TCREUR_Public/060810.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

           Thursday, August 10, 2006, Vol. 7, No. 158   

                            Headlines


A U S T R I A

AQUADOMUS WELLNESS: Claims Registration Period Ends August 29
CHRISTIAN BOS: Claims Registration Period Ends August 24
GRIMM MIRJAM: Creditors' Meeting Slated for August 23
GRUBER STEUERUNGSTECHNIK: Claims Filing Period Ends Aug. 14
INTERPROJECT LIMITED: Creditors' Meeting Slated for August 22

PS-TEC: Linz Court Orders Closing of Business


F R A N C E

ALCATEL SA: New Entity Shares Can Trade in French Exchange
ALSTOM SA: Returns to Paris Stock Echange Index CAC 40
AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says
BANQUE PALATINE: Fitch Affirms Individual C Rating
IXIS CORPORATE: Fitch Maintains Individual Rating at C


G E O R G I A

METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results


G E R M A N Y

ALERIS INT'L: Merging with Texas Pacific in US$3.3-Bln Deal
ASV MANAGEMENT: Claims Registration Ends August 25
CROTTENDORFER METALLWARENFABRIK: Claims Bar Date Ends Sept. 1
CUL-CLEMENS: Claims Registration Ends September 4
DYCKERHOFF AG: S&P Revises Rating Outlook to Positive

FALK BUEROGEBAUDE: Claims Registration Ends September 4
FUNK-MIETWAGEN: Claims Registration Ends August 30
GP GEWERBEBAU: Claims Registration Ends August 30
HEIDELBERGCEMENT AG: Earns EUR415-Mln Profit in 2006 First Half
J. FRITZ: Claims Registration Ends September 1

KARSTADTQUELLE AG: Eyes Zero Debt at 2006 Year-End
KUEHNE IMMOBILIEN: Claims Registration Ends August 30
KUNSTSTOFF-FERTIGUNGSTECHNIK: Claims Registration Ends Sept. 1
VEREINS BERGAKADEMISCHER: Claims Registration Ends September 1


G R E E C E

EMPORIKI BANK: Owners Tender 71.97% Stake to Credit Agricole


I R E L A N D

SANDISK CORP: Acquiring msystems in All-Stock Deal
SANDISK CORP: Posts US$96 Million Net Income in Second Quarter


I T A L Y

PARMALAT SPA: Popolare Italiana Settles Suit for EUR69 Million
POPOLARE ITALIANA: Settles Parmalat Suits for US$69 Million


K A Z A K H S T A N

AKSUSKY HLEBOZAVOD: Creditors Must File Claims by Sept. 15
FERRUM INC: Creditors Must File Claims by Sept. 15
JAKSY-2003: Proof of Claim Deadline Slated for Sept. 15
KARABURA-2030: Proof of Claim Deadline Slated for Sept. 15
PRODSTAL: Claims Registration Ends Sept. 15

RIGEL 2003: Claims Registration Ends Sept. 15
TAISOYGAN-AGRO: Creditors' Claims Due Sept. 15
YE-OIL: Creditors' Claims Due Sept. 15

* Fitch Lifts Long-Term Rating of Almaty City to BB+


K Y R G Y Z S T A N

KEREMET: Proof of Claim Deadline Slated for Sept. 18


L U X E M B O U R G

NORTEL NETWORKS: Second Qtr. Revenues Up 5% to US$2.74 Billion
YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe


R U S S I A

AGRO-INVEST: Court Names S. Lebed as Insolvency Manager
AGRO-SERVICE: Court Names N. Mikhnev as Insolvency Manager
ALROSA CO: Improved Finances Spur S&P to Raise Rating to BB-
DALNEVOSTOCHNAYA BUILDING: A. Mikhaylovskiy to Manage Assets
EURO-TOBACCO: Court Names A. Spirkin as Insolvency Manager

KHLEBNIKOVSKOYE: Court Starts Bankruptcy Supervision
KOMSOMOLSKIY WOODWORKING 2: V. Shvedko to Manage Assets
LAZOVSKIY SPIRTOVIK: Court Starts Bankruptcy Supervision
PERVOMAYSKIY WOOD-PROM-KHOZ: I. Gorn to Manage Assets
SANITAR: Kursk Court Starts Bankruptcy Supervision

SIBERIA: Krasnoyarsk Court Starts Bankruptcy Supervision
SUZEMSKIY CHEESE: V. Golovchenko to Manage Insolvency Assets
SYRSKOYE-SEL-KHOZ-KHIMIYA: Court Starts Bankruptcy Supervision
VERKHNE-KHAVA-AGRO-PROM-KHIMIYA: N. Vysotskaya to Manage Assets
YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe

ZOLOTOE RUNO: Amur Court Starts Bankruptcy Supervision


U K R A I N E

BAHTINOK: Court Names District Tax Agency as Liquidator
DNIPROTEHPROMBIZNES: Court Names Igor Morozov as Liquidator
FORTUNA: Court Names Bankruptcy Agency to Liquidate Assets
HERSON' MEAT: Herson Court Names S. Milovskij as Liquidator
INFARMA-WEST: Kyiv Court Names I. Gusar as Insolvency Manager

KARAT: Lugansk Court Starts Bankruptcy Supervision
MAGIRUS: Court Names District Tax Agency to Liquidate Assets
METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results
PODILSKIJ KRAJ: Court Names Bankruptcy Agency as Liquidator
PUBLIC TRANSPORT: Lviv Court Starts Bankruptcy Supervision

REKA: Kyiv Court Names District Tax Agency as Liquidator
STRIJ' NOODLE: Court Names Yaroslav Onushkanich as Liquidator
TRANS-AH: Court Names Igor Morozov as Insolvency Manager
UKRMETSOYUZ: Court Names O. Tomashevskij as Liquidator
UNIVERS: Court Names Olga Shikilo as Insolvency Manager

UROZHAJ: Court Names Oleksij Gula as Insolvency Manager
VOSHOD: Sumi Court Names Grigorij Ponomarenko as Liquidator
ZAPORIZHYA' BREAD: Court Starts Bankruptcy Supervision


U N I T E D   K I N G D O M

4 FRONT: Appoints J. N. Bleazard as Liquidator
ABSOLUTE RECRUITMENT: Hires Liquidator from Begbies Traynor
ACE ENGINEERING: Brings In Baker Tilly as Joint Administrators
ALTERNA LIMITED: Taps M. S. E. Solomons to Liquidate Assets
ANDREWS SKIPS: Louise Donna Baxter Leads Liquidation Procedure

AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says
BLACKFIELD PROPERTY: Names Arif Anwar Liquidator
BOSWORTH TOOLS: Brings In Liquidator from Bottomley & Co.
BREMADENT LIMITED: Creditors Confirm Liquidator's Appointment
BURALL FLORAPRINT: Appoints Grant Thornton as Administrators

CARDINAL TAP: Names Gagen Dulari Sharma as Administrator
CORRIE ENTERPRISE: Creditors Agree to Voluntary Liquidation
D.C.S. COMPUTERS: Joint Liquidators Take Over Operations
D.E.S. ENVIRONMENTAL: Nominates Liquidator from Marks Bloom
INCO LTD: Teck Cominco Won't Negotiate on Merger Plans Anymore

GENEMEDIX PLC: Enters Into Exclusive Restructuring Arrangement
MILLFIELD SURELINE: Brings In PwC as Joint Administrators
N H NORTH: Names Joint Administrators from Deloitte & Touche
PARK LANE: Appoints Joint Administrators from Parkin S Booth
RSW LIMITED: Taps Leonard Curtis to Administer Assets

SDL RECRUITMENT: Begins Liquidation Procedure
SEI REALISATIONS: Names P. R. Boyle as Administrator
SELECT ADVANCE: Appoints Joint Liquidators to Wind Up Business
SKYEPHARMA PLC: PricewaterhouseCoopers Raise Going Concern Doubt
TRANS-AM CONTRACTING: Taps B & C Associates as Administrators

W GREEN: Taps Mark S. Goldstein to Administer Assets
WH SMITH: Fitch Withdraws Issuer Default Rating at BB-

* Moody Reports Increased EMEA CMBS Issuance in the First Half

                            *********


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


AQUADOMUS WELLNESS: Claims Registration Period Ends August 29
-------------------------------------------------------------
Creditors owed money by LLC Aquadomus Wellness (FN 251877h) have
until Aug. 29 to file written proofs of claims to court-
appointed property manager German Storch at:

         Mag. German Storch
         Buergerstrasse 62
         4020 Linz, Austria
         Tel: 0732/661861
         Fax: 0732/661861-19
         E-mail: ra-storch@nextra.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 12 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

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

Headquartered in Ansfelden, Austria the Debtor declared
bankruptcy on June 22 (Bankr. Case No. 38 S 30/06z).


CHRISTIAN BOS: Claims Registration Period Ends August 24
--------------------------------------------------------
Creditors owed money by LLC Christian Bos (FN 236389g) have
until Aug. 24 to file written proofs of claims to court-
appointed property manager Horst Winkelmayr at:

         Mag. Horst Winkelmayr
         Porcelain Lane 22A/7
         1090 Vienna, Austria
         Tel: 01/532 47 77
         Fax: 01/532 47 77 50
         E-mail: rae@kniwi.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 7 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Korneuburg
         Hall 2
         Room 104
         1st Floor
         Korneuburg, Austria        

Headquartered in Poysdorf, Austria the Debtor declared
bankruptcy on June 22 (Bankr. Case No. 32 S 7/06a).  


GRIMM MIRJAM: Creditors' Meeting Slated for August 23
-----------------------------------------------------
Creditors owed money by LLC Grimm Mirjam (FN 86720f) are
encouraged to attend the first creditors' meeting at 9:15 a.m.
on Aug.23 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 22 (Bankr. Case 4 S 107/06x).  Kurt Bernegger serves as
the court-appointed property manager of the bankrupt estate.   
Maria Kainer represents Dr. Bernegger in the bankruptcy
proceedings.

The property manager and his representative can be reached at:

         Dr. Kurt Bernegger
         c/o Mag. Maria Kainer
         Jacquingasse 21
         1030 Vienna, Austria
         Tel: 799 15 80/0
         Fax: 796 59 14
         E-mail: kanzlei@bernegger-wt.com  


GRUBER STEUERUNGSTECHNIK: Claims Filing Period Ends Aug. 14
-----------------------------------------------------------
Creditors owed money by LLC Gruber Steuerungstechnik (FN
185719t) have until Aug. 14 to file written proofs of claims to
court-appointed property manager Rudolf Franzmayr at:

         Dr Rudolf Franzmayr
         Stadtplatz 32
         4840 Voecklabruck, Austria
         Tel: 07672/23432
         Fax: 07672/23432-4
         E-mail: dr.franzmayr@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:40 a.m. on Aug. 24 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Wels
         Hall 101
        1st Floor
        Maria Theresia Road 12
        Wels, Austria

Headquartered in Regau, Austria the Debtor declared bankruptcy
on June 22 (Bankr. Case No. 20 S 79/06b).     


INTERPROJECT LIMITED: Creditors' Meeting Slated for August 22
-------------------------------------------------------------
Creditors owed money by Interproject Limited (FN 262663w) are
encouraged to attend the first creditors' meeting at 10:40 a.m.
on Aug. 22 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         The Land Court of St. Poelten
         Room 216
         2nd Floor (Old Building)
         St. Poelten, Austria

Headquartered in Reinsberg, Austria, the Debtor declared
bankruptcy on June 22 (Bankr. Case 14 S 97/06i).  Christian Kies
serves as the court-appointed property manager of the bankrupt
estate.  

The property manager can be reached at:

         Christian Kies
         Rathausplatz 8
         3270 Scheibbs, Austria
         Tel: 07482/44222
         Fax: 07482/44222-4
         E-mail: christian.kies@aon.at


PS-TEC: Linz Court Orders Closing of Business
---------------------------------------------
The Land Court of Linz entered an order on June 21 closing the
business of Trade LLC PS-TEC Technologie (FN 89728d).  Court-
appointed property manager Gerhard Wagner determined that the
continuing operation of the business would reduce the value of
the estate.

The property manager can be reached at:

         Dr. Gerhard Wagner
         Spittelwiese 6
         4020 Linz, Austria
         Tel: 0732/775800
         Fax: 0732/775800-15
         E-mail: office@rechtsanwalt-wagner.com     

Headquartered in Linz, Austria, the Debtor declared bankruptcy
on June 12 (Bankr. Case No. 12 S 52/06v).  



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


ALCATEL SA: New Entity Shares Can Trade in French Exchange
----------------------------------------------------------
Lucent Technologies and Alcatel SA disclosed that the French
securities regulator, the Autorite Des Marches Financiers,
granted approval for Alcatel's French admission to trading
prospectus relating to its new ordinary shares to be issued
relative to the proposed merger transaction.

The Note D'Operation, along with Alcatel's annual report dated
March 31, 2006, constitute the prospectus regarding the issuance
of new Alcatel ordinary shares and is available on the Web sites
of Alcatel and the AMF http://www.amf-france.org/

The Company also disclosed that on Aug. 4, 2006, the U.S.
Securities and Exchange Commission declared effective the
registration of Alcatel's ordinary shares with the SEC.  The
registration statement also included the Company's proxy
statement for its special meeting of shareowners to be held on
Sept. 7, 2006, at which shareowners will vote on a proposal to
approve and adopt the merger agreement and the proposed merger
transaction.

The Company's shareowners with questions regarding the special
meeting of shareowners or the voting of their shares may contact
MacKenzie Partners, Inc., at 800-322-2885 or Morrow & Co., Inc.,
at 800-573-4370.

                  About Lucent Technologies

Headquartered in Murray Hill, New Jersey, Lucent Technologies
(NYSE: LU) -- http://www.lucent.com/-- designs and delivers the  
systems, services and software that drive next-generation
communications networks. Backed by Bell Labs research and
development, Lucent uses its strengths in mobility, optical,
software, data and voice networking technologies, as well
as services, to create new revenue-generating opportunities for
its customers, while enabling them to quickly deploy and better
manage their networks.  Lucent's customer base includes
communications service providers, governments and enterprises
worldwide.

                        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.


ALSTOM SA: Returns to Paris Stock Echange Index CAC 40
------------------------------------------------------
Alstom SA replaced Thales SA as one of the top French companies
in the CAC at the opening of the Paris Stock Exchange Index on
July 31.

As announced in June, the reintegration into the Paris Stock
Exchange's index, which ALSTOM left in April 2002 during its
crisis period, is a further sign of the success of ALSTOM's
recovery plan, and has been acknowledged by the Financial
Community and the press.

The companies elected to be part of the CAC40 index are among
the 100 top companies of the Euronext Paris.  The selection is
made by the Index Expert Committee and is based on the free
float market capitalization and liquidity of the company.

The capitalization of the CAC40 companies range from Total's
EUR112 billion to Thomson's EUR3.5 billion.  ALSTOM has a total
market capitalization of close to EUR9.3 billion, with Bouygues
holding 23% of the capital.

                           About Alstom

Headquartered in Paris, France, Alstom S.A. --
http://www.alstom.com/-- is a leading maker of power-generation  
systems and constructs power plants, rail equipment, luxury
passenger ships, naval vessels, and natural gas tankers.  It
also produces electrical drives, motors, and generators.  The
group generates EUR13 billion in annual revenues and employs
more than 70,000 people worldwide.

For the fiscal year ended March 31, 2006, Alstom posted EUR178
million in net profit on EUR13.4 billion in net sales, compared
to EUR628 million in net loss on EUR12.9 billion in net sales a
year ago.

As of March 31, 2006, Alstom had EUR18.408 billion in total
assets, EUR16.568 billion in total liabilities and EUR1.84
billion in total equity.  As of March 31, 2006, Alstom had
EUR8.785 billion in current assets and EUR11.802 billion in
current liabilities


AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says
--------------------------------------------------------------
AOL LLC is expected to reduce more than a quarter of its current
19,000 work force as it struggles to transform itself into a
major broadband provider, Antony Savvas writes for
ComputerWeekly.com.

According to the report, around 5,000 employees will be affected
by the planned job cuts that will hit AOL operations worldwide,
including a large number of its European operations, over the
next six months.  The redundancies were announced during a Web
cast last week but did not specify what positions would be
eliminated, Megan Kuhn of Leesburg Today relates.

Mr. Savvas says AOL is expected to sell its European internet
access business as it concentrates more on offering free
services to help generate greater advertising revenues to its
web portal business.  According to Ms. Kuhn, AOL and France-
based Neuf Cegetel are negotiating the sale of AOL's French
Access Services, which includes its narrowband and broadband
Internet Access operations and a customer service in Marseille.  
The transaction is expected to close by the end of the year, the
paper relates.

Headquartered in Dulles, Virginia, AOL LLC (fka America Online,
Inc.) is an online service provider, bulletin board system, and
media company operated by Time Warner.  In June, the company
launched portals in the UK, France and Germany.  AOL also offers
access and Web services in Canada.

In 2000, AOL and Time Warner announced plans to merge, in a deal
approved by the Federal Trade Commission on Jan. 11, 2001.  
Since its merger with Time Warner, the value of AOL has dropped
from its US$200 billion high and it has seen similar losses
among its subscription rate.


BANQUE PALATINE: Fitch Affirms Individual C Rating
--------------------------------------------------
Fitch Ratings affirmed the Issuer Default Ratings and Short-term
ratings on Groupe Caisse d'Epargne, its central body Caisse
Nationale des Caisses d'Epargne et de Prevoyance and its
affiliate, Banque Palatine respectively at AA and F1+.  The
Outlook for GCE's, CNCE's and BP's IDRs are Stable.

IXIS Corporate & Investment Bank is an affiliate of GCE.  Its
IDR is maintained on Rating Watch Negative, pending the
'rapprochement' of GCE's and Groupe Banque Populaire's wholesale
and investment banking interests, expected to be in place by
end-2006.  The Support ratings on GCE, CNCE, ICIB and BP are
affirmed at 1, while the Individual ratings are affirmed,
respectively at B for GCE and C for ICIB and BP. No Individual
rating is assigned to CNCE.

GCE is a leading French cooperative banking group, controlling
17% of savings deposits, around 9% of sight deposits and some
18% of housing loans.  The group's ratings reflect a low risk
profile, enviable retail franchise, strong capital base and
steady development, propelled by acquisitions and significant
internal reorganization.  Controlled (97.55%) by CNCE, ICIB is
the group's wholesale and investment-banking subsidiary while BP
(60%) specializes in the SME sector.

According to French Banking Law, CNCE is responsible for
guaranteeing the liquidity and solvency of every one of the 28
regional retail banks.  A legally binding agreement is in place
ensuring that the equity of each CEP is available to support all
'affiliated' parties.  As such, GCE's 'affiliates', which are
strategic entities including ICIB and BP, benefit from the IDR
and Short-term ratings of GCE.

A thorough reorganization of the corporate and investment
banking activities undertaken by ICIB and Natexis Banques
Populaires, which is part of GBP, is underway.  The intention is
to create a new bank, NatIxis, to be controlled equally (34%) by
GCE and GBP.  The plan is that ICIB will become a subsidiary of
NatIxis.  The RWN reflects that ICIB's affiliation status is
likely to be affected by the reorganization.

GCE has historical links with the public sector through Caisse
des Depots et Consignations, which retains a 35% shareholding in
CNCE.  These links are being disbanded and CDC will sell its
investment by latest September 2008.  The proposed restructuring
of ICIB is considered positive for GCE and the expected exit of
CDC as a shareholder is not considered detrimental to GCE's IDR
since the latter is driven by the group's stand-alone credit
fundamentals.

The EC is investigating GCE's and La Banque Postale's exclusive
rights over the distribution of the 'Livret A' savings accounts
and Fitch views there is a strong possibility that, in time,
these privileges will be lost.  This is not considered a threat
to GCE's IDR as commissions earned from this business represent
just 7% of operating income.  Scope for upside potential in the
group's IDR in the short-term is minimal since costly
restructurings continue to have an impact on management time.



IXIS CORPORATE: Fitch Maintains Individual Rating at C
------------------------------------------------------
Fitch Ratings affirmed the Issuer Default Ratings and Short-term
ratings on Groupe Caisse d'Epargne, its central body Caisse
Nationale des Caisses d'Epargne et de Prevoyance and its
affiliate, Banque Palatine respectively at AA and F1+.  The
Outlook for GCE's, CNCE's and BP's IDRs are Stable.

IXIS Corporate & Investment Bank is an affiliate of GCE.  Its
IDR is maintained on Rating Watch Negative, pending the
'rapprochement' of GCE's and Groupe Banque Populaire's wholesale
and investment banking interests, expected to be in place by
end-2006.  The Support ratings on GCE, CNCE, ICIB and BP are
affirmed at 1, while the Individual ratings are affirmed,
respectively at B for GCE and C for ICIB and BP. No Individual
rating is assigned to CNCE.

GCE is a leading French cooperative banking group, controlling
17% of savings deposits, around 9% of sight deposits and some
18% of housing loans.  The group's ratings reflect a low risk
profile, enviable retail franchise, strong capital base and
steady development, propelled by acquisitions and significant
internal reorganization.  Controlled (97.55%) by CNCE, ICIB is
the group's wholesale and investment-banking subsidiary while BP
(60%) specializes in the SME sector.

According to French Banking Law, CNCE is responsible for
guaranteeing the liquidity and solvency of every one of the 28
regional retail banks.  A legally binding agreement is in place
ensuring that the equity of each CEP is available to support all
'affiliated' parties.  As such, GCE's 'affiliates', which are
strategic entities including ICIB and BP, benefit from the IDR
and Short-term ratings of GCE.

A thorough reorganization of the corporate and investment
banking activities undertaken by ICIB and Natexis Banques
Populaires, which is part of GBP, is uderway.  The intention is
to create a new bank, NatIxis, to be controlled equally (34%) by
GCE and GBP.  The plan is that ICIB will become a subsidiary of
NatIxis.  The RWN reflects that ICIB's affiliation status is
likely to be affected by the reorganization.

GCE has historical links with the public sector through Caisse
des Depots et Consignations, which retains a 35% shareholding in
CNCE.  These links are being disbanded and CDC will sell its
investment by latest September 2008.  The proposed restructuring
of ICIB is considered positive for GCE and the expected exit of
CDC as a shareholder is not considered detrimental to GCE's IDR
since the latter is driven by the group's stand-alone credit
fundamentals.

The EC is investigating GCE's and La Banque Postale's exclusive
rights over the distribution of the 'Livret A' savings accounts
and Fitch views there is a strong possibility that, in time,
these privileges will be lost.  This is not considered a threat
to GCE's IDR as commissions earned from this business represent
just 7% of operating income.  Scope for upside potential in the
group's IDR in the short-term is minimal since costly
restructurings continue to have an impact on management time.


=============
G E O R G I A
=============


METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results
----------------------------------------------------------------
Metromedia International Group, Inc. (trading as: PINK
SHEETS: MTRM, Common Stock and MTRMP, Preferred Stock), the
owner of interests in communications businesses in the country
of Georgia, is unable to timely file its Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2006.

The filing of the Company's:

   -- Annual Report on Form 10-K for the fiscal year ended
      Dec. 31, 2004;

   -- its Quarterly Report on Form 10-Q for the fiscal quarters
      ended March 31, June 30, and Sept. 30, 2005;

   -- its Annual Report on Form 10-K for the fiscal year ended
      Dec. 31, 2005;

   -- its Quarterly Report on Form 10-Q for the fiscal quarter
      ended March 31, 2006,

   -- along with the Company's completion of its work effort
      for compliance with Section 404, "Management Assessment of
      Internal Controls" of the Sarbanes-Oxley Act of 2002 with
      respect to the filing of its 2005 Form 10-K,

are a prerequisite for the filing of the 2006 second quarter
Form 10-Q.

At present, the Company cannot predict with confidence when it
will file either the 2004 Form 10-K, the 2005 Quarterly Reports,
the 2005 Form 10-K, or the 2006 Q1 Form 10-Q and thus its 2006
Q2 Form 10-Q.

                  About Metromedia International

Headquartered in Charlotte, North Carolina, Metromedia
International Group -- http://www.metromedia-group.com/--  
through its subsidiary, Metromedia International
Telecommunications, owns interests in telecom and cable TV
operations in Russia, Georgia, and elsewhere in Eastern Europe.

Since the first quarter of 2003, the Company has focused its
principal attentions on the continued development of its core
telephony businesses, and has substantially completed a program
of gradual divestiture of its non-core cable television and
radio broadcast businesses.  The Company's core businesses
includes Magticom, Ltd., the leading mobile telephony operator
in Tbilisi, Georgia, and Telecom Georgia, a well-positioned
Georgian long distance telephony operator.

                        *     *     *

Moody's Investors Service has placed Metromedia's subordinated
debt rating at B3 and junior subordinated debt rating at B2.


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


ALERIS INT'L: Merging with Texas Pacific in US$3.3-Bln Deal
-----------------------------------------------------------
Aleris International Inc. entered into a definitive merger
agreement under which Texas Pacific Group, wherein Texas Pacific
will acquire all of the outstanding stock of Aleris
International for approximately US$1.7 billion plus the
assumption of or repayment of approximately US$1.6 billion of
debt.

Under the terms of the agreement, Aleris stockholders will
receive US$52.50 in cash for each share of Aleris common stock
they hold, representing a premium of 27% to Aleris's closing
share price on Aug. 7, 2006.

The board of directors of Aleris has unanimously approved the
merger agreement and has resolved to recommend that Aleris's
stockholders adopt the agreement.

Steven J. Demetriou, Aleris's Chairman and Chief Executive
Officer, said, "After careful analysis, our board of directors
has unanimously endorsed this transaction as being in the best
interests of our stockholders."

Pending the receipt of stockholder approval and expiration of
the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as well as satisfaction of other
customary closing conditions, including regulatory approvals,
the transaction is expected to be completed early in 2007.  The
transaction will be financed through a combination of equity
contributed by TPG and debt financing that has been committed by
Deutsche Bank.

The Company's global headquarters will remain in Beachwood,
Ohio.

Citigroup Global Markets Inc. is acting as financial advisor to
Aleris, while Fried, Frank, Harris, Shriver & Jacobson LLP is
acting as legal advisor to the Company.

Deutsche Bank is acting as financial advisor to TPG and Cleary
Gottlieb Steen & Hamilton LLP is acting as their legal advisor.

                    About Texas Pacific Group

Texas Pacific Group -- http://www.texaspacificgroup.com/-- is a
private investment partnership that was founded in 1992 and
currently has more than US$30 billion of assets under
management.  With offices in San Francisco, London, and Fort
Worth, TPG has extensive experience with public and private
investments executed through leveraged buyouts,
recapitalizations, spinouts, joint ventures and restructurings.  
TPG seeks to invest in world-class franchises across a range of
industries, including branded consumer franchises (Bally, Del
Monte Foods, Ducati), retail (Debenhams, J. Crew, Neiman Marcus,
Petco), airlines (America West, Continental), media and
communications (Findexa, MGM TIM Hellas), industrials (Altivity
Packaging, British Vita, Grohe, Kraton Polymers, Texas Genco),
technology (Lenovo, MEMC, Seagate), financial services
(Endurance Specialty Holdings, Fidelity National Information
Services, Linsco/Private Ledger) and healthcare (IASIS
Healthcare, Oxford Health Plans, Quintiles Transnational), among
others.

                  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.


ASV MANAGEMENT: Claims Registration Ends August 25
--------------------------------------------------
Creditors of ASV Management Company LTD & Co. Systemmontagen KG
have until Aug. 25 to register their claims with court-appointed
provisional administrator Hartwig Albers.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Oct. 11 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Potsdam
         Hall 301
         3rd Floor
         Branch Linden Road 6
         14467 Potsdam, 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 Potsdam opened bankruptcy proceedings
against ASV Management Company LTD & Co. Systemmontagen KG on
July 18.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         ASV Management Company LTD & Co. Systemmontagen KG
         Attn: Dr. Eberhard Boese, Manager
         Jahnstrasse 8
         14712 Rathenow, Germany

The administrator can be contacted at:

         Hartwig Albers
         Luetzowstrasse 100
         10785 Berlin, Germany
         
         
CROTTENDORFER METALLWARENFABRIK: Claims Bar Date Ends Sept. 1
-------------------------------------------------------------
Creditors of Crottendorfer Metallwarenfabrik GmbH have until
Sept. 1 to register their claims with court-appointed
provisional administrator Dirk Herzig.

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 Chemnitz
         Hall 28
         Law Courts Prince Road 21
         Chemnitz, 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 Chemnitz opened bankruptcy proceedings
against Crottendorfer Metallwarenfabrik GmbH on June 30.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Crottendorfer Metallwarenfabrik GmbH
         Attn: Joachim Georgi, Manager         
         Oberwiesenthaler Road 10b
         09474 Crottendorf, Germany

The administrator can be contacted at:

         Dr. Dirk Herzig
         Promenadenstr. 3
         09111 Chemnitz, Germany
         Web: http://www.schubra.de/


CUL-CLEMENS: Claims Registration Ends September 4
-------------------------------------------------
Creditors of CUL-Clemens Umweltlogistik GmbH have until
Sept. 4 to register their claims with court-appointed
provisional administrator Dirk Obermueller.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Sept. 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 Bonn
         Area Room W 1.25
         1 Stick
         William Route 21
         53111 Bonn, Germany      
      
The Court will also verify the claims set out in the
administrator's report at 9:00 a.m. on Nov. 3 at the same venue.

The District Court of Bonn opened bankruptcy proceedings against
CUL-Clemens Umweltlogistik GmbH on June 21.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         CUL-Clemens Umweltlogistik GmbH
         Attn: Renate Clemens, Manager
         Monastery Mountain Route 72
         53177 Bonn, Germany

The administrator can be contacted at:

         Dirk Obermueller
         Godesberger Avenue 125-127
         53175 Bonn, Germany
         Tel: 81 000 45
         Fax: 81 000 820


DYCKERHOFF AG: S&P Revises Rating Outlook to Positive
-----------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Germany-based cement producer Dyckerhoff AG to positive from
stable, reflecting further improvements in the group's
performance in the first half of 2006.  At the same time, the
'BB+' long-term and 'B' short-term corporate credit ratings, and
the ratings on all outstanding debt of Dyckerhoff and its
related entities were affirmed.
     
"The positive outlook reflects our expectation of further
improvements in Dyckerhoff's financial profile, as probable
continued growth in Eastern Europe will bolster free cash flow
generation," said Standard & Poor's credit analyst Eve Greb.
     
The ratings on Dyckerhoff reflect the group's moderately
aggressive financial structure and satisfactory business
profile, stemming from its substantial exposure to the
structurally difficult German market, as well as its limited
geographic diversity.  

These factors are somewhat mitigated by the company's good
market positions and healthy margins achieved outside Germany,
its positive free cash flow generation overall, and the
expectation that its financial profile will steadily improve.  

In addition, Dyckerhoff's credit quality benefits from its
progressive integration into Italy-based Buzzi
Unicem SpA.  Buzzi Unicem, the second-largest Italian cement
manufacturer, has acquired 91.2% of voting rights and 62.2% of
preferred shares of Dyckerhoff over the past four years, thereby
becoming the majority shareholder, with 76.7% of total capital.
     
With sales of EUR1.3 billion in 2005, Dyckerhoff is the second-
largest cement producer in Germany, behind HeidelbergCement AG,
and has strong positions in a number of regions across Western
and Eastern Europe and in the U.S.
     
In the first half of 2006, Dyckerhoff posted a 6% increase in
sales compared with the same period of 2005, due to volume and
price increases in the U.S. and Eastern Europe, which offset
volume decreases in Germany.  

Credit protection measures therefore further improved in the
first half ended June 30, 2006, and are currently strong for the
rating category, with funds from operations (FFO) to pension-
adjusted net debt of about 40% for the 12 months to June 30,
2006.
     
"The ratings on Dyckerhoff would likely be raised if the company
continues to strengthen its financial profile and improve its
FFO-to-net debt ratio--adjusted for operating leases and post-
tax unfunded pension liabilities--to a range of 30%-35% on a
sustainable basis," said Ms. Greb.

"The rating could also be raised should Buzzi more fully
integrate the company into the group."


FALK BUEROGEBAUDE: Claims Registration Ends September 4
-------------------------------------------------------
Creditors of Falk Buerogebaude Objekt Koln/Colonia-Allee I GmbH
& Co. KG have until Sept. 4 to register their claims with court-
appointed provisional administrator Josef Nachmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 5 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         Munich, Germany      
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Munich opened bankruptcy proceedings
against Falk Buerogebaude Objekt Koln/Colonia-Allee I GmbH & Co.
KG on July 5.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Falk Buerogebaude Objekt Koln/Colonia-Allee I
         GmbH & Co. KG
         Westendstr. 160
         80339 Munich, Germany

The administrator can be contacted at:

         Josef Nachmann
         Theatinerstr. 32
         80333 Munich, Germany
         Tel: 089/24217737
         Fax: 089/24217738


FUNK-MIETWAGEN: Claims Registration Ends August 30
--------------------------------------------------
Creditors of Funk-Mietwagen-Taxi-Zentrale Sarno Rainer Kater
GmbH have until Aug. 30 to register their claims with court-
appointed provisional administrator Thomas Schmitz.

Creditors and other interested parties are encouraged to attend
the meeting at 10:45 a.m. on Sept. 21 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Duisburg
         Area C315
         3rd Floor
         Cardinal Galen Road 124-132
         47058 Duisburg, 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 Duisburg opened bankruptcy proceedings
against Funk-Mietwagen-Taxi-Zentrale Sarno Rainer Kater GmbH on
July 4.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be contacted at:

         Funk-Mietwagen-Taxi-Zentrale Sarno Rainer Kater GmbH
         Charlottenstr. 79 b
         47053 Duisburg, Germany

         Attn: Rainer Kater, Manager
         Roonstr. 33
         47198 Duisburg, Germany

The administrator can be contacted at:

         Thomas Schmitz
         Flohbusch 1
         47802 Krefeld, Germany


GP GEWERBEBAU: Claims Registration Ends August 30
-------------------------------------------------
Creditors of GP Gewerbebau und Projektierung GmbH have until
Aug. 30 to register their claims with court-appointed
provisional administrator Andreas Schulte-Beckhausen.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Sept. 29 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bonn
         Hall S 2.22
         2. Stick
         William Route 21
         53111 Bonn, 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 Bonn opened bankruptcy proceedings against
GP Gewerbebau und Projektierung GmbH on July 6.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         GP Gewerbebau und Projektierung GmbH
         Wesselheideweg 41
         53123 Bonn, Germany

         Attn: Gilbert van Overberghe, Manager
         Basteistrasse 42
         53173 Bonn, Germany

The administrator can be contacted at:

         Dr. Andreas Schulte-Beckhausen
         Oxfordstr. 2
         53111 Bonn, Germany
         Tel: 0228 /985210
         Fax: 0228 /9852122


HEIDELBERGCEMENT AG: Earns EUR415-Mln Profit in 2006 First Half
--------------------------------------------------------------
HeidelbergCement AG reports its interim financial results for
the first half of 2006.

HeidelbergCement reported a EUR415 million net profit for the
first half of 2006, compared with a EUR138 million net profit
for the first half of 2005.  Group share in profit increased to
EUR375 million.

The global economic recovery has broadened.  The US, China and
India are continuing to show strong growth; demand and
production have also recovered to a noticeable extent in Europe.  
High energy prices, imbalances in the global economy and the
development of the US dollar exchange rate and US property
market remain ongoing risks.

In the first half of 2006, cement and clinker sales volumes rose
by 16% to 36.6 million tons.  Excluding changes in the
consolidation scope, the increase amounted to 10.8%.  Demand in
the European countries and the Africa-Asia-Mediterranean Basin
Group area experienced particularly lively development.  In
North America, sales volumes in the second quarter increased
only slightly, but remained at a high level overall.

In the first half of 2006, ready-mixed concrete sales volumes
grew by just under 14% in total to 14.2 million cubic meters.  
An increase of 17.2% was recorded in sales volumes of
aggregates, which reached 44.6 million tons.

Turnover rose by 22.3% to EUR4,276 million in the first half of
2006.  Excluding exchange rate and consolidation effects, Group
turnover grew by 16.7%.  All major countries achieved double-
digit growth.

Operating income before depreciation in the first half of 2006
rose by 52.4% to EUR814 million.  Operating income increased to
EUR562 million.  The increases are attributable to the broad
recovery in the European countries and the continuing high level
of demand in North America.   

The positive effects of the consistent implementation of the win
project are markedly reflected in the results.  Clear
organization structures, consistent leadership and streamlined
hierarchies with short reporting processes contributed
significantly to the noticeably increased productivity, markedly
reduced administrative costs and extended running times of the
kilns.

The company's French participation Vicat exerted a considerable
influence on the growth in results from participations, to EUR82
million.  The additional ordinary result of EUR61 million
includes sales of CO2 emission permits.  The financial results
improved, with a decrease in interest cost.  

Taxes on income in the first half of 2006 rose to EUR188 million
as a result of the improved development of results in all Group
areas.  

                 Expansion Strategy Continued

In recent months, HeidelbergCement has continued its expansion
in growth markets.  Important steps were taken to expand the
Group's strong market position in Eastern Europe and Central
Asia, with the market entry in Georgia and further investments
in Russia.  In May, the company acquired a participation of 51%
in the Georgian cement company Kartuli Tsementi, which operates
a grinding plant with a capacity of 100,000 tons; by the
beginning of 2008, the plant's production capacity is expected
to be increased to 500,000 tons.  In July, it signed an
agreement for the acquisition of a majority participation in the
Volsk cement plant in the Volga region of Russia with a capacity
of 210,000 tons.  

"Together with a local partner, we will modernize the production
facilities and, by the end of 2008, construct a new cement plant
with a capacity of 2 million tons," the company said.

"In addition, we intend to further expand our presence in India
and take over the majority share in the cement manufacturer
Mysore Cements.  The company based in Bangalore operates two
cement plants and a grinding plant in central and southern India
with a total capacity of 2.6 million tons.  Mysore Cements
provides a good base for supplying the rapidly developing
markets in the western part of India," the company added.

Employees

In the first half of the year, the number of employees rose to
43,050 (previous year: 42,055).  The increase from the
consolidation of its activities in Kazakhstan and the expansion
in the Ukraine outweighed the decrease resulting from
restructuring measures in Europe and Asia.

Investments

In the first half of the year, cash flow investments amounted to
EUR304 million (previous year: EUR421 million).  Investments in
tangible fixed assets, which primarily relate to maintenance and
optimization measures in our cement plants, totaled EUR213
million, compared with the previous year's EUR208 million.
Investments in financial fixed assets decreased to EUR91 million
from last year's EUR213 million.  

"The impact of our expansion measures in growing markets, which
we have already published, will not be seen until the second
half of the year," the company said.

            Europe Experiences Strong Growth

As a result of the stronger demand and, to some extent, new
consolidations, the company's cement deliveries in all countries
increased in the first half of the year, with significant growth
in most cases.  The highest growth rates were recorded by the
countries of Eastern Europe, with the exception of the Czech
Republic.  Germany, Sweden, the Benelux countries and the United
Kingdom also achieved noticeable increases in sales volumes.  In
total, the company's cement and clinker sales volumes in Europe
rose by 20.7% to 17.8 million tons (previous year: 14.8).  
Excluding the new consolidations, this corresponds to a growth
of 12.4%.  Sales volumes of ready-mixed concrete and aggregates
also developed positively in almost all countries, with
considerable increases in most cases.

The turnover of the Europe Group area rose by 21.5% to EUR1.8
billion from EUR1.537 million of the previous year.

                    About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG --
http://www.heidelbergcement.com/-- was founded in 1873 and is   
publicly traded.  The company produces cement as well as
building materials and building chemicals.  The group's fiscal
2004 revenue amounted to EUR6.9 billion.

                        *     *     *

As reported in TCR-Europe on May 9, Standard & Poor's Ratings
Services revised its outlook on Germany-based cement producer
HeidelbergCement AG to positive from stable.  At the same time,
the 'BB+' long-term and 'B' short-term corporate credit ratings,
and the ratings on all outstanding debt of HeidelbergCement and
its related entities were affirmed.

"This reflects further improvements in the group's financial
profile in 2005 and the first quarter of 2006, as well as
reduced leverage at the Spohn Cement GmbH level," said Standard
& Poor's credit analyst Eve Greb.


J. FRITZ: Claims Registration Ends September 1
----------------------------------------------
Creditors of J. Fritz Automobile GmbH have until
Sept. 1 to register their claims with court-appointed
provisional administrator Dirk Stadler.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 11 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of 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 J. Fritz Automobile GmbH on June 14.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         J. Fritz Automobile GmbH
         Attn: Joachim Fritz, Manager
         Raiffeisenstrasse 6
         30938 Burgwedel, Germany

The administrator can be contacted at:

         Dirk Stadler
         Callinstr. 43
         30167 Hanover, Germany
         Tel: 0511/4739080
         Fax: 0511/47390811


KARSTADTQUELLE AG: Eyes Zero Debt at 2006 Year-End
--------------------------------------------------
In two of three segments, KarstadtQuelle AG (Essen) improved its
operating business and earnings targets in the first six months
of 2006.  

"In the first six months of the year, the Department Store
business was considerably up on the previous years, with the
Premium Group stores in particular generating high growth rates.  
It was the best first six months in years," reported Thomas
Middelhoff, Chairman of the Management Board.  "We can report a
considerably positive impact as a result of the World Cup in our
country. The Tourism segment is continuing to post very good
results.  We can state that the Department Stores and Tourism
segments have taken a turn for the better.  On the other hand
Universal Mail Order Germany is behind schedule and down on the
previous year."

Mr. Middelhoff recalled that two years ago the group was in a
dangerous situation as a result of financial problems.  
Currently, it could be said that the worst was over for the
company.  There was no comparison in the financial situation,
with most group subsidiaries being on track to healthy growth
and the remaining realignment-steps of German Universal Mail
Order being intensively pursued so as to be concluded by 2007.  

There had been a fundamental change to the situation with the
sale of the real estate package for EUR4.5 billion to the
Whitehall Fund (London) five months ago, "For some weeks now, we
are virtually debt-free, we have increased the equity ratio to
an impressive 16.7 percent -- after a period not so long ago of
it being almost zero -- and are now working on aligning the
group for the future."  Making the group free of debt gives new
scope for development and growth on the basis of a less capital-
intensive business model.

Department Store

In the Department Store segment, the positive trend from the
Christmas business continued in the first six months.  Karstadt
posted the best half-year result for years.  Positive factors
here were both a brightening of the general economic situation
and the slightly positive impact on purchasing behaviour as well
as the non-recurring impact of the World Cup, the effect of
which will only fully show in the third quarter.  

"What is particularly pleasing is the development of the
department stores we combined in the Premium Group.  For
example, KaDeWe in Berlin and Alsterhaus in Hamburg posted high
growth rates.  This confirms our assumption that we can and must
post further gains in this segment," stated Mr. Middelhoff, who
also presented the new Management Board member responsible for
the Department Store segment, Peter Wolf.  Wolf has moved from
Tchibo to Karstadt at the beginning of the month.

Thomas Cook

The Thomas Cook tourism business continues to be up on the
previous year performing better than the market.  In the German
tour operator market, Europe's second largest tourism group
reported a 5.6 percent upturn in bookings to the middle of July
in comparison to the previous year.  In view of market growth of
just under 2 percent, the group sees a gain of market share in
Germany.  The key brand, Neckermann Reisen contributed to the
success with bookings up 5.5 percent.  For the 2005/06 financial
year, which ends on Oct. 31, the joint KarstadtQuelle and
Lufthansa subsidiary is targeting a 4.0 percent sales growth on
the German market.  

Mail Order

The Mail Order segment is still in the middle of a restructuring
process which will last to the end of 2007 and which is being
intensified with a new package of measures.  EUR200 million is
to be deployed for this non-recurring expenditure, financed from
savings in working capital and from cash flow.  

"We want to move away from being a universal provider into being
a specialist, away from the big book in the direction of e-
commerce and from the German focus to a more international
orientation -- in an ideal case with a ratio of 50:50 for each
situation."  

The Chairman of the Management Board announced that in the
second half-year there would be a marketing campaign that will
considerably push Mail Order sales.  "In the first six months,
we had reduced marketing expenditure by some 20 percent, since
previous activities were not appropriately being directed to the
customers.  This initially meant a downturn in sales, but a
scheduled one."

"Our overriding objective remains making the company fit for the
future", stated Middelhoff.  "The core businesses are department
stores, home shopping and travel.  In all of these areas we must
achieve even stronger operating success than has previously been
the case, with clear customer orientation, service and advice in
precisely defined buyer segments."

Operating Results

In the first six months of 2006, adjusted group sales totaled
EUR6.5 billion (previous year: EUR6.8 billion).  Adjusted for
the sales effect from the catalogue pages in Mail Order no
longer published, sales in the first half-year of 2006 are only
1.2 percent below the level of the previous year and in the
second quarter at the same level as the previous year.  

Consolidated earnings (after minority interests) reached
EUR558.1 million (previous year: -EUR271.9 million).  With the
inflow of EUR2.7 billion from the first tranche of the disposal
of real estate, the equity ratio (pro forma) increased to 16.7
percent (previous year: 2.8 percent) and is set to be 20 percent
by the end of the year.  

To June 30, 2006, net financial liabilities (pro forma) were
only EUR600 million.  To the end of the year, the group will
have no financial debt.  Partly due to the sale of real estate,
adjusted EBITDA declined to -EUR41.7 million (previous year: -
EUR19.4 million).  The guidance given by the group for adjusted
EBITDA is a year-on-year increase of 10 percent.

                        KarstadtQuelle

Headquartered in Essen, Germany, KarstadtQuelle AG --
http://www.karstadtquelle.com/-- operates department stores and  
mail order businesses.  It has annual sales of EUR15.5 billion
and employs around 70,000.  The retailer has been suffering from
sluggish consumption and high unemployment rate in Germany.  
KarstadtQuelle posted an EBITDA of -EUR428 million in 2004.  The
group is currently restructuring operations by selling off non-
core assets and implementing cost-saving measures.

The group achieved and exceeded its targets for the 2005
financial year.  Group sales, adjusted for the strong impact of
the realignment, were EUR15.45 billion, compared to EUR16.14
billion in the previous year, down 4.2 percent.  Adjusted EBITDA
improved by 5.1 percent to EUR544 million, compared to EUR518
million in the previous year.

In 2005, net financial liabilities were reduced by a third to
EUR3.0 billion (including Thomas Cook), down from EUR4.5 billion
in the previous year.


KUEHNE IMMOBILIEN: Claims Registration Ends August 30
-----------------------------------------------------
Creditors of Kuehne Immobilien GmbH have until Aug. 30 to
register their claims with court-appointed provisional
administrator Sandra Weimann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 4 at which time the
administrator will present her first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt (Oder)
         Hall 401
         Muellroser Chaussee 55
         15236 Frankfurt (Oder), Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Frankfurt (Oder) opened bankruptcy
proceedings against Kuehne Immobilien GmbH on July 11.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Kuehne Immobilien GmbH
         Wood Market 7
         15230 Frankfurt (Oder), Germany

The administrator can be contacted at:

         Sandra Weimann
         Breite Road 9 A
         14467 Potsdam, Germany


KUNSTSTOFF-FERTIGUNGSTECHNIK: Claims Registration Ends Sept. 1
--------------------------------------------------------------
Creditors of Kunststoff-Fertigungstechnik GmbH have until
Sept. 1 to register their claims with court-appointed
provisional administrator Peter Jost.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Sept. 18 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bad Homburg
         Room 302
         3rd Floor
         District Court Building
         Auf der Steinkaut 10-12
         61352 Bad Homburg v. d. Hoehe, Germany
      
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bad Homburg opened bankruptcy proceedings
against Kunststoff-Fertigungstechnik GmbH on July 10.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Kunststoff-Fertigungstechnik GmbH
         Attn: Bruno Wendt, Manager
         Otto-Hahn-Str. 16
         61381 Friedrichsdorf/Ts., Germany

The administrator can be contacted at:

         Peter Jost
         Pfingsweidstr. 3
         60316 Frankfurt, Germany
         Tel: 069/2097390
         Fax: 069/20973929


VEREINS BERGAKADEMISCHER: Claims Registration Ends September 1
--------------------------------------------------------------
Creditors of Vereins Bergakademischer Studentenclub "Das
Fuellort" e.V. have until Sept. 1 to register their claims with
court-appointed provisional administrator Stefan Kahnt.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Sept. 27 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 Chemnitz
         Hall 24
         Law Courts Prince Road 21
         Chemnitz, 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 Chemnitz opened bankruptcy proceedings
against Vereins Bergakademischer Studentenclub "Das Fuellort"
e.V. on July 11.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be contacted at:

         Vereins Bergakademischer Studentenclub
         "Das Fuellort" e.V.
         Attn: Erik Teubel, Joern Raue and
         Martin Preiss, Managers
         Peter Road 5
         09599 Freiberg, Germany

The administrator can be contacted at:

         Stefan Kahnt
         Leipziger Str. 62
         09113 Chemnitz, Germany
         Web: http://www.pluta.net/


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


EMPORIKI BANK: Owners Tender 71.97% Stake to Credit Agricole
------------------------------------------------------------
Credit Agricole S.A. revealed that its public cash offer to the
shareholders in Emporiki Bank of Greece S.A. to tender shares in
Emporiki Bank to the Company has been successful.

Upon settlement of the transfers, Credit Agricole S.A.'s total
ownership will reach 71.97% of Emporiki's share capital:

   -- 1,300 shareholders of Emporiki that hold a total of
      69,574,826 shares have accepted the offer at the close on       
      Aug. 7, 2006, representing approximately 52.55% of the
      Emporiki share capital;

   -- together with Credit Agricole S.A.'s direct shareholding
      of 25,702,456 shares, which includes 14,002,359 shares
      purchased in the market from the announcement of the
      offer, representing 19.41% of Emporiki's share capital,
      Credit Agricole S.A. will reach upon settlement of the
      transfers 71.97% of Emporiki's share capital;

   -- the completion of the off-the-exchange transfer and the
      settlement of Emporiki shares duly tendered by Aug. 7 is
      expected to occur on Aug. 17;

   -- The Bank of Greece has approved the acquisition by Credit
      Agricole S.A. of control of Emporiki, in accordance with
      L. 2076/1992;

   -- The offer was notified, under the simplified procedure, to
      the European Commission, which is expected to issue its
      decision at the latest on Aug. 21.

"I am delighted at the success of the offer for Emporiki and
want to express my appreciation in the confidence the Greek
government and all other shareholders have shown us by tendering
their shares to the offer, Rene Carron, chairman, Credit
Agricole S.A. said.  "This transaction marks a major step in our
international strategy and will contribute to our objective to
increase our net banking income from non-French operations.  We
very much look forward to strengthening the bank in Greece and
in the region to the benefit of Emporiki's activities, customers
and employees.

"Strategically this acquisition is a perfect fit for us, it
allows us to extend our geographical footprint and gives us
access to a growing market in a rapidly expanding region,"
Georges Pauget, chief executive, Credit Agricole S.A. said.  "It
also meets all our financial acquisition criteria. We will now
focus on developing Emporiki's operating procedures, including
risk management, marketing and customer facing activities as
well as employee relations and training in line with Credit
Agricole S.A. best practice.

Morgan Stanley & Co. Limited acted as financial advisor to
Credit Agricole S.A. in connection with the offer.

As reported in TCR-Europe on Aug 2, Credit Agricole S.A. had
increased its takeover offer for Emporiki Bank of Greece S.A.
from EUR23.5 per share to EUR25 per share after the Greek
government said the French bank's offer was too low.  The raised
offer values Emporiki at around EUR3.3 billion.

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

                      About Credit Agricole

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

                       About Emporiki Bank

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

                        *     *     *

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

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

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


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


SANDISK CORP: Acquiring msystems in All-Stock Deal
--------------------------------------------------
SanDisk Corporation and msystems Ltd. have entered into
definitive agreements for SanDisk to acquire msystems in an all-
stock transaction.

In the transaction, each msystems ordinary share will be
converted into 0.76368 of a share of the Company's common stock,
or a 26% premium over the average closing price of msystems'
shares for the last thirty trading days.  The transaction is
expected to close in the fourth quarter of 2006.

Eli Harari, the Company's chairman and chief executive officer
said, "SanDisk and msystems, over the past 18 years, have been
leading innovators in the flash storage market.  This strategic
acquisition will give us the critical mass and complementary
products, customers, channels, technology and manufacturing base
to take our shared vision to the next level.  The NAND flash
data storage business is in its early stages and we believe the
market opportunity is largely untapped,"

Mr. Harari further said, "msystems is a leader in flash memory
systems addressing mobile, portable and embedded markets and
they have a strong team, significant IP and important OEM
customers.  SanDisk has a record of creating new market
categories, world-class manufacturing capabilities and leading
market share in the retail channel.  Both companies are noted
for their relentless innovation, and this acquisition is
intended to further accelerate our pace of innovation.  In the
near term, this transaction better positions SanDisk to serve
the expanding storage needs of handset manufacturers and mobile
network operators.  In the long term, the combination with
msystems will be a catalyst in the development of next
generation flash enabled consumer applications.  We are
extremely excited about joining forces with the msystems team to
achieve our shared vision.  We are committed to serving
msystems' OEM customers after the transaction closes."

msystems also reported its intention to release its second
quarter 2006 financial results on Aug. 7, 2006.

                       About msystems Ltd.

msystems (NASDAQ:FLSH) has been transforming raw flash into
smarter storage solutions since 1989.  From embedded flash
drives deployed in mobile handsets to U3 USB smart drives
designed for leading global brands, msystems creates, develops,
manufactures and markets smart personal storage solutions for a
myriad of applications.

Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK)
-- http://www.sandisk.com/-- manufactures various formats of   
flash memory cards for use in consumer electronics products,
including digital cameras, mobile phones, and game systems.  In
addition, the company produces devices such as USB drives and
MP3 music players.  SanDisk has worldwide locations in China,
Ireland, India, Israel, Japan, Korea and Taiwan.

                         *     *     *

As reported in the Troubled Company Reporter on May 11, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Sunnyvale, California-based SanDisk Corp.'s proposed issue of
US$1.0 billion of senior unsecured convertible notes due 2013.  
The 'BB-' corporate credit rating on SanDisk was affirmed.  S&P
said the rating outlook is stable.


SANDISK CORP: Posts US$96 Million Net Income in Second Quarter
--------------------------------------------------------------
SanDisk Corp. has reported net income of US$96 million for the
second quarter ended July 2, 2006.

The Company disclosed that total second quarter revenues
increased 40% on a year-over-year basis to US$719 million.

The Company also reported GAAP operating income for the second
quarter of 2006 of US$129 million or 18% of revenues and non-
GAAP operating income of US$159 million or 22% of revenue
compared to US$106 million or 21% of revenue in the second
quarter of 2005.

Cash flow from operations was US$59 million, and total cash and
investments increased sequentially by US$933 million to US$2.7
billion.

At July 2, 2006 the Company's balance sheet showed total assets
of US$4.8 billion and total liabilities of US$1.7 billion.

The Company also disclosed that it signed with Toshiba a
definitive agreement to build a new 300-millimeter NAND wafer
fabrication facility in Yokkaichi, Japan with initial production
expected to begin in the fourth quarter of 2007.

Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK)
-- http://www.sandisk.com/-- manufactures various formats of   
flash memory cards for use in consumer electronics products,
including digital cameras, mobile phones, and game systems.  In
addition, the company produces devices such as USB drives and
MP3 music players.  SanDisk has worldwide locations in China,
Ireland, India, Israel, Japan, Korea and Taiwan.

                           *     *     *

As reported in the Troubled Company Reporter on May 11, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Sunnyvale, California-based SanDisk Corp.'s proposed issue of
US$1.0 billion of senior unsecured convertible notes due 2013.  
The 'BB-' corporate credit rating on SanDisk was affirmed.  S&P
said the rating outlook is stable.


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


PARMALAT SPA: Popolare Italiana Settles Suit for EUR69 Million
--------------------------------------------------------------
Parmalat SpA and Banca Popolare Italiana Scrl agreed to settle
lawsuits over the bank's alleged role in the Italian dairy's
collapse.

Pursuant to the settlement, BPI will pay Parmalat EUR59.5
million in cash and EUR10 million in receivables.  The parties
will withdraw claims against each other.

BPI is just one of the many financial institutions that Parmalat
has asserted claw-back claims.  Parmalat expects to recover up
to EUR7,500,000,000 from banks for their part in Parmalat's
going to bankruptcy.

In 2004, Nextra Investment Management SGR, or Intesa Group,
settled with the Italian dairy for EUR160 million.  In mid-2005,
Morgan Stanley paid Parmalat EUR155 million for a global
settlement of their mutual claims.

Parmalat could reach settlements totaling EUR2 billion with
banks including Capitalia SpA, Banca Intesa SpA, UniCredit SpA
and Deutsche Bank AG, Dow Jones Newswire says, citing the Il
Corriere newspaper.

                        Parties' Statement

Parmalat SpA, assisted by Studio Maffei Alberti, and Banca
Popolare Italiana Societa Cooperativa, assisted by Studio
Iannaccone e Associati, communicate that agreement was reached
and two contracts have been signed by which there will be a
settlement of all reciprocal claims that had led to litigation
arising from operations in the period preceding placement of the
Parmalat Group in Extraordinary Administration (December 2003).

The contracts, which cover BPI and its direct and indirect
subsidiaries, and Parmalat and its originating "procedures",
bring all pending revocatory actions and all further reciprocal
claims to an end, according to the following structural
framework:

     First Contract

     1. The BPI Group will pay Parmalat EUR59.5 million in two
        installments:

           -- at the execution of the agreement, the first
              installment of EUR44.5 million will be paid; and

           -- the remaining EUR15 million will be paid by
              March 31, 2007;

     2. Receivables towards third parties, approximating
        EUR10 million -- which had been assigned as collateral
        to BPI -- will revert to Parmalat;

     3. BPI withdraws the objections that it filed against the
        proof of claims of Parmalat Finanziaria in Extraordinary
        Administration for credit claims in excess of
        EUR30 million and will abstain from claiming in
        bankruptcy credits originated as a result of restitution
        of the agreed upon amounts;

Effective as of the date of full and timely payment of the first
installment of EUR44.5 million, Parmalat and its originating
"procedures" will withdraw from all actions and complaints it
had initiated before the Tribunal of Parma, and will abstain
from submitting against the BPI Group, new complaints aiming to
obtain claw back of preferential payments effected during the
period provided for in Art. 67 of the B.L.

Furthermore, Parmalat and the originating "procedures"
undertake, effective the date of payment of the first
installment:

     -- to abstain from filing as a "private party" against the
        BPI Group in any of the pending and future criminal
        proceedings that are linked in whatever manner to the
        Parmalat Group insolvency; and

     -- to withdraw from all revocatory, restitution and/or
        damages and/or indemnity actions, and from all other
        actions of whatever nature or title, including actions
        that have resulted from facts that might hypothetically
        have criminal relevance and are referable to the
        declaration of insolvency of the Parmalat Group.

     Second Contract

Parmalat will take the share parts of Sata Srl (a company
traceable to the Tanzi family, presently in receivership) from
which it claims credits of EUR149 million compared to total Sata
debits of EUR157 million.  The assignment of the share parts
will take place for a consideration of EUR1.  The Parmalat
credit is presently objected to by a third party creditor, as
per Art. 100 B.L.

In this connection, in furtherance of today's contracts, the BPI
Group undertakes to support the emergence of Sata from
bankruptcy through:

     (i) waiver of a credit of approximately EUR2.5 million it
         claims against the above mentioned third party
         creditor, and

    (ii) cancellation of a mortgage collateral valued EUR28
         million recorded against the real estate of Azienda
         Agricola Pisorno Srl, a company controlled by Sata,
         upon payment by this company and/or by Parmalat, in
         favor of BPI, of an amount of EUR15 million by
         March 31, 2007, this term being of the essence.

Parmalat communicates that Sata has liquidity of EUR28 million,
and that the Azienda Agricola Pisorno has an estimated value of
EUR40 million.

                BPI Also Settles Parmatour Claims

The BPI Group communicates further that it has executed a
contract with the companies Parmatour S.p.A. in a.s., Nuova
Holding S.p.A. in a.s., Hit S.p.A. in a.s., Hit International
S.p.A. in a.s., assisted by Studio Tracanella.

In accordance with said contract, the BPI Group undertakes to
pay Parmatour EUR12 million in full satisfaction of all and any
claims filed, or to be filed, by the Parmatour Procedures, to
renounce its credits that have been admitted as unsecured
credits in the claims role of Parmatour for EUR26,912,783.15,
and to return to Parmatour EUR715,194.15 which is being held in
a certain restricted bank account that was opened according to a
Interbank Treaty dated April 29, 2003, among some banking
institutions and Parmatour.

     The Parmatour Procedures:

     -- undertake to abstain from filing as a "private party"
        against the BPI Group in any of the pending and future
        criminal  proceedings that are linked in whatever manner
        to the Parmatour insolvency; and

     -- withdraw, with respect to the BPI Group, from all
        revocatory, restitution and/or damages and/or indemnity
        actions, and from all other actions of whatever nature
        or title, including actions that have resulted from
        facts that might hypothetically have criminal relevance,
        which are referable to the declaration of insolvency of
        Parmatour, and from whatever claim which may consist of
        possible charges of responsibility in the causation
        and/or the deepening and/or the delayed declaration of
        insolvency of Parmatour.

The Boards of Parmalat and Banca Popolare Italiana have
expressed their satisfaction that agreement has been reached.

                  About Banca Popolare Italiana

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.   
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                          About Parmalat

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

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

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


POPOLARE ITALIANA: Settles Parmalat Suits for US$69 Million
-----------------------------------------------------------
Parmalat SpA and Banca Popolare Italiana Scrl agreed to settle
lawsuits over the bank's alleged role in the Italian dairy's
collapse.

Pursuant to the settlement, BPI will pay Parmalat EUR59.5
million in cash and EUR10 million in receivables.  The parties
will withdraw claims against each other.

BPI is just one of the many financial institutions that Parmalat
has asserted claw-back claims.  Parmalat expects to recover up
to EUR7,500,000,000 from banks for their part in Parmalat's
going to bankruptcy.

In 2004, Nextra Investment Management SGR, or Intesa Group,
settled with the Italian dairy for EUR160 million.  In mid-2005,
Morgan Stanley paid Parmalat EUR155 million for a global
settlement of their mutual claims.

Parmalat could reach settlements totaling EUR2 billion with
banks including Capitalia SpA, Banca Intesa SpA, UniCredit SpA
and Deutsche Bank AG, Dow Jones Newswire says, citing the Il
Corriere newspaper.

                        Parties' Statement

Parmalat SpA, assisted by Studio Maffei Alberti, and Banca
Popolare Italiana Societa Cooperativa, assisted by Studio
Iannaccone e Associati, communicate that agreement was reached
and two contracts have been signed by which there will be a
settlement of all reciprocal claims that had led to litigation
arising from operations in the period preceding placement of the
Parmalat Group in Extraordinary Administration (December 2003).

The contracts, which cover BPI and its direct and indirect
subsidiaries, and Parmalat and its originating "procedures",
bring all pending revocatory actions and all further reciprocal
claims to an end, according to the following structural
framework:

     First Contract

     1. The BPI Group will pay Parmalat EUR59.5 million in two
        installments:

           -- at the execution of the agreement, the first
              installment of EUR44.5 million will be paid; and

           -- the remaining EUR15 million will be paid by
              March 31, 2007;

     2. Receivables towards third parties, approximating
        EUR10 million -- which had been assigned as collateral
        to BPI -- will revert to Parmalat;

     3. BPI withdraws the objections that it filed against the
        proof of claims of Parmalat Finanziaria in Extraordinary
        Administration for credit claims in excess of
        EUR30 million and will abstain from claiming in
        bankruptcy credits originated as a result of restitution
        of the agreed upon amounts;

Effective as of the date of full and timely payment of the first
installment of EUR44.5 million, Parmalat and its originating
"procedures" will withdraw from all actions and complaints it
had initiated before the Tribunal of Parma, and will abstain
from submitting against the BPI Group, new complaints aiming to
obtain claw back of preferential payments effected during the
period provided for in Art. 67 of the B.L.

Furthermore, Parmalat and the originating "procedures"
undertake, effective the date of payment of the first
installment:

     -- to abstain from filing as a "private party" against the
        BPI Group in any of the pending and future criminal
        proceedings that are linked in whatever manner to the
        Parmalat Group insolvency; and

     -- to withdraw from all revocatory, restitution and/or
        damages and/or indemnity actions, and from all other
        actions of whatever nature or title, including actions
        that have resulted from facts that might hypothetically
        have criminal relevance and are referable to the
        declaration of insolvency of the Parmalat Group.

     Second Contract

Parmalat will take the share parts of Sata Srl (a company
traceable to the Tanzi family, presently in receivership) from
which it claims credits of EUR149 million compared to total Sata
debits of EUR157 million.  The assignment of the share parts
will take place for a consideration of EUR1.  The Parmalat
credit is presently objected to by a third party creditor, as
per Art. 100 B.L.

In this connection, in furtherance of today's contracts, the BPI
Group undertakes to support the emergence of Sata from
bankruptcy through:

     (i) waiver of a credit of approximately EUR2.5 million it
         claims against the above mentioned third party
         creditor, and

    (ii) cancellation of a mortgage collateral valued EUR28
         million recorded against the real estate of Azienda
         Agricola Pisorno Srl, a company controlled by Sata,
         upon payment by this company and/or by Parmalat, in
         favor of BPI, of an amount of EUR15 million by
         March 31, 2007, this term being of the essence.

Parmalat communicates that Sata has liquidity of EUR28 million,
and that the Azienda Agricola Pisorno has an estimated value of
EUR40 million.

                BPI Also Settles Parmatour Claims

The BPI Group communicates further that it has executed a
contract with the companies Parmatour S.p.A. in a.s., Nuova
Holding S.p.A. in a.s., Hit S.p.A. in a.s., Hit International
S.p.A. in a.s., assisted by Studio Tracanella.

In accordance with said contract, the BPI Group undertakes to
pay Parmatour EUR12 million in full satisfaction of all and any
claims filed, or to be filed, by the Parmatour Procedures, to
renounce its credits that have been admitted as unsecured
credits in the claims role of Parmatour for EUR26,912,783.15,
and to return to Parmatour EUR715,194.15 which is being held in
a certain restricted bank account that was opened according to a
Interbank Treaty dated April 29, 2003, among some banking
institutions and Parmatour.

     The Parmatour Procedures:

     -- undertake to abstain from filing as a "private party"
        against the BPI Group in any of the pending and future
        criminal  proceedings that are linked in whatever manner
        to the Parmatour insolvency; and

     -- withdraw, with respect to the BPI Group, from all
        revocatory, restitution and/or damages and/or indemnity
        actions, and from all other actions of whatever nature
        or title, including actions that have resulted from
        facts that might hypothetically have criminal relevance,
        which are referable to the declaration of insolvency of
        Parmatour, and from whatever claim which may consist of
        possible charges of responsibility in the causation
        and/or the deepening and/or the delayed declaration of
        insolvency of Parmatour.

The Boards of Parmalat and Banca Popolare Italiana have
expressed their satisfaction that agreement has been reached.

                          About Parmalat

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

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

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

                  About Banca Popolare Italiana

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and  
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.   
Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                        *     *     *

As reported in TCR-Europe on April 3, Fitch Ratings downgraded
Banca Popolare Italiana's Issuer Default and Short-term ratings
to BBB from BBB+ and F3 from F2 respectively.  Its Individual
and Support rating are affirmed at C and 3 respectively.  Its
senior debt and trust preferred stock are also downgraded to BBB
and BB+ respectively from BBB+ and BBB-. The Issuer Default,
Short-term and Individual ratings are removed from Rating Watch
Negative.  A Stable Outlook is assigned for the Issuer Default
rating.


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


AKSUSKY HLEBOZAVOD: Creditors Must File Claims by Sept. 15
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar Region   
declared OJSC Aksusky Bread-Baking Plant Aksusky Hlebozavod
insolvent.   

Creditors have until Sept. 15 to submit written proofs of claim
to:
         
         OJSC Aksusky Hlebozavod
         Donentaeva Str. 8
         Aksu, Kazakhstan
    Tel: 8 (7015) 11-59-77


FERRUM INC: Creditors Must File Claims by Sept. 15
--------------------------------------------------
LLP Ferrum Inc. has declared insolvency.  Creditors have until
Sept. 15 to submit written proofs of claim to:

         LLP Ferrum Inc.
         Erubaeva Str. 52/2-4
         Kazybek bi District
         Karaganda
         Karaganda Region
         Kazakhstan


JAKSY-2003: Proof of Claim Deadline Slated for Sept. 15
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau
Region declared LLP Jaksy-2003 insolvent.

Creditors have until Sept. 15 to submit written proofs of claim
to:

         LLP Jaksy-2003
         Micro District 28, 35-25
         Aktau
         Mangistau Region
         Kazakhstan
    Tel: 8 (3292) 40-21-53
              8 (3005) 22-81 61


KARABURA-2030: Proof of Claim Deadline Slated for Sept. 15
----------------------------------------------------------
LLP Karabura-2030 has declared insolvency.  Creditors have until
Sept. 15 to submit written proofs of claim to:

         LLP Karabura-2030
         Jailau 7/ 30
    Taraz
         Jambyl Region
         Kazakshtan


PRODSTAL: Claims Registration Ends Sept. 15
-------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Prodstal insolvent on June 30.

Creditors have until Sept. 15 to submit written proofs of claim
to:

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


RIGEL 2003: Claims Registration Ends Sept. 15
---------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Rigel 2003 insolvent on June 30.

Creditors have until Sept. 15 to submit written proofs of claim
to:

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


TAISOYGAN-AGRO: Creditors' Claims Due Sept. 15
----------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Taisoygan-Agro insolvent on June 30.

Creditors have until Sept. 15 to submit written proofs of claim
to:

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


YE-OIL: Creditors' Claims Due Sept. 15
--------------------------------------
LLP Ye-Oil has declared insolvency.  Creditors have until
Sept. 15 to submit written proofs of claim to:

         LLP Ye-Oil
         Aksai-1, 1a/10
    Almaty, Kazakhstan
    Tel:  8 (3272) 24-37-44


* Fitch Lifts Long-Term Rating of Almaty City to BB+
----------------------------------------------------
Fitch Ratings upgraded the Kazakhstan City of Almaty's Long-term
rating to BB+ from BB and affirmed the Short-term rating at B.  
The city's local currency long-term rating is also upgraded to
BB+.  Following the upgrade, the Outlook is now Stable.

The upgrade reflects the positive impact that the growing and
diversified local economy has had and will continue to have on
the city's budget.  Taxes contributed 83% of the city's
operating income in 2005.  The local economy is dominated by the
service sector at 85% of gross city product in 2005.

Almaty is home to the national financial sector with many
domestic and foreign commercial banks, the National Bank of
Kazakhstan and the country's only stock exchange located in the
city.

The city recorded a high level of capital expenditure in 2005,
at 23.8% of total spending, up from 7.2% in 2000.  A significant
proportion of the capital investment (more than 30%) has been
financed by Almaty's capital revenues over the last two years.
The share of capital revenue in total revenue has grown to 8.4%
in 2005 from under 1% in 2000.

The debt burden is low, reaching only 6.3% of the current
revenue in 2005 while the debt servicing declined to 1.3% of
current revenue in 2005 from 6.3% in 2002.  The average payback
period has remained below six months for the last four years.

The city's budgetary framework is heavily dependant on the
central government's decisions.  The budgetary framework of
Kazakhstan is characterized by strong bias towards centralized
decision-making and funds distribution.  Although the city
derives a significant share of its revenue from local tax
sources, the budgetary framework is unpredictable with regards
to transfer volumes, deficit funding and regulatory decisions.

The city's budget is characterized by a high degree of rigidity.
Transfers of all kinds averaged almost 60% of the city's
operating expenditure over the last five years, while financing
possibilities have been limited since new legislation was
implemented in 2003.  The city is prohibited from issuing bonds
or borrowing from banks.  The only financing option is credits
from the central government.

The City of Almaty is the largest city in Kazakhstan and is
located in the south-eastern part of the country.  The city
contributes 18.5% to national GDP (2004) and makes up about 8%
of Kazakhstan total population.


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


KEREMET: Proof of Claim Deadline Slated for Sept. 18
----------------------------------------------------
JSC Keremet has declared insolvency.  Creditors have until
Sept. 18 to submit written proofs of claim to:

         JSC Keremet
         Chatyrkol Str. 120
         Balykchy, Kyrgyzstan


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


NORTEL NETWORKS: Second Qtr. Revenues Up 5% to US$2.74 Billion
--------------------------------------------------------------
Nortel Networks Corp. disclosed that it and its principal
operating subsidiary Nortel Networks Limited or NNL have
reported their unaudited financial results for the second
quarter of 2006 prepared in accordance with accounting
principles generally accepted in the United States.

                  Second Quarter 2006 Results

Revenues were US$2.74 billion for the second quarter of 2006
compared to US$2.62 billion for the second quarter of 2005 and
US$2.38 billion for the first quarter of 2006.  The Company
reported net earnings in the second quarter of 2006 of US$366
million, or US$0.08 per common share on a diluted basis,
compared to a net loss of US$33 million, or (US$0.01) per common
share on a diluted basis, in the second quarter of 2005 and a
net loss of US$167 million, or (US$0.04) per common share on a
diluted basis, in the first quarter of 2006.

Net earnings in the second quarter of 2006 included a
shareholder litigation recovery of US$510 million reflecting a
mark-to-market adjustment of the share portion of the global
class action settlement, special charges of US$45 million for
restructuring and a loss of US$10 million on the sale of assets.
Net loss in the second quarter of 2005 included special charges
of US$92 million related to restructuring activities and US$11
million of costs related to the sale of businesses and assets.
Net loss in the first quarter of 2006 included a benefit of
US$35 million in gains on the sale of businesses and assets and
a shareholder litigation expense of US$19 million reflecting a
mark-to-market adjustment.

"Our second quarter performance underscores both the challenges
and good progress we are making with Nortel's transformation.
On the plus side we saw strong order growth of 22% and increased
sales momentum but gross margin was up only modestly and not at
the 40% target we have set for ourselves," said Mike Zafirovski,
president and chief executive officer, Nortel.  "We remain
intensely focused on delivering improved financial performance
and there's solid traction on significant business
transformation initiatives including the go-to-market supporting
our Enterprise business, the development of our Services
business, our strategic alliance with Microsoft, and across the
board cost management programs.  Together, these efforts are
enabling us to deliver greater customer value and substantially
enhance Nortel's competitiveness."

           Breakdown of Second Quarter 2006 Revenues

Mobility and Converged Core Networks revenues were US$1.59
billion, an increase of 7 percent compared with the year-ago
quarter and an increase of 12 percent sequentially.  Enterprise
Solutions and Packet Networks revenues were US$1.07 billion, a
decrease of 1% compared with the year-ago quarter and an
increase of 23% sequentially. Deferred revenues decreased
sequentially by US$14 million and backlog increased by
approximately US$194 million.

                         Gross Margin

Gross margin was 39 percent of revenue in the second quarter of
2006, primarily impacted by geographic and product mix, and
competitive pricing pressures.  This compares to gross margin of
43 percent for the second quarter of 2005 and 38 percent for the
first quarter of 2006. Compared to the second quarter of 2005,
gross margin was impacted primarily by pricing pressures and
unfavourable product mix, which was partially offset by higher
sales volumes.

               Selling, General and Administrative

SG&A expenses were US$596 million in the second quarter of 2006,
reflecting incremental costs related to our acquisition of PEC
and the LG-Nortel joint venture and unfavorable foreign exchange
impacts, offset by cost containment initiatives.  This compares
to SG&A expenses of US$588 million for the second quarter of
2005, and US$595 million for the first quarter of 2006.

                  Research and Development

R&D expenses were US$489 million in the second quarter of 2006,
reflecting increased investment in targeted product areas, the
consolidation of the LG-Nortel joint venture and unfavorable
foreign exchange impacts, offset by the favorable impact of the
savings associated with its 2004 restructuring program.  This
compares to US$488 million for the second quarter of 2005 and
US$478 million for the first quarter of 2006.

                       Special Charges

Special charges in the second quarter of 2006 of US$45 million
included US$43 million for the restructuring program announced
June 27, 2006.

                Other income (expense) - net

Other income (expense) - net was net income of US$51 million for
the second quarter of 2006, which primarily related to
investment income of US$29 million and foreign exchange gains of
US$16 million.

                           Cash

Cash balance at the end of the second quarter of 2006 was
US$1.90 billion, down from US$2.70 billion at the end of the
first quarter of 2006.  This decrease in cash was primarily
driven by an outflow of US$580 million (US$575 million plus
accrued interest of US$5 million) deposited into escrow on
June 1, 2006, under the global class action settlement (pending
satisfactory completion of all conditions) and US$150 million
for the repayment at maturity of the outstanding aggregate
principal amount of the 7.40% Notes due June 15, 2006, and a
cash outflow from operations of US$108 million, partially offset
by cash proceeds of US$70 million related to the Flextronics
transfer.

On July 5, 2006, Nortel announced the closing of the offering of
US$2 billion aggregate principal amount of senior notes and that
it has used US$1.3 billion of the proceeds to prepay the US$1.3
billion one-year credit facility that it entered into in
February 2006.

                   First Half 2006 Results

For the first half of 2006, revenues were US$5.13 billion
compared to US$5.01 billion for the same period in 2005. The
Company reported net earnings for the first half of 2006 of
US$199 million, or US$0.05 per common share on a diluted basis,
compared to a net loss of US$137 million, or (US$0.03) per
common share on a diluted basis, for the same period in 2005.

Net earnings in the first half of 2006 included a shareholder
litigation recovery of US$491 million reflecting a mark-to-
market adjustment of the share portion of the global class
action settlement, special charges of US$50 million related to
restructuring activities and a benefit of US$25million related
to the sale of businesses and assets.  The first half 2005
results included special charges of US$106 million related to
restructuring activities and US$33 million of costs related to
the sale of businesses and assets.

                          Outlook

Commenting on the Company's financial expectations, Peter
Currie, executive vice president and chief financial officer,
Nortel, said, "For the full year 2006, we continue to expect
strong revenue momentum for the rest of 2006, resulting in high
single digit growth for the full year 2006 compared to 2005,
gross margin to be around 40% as a percentage of revenue and
operating expenses to be flat to up slightly from 2005, with
foreign exchange and growth related expenses offsetting
productivity and efficiencies.  For the third quarter of 2006,
we expect revenue growth in excess of 10 percent compared to the
third quarter of 2005 and gross margin and operating expenses to
be in-line with our full year guidance."

                  Recent Business Highlights

New Strategic Relationships

Nortel and Microsoft announced a strategic alliance to
accelerate the transformation of business communications towards
a shared vision for unified communications.  The agreement
engages the companies at the technology, marketing and business
levels and includes joint product development, solutions and
systems integration, and go-to-market initiatives.

Liberty Global, the world's leading international cable
operator, has signed a 3-year global purchase agreement with
Nortel for cable VoIP and optical solutions and services.  With
this agreement, Nortel is now an approved vendor across Liberty
Global's cable subsidiaries that serve 15 million customers in
18 countries around the world.

Nortel Government Solutions has teamed up with NextiraOne
Federal to work together to propose joint solutions for the U.S.
Army Infrastructure Modernization program or IMOD.  NextiraOne
Federal, an authorized Nortel reseller, was awarded one of 10
Indefinite Delivery/Indefinite Quantity contracts to provide
converged voice and data solutions for bases worldwide under the
U.S. Army IMOD program.  In addition, Fortress Technologies and
Nortel Government Solutions have formed a strategic relationship
to provide government agencies worldwide with a joint solution
for secure wireless voice, video and data networking.

                       Revenue Momentum

Nortel's enterprise customer momentum has resulted in new
customers such as:

   -- Hong Kong Exchanges and Clearing Ltd., one of Asia's
      largest international stock exchanges,

   -- China's University of Petroleum to improve communications
      and ensure easy online access to advanced learning
      resources for 40,000 students,

   -- Israel's Migdal Insurance and Financial Holdings Ltd.,

   -- Macquarie University in Australia for a network security
      solution from Nortel, and

   -- Langham Hotel Hong Kong for IP phone systems.

The Bahamas Telecommunications Company Ltd., the primary telecom
operator in the Bahamas will deploy network enhancements to
extend the availability of next-generation, voice, data and
multimedia services with Nortel GSM/GPRS wireless technology.
The GSM/GPRS solution from Nortel will enable BTC to achieve
operational efficiencies through reduced network complexity and
operating expenses as well as the availability to introduce new
services quickly.

Nortel's Global Services will provide full lifecycle services
for the Rolls-Royce telephone network under a seven-year
management services agreement.  Rolls-Royce will transform its
entire telephone network into a single, advance network
providing VoIP services based on Nortel solutions including the
Nortel Communication Server 1000 and Nortel CallPilot for
unified voice, fax and e-mail accessible from any location, and
Nortel mobility services.  Nortel Global Services will also
provide network design, integration, management and maintenance
services to Suddenlink Communications, one of the 10 largest
cable operators in the United States.  Suddenlink will provide
VoIP-based telephony services based on Nortel PacketCable-
qualified Communications Server 2000-Compact as the exclusive
softswitch on their Suddenlink backbone.

Recent momentum in Nortel's Government Solutions business
includes selection by the U.S. Department of Homeland Security
for program management, acquisition and administrative services
to the U.S. Citizenship and immigration Service, and a contract
for systems engineering and software development for ground
systems with the U.S. National Oceanic and Atmospheric
Administration.

Russia's alternative telecommunications service provider Pride
has launched 'triple play' voice, video and multimedia services
with a newly deployed Metro Ethernet network from Nortel. The
solution is based on Nortel's Metro Ethernet portfolio and
enables Pride to make available services such as IPTV with video
on demand; VoIP; and high-speed Internet access.

                Leading Next-Generation Solutions

Nortel has been selected to supply Verizon Wireless with one of
the industry's most advanced CDMA 1xEV-DO Revision A technology
beginning in the third quarter of 2006.  This upgrade will
provide data speeds significantly faster than current
capabilities and meet customer demand for more high-bandwidth,
real-time wireless services such as VoIP, video telephony and
advanced multimedia applications.

KTF, one of South Korea's leading cellular providers, has
launched a next-generation ultra high speed 3.5G wireless
network in Seoul and cities across South Korea using wireless
broadband technology from LG-Nortel.  The network supports
advanced handset capabilities including high-definition video,
video chatting, messaging and remote monitoring.

                     About Nortel Networks

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

                        *    *    *

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

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

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

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


YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe
-----------------------------------------------------------
The Russian Prosecutor General's Office is investigating a
possible fraud stemming from the bankruptcy proceedings of OAO
Yukos Oil Co., the Itar-Tass news agency says.  

The Moscow Arbitration Court declared what was once Russia's
largest oil producer bankrupt on Aug. 1, upholding creditors'
vote to liquidate the company.

According to the Jurist, Russian prosecutors have accused former
Yukos officials of embezzling money by securing a US$4.5 billion
loan from Yukos Capital SARL, a Luxembourg-based unit and major
creditor for Yukos, through legal entities affiliated with the
company.  

Investigators alleged that the ex-Yukos officials masterminded a
plan to sell crude oil through trading companies Fargoil and
Ratibor under their control, acting both as fictitious owners
and buyers, RIA Novosti relates.

Prosecutors told the Russian news agency that "proceeds yielded
from the scheme through affiliated entities were then offered as
loans to Yukos and its subsidiaries."

Authorities are now seizing related documents from the offices
of Yukos, Yuganskneftegaz, Samarneftegaz, Tomskneft, Yukos
Vostok Trade, and Energotrade, MosNews.com reveals.

                           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.


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


AGRO-INVEST: Court Names S. Lebed as Insolvency Manager
-------------------------------------------------------
The Arbitration Court of Rostov Region appointed Mr. S. Lebed as
Insolvency Manager for CJSC Agro-Invest.  He can be reached at:

         S. Lebed
         Post User Box 981
         344029 Rostov-na-Donu
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A53-2004/2006-S2-7.

The Arbitration Court of Rostov Region is located at:

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

The Debtor can be reached at:

         CJSC Agro-Invest
         40-letiya Pobedy Pr. 53-e
         344072 Rostov-na-Donu
         Russia


AGRO-SERVICE: Court Names N. Mikhnev as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Stavropol Region appointed Mr. N.
Mikhnev as Insolvency Manager for LLC Agro-Service (TIN
2627018480).  He can be reached as:

         N. Mikhnev
         Sotsialisticheskaya Str. 18/3
         Stavropol Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A63-3179/06-S5.

The Arbitration Court of Stavropol Region is located at:

         Mira Str. 4586
         Stavropol Region
         Russia

The Debtor can be reached at:

         LLC Agro-Service
         Sotsialisticheskaya Str. 18/3
         Stavropol Region
         Russia


ALROSA CO: Improved Finances Spur S&P to Raise Rating to BB-
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Russian diamond mining company ALROSA
Co. Ltd. to 'BB-' from 'B+', following the release of
2005 results confirming positive trends in the company's
operations and financials.  The outlook is positive.  At the
same time, the 'B' short-term corporate credit rating was
affirmed.

"The upgrade reflects Alrosa's improving free operating cash
flows in 2005 and our expectation that this trend will continue
in the coming years," said Standard & Poor's credit analyst
Elena Anankina.

After several years of posting significantly negative free
operating cash flows (FOCF), the company reported broadly
neutral FOCF in 2005 thanks to limiting working capital outlays,
gradually stabilizing profits, and investments.  On the back of
recent capital expenditures, stabilized production volumes since
2004, and favorable conditions in the diamond industry, Alrosa's
2005 EBITDA increased by 5% to RUR33.6 billion (US$1.2 billion;
32% margin), EBITDA interest coverage was a healthy 6x, and
funds from operations to adjusted debt was 32%.  

In addition, the company's successful diversification of its
export routes is helping it to capture higher margins in sorting
and valuation and mitigate the impact of the European
Commission's ruling prohibiting Alrosa sales to South Africa-
based mining company De Beers after 2008.  Debt continued to
increase, however.  

At Dec. 31, 2005, Alrosa's adjusted debt was RUR65.0 billion,
including RUR50.7 billion of on-balance sheet debt, RUR8.5
billion in asset retirement obligations, and the RUR5.9 billion
postretirement deficit, compared with RUR6.2 billion of cash.
     
"The ratings could be raised if and when the Russian government
takes direct majority control of Alrosa, and if this were to
bring benefits for the company's financial profile," Ms.
Anankina added.

The extent of an upgrade would depend on our analysis of
Alrosa's prospects for shareholder support.  An upgrade would
also require further strengthening of the company's cash flow
pattern.
     
Rating upside would be limited if Alrosa announces investments
in large noncore projects, as this would increase the company's
debt.
     
Following the shareholding change, there is a possibility that a
degree of state support would need to be factored into the
ratings.  It is more likely, however, that the ratings will
continue to be based largely on the company's stand-alone credit
characteristics, as state support in Russia most often focuses
on business development rather than extraordinary support in the
form of tangible benefits to creditors.


DALNEVOSTOCHNAYA BUILDING: A. Mikhaylovskiy to Manage Assets
------------------------------------------------------------
The Arbitration Court of Khabarovsk Region appointed Mr. A.
Mikhaylovskiy as Insolvency Manager for OJSC Dalnevostochnaya
Building Corporation.  He can be reached as:

         A. Mikhaylovskiy
         Post User Box 43/3
         680013 Khabarovsk-13
         Russia

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

The Debtor can be reached at:

         OJSC Dalnevostochnaya Building Corporation
         Promyshlennaya Str. 12.
         Khabarovsk Region
         Russia


EURO-TOBACCO: Court Names A. Spirkin as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Kaliningrad Region appointed Mr. A.
Spirkin as Insolvency Manager for CJSC Euro-Tobacco.  He can be
reached at:

         A. Spirkin
         Post User Box 634
         236010 Kaliningrad Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A21-1323/2006.

The Debtor can be reached at:

         CJSC Euro-Tobacco
         Pogranichnaya Str. 27
         Mamonovo
         Kaliningrad Region
         Russia


KHLEBNIKOVSKOYE: Court Starts Bankruptcy Supervision
----------------------------------------------------
The Arbitration Court of Kaliningrad Region has commenced
bankruptcy supervision procedure on CJSC Khlebnikovskoye.  The
case is docketed under Case No. A21-1478/2006.

The Temporary Insolvency Manager is:

         S. Sergeychuk
         Room 209
         Donskogo Str. 7
         Kaliningrad Region
         Russia

The Debtor can be reached at:

         CJSC Khlebnikovskoye
         Room 209
         Donskogo Str. 7
         Kaliningrad Region
         Russia


KOMSOMOLSKIY WOODWORKING 2: V. Shvedko to Manage Assets
-------------------------------------------------------
The Arbitration Court of Khabarovsk Region appointed Mr. V.
Shvedko as Insolvency Manager for OJSC Komsomolskiy Woodworking
Combine 2 (TIN 2727020130).  He can be reached at:

         V. Shvedko
         Office 106
         Frunze Str. 126
         680028 Khabarovsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A73-13760/2005-38.

The Debtor can be reached at:

         OJSC Komsomolskiy Woodworking Combine 2
         Lesozavodskaya Str. 4
         Komsomolsk-na-Amure
         Russia


LAZOVSKIY SPIRTOVIK: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Khabarovsk Region has commenced
bankruptcy supervision procedure on OJSC Lazovskiy Spirtovik
(TIN 2713013101).  

The case is docketed under Case No. A73-3779/2006-9.

The Temporary Insolvency Manager is:

         V. Biryukov
         Office 104
         Dovatora Str. 24a
         680000 Khabarovsk Region
         Russia

The Debtor can be reached at:

         OJSC Lazovskiy Spirtovik
         Stepnoy Per. 1
         Khor
         Lazo Region
         682920 Khabarovsk Region
         Russia


PERVOMAYSKIY WOOD-PROM-KHOZ: I. Gorn to Manage Assets
-----------------------------------------------------
The Arbitration Court of Tomsk Region appointed Mr. I. Gorn as
Insolvency Manager for CJSC Pervomayskiy Wood-Prom-Khoz (TIN
7012004161).  He can be reached at:  

         I. Gorn
         Post User Box 2513
         634045 Tomsk-45
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.  
A67-9740/05.

The Debtor can be reached at:

         CJSC Pervomayskiy Wood-Prom-Khoz
         Uzen
         Pervomayskiy Region
         636984 Tomsk Region
         Russia


SANITAR: Kursk Court Starts Bankruptcy Supervision
--------------------------------------------------
The Arbitration Court of Kursk Region has commenced bankruptcy
supervision procedure on OJSC Sanitar.  The case is docketed
under Case No. A35-11786/05 G.

The Temporary Insolvency Manager is:

         A. Zapryagaev
         Post User Box 36
         Voroshilova Str. 35
         394055 Voronezh 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:

         OJSC Sanitar
         Uslanka
         Oboyanskiy Region
         306235 Kursk Region
         Russia


SIBERIA: Krasnoyarsk Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Arbitration Court of Krasnoyarsk Region has commenced
bankruptcy supervision procedure on CJSC Siberia.  The case is
docketed under Case No. A33-31125/2005.

The Temporary Insolvency Manager is:

         I. Morlang
         Lenina Str. 62a-10
         634045 Krasnoyarsk Region
         Russia

The Arbitration Court of Krasnoyarsk Region is located at:

         Lenina Str. 143
         660021 Krasnoyarsk Region
         Russia

The Debtor can be reached at:

         CJSC Siberia:
         Novouspenka
         Abanskiy Region
         Krasnoyarsk Region
         Russia


SUZEMSKIY CHEESE: V. Golovchenko to Manage Insolvency Assets
------------------------------------------------------------
The Arbitration Court of Bryansk Region appointed Mr. V.
Golovchenko as Insolvency Manager for LLC Suzemskiy Cheese
Factory.  He can be reached at:  

         V. Golovchenko
         Post User Box 14
         394038 Voronezh Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A09-2983/06-26.

The Arbitration Court of Bryansk Region is located at:

         Room 602
         Trudovoy Per. 5
         Bryansk Region
         Russia

The Debtor can be reached at:

         LLC Suzemskiy Cheese Factory
         Bryanskaya Str. 14
         Suzemka
         Bryansk Region
         Russia


SYRSKOYE-SEL-KHOZ-KHIMIYA: Court Starts Bankruptcy Supervision
--------------------------------------------------------------
The Arbitration Court of Lipetsk Region has commenced bankruptcy
supervision procedure on OJSC Syrskoye-Sel-Khoz-Khimiya.  The
case was docketed under Case No. A36-4658/2005.

The Temporary Insolvency Manager is:


         L. Bogomazova
         Post User Box 1252
         398059 Lipetsk Region
         Russia
         Tel: 8(4742) 43-58-71

The Arbitration Court of Lipetsk Region is located at:

         Skorokhodova Str. 2.
         398019 Lipetsk Region
         Russia

The Debtor can be reached at:

         OJSC Syrskoye-Sel-Khoz-Khimiya
         Syrskoye
         Lipetsk Region
         Russia


VERKHNE-KHAVA-AGRO-PROM-KHIMIYA: N. Vysotskaya to Manage Assets
---------------------------------------------------------------
The Arbitration Court of Voronezh Region appointed Ms. N.
Vysotskaya as Insolvency Manager for OJSC Verkhne-Khava-Agro-
Prom-Khimiya.  She can be reached at:

         N. Vysotskaya
         Room 12
         Lizyukova Str. 66-a
         Voronezh Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A14-29209-2005-193/16b.

The Debtor can be reached at:

         OJSC Verkhne-Khava-Agro-Prom-Khimiya
         Kalinina Str. 1
         V.Khava
         Verkhnekhavskiy Region
         Voronezh Region
         Russia


YUKOS OIL: Russian Prosecutors Begin Bankruptcy Fraud Probe
-----------------------------------------------------------
The Russian Prosecutor General's Office is investigating a
possible fraud stemming from the bankruptcy proceedings of OAO
Yukos Oil Co., the Itar-Tass news agency says.  

The Moscow Arbitration Court declared what was once Russia's
largest oil producer bankrupt on Aug. 1, upholding creditors'
vote to liquidate the company.

According to the Jurist, Russian prosecutors have accused former
Yukos officials of embezzling money by securing a US$4.5 billion
loan from Yukos Capital SARL, a Luxembourg-based unit and major
creditor for Yukos, through legal entities affiliated with the
company.  

Investigators alleged that the ex-Yukos officials masterminded a
plan to sell crude oil through trading companies Fargoil and
Ratibor under their control, acting both as fictitious owners
and buyers, RIA Novosti relates.

Prosecutors told the Russian news agency that "proceeds yielded
from the scheme through affiliated entities were then offered as
loans to Yukos and its subsidiaries."

Authorities are now seizing related documents from the offices
of Yukos, Yuganskneftegaz, Samarneftegaz, Tomskneft, Yukos
Vostok Trade, and Energotrade, MosNews.com reveals.

                           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.


ZOLOTOE RUNO: Amur Court Starts Bankruptcy Supervision
------------------------------------------------------
The Arbitration Court of Amur Region has commenced bankruptcy
supervision procedure on CJSC Zolotoe Runo.  The case was
docketed under Case No. A04-1327/06-10/102 B.

The Temporary Insolvency Manager is:

         O. Fillipova
         Room 205
         Pervomayskaya Str. 1
         Blagoveshensk
         Amur Region
         Russia

The Debtor can be reached at:

         CJSC Zolotoe Runo
         Room 217
         Shevchenko Str. 6
         Blagoveshensk
         Amur Region
         Russia


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


BAHTINOK: Court Names District Tax Agency as Liquidator
-------------------------------------------------------
The Economic Court of Vinnitsya Region appointed for LLC
Bahtinok (code EDRPOU 30805335).  The Liquidator can be reached
at:

         Bar' District State Tax Inspection
         Karl Marks Str. 5/2
         Bar
         23000 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 25.  

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Bahtinok
         Bahtinok
         Murovanokurilovetskij District
         23412 Vinnitsya Region
         Ukraine


DNIPROTEHPROMBIZNES: Court Names Igor Morozov as Liquidator
-----------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Igor
Morozov as Liquidator/Insolvency Manager for LLC
Dniprotehprombiznes (code EDRPOU 32882466).  He can be reached
at:

         Igor Morozov
         a/b 2734
         49044 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 29.  The case is docketed
under Case No. B 24/157-06.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Dniprotehprombiznes
         Stalingradu Str. 149
         Geroiv
         49008 Dnipropetrovsk Region
         Ukraine


FORTUNA: Court Names Bankruptcy Agency to Liquidate Assets
----------------------------------------------------------
The Economic Court of Vinnitsya Region appointed for Vinnitsya
Regional Sector of Bankruptcy Questions as Liquidator LLC
Fortuna (code EDRPOU 03730710).  The Liquidator can be reached
at:

         Vinnitsya Regional Sector of Bankruptcy Questions
         Hmelnitske Shose Str. 7
         21036 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 12.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Fortuna
         Stepanki
         Murovanokurilovetskij District
         23444 Vinnitsya Region
         Ukraine


HERSON' MEAT: Herson Court Names S. Milovskij as Liquidator
-----------------------------------------------------------
The Economic Court of Herson Region appointed Mr. S. Milovskij
as Liquidator/Insolvency Manager for OJSC Herson' Meat Combine
(code EDRPOU 00444205).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 20.  The case is docketed
under Case No. 5/16-B.

The Economic Court of Herson Region is located at:

         Gorkij Str. 18
         73000 Herson Region
         Ukraine

The Debtor can be reached at:

         OJSC Herson' Meat Combine
         Naftovikiv Str. 10
         73000 Herson Region
         Ukraine


INFARMA-WEST: Kyiv Court Names I. Gusar as Insolvency Manager
-------------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. I. Gusar as
Liquidator/Insolvency Manager for CJSC Infarma-West (code EDRPOU
22954970).  He can be reached at:

         I. Gusar
         a/b 29
         01030 Kyiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 7.  The case is docketed
under Case No. 15/35-b.

The Economic Court of Kyiv Region is located at:

         B. Hmelnitskij Boulevard 44-B
         01030 Kyiv Region
         Ukraine
         
The Debtor can be reached at:

         CJSC Infarma-West
         Yaroslaviv Val Str. 21
         Kyiv Region
         Ukraine


KARAT: Lugansk Court Starts Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Lugansk Region commenced bankruptcy
supervision procedure on LLC Karat (code EDRPOU 24203149) on
May 19.  The case is docketed under Case No. 22/35 b.

The Temporary Insolvency Manager is:

         Oleksandr Klinchev
         Lermontov Str. 1-g/301
         91022 Lugansk Region
         Ukraine

The Economic Court of Lugansk Region is located at:

         Geroiv VVV Square 3a
         91000 Lugansk Region
         Ukraine

The Debtor can be reached at:

         LLC Karat
         Gagarin Str. 44
         N. Vilhova
         Stanichno-Luganskij District
         Lugansk Region
         Ukraine


MAGIRUS: Court Names District Tax Agency to Liquidate Assets
------------------------------------------------------------
The Economic Court of Kyiv Region appointed State Tax Inspection
of Golosiyivskij District of Kyiv Region as Liquidator for LLC
MAGIRUS (code EDRPOU 31722540).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 23.  The case is docketed
under Case No. 23/207-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 Magirus
         Zhovtnya Avenue 120
         40-richya
         Kyiv Region
         Ukraine


METROMEDIA INTERNATIONAL: Delays Filing of First Quarter Results
----------------------------------------------------------------
Metromedia International Group, Inc. (trading as: PINK
SHEETS: MTRM, Common Stock and MTRMP, Preferred Stock), the
owner of interests in communications businesses in the country
of Georgia, is unable to timely file its Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2006.

The filing of the Company's:

   -- Annual Report on Form 10-K for the fiscal year ended
      Dec. 31, 2004;

   -- its Quarterly Report on Form 10-Q for the fiscal quarters
      ended March 31, June 30, and Sept. 30, 2005;

   -- its Annual Report on Form 10-K for the fiscal year ended
      Dec. 31, 2005;

   -- its Quarterly Report on Form 10-Q for the fiscal quarter
      ended March 31, 2006,

   -- along with the Company's completion of its work effort
      for compliance with Section 404, "Management Assessment of
      Internal Controls" of the Sarbanes-Oxley Act of 2002 with
      respect to the filing of its 2005 Form 10-K,

are a prerequisite for the filing of the 2006 second quarter
Form 10-Q.

At present, the Company cannot predict with confidence when it
will file either the 2004 Form 10-K, the 2005 Quarterly Reports,
the 2005 Form 10-K, or the 2006 Q1 Form 10-Q and thus its 2006
Q2 Form 10-Q.

                  About Metromedia International

Headquartered in Charlotte, North Carolina, Metromedia
International Group -- http://www.metromedia-group.com/--  
through its subsidiary, Metromedia International
Telecommunications, owns interests in telecom and cable TV
operations in Russia, Georgia, and elsewhere in Eastern Europe.

Since the first quarter of 2003, the Company has focused its
principal attentions on the continued development of its core
telephony businesses, and has substantially completed a program
of gradual divestiture of its non-core cable television and
radio broadcast businesses.  The Company's core businesses
includes Magticom, Ltd., the leading mobile telephony operator
in Tbilisi, Georgia, and Telecom Georgia, a well-positioned
Georgian long distance telephony operator.

                        *     *     *

Moody's Investors Service has placed Metromedia's subordinated
debt rating at B3 and junior subordinated debt rating at B2.


PODILSKIJ KRAJ: Court Names Bankruptcy Agency as Liquidator
-----------------------------------------------------------
The Economic Court of Vinnitsya Region appointed Vinnitsya
Regional Sector of Bankruptcy Questions as Liquidator for LLC
Podilskij Kraj (code EDRPOU 03728268).  The Liquidator can be
reached at:

         Vinnitsya Regional Sector of Bankruptcy Questions
         Hmelnitske Shose Str. 7
         21036 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 12.  

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Podilskij Kraj
         Kotuzhani
         Murovanokurilovetskij District
         23440 Vinnitsya Region
         Ukraine


PUBLIC TRANSPORT: Lviv Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Economic Court of Lviv Region commenced bankruptcy
supervision procedure on CJSC Public Transport Plant (code
EDRPOU 32483661).  The case is docketed under Case No.
6/77-5/100.

The Temporary Insolvency Manager is:

         Igor Bolyak
         Strijska Str. 45
         Lviv Region
         Ukraine

The Economic Court of Lviv Region is located at:

         Lichakivska Str. 81
         79010 Lviv Region
         Ukraine

The Debtor can be reached at:

         CJSC Public Transport Plant
         Strijska Str. 45
         Lviv Region
         Ukraine


REKA: Kyiv Court Names District Tax Agency as Liquidator
--------------------------------------------------------
The Economic Court of Kyiv Region appointed State Tax Inspection
of Golosiyivskij District of Kyiv Region as Liquidator for LLC
Reka (code EDRPOU 30303632).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 23.  The case is docketed
under Case No. 23/206-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 Reka
         Zhovtnya Avenue 100/2
         40-richya
         03127 Kyiv Region
         Ukraine


STRIJ' NOODLE: Court Names Yaroslav Onushkanich as Liquidator
-------------------------------------------------------------
The Economic Court of Lviv Region appointed Yaroslav Onushkanich
as Liquidator/Insolvency Manager for OJSC Strij' Noodle Factory
(code EDRPOU 00376490).  He can be reached at:

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

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 20.  The case is docketed
under Case No. 6/41-8/67.

The Economic Court of Lviv Region is located at:

         Lichakivska Str. 81
         79010 Lviv Region
         Ukraine

The Debtor can be reached at:

         OJSC Strij' Noodle Factory
         Uspenska Str. 40
         Strij
         82400 Lviv Region
         Ukraine


TRANS-AH: Court Names Igor Morozov as Insolvency Manager
--------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Igor
Morozov as Liquidator/Insolvency Manager for LLC Trans-Ah (code
EDRPOU 30584974).  He can be reached at:

         Igor Morozov
         a/b 2734
         49044 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 29.  The case is docketed
under Case No. B 24/156-06.
        
The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Trans-Ah
         Kedrin Str. 66/72
         49008 Dnipropetrovsk Region
         Ukraine


UKRMETSOYUZ: Court Names O. Tomashevskij as Liquidator
------------------------------------------------------
The Economic Court of Mikolaiv Region appointed Mr. O.
Tomashevskij as Liquidator/Insolvency Manager for LLC
Ukrmetsoyuz (code EDRPOU 32755886).  He can be reached at:

         O. Tomashevskij
         Robocha Str. 7
         54029 Mikolaiv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 20.  The case is docketed
under Case No. 5/260/06.

The Economic Court of Mikolaiv Region is located at:

         Admiralska Str. 22
         54009 Mikolaiv Region
         Ukraine

The Debtor can be reached at:

         LLC Ukrmetsoyuz
         Nikolska Str. 80
         Mikolaiv Region
         Ukraine


UNIVERS: Court Names Olga Shikilo as Insolvency Manager
-------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Olga
Shikilo as Liquidator/Insolvency Manager for LLC Univers (code
EDRPOU 32692596).  

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 13.  The case is docketed
under Case No. B 24/121/06.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Univers
         Nahimov Str. 22B
         Krivij Rig
         Dnipropetrovsk Region
         Ukraine


UROZHAJ: Court Names Oleksij Gula as Insolvency Manager
-------------------------------------------------------
The Economic Court of Dnipropetrovsk Region appointed Oleksij
Gula as Liquidator/Insolvency Manager for LLC Agrofirm Urozhaj
(code EDRPOU 30755968).  He can be reached at:

         Oleksij Gula
         Radyanska Str. 43/134
         Novomoskovsk
         51200 Dnipropetrovsk Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 15.  The case is docketed
under Case No. B 15/92/06.

The Economic Court of Dnipropetrovsk Region is located at:

         Kujbishev Str. 1a
         49600 Dnipropetrovsk Region
         Ukraine

The Debtor can be reached at:

         LLC Agrofirm Urozhaj
         Centralna Str. 1
         Magdalinivskij District
         Polivanivka
         51150 Dnipropetrovsk Region
         Ukraine                  

                  
VOSHOD: Sumi Court Names Grigorij Ponomarenko as Liquidator
-----------------------------------------------------------
The Economic Court of Sumi Region appointed Grigorij Ponomarenko
as Liquidator/Insolvency Manager for LLC Voshod (code EDRPOU
30902967).  He can be reached at:

         Grigorij Ponomarenko
         Office 5
         Privokzalna Square 9
         40011 Sumi Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 8.  The case is docketed
under Case No. 12/135-05.

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         LLC Voshod
         Mitrofanov Str.
         Pozhnya
         V. Pisarivskij District
         Sumi Region
         Ukraine


ZAPORIZHYA' BREAD: Court Starts Bankruptcy Supervision
------------------------------------------------------
The Economic Court of Zaporizhya Region commenced bankruptcy
supervision procedure on OJSC Zaporizhya' Bread Products Combine
(code EDRPOU 00951586) on June 6.  The case is docketed under
Case No. 16/35/06.

The Temporary Insolvency Manager is:

         P. Chulakov
         a/b 7683
         69050 Zaporizhya Region
         Ukraine

The Debtor can be reached at:

         OJSC Zaporizhya' Bread Products Combine
         Komsomolska Str. 30
         69063 Zaporizhya Region
         Ukraine


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


4 FRONT: Appoints J. N. Bleazard as Liquidator
----------------------------------------------
J. N. Bleazard of XL Business Solutions Limited was appointed
Liquidator of 4 Front Management Company Limited at an
extraordinary general meeting on May 15.

The company can be reached at:

         4 Front Management Company Limited
    28 Kirkgate
    Huddersfield HD1 1QQ
    United Kingdom
    Tel: 01484 421 950


ABSOLUTE RECRUITMENT: Hires Liquidator from Begbies Traynor
-----------------------------------------------------------
Louise Donna Baxter of Begbies Traynor was appointed Liquidator
of Absolute Recruitment (Surrey) Limited at an extraordinary
general meeting on May 12.

The company can be reached at:

         Absolute Recruitment (Surrey) Limited
    92 The Street
    Puttenham
    Guildford
    Surrey GU3 1AU
    United Kingdom
    Tel: 020 7404 6292


ACE ENGINEERING: Brings In Baker Tilly as Joint Administrators
--------------------------------------------------------------
Adrian David Allen and Philip Edward Pierce of Baker Tilly were
appointed joint administrators of Ace Engineering & Fencing
(U.K.) Limited (Company Number 2897958) on July 6.

Headquartered in Birmingham, United Kingdom, Baker Tilly --
http://www.bakertilly.co.uk/-- is a leading independent firm of  
chartered accountants and business advisers in the United
Kingdom. The firm's annual fee income is over GBP168 million and
is part of a global network, which has 122 member firms in 85
countries as an independent member of Baker Tilly International.

Headquartered in Pontefract, United Kingdom Ace Engineering &
Fencing (U.K.) Limited is engaged in general mechanical
engineering.


ALTERNA LIMITED: Taps M. S. E. Solomons to Liquidate Assets
-----------------------------------------------------------
M. S. E. Solomons of SPW Poppleton & Appleby was appointed
Liquidator of Alterna Limited on May 11.

The company can be reached at:

         Alterna Limited
    Suite 9
    81 Old Church Road
    London E4 6ST
    United Kingdom
    Tel: 020 8529 0222
    Fax: 020 8529 4222


ANDREWS SKIPS: Louise Donna Baxter Leads Liquidation Procedure
--------------------------------------------------------------
Louise Donna Baxter of Begbies Traynor was appointed Liquidator
of Andrews Skips Limited at an extraordinary general meeting on
May 11.

The company can be reached at:

         Andrews Skips Limited
    Burrow Farm
    Brentwood Road
    Bulphan
    Upminster
    Essex RM143TL
    United Kingdom
    Tel: 01375 892 070


AOL LLC: Eyes 5,000 Job Cuts Over Next Six Months, Report Says
--------------------------------------------------------------
AOL LLC is expected to reduce more than a quarter of its current
19,000 work force as it struggles to transform itself into a
major broadband provider, Antony Savvas writes for
ComputerWeekly.com.

According to the report, around 5,000 employees will be affected
by the planned job cuts that will hit AOL operations worldwide,
including a large number of its European operations, over the
next six months.  The redundancies were announced during a Web
cast last week but did not specify what positions would be
eliminated, Megan Kuhn of Leesburg Today relates.

Mr. Savvas says AOL is expected to sell its European internet
access business as it concentrates more on offering free
services to help generate greater advertising revenues to its
web portal business.  According to Ms. Kuhn, AOL and France-
based Neuf Cegetel are negotiating the sale of AOL's French
Access Services, which includes its narrowband and broadband
Internet Access operations and a customer service in Marseille.  
The transaction is expected to close by the end of the year, the
paper relates.

Headquartered in Dulles, Virginia, AOL LLC (fka America Online,
Inc.) is an online service provider, bulletin board system, and
media company operated by Time Warner.  In June, the company
launched portals in the UK, France and Germany.  AOL also offers
access and Web services in Canada.

In 2000, AOL and Time Warner announced plans to merge, in a deal
approved by the Federal Trade Commission on Jan. 11, 2001.  
Since its merger with Time Warner, the value of AOL has dropped
from its US$200 billion high and it has seen similar losses
among its subscription rate.


BLACKFIELD PROPERTY: Names Arif Anwar Liquidator
------------------------------------------------
Arif Anwar of Rifsons was named Liquidator of Blackfield
Property Services Limited at an extraordinary general meeting on
May 11.

The company can be reached at:

         Blackfield Property Services Limited
    Leywood House
    47 Woodside Road
    Amersham
    Buckinghamshire HP6 6AA
    United Kingdom
    Tel: 01494 728 210
    Fax: 01494 431 175


BOSWORTH TOOLS: Brings In Liquidator from Bottomley & Co.
---------------------------------------------------------
David Halstead Bottomley of Bottomley & Co. was appointed
Liquidator of Bosworth Tools (Cutters) Limited on May 12 by
resolutions of members and creditors.

The company can be reached at:

         Bosworth Tools (Cutters) Limited
         Workshops
         Sketchley Meadows
    Hinckley
    Leicestershire LE103ES
    United Kingdom
    Tel: 01455 250 066


BREMADENT LIMITED: Creditors Confirm Liquidator's Appointment
-------------------------------------------------------------
Creditors of Bremadent Limited confirmed the appointment of
Stephen Franklin of Panos Eliades, Franklin & Co. as Liquidator
on May 10.

The company can be reached at:

         Bremadent Limited
         25a St. James's Street
         London E17 7PJ
         United Kingdom
         Tel: 020 8520 8528
         Fax: 020 8520 2751
         Web: http://www.bremadent.co.uk/


BURALL FLORAPRINT: Appoints Grant Thornton as Administrators
------------------------------------------------------------
Andrew David Conquest and Ian Stewart Carr of Grant Thornton
U.K. LLP were appointed joint administrators of Burall
Floraprint Limited (Company Number 00987629) on July 6.

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.  

Burall Floraprint Limited can be reached at:

         Wisbech
         Cambridgeshire PE13 2TH
         United Kingdom
         Tel: 0870 728 7222
         Fax: 0870 728 7277


CARDINAL TAP: Names Gagen Dulari Sharma as Administrator
--------------------------------------------------------
Gagen Dulari Sharma of Sharma & Co. was named administrator of
Cardinal Tap & Die Ltd. (Company Number 04331821) on July 4.

The administrator can be reached at:

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

Headquartered in Sleaford, United Kingdom, Cardinal Tap & Die
Ltd. manufactures metalworking tools.


CORRIE ENTERPRISE: Creditors Agree to Voluntary Liquidation
-----------------------------------------------------------
Creditors of Corrie Enterprise Limited agreed on May 15 to place
the company into voluntary liquidation.

A. J. Clark of Carter Clark was appointed Liquidator.

The company can be reached at:

         Corrie Enterprise Solutions Limited
    160 Bedford Hill
    London SW129HW
    United Kingdom
    Tel: 020 8675 4488
    Fax: 020 8675 4499


D.C.S. COMPUTERS: Joint Liquidators Take Over Operations
--------------------------------------------------------
Neil Henry and Michael Simister of Lines Henry were appointed
Joint Liquidators of D.C.S. Computers Limited on May 10.

The company can be reached at:

         D.C.S. Computers Limited
    51 Walton Road
    Stockton Heath
    Warrington WA4 6NW
    United Kingdom
    Tel: 01925 266 612
    Fax: 01925 269 275


D.E.S. ENVIRONMENTAL: Nominates Liquidator from Marks Bloom
-----------------------------------------------------------
Philip Weinberg of Marks Bloom was nominated Liquidator of
D.E.S. Environmental Systems Limited on May 15.

The company can be reached at:

         D.E.S. Environmental Systems Limited
    4 Camphill indstrial Estate
    West Byfleet
    Surrey KT146EW
    United Kingdom
    Tel: 01932 356 101
    Fax: 01932 356 088


INCO LTD: Teck Cominco Won't Negotiate on Merger Plans Anymore
--------------------------------------------------------------
Teck Cominco Limited is not in, and has no plans to enter into,
discussions or negotiations with Inco Limited regarding Teck
Cominco's offer to acquire all of the outstanding shares of
Inco.

As reported in the Troubled Company Reporter on Aug. 1, Teck
Cominco revised its cash and share offer to acquire
all the outstanding shares of Inco.  Under the revised offer,
Inco shareholders will receive, subject to proration, CDN$82.50
per Inco share in cash, or 1.1293 Teck Cominco Class B
subordinate voting shares plus CDN$0.05 per Inco share.  The
revised offer represents CDN$40 in cash and 0.5821 of a Teck
Cominco Class B subordinate voting share per Inco share at full
proration.

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

Teck Cominco President and Chief Executive Officer, Don Lindsay,
said: "We believe that our offer for Inco is clearly superior to
the highly conditional Phelps Dodge offer.  The Teck Cominco
offer includes almost twice as much cash as the Phelps Dodge
offer and the Phelps Dodge offer is also subject to regulatory
approval and Phelps Dodge shareholder approval."

The Teck Cominco offer expires at midnight (Toronto time) on
Aug. 16, 2006.

                       About Teck Cominco

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

                        About Inco Ltd.

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

                         *    *    *

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


GENEMEDIX PLC: Enters Into Exclusive Restructuring Arrangement
--------------------------------------------------------------
GeneMedix plc entered into a voluntary exclusive arrangement
with a major company in relation to its proposed restructuring.
In connection with the exclusivity arrangement, a bridging loan
will be paid in installments to GeneMedix, the first part of
which has already been received.  
   
The Company has also received a second interim payment out of
the total GBP1.6 million it expects to receive on the sale of
its Chinese facility and is looking to complete the sale over
the coming months, once approvals have finally been obtained
from the Chinese authorities.

These payments have allowed the Company to continue operating at
full pace with its EPO program, and to make progress on the
development of its G-CSF.

As reported in TCR-Europe on Oct. 10, 2005, Management and the
Directors continue to believe strongly that the Company has an
attractive and valuable program for EPO, a high quality
manufacturing and development facility in Ireland; exciting
opportunities with its G-CSF program and further commercial
potential with its Monomeric Insulin analogues and interferon-
alfa.

                     About the Company
                    
Headquartered in the U.K., GeneMedix --
http://www.genedmedix.com/-- is a globally focused  
biopharmaceutical company, specializing in the development and
manufacture of cost effective treatments for some of the world's
most serious diseases.

At Feb. 28, 2006, the company's balanced sheet showed a
GPP331,791 stockholder's deficit, compared with a stockholder's
equity of GBP2,735,205 at Feb. 28, 2005.  The company also
experienced strained liquidity for the period with GBP1.68
million of current assets available to pay GBP2.62 million of
debts within the year.


MILLFIELD SURELINE: Brings In PwC as Joint Administrators
---------------------------------------------------------
Michael John Andrew Jervis and Dan Yoram Schwarzmann of
PricewaterhouseCoopers LLP were appointed joint administrators
of Millfield Sureline Limited (Company Number 04563448) on
July 10.

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

Headquartered in Croydon, United Kingdom, Millfield Sureline
Limited are independent financial advisors.


N H NORTH: Names Joint Administrators from Deloitte & Touche
------------------------------------------------------------
Dominic Lee Zoong and Christopher James Farringdon of Deloitte &
Touche LLP were appointed joint administrators of N H North
Limited (Company Number 01953130) on July 10.

Headquartered in London, Deloitte & Touche LLP --
http://www.deloitte.com/-- is the United Kingdom member firm of  
Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are
separate and independent legal entities.  It provides audit,
tax, consulting and corporate finance services through more than
9,000 people in 21 locations.  

Headquartered in Basford, United Kingdom, N H North Limited
wholesales and retails computers.


PARK LANE: Appoints Joint Administrators from Parkin S Booth
------------------------------------------------------------
Robert M. Rutherford and Jonathan R. Booth of Parkin S. Booth &
Co. were appointed joint administrators of Park Lane Bakery
Limited (Company Number 5158005) on July 10.

Parkin S. Booth & Co http://www.parkinsbooth.co.uk/--  
independent Accountants Licensed Insolvency Practitioners is a
medium sized firm with particular expertise in its own field.  
Dealing entirely with insolvency matters, we do not, for
example, undertake any audit or taxation work.

Park Lane Bakery Limited can be reached at:

         Abbots Quay
         Monks Ferry
         Birkenhead
         Merseyside CH41 5LH
         United Kingdom


RSW LIMITED: Taps Leonard Curtis to Administer Assets
-----------------------------------------------------
N. A. Bennett and A. Poxon of Leonard Curtis were appointed
joint administrators of RSW Limited (formerly Extreme Shops (UK)
Limited) (Company Number 5194607) on July 6.

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

Headquartered in Warwick, United Kingdom, RSW Limited retails
textiles and clothing.


SDL RECRUITMENT: Begins Liquidation Procedure
---------------------------------------------
SDL Recruitment Limited is voluntarily liquidating its assets
after creditors decided on May 10 to wind up the company.

Vincent A. Simmons was appointed Liquidator.

The company can be reached at:

         SDL Recruitment Limited
         22 Cairo Street
         Warrington WA1 1EH
         Tel: 01925 573 222
         Fax: 01925 576 916


SEI REALISATIONS: Names P. R. Boyle as Administrator
----------------------------------------------------
P. R. Boyle of Harrisons was appointed administrator of SEI
Realisations 2006 Limited (formerly Sara Eden Introductions)
(Company Number 03076850) on June 30.

Harrisons -- http://www.harrisons.uk.com/-- provide advice and  
solutions to professional advisors who found their clients
experiencing financial difficulties.  Originally trading from
offices in Reading and has added London, Manchester, Bristol and
Derby and has associate offices in Grantham and Stockton on
Tees.  

Headquartered in London and Windsor, United Kingdom, Sara Eden
Introductions -- http://sara-eden.co.uk/-- is an introduction  
and dating agency.


SELECT ADVANCE: Appoints Joint Liquidators to Wind Up Business
--------------------------------------------------------------
David Hill and John Davies of Begbies Traynor were appointed
Joint Liquidators of Select Advance Seating Limited on May 12.

The company can be reached at:

         Select Advance Seating Limited
    Unit 9
    Sirhowy Industrial Estate
    Sirhowy
    Tredegar
    Gwent NP22 4QZ
    Tel: 01495 718660   


SKYEPHARMA PLC: PricewaterhouseCoopers Raise Going Concern Doubt
----------------------------------------------------------------
PricewaterhouseCoopers LLP in London, disclosed that there is
uncertainty as to when Skyepharma PLC's certain strategic
initiatives may be concluded and their effect on the Company's
working capital requirements.  PwC says that this raises
substantial doubt on the Company's ability to continue as a
going concern.  PwC disclosed this explanatory paragraph after
auditing the Company's financial statement for the year ended
Dec. 31, 2005.

The Company's management reported that its working capital
requirements continue to be affected by the timing and receipt
of milestone payments and payments received on the signing of
new contracts.  The Company's future cash flows will also be
impacted by the change in strategy, principally its stated aim
of moving to sustainable profitability in the near term and its
refocus to concentrate on oral and pulmonary products.

The Company relates that its near term working capital
requirements are uncertain and sensitive to the timing of a
number of initiatives required to provide the financial
flexibility to implement the new strategy.  These initiatives
include the:

    * licensing of Flutiform(TM) in Europe,

    * divestment of the Company's injectable business interests,
      which is expected to require shareholder approval, or

    * U.S. licensing for DepoBupivacaine.

In 2005, SkyePharma reported a full year net loss of
GBP50.9 million compared to a 2004 full year net loss of
GBP18.6 million.  As a result of these losses, the Company's
consolidated net assets at Dec. 31, 2005 declined to GBP31.9
million, compared with GBP36.5 million at December 31, 2004.

A full-text copy of the Company's Annual Report is available for
free at http://ResearchArchives.com/t/s?e98

Headquartered in London, England, SkyePharma PLC (Nasdaq: SKYE;
LSE: SKP) -- http://www.skyepharma.com/-- develops  
pharmaceutical products benefiting from world-leading drug
delivery technologies that provide easier-to-use and more
effective drug formulations.  There are now twelve approved
products incorporating SkyePharma's technologies in the areas of
oral, injectable, inhaled and topical delivery, supported by
advanced solubilization capabilities.


TRANS-AM CONTRACTING: Taps B & C Associates as Administrators
-------------------------------------------------------------
Filippa Connor and Jeffrey Mark Brenner of B & C Associates were
appointed joint administrators of Trans-Am Contracting Limited
(Company Number 02867964) on July 6.

The joint administrators can be reached at:

         B & C Associates
         Trafalgar House
         Grenville Place
         Mill Hill
         London NW7 3SA
         United Kingdom
         Tel: 0208 906 7730
         Fax: 0208 906 7731

Headquartered in London, United Kingdom, Trans-Am Contracting
Limited is engaged in stone masonry services.


W GREEN: Taps Mark S. Goldstein to Administer Assets
----------------------------------------------------
Mark S. Goldstein of DCM Insolvency Service Limited was
appointed administrator of W Green Son & Waite Limited (Company
Number 00581467) on July 6.

The administrator can be reached at:

         DCM Insolvency Service Limited
         Kingswood Court
         1 Hemlock Close
         Kingswood
         Surrey KT20 6QW
         United Kingdom
         Tel: 01737 830763
         Fax: 01737 83081
         E-mail: markmga@aol.com  

Headquartered in Kent, United Kingdom, W Green Son & Waite
Limited manufactures general machinery.


WH SMITH: Fitch Withdraws Issuer Default Rating at BB-
------------------------------------------------------
Fitch Ratings has withdrawn WH Smith PLC's Issuer Default and
senior unsecured BB- and Short-term B ratings that were on
Rating Watch Negative.

Fitch will no longer provide rating coverage of WH Smith PLC.


* Moody Reports Increased EMEA CMBS Issuance in the First Half
--------------------------------------------------------------
The Commercial Mortgage-Backed Securities and multi-family bond
market in Europe, the Middle East and Africa grew at a healthy
pace in the first half of 2006, with issuance volume rising 8.3%
year-on-year to EUR18.0 billion.  The increase is all the more
impressive given that 2005 was a record year for CMBS issuance
in EMEA, says Moody's Investors Service in its 2006 First Half
Review and Second Half Outlook report on this market.  For 2006
as a whole, Moody's expects issuance volume to exceed EUR50
billion.

Moody's also notes that, while the number of CMBS and multi-
family transactions dropped marginally to 27 in H1 2006 from 28
in H1 2005, the average size rose to EUR664 million from EUR592
million.  The U.K. retained its leading position, in terms of
both volume and number of transactions, accounting for EUR8.8
billion in 13 deals.

"However, the most remarkable development was the sharp increase
in issuance from Germany, which totaled EUR4.9 billion, the same
level as was recorded in the whole of 2005," says Ifigenia
Palimeri, a Moody's Vice-President.

"Germany's share is anticipated to increase further in the
second half of 2006, due to some large transactions that came to
the market in July," she adds.

The next largest jurisdictions in terms of issuance volumes were
Italy with EUR1.7 billion and France with EUR880 million.
Ireland, meanwhile, made its first ever CMBS transaction in H1
2006, with EUR375 million of issuance.  Also notable was the
strength of pan-European transactions, five of which closed in
H1 2006, with Moody's anticipating a further increase in the
coming months as conduit lenders expand their operations into
additional countries.

In terms of asset composition, retail was the dominant property
type backing CMBS transactions in EMEA in H1 2006, overtaking
the office sector.  Three transactions involving UK retailer
Sainsbury's Supermarkets Ltd. contributed to the increase,
including the market's single largest deal -- the EUR1.74
billion Eddystone Finance plc transaction.

"Moody's expects the CMBS market to remain extremely strong in
the second half of the year, given the significant activity in
July," says Kamini Pithia, a Moody's Associate Analyst and co-
author of the report.

"The pipeline for the next few months is also solid."

Following the launch of two synthetic transactions during H1
2006, compared with none in H1 2005, the rating agency believes
that traditional balance sheet lenders will continue to use such
structures in the future, with a view to mitigating some of the
concerns raised by non-securitization-friendly clauses in
seasoned commercial loans.

Overall, while a greater contribution is expected from Germany,
especially from multi-family transactions, and from pan-European
transactions, CMBS loan origination in the U.K. is likely to
remain dominant.  Moody's expects issuance volume by year-end to
surpass EUR50 billion.

                           *********

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

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

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

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

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

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


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