES has
two distribution companies in Ukraine, which serve 1.2 million
customers and generation plants in the Czech Republic and
Hungary.  AES is also the leading company in biomass conversion
in Hungary, generating 37% of the nation's total renewable
generation in 2004.

                        *     *     *

As reported in the Troubled Company Reporter on May 25, Fitch
affirmed The AES Corporation's Issuer Default Rating at 'B+'.  
Fitch also affirmed and withdrew the ratings for the company's
junior convertible debt.  Fitch said the rating outlook for all
remaining instruments is stable.

In March, Standard & Poor's Ratings Services raised its
corporate credit rating on diversified energy company The AES
Corp. to 'BB-' from 'B+'.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, Moody's
affirmed the ratings of The AES Corporation, including its Ba3
Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


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


HIBERNIAN GENERAL: Creditors to Vote on Scheme on Oct. 27
---------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss
-----------------------------------------------------------
Scottish Re Group Limited (NYSE:SCT) released its operating
results for the second quarter ended June 30, 2006.

The net loss available to ordinary shareholders for the three
months ended June 30, 2006 was US$123.9 million, as compared
with a net income available to ordinary shareholders of US$1.6
million for the prior year period.

The net loss available to ordinary shareholders for the six
months ended June 30, 2006 was US$112.3 million, as compared to
net income available to ordinary shareholders of US$35.0
million, for the prior year period.

The net operating loss available to ordinary shareholders was
US$130.3 million, for the three months ended June 30, 2006 as
compared to net operating earnings of US$19.7 million for the
prior year period.

The net operating loss available to ordinary shareholders was
US$116.0 million for the six months ended June 30, 2006, as
compared to net operating earnings of US$46.6 million for the
prior year period.

"The results for the quarter are a sharp departure from our
original projections and estimates provided to our stakeholders"
Paul Goldean, Interim Chief Executive Officer, said.  "While we
are very disappointed with the results, we believe that the core
fundamentals of the business are sound.  In fact, our mortality
experience for the quarter was in line with expectations."

The net operating loss for the second quarter was primarily
attributable to the following factors:

   -- tax expense of US$89.0 million principally related to a
      US$112.4 million valuation allowance established on
      deferred tax assets.  The valuation allowance resulted
      from revised statutory and tax projections of the Company
      combined with a reassessment of certain tax planning
      strategies;

   -- an approximate US$8.0 million reduction in premium
      accruals in North America resulting from a revision of
      estimates relating to prior periods;

   -- a deferred acquisition cost adjustment of approximately
      US$13.0 million due to higher than expected lapses on
      certain fixed annuity treaties;

   -- external retrocession and reserve adjustments of
      approximately US$21.0 million due to revisions in
      estimates resulting from improved data and systems which
      administer retrocession accounts; and

   -- severance and retirement and other non-recurring operating
      expenses of approximately US$9.0 million.

"It is important, however, to keep the loss in perspective and
to note that Scottish Re continues to have sufficient sources of
liquidity, collateral and capital to meet the near-term needs of
the business." said Dean Miller, Chief Financial Officer.  "Of
particular note is that all operating subsidiaries remain
capitalized well in excess of their minimum required levels as
prescribed by their respective Regulators."

Total revenues for the three months ended June 30, 2006
increased to US$593.6 million from US$502.0 million for the
prior year period, an increase of 18%.  Excluding realized gains
and losses and the change in value of the embedded derivatives,
total revenues for the three months ended June 30, 2006
increased to US$597.6 million from US$523.2 million for the
prior year period, an increase of 14%.

Total revenues for the six months ended June 30, 2006, increased
to US$1.17 billion from US$1.06 billion for the prior year
period, an increase of 11%.  Excluding realized gains and losses
and the change in value of the embedded derivatives, total
revenues for the six months ended June 30, 2006 increased to
US$1,179.3 million from US$1,071.0 million for the prior year
period, an increase of 10%.

Premiums earned in the three months ended June 30, 2006 were
negatively impacted by revisions to previous premium accrual
estimates of approximately US$8 million (pre-tax) and
adjustments related to retro premiums of approximately US$13
million (pre-tax).  The investment portfolio, which increased by
US$1.74 billion from the closing of the Ballantyne Re
transaction in May, continued to perform well with an average
yield of 5.5% compared to an average yield for the first quarter
2006 of 5.3%.

Total benefits and expenses increased to US$626.0 million for
the three months ended June 30, 2006 from US$508.8 million for
the prior year period, an increase of 23%.  Total benefits and
expenses increased to US$1,197.8 million for the six months
ended June 30, 2006 from US$1,032.0 million for the prior year
period, an increase of 16%.   Total benefits and expenses
exceeded estimates due to refinements in our external
retrocession reserves of approximately US$7 million (pre-tax).

In addition, an adjustment of approximately US$13 million (pre-
tax) to write-down deferred acquisition costs was made to
reflect the Company's current best estimate of lapses on certain
fixed annuity treaties.

The Company's operating expense ratio (which is the ratio of
operating expenses to total revenue excluding realized gains and
losses and the change in value of embedded derivatives) for the
six months ended June 30, 2006 was 6.0%, as compared to an
operating expense ratio of 5.0% for the year ended December 31,
2005.  Operating expenses for the quarter were negatively
impacted by severance and retirement expenses of approximately
US$5.0 million, expenses related to the International segment
expansion and various professional fees that on a combined basis
amounted to an additional US$3.0 million.

For the three months ended June 30, 2006, the Company had a pre-
tax loss of US$32.4 million before Minority Interest and
recorded an initial tax benefit of US$23.4 million on those
losses. In addition, the Company recorded a US$112.4 million
valuation allowance resulting in a total tax charge of US$89.0
million for the period.

The Company's book value per share was US$17.73 at June 30, 2006
as compared to US$21.48 per share at December 31, 2005. Fully
converted book value per share was US$19.27 at June 30, 2006 as
compared to US$21.17 at December 31, 2005.

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--  
offers reinsurance of life insurance, annuities and annuity-type
products through its operating companies in Bermuda, Charlotte,
North Carolina, Grand Cayman Dublin, Ireland, and Windsor,
United Kingdom.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities.

                           *    *    *

As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated
these rating actions:

Scottish Re Group Limited

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

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

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

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

All ratings remain on Rating Watch Negative.

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

These ratings were downgraded and remain on negative outlook:

Scottish Re Group Limited:

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

A.M. Best likewise downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  A.M. Best Co. also downgraded the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).

All FSR and debt ratings have been placed under review with
negative implications.

The FSR has been downgraded to B++ from A- and the ICRs have
been downgraded to "bbb+" from "a-" and placed under review with
negative implications for these subsidiaries of Scottish Re
Group Limited:

  -- Scottish Annuity & Life Insurance Company (Cayman) Ltd;
  -- Scottish Re (U.S.), Inc.;
  -- Scottish Re Life Corporation;
  -- Scottish Re Limited; and
  -- Orkney Re, Inc.

The ICR has been downgraded to "bb+" from "bbb-" and placed
under review with negative implications for Scottish Re Group
Limited.

These debt ratings have been downgraded and placed under review
with negative implications:

Scottish Re Group Limited

   -- "bb+" from "bbb-" on US$115 million 4.5% senior
      unsecured convertible notes, due 2022;

   -- "bb-" from "bb" on US$143 million 5.875% of hybrid
      capital units, due 2007; and

   -- "bb-" from "bb" on US$125 million non-cumulative
      preferred shares;

Stingray Pass-thru Trust

   -- "bbb+" from "a-" on US$325 million senior unsecured
      pass-thru certificates, due 2012

These indicative ratings for debt securities under the shelf
registration have been downgraded and placed under review with
negative implications:

Scottish Re Group Limited

   -- "bb-" from "bb" on preferred stock;
   -- "bb" from "bb+" on subordinated debt; and
   -- "bb+" from "bbb-" on senior unsecured debt.

Scottish Holdings Statutory Trust II and III

   -- "bb" from "bb+" on preferred securities.

Standard & Poor's Ratings Services placed its 'BBB- counterparty
credit rating on Scottish Re Group Ltd. on CreditWatch with
negative implications.  Standard & Poor's also said that it
placed its various ratings on Scottish Re's operating
subsidiaries and other related entities on CreditWatch negative.

The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and business position of the
company.


SCOTTISH RE: Names Nathan Gemmiti as General Counsel
----------------------------------------------------
Scottish Re Group Limited (NYSE:SCT) has appointed Nathan V.
Gemmiti as General Counsel.

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

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

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

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--  
offers reinsurance of life insurance, annuities and annuity-type
products through its operating companies in Bermuda, Charlotte,
North Carolina, Grand Cayman Dublin, Ireland, and Windsor,
United Kingdom.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities.

                           *    *    *

As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated
these rating actions:

Scottish Re Group Limited

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

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

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

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

All ratings remain on Rating Watch Negative.

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

These ratings were downgraded and remain on negative outlook:

Scottish Re Group Limited:

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

A.M. Best likewise downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  A.M. Best Co. also downgraded the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).

All FSR and debt ratings have been placed under review with
negative implications.

The FSR has been downgraded to B++ from A- and the ICRs have
been downgraded to "bbb+" from "a-" and placed under review with
negative implications for these subsidiaries of Scottish Re
Group Limited:

  -- Scottish Annuity & Life Insurance Company (Cayman) Ltd;
  -- Scottish Re (U.S.), Inc.;
  -- Scottish Re Life Corporation;
  -- Scottish Re Limited; and
  -- Orkney Re, Inc.

The ICR has been downgraded to "bb+" from "bbb-" and placed
under review with negative implications for Scottish Re Group
Limited.

These debt ratings have been downgraded and placed under review
with negative implications:

Scottish Re Group Limited

   -- "bb+" from "bbb-" on US$115 million 4.5% senior
      unsecured convertible notes, due 2022;

   -- "bb-" from "bb" on US$143 million 5.875% of hybrid
      capital units, due 2007; and

   -- "bb-" from "bb" on US$125 million non-cumulative
      preferred shares;

Stingray Pass-thru Trust

   -- "bbb+" from "a-" on US$325 million senior unsecured
      pass-thru certificates, due 2012

These indicative ratings for debt securities under the shelf
registration have been downgraded and placed under review with
negative implications:

Scottish Re Group Limited

   -- "bb-" from "bb" on preferred stock;
   -- "bb" from "bb+" on subordinated debt; and
   -- "bb+" from "bbb-" on senior unsecured debt.

Scottish Holdings Statutory Trust II and III

   -- "bb" from "bb+" on preferred securities.

Standard & Poor's Ratings Services placed its 'BBB- counterparty
credit rating on Scottish Re Group Ltd. on CreditWatch with
negative implications.  Standard & Poor's also said that it
placed its various ratings on Scottish Re's operating
subsidiaries and other related entities on CreditWatch negative.

The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and business position of the
company.


SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops
----------------------------------------------------------------
Scottish Re Group Limited (NYSE:SCT), a global life reinsurance
specialist, discloses of the appointment Clifford R. Wagner as
Chief Executive Officer of the Company's North American
business.

Mr. Wagner has been with Scottish Re since 2000 and has served
as the Company's Executive Vice President and Chief Actuary.

"We are pleased to have an individual with Cliff's thorough
knowledge of the Company and broad experience in the life
reinsurance industry assume leadership for our North American
operation," said Paul Goldean, President and Chief Executive
Officer of Scottish Re Group Limited.

Mr. Wagner has more than 20 years insurance experience and prior
to Scottish Re, worked for TransAmerica Reinsurance Company,
Time Insurance and the Hartford Insurance Group.  Mr. Wagner
holds a B.S. degree in actuarial mathematics from the University
of Wisconsin, Madison.  He is a Fellow of the Society of
Actuaries (FSA), a Member of the American Academy of Actuaries
(MAAA) and also has earned Chartered Life Underwriter (CLU),
Chartered Financial Consultant (ChFC) and Fellow Life Management
Institute (FLMI) designations.

Mr. Wagner succeeds Seth Vance who served as Chief Executive
Officer -- North America since his appointment in April, 2004.
Mr. Vance recently resigned in lieu of reassignment within the
Company.

"Together with other important achievements, Seth was
instrumental in leading the ING integration and combining the
best of both organizations to set new standards of excellence in
our industry. We wish him success in his future endeavors," Mr.
Goldean remarked.

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--  
offers reinsurance of life insurance, annuities and annuity-type
products through its operating companies in Bermuda, Charlotte,
North Carolina, Grand Cayman Dublin, Ireland, and Windsor,
United Kingdom.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities.

                           *    *    *

As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated
these rating actions:

Scottish Re Group Limited

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

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

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

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

All ratings remain on Rating Watch Negative.

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

These ratings were downgraded and remain on negative outlook:

Scottish Re Group Limited:

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

A.M. Best likewise downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  A.M. Best Co. also downgraded the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).

All FSR and debt ratings have been placed under review with
negative implications.

The FSR has been downgraded to B++ from A- and the ICRs have
been downgraded to "bbb+" from "a-" and placed under review with
negative implications for these subsidiaries of Scottish Re
Group Limited:

  -- Scottish Annuity & Life Insurance Company (Cayman) Ltd;
  -- Scottish Re (U.S.), Inc.;
  -- Scottish Re Life Corporation;
  -- Scottish Re Limited; and
  -- Orkney Re, Inc.

The ICR has been downgraded to "bb+" from "bbb-" and placed
under review with negative implications for Scottish Re Group
Limited.

These debt ratings have been downgraded and placed under review
with negative implications:

Scottish Re Group Limited

   -- "bb+" from "bbb-" on US$115 million 4.5% senior
      unsecured convertible notes, due 2022;

   -- "bb-" from "bb" on US$143 million 5.875% of hybrid
      capital units, due 2007; and

   -- "bb-" from "bb" on US$125 million non-cumulative
      preferred shares;

Stingray Pass-thru Trust

   -- "bbb+" from "a-" on US$325 million senior unsecured
      pass-thru certificates, due 2012

These indicative ratings for debt securities under the shelf
registration have been downgraded and placed under review with
negative implications:

Scottish Re Group Limited

   -- "bb-" from "bb" on preferred stock;
   -- "bb" from "bb+" on subordinated debt; and
   -- "bb+" from "bbb-" on senior unsecured debt.

Scottish Holdings Statutory Trust II and III

   -- "bb" from "bb+" on preferred securities.

Standard & Poor's Ratings Services placed its 'BBB- counterparty
credit rating on Scottish Re Group Ltd. on CreditWatch with
negative implications.  Standard & Poor's also said that it
placed its various ratings on Scottish Re's operating
subsidiaries and other related entities on CreditWatch negative.

The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and business position of the
company.


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


AVIO HOLDING: Moody's Places B1 Corp. Family Rating Under Review
----------------------------------------------------------------
Moody's Investors Service placed the B1 corporate family rating
of Avio Holding S.p.A. on review for possible downgrade
following the decision by Carlyle and Finmeccanica, which own
70% and 30% of Avio respectively, to sell their stakes to Cinven
Ltd, a private-equity firm.  The transaction values Avio at
approximately EUR2.6 billion including debt.  Moody's also
understands that Finmeccanica will retain an interest in Avio.  

Moody's review for possible downgrade will consider the new
capital structure following the transaction as well as the
financial strategy of the new majority owner.  Moody's will
focus in particular on the resulting financial leverage, in the
position of the debt within the capital structure and the
capability of the company to service any additional amount of
debt through its internal cash flow generation.  Moody's
acknowledges the operating performance improvements reported by
Avio over the recent quarters.

Headquartered near Turin, Italy, Avio is a leading designer and
supplier of subsystems and components for military and civil
aeroengines, including accessory gearbox modules and low-
pressure turbine components.  The company is also a leading
independent manufacturer of power transmissions for turboprops
and helicopters, and the sole supplier of solid rocket motors
for space launchers to major European space program.  For the
year ending December 2005 the company generated revenues for
approximately EUR1,281 million.


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


DIN-AI: Creditors Must File Claims by Sept. 8
---------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP Din-ai insolvent.

Creditors have until Sept. 8 to submit written proofs of claim
to:

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


EVRAZIA-XXI: Creditors Must File Claims by Sept. 8
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Evrazia-XXI insolvent on June 14 without the
introduction of the bankruptcy proceedings.

Creditors have until Sept. 8 to submit written proofs of claim
to:

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


INTERSERVIS CO: Proof of Claim Deadline Slated for Sept. 8
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Interservis Co Ltd. insolvent.

Creditors have until Sept. 8 to submit written proofs of claim
to:

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


KAMKOR: Proof of Claim Deadline Slated for Sept. 8
--------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared CJSC Auto Service and Trade Kamkor insolvent on
June 13.  A temporary insolvency manager has been appointed.

Creditors have until Sept. 8 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Office 35
    Mihaelisa Str. 1
         Ust-Kamenogorsk
    East Kazakhstan Region
    Kazakhstan


KAPITAL: Claims Registration Ends Sept. 8
-----------------------------------------
The Specialized Inter-Regional Economic Court of Aktobe Region
declared JSC Kapital insolvent.

Creditors have until Sept. 8 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of Aktobe Region
         Altynsarina Str. 31
         Aktobe
         Aktobe Region
         Kazakhstan


KULTBYTSTROI: Claims Registration Ends Sept. 8
----------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Kultbytstroi insolvent on June 12.  

Creditors have until Sept. 8 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Office 35
         Mihaelisa Str. 1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan


VASAND-TK: Creditors' Claims Due Sept. 8
----------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP Vasand-TK insolvent.

Creditors have until Sept. 8 to submit written proofs of claim
to:

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


VOSTOK-PRODUKT: Creditors' Claims Due Sept. 8
---------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Vostok-Produkt insolvent on June 13.  A
temporary insolvency manager has been appointed.

Creditors have until Sept. 8 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Office 35
         Mihaelisa Str. 1
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan


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


TASH-KAL: Creditors Must File Claims by Sept. 18
------------------------------------------------
LLC Tash-kal has declared insolvency.  Creditors have until
Sept. 18 to submit written proofs of claim to:

         LLC Tash-kal
         Ibraimov Str.  40
         Bishkek, Kyrgyzstan


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


ORTHOFIX INT'L: Acquisition Spurs S&P to Revise Rating Outlook
--------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'BB-' corporate credit rating for
Netherlands Antilles-based Orthofix International N.V. to
negative from positive.
      
"The CreditWatch revision reflects our concerns with the
company's agreement to acquire spinal implant and biologic
company Blackstone Medical Inc. for US$333 million," explained
Standard & Poor's credit analyst Jesse Juliano.

"The company will use term debt to finance this acquisition,
which will significantly weaken its financial risk profile.
Also, we remain concerned with the integration risks associated
the relatively large acquisition, including the ability of
Orthofix to compete directly with larger companies like
Medtronic Inc.  Standard & Poor's plans to meet with management
to further discuss the acquisition and ensuing capital
structure, and expect to resolve the CreditWatch listing within
a few months."
     
The rating on Orthofix was previously on CreditWatch with
positive implications, recognizing the progress that the company
had made in improving its credit profile by repaying debt.

Despite Orthofix's impressive debt repayment, Standard & Poor's
remained concerned with the potential for large debt-financed
acquisitions, and was waiting to discuss the company's growth
strategy with management before reviewing our rating for a
potential upgrade.  

Given the announced Blackstone Medical acquisition, a higher
rating is no longer possible in the near term.  Because the
rating will now be either affirmed or lowered upon resolution of
the CreditWatch listing, the implications were revised to
negative.


PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit
---------------------------------------------------------
Pyaterochka Holding N.V. has purchased 3,903 company GDRs,
Aug. 1, at a gross price of US$16.50 per GDR. This acquisition
was made as part of the company's 2006 GDR purchase program,
launched June 30.  The GDRs will be held as treasury stock and
used to meet the company's obligations under its employee stock
option programme.

Headquartered in the Netherlands, Pyaterochka Holding N.V. (LSE:
FIVE) -- http://www.e5.ru/english-- is a leading Russian food  
retailer operating a large store network largely covering the
Moscow region and St. Petersburg but also with a good presence
in other Russian regions through its franchise operations.  The
company has recently acquired two of its successful regional
franchise operations -- in Yekaterinburg and Chelyabinsk.  
Pyaterochka's 2004 net revenues were US$1.1 billion.  The
company had unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on Aug 7, Standard & Poor's Ratings
Services affirmed its 'BB-' long-term corporate credit rating on
Pyaterochka Holding N.V., the owner of Russia's largest grocery
retail network.

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

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

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


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


ASHLYK: Court Starts Bankruptcy Supervision
-------------------------------------------
The Arbitration Court of Dagestan Republic has commenced
bankruptcy supervision procedure on Bujnakskiy Combine of Grain
Products Ashlyk.  The case was docketed under Case No.
A15-267/2005.

The Temporary Insolvency Manager is:

         G. Murtazaev
         Ukhmanova Str. 12
         Makachkala
         Dagestan Republic
         Russia
         Tel: 8(9722) 68-32-69

The Debtor can be reached at:

         Bujnakskiy Combine of Grain Products Ashlyk
         Gorkogo Str. 1
         Buynaksk
         Dagestan Republic
         Russia


BATURINSKOYE: Court Names A. Gorokhov as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Smolensk Region appointed Mr. A.
Gorokhov as Insolvency Manager for CJSC Baturinskoye.  He can be
reached at:

         A. Gorokhov
         Nakhimovskaya Str. 16.
         Kholm-Zhirkovskiy
         215650 Smolensk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A62-1344/2006 (788-N/06).

The Debtor can be reached at:

         CJSC Baturinskoye
         Bogolyubovo
         Kholm-Zhirkovskiy
         215650 Smolensk Region
         Russia


BOGOTOLSKIY BREWERY: A. Timoshkevich to Manage Assets
-----------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed A.
Timoshkevich as Insolvency Manager for OJSC Bogotolskiy Brewery.  
He can be reached at:

         A. Timoshkevich
         Post User Box 16795
         660074 Krasnoyarsk-74
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-6333/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         Bogotolskiy Brewery
         Post User Box 16795
         660074 Krasnoyarsk-74
         Russia


EUROPEAN TRADING: Court Names A. Kirichenko to Manage Assets
------------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. A.
Kirichenko as Insolvency Manager for CJSC European Trading
Company.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A33-7750/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC European Trading Company
         Sovetskaya Str. 2
         Tura
         Krasnoyarsk Region
         Russia


GAZPROM: Wins Auction to Explore & Develop Parusovy Prospect
------------------------------------------------------------
OAO Gazprom obtained a license to explore and develop the
Parusovy prospect in the Yamal-Nenets Autonomous District at an
auction held in Salekhard this week.

The Parusovy prospect includes the homonymous oil & gas field
and is part of a group of Parusovye fields.  The group also
comprises the Severo-Parusovoye and Yuzhno-Parusovoye fields
(with 364 bcm of gas reserves) discovered through the
exploration activities of Yamburggazdobycha (a wholly owned
subsidiary of Gazprom).

The group of Parusovye fields is located near the existing
infrastructure of the Yamburgskoye oil & gas condensate field.  
Comprehensive development of fields in the Ob and Taz Bays
(including the Kamennomysskoye-Sea, Severo-Kamennomysskoye,
Obskoye fields with recoverable reserves of 818 bcm) and the
Parusovye fields is of strategic significance and will help
Gazprom optimize its development costs.

The Parusovy prospect has 46.6 bcm and 1.2 million t of gas and
oil reserves, respectively.  In addition, the prospect contains
240 mtce of promising hydrocarbon resources.

                          About Gazprom

Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX:
GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of  
the country's natural gas, controls 25% of the world's reserves,
and is also the world's largest gas producer.  It focuses on gas
exploration, processing, transport, and marketing.   Standard &
Poor's Ratings Services raised on Jan. 17, 2006, its long-term
corporate credit rating on OAO Gazprom to 'BB+' from 'BB'.

                          *     *     *

As reported in TCR-Europe on Jan. 18, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on OAO
Gazprom to 'BB+' from 'BB'.

As reported in the TCR-Europe on Oct 27, 2005, Fitch Ratings
upgraded Gazprom International S.A. Series 1 US$1.25-billion
structured export notes due Feb. 1, 2020 (XS0197695009) to 'BBB'
from 'BBB-'.

The upgrade follows Fitch's upgrade of OAO Gazprom's, the
world's largest gas company, Senior Unsecured local and foreign
currency ratings to 'BB+' from 'BB', and a change in Gazprom's
going concern assessment, which is now equivalent to a 'BBB'
rating compared to 'BBB-' previously.


KARAVAY: Court Names D. Glushkov as Insolvency Manager
------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. D.
Glushkov as Insolvency Manager for LLC Karavay.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-6414/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         LLC Karavay
         Nikolaeva Str. 3
         660073 Krasnoyarsk Region
         Russia


KRASNOSELSKAYA: Krasnodar Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Krasnodar Region has commenced
bankruptcy supervision procedure on CJSC Agro Company
Krasnoselskaya.  The case is docketed under Case No.
A-32-52765/2005-38/552 B.  

The Temporary Insolvency Manager is:

         A. Zaytsev
         Kozhevennaya Str. 18
         350004 Krasnodar Region
         Russia

The Debtor can be reached at:

         CJSC Agro Company Krasnoselskaya
         Lenina Str. 4a
         Sovetskiy
         Timashevskiy Region
         352731 Krasnodar Region
         Russia


KURSKAYA BEARING: Kursk Court Starts Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Kursk Region has commenced bankruptcy
supervision procedure on CJSC Kurskaya Bearing Company.  The
case is docketed under Case No. A35-3546/06 g.

The Temporary Insolvency Manager is:

         N. Postnikov
         Post User Box 123
         620039 Ekaterinburg Region
         Russia

The Arbitration Court of Kursk Region is located at:

         K. Marksa Str. 25
         305004 Kursk Region
         Russia

The Debtor can be reached at:

         CJSC Kurskaya Bearing Company
         3rd Agregatnaya Str. 23
         305022 Kursk Region
         Russia


LASVINSKOYE: Court Starts Bankruptcy Supervision
------------------------------------------------
The Arbitration Court of Perm Region has commenced bankruptcy
supervision procedure on CJSC Lasvinskoye (TIN 59160013335).  
The case is docketed under Case No. A50-5114/2006-B.

The Temporary Insolvency Manager is:

         A. Nagovitsyn
         Krasnovodskaya Str. 24-85
         614067 Perm Region
         Russia

The Arbitration Court of Perm Region is located at:

         Lunacharskogo Str. 3
         Perm Region
         Russia

The Debtor can be reached at:

         CJSC Lasvinskoye
         Tsentralnaya Str. 2
         Mysy
         Krasnokamsk
         Perm Region
         Russia


NOVATEK OAO: Posts Second Quarter 2006 Prelim Operating Figures
---------------------------------------------------------------
OAO Novatek reported its preliminary production data for the
second quarter and first half 2006.

Gross production for the second quarter totaled 7.06 billion
cubic meters of natural gas and 633,000 tons of liquids (gas
condensate and crude oil).  Natural gas production increased by
1.03 billion cubic meters, or by 17.1%, and gross liquids
production increased by 68,000 tons, or by 12.0%, as compared
with the corresponding gross production in the same period last
year (excluding asset disposals).

In the second quarter 2006, Novatek processed 505,000 tons of
unstable gas condensate at the Purovsky Gas Condensate
Processing Plant and polymer production from OAO NOVATEK-Polymer
totalled 3,500 tons.

In the first half of 2006, NOVATEK's gross production totaled
14.32 billion cubic meters of natural gas and 1.27 million tons
of liquids.  Natural gas production increased by 1.65 billion
cubic meters, or by 13.0%.  Production of gross liquids
increased by 184 thousand tons, or by 16.9% as compared with the
corresponding gross production in the first half of 2005
(excluding asset disposals).  For the first six months of 2006,
NOVATEK processed 1.034 million tons of unstable gas condensate
at the Purovsky Plant and polymer production from OAO NOVATEK-
Polymer totaled 8,200 tons.  

                    Dividend Declaration

On July 26, the company's Board of Directors has proposed an
interim dividend based on its first quarter 2006 results
according to Russian Standards of Accounting.  An Extraordinary
General Meeting of shareholders has been scheduled to approve
the interim dividend by a remote poll.  The deadline for the
acceptance of completed voting ballots is Sept. 11.

Shareholders registered at the close of business on July 31 will
be entitled to participate in NOVATEK's EGM and vote on the
issue of the interim dividend.

                        About Novatek

Headquartered in Moscow, OAO Novatek is Russia's second largest
gas company after state-controlled Gazprom, and the largest of
the country's independent gas producers.  

                        *     *     *

As reported in TCR-Europe on March 21, Standard & Poor's Ratings
Services assigned its 'BB-' long-term corporate credit rating to
OAO Novatek, Russia's largest independent gas producer.  S&P
said the outlook is stable.


NOVOLIPETSK STEEL: Hikes Equity Stake in NTK to 100%
----------------------------------------------------
Novolipetsk Steel has completed the acquisition of an additional
30% stake in LLC NTK from LLC EuroAsian Transport Company.
Through this transaction NLMK now holds 100% of shares in LLC
NTK.

LLC NTK is the key logistics provider for NLMK, arranging the
transportation of the company's raw materials supply and
delivering steel products to customers in Russia and abroad. The
company manages NLMK's relations with Russian Railways and with
port authorities for export products.

This acquisition is in line with NLMK's previously announced
internal restructuring plan, and of the key steps is a further
consolidation of the Company's core assets.

                        Share Listing

Novolipetsk's ordinary shares are now listed on Russia's largest
stock exchange, MICEX (Quotation List "B").  Listing the
company's shares on MICEX is aimed at further increasing its
liquidity.  Novolipetsk Steel shares are also listed on the
Russian Trade System stock exchange and on the London Stock
Exchange.

                      About the Company

Headquartered in the Lipetsk Region of the Russian Federation,
Novolipetsk Steel (LSE: NLMK), a Russian open joint-stock
company, was established as a state owned enterprise in 1931 and
was privatized in 1993, as part of the Russian privatization
program.  NLMK is the fourth largest Russian steel producer in
terms of tonnage.  It operates an integrated plant with complete
metallurgical cycle with a total crude steel output of 9.1
million tons (in 2004).  About 73% of NLMK's output is exported,
mainly to South East Asia (representing 21% of exports), the
European Union (29%) and North America (23%).

                        *     *     *

As reported in TCR-Europe on July 14, Standard & Poor's Ratings
Services raised its long-term corporate credit rating on Russia-
based steelmaker OJSC Novolipetsk Steel to 'BB+' from 'BB'.  The
outlook is stable.  The Russia national scale rating was also
raised to 'ruAA+' from 'ruAA'.

"The upgrade reflects the company's continuing strong
performance and conservative financial policies," said Standard
& Poor's credit analyst Tatiana Kordyukova.


PENZENSKIY FACTORY: Penza Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Penza Region has commenced bankruptcy
supervision procedure on CJSC Penzenskiy Factory of Communal
Engineering (TIN 5836610030).  The case is docketed under Case
No. A49-1905/2006-189b/3.

The Temporary Insolvency Manager is:

         V. Batrakov
         Office 002
         Pushkina Str. 2
         Penza Region
         Russia

The Debtor can be reached at:

         CJSC Penzenskiy Factory of Communal Engineering
         Stavskogo Str. 4
         Penza Region
         Russia


PRYAMITSINO: Kursk Court Starts Bankruptcy Supervision
------------------------------------------------------
The Arbitration Court of Kursk Region has commenced bankruptcy
supervision procedure on LLC Agro Company Pryamitsino.  The case
was docketed under Case No. A35-2711/06 g.

The Temporary Insolvency Manager is:

         V. Sakhno
         Post User Box 90
         123290 Moscow Region
         Russia

The Arbitration Court of Kursk Region is located at:

         K. Marksa Str. 25
         305004 Kursk Region
         Russia

The Debtor can be reached at:

         LLC Agro Company Pryamitsino
         Chernitsyno 5
         Oktyabrskiy Region
         Kursk Region
         Russia


PYATEROCHKA HOLDING: Buys 3,903 GDRs at US$16.50 Per Unit
---------------------------------------------------------
Pyaterochka Holding N.V. has purchased 3,903 company GDRs,
Aug. 1, at a gross price of US$16.50 per GDR. This acquisition
was made as part of the company's 2006 GDR purchase program,
launched June 30.  The GDRs will be held as treasury stock and
used to meet the company's obligations under its employee stock
option programme.

Headquartered in the Netherlands, Pyaterochka Holding N.V. (LSE:
FIVE) -- http://www.e5.ru/english-- is a leading Russian food  
retailer operating a large store network largely covering the
Moscow region and St. Petersburg but also with a good presence
in other Russian regions through its franchise operations.  The
company has recently acquired two of its successful regional
franchise operations -- in Yekaterinburg and Chelyabinsk.  
Pyaterochka's 2004 net revenues were US$1.1 billion.  The
company had unaudited net revenues of US$1.4 billion for 2005.

                        *     *     *

As reported in TCR-Europe on Aug 7, Standard & Poor's Ratings
Services affirmed its 'BB-' long-term corporate credit rating on
Pyaterochka Holding N.V., the owner of Russia's largest grocery
retail network.

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

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

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


SHARYPOVSKAYA KNITTING: D. Glushkov to Manage Assets
----------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Mr. D.
Glushkov as Insolvency Manager for CJSC Sharypovskaya Knitting
Factory.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-6143/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Sharypovskaya Knitting Factory
         2nd Location 14
         Sharypova
         632313 Krasnoyarsk Region
         Russia


SIBERIAN TRADING: Court Names L. Sitkina as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region appointed Ms. L.
Sitkina as Insolvency Manager for LLC Siberian Trading Company.  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-7241/2006.

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         LLC Siberian Trading Company
         Divnogorsk
         Krasnoyarsk Region
         Russia


TATNEFT OAO: Taps PwC to Audit U.S. GAAP Financial Statements
-------------------------------------------------------------
OAO Tatneft (LSE: ATAD; NYSE: TNT) disclosed that its financial
statements for the year ended Dec. 31, 2005, prepared in
accordance with U.S. accounting principles, are being audited by
ZAO PricewaterhouseCoopers Audit.

As previously reported, the Company expects to publish its 2005
U.S. GAAP financial statements and file its annual report on
Form 20-F for 2005 with the U.S. Securities and Exchange
Commission, as well as releasing its unaudited U.S. GAAP
financial statements for the first half of 2006 in first quarter
2006.  The Company is to announce a more detailed timetable for
finalizing its 2005 U.S. GAAP financial statements, the filing
of its 2005 20-F and the publication of its unaudited U.S. GAAP
financial statements for the first half of 2006 by the end of
August this year.

The decision to engage PwC was made following a review by the
Company of its work with external auditors and consultants
relating to the preparation of the Company's financial
statements under U.S. GAAP and discussions between the Company
and the auditors of its U.S. GAAP financial statements for
previous years.  The Company's U.S. GAAP financial statements
for the years ended December 31, 2003 and 2004 respectively,
were audited by Ernst & Young, and the Company's U.S. GAAP
financial statements for periods prior to that were audited by
PwC.

                      Stock Delisting

As previously disclosed, the Company intends to delist its
securities from the New York Stock Exchange and, when
circumstances permit, to deregister from the U.S. Securities and
Exchange Commission.  At the same time, the Company reinforces
its commitment to strong corporate governance practices and
adherence to regular disclosure about the Company's financial
position and operations pursuant to recognized international
standards and regulatory requirements (including those of the
U.K. Listing Authority in connection with the listing of the
Company's securities on the London Stock Exchange).

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

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

                        *     *     *

As reported in TCR-Europe on Aug. 7, Fitch Ratings changed
Tatarstan-based Tatneft's Outlook to Positive from Stable.  It's
Issuer Default and Short-term ratings are affirmed at B.

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


VNESHTORGBANK: Sets RUB17 Billion Lending Limit for Avtovaz
-----------------------------------------------------------
Vneshtorgbank has set on Aug. 1 a RUB17 billion lending limit
for JSC Avtovaz and its subsidiaries, in an effort to extend its
cooperation with the leading Russian carmaker.

The decision was made within the framework of a Strategic
Cooperation Agreement signed by the Bank and the enterprise in
April this year.  This allowed the parties to add new dimensions
to their partnership in all areas of financial activity.

The limit set will enable AVTOVAZ to exploit VTB's wide
capacities in financing current and investment demands of the
enterprise, as well as its export-import operations, which
include raising foreign funds and applying the whole spectrum of
instruments accepted in the international banking practice.  
Within this limit, the carmaker will be able to raise funds
maturing in seven years, and part of the operations can be
implemented without any security provided.  Also, the Bank will
continue trading in AVTOVAZ securities and performing its
Treasury operations.

Cooperation between the Bank and the largest Russian carmaker
started back in 2002.  Last year, a number of operations were
implemented, including the financing of equipment imports for
AVTOVAZ.  Additionally, during the years 2003 - 2005, VTB acted
as an arranger for three of the enterprises bond issues totaling
RUB9 billion. In April, when the Agreement was signed, the
credit limit set by VTB for AVTOVAZ and its subsidiaries was
RUB5 billion.

                      About the Company

Headquartered in Moscow, Russia, JSC Vneshtorgbank and its
subsidiaries are a leading Russian commercial banking group,
offering a wide range of banking services and conducting
operations in both Russian and international markets.  As of
Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions.  The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.

At the beginning of 2006, VTB purchased a 98% stake in the Bank
Mriya located in Ukraine.  VTB has operated under a full banking
License No. 1000 from the Central Bank of the Russian Federation
since 1990.  With 23,145 employees as of Dec. 31, 2005, the
Group operates in the commercial banking sector including
deposit taking and commercial lending, support of clients'
export/import transactions, foreign exchange, securities
trading, and trading in derivative financial instruments.  The
Government of the Russian Federation is the main shareholder of
VTB and owns through the Federal Property Management Agency
99.9% of its registered share capital.  

                        *     *     *

As reported in TCR-Europe on July 31, Following the recent
upgrade of the Russian sovereign foreign and local currency IDRs
to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and
Vnesheconombank ratings at:

Vnesheconombank:

   -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and
   -- Short-term upgraded to F2 from F3, Support affirmed at 2.

Vneshtorgbank:

   -- Upgraded to foreign currency and local currency IDR BBB+
      from BBB with a Stable Outlook;

   -- Short-term upgraded to F2 from F3;

   -- Individual affirmed at C/D; and

   -- Support affirmed at 2.


WORLD OF FABRICS: Court Names O. Zinina as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Moscow appointed Ms. O. Zinina as
Insolvency Manager for CJSC World of Fabrics.  She can be
reached at:

         O. Zinina
         Post User Box 56
         5 Avgusta Str. 54
         302004 Orel Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-11720/06-86-16b.

The Debtor can be reached at:

         CJSC World of Fabrics
         Building 1
         Sherbakova Str. 40-42
         105187 Moscow Region
         Russia


YAMAL-GAS-STROY-INVEST: Court Names V. Opryshko to Manage Assets
----------------------------------------------------------------
The Arbitration Court of Yamalo-Nenetskiy Autonomous Region
appointed Mr. V. Opryshko as Insolvency Manager for CJSC Yamal-
Gas-Stroy-Invest (TIN 8903019543).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A81-1546/2005.

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

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

The Debtor can be reached at:

         CJSC Yamal-Gas-Stroy-Invest
         Danily Zvereva Str. 516
         Nadym
         Yamalo-Nenetskiy Autonomous Region


YUKOS OIL: Court Reduces Yugansk Claim to US$770 Million
--------------------------------------------------------
The Moscow Arbitration Court has reduced Yuganskneftegaz's claim
against OAO Yukos Oil Co. from US$5.2 billion to US$770 million,
RIA Novosti reports.

Yugansk, the former core production unit of Yukos, was bought by
state-owned Rosneft in December 2004 after the Russian
government seized the asset as payment for more than US$30
billion in tax arrears for 2000-2003.  Yukos, declared bankrupt
last week, retains a stake in Yugansk.

According to the Russian news agency, Rosneft will likely
purchase Yukos's assets in its upcoming liquidation.

The court's decision follows a ruling in May to substantially
cut the tax claims against Yugansk for the 1999-2003 period, RIA
relates.

The arbitration court will reconvene a hearing tomorrow,
Aug. 10, to consider the claims against Yukos.  

Yukos creditors listed in the claims register include:

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

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

                           About Yukos

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

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

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

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

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

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


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


ALTERNATIFBANK A.S.: Fitch Keeps IDR at B+ with Outlook Positive
----------------------------------------------------------------
Fitch Ratings changed the Outlook on Turkey-based Alternatifbank
A.S.'s foreign and local currency Issuer Default ratings and
National Long-term rating to Positive from Stable.  Its foreign
and local currency Issuer Default ratings are affirmed B+ and
National Long-term rating at BBB+.  Other ratings are affirmed
at Short-term foreign and local currency B, Individual D and
Support 4.

The change in Outlook to Positive reflects the prospect of a
higher probability of support from its majority shareholder the
Anadolu Group, should its subsidiaries, Anadolu Efes Biracilik
ve Malt Sanayii A.S. ("Efes") and Coca-Cola Icecek ("CCI"), be
upgraded.  

Although Fitch does not rate the Anadolu Group, its opinion on
the support is based on its ratings on the group subsidiaries
Efes and CCI.  There is a possible upgrade for these
subsidiaries' ratings (both at foreign currency IDRs BB- with
Positive Outlook), which could result in a higher Support rating
for ABank and hence higher IDR and Long-term rating.

In the event of financial difficulties, ABank's primary source
of support would be the Anadolu Group.  While Fitch recognizes
that Anadolu Group has a high propensity to support, its ability
to do so is limited because Efes' and CCI's foreign currency
IDRs are capped by the BB- foreign currency IDR rating of
Turkey.

The Individual rating reflects the risks related to ABank's
rapid loan growth in a potentially volatile operating
environment, potential impact of concentrated loan portfolio on
asset quality and a limited franchise.  These are balanced by
its adequate capitalization, improved efficiency and better
profitability.

The recent volatility in the Turkish financial markets,
including higher interest rates and depreciation of the Turkish
Lira, is unlikely to adversely affect ABank's ratings.  In the
medium term, upside to the Individual rating and the IDRs could
come from further improvements in asset quality, decreasing
concentration of the loan portfolio, strengthening of its
franchise and sustained profitability.  

Downside to the Individual rating and the IDRs could come from a
major and persistent deterioration in the Turkish economy
resulting in widespread asset quality problems.

ABank is a lower mid-sized bank mainly focused on small and
medium-sized enterprises.  It has 26 branches at end-2005.  
ABank is majority-owned by the Anadolu Group; the remaining 5%
of the shares were publicly held at end-2005.  

The Anadolu Group has interests in beverages, bottling, brewing,
food, automotive manufacturing and distribution, consumer
durables, stationery, packaging, tourism, health and financial
services through several joint ventures with international
companies.

In 2005 the Anadolu Group's total turnover, excluding the
finance sector, was US$2.9 billion (2004: US$2.3 billion, 70% of
which was generated by beverages).


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


AGROUKRTORG: Court Names O. Sherban as Insolvency Manager
---------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. O. Sherban as
Liquidator/Insolvency Manager for LLC Agroukrtorg (code EDRPOU
33149647).  He can be reached at:

         O. Sherban
         a/b 157
         01030 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 17.  The case is docketed
under Case No. 23/128-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 Agroukrtorg
         Obolonskij Avenue 23-a
         04205 Kyiv Region
         Ukraine


BOKAR INVEST: Court Names L. Misukevich as Liquidator
-----------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. L. Misukevich as
Liquidator/Insolvency Manager for LLC Bokar Invest (code EDRPOU
32101946).  He can be reached at:

         L. Misukevich
         Gagarin Str. 7
         Makariv
         08000 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 19.  The case is docketed
under Case No. 194/2b-2006.

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 Bokar Invest
         Kiyivska Str. 109
         Kalinivka
         Makariv District
         08004 Kyiv Region
         Ukraine


CHIGIRINENERGOBUDTRANS: Mikola Zanko to Manage Assets
-----------------------------------------------------
The Economic Court of Cherkassy Region appointed Mikola Zanko as
Liquidator/Insolvency Manager for OJSC Chigirinenergobudtrans
(code EDRPOU 21356221).  He can be reached at:

         Mikola Zanko
         Dnipra Str. 81/409
         Geroiv
         18021 Cherkassy Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 21.  The case is docketed
under Case No. 01/1379.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         OJSC Chigirinenergobudtrans
         Vitove
         Chigirin District
         Cherkassy Region
         Ukraine


KRASNOPEREKOPSKIJ BREAD: Volodimir Bida to Liquidate Assets
-----------------------------------------------------------
The Economic Court of AR Krym Region appointed Volodimir Bida as
Liquidator/Insolvency Manager for Krasnoperekopskij Bread
Products Combine (code EDRPOU 31728055).  He can be reached at:

         Volodimir Bida
         Rudnikova Str. 8
         Simferopol
         95023 AR Krym Region

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 6.  The case is docketed
under Case No. 2-5/10148-2006.

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:

         Krasnoperekopskij Bread Products Combine
         Elevatorna str.
         Pochetne
         Krasnoperekopskij District
         AR Krym Region
         Ukraine
         

LUBASHIVKA' AGRICULTURAL: Dmitro Abmayev to Manage Assets
---------------------------------------------------------
The Economic Court of Odessa Region appointed Dmitro Abmayev as
Liquidator/Insolvency Manager for OJSC Lubashivka' Agricultural
Machine-Technological Station (code EDRPOU 30084451).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 6.  The case is docketed
under Case No. 2/44-05-1371.

The Economic Court of Odessa Region is located at:

         Shevchenko Avenue 4
         65032 Odessa Region
         Ukraine

The Debtor can be reached at:

         OJSC Lubashivka' Agricultural
         Machine-Technological Station
         Zavokzalna Str. 10
         Lubashivka
         66500 Odessa Region
         Ukraine


ENERGO-ROST: Kyiv Court Names I. Zolochinska as Liquidator
----------------------------------------------------------
The Economic Court of Kyiv Region appointed Ms. I. Zolochinska
as Liquidator/Insolvency Manager for LLC ENERGO-ROST (code
EDRPOU 33149254).  She can be reached at:

         I. Zolochinska
         Bratislavska Str. 14-b
         02256 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 9.  The case is docketed
under Case No. 43/361.

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 Energo-Rost
         Bratislavska Str. 14-b
         02256 Kyiv Region
         Ukraine


NAFTA-TRADE: Kyiv Court Names Igor Kapelushnij as Liquidator
------------------------------------------------------------
The Economic Court of Kyiv Region appointed Igor Kapelushnij as
Liquidator/Insolvency Manager for LLC Nafta-Trade (code EDRPOU
32153708).  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 27.  The case is docketed
under Case No. 23/288-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 Nafta-Trade
         Melnikov Str. 81
         04050 Kyiv Region
         Ukraine


NAFTOTRADER: Court Names Igor Kapelushnij as Liquidator
-------------------------------------------------------
The Economic Court of Kyiv Region appointed for LLC Igor
Kapelushnij as Liquidator/Insolvency Manager Naftotrader (code
EDRPOU 31812529).  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. 23/280-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 Naftotrader
         Klovskij uzviz Str. 18
         01021 Kyiv Region
         Ukraine


PRESTO: Kyiv Court Names O. Sherban as Insolvency Manager
---------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. O. Sherban as
Liquidator/Insolvency Manager for LLC Presto (code EDRPOU
31810427).  He can be reached at:

         O. Sherban
         a/b 157
         01030 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 13.  The case is docketed
under Case No. 23/261-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 Presto
         Sklyarenko Str. 5
         04073 Kyiv Region
         Ukraine


PIVDENNA: Court Names Sergij Zhukov as Insolvency Manager
---------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Sergij
Zhukov as Liquidator/Insolvency Manager for OJSC Bird Factory
Pivdenna (code EDRPOU 01529398).  He can be reached at:

         Sergij Zhukov
         a/b 3422
         49055 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on March 3.  The case is docketed
under Case No. B 15/144/05.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Bird Factory Pivdenna
         Yuzhnoye
         Nikopol District
         Dnipropetrovsk Region
         Ukraine


RADOPS: Kyiv Court Names D. Shapovalenko as Liquidator
------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. D. Shapovalenko
as Liquidator/Insolvency Manager for LLC RADOPS (code EDRPOU
33833839).  He can be reached at:

         D. Shapovalenko
         Pestel Str. 11
         01135 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 9.  The case is docketed
under Case No. 43/362.

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 Radops
         Pestel Str. 11
         01135 Kyiv Region
         Ukraine


REAL: Cherkassy Court Names Mikola Zanko as Insolvency Manager
--------------------------------------------------------------
The Economic Court of Cherkassy Region appointed Mikola Zanko as
Liquidator/Insolvency Manager for LLC Real (code EDRPOU
31653742).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
14/2105.

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         LLC Real
         Radyanska Str. 21
         Chigirin
         Cherkassy Region
         Ukraine


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


AFOS LIMITED: Five Arrows Hires Receivers from Tenon Recovery
-------------------------------------------------------------
Five Arrows Commercial Finance appointed Christopher Ratten and
Martin Shaw of Tenon Recovery joint administrative receivers of
AFOS Limited (Company Number 03659057) on July 27.

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

Headquartered in Kingswood, United Kingdom, AFOS Limited --
http://www.afosgroup.com/-- manufactures stainless steel  
equipments for the medical and food industries.


APPLETREE COTTAGE: Names Administrators from Begbies Traynor
------------------------------------------------------------
D. F. Wilson and J. N. R. Pitts of Begbies Traynor were
appointed joint administrators of Appletree Cottage Limited
(Company Number 02680366), Cottage Industries Limited (Company
Number 03243552) and Candy Cottage Limited (Company Number
03192076) on July 3.

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

Headquartered in Bradford, United Kingdom, Appletree Cottage
Limited, Cottage Industries Limited and Candy Cottage Limited --
http://www.cottageindustries.co.uk/-- is engaged in  
manufacturing confectionery and printing greeting cards.


APW ELECTRONICS: Royal Bank of Scotland Appoints Kroll Receivers
----------------------------------------------------------------
The Royal Bank of Scotland PLC appointed Andrew J. Pepper and
Alastair P. Beveridge of Kroll Limited joint administrative
receivers of APW Electronics Limited (Company Number 00701364)
and APW Enclosure Systems Limited (Company Number 00098900) on
July 26.

Headquartered in London, United Kingdom, Kroll Limited --
http://www.krollworldwide.com/-- offers risk-consulting  
services worldwide.  The firm is an operating unit of Marsh &
McLennan Companies, Inc., the global professional services firm.  
Kroll's services include corporate advisory and restructuring,
financial accounting, valuation and litigation, electronic
evidence and data recovery, business intelligence and
investigations, background screening, and security services.

Headquartered in Warwickshire, United Kingdom, APW Electronics
Limited and APW Enclosure Systems Limited is engaged in
engineering and manufacturing electronic equipments.


ATMEL CORP: Steven Laub Replaces George Perlegos as CEO
-------------------------------------------------------
Atmel Corp.'s Board of Directors, by unanimous vote of the
independent directors, has appointed Steven Laub, currently a
director of Atmel and a 15-year industry veteran, as the
Company's President and Chief Executive Officer, effective
immediately.

Mr. Laub's appointment follows the unanimous decision of the
Board's independent directors to terminate:

   -- George Perlegos, as:

      * President, and
      * Chief Executive Officer;

   -- Gust Perlegos, as:

     * Executive Vice President, Office of the President;

     * the Vice President and General Counsel and Assistant
       Secretary; and

     * the Vice President of Planning and Information
       Technology.

The Board's decision was made following an independent
investigation into allegations regarding the misuse of corporate
travel funds.  Messrs. George Perlegos and Gust Perlegos have
been asked to resign as directors of the Company.

"We are pleased that Steve will share his knowledge and
significant strategic planning, operating, and financial
experience with our Company," said David Sugishita, director and
newly appointed Non-executive Chairman of the Board of Atmel.  
"As a director, Steve is already familiar with Atmel's business
and has an appreciation of our Company's strengths and its
dedicated employees.  His appointment, together with the strong
engineering, sales and marketing teams in place and our more
than 8,000 employees worldwide, provide the guidance and
stability Atmel needs to successfully manage through this period
of change and build on the Company's strong operating
foundation."

"I am honored that the Board has selected me to lead Atmel," Mr.
Laub said.  "T[he] actions do not detract from our commitment to
the superior service and innovative technology that has set
Atmel apart for more than 20 years.  We understand the
challenges ahead and are committed to successfully addressing
them.  Atmel's solid operating performance demonstrates that
Atmel's customers have confidence in our Company, our people and
our products."

"Thanks to the hard work and dedication of Atmel's employees,
our base business remains sound," said Robert Avery, Atmel's
Vice President Finance and Chief Financial Officer.  "We have
introduced a number of new products over the past few months
that we believe will help us maintain this positive momentum.  
We are also making progress on our efforts to refocus on high-
growth markets, lower costs and improve efficiencies.  By
staying focused on our goals, we are confident that Atmel will
continue capturing the opportunities in our marketplace."

Mr. Laub, 47, has served as a director of Atmel since Feb. 10,
2006.  He most recently was a technology partner at Golden Gate
Capital Corporation, a private equity buyout firm, and the
Executive Chairman of Teridian Semiconductor Corporation, a
fabless semiconductor company.  From 2004 to 2005, Mr. Laub was
President and Chief Executive Officer of Silicon Image, Inc., a
provider of semiconductor solutions.  Prior to that time, Mr.
Laub spent 13 years in executive positions (including President,
Chief Operating Officer and member of the Board of Directors) at
Lattice Semiconductor Corporation, a supplier of programmable
logic devices and related software.  Prior to joining Lattice
Semiconductor, Mr. Laub was a partner at Bain and Company, a
global strategic consulting firm.  Mr. Laub holds a degree in
economics from the University of California, Los Angeles (BA)
and a degree from Harvard Law School (JD).

Atmel said the disclosure is unrelated to the Company's July 25,
2006 announcement that the Board's Audit Committee, together
with independent legal counsel and independent accounting
consultants, is conducting an investigation regarding the timing
of past stock option grants and other potentially related
issues.  The Audit Committee's investigation is ongoing and, as
previously announced, the Company does not expect the
investigation to be completed prior to the due date for the
Company's second-quarter Form 10-Q, Aug. 9, 2006, or the
extended due date of Aug. 14, 2006.  Atmel executives will
refrain from commenting further on this matter until the
independent investigation is concluded.

                          About Atmel

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

                          *     *     *

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


COMMUNICATIONS COMPLETE: Joint Liquidators Take Over Operations
---------------------------------------------------------------
Neil Henry and Michael Simister of Lines Henry were appointed
Joint Liquidators of Communications Complete Limited at an
extraordinary general meeting of members on May 11.

The company can be reached at:

         Communications Complete Limited
    125 High Street
    Weston-Super-Mare
    Avon BS231HN
    United Kingdom
    Tel: 0870 050 5988


COUNTRYMAN JOHN: Taps Andrew Rosler to Liquidate Assets
-------------------------------------------------------
Andrew Rosler of Ideal Corporate Solutions Limited was appointed
Liquidator of Countryman John & Co. Limited on May 9.

The company can be reached at:

         Countryman John & Co. Limited
    The Rural Workshops
    Lake Road
    Coniston
    Cumbria LA218EW
    United Kingdom
    Tel: 015394 411 29
    Fax: 015394 411 29
    Web: http://www.countrymanjohn.co.uk/


CRYSTAL TRANSPORT: Creditors' Meeting Slated for August 15
----------------------------------------------------------
Creditors of Crystal Transport Services Limited (Company Number
04404989) will meet at 11:30 a.m. on Aug. 15 at:

         25 Harley Street
         London W1G 9BR
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on Aug. 14 at:

         Bernard Hoffman and Ian Douglas Yerrill
         Joint Administrators
         Gerald Edelman
         Suite 2
         Kent House
         Station Road
         Ashford
         Kent TN23 1PP
         United Kingdom
         Tel: 01233 666 280
         Fax: 01233 666 281

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


E.J. WHITE: Creditors' Meeting Slated for August 16
---------------------------------------------------
Creditors of E.J. WHITE & SON LIMITED (Company Number 02463666)
will meet at 11:00 a.m. on Aug. 16 at:

         67 Butts Green Road
         Hornchurch
         Essex RM11 2JX
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on Aug. 15 at:

         J.S. French and G. Mummery
         Joint Administrators
         Vantis Redhead French
         43-45 Butts Green Road
         Hornchurch
         Essex RM11 2JX
         United Kingdom
         Tel: 01708 458211
         Fax: 01708 442308


FARRINGDON MORTGAGES: Fitch Affirms GBP3.13-Mln Class B2a at B
--------------------------------------------------------------
Fitch Ratings affirmed all tranches of Farringdon Mortgages No.
1 PLC (FM1) and Farringdon Mortgages No. 2 PLC (FM2).  Both
transactions are originated by Rooftop Mortgages Limited, a
subsidiary of Bear Stearns Companies Inc. (rated A+/F1+), and
had been the subject of a renewed full loan-by-loan and cash
flow analysis.  

Farringdon Mortgages No. 1 PLC:

   -- GBP18.67 million Class A1a (ISIN XS0211289961) and
      A1a DAC (ISIN XS0211293138) affirmed at AAA;

   -- GBP50 million Class A2a (ISIN XS0211295778) and
      A2a DAC (ISIN XS0211296313) affirmed at AAA;

   -- GBP17.5 million Class M2a (ISIN XS0211300362) affirmed at     
      A-;

   -- GBP4.38 million Class B1a (ISIN XS0211301766) affirmed at
      BBB-;

   -- GBP3.13 million Class B2a (ISIN XS0211303382) affirmed at
      B; and

   -- MERCS (ISIN XS0211306641) affirmed at AAA.

Farringdon Mortgages No. 2 PLC:

   -- GBP65.99 million Class A1a (ISIN XS0228709043) and
      A1a DAC (ISIN XS0228709555) affirmed at AAA;

   -- GBP84 million Class A2a (ISIN XS0228709985) and
      A2a DAC (ISIN XS0228710561) affirmed at AAA;

   -- GBP23.5 million Class M2a (ISIN XS0228711882) affirmed at
      A;
   
   -- GBP7.4 million Class B1a (ISIN XS0228712260) affirmed at
      BBB;

   -- GBP5.1 million Class B2a (ISIN XS0228712930) affirmed at   
      BB; and

   -- MERCS (ISIN XS0228713235) affirmed at AAA.

Following the second reserve fund draw in FM1 on the July
interest payment date ("IPD"), Fitch has remodeled both
transactions issued by RML.  The remodeling exercise shows that
credit enhancement is sufficient to support the ratings of all
tranches at their current levels.  While the ratings have been
affirmed, Fitch notes there remains potential for future
drawings in both transactions when further losses are realized.

The underlying collateral in both deals include a substantially
higher proportion of heavy adverse credit borrowers compared to
other U.K. non-conforming transactions in the market today.  The
relatively high exposure to loans that Fitch considers to be key
drivers of default was reflected in the initial credit
enhancement levels.  

RML no longer offers heavy adverse products at higher loan-to-
value categories.  However, this does not affect the performance
of FM1 or FM2, which already contain exposure to these loans.

In FM1, the three months plus arrears position including
repossessions, improved to 18.73% of the outstanding portfolio
at the July IPD (19.47% the previous quarter).  However, there
has been an increase in cases where these arrears have passed
from being in possession to being sold and, which therefore exit
the three months plus arrears category.

Cumulative sold repossession cases now account for 3.78% of the
initial portfolio balance, versus 1.33% at the time of the first
reserve fund draw, in April 2006.  As arrears cases are now
exiting the portfolio through repossession and sale, Fitch has
conducted further analysis on these cases, in particular where a
loss has crystallized.

Higher loss severities have been experienced predominantly in
London and its surrounding areas, with 13 of the 15 properties
to realize a loss this quarter located in this region.  The
largest loss severity seen to date is 26.72%.  

Unsurprisingly, the largest loss severities are at the higher
end of the LTV bracket, with nine of the 15 having LTVs in
excess of 85%.  To date, the overall FM1 loss severity for
repossessed cases is 9.84%.  Average loss severities remain
below loss severity assumptions for the lowest rated note
category of B.  Cumulative principal loss at the July IPD
accounted for 0.53% of the initial portfolio.

FM2, while less seasoned than the first transaction at 13.53
months, is following the same trend.  With over 50% of the
serious arrears and unsold repossessed cases secured on
properties in or around the London region, Fitch expects to see
further losses crystallized in the coming quarters.

Currently, cumulative loss on the total portfolio is low at
0.04% of the initial portfolio, but there are still a number of
properties in possession, which are expected to progress to
sale.  Out of the 11 properties currently in possession, six are
located in or around the London region.  House price increases
in London in the last few months may potentially lead to
relatively higher recovery prospects and lower loss severities
for London properties currently in possession.

Prepayment rates are rising in both transactions.  In FM1, the
rate increased to 41.12% from 27.92% in the previous quarter,
while FM2's increased to 15.67% from 8.8%.  The FM1 rate is
expected to remain high as those borrowers who are able to
refinance do so at more attractive rates, while serious arrears
cases get pushed to repossession and sale.

The FM2 prepayment rate is expected to build steadily as more
borrowers see their teaser rates expire leaving them free to
refinance.  This will have a positive impact on deleveraging the
deal and building levels of CE, as well as mitigating the impact
of the high detachable coupon rates (2.59% and 2.13% in FM1 and
FM2, respectively).

Reversion to the full stabilized rate, from the discounted
margins should theoretically benefit both transactions, but
stretched affordability at the higher loan rate could cause an
increase in arrears levels for those borrowers that remain in
the pool.  Also, given that mortgage discounts for FM2 are only
fully cash collateralized for the first year, the weighted
average mortgage margin will reduce after October 2006.

As a result, future reserve fund draws may become more likely.
For FM2, the pace of build-up in the reserve fund has been
slowing steadily over previous quarters, which also points to an
increased likelihood of a future reserve draw.


FRANCESCO'S LIMITED: Names J. N. Bleazard Liquidator
----------------------------------------------------
J. N. Bleazard of XL Business Solutions Ltd. was appointed
Liquidator of Francesco's Limited on May 12 by resolutions of
members and creditors.

The company can be reached at:

         Francesco's Limited
    Viking House
    Denmark Street
    Maidenhead
    Berkshire SL6 7BN
    Tel: 01628 788645


FREEABLE PROJECTS: Appoints Halstead Bottomley as Liquidator
------------------------------------------------------------
Halstead Bottomley of Bottomley & Co. was appointed Liquidator
of Freeable Projects Limited on May 11 by resolutions of members
and creditors.

The company can be reached at:

         Freeable Projects Limited
         27 Rectory Road
    Upton-Upon-Severn
    Worcester WR8 0NB
    United Kingdom
    Tel: 01684 594 226


GAINSBOROUGH U.K.: Creditors' Meeting Slated for August 17
----------------------------------------------------------
Creditors of Gainsborough U.K. Limited (Company Number 03908222)
will meet at 10:00 a.m. on Aug. 17 at:

         Grant Thornton U.K. LLP
         Grant Thornton House
         Melton Street
         Euston Square
         London NW1 2EP
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on Aug. 16 at:

         D. R. Whiteley Smith
         Joint Administrator
         Grant Thornton U.K. LLP
         Grant Thornton House
         Melton Street
         Euston Square
         London NW1 2EP
         United Kingdom
         Tel: 020 7383 5100
         Fax: 020 7383 4715

Headquartered in London, Grant Thornton UK LLP --
http://www.grant-thornton.co.uk/-- is the UK member of Grant  
Thornton International, one of the world's leading international
organizations of independently owned and managed accounting and
consulting firms.  These firms provide a comprehensive range of
business advisory services from around 540 offices in over 110
countries worldwide.  


GENERAL MOTORS: Files Multibillion-Dollar Claim Against Delphi
--------------------------------------------------------------
General Motors Corp. has filed a multibillion-dollar claim
against Delphi Corp. on July 31, 2006, the last day for
filing proofs of claim, Bloomberg News reports.

Although details of the claim were not provided according to
Bloomberg News, a search through the Delphi document site
maintained by Kurtzman Carson Consultants LLC, Delphi's claims
agent, revealed that GM filed multiple claims against various
Delphi-entities.

One particular claim filed by GM, Frigidaire, Fisher Body
Company, and Hamilton General Motors Assembly against Delphi
Automotive Systems LLC is listed at US$6 million plus.

KCC's Delphi site is at http://www.delphidocket.com/delphi

Bloomberg News relates that GM's lawyers had stated in April
that the company would seek more than US$4 billion from Delphi.

GM recently disclosed in a regulatory filing with the Securities
and Exchange Commission that Delphi's various financial
obligations to the company include a US$951,000,000 owed by
Delphi relating to former GM employees who worked at Delphi and
were later transferred back to GM as job openings became
available to them.

GM said it may receive only a portion of the US$951,000,000
receivable because the amount may be subject to compromise in
Delphi's bankruptcy proceeding.  GM said it seek to minimize
this risk by protecting its right to set-off against the
US$1,150,000,000 it owed to Delphi as of the Petition Date.

In May 2006, GM attempted to exercise its set-off rights for
US$67,000,000.

In a notice to Delphi and the Official Committee of Unsecured
Creditors appointed in Delphi's bankruptcy cases, GM alleged
that catalytic converters Delphi supplied for certain 2001 and
2002 vehicle platforms did not conform to specifications.

Delphi said in an SEC filing that GM's warranty claims are
without merit.

                          About Delphi

Based in Troy, Mich., Delphi Corporation --
http://www.delphi.com/-- is the single largest global supplier  
of vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology.  The
Company's technology and products are present in more than 75
million vehicles on the road worldwide.  The Company filed for
chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case
No. 05-44481).  John Wm. Butler Jr., Esq., John K. Lyons, Esq.,
and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, represent the Debtors in their restructuring efforts.  
Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A.
Broude, Esq., at Latham & Watkins LLP, represents the Official
Committee of Unsecured Creditors.  As of Aug. 31, 2005, the
Debtors' balance sheet showed US$17,098,734,530 in total assets
and US$22,166,280,476 in total debts.  

                    About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the  
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                           *     *     *

As reported in the Troubled Company Reporter on April 7, 2006
Moody's Investors Service reviews for possible downgrade General
Motors Acceptance Corporation's Ba1 long-term rating and
Residential Capital Corporation's Baa3 long-term and Prime-3
short-term ratings will continue.

As reported in the Troubled Company Reporter on April 5, 2006,
Standard & Poor's Ratings Services held its ratings on General
Motors Acceptance Corp. ('BB/B-1') and on GMAC's subsidiary,
Residential Capital Corp. ('BBB-/A-3'), on CreditWatch with
developing implications.


GENERAL MOTORS: Revising Second Qtr. Financials Due to GMAC Sale
----------------------------------------------------------------
General Motors Corp. is revising its previously reported results
for the second quarter of 2006 because of a change in the
estimated tax provision relating to an expected loss on the
pending sale of 51% interest in GMAC.  Its previously reported
adjusted earnings are not affected by this change.

GM and GMAC are working with the purchasers of 51% of GMAC
equity to try to avoid any delay in closing the GMAC transaction
because of a recent moratorium by federal regulators on approval
of certain bank transactions.

On July 26, 2006, GM reported a net loss of US$3.2 billion, and
adjusted earnings, excluding special items, of US$1.2 billion, a
significant improvement from the year-ago adjusted loss of
US$231 million.

GM's reported net loss for the quarter has been increased by
US$200 million, to US$3.4 billion.  The increase in the reported
net loss is attributable to the estimated tax provision related
to the loss from the announced sale of 51% of GM's interest in
GMAC to a consortium of investors.  The previously estimated
after-tax charge of US$490 million has been increased to US$690
million as the tax provision from the GMAC transaction was
adjusted to reflect differences in book value and tax basis at
several GMAC subsidiaries.

The tax increase does not result in a current cash expense to
either GM or GMAC.  General Motors may adjust the estimated loss
on sale from the GMAC transaction each quarter until closing due
to potential changes in the other comprehensive income
adjustment, such as mark-to-market valuation, as well as other
factors.

                         FDIC Moratorium

Separately, on July 28, 2006, the Federal Deposit Insurance
Corp. disclosed a six-month moratorium on the acceptance of, or
final decisions on, notices filed under the Change in Bank
Control Act with regard to industrial loan companies.  In
connection with the GMAC transaction, the consortium and its
members have submitted such notices with respect to GMAC's ILC,
GMAC Automotive Bank.  GM and GMAC are currently evaluating the
effect of the FDIC's action on these pending notices, but it
appears that the timing of any approval of the notices is likely
to be affected by the moratorium.  Since FDIC approval of the
Change in Bank Control Act notices with regard to GMAC
Automotive Bank is a condition to closing the GMAC Transaction,
GM and GMAC are now working with the consortium to consider ways
to try to avoid delaying the targeted closing date until 2007.

                    About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the  
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                           *     *     *

As reported in the Troubled Company Reporter on April 7, 2006
Moody's Investors Service reviews for possible downgrade General
Motors Acceptance Corporation's Ba1 long-term rating and
Residential Capital Corporation's Baa3 long-term and Prime-3
short-term ratings will continue.

As reported in the Troubled Company Reporter on April 5, 2006,
Standard & Poor's Ratings Services held its ratings on General
Motors Acceptance Corp. ('BB/B-1') and on GMAC's subsidiary,
Residential Capital Corp. ('BBB-/A-3'), on CreditWatch with
developing implications.


GREYFRIARS INSURANCE: Creditors to Vote on Scheme on Oct. 27
------------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


HEATH REID: Creditors Ratify Joint Liquidators' Appointment
-----------------------------------------------------------
Creditors of Heat Reid & People Limited ratified the appointment
of Richard A. B. Saville and Peter A. Blair of Begbies Traynor
as Joint Liquidators on May 11.

The company can be reached at:

         Heath Reid & People Limited
    Flat 26 Charleston House
    Peel Street
    Nottingham NG1 4GN
    United Kingdom
    Tel: 0115 947 0025


HEDDINGTON INSURANCE: Creditors to Vote on Scheme on Oct. 27
------------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


HOTELOC PLC: Moody's Puts Low-B & Junk Debt Ratings Under Review
----------------------------------------------------------------
Moody's Investors Service placed on review for possible
downgrade all classes of notes issued by HOTELoC plc.  The Notes
are backed by one loan secured by a portfolio of 28 hotel
properties located throughout the United Kingdom.  Each of the
hotels is operated by Thistle Hotels plc.

Moody's review has been triggered by the information provided in
the July Performance Report and the Special Notice published by
Morgan Stanley Mortgage Servicing Limited on July 31 and July 17
respectively.  These reports commented on the financial
performance of the hotels and provided an update on the sale of
the assets.  In May 2005 the loan matured and the borrower
failed to make the required payment.  Since then the borrower
and the Special Servicer are working towards a sale of the
assets.

Moody's review will primarily focus on:

   -- the impact of the further deteriorating financial
performance of the hotels; and

   -- the continued delays in the disposal of the assets, taking
into account the remaining time to the legal final
maturity of the Notes.

Moody's rating action in detail (amounts reflecting current
outstandings):

   -- Class A, GBP 104,858,057, Floating Rate Notes, due May
2007: Aaa on review for possible downgrade;

   -- Class B, GBP 100,000,000, Floating Rate Notes, due May
2007: Aa3 on review for possible downgrade;

   -- Class C, GBP 43,000,000, Floating Rate Notes, due May   
2007: Baa2 on review for possible downgrade;

   -- Class D, GBP 88,000,000, Floating Rate Notes, due May
2007: B2 on review for possible downgrade;

   -- Class E1, GBP 35,000,000, Floating Rate Notes, due May
2007: Caa3 on review for possible downgrade;

   -- Class E2, GBP 8,000,000, Floating Rate Notes, due May
2007: Caa3 on review for possible downgrade; and

   -- Class E3, US$ 26,557,000, Floating Rate Notes, due May
2007: Caa3 on review for possible downgrade.


J ROGERSON: Claims Filing Period Ends Oct. 10
---------------------------------------------
Creditors of J Rogerson (Cobridge) Limited have until Oct. 10 to
send in full particulars of their debts or claims, and the names
and addresses of the Solicitors (if any), to appointed
Liquidator Michael Francis McCarthy at:

         Michael Francis McCarthy
    Walletts Insolvency Services
    2-6 Adventure Place
    Hanley
    Stoke-on-Trent ST1 3AF
    United Kingdom

The company can be reached at:

         J Rogerson(Cobridge) Limited
         182 Leek New Road
         Stoke-on-Trent ST6 2LX
         United Kingdom
         Tel: 01782 525 809


LUEGO SPORTS: Hires Joints Liquidators from Elwell Watchorn
-----------------------------------------------------------
Graham Stuart Wolloff and Richard John Elwell of Elwell Watchorn
& Saxton LLP were appointed Joint Liquidators of Luego Sports
Cars Limited on May 12.

The company can be reached at:

         Luego Sports Cars Limited
    Longlands Farm
    Ugg Mere Ct Road
    Ramsey
    Huntingdon
    Cambridgeshire PE262RQ
    United Kingdom
    Tel: 01487 815 643
    Fax: 01487 815 643
    Web: http://www.luegosportscars.com/


M & R TRANSPORT: Names Joint Administrators from Menzies
--------------------------------------------------------
Paul David Williams and Andrew Gordon Stoneman of Menzies
Corporate Restructuring were appointed joint administrators of M
& R Transport Limited (Company Number 01582836) on July 6.

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.

M & R Transport Limited can be reached at:

         Manor Farm
         Whitwick Green Road
         Thurleigh
         Bedford MK44 2DE
         United Kingdom
         Tel: 01234 771 081
         Fax: 01234 772 211


MASON & SONS: Asher Miller Leads Liquidation Procedure
------------------------------------------------------
Asher Miller of David Rubin & Partners was appointed Liquidator
of Mason & Sons (Roofing With Care) Limited on May 10 after
creditors decided to wind up the company.

The company can be reached at:

         Mason & Sons (Roofing With Care) Limited
    136 Godstone Road
    Whyteleafe
    Surrey CR3 0EB
    United Kingdom
    Fax: 020 8660 6185


MITSUI SUMITOMO: Creditors to Vote on Scheme on Oct. 27
-------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


OCEAN MARINE: Creditors to Vote on Scheme on Oct. 27
----------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake Insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


OFFICE & EDUCATIONAL: Nominates Liquidator from T.H. Associates
---------------------------------------------------------------
Timothy Hargreaves of T.H. Associates was nominated Liquidator
of Office & Educational Solutions Limited at an extraordinary
general meeting of members on May 12.

The company can be reached at:

         Office & Educational Solutions Limited
         158 Liverpool Road North
         Liverpool L31 2HP
    United Kingdom
    Tel: 0151 531 1431
    Fax: 0151 531 1432


ORANGE VISION: Creditors Confirm Liquidator's Appointment
---------------------------------------------------------
Creditors of Orange Vision Limited confirmed the appointment of
Roderick Graham Butcher of Butcher Woods as Liquidator on
May 10.

The company can be reached at:

         Orange Vision Limited
    Georgian Mews
    Bird Street
    Lichfield
    Staffordshire WS136PR
    United Kingdom
    Tel: 0845 458 7379


OSLO REINSURANCE: Creditors to Vote on Scheme on Oct. 27
--------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


PHOENIX LASER: Creditors' Meeting Slated for August 16
------------------------------------------------------
Creditors of Phoenix Laser Press Limited (Company Number
02093030) will meet at 11:00 a.m. on Aug. 16 at:

         Connaught House
         Alexandra Terrace
         Guildford
         Surrey GU1 3DA
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on Aug. 15 at:

         D. B. Coakley
         Joint Administrator
         BDO Stoy Hayward LLP
         Connaught House
         Alexandra Terrace
         Guildford
         Surrey GU1 3DA
         United Kingdom
         Tel: 01483 565666
         Fax: 01483 531306

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


RANGOLD RESOURCES: Pretoria Court Grants Final Liquidation Order
----------------------------------------------------------------
The Pretoria High Court granted on Aug. 2 a final order of
liquidation against MDM Ferroman (Pty) Limited, formerly the
main contractor for the plant at Randgold Resources' new mine at
Loulo in Mali.  The application for the order had been brought
by Randgold Resources' subsidiary, Societe des Mines de Loulo
(Somilo).

In December 2005, Somilo took back the Loulo project from MDM on
the grounds that MDM had defaulted on the contract.  The plant
has since been substantially completed by a Randgold Resources
team.

Dr. Mark Bristow, chief executive of Randgold Resources and
chairman of Somilo, welcomed the judgment and said the granting
of the final liquidation order opened the way for the company to
proceed with additional claims against MDM for amounts owed.  He
said as MDM's chief creditor, Somilo would request the
liquidators to convene a full enquiry into MDM's financial
affairs and the conduct of its directors.

                  About Rangold Resources

Headquartered in St. Helier, Chanel Islands, Randgold Resources
Limited -- http://www.randgold.co.za/-- engages in the  
exploration, mining, and development of gold deposits in Sub-
Saharan Africa.  It owns interests in the Morila mine in Mali,
as well as in the Somilo, the Yalea, and Loulo deposits.  As of
December 31, 2005, the company had proven and probable reserves
of approximately 5.42 million ounces of gold.


REFCO INC: Court Okays Stipulations on Lease-Decision Period
------------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York approves two stipulations
extending the time for Albert Togut, the Chapter 7 trustee
overseeing the liquidation of Refco, LLC's estate, to assume or
reject unexpired nonresidential real property leases.

Refco LLC leases a real property located at 1080 Indiantown
Road, Unit 200, in Jupiter, Florida, under an Oct. 22, 2004,
agreement with Cardi Corp.

Pursuant to their stipulation, Cardi agrees to extend the Refco
LLC Trustee's lease decision deadline until Sept. 30, 2006.  If
the Refco LLC Trustee is still undecided by that time, he will
be deemed to have rejected the Lease effective September 30.

Refco LLC also leases a real property located at 811 East Plaza
Drive, in Carroll, Iowa, under a March 31, 2004, agreement with
Vision Incorporated.

Vision agrees to extend Mr. Togut's lease decision deadline
until Aug. 31, 2006.  If the Refco LLC Trustee won't assume the
Lease on or before Aug. 31, the lease will be deemed rejected on
that day.

Mr. Togut says he will continue to timely perform all
obligations under the Cardi and Vision Leases prior to the
Rejection Date to the extent required under Section 365(d)(3) of
the Bankruptcy Code, including, without limitation, payment of
the full monthly rent for the Premises as required under the
terms of the Leases through and including the Rejection Date.

                     12 Leases Assigned to Man

Pursuant to separate notices filed with the Court, Mr. Togut
informs Judge Drain that he will assume and assign 12 of Refco
LLC's unexpired leases for non-residential real property to Man
Financial, Inc.

The leases relate to premises located at:

   -- 4800 Main Street, Kansas City, Missouri, Suite 231;

   -- 44 Union Blvd., Lakewood, Colorado;

   -- 400 South 4th Street, Minneapolis, Minnesota, Room 6;

   -- 400 South 4th Street, Minneapolis, Minnesota, Booth 300;

   -- 400 South 4th Street, Minneapolis, Minnesota, Booths 310
      and 320;

   -- 400 South 4th Street, Minneapolis, Minnesota, Booth 315;

   -- 400 South 4th Street, Minneapolis, Minnesota, Room 414;

   -- One North End Avenue, New York, New York, Suite 1101;

   -- One North End Avenue, New York, New York, Suite 1207;

   -- One North End Avenue, New York, New York, Suite 1223;

   -- One North End Avenue, New York, New York, Suite 1225 and;

   -- One North End Avenue, New York, New York, Suite 1304

                         About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


REFCO INC: Debtors & Trustee Tap UHY Advisors as Tax Consultants
----------------------------------------------------------------
Refco Inc., its debtor-affiliates and Marc S. Kirschner, the
court-appointed trustee for Refco Capital Markets, Ltd., seek
authority from the U.S. Bankruptcy Court for the Southern
District of New York to formally employ UHY Advisors NY, Inc.,
and its affiliated entities as their tax advisors, nunc pro tunc
to Feb. 3, 2006.

The Debtors and the RCM Trustee believe that UHY, being the 14th
largest accounting firm of tax and business consultants in the
United States with an extensive network of affiliated firms
internationally, possesses expertise and knowledge to provide
services.

According to the Debtors, UHY will perform these necessary
services:

   (a) preparation, review and filing of federal, state and
       local tax returns and any amended returns, corresponding
       schedules, related documents, including any extensions of
       time to file tax returns as well as complex technical
       analysis of various issues and formulation of
       recommendations to the Debtors and the RCM Trustee;

   (b) attendance and assistance with meetings and examinations
       with Internal Revenue Service, international or state and
       local tax authorities, the executive management team at
       Refco, Inc., the Chapter 11 and Chapter 7 trustees for
       RCM and Refco, LLC;

   (c) advice and assistance regarding transaction taxes, state
       and local sales and use taxes, and audits;

   (d) assembly and compilation of information necessary to
       prepare tax returns;

   (e) accounting, auditing and bookkeeping services;

   (f) review and assistance with any international tax-related
       issues and documents;

   (g) tax consulting and strategy services relating to several
       complex transactions;

   (h) consulting services relating to treatment of transactions
       for financial reporting purposes in accordance with GAAP;

   (i) assistance with organizing and cataloging the Debtors'
       books and records; and

   (j) performance of other tax-related services and accounting
       and audit-related services that are mutually agreed on by
       the Debtors, the Trustee and UHY.

The Debtors assure the Bankruptcy Court that UHY's services will
not result in unnecessary duplication of efforts in their
bankruptcy cases.

In accordance with an order authorizing the Debtors to employ
and compensate professionals used in ordinary course, payments
are subject to Court approval if they exceed $50,000 in any
month, or exceed an aggregate of $500,000 in the Debtors' cases.

The Debtors' payments to UHY have not exceeded these caps as of
July 14, 2006.

Under an engagement letter with the Debtors and the RCM Trustee,
UHY agreed to fix its professional fee at $400,000, along with a
$50,000 retainer, for services relating to preparation of
certain partnership and corporation tax returns.  Specific
services that are encompassed in the fixed fee are:

     Fee        Service
     ---        -------
     $150,000   New Refco Group Ltd. LLC Partnership Returns for
                short year January 1, 2005, to August 10, 2005;
                and

     $250,000   Refco Inc. Corporate Tax Returns for tax year
                starting August 11, 2005, to June 30, 2006.

The fixed fee does not include any accounting, bookkeeping or
other support services necessary to prepare the returns.

For other services, UHY's standard hourly rates range from $150
for first year staff to $550 for managing directors.  It is
UHY's policy to adjust rates periodically to reflect economic
and other conditions.

Consistent with its policy with respect to its other clients,
UHY will bill for other charges and disbursements incurred,
including costs for long distance telephone usage, photocopying,
travel, messengers, computer usage and postage.

As of July 20, 2006, UHY has received $200,000 from the Debtors.  
UHY will then apply to the Court for allowance of compensation
for professional services rendered and reimbursement of expenses
incurred in the Debtors' cases.  However, services subject to
the fixed fee arrangement will be subject to the jurisdiction
and approval of the Court and the U.S. Trustee under Section
328(a) of the Bankruptcy Code.

Michael Greenwald, managing director of UHY, attests that the
firm:

   (i) does not have any connection with the Debtors or any
       other party-in-interest;

  (ii) is a "disinterested person," as that term is defined in
       Section 101(14); and

(iii) does not hold or represent any interest adverse to the
       Debtors' estates.

                         About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


SCOTTISH RE: Posts US$123.9 Million Second Quarter Net Loss
---------------------------------------------------------------
Scottish Re Group Limited (NYSE:SCT) released its operating
results for the second quarter ended June 30, 2006.

The net loss available to ordinary shareholders for the three
months ended June 30, 2006 was US$123.9 million, as compared
with a net income available to ordinary shareholders of US$1.6
million for the prior year period.

The net loss available to ordinary shareholders for the six
months ended June 30, 2006 was US$112.3 million, as compared to
net income available to ordinary shareholders of US$35.0
million, for the prior year period.

The net operating loss available to ordinary shareholders was
US$130.3 million, for the three months ended June 30, 2006 as
compared to net operating earnings of US$19.7 million for the
prior year period.

The net operating loss available to ordinary shareholders was
US$116.0 million for the six months ended June 30, 2006, as
compared to net operating earnings of US$46.6 million for the
prior year period.

"The results for the quarter are a sharp departure from our
original projections and estimates provided to our stakeholders"
Paul Goldean, Interim Chief Executive Officer, said.  "While we
are very disappointed with the results, we believe that the core
fundamentals of the business are sound.  In fact, our mortality
experience for the quarter was in line with expectations."

The net operating loss for the second quarter was primarily
attributable to the following factors:

   -- tax expense of US$89.0 million principally related to a
      US$112.4 million valuation allowance established on
      deferred tax assets.  The valuation allowance resulted
      from revised statutory and tax projections of the Company
      combined with a reassessment of certain tax planning
      strategies;

   -- an approximate US$8.0 million reduction in premium
      accruals in North America resulting from a revision of
      estimates relating to prior periods;

   -- a deferred acquisition cost adjustment of approximately
      US$13.0 million due to higher than expected lapses on
      certain fixed annuity treaties;

   -- external retrocession and reserve adjustments of
      approximately US$21.0 million due to revisions in
      estimates resulting from improved data and systems which
      administer retrocession accounts; and

   -- severance and retirement and other non-recurring operating
      expenses of approximately US$9.0 million.

"It is important, however, to keep the loss in perspective and
to note that Scottish Re continues to have sufficient sources of
liquidity, collateral and capital to meet the near-term needs of
the business." said Dean Miller, Chief Financial Officer.  "Of
particular note is that all operating subsidiaries remain
capitalized well in excess of their minimum required levels as
prescribed by their respective Regulators."

Total revenues for the three months ended June 30, 2006
increased to US$593.6 million from US$502.0 million for the
prior year period, an increase of 18%.  Excluding realized gains
and losses and the change in value of the embedded derivatives,
total revenues for the three months ended June 30, 2006
increased to US$597.6 million from US$523.2 million for the
prior year period, an increase of 14%.

Total revenues for the six months ended June 30, 2006, increased
to US$1.17 billion from US$1.06 billion for the prior year
period, an increase of 11%.  Excluding realized gains and losses
and the change in value of the embedded derivatives, total
revenues for the six months ended June 30, 2006 increased to
US$1,179.3 million from US$1,071.0 million for the prior year
period, an increase of 10%.

Premiums earned in the three months ended June 30, 2006 were
negatively impacted by revisions to previous premium accrual
estimates of approximately US$8 million (pre-tax) and
adjustments related to retro premiums of approximately US$13
million (pre-tax).  The investment portfolio, which increased by
US$1.74 billion from the closing of the Ballantyne Re
transaction in May, continued to perform well with an average
yield of 5.5% compared to an average yield for the first quarter
2006 of 5.3%.

Total benefits and expenses increased to US$626.0 million for
the three months ended June 30, 2006 from US$508.8 million for
the prior year period, an increase of 23%.  Total benefits and
expenses increased to US$1,197.8 million for the six months
ended June 30, 2006 from US$1,032.0 million for the prior year
period, an increase of 16%.   Total benefits and expenses
exceeded estimates due to refinements in our external
retrocession reserves of approximately US$7 million (pre-tax).

In addition, an adjustment of approximately US$13 million (pre-
tax) to write-down deferred acquisition costs was made to
reflect the Company's current best estimate of lapses on certain
fixed annuity treaties.

The Company's operating expense ratio (which is the ratio of
operating expenses to total revenue excluding realized gains and
losses and the change in value of embedded derivatives) for the
six months ended June 30, 2006 was 6.0%, as compared to an
operating expense ratio of 5.0% for the year ended December 31,
2005.  Operating expenses for the quarter were negatively
impacted by severance and retirement expenses of approximately
US$5.0 million, expenses related to the International segment
expansion and various professional fees that on a combined basis
amounted to an additional US$3.0 million.

For the three months ended June 30, 2006, the Company had a pre-
tax loss of US$32.4 million before Minority Interest and
recorded an initial tax benefit of US$23.4 million on those
losses. In addition, the Company recorded a US$112.4 million
valuation allowance resulting in a total tax charge of US$89.0
million for the period.

The Company's book value per share was US$17.73 at June 30, 2006
as compared to US$21.48 per share at December 31, 2005. Fully
converted book value per share was US$19.27 at June 30, 2006 as
compared to US$21.17 at December 31, 2005.

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--  
offers reinsurance of life insurance, annuities and annuity-type
products through its operating companies in Bermuda, Charlotte,
North Carolina, Grand Cayman Dublin, Ireland, and Windsor,
United Kingdom.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities.

                           *    *    *

As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated
these rating actions:

Scottish Re Group Limited

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

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

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

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

All ratings remain on Rating Watch Negative.

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

These ratings were downgraded and remain on negative outlook:

Scottish Re Group Limited:

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

A.M. Best likewise downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  A.M. Best Co. also downgraded the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).

All FSR and debt ratings have been placed under review with
negative implications.

The FSR has been downgraded to B++ from A- and the ICRs have
been downgraded to "bbb+" from "a-" and placed under review with
negative implications for these subsidiaries of Scottish Re
Group Limited:

  -- Scottish Annuity & Life Insurance Company (Cayman) Ltd;
  -- Scottish Re (U.S.), Inc.;
  -- Scottish Re Life Corporation;
  -- Scottish Re Limited; and
  -- Orkney Re, Inc.

The ICR has been downgraded to "bb+" from "bbb-" and placed
under review with negative implications for Scottish Re Group
Limited.

These debt ratings have been downgraded and placed under review
with negative implications:

Scottish Re Group Limited

   -- "bb+" from "bbb-" on US$115 million 4.5% senior
      unsecured convertible notes, due 2022;

   -- "bb-" from "bb" on US$143 million 5.875% of hybrid
      capital units, due 2007; and

   -- "bb-" from "bb" on US$125 million non-cumulative
      preferred shares;

Stingray Pass-thru Trust

   -- "bbb+" from "a-" on US$325 million senior unsecured
      pass-thru certificates, due 2012

These indicative ratings for debt securities under the shelf
registration have been downgraded and placed under review with
negative implications:

Scottish Re Group Limited

   -- "bb-" from "bb" on preferred stock;
   -- "bb" from "bb+" on subordinated debt; and
   -- "bb+" from "bbb-" on senior unsecured debt.

Scottish Holdings Statutory Trust II and III

   -- "bb" from "bb+" on preferred securities.

Standard & Poor's Ratings Services placed its 'BBB- counterparty
credit rating on Scottish Re Group Ltd. on CreditWatch with
negative implications.  Standard & Poor's also said that it
placed its various ratings on Scottish Re's operating
subsidiaries and other related entities on CreditWatch negative.

The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and business position of the
company.


SCOTTISH RE: Names Nathan Gemmiti as General Counsel
----------------------------------------------------
Scottish Re Group Limited (NYSE:SCT) has appointed Nathan V.
Gemmiti as General Counsel.

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

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

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

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--  
offers reinsurance of life insurance, annuities and annuity-type
products through its operating companies in Bermuda, Charlotte,
North Carolina, Grand Cayman Dublin, Ireland, and Windsor,
United Kingdom.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities.

                           *    *    *

As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated
these rating actions:

Scottish Re Group Limited

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

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

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

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

All ratings remain on Rating Watch Negative.

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

These ratings were downgraded and remain on negative outlook:

Scottish Re Group Limited:

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

A.M. Best likewise downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  A.M. Best Co. also downgraded the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).

All FSR and debt ratings have been placed under review with
negative implications.

The FSR has been downgraded to B++ from A- and the ICRs have
been downgraded to "bbb+" from "a-" and placed under review with
negative implications for these subsidiaries of Scottish Re
Group Limited:

  -- Scottish Annuity & Life Insurance Company (Cayman) Ltd;
  -- Scottish Re (U.S.), Inc.;
  -- Scottish Re Life Corporation;
  -- Scottish Re Limited; and
  -- Orkney Re, Inc.

The ICR has been downgraded to "bb+" from "bbb-" and placed
under review with negative implications for Scottish Re Group
Limited.

These debt ratings have been downgraded and placed under review
with negative implications:

Scottish Re Group Limited

   -- "bb+" from "bbb-" on US$115 million 4.5% senior
      unsecured convertible notes, due 2022;

   -- "bb-" from "bb" on US$143 million 5.875% of hybrid
      capital units, due 2007; and

   -- "bb-" from "bb" on US$125 million non-cumulative
      preferred shares;

Stingray Pass-thru Trust

   -- "bbb+" from "a-" on US$325 million senior unsecured
      pass-thru certificates, due 2012

These indicative ratings for debt securities under the shelf
registration have been downgraded and placed under review with
negative implications:

Scottish Re Group Limited

   -- "bb-" from "bb" on preferred stock;
   -- "bb" from "bb+" on subordinated debt; and
   -- "bb+" from "bbb-" on senior unsecured debt.

Scottish Holdings Statutory Trust II and III

   -- "bb" from "bb+" on preferred securities.

Standard & Poor's Ratings Services placed its 'BBB- counterparty
credit rating on Scottish Re Group Ltd. on CreditWatch with
negative implications.  Standard & Poor's also said that it
placed its various ratings on Scottish Re's operating
subsidiaries and other related entities on CreditWatch negative.

The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and business position of the
company.


SCOTTISH RE: Appoints Clifford Wagner to Head North American Ops
----------------------------------------------------------------
Scottish Re Group Limited (NYSE:SCT), a global life reinsurance
specialist, discloses of the appointment Clifford R. Wagner as
Chief Executive Officer of the Company's North American
business.

Mr. Wagner has been with Scottish Re since 2000 and has served
as the Company's Executive Vice President and Chief Actuary.

"We are pleased to have an individual with Cliff's thorough
knowledge of the Company and broad experience in the life
reinsurance industry assume leadership for our North American
operation," said Paul Goldean, President and Chief Executive
Officer of Scottish Re Group Limited.

Mr. Wagner has more than 20 years insurance experience and prior
to Scottish Re, worked for TransAmerica Reinsurance Company,
Time Insurance and the Hartford Insurance Group.  Mr. Wagner
holds a B.S. degree in actuarial mathematics from the University
of Wisconsin, Madison.  He is a Fellow of the Society of
Actuaries (FSA), a Member of the American Academy of Actuaries
(MAAA) and also has earned Chartered Life Underwriter (CLU),
Chartered Financial Consultant (ChFC) and Fellow Life Management
Institute (FLMI) designations.

Mr. Wagner succeeds Seth Vance who served as Chief Executive
Officer -- North America since his appointment in April, 2004.
Mr. Vance recently resigned in lieu of reassignment within the
Company.

"Together with other important achievements, Seth was
instrumental in leading the ING integration and combining the
best of both organizations to set new standards of excellence in
our industry. We wish him success in his future endeavors," Mr.
Goldean remarked.

                        About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--  
offers reinsurance of life insurance, annuities and annuity-type
products through its operating companies in Bermuda, Charlotte,
North Carolina, Grand Cayman Dublin, Ireland, and Windsor,
United Kingdom.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities.

                           *    *    *

As reported in TCR-Europe on Aug. 7, Fitch Ratings initiated
these rating actions:

Scottish Re Group Limited

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

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

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

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

All ratings remain on Rating Watch Negative.

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

These ratings were downgraded and remain on negative outlook:

Scottish Re Group Limited:

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

A.M. Best likewise downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  A.M. Best Co. also downgraded the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).

All FSR and debt ratings have been placed under review with
negative implications.

The FSR has been downgraded to B++ from A- and the ICRs have
been downgraded to "bbb+" from "a-" and placed under review with
negative implications for these subsidiaries of Scottish Re
Group Limited:

  -- Scottish Annuity & Life Insurance Company (Cayman) Ltd;
  -- Scottish Re (U.S.), Inc.;
  -- Scottish Re Life Corporation;
  -- Scottish Re Limited; and
  -- Orkney Re, Inc.

The ICR has been downgraded to "bb+" from "bbb-" and placed
under review with negative implications for Scottish Re Group
Limited.

These debt ratings have been downgraded and placed under review
with negative implications:

Scottish Re Group Limited

   -- "bb+" from "bbb-" on US$115 million 4.5% senior
      unsecured convertible notes, due 2022;

   -- "bb-" from "bb" on US$143 million 5.875% of hybrid
      capital units, due 2007; and

   -- "bb-" from "bb" on US$125 million non-cumulative
      preferred shares;

Stingray Pass-thru Trust

   -- "bbb+" from "a-" on US$325 million senior unsecured
      pass-thru certificates, due 2012

These indicative ratings for debt securities under the shelf
registration have been downgraded and placed under review with
negative implications:

Scottish Re Group Limited

   -- "bb-" from "bb" on preferred stock;
   -- "bb" from "bb+" on subordinated debt; and
   -- "bb+" from "bbb-" on senior unsecured debt.

Scottish Holdings Statutory Trust II and III

   -- "bb" from "bb+" on preferred securities.

Standard & Poor's Ratings Services placed its 'BBB- counterparty
credit rating on Scottish Re Group Ltd. on CreditWatch with
negative implications.  Standard & Poor's also said that it
placed its various ratings on Scottish Re's operating
subsidiaries and other related entities on CreditWatch negative.

The ratings will remain on CreditWatch until the capital has
been raised and the company's strategic alternatives have been
clarified.  As a result, the ultimate ratings will depend on the
resulting capital, liquidity, and business position of the
company.


SEA INSURANCE: Creditors to Vote on Scheme on Oct. 27
-----------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake Insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


SELECT RESOURCING: Creditors' Meeting Slated for August 15
----------------------------------------------------------
Creditors of Select Resourcing Limited (Company Number 05443532)
will meet at 11:00 a.m. on Aug. 15 at:

         Twin Oaks Hotel
         Church Lane
         Palterton
         Chesterfield S44 6UZ
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on Aug. 14 at:

         Andrew T. Clay
         Administrator
         Andrew Michaels & Co. Ltd.
         Concept House
         Brooke Street
         Cleckheaton
         Bradford BD19 3RY
         United Kingdom
         Tel: 0870 750 5411
         Fax: 0870 750 5412
         E-mail: info@andrew-michaels.com


SOVEREIGN INSURANCE: Creditors to Vote on Scheme on Oct. 27
-----------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


SOVEREIGN MARINE: Creditors to Vote on Scheme on October 27
-----------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


SPHERE DRAKE: Creditors to Vote on Scheme on Oct. 27
----------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake Insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


THERMOTECH AIR: Creditors' Meeting Slated for August 11
-------------------------------------------------------
Creditors of Thermotech Air Conditioning Limited (Company Number
02934384) will meet at 10:30 a.m. on Aug. 11 at:

         Freemason Hall
         Bridge Street
         Manchester
         United Kingdom

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at 12:00 noon on Aug. 10 at:

         P. A. Flint
         Administrator
         KPMG LLP
         St. James' Square
         Manchester
         Greater Manchester M2 6DS
         United Kingdom
         Tel: 0161 838 4000
         Fax: 0161 838 4040

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


TOKIO MARINE: Creditors to Vote on Scheme on Oct. 27
----------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake Insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


WAUSAU INSURANCE: Creditors to Vote on Scheme on Oct. 27
--------------------------------------------------------
Creditors of Sovereign Marine & General Insurance Company Ltd.
and its affiliates will consider the companies' schemes of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 11 a.m. on Oct. 27.  The meeting
of creditors will be held at:

         Plaisterers Hall
         1 London Wall
         London
         EC2Y 5JU
         United Kingdom

Willis Faber (Underwriting Management) Limited ("WFUM"),
Devonport Underwriting Agency Limited and Willis Faber & Dumas
Limited formerly underwrote or managed insurance business on
behalf of a number of insurance companies.  The 16 companies
that were part of the WFUM Pools, which are proposing the Pool
Scheme, are:

   a) Sovereign Marine & General Insurance Company Ltd.
   b) Allianz Cornhill Insurance PLC
   c) Allianz Global Corporate & Specialty (France)
   d) Atlantic Mutual Insurance Co. (incorporated in New York)
   e) Greyfriars Insurance Co. Ltd.
   f) Heddington Insurance (UK) Ltd.
   g) Hibernian General Insurance Ltd. (incorporated in Ireland)
   h) Mitsui Sumitomo Reinsurance Co. (Europe) Ltd.
   i) Oslo Reinsurance Co. (UK) Ltd.
   j) Sovereign Insurance (UK) Ltd.
   k) Sphere Drake Insurance Ltd.
   l) The Ocean Marine Insurance Co. Ltd.
   m) The Sea Insurance Co. Ltd.
   n) Tokio Marine Europe Insurance Ltd.
   o) Wausau Insurance Co. (UK) Ltd.
   p) Continental Reinsurance Corp. International Ltd.
      (incorporated in Bermuda)

The High Court of England and Wales has ordered that:

   -- Sovereign Marine & General Insurance Company Ltd.;
   -- Greyfriars Insurance Company Ltd.; and
   -- Sovereign Insurance (UK) Ltd.,

must each convene a single meeting of creditors to vote on their
respective schemes:

  (a) for scheme creditors in relation to their scheme claims
      other than IBNR claims; and

  (b) for scheme creditors in relation to their IBNR claims.

Creditors holding claims falling into both of these classes will
be able to vote in each meeting either in person or via an
authorized proxy.

The proposed scheme of arrangement and other related documents
may be obtained from http://wfumpools.com/or by written request  
to the proposed scheme manager at:

         PRO Insurance Solutions Ltd.
         Attn: Toby Wooldridge
         Bruton Court
         Bruton Way
         Gloucester GL1 1DA
         United Kingdom
         Tel: +44 (0) 1452 523 426
         Fax: +44 (0) 1452 523 437
         E-mail: pro_wfumpools@pro-ltd.co.uk

The court has appointed Stephen Adamson to act as chairman of
the meetings and has directed him to report the result of the
meetings to the court.

The Scheme of Arrangement, which is a compromise or arrangement
between a company and its creditors, will become legally binding
if:

   -- a majority in number representing not less than 75% in
      value of the creditors or class of creditors present and
      voting in person or by proxy, vote in favor of the scheme
      of arrangement at a meeting or meetings convened with the
      permission of the Court; and

   -- the Court subsequently sanctions the scheme of
      arrangement; and

   -- an office copy of the order of the Court to that effect is
      delivered for registration to the Registrar of Companies.

If approved by the requisite majority of creditors, the scheme
will be subject to the subsequent approval of the court.

                About the Scheme Companies

Sovereign Marine became insolvent in 1997 and implemented a
Scheme of Arrangement in January 2000.  Under the Original
Scheme, Sovereign has continued to agree claims in the normal
course and has made scheme payments on a pro-rata basis to
creditors with "Established Scheme Liabilities".  The current
scheme payment percentage is 40%.

Sovereign has reached a point with its reinsurance collections
and asset realizations where the Scheme Administrators believe
that it is time for it and its subsidiaries to enter into a
closing Scheme.  This involves setting up a mechanism to agree
the values of claims submitted by policyholders.  The value of
these claims would then be applied to the reinsurance program.  
This would enable valuation statements to be prepared on a net
basis for policyholders who are also reinsurers.  Once these
amounts are known, Sovereign UK and Greyfriars would pay Agreed
Claims, less a discount for time value, in full (after
applicable set-off) and distribute any surplus assets to
Sovereign.  In turn, final dividends will then be paid by
Sovereign and Sovereign formally wound up.

If Sovereign and its two subsidiaries were to effect a closing
scheme in isolation, the effect would be to create a fragmented
pool administration, with the remaining pool companies
continuing in run-off, receiving claims notifications and
collecting reinsurance balances as they arise.

This may require policyholders to separate the presentation of
their claims for collection between each of the individual pool
companies.

With this in mind, 13 WFUM Pool Companies are proposing a
collective Scheme of Arrangement alongside the Sovereign
Companies.  This would result in all of the liabilities of the
16 WFUM Pools Companies and their remaining reinsurance being
valued in a consistent way.  The mechanism for the valuation of
policyholders claims will mirror that proposed by Sovereign.

Sovereign's Scheme Administrators believe that a unified Pool
Scheme will increase the ultimate distributions to creditors
which can be paid than would otherwise be the case if the
Sovereign Companies closed separately.


* Moody's Reports Global Speculative-Grade Corp. Default Rate
-------------------------------------------------------------
Moody's global speculative-grade corporate default rate for the
twelve months ending July edged down slightly to 1.7% from 1.8%
in June, Moody's Investors Service reported.

July marks the fifteenth consecutive month that the speculative-
grade default rate has come in below 2.1%.  In addition to low
levels, default rates have also exhibited very low volatility.
For nearly two years, Moody's issuer-based speculative-grade
default rate has varied by no more than 30 basis points from
month to month.

Moody's reported that it expects a marginal and gradual rise in
corporate defaults over the next twelve months.  Moody's
forecasting model predicts that its issuer-weighted global
speculative-grade default rate will finish 2006 at 2.1%, rising
to 2.7% by the end of July 2007.

"Not only has the default rate shown very little change in
recent months, but so have many of the factors that Moody's uses
to forecast default rates, such as credit rating changes and the
trend in industrial production," said David T. Hamilton, Moody's
Director of Corporate Default Research.

"Nevertheless, the pace of defaults is about as low as it can
get. Credit conditions are unlikely to be as favorable going
forward."

Vesta Insurance Group was the only Moody's-rated corporate bond
default in July, missing the interest payment on US$56 million
of its 8-3/4% senior debentures.

The single default in July brings the total number of Moody's-
rated corporate bond issuers that have defaulted in the first
seven months in 2006 to 10, with a total dollar volume of US$3.4
billion. For the comparable period in 2005, there were 16
defaulters affecting US$3.8 billion of bonds.

The largest default so far in 2006 is Dana Corporation, which
filed for bankruptcy in March with US$1.6 billion of public
bonds affected.  Nine of the ten rated defaulters for 2006 have
been based in the U.S.  The only non-U.S. default thus far has
been Global Automotive Logistics S.A.S., which is based in
France.

Moody's dollar volume based global speculative-grade default
rate also fell slightly in July, to 3.9% from 4.0% in June.
Hamilton noted that although it is still below its 5.5%
historical annual average, the current global dollar volume
weighted default rate is more than double the level of 1.9% of a
year ago.  At the beginning of 2006, the global dollar weighted
default rate was 3.8%.

Moody's further reported that corporate default rates remain low
in major corporate bond markets.

In Europe, Moody's issuer-weighted speculative-grade default
rate remained unchanged at 0.5% from June to July.  The current
European default rate is down from 1.1% at the beginning of the
2006 and from 1.6% in July 2005.

Measured on a dollar volume basis, the European default rate
also remained unchanged from June to July at 0.1%.  Europe's
dollar volume weighted default rate is down considerably from
the 1.4% level of a year ago.

Among U.S.-based companies, Moody's issuer-weighted speculative-
grade default rate edged down to 2.3% in July, from 2.4% in
June.  July's U.S. default rate is unchanged from a year ago,
but slightly below the year's opening level of 2.4%.

Measured on a dollar volume basis, the U.S. default rate fell to
4.5% in July, down incrementally from its 4.6% June level.
July's U.S. dollar-weighted default rate was significantly
higher than the 1.9% level it was a year ago.

There were no Moody's-rated leveraged loan defaults in July.
Year to date, five Moody's-rated corporate loan issuers have
defaulted on a total of US$1.4 billion of loans.  During the
same period in 2005, there were also five loan defaults, but on
more than twice the amount of total debt at US$2.9 billion.  
This year, the only loan default outside the U.S. has been
France-based Global Automotive Logistics S.A.S.

For the twelve months ending in July, Moody's U.S. leveraged
loan default rate arrived at 1.3%, down from the 1.5% level
recorded at the end of June.

                           *********

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 * * *