TCREUR_Public/060811.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 11, 2006, Vol. 7, No. 159

                            Headlines


A U S T R I A

COMPACTBAD-ELEMENTBAU: Property Manager Says Insufficient Funds
EOS-TORE: Leoben Court Orders Closing of Business
HAMMERSCHMIDT MARTIN: Vienna Court Orders Closing of Business
KLAUS SCHOLZ: Property Manager Claims Insufficient Assets
PETROLEUM SUGHD: Tajikistan Court Rules on Bankruptcy

STABIL HOLZBAU: First Creditors' Meeting Slated for Aug. 22
TITAN: Vienna Court Orders Closing of Business


D E N M A R K

TDC A/S: Posts DKK561 Million Net Income in Second Quarter 2006


F I N L A N D

METSO CORP: Paper Unit to Rebuild Guangzhou Paper's PM 8 Machine


F R A N C E

REMY COINTREAU: Achieves 2.5% Sales Growth in First Quarter 2006
REMY COINTREAU: Shareholders Name Directors & Declares Dividends

* Moody's Says Eurotunnel Case Unlikely to Affect Guarantors


G E R M A N Y

ALERIS INT'L: S&P Places BB- Credit Rating on Watch Negative
AUTOHAUS BERNHARD: Claims Registration Ends September 5
CONSTRUCTIVE INNOVATION: Claims Registration Sept. 4
G P B GESELLSCHAFT: Claims Registration Ends September 9
HANS BROCKMANN: Claims Registration Ends September 6

P. K. PROJEKT: Claims Registration Ends September 7
RENZIEHAUSEN BAUGESELLSCHAFT: Claims Registration Ends Sept. 5
SC STITZ: Claims Registration Ends September 4
SIBBE ELEKTROANLAGENBAU: Claims Registration Ends September 1
TOPIC SPORT: Claims Registration Ends September 4

ZENTRUM FUER KOMPLEMENTARMEDIZIN: Filing of Claims Ends Sept. 6


G R E E C E

EMPORIKI BANK: Fitch Keeps Individual Rating at C/D
PIRAEUS BANK: Fitch Lifts Individual Rating to B/C from C


I T A L Y

AVAGO TECHNOLOGIES: Posts US$380M Net Revenue for Second Quarter
AVIO HOLDING: Buyout Spurs S&P to Place Rating on Watch Negative


K A Z A K H S T A N

ART-STUDIA: Creditors Must File Claims by Sept. 8
DOSTAR KLUB: Creditors Must File Claims by Sept. 11
METALLSNABSBYT: Creditors Must File Claims by Sept. 11
MONOLITNOYE DOMOSTROENIE: Claims Registration Ends Sept. 8
NURI: Claims Registration Ends Sept. 11

PROMTEHSERVIS: Proof of Claim Deadline Slated for Sept. 11
SOURANTA: Proof of Claim Deadline Slated for Sept. 11
STROISERVIS: Creditors' Claims Due Sept. 8
UST-KAMENOGORSKOYE PREDPRIATIE: Creditors' Claims Due Sept. 11
VTORRESURSY: Creditors' Claims Due Sept. 11


K Y R G Y Z S T A N

AKMALYK KOMUR: Creditors Must File Claims by Sept. 19


N E T H E R L A N D S

EUROPEAN MORTGAGE: Moody's Assigns Ba1 Rating to Class D Notes


N O R W A Y

FALCONBRIDGE LTD: Board Recommends Xstrata Offer to Shareholders


P O L A N D

BANK GOSPODARKI: Moodys' Lifts Financial Strength Rating to D-


R U S S I A

ALKEEVO-AGRO-KHIM-SERVICE: Court Starts Bankruptcy Supervision
ALTAIR: Tatarstan Court Starts Bankruptcy Supervision
KOLPASHEVSKAYA SHIPYARD: F. Voytsik to Manage Assets
NOVONIKOLAEVSKIY AGRO-SERVICE: Bankruptcy Supervision Starts
PRIARGUNSKOYE AUTO-TRANSPORT: Y. Yarygin to Manage Assets

RYBNO-SLOBODSKOYE: Court Names I. Gilyazov as Insolvency Manager
SHAKHUNSKIY WOOD-PROM-KHOZ: N. Vasilenko to Manage Assets
SIB-WOOL: Court Names N. Utochenko as Insolvency Manager
STERLITAMAKSKIY REINFORCED 1: S. Trofimov to Manage Assets
TAT-OIL-GAS-STROY: Court Starts Bankruptcy Supervision

TURGAY: Tatarstan Court Starts Bankruptcy Supervision
VOTKINSKOYE GRAIN: Court Names V. Devyatov as Insolvency Manager
VYATKA-FLAX: Court Names Y. Rozhkov as Insolvency Manager
ZIMUSHKA: Omsk Court Starts Bankruptcy Supervision


S W I T Z E R L A N D

CONVERIUM HOLDING: Earns US$62 Million for Second Quarter 2006


U K R A I N E

DINKOL: Mikolaiv Court Starts Bankruptcy Supervision
DONETSK' AGRICULTURAL: Court Starts Bankruptcy Supervision
GARBUZIVSKE: Sumi Court Names Sergij Vasilets as Liquidator
IMPEKS: Court Names Andrij Zharikov as Insolvency Manager
KOLOS: Cherkassy Court Starts Bankruptcy Supervision

NJSC NAFTOGAZ: Moody's Places Low-B Ratings Under Review
PODILLYA: Court Names District Tax Agency to Liquidate Assets
RODINA: Court Names L. Demets as Insolvency Manager
SPIVDRUZHNIST: Court Starts Bankruptcy Supervision
SOYUZ: Court Names District Tax Agency as Liquidator

TRANSENERGO-UKRAINE: Court Names L. Sirotenko as Liquidator
VIDRODZHENNYA: Hmelnitskij Court Starts Bankruptcy Supervision
ZAMOK: Court Names Sergij Pavluk as Insolvency Manager
ZHITLOBUD: Lviv Court Names Oksana Gentash as Liquidator
ZORINSK' AUTO 10965: Court Starts Bankruptcy Supervision


U N I T E D   K I N G D O M

BAA PLC: Grupo Ferrovial et. al Hold 97.07% of Issued Shares
BAA PLC: U.K. Airport Traffic Up 3.1% in July 2006
DRINKPLAY LIMITED: Names Administrators from Begbies Traynor
EASTMAN KODAK: Moody's Places Low-B Ratings Under Review
ENDACOTT MARKETING: Names Michael Colin John Sanders Liquidator

ENTERTAINMENT & LEISURE: Appoints J. N. Bleazard as Liquidator
FARA TECHNOLOGY: Creditors Confirm Liquidator's Appointment
FIRST 4 EXHIBITIONS: Brings In Vantis to Administer Assets
GENERAL MOTORS: Expects to Reach Job Cut Targets Ahead of Plan
HOME SUIT: Brings in T. Papanicola as Administrator

INFINITELY BETTER: Appoints Begbies Traynor as Administrators
JASON ENGINEERING: Hires Joint Liquidators from Tenon Recovery
JOHNSONS COMMERCIAL: Names Joint Liquidators to Wind Up Business
KWIK PROJECTS: Names Gagen Dulari Sharma as Administrator
MARKHAM COMMERCIALS: Creditors Confirm Voluntary Liquidation

MICROMIX SOLUTIONS: Appoints Joint Administrators from P&A
NEODOX COMPOSITES: Appoints Administrators from Abbot Fielding
NTL INC.: Eyes GBP8 Billion Private Equity Offer
NTL INC.: Posts GBP195.8 Mln Net Loss for Second Quarter 2006
PACKMANS FURNITURE: Taps Lloyd Biscoe to Liquidate Assets

PETER GRAHAM: Joint Liquidators Take Over Operations
PDS FURNISHINGS: Gagen Dulari Sharma Leads Liquidation Procedure
PROVALIS PLC: To Sell Medical Diagnostics Biz & Liquidate Assets
QUANTA CAPITAL: Credit Default Looms Over Waiver Deadline
QUANTA CAPITAL: Posts US$42.9 Million Net Loss in 2nd Quarter

R. C. EDMONDSON: Appoints Administrator from Ensors
ROYAL & SUNALLIANCE: Earns GBP238 Million for First Half 2006
ROYAL & SUNALLIANCE: Acquires Ireland's EGI Holdings Limited
RUBY FINANCE: Moody's Cuts Ba1 Ratings on Class A1 and A2 Notes
SKYLARK CO: Delisting JPY30-Bln Convertible Bonds From LSE

SOUTH COAST: Brings in Joint Liquidators from Recovery hjs
TWINCENTRIC LIMITED: Taps Baker Tilly to Administer Assets
UIC INSURANCE: Creditors Have Until Sept. 20 to Vote on Scheme
WERL ACCESSORIES: Appoints Ward & Co. as Joint Administrators

* Corporate Liquidations Down 7.4% in Second Quarter 2006
* Moody's Says Eurotunnel Case Unlikely to Affect Guarantors


                            *********

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


COMPACTBAD-ELEMENTBAU: Property Manager Says Insufficient Funds
---------------------------------------------------------------
Bernd Widerin, the court-appointed property manager for LLC
Compactbad-Elementbau (FN 63527y), declared on June 22 that the
Debtor's property is insufficient to cover creditors' claim.

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

Headquartered in Nueziders, Austria, the Debtor declared
bankruptcy on May 18 (Bankr. Case No. 14 S 61/05s).

The property manager can be reached at:

         Mag. Bernd Widerin
         City Hall Lane 6
         6700 Bludenz, Austria
         Tel: 05552/650930
         Fax: 05552/650936
         E-Mail: rechtsanwaelte@widerin.at


EOS-TORE: Leoben Court Orders Closing of Business
-------------------------------------------------
The Land Court of Leoben entered an order on June 22 closing the
business of LLC EOS-Tore (FN 87286m).  Court-appointed property
manager Helmut Fetz determined that the continuing operation of
the business would reduce the value of the estate.

The property manager can be reached at:

         Dr. Helmut Fetz
         Main Place 11
         8700 Leoben, Austria
         Tel: 03842-42751
         Fax: 03842-42751-40
         E-mail: office@fetz-fetz.at

Headquartered in Freienstein, Austria, the Debtor declared
bankruptcy on April 21 (Bankr. Case No. 17 S 31/06m).


HAMMERSCHMIDT MARTIN: Vienna Court Orders Closing of Business
-------------------------------------------------------------
The Trade Court of Vienna entered an order on June 22 closing
the business of KEG Hammerschmidt Martin (FN 212245a).  Court-
appointed property manager Raoul Wagner claimed that the
property of the Debtor is insufficient to cover creditors'
claim.

The property manager can be reached at:

         Dr. Raoul Wagner
         City Hall Road 15/4
         1010 Vienna, Austria
         Tel: 405 33 82
         Fax: 408 84 67
         E-mail: office@hopmeier.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 19 (Bankr. Case No. 4 S 85/06m).


KLAUS SCHOLZ: Property Manager Claims Insufficient Assets
---------------------------------------------------------
Dr. Stephan Riel, the court-appointed property manager for LLC
Klaus Scholz (FN 93990x), declared on June 22 that the Debtor's
property is insufficient to cover creditors' claim.

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

Headquartered in Vienna, the Debtor declared bankruptcy on
Aug. 18, 2005 (Bankr. Case No. 38 S 40/05t).  Johannes Jaksch
represents Dr. Riel in the bankruptcy proceedings.

The property manager and his representative can be reached at:

         Dr. Stephan Riel
         c/o Dr. Johannes Jaksch
         Reischachstrasse 3/12A
         1010 Vienna, Austria
         Tel: 7134433
         Fax: 7131033
         E-mail: kanzlei@jsr.at


PETROLEUM SUGHD: Tajikistan Court Rules on Bankruptcy
-----------------------------------------------------
Petroleum Sughd Ltd., the joint Austrian-Tajik limited liability
company, has been declared bankrupt for failing to fulfill its
obligations under Article 17 of the Law on Foreign Investments,
Tajik Asia Plus reports.

The Tajikistan Finance Ministry filed a suit at the Court for
Economic Crimes in early summer against the oil producer
claiming that the company's owners failed to fulfill obligations
involving statutory funds, Asia Plus relates.

Headquartered in Isfara, Tajikistan, Petroleum Sughd Ltd., set
up in September 2000, is comprised of 10 oil and gas fields.
According to the Tajikistan Energy Ministry, the joint venture's
estimated assets include two million tons of oil and three
billion cubic meters of natural gas.


STABIL HOLZBAU: First Creditors' Meeting Slated for Aug. 22
-----------------------------------------------------------
Creditors owed money by LLC Stabil Holzbau (FN 68628z) are
encouraged to attend the first creditors' meeting at 11:00 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 Zwentendorf an der Donau, Austria, the Debtor
declared bankruptcy on June 22 (Bankr. Case 14 S 96/06t).
Herbert Hoffmann serves as the court-appointed property manager
of the bankrupt estate.

The property manager can be reached at:

         Mag. Herbert Hoffmann
         Viennese Road 18
         3430 Tulln, Austria
         Tel: 02272/81929
         Fax: 02272/81929-20
         E-mail: mag.hoffmann@i-one.at


TITAN: Vienna Court Orders Closing of Business
----------------------------------------------
The Trade Court of Vienna entered an order on June 22 closing
the business of LLC Titan (FN 260519t).  Court-appointed
property manager Michael Neuhauser determined that the
continuing operation of the business would reduce the value of
the estate.

The property manager can be reached at:

         Mag. Michael Neuhauser
         Esslinggasse 9
         1010 Vienna, Austria
         Tel: 536 50-0
         Fax: 536 50-14
         E-mail: officewien@aaa-law.at

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 13 (Bankr. Case No. 28 S 39/06y).


=============
D E N M A R K
=============


TDC A/S: Posts DKK561 Million Net Income in Second Quarter 2006
---------------------------------------------------------------
TDC reported its financial results in the second quarter of
2006.

In the second quarter of 2006, net income, excluding special
items and fair value adjustments, totaled DKK561 million, down
58.9%, attributable to TDC's new capital structure.

In the second quarter of 2006, TDC's revenue grew 1.8% to
DKK11.6 billion compared with the second quarter of 2005,
boosted by an 11.8% increase in customer base to a total of 15.7
million.  In the past quarter, broadband customers on the
domestic market passed the important milestone of one million,
and TDC's domestic mobile customer base grew 7.2% to 2.6
million.

EBITDA decreased 0.7% to DKK3.2 billion due to intensified price
competition in the Swiss mobile market, higher customer
acquisition costs in the domestic mobile business, the
easyMobile and BitÚ Latvia start-ups, and the impact of the
Easter holidays falling in the second quarter of 2006 as opposed
to the first quarter of 2005.

TDC Solutions' revenue in the second quarter of 2006 increased
2.5% to DKK5.3 billion, and EBITDA amounted to DKK1.6 billion,
up 3.7%, due to a combination of disciplined cost control and
continued growth in the sale of broadband solutions, with the
number of xDSL customers reaching 776,000, up 25.2% on the same
quarter in 2005.

In TDC Mobile International, which includes mainly TDC Mobil
A/S, Telmore, Talkline and BitÚ, revenue in the second quarter
of 2006 amounted to DKK4 billion, up 5.5%, whereas EBITDA was
down 1.3% to DKK773 million.  Domestic mobile operations saw
revenue increase 8.7% to DKK1.9 billion, and EBITDA decrease
DKK580 million, down 3.3%, resulting in an EBITDA margin of
30.4% against 34.2% in the second quarter of 2005.

Despite a more restrictive definition of a prepaid customer, TDC
Mobil and Telmore acquired 166,000 new customers, and the number
of mobile minutes sold rose 10.7%.  Talkline's customer base
increased 20.2% to 3.5 million, and BitÚ almost doubled its
customer base to more than 2 million customers.  At the end of
the second quarter of 2006, easyMobile had 122,000 customers.

In the second quarter of 2006, TDC Switzerland had revenue of
DKK2.3 billion, down 2.8%, and EBITDA was down 7.9% to DKK570
million.  The number of mobile customers rose 5%, which was
partly offset by an 8% decrease in the number of landline
customers.  The number of xDSL customers grew 29.1%, whereas
Internet dial-up customers fell 42.1%.

TDC Cable TV continues to achieve double-digit growth.  In the
second quarter of 2006, revenue rose 15.4% to DKK606 million,
and EBITDA was up 17.5% to DKK148 million, reflecting a larger
customer base within both traditional cable TV and the broadband
businesses.  The number of Internet access customers is now
274,000, up 25.7%.

TDC's net interest-bearing debt amounted to DKK58.4 billion at
the end of the second quarter of 2006 compared with DKK33.6
billion at the end of the first quarter of 2005, reflecting
mainly dividends of DKK44.1 billion paid in the second quarter
of 2006.

TDC maintains its revenue, EBITDA and net income Outlook for
2006 presented in the first-quarter report for 2006.

"We continue the substantial increase in our customer base
through our focused positioning in the growth areas mobile and
broadband.  As a result of this focused strategy, we have passed
the important milestone of one million domestic broadband
customers.  Further, we are rapidly expanding our fiber coverage
of Denmark.  We maintain the earnings Outlook for 2006 with an
EBITDA growth of 3.1%," says Henning Dyremose, President and
CEO.

Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.com/-- provides communications solutions in
Denmark and is the second-largest telecommunications provider on
the Swiss market.  It has a presence in a number of select
markets in Northern and Central Europe due to its shareholdings
in major companies.

                        *     *     *

As reported in TCR-Europe on May 11, Fitch affirmed TDC A/S's
Issuer Default Rating at BB- with Stable Outlook and senior
secured bank facilities at BB+.

The various notes issued under TDC's EMTN program are affirmed
at BB-.

EMTN bonds rated BB-:

   -- DEM 5.0% notes due 2008;
   -- JPY 1.28% notes due 2008;
   -- EUR 5.625% notes due 2009; and
   -- EUR 6.5% notes due 2012.


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


METSO CORP: Paper Unit to Rebuild Guangzhou Paper's PM 8 Machine
----------------------------------------------------------------
Metso Paper, a subsidiary of Metso Corp., will rebuild the
newsprint paper machine PM 8 of Guangzhou Paper Co., Ltd. in the
Guangdong province of China.  The modernization is scheduled to
be completed in mid 2007.  The value of the order is EUR15
million.

Metso's delivery will include a forming section rebuild,
modernization of the press and dryer sections and a new soft
calendar.  The paper machine has a wire width of 8.7 meters, a
design speed of 1,100 m/min and it will produce over 500 tons of
newsprint daily.

Guangzhou Paper is one of the oldest newsprint makers in China.
It is also the mill to which Metso Paper made its first paper
machine delivery in the People's Republic of China 50 years ago.
Guangzhou Paper operates five newsprint machines with a combined
production capacity of 470,000 t/a.

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

                        *     *     *

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


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


REMY COINTREAU: Achieves 2.5% Sales Growth in First Quarter 2006
----------------------------------------------------------------
Remy Cointreau disclosed its first quarter sales for the period
between April and June 2006.

The company said it has achieved organic sales growth of 2.5% to
EUR149.3 million for the first quarter of the 2006/07 financial
year.  The operations from the Bols Hungary subsidiary, which
was sold to CEDC on July 12 are now excluded.  On the basis of
published data, growth was 3.8%.

There was an acceleration in sales across all divisions in the
third quarter, with the US and China continuing their commercial
momentum.

Cognac

Remy Martin recorded good sales growth, surpassing the strong
first quarter of 2005/06.  Excellent results by the Fine
Champagne superior qualities in Asia (China) and Europe (Russia)
confirm the high potential of these superior categories in these
markets.

Liqueurs & Spirits

Divisional sales increased in all geographic areas, with faster
growth in the US by Cointreau and in Europe by Passoa and St.
Remy.

Champagne

Piper-Heidsieck and Charles Heidsieck experienced remarkable
growth and contributed the majority of the 15% increase recorded
for the first quarter of 2005/06.  Piper-Heidsieck performed
extremely well in Asia, particularly in Japan.

Partner Brands

The growth in Scotch Whisky slowed in the US, while California
wines (Merryvale) recorded a strong increase.  The decline in
sales during the first quarter was primarily due to Maxxium
taking over, last October, the distribution contracts for the
German duty-free market, which were previously managed by a
Group subsidiary.

These results for the start of the year are fully in line with
Remy Cointreau's value strategy and its objective of double-
digit organic growth in current operating profit for the 2006/07
financial year.

Headquartered in Cognac, France, Remy Cointreau --
http://www.remycointreau.com/-- offers a range of premium wine
and spirit brands, known and recognized throughout the world.
These brands include, among others, Remy Martin, Cointreau,
Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper-
Heidsieck.

                        *     *     *

Remy Cointreau's senior unsecured debt carries a Ba2 rating from
Moody's Investors Service since 2003.  Standard & Poor's rated
the Company's issuer credit at BB- in 2004.


REMY COINTREAU: Shareholders Name Directors & Declares Dividends
----------------------------------------------------------------
Shareholders of Remy Cointreau reappointed Francois Heriard
Dubreuil as director.  They also appointed Directors Jacques-
Etienne de T'Serclaes and Gabriel Hawawini to replace Pierre
Cointreau and Jurgen Reitmitz, who were appointed honorary
chairman of Remy and Censor respectively.

The appointments were held during the combined general meeting
of shareholders on July 27 in Reims.  The meeting also approved
the distribution of a EUR1.10 per share dividend, which will be
fully paid in cash, payable from July 31, 2006.

Headquartered in Cognac, France, Remy Cointreau --
http://www.remycointreau.com/-- offers a range of premium wine
and spirit brands, known and recognized throughout the world.
These brands include, among others, Remy Martin, Cointreau,
Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper-
Heidsieck.

                        *     *     *

Remy Cointreau's senior unsecured debt carries a Ba2 rating from
Moody's Investors Service since 2003.  Standard & Poor's rated
the Company's issuer credit at BB- in 2004.


* Moody's Says Eurotunnel Case Unlikely to Affect Guarantors
------------------------------------------------------------
Moody's Investors Service published a report that provides
additional detail on the rationale for its prior announcement
that the bankruptcy of Eurotunnel is unlikely to affect the
ratings of those financial guarantors with exposure to the
entity (MBIA Insurance Corporation, Ambac Assurance Corporation,
Assured Guaranty Corporation and RAM Reinsurance Company Ltd).

The report describes Eurotunnel's capital structure and the
guarantors' exposure to the firm.  It estimates the potential
losses to the guarantors based on various values of Eurotunnel
assuming a strict interpretation of priority-of-claims rules,
and finds that the guarantors can withstand such losses at
current rating levels.

According to Moody's the bankruptcy filing of Eurotunnel is
likely to have a limited impact on the credit profile of the
financial guaranty insurance companies that have exposure to the
firm.

"A review of the guarantors' exposure to Eurotunnel shows that
their relatively senior position in the company's capital
structure, in combination with other credit enhancements, limits
the likelihood of significant ultimate losses relative to their
capital resources" explained Stanislas Rouyer, Senior Vice
President and author of the report.

Claims occurring as a result of the Safeguard Procedure-related
debt-service moratorium should be manageable given the
guarantors' strong liquidity positions.

Jack Dorer, Managing Director, commented that the current
situation at Eurotunnel illustrates that "corporate
restructurings are, by their nature, messy and somewhat
unpredictable, and that guarantors should remain cautious when
looking at transactions with high restructuring risks, even when
the economics and structural protections seem attractive."

Moody's recognizes that the situation is evolving and will
continue to monitor events as they unfold.


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G E R M A N Y
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ALERIS INT'L: S&P Places BB- Credit Rating on Watch Negative
------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit and other ratings on Beachwood, Ohio-based Aleris
International Inc. on CreditWatch with negative implications.

The rating action follows the announcement that Texas Pacific
Group has come to an agreement to acquire the outstanding stock
of Aleris for approximately US$1.7 billion plus assume or repay
approximately US$1.6 billion of debt.  The CreditWatch placement
reflects our concerns of additional debt in the capital
structure.  Details of Texas Pacific's financing for this
acquisition were not disclosed.

Aleris produces aluminum alloys, aluminum sheet, zinc oxide, and
zinc dust.  The company also recycles aluminum and zinc.  On
Aug. 1, 2006, Aleris completed the purchase of the downstream
aluminum business of Corus Group PLC for approximately US$887
million.  Texas Pacific is a private investment firm with more
than US$30 billion of assets under management.

"Standard & Poor's could lower the ratings if financial leverage
materially increases.  The ratings could be affirmed if
financial leverage remains unchanged after the acquisition and
Standard & Poor's continues to expect financial leverage to
decline to less than 4x," said Standard & Poor's credit analyst
Marie Shmaruk.

Resolution of the CreditWatch will entail a review of Texas
Pacific's financial policies and Aleris' final capital
structure.  The transaction is expected to close early in 2007
pending the receipt of stockholder approval, the expiration of
the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, and the satisfaction of other
customary closing conditions.


AUTOHAUS BERNHARD: Claims Registration Ends September 5
-------------------------------------------------------
Creditors of Autohaus Bernhard Buck GmbH have until Sept. 5 to
register their claims with court-appointed provisional
administrator Frank Kreuznacht.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Sept. 26 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Room 13 B
         Gerichtsstr. 2-6
         48149 Muenster, 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 Muenster opened bankruptcy proceedings
against Autohaus Bernhard Buck GmbH on July 12.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Autohaus Bernhard Buck GmbH
         Waterstroate 17
         48231 Warendorf, Germany

         Attn: Bernhard Buck, Manager
         Bremen Road 9
         48231 Warendorf, Germany

The administrator can be contacted at:

         Dr. Frank Kreuznacht
         Wolbecker Windmill 15 a
         48167 Muenster, Germany


CONSTRUCTIVE INNOVATION: Claims Registration Sept. 4
----------------------------------------------------
Creditors of Constructive Innovation Dernier 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 9:00 a.m. on Sept. 28 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bonn
         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 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
Constructive Innovation Dernier GmbH on July 4.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Constructive Innovation Dernier GmbH
         Attn: Rolf Dernier, Manager
         Old Road 2a
         53604 Bad Honnef, Germany

The administrator can be contacted at:

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


G P B GESELLSCHAFT: Claims Registration Ends September 9
--------------------------------------------------------
Creditors of G P B Gesellschaft fuer Projektentwicklung und
Baubetreuung mbH have until Sept. 9 to register their claims
with court-appointed provisional administrator Christoph
Schulte-Kaubruegger.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Oct. 12 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany

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

The District Court of Dortmund opened bankruptcy proceedings
against G P B Gesellschaft fuer Projektentwicklung und
Baubetreuung mbH on July 19.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be contacted at:

         G P B Gesellschaft fuer Projektentwicklung und
         Baubetreuung mbH
         Spissenagelstr. 22a
         44265 Dortmund, Germany

         Attn: Klaus Quambusch, Liquidator
         Sauerlander Str. 5
         44265 Dortmund, Germany

The administrator can be contacted at:

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


HANS BROCKMANN: Claims Registration Ends September 6
----------------------------------------------------
Creditors of Hans Brockmann GmbH have until Sept. 6 to register
their claims with court-appointed provisional administrator
Stephan Thiemann.

Creditors and other interested parties are encouraged to attend
the meeting at 12:00 noon 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 Muenster
         Meeting Room 13 B
         Gerichtsstr. 2-6
         48149 Muenster, 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 Muenster opened bankruptcy proceedings
against Hans Brockmann GmbH on July 19.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         Hans Brockmann GmbH
         Attn: Hans Brockmann, Manager
         Reichenbacher Road 23
         48231 Warendorf, Germany

The administrator can be contacted at:

         Dr. Stephan Thiemann
         Lublinring 12
         48147 Muenster, Germany


P. K. PROJEKT: Claims Registration Ends September 7
---------------------------------------------------
Creditors of P. K. Projekt-Service Baubetreuung GmbH have until
Sept. 7 to register their claims with court-appointed
provisional administrator Olaf Seidel.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on Sept. 28 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden, 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 Dresden opened bankruptcy proceedings
against P. K. Projekt-Service Baubetreuung GmbH on July 11.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         P. K. Projekt-Service Baubetreuung GmbH
         Wiener Str. 60
         01219 Dresden, Germany

The administrator can be contacted at:

         Olaf Seidel
         Weisseritzstrasse 3
         01067 Dresden, Germany


RENZIEHAUSEN BAUGESELLSCHAFT: Claims Registration Ends Sept. 5
--------------------------------------------------------------
Creditors of Renziehausen Baugesellschaft mbH have until Sept. 5
to register their claims with court-appointed provisional
administrator Rainer Eckert.

Creditors and other interested parties are encouraged to attend
the meeting at 8:00 a.m. on Oct. 10 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hanover
         Hall 226
         2nd Floor
         Office Building
         Hamburg Avenue 26
         30161 Hanover, Germany

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

The District Court of Hanover opened bankruptcy proceedings
against Renziehausen Baugesellschaft mbH on July 13.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Renziehausen Baugesellschaft mbH
         Attn: Kaufmann Dieter Renziehausen, Manager
         Schulenburger Highway 128
         30165 Hanover, Germany

The administrator can be contacted at:

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


SC STITZ: Claims Registration Ends September 4
----------------------------------------------
Creditors of SC Stitz Computer GmbH have until Sept. 4 to
register their claims with court-appointed provisional
administrator Peter C. Darr.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 4 at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of 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 SC Stitz Computer GmbH on July 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be contacted at:

         SC Stitz Computer GmbH
         Gutenbergstr. 8
         85737 Ismaning, Germany

The administrator can be contacted at:

         Peter C. Darr
         Candidplatz 1
         81543 Munich, Germany
         Tel: 089/61469638
         Fax: 089/61469666


SIBBE ELEKTROANLAGENBAU: Claims Registration Ends September 1
-------------------------------------------------------------
Creditors of Sibbe Elektroanlagenbau GmbH have until Sept. 1 to
register their claims with court-appointed provisional
administrator Sebastian Henneke.

Creditors and other interested parties are encouraged to attend
the meeting at 11:15 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 Dortmund
         Hall 3.201
         2nd Floor
         Court Place 1
         44135 Dortmund, Germany

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

The District Court of Dortmund opened bankruptcy proceedings
against Sibbe Elektroanlagenbau GmbH on July 11.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         Sibbe Elektroanlagenbau GmbH
         Attn: Christian Sibbe, Manager
         Neu-Iserlohn-Str. 17
         33288 Dortmund, Germany

The administrator can be contacted at:

         Dr. Sebastian Henneke
         Hansastrasse 61
         44137 Dortmund, Germany


TOPIC SPORT: Claims Registration Ends September 4
-------------------------------------------------
Creditors of Topic Sport-Projekt und Verwaltung GmbH have until
Sept. 4 to register their claims with court-appointed
provisional administrator Angela Gerigk.

Creditors and other interested parties are encouraged to attend
the meeting at 9:40 a.m. on Sept. 25 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 Essen
         Hall 293
         2nd Floor
         Principal Establishment
         Gelber Bereich
         Zweigertstr. 52
         45130 Essen, Germany

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

The District Court of Potsdam opened bankruptcy proceedings
against Topic Sport-Projekt und Verwaltung GmbH on July 17.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Topic Sport-Projekt und Verwaltung GmbH
         Kruppstr. 82 - 100
         45145 Essen, Germany

         Attn: Wolfgang Meinhardt, Manager
         Klosterstr. 146
         46282 Dorsten, Germany

The administrator can be contacted at:

         Angela Gerigk
         Katharinenstr. 7
         46282 Dorsten, Germany
         Tel: 02362/993480
         Fax: 02362/993481


ZENTRUM FUER KOMPLEMENTARMEDIZIN: Filing of Claims Ends Sept. 6
---------------------------------------------------------------
Creditors of Zentrum fuer Komplementarmedizin GmbH have until
Sept. 6 to register their claims with court-appointed
provisional administrator Stefan Meyer.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Bielefeld
         Hall 4065
         4 Ebene
         Court Route 6
         33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings
against Zentrum fuer Komplementarmedizin GmbH on July 17.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be contacted at:

         Zentrum fuer Komplementarmedizin GmbH
         Attn: Peter Ferdinand Giesen, Manager
         Rolandstr. 16
         32547 Bad Oeynhausen, Germany

The administrator can be contacted at:

         Stefan Meyer
         Ostertorstr. 7
         32312 Luebbecke, Germany


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


EMPORIKI BANK: Fitch Keeps Individual Rating at C/D
---------------------------------------------------
Fitch Ratings upgraded Emporiki Bank's Issuer Default rating at
A+ from BBB, its Short-term rating to F1 from F3 and its Support
rating to 1 from 2 and removed them from Rating Watch Positive.
A Stable Outlook is assigned.  The bank's Individual rating is
affirmed at C/D.

At the same time, Fitch upgraded Emporiki's subordinated debt to
A from BBB- in line with Fitch's notching policy.  The IDR,
Short-term rating and Support rating were placed on Rating Watch
Positive on June 13.

The rating actions follow the acquisition of a controlling
71.97% stake in Emporiki by the French bank, Credit Agricole
through its central body (Credit Agricole S.A., rated AA/Stable
Outloo/F1+), which is the ultimate shareholder of the Greek
bank.  The degree of the upgrade of Emporiki's IDR, Short-term
and Support ratings reflects Fitch's view of the extremely high
probability of support from CA S.A. in case of need.

Fitch also indicates that there could be further uplift
potential of Emporiki's IDR and Short-term rating should CA S.A.
be upgraded or increase its participation in the Greek bank or
if Emporiki were to become more integrated into the French
group.

Upside potential for Emporiki's Individual rating is dependent
on the bank consolidating its improving trend in its retail
franchise, profitability and asset quality and the subsequent
involvement of CA in the bank's management.  Emporiki's
Individual rating reflects its well-established position in the
Greek banking system, healthy revenue generation and improved
capital base.

In Fitch's opinion, Emporiki will benefit from a strong
international financial group such as CA as it should help it to
further improve its retail franchise, risk management systems,
operating profitability and productivity and cost efficiency.

Fitch also recognizes Emporiki's efforts made in the last three
years to improve its relatively lackluster profitability by
overhauling the image of the bank, strengthening sales
functions, simplifying procedures, upgrading IT systems,
developing new products and rationalizing costs.

A more focused strategy for improving Emporiki's retail
franchise and overall performance has yielded greater commercial
dynamism, as evidenced in the results for 2005 and Q106.  Rising
revenues from solid growth in higher-margin retail lending and
fee-based business supported the latter, cost efficiency gains
from voluntary staff early retirements and lower loan impairment
charges.

The bank's effort to enhance credit risk controls is viewed
positively and further improvements are expected with the
influence of CA.  However, rapid retail loan growth is raising
Emporiki's risk profile.  In addition, much of the portfolio is
young and has yet to be tested in an economic downturn. Impaired
loans accounted for 5.3% of total loans at end-Q106.

Liquidity is good, supported by a large deposit base and limited
access to wholesale funding.  Although it has been restored,
Emporiki's capital base is reasonable considering the level of
impaired loans and business growth.


PIRAEUS BANK: Fitch Lifts Individual Rating to B/C from C
---------------------------------------------------------
Fitch Ratings upgraded Piraeus Bank's Individual rating to B/C
from C.  At the same time the agency changed the bank's Outlook
to Positive from Stable.  The other ratings have been affirmed
at Issuer Default BBB+, Short-term F2 and Support 3.

The rating actions reflect PB's strengthening position within
the Greek banking market, better profitability and cost
efficiency, and improvements to its credit risk management and
asset quality.  The ratings also reflect its satisfactory
capital base but also its growing retail credit portfolio, which
has yet to experience a full credit cycle.

Should PB continue to grow its domestic franchise, maintain
profitability and cost efficiency, and continue to build a
longer track record in managing its retail credit exposure and
expansion in South Eastern Mediterranean region, the Issuer
Default rating is likely to be upgraded.

Traditionally a bank catering for SME, PB has strongly expanded
its retail lending, which has underpinned good revenue
generation.  Together with productivity gains, this has led to
steadily improving profitability, which is likely to continue
for at least two years on the back of continued good prospects
for domestic loan growth.  Trading revenues have become less
important, adding stability to PB's revenue profile.

Despite increasing costs relating to its growing branch network
and recent small acquisitions, PB's cost-to-income ratio - at
54% in June 2006 - is improving.  This reflects efficiency-
enhancing investments in IT systems, a leaner staffing of its
new branches, and most notably, strong revenue generation.
However, cost control remains a key challenge in view of further
branch expansions in and outside Greece and some margin pressure
in certain loan products due to fierce competition.

With business loans now representing two thirds of its balance
sheet and retail loans expanding at a fast pace, PB is mostly
exposed to credit risk.  In addition, its unseasoned retail loan
book heightens the bank's risk profile.

However, PB's risk management systems are being improved and
systems of the recently acquired banks in the South-Eastern
Mediterranean region are being integrated into the group.
Exposure to this region remains modest. PB's impaired loans
represented a reasonable 2.9% of total loans at end-June 2006,
while loan loss coverage was satisfactory at 80%.

Despite pressure from strong loan growth, PB's liquidity is
supported by rising retail deposits and access to capital
markets with different maturity tenors.  Fitch considers PB to
have a satisfactory capital base, in light of its rapid loan
growth and its ability to absorb potential future credit losses.
It reported a Tier 1 ratio of 8.4% at end-June 2006.

PB is Greece's fourth largest banking group by total assets with
480 branches (288 in Greece) and 8,747 staff at end-June 2006.
During 2005, acquisitions in Bulgaria, Serbia and Egypt
increased its presence in the South-Eastern Mediterranean
region.  The bank is listed on the Athens Stock Exchange and has
a diversified shareholder base.  In 1Q06, PB unwound its cross-
shareholding with Dutch ING Group, although co-operation remains
in bancasurrance and asset management activities.


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


AVAGO TECHNOLOGIES: Posts US$380M Net Revenue for Second Quarter
----------------------------------------------------------------
Avago Technologies Limited has disclosed its unaudited financial
results for the second quarter of fiscal 2006, ended April 30,
2006.

The results as presented in the release exclude, for the second
quarter and first quarter of fiscal 2006, revenue, costs and
expenses related to the company's Storage and Printer ASICs
operations, sold on February 28 and May 1, 2006, respectively.

Net revenue for the second quarter was US$380 million, compared
with US$396 million in the first quarter of fiscal 2006.
Including amortization of intangibles, gross margin for the
second quarter was 32%, compared with 22% in the first quarter.
Second quarter operating expenses, including amortization of
intangibles, were US$142 million.  This compares with first
quarter operating expenses of US$159 million.

Adjusted EBITDA in the second quarter was US$68 million.  This
compares with stronger than anticipated Adjusted EBITDA of US$91
million for the first quarter, which reflected lower costs
associated with the early stages of corporate infrastructure
development.

Cash balances at the end of April 2006 were approximately US$210
million, up from approximately US$169 million at the end of
January.

"I am very pleased with the execution of our transition plans
and the progress made to date at improving our operating
performance," said Hock E. Tan, President and Chief and
Executive Officer of Avago Technologies.  "We generated
substantial cash from operations during the second quarter,
which combined with the proceeds from our divested businesses
enabled us to pay off all term loans by May 19, significantly
strengthening our capital structure."

A full-text copy of the Company's Financial Report is available
at no charge at:

      http://bankrupt.com/misc/tcrap_avagotech080706.pdf

                      About Avago Tech

Headquartered both in San Jose, CA, and in Singapore, Avago
Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/--
is the world's largest privately held semiconductor company,
with approximately 6,500 employees worldwide.  Avago provides an
extensive range of analog, mixed-signal and optoelectronic
components and subsystems to more than 40,000 customers.  The
company's products serve four end markets: industrial and
automotive, wired networking, wireless communications, and
computer peripherals.

Worldwide Design, Manufacturing and Marketing Centers in the
United States, Italy, Germany, Malaysia, Singapore, Korea, China
and Japan.

Avago Technologies is the successor to the Semiconductor
Products Group of Agilent.  Avago Technologies purchased the
business of SPG as of December 1, 2005, for US$2.6 billion in
cash.

                          *     *     *

As the Troubled Company Reporter reported on November 7, 2005,
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Avago Technologies Holdings Pte. Ltd.  The
outlook is positive.  At the same time, Avago's proposed US$975
million first-lien senior secured bank facility was rated 'B+'
with a recovery rating of '1', indicating a high expectation for
full recovery of principal in the event of a payment default.
Avago Technologies Finance Pte Ltd. and Luxembourg Finance Co.
are borrowers under the loan.  In addition, Standard & Poor's
assigned its 'B' rating to Avago's proposed US$375 million of
senior unsecured notes and US$375 million of senior unsecured
floating-rate notes.  Lastly, Avago's proposed US$250 million of
senior subordinated notes were assigned a 'CCC+' rating.  Avago
Technologies Finance Pte Ltd., Avago Technologies U.S. Inc., and
Avago Technologies Wireless Manufacturing Inc. are co-issuers of
the notes.


AVIO HOLDING: Buyout Spurs S&P to Place Rating on Watch Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' long-term
corporate credit ratings on Italian-based aerospace group Avio
Holding SpA and its ultimate parent Aero Invest 1 S.A. on
CreditWatch with negative implications, following the
announcement that the company will be acquired by the private
equity sponsor Cinven.

"The CreditWatch placement reflects our concerns that Avio's
financial profile might no longer be adequate for the 'B'
rating, following the announcement that Cinven will purchase the
company from the Carlyle group through a secondary buyout for an
enterprise value of EUR2.57 billion," said Standard & Poor's
credit analyst Werner Stńblein.

Cinven is expected to acquire Carlyle's 70% stake in Avio and a
further 15% stake from Finmeccanica SpA, which currently holds
the remaining 30% in Avio.  The transaction is subject to final
approval by the relevant competition authorities and is expected
to be closed in October 2006.

The rating on Avio reflects the Italian aerospace group's
exposure to the volatile civil aviation market, its high degree
of transaction currency exposure, and very aggressive financial
profile.  Avio benefits, however, from strong niche market
positions, the high technological content of its products, and
its participation in less cyclical military programs.

Avio's reported and unadjusted EBITDA for the 12 months to
March 31, 2006, amounted to EUR196.6 million.  Pro forma fully
adjusted net debt to EBITDA for the 12 months to March 31, 2006,
was 5.3x and could increase depending on the acquirer's planned
financial strategy.

"Standard & Poor's will discuss the effect of the change in
ownership on Avio's business strategy and financial risk profile
with the company in the near future, with a view to resolving
the CreditWatch status," said Mr. Stńblein.


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


ART-STUDIA: Creditors Must File Claims by Sept. 8
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP Art-Studia insolvent.

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

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


DOSTAR KLUB: Creditors Must File Claims by Sept. 11
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty Region
declared LLP Dostar Klub (RNN 09160000342) insolvent on June 19.
Subsequently, bankruptcy proceedings were introduced at the
company.

Creditors have until Sept. 11 to submit written proofs of claim
to:

         LLP Dostar Klub
         Zelenaya Str. 40
    Baiserke
    Ilisky District
    Almaty Region
    Kazakhstan
    Tel: 8 (3333) 15-19-66


METALLSNABSBYT: Creditors Must File Claims by Sept. 11
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Metallsnabsbyt insolvent on June 15.

Creditors have until Sept. 11 to submit written proofs of claim
to:

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


MONOLITNOYE DOMOSTROENIE: Claims Registration Ends Sept. 8
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau Region
declared LLP Monolithic House Building Monolitnoye Domostroenie
insolvent.

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

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


NURI: Claims Registration Ends Sept. 11
---------------------------------------
CJSC Nuri has declared insolvency.  Creditors have until
Sept. 11 to submit written proofs of claim to:

         CJSC Nuri
         Zelenyi Side Str. 8
    Aktobe
    Aktobe Region
    Kazakhstan


PROMTEHSERVIS: Proof of Claim Deadline Slated for Sept. 11
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Firm Promtehservis insolvent on June 15.

Creditors have until Sept. 11 to submit written proofs of claim
to:

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


SOURANTA: Proof of Claim Deadline Slated for Sept. 11
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region declared LLP Souranta insolvent.

Creditors have until Sept. 11 to submit written proofs of claim
to:

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


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

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

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


UST-KAMENOGORSKOYE PREDPRIATIE: Creditors' Claims Due Sept. 11
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared OJSC Ust-Kamenogorskoye Predpriatie
Tehnicheskogo Obespechenia Ust-Kamenogorskoye Enterprise of
Technical Maintenance insolvent on June 14.

Creditors have until Sept. 11 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Proletarskaya Str. 93-47
    Ust-Kamenogorsk
         East Kazakhstan Region
    Kazakhstan


VTORRESURSY: Creditors' Claims Due Sept. 11
-------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region declared LLP Ust-Kamenogorskoye Production and Purchasing
Enterprise Vtorresursy insolvent on June 14.

Creditors have until Sept. 11 to submit written proofs of claim
to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan Region
         Proletarskaya Str. 93-47
    Ust-Kamenogorsk
    East Kazakhstan Region
    Kazakhstan


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


AKMALYK KOMUR: Creditors Must File Claims by Sept. 19
-----------------------------------------------------
JSC Akmalyk Komur has declared insolvency.  Creditors have until
Sept. 19 to submit written proofs of claim to:

         Kurmanjan Datka Str. 5
    Osh, Kyrgyzstan
    Tel:  (+996 3222) 2-51-56


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


EUROPEAN MORTGAGE: Moody's Assigns Ba1 Rating to Class D Notes
--------------------------------------------------------------
Moody's Investors Service assigned these definitive long-term
credit ratings to four classes of Notes issued by European
Mortgage Securities (E.M.S.) VII B.V.:

   -- Class A1, EUR3,023.3 Million Senior Class A1 Notes due
2038: Aaa;

   -- Class B, EUR142.4 Million Mezzanine Class B Notes due
2038: Aa2;

   -- Class C, EUR75.4 Million Mezzanine Class C Notes due
2038: A2; and

   -- Class D, EUR108.9 Million Subordinated Class D Notes due
2038: Ba1.

This transaction represents the eight securitization of Dutch
residential mortgage loans originated by ABN AMRO Bank N.V. and
the sixth under the E.M.S. program.

The Notes are secured on the assignment of Dutch Residential
Mortgages to the Issuer and the security assignments closely
follow the security structure observed in other Dutch
Residential Mortgage-Backed transactions.

The Notes are issued out of the second compartment (Compartment
2006-II) of issuer EMS VII B.V.  The Issuer may in the future
issue notes out of different compartments.  All compartments
will be bankruptcy-remote, ring-fenced from each other and the
assets in each compartment will be fully segregated.

The Reserve Fund is 0.5 per cent of the original aggregate
balance of the Class A1, B, C and D Notes at closing. The
transaction is non-revolving.  A large part of the portfolio
includes mortgage loans, which have missing information on
ranking.  Additional credit enhancement has been included in the
structure to mitigate the risk of a higher loss severity on the
second lien mortgage loans.

The transaction benefits from a swap agreement with ABN AMRO to
hedge the interest rate risk over the entire term of the
transaction.  An Excess Margin of 25 bps in the transaction is
guaranteed through the operation of the interest rate swap.  The
2 per cent liquidity facility and the GIC are provided by ABN
AMRO.

The definitive ratings address the expected loss posed to
investors by the legal final maturity.  In Moody's opinion, the
structure allows for the timely payment of interest and ultimate
payment of principal by the legal final maturity.


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


FALCONBRIDGE LTD: Board Recommends Xstrata Offer to Shareholders
----------------------------------------------------------------
The Board of Directors of Falconbridge Limited recommends that
Falconbridge shareholders tender their shares to the offer made
by the Anglo-Swiss mining company, Xstrata plc.

Under the terms of its offer amended July 19, 2006, Xstrata
offered to purchase all of the outstanding common shares of
Falconbridge it does not already own for CDN$62.50 per
Falconbridge share.  The offer expires at 8:00 p.m. (Toronto
time) on August 14, 2006, and among other things, remains
conditional on approval from Xstrata shareholders.

With the termination of the Support Agreement between Inco and
Falconbridge, Falconbridge's Board of Directors examined
alternatives for the Company, including the possibility of other
potential acquirers of Falconbridge.  The Board is satisfied
that it is unlikely that an offer more attractive than Xstrata's
will emerge.

"Xstrata currently owns 24.5% of Falconbridge and since its
offer is for any or all shares of Falconbridge, it appears
likely that it will attract sufficient shares to gain effective
control of Falconbridge on August 14," said Derek Pannell,
Falconbridge's Chief Executive Officer. "Although Xstrata has
consistently stated its desire to own 100% of Falconbridge,
there can be no assurance that shareholders who do not accept
the Xstrata offer on or before August 14, 2006, will be able to
sell their shares to Xstrata for cash at CDN$62.50 at some later
date. Accordingly, the Falconbridge Board of Directors
recommends that shareholders tender their shares to this offer
in order to realize the value of their Falconbridge shares."

"Furthermore, I believe Xstrata is a well-run company that
values both the physical assets and the human expertise within
Falconbridge," said Pannell. "The commitments Xstrata announced
on July 25 relating to locating Xstrata Nickel as well as copper
and zinc offices in Toronto, job protection, research and
development and continued investment in Canada are reassuring to
Falconbridge employees."

                       About Xstrata

Xstrata plc (LSE: XTA) -- http://www.xstrata.com/-- is a major
global diversified mining group, listed on the London and
Swissstock exchanges.  The Group is and has approximately 24,000
employees worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the U.K. and Canada.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

                        *    *    *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.


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


BANK GOSPODARKI: Moodys' Lifts Financial Strength Rating to D-
--------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Bank Gospodarki Zywnosciowej to D- from E+.  The
outlook for the rating is stable.  The long- and short-term
deposit ratings of A2/P-1 are unchanged and remain underpinned
by expected support from Rabobank, which owns 35.3% of BGZ, and
the European Bank for Reconstruction and Development, which has
a 15% stake in the bank.

Moody's commented that the upgrade of the BFSR to D- from E+
reflects several positive developments since the acquisition by
Rabobank and the EBRD of a 50.3% stake in BGZ at the end of
2004, and the expectation that these trends will continue in the
future.

Moody's highlighted these trends as:

   -- the strengthening of the bank's risk management function;

   -- improvements in its lending practices, which are gradually
being aligned with those of Rabobank;

   -- improvements in asset quality;

   -- the development and launch of new commercial initiatives
aimed at revitalizing the bank's corporate and retail
businesses, including the implementation of
rationalization and upgrading initiatives in respect of
the branch network, although such developments are not
expected to translate into swift revenue growth.

The upgrade of BGZ's BFSR also reflects our expectation that the
restructuring of the bank, which is being implemented with the
support of Rabobank, in particular, will translate into
significant improvements in its financial fundamentals over the
medium-term, said Moody's.

Moody's cautioned that the D- BFSR is likely to remain stable
for some time as the bank continues to face a number of
challenges.  In particular, BGZ needs to reorganize and
implement new business processes throughout 2006/2007 as part of
the adoption of a more efficient business model, the bank's
franchise remains weak in corporate and retail banking compared
to that of peers, in an environment that remains very
competitive, and finally, the bank's financial fundamentals
remain weak, even in comparison with most D- rated peers.


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


ALKEEVO-AGRO-KHIM-SERVICE: Court Starts Bankruptcy Supervision
--------------------------------------------------------------
The Arbitration Court of Tatarstan Republic has commenced
bankruptcy supervision procedure on OJSC Alkeevo-Agro-Khim-
Service.

The case is docketed under Case No. A65-8215/2006-SG4-16.

The Temporary Insolvency Manager is:

         A. Khusainov
         Kazan, Post User Box 85
         420029 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         OJSC Alkeevo-Agro-Khim-Service
         B. Mataki
         Alkeevskiy Region
         422930 Tatarstan Republic
         Russia


ALTAIR: Tatarstan Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Arbitration Court of Tatarstan Republic has commenced
bankruptcy supervision procedure on CJSC Agro Company Altair.
The case is docketed under Case No. A65-8424/2006-SG4-31.

The Temporary Insolvency Manager is:

         A. Mikhaylov
         Post User Box 265
         Kazan
         420029 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         CJSC Agro Company Altair
         Yubileynaya Str. 31/2
         Zelenodolskiy Region
         422520 Tatarstan Republic
         Russia


KOLPASHEVSKAYA SHIPYARD: F. Voytsik to Manage Assets
----------------------------------------------------
The Arbitration Court of Tomsk Region appointed Mr. F. Voytsik
as Insolvency Manager for OJSC Kolpashevskaya Shipyard.  He can
be reached at:

         F. Voytsik
         Office 207
         Nakhimova Str. 13/1
         634034 Tomsk Region
         Russia

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A67-12-265/05.

The Debtor can be reached at:

         OJSC Kolpashevskaya Shipyard
         Office 207
         Nakhimova Str. 13/1
         634034 Tomsk Region
         Russia


NOVONIKOLAEVSKIY AGRO-SERVICE: Bankruptcy Supervision Starts
------------------------------------------------------------
The Arbitration Court of Volgograd Region has commenced
bankruptcy supervision procedure on LLC Novonikolaevskiy Agro-
Service.  The case was docketed under Case No. A12-35488/05-s50.

The Temporary Insolvency Manager is:

         A. Faynshteyn
         Lenina Pr. 197a
         400015 Volgograd Region
         Ukraine

The Debtor can be reached at:

         LLC Novonikolaevskiy Agro-Service
         Usadba STKh
         Novonikolaevskiy
         Volgograd Region
         Russia


PRIARGUNSKOYE AUTO-TRANSPORT: Y. Yarygin to Manage Assets
---------------------------------------------------------
The Arbitration Court of Chita Region appointed Mr. Y.  Yarygin
as Insolvency Manager for OJSC Priargunskoye Auto-Transport
Enterprise.  He can be reached at:

         Y. Yarygin
         Post User Box 1280
         Central Post Office
         672000 Chita Region
         Russia

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A78-1148/2006 B-37.

The Debtor can be reached at:

         OJSC Priargunskoye Auto-Transport Enterprise
         Avtomobilistov Str. 1
         Priargunsk
         674310 Chita Region
         Russia


RYBNO-SLOBODSKOYE: Court Names I. Gilyazov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Tatarstan Republic appointed Mr. I.
Gilyazov as Insolvency Manager for OJSC Rybno-Slobodskoye Agro-
Khim-Service.  He can be reached at:

         I. Gilyazov
         Post User Box 5
         GOS 3
         Chistopol
         422983 Tatarstan Republic
         Russia


The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A65-36869/2005-SG4-31.

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         OJSC Rybno-Slobodskoye Agro-Khim-Service
         Post User Box 5
         GOS 3
         Chistopol
         422983 Tatarstan Republic
         Russia


SHAKHUNSKIY WOOD-PROM-KHOZ: N. Vasilenko to Manage Assets
---------------------------------------------------------
The Arbitration Court of Nizhniy Novgorod Region appointed Mr.
N. Vasilenko as Insolvency Manager for OJSC Shakhunskiy Wood-
Prom-Khoz (TIN 5239005769).

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A43-39759/2005-18-623.

The Arbitration Court of Nizhniy Novgorod Region is located at:

         Kremlin 9
         603082 Nizhniy Novgorod Region
         Russia

The Debtor can be reached at:

         OJSC Shakhunskiy Wood-Prom-Khoz
         Osipenko Str. 61-A
         Shakhunya
         Nizhniy Novgorod Region
         Russia


SIB-WOOL: Court Names N. Utochenko as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Omsk Region appointed Mr. N. Utochenko
as Insolvency Manager for OJSC SIB-WOOL (TIN 5506053694).  He
can be reached at:

         N. Utochenko
         Room 136
         Mira Pr. 106A
         Omsk Region
         Russia

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No.  A46-4041/2006.

The Debtor can be reached at:

         OJSC Sib-Wool
         Room 136
         Mira Pr. 106A
         Omsk Region
         Russia


STERLITAMAKSKIY REINFORCED 1: S. Trofimov to Manage Assets
----------------------------------------------------------
The Arbitration Court of Bashkortostan Republic appointed Mr. S.
Trofimov as Insolvency Manager for OJSC Sterlitamakskiy
Reinforced-Concrete Factory 1 (TIN 0268014399).  He can be
reached at:

         S. Trofimov
         Ufimskiy Trakt 4
         Sterlitamak
         453102 Bashkortostan Republic
         Russia

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A07-14036/05-G-PAV.

The Arbitration Court of Bashkortostan Republic is located at:

         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan Republic
         Russia

The Debtor can be reached at:

         OJSC Sterlitamakskiy Reinforced-Concrete Factory 1
         Ufimskiy trakt 4
         Sterlitamak
         Bashkortostan Republic
         Russia


TAT-OIL-GAS-STROY: Court Starts Bankruptcy Supervision
------------------------------------------------------
The Arbitration Court of Tatarstan Republic has commenced
bankruptcy supervision procedure on OJSC Tat-Oil-Gas-Stroy.  The
case was docketed under Case No. A65-8408/2006-SG4-26.

The Temporary Insolvency Manager is:

         M. Barysov
         Post User Box 104
         Kazan
         420126 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         OJSC Tat-Oil-Gas-Stroy
         Pushkina Str. 66
         Almetyevsk
         423450 Tatarstan Republic
         Russia


TURGAY: Tatarstan Court Starts Bankruptcy Supervision
-----------------------------------------------------
The Arbitration Court of Tatarstan Republic has commenced
bankruptcy supervision procedure on LLC Agro Company Turgay.
The case is docketed under Case No. A65-4417/2006-SG4-27.

The Temporary Insolvency Manager is:

         F. Safin
         Akademicheskaya Str. 2-212
         Kazan
         420097 Tatarstan Republic
         Russia

The Arbitration Court of Tatarstan Republic is located at:

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

The Debtor can be reached at:

         LLC Agro Company Turgay
         Arskiy Region, Smak-Korsa.
         Tatarstan Republic
         Russia


VOTKINSKOYE GRAIN: Court Names V. Devyatov as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Udmurtiya Republic appointed Mr. V.
Devyatov as Insolvency Manager for Municipal Unitary Enterprise
Votkinskoye Grain Receiving Enterprise (TIN/KPP
1804001020/180401001).

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A71-2871/2006-G29.

The Debtor can be reached at:

         Municipal Unitary Enterprise
         Votkinskoye Grain Receiving Enterprise
         Zheleznodorozhnaya Str. 2
         Votkinsk
         426430 Udmurtiya Republic
         Russia


VYATKA-FLAX: Court Names Y. Rozhkov as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Kirov Region appointed Mr. Y. Rozhkov
as Insolvency Manager for OJSC AGRO Company Vyatka-Flax.

The Court commenced bankruptcy proceedings against at the
company after finding it insolvent.  The case is docketed under
Case No. A 28-332/05-280/24.

The Arbitration Court of Kirov Region is located at:

         K-Libknekhta Str. 102
         610017 Kirov Region
         Russia

The Debtor can be reached at:

         OJSC Agro Company Vyatka-Flax
         Verovskoto Str. 58 a
         Kirov Region
         Russia


ZIMUSHKA: Omsk Court Starts Bankruptcy Supervision
--------------------------------------------------
The Arbitration Court of Omsk Region has commenced bankruptcy
supervision procedure on CJSC Zimushka.  The case is docketed
under Case No. A46-3654/2006.

The Temporary Insolvency Manager is:

         V. Khmelnitskiy
         Marksa Pr. 4-209 A
         644024 Omsk-24
         Russia

The Debtor can be reached at:

         CJSC Zimushka
         Omsk
         Russia


=====================
S W I T Z E R L A N D
=====================


CONVERIUM HOLDING: Earns US$62 Million for Second Quarter 2006
--------------------------------------------------------------
Converium Holding AG has released its financial results for the
second quarter ended June 30, 2006.

In the second quarter of 2006, Converium produced net income of
US$62.5 million.

The quarterly highlights included:

   -- shareholders' equity of US$1,796.1 million as of June 30,
      2006, up US$142.7 million or 8.6% compared with Dec. 31,
      2005;

   -- return on shareholders' equity of 14.6%, up from 11.4% in
      the second quarter of 2005;

   -- A solid underwriting performance, with a non-life combined
      ratio of 99.8% and segment income of ongoing operations of
      US$69.0 million;

   -- favorable prior accident years' developments, for the
      fifth consecutive quarter, resulting in a net positive
      impact on the technical result of US$19.4 million;

   -- the successful and faster than expected progression of the
      North American run-off and commutation strategy, leading
      to a total reduction of net reserves in the Run-Off
      segment of US$185.6 million to US$1,012.2 million, and a
      benefit to the technical result from commutations of
      US$30.7 million;

   -- net investment income of US$84.7 million or an average
      annualized net investment income yield of 4.7%; and

   -- strong July 1 non-life treaty renewals, with renewed
      business growing by 41.3%.

"I am very pleased with another quarter of strong financial
performance by Converium," Inga Beale, Chief Executive Officer,
commented.  "The results reflect the profitable execution of our
North American run-off and commutation strategy, favorable
prior-year developments and a solid underlying underwriting
performance."

"Converium continues to regain strength and stability, as
recognized by Standard & Poor's in their recent assignment of a
positive outlook on our ratings.  This is a major step forward
for us and augurs well for the future.  We will continue to work
diligently towards meeting Standard & Poor's requirements for an
upgrade at the earliest possible date."

Improved Financial Results

For the second quarter of 2006, Converium reported pre-tax
operating income of US$84.0 million and net income of US$62.5
million, compared with US$57.1 million and US$46.9 million,
respectively, for the same period of 2005.

For the first half of 2006, this translates into pre-tax
operating income of US$156.7 million, compared with the previous
period's US$75.9 million.  Net income increased to US$124.1
million, from US$41.4 million in the first half of 2005.

Stable Business Volume

Gross premiums written in the second quarter of 2006 came in at
US$474.7 million, plus 25.5% compared with the second quarter of
2005.  Net premiums written increased by 28.4% to US$414.0
million.  Net premiums earned fell by 21.3% to US$475.7 million,
compared with the same period of 2005, reflecting the completion
of premium earnings from prior underwriting years.

For the first half of 2006, gross premiums written, net premiums
written and net premiums earned were US$1,130 million,
US$1,066.2 million and US$911.0 million, respectively,
decreasing by 0.6%, 0.2% and 31.8%, respectively, compared with
the first half of 2005.  Gross and net premiums written for the
first half of 2006 remained largely flat, demonstrating the
resilience of Converium's franchise despite the continuing
disadvantage of the Company's financial strength ratings.

Solid Underwriting Performance

The second quarter's ongoing non-life combined ratio was 99.8%,
including an administration expense ratio of 6.8%, compared with
102.8% and 8.9%, respectively, for the same period of 2005.  The
second quarter of 2006 was favorably impacted by a positive net
impact of prior accident years on the technical result of
US$19.4 million, partially offset by some minor catastrophic
losses totaling US$10.5 million as well as higher than expected
loss activity in the Property line of business of US$8.0
million. Converium's underlying underwriting performance
remained solid.

For the first half of 2006, Converium recorded an ongoing non-
life combined ratio of 97.0%, including an administration
expense ratio of 4.6%, compared with 103.8% and 6.9%,
respectively, for the same period of 2005.  The improved
underwriting performance in 2006 reflects the absence of any
major catastrophic events as well as a positive net impact of
prior accident years on the technical result of US$31.7 million.

Favorable Prior Accident Years' Developments

In the second quarter of 2006, Converium recorded a net positive
impact of prior accident years on the technical result of
US$19.4 million, with the Company's ongoing operations
accounting for US$28.9 million, partially offset by a negative
development in the Run-Off segment. In the same period of 2005,
the overall net positive impact of prior accident years on the
technical result was US$3.9 million.

For the first half of 2006, an overall net positive impact of
US$31.7 million was recorded, with the ongoing operations
accounting for US$42.5 million, partially offset by a net
negative impact in the Run-Off segment.  In the same period of
2005, there was a net negative impact of prior accident years on
the technical result of US$5.8 million.

North American Run-off and Commutations

Converium's North American run-off and commutation efforts
continue to progress very satisfactorily.  The reduction of
North American liabilities continues to be ahead of plan. In the
second quarter of 2006, the Run-Off segment's net reserves were
reduced by US$185.6 million to US$1,012.2 million.  The
commutations of the Run-Off segment's net reserves of US$144.1
million resulted in a benefit to Converium's technical result
of US$30.7 million.

For the first half of 2006, this translates into an overall
reduction of the Run-Off segment's net reserves by US$297.5
million.  Total commutations were US$189.8 million, resulting in
a benefit to the technical result of US$43.1 million.

Operating and Administration Expenses Under Control

In the second quarter of 2006, total administration expenses
were US$47.9 million, a reduction of 5.0% compared with the same
period of 2005.  The progress in reducing expenses was slowed by
increasing audit fees in the context of Converium's preparation
for Sarbanes-Oxley compliance as well as late payments
relating to the restatement of prior year accounts.

For the first half of 2006, total administration expenses
declined by 22.1% to US$83.6 million, compared with the same
period of 2005. The reduction reflects the effects of the cost
management measures taken in 2005 as well as the non-recurrence
of the expenses associated with staff retention plans in 2005.

Satisfactory Investment Result

In the second quarter of 2006, Converium reported net investment
income of US$84.7 million and an average annualized net
investment income yield of 4.7%, which compares with US$87.8
million and 4.4%, respectively, for the same period of 2005. The
decline in net investment income is a result of Converium's
average invested asset base declining by US$896.5 million
compared with the second quarter of 2005.

The increase in the annualized net investment income yield is
attributable to higher yields on bonds and short-term
investments.  Taking into account the net realized capital
losses, primarily from fixed-income securities, the total
investment result came in at US$72.1 million which compares with
US$86.8 million for the same period of2005. Net realized capital
losses resulted primarily from the sale of fixed-income
securities to fund commutation payments.  The average annualized
total investment income yield came in at 4.0%, compared with
4.3% in the same period of 2005.

In the second quarter of 2006, Converium recorded a reduction in
net unrealized capital gains and losses (pre-tax) of US$31.7
million.  This development is largely due to increasing yields
on fixed-income securities.

Strong July 1 Renewals

Converium recorded a very successful July 1 renewal of non-life
treaties, achieving an increase of 41.3% to US$109.6 million,
based on the business, which was up for renewal.

The July renewals represent approximately 5% of Converium's
total estimated non-life premium, and primarily included
business written in Latin America and the Caribbean, growing by
28.0%, the Middle-East, increasing by 26.5%, and North America,
expanding by 92.0%.  The book of U.S. Property business up for
renewal grew to US$38.9 million on the back of very attractive
market conditions.

Converium's exposure to a one-in-250-years event remains
unchanged, reflecting an improved geographical diversification
in the U.S.  The Company's U.S. property business is selectively
written out of Zurich, and represents around 4% of Converium's
total estimated non-life premium income in 2006.  Consistent
with its underwriting strategy, the Company did not renew any US
Casualty business.

Short- to Medium-Term Outlook

Converium reiterates its full-year financial guidance given in
March 2006, except for expected Corporate enter costs and run-
off liabilities:

   -- gross premiums written for 2006 are projected to come in
      at US$1.8 to US$1.9 billion;

   -- the priced combined ratio for the ongoing non-life
      operations is anticipated at around 102.5%, including an
      administration expense ratio of 5.5%, expected losses from
      natural catastrophes of about US$80 million, but excluding
      expected Corporate Center costs of approximately
      US$45 to US$50 million, up from the Company's previous
      guidance of US$40 million;

   -- for the full year 2006, the reduction of net liabilities
      in the Run-Off segment is likely to exceed the Company's
      previous guidance of US$375 million;

   -- the corporate tax rate is expected to range between 7% to
      12%; and

   -- average invested assets including cash and cash
      equivalents should be in the magnitude of approximately
      US$7 billion.

A full-text copy of Converium Holding's second quarter results
is available for free at http://researcharchives.com/t/s?f64

                         About Converium

Headquartered in Zug, Switzerland, Converium Holding AG --
http://www.converium.com/-- provides treaty and individual
coverage for risks including accident and health, credit and
surety, e-commerce, third party and professional liability,
life, and special casualty.  Converium employs about 600 people
in 20 offices around the globe and is organized into four
business segments: Standard Property & Casualty Reinsurance,
Specialty Lines and Life & Health Reinsurance, which are based
principally on ongoing global lines of business, as well as the
Run-Off segment, which primarily comprises the business from
Converium Reinsurance (North America) Inc., excluding the U.S.
originated aviation business portfolio.

                        *     *     *

Following its publication of its 2005 year-end results, restated
financial information for the periods 1998 to 2004, and for each
quarter from March 31, 2003, to June 2005, Fitch Ratings
affirmed Converium AG's Insurer Financial Strength BBB- rating
and removed it from Rating Watch Negative on which it had been
placed since Nov. 4, 2005.

Fitch also affirmed other ratings within Converium group and
also withdrawn them from RWN:

  a) Converium AG IFS affirmed at BBB-;
  b) Converium AG IDR affirmed at BBB-;
  c) Converium Insurance Limited affirmed at IFS BBB-;
  d) Converium Ruckversicherungs AG affirmed at IFS BBB-;
  e) Converium Holding AG IDR affirmed at BB; and
  f) Converium Finance S.A.'s USD 200 million subordinated debt
     due 2032 affirmed at BB+.


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


DINKOL: Mikolaiv Court Starts Bankruptcy Supervision
----------------------------------------------------
The Economic Court of Mikolaiv Region commenced bankruptcy
supervision procedure on LLC Dinkol (code EDRPOU 23623583).  The
case is docketed under Case No. 14/172/06.

The Temporary Insolvency Manager is:

         Ludmila Chudajkina
         a/b 1041
         Lazurna Str. 2-b/25
         54058 Mikolaiv Region
         Ukraine

The Economic Court of Mikolaiv Region is located at:

         Admiralska Str. 22
         54009 Mikolaiv Region
         Ukraine

The Debtor can be reached at:

         LLC Dinkol
         Chigrin Str. 1-a
         54020 Mikolaiv Region
         Ukraine


DONETSK' AGRICULTURAL: Court Starts Bankruptcy Supervision
----------------------------------------------------------
The Economic Court of Donetsk Region commenced bankruptcy
supervision procedure on OJSC Donetsk' Agricultural Machine-
Technological Station (code EDRPOU 30045983) on May 10.  The
case is docketed under Case No. 42/88 B.

The Temporary Insolvency Manager is:

         Tetyana Pashkova
         Kujbishev Str. 240/50
         83122 Donetsk Region
         Ukraine

The Economic Court of Donetsk Region is located at:

         Artema Str. 157
         83048 Donetsk Region
         Ukraine

The Debtor can be reached at:

         OJSC Donetsk' Agricultural
         Machine-Technological Station
         Teatralnij Avenue 21
         83055 Donetsk Region
         Ukraine


GARBUZIVSKE: Sumi Court Names Sergij Vasilets as Liquidator
-----------------------------------------------------------
The Economic Court of Sumi Region appointed Sergij Vasilets as
Liquidator/Insolvency Manager for Agricultural LLC Garbuzivske
(code EDRPOU 03777031).   He can be reached at:

         Sergij Vasilets
         Petrenko Str. 44
         Lebedin
         Sumi Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 16.  The case is docketed
under Case No. 7/110-06.

The Economic Court of Sumi Region is located at:

         Shevchenko Avenue 18/1
         40030 Sumi Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Garbuzivske
         Garbuzivka
         Lebedin District
         42244 Sumi Region
         Ukraine


IMPEKS: Court Names Andrij Zharikov as Insolvency Manager
---------------------------------------------------------
The Economic Court of Kyiv Region appointed Andrij Zharikov as
Liquidator/Insolvency Manager for LLC Impeks (code EDRPOU
21535136).

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 2.  The case is docketed
under Case No. 43/327.

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 Impeks
         Zhovtnya Avenue 120
         40-richya
         03127 Kyiv Region
         Ukraine


KOLOS: Cherkassy Court Starts Bankruptcy Supervision
----------------------------------------------------
The Economic Court of Cherkassy Region commenced bankruptcy
supervision procedure on LLC Agrofirm Kolos.  The case is
docketed under Case No. 10/963.

The Temporary Insolvency Manager is:

         Sergij Pshenichnij
         Zhurzhintsi
         Lisyanskij District
         Cherkassy Region
         Ukraine

The Economic Court of Cherkassy Region is located at:

         Shevchenko Avenue 307
         18005 Cherkassy Region
         Ukraine

The Debtor can be reached at:

         LLC Agrofirm Kolos
         Zhurzhintsi
         Lisyanskij District
         Cherkassy Region
         Ukraine


NJSC NAFTOGAZ: Moody's Places Low-B Ratings Under Review
--------------------------------------------------------
Moody's Investors Service placed the Ba3 foreign currency
corporate family rating and the Ba2 senior unsecured foreign
currency rating of NJSC Naftogaz of Ukraine on review for
possible downgrade following recent statements made by the
Ukrainian Government about the financial future of the company.

In accordance with Moody's GRI rating methodology the current
ratings reflect a combination of these inputs:

   -- Baseline credit assessment of 14-16 (on scale of 1-21,
where 1 represents lowest credit risk),

   -- B1 local currency rating of the Ukrainian government,

   -- Low dependence, and

   -- High support.

Several factors could influence the possible outcome.  The
review will center upon:

   -- factors affecting the baseline credit assessment, such as
a possible material deterioration of its financial profile
and weakening credit metrics; and

   -- a review of assumptions regarding possible government
support.


PODILLYA: Court Names District Tax Agency to Liquidate Assets
-------------------------------------------------------------
The Economic Court of Vinnitsya Region appointed State Tax
Inspection of Tulchin District of Vinnitsya Region as Liquidator
for LLC Sugar Company Podillya (code EDRPOU 31496732).  The
Liquidator can be reached at:

         State Tax Inspection of Tulchin District
         of Vinnitsya Region
         Lenin Str. 51
         Tulchin
         23600 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 26.  The case is docketed
under Case No. 10/49-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Sugar Company Podillya
         Novozavodska Str. 1
         Kirnasivka
         Tulchin District
         23652 Vinnitsya Region
         Ukraine


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

         L. Demets
         a/b 5894
         21016 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on May 26.  The case is docketed
under Case No. 10/66-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Rodina
         Migalivtsi
         Barskij District
         Vinnitsya Region
         Ukraine


SPIVDRUZHNIST: Court Starts Bankruptcy Supervision
--------------------------------------------------
The Economic Court of Volinska Region commenced bankruptcy
supervision procedure on Agricultural Complex Spivdruzhnist
(code EDRPOU 20132198) on May 10.  The case is docketed under
Case No. 4/55-B.

The Temporary Insolvency Manager is:

         I. Kostukevich
         Grushevskij Str. 30/22
         Lutsk District
         43000 Volinska Region
         Ukraine

The Economic Court of Volinska Region is located at:

         Voli Avenue 54-a
         43010 Lutsk
         Volinska Region
         Ukraine

The Debtor can be reached at:

         Agricultural Complex Spivdruzhnist
         Ratniv
         Lutsk District
         45650 Volinska Region
         Ukraine


SOYUZ: Court Names District Tax Agency as Liquidator
----------------------------------------------------
The Economic Court of Vinnitsya Region appointed State Tax
Inspection of Tulchin District of Vinnitsya Region as Liquidator
for LLC Soyuz (code EDRPOU 20085429).  The Liquidator can be
reached at:

         State Tax Inspection of Tulchin District
         of Vinnitsya Region
         Lenin Str. 51
         Tulchin
         23600 Vinnitsya Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on April 26.  The case is docketed
under Case No. 10/48-06.

The Economic Court of Vinnitsya Region is located at:

         Hmelnitske Shose 7
         21036 Vinnitsya Region
         Ukraine

The Debtor can be reached at:

         LLC Soyuz
         Sadova Str. 15
         Nestervarka
         Tulchin District
         23609 Vinnitsya Region
         Ukraine


TRANSENERGO-UKRAINE: Court Names L. Sirotenko as Liquidator
-----------------------------------------------------------
The Economic Court of Kyiv Region appointed Mr. L. Sirotenko as
Liquidator/Insolvency Manager for OJSC Transenergo-Ukraine (code
EDRPOU 25200042).  He can be reached at:

         L. Sirotenko
         Petro Zaporozhets Str. 11/4
         01000 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. 23/260-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:

         OJSC Transenergo-Ukraine
         Peremogi Avenue 50
         03047 Kyiv Region
         Ukraine


VIDRODZHENNYA: Hmelnitskij Court Starts Bankruptcy Supervision
--------------------------------------------------------------
The Economic Court of Hmelnitskij Region commenced bankruptcy
supervision procedure on AGRICULTURAL LLC VIDRODZHENNYA (code
EDRPOU 05595266) on May 24.  The case is docketed under Case No.
13/142-B.

The Temporary Insolvency Manager is:

         Arkadij Gorban
         Skovoroda Str. 14/151
         29000 Hmelnitskij Region
         Ukraine

The Economic Court of Hmelnitskij Region is located at:

         Nezalezhnosti Square 1
         29000 Hmelnitskij Region
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Vidrodzhennya
         Tomashivka
         Yarmolinetskij District
         30200 Hmelnitskij Region
         Ukraine


ZAMOK: Court Names Sergij Pavluk as Insolvency Manager
------------------------------------------------------
The Economic Court of Herson Region appointed Sergij Pavluk as
Liquidator/Insolvency Manager for LLC Zamok (code EDRPOU
31760261).  He can be reached at:

         Sergij Pavluk
         Shors Str. 22/9
         Nova Kahovka
         74900 Herson Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 20.  The case is docketed
under Case No. 6/99-B-06.

The Economic Court of Herson Region is located at:

         Gorkij Str. 18
         73000 Herson Region
         Ukraine

The Debtor can be reached at:

         LLC Zamok
         Suvorov Str. 17/8
         73000 Herson Region
         Ukraine


ZHITLOBUD: Lviv Court Names Oksana Gentash as Liquidator
--------------------------------------------------------
The Economic Court of Lviv Region appointed Oksana Gentash as
Liquidator/Insolvency Manager for Zhitlobud (code EDRPOU
30123851).  She can be reached at:

         Oksana Gentash
         Sheptitskij Str. 39/1
         Sokal
         80000 Lviv Region
         Ukraine

The Court commenced bankruptcy proceedings against the company
after finding it insolvent on June 19.

The Economic Court of Lviv Region is located at:

         Lichakivska Str. 81
         79010 Lviv Region
         Ukraine

The Debtor can be reached at:

         Zhitlobud
         Centralna Str. 14
         Matyashi
         Kamyanka-Buzkij District
         Lviv Region
         Ukraine


ZORINSK' AUTO 10965: Court Starts Bankruptcy Supervision
--------------------------------------------------------
The Economic Court of Lugansk Region commenced bankruptcy
supervision procedure on OJSC Zorinsk' Auto-Transport Enterprise
10965 (code EDRPOU 03115933) on May 12.  The case is docketed
under Case No. 22/28 b.

The Temporary Insolvency Manager is:

         Mikola Hajlo
         Karbishev Str. 12/157
         Stahanov
         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:

         OJSC Zorinsk' Auto-Transport Enterprise 10965
         Leningradska Str. 10
         Zorinsk
         94323 Lugansk Region
         Ukraine


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


BAA PLC: Grupo Ferrovial et. al Hold 97.07% of Issued Shares
------------------------------------------------------------
BAA plc was informed that as at the close of business on Aug. 8,
2006, each of Airport Development and Investment Limited, ADI
Finance 2 Limited, ADI Finance 1 Limited, Airport Development
and Investment (Holdings) Limited, FGP Topco Limited, Ferrovial
Infraestructuras S.A. and Grupo Ferrovial S.A. have an interest
in 1,053,388,433 ordinary shares of the Company, representing
97.07% of its issued share capital.

                      About the Company

Headquartered in London, England, BAA plc -- http://www.baa.com/
-- owns and operates seven airports in the United Kingdom,
including Healthrow, the world's busiest international airport,
and Budapest Airport, serving 700 destination by around 300
airlines.  Its U.K. airports handled over 117 million
international passenger during the 12 months up to October 2005.
International passengers make up 81% of its total U.K. airport
traffic.  BAA had total assets of GBP15.2 billion and pre-tax
profits of GBP757 million for the year ended March 31, 2006.

                        *     *     *

As reported in TCR-Europe on June 9, Moody's Investors Service
downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well
as the ratings for:

   -- GBP425 million convertible bonds due August 2009;
   -- GBP424 million convertible bonds due April 2008; and
   -- GBP200 million 7.875% bonds due February 2007.

BAA's short-term rating was also downgraded to Not Prime from
Prime-3.  All other long-term debt ratings remain at Baa2.  All
long-term ratings remain on review for further downgrade.


BAA PLC: U.K. Airport Traffic Up 3.1% in July 2006
------------------------------------------------
BAA PLC disclosed traffic figures for July 2006.

The company's U.K. airports handled 15 million passengers in
July, the most passengers to pass through their airports in a
single month and an increase of 3.1% over the same month last
year.

Of the major markets, European scheduled traffic was up 7.4%,
whilst North Atlantic activity was up 0.2%, and other long haul
routes increased by a collective 8.4%.  Among these the fastest
growing market was India, which grew 50%.  U.K. Domestic traffic
fell by 1.9% in response to a drop in seat capacity on
Domestic routes, whilst European Charter dropped 5.9%.

Of the individual airports, Stansted saw the largest gain at
9.9%. Heathrow and Gatwick grew 1.2%, and 4.1% respectively. In
Scotland, Aberdeen recorded an increase of 6.6%. Edinburgh was
up 2.0%, buoyed by an increase in North American traffic
following the introduction of new scheduled services.  A drop
in it's large charter traffic component, and additional
competition from
Edinburgh for US traffic, contributed to a 1.8% fall in
Glasgow's traffic.

In total the number of air transport movements at BAA's U.K.
airports rose by 0.7% while cargo tonnage was down by 2.1%.

                      About the Company

Headquartered in London, England, BAA plc -- http://www.baa.com/
-- owns and operates seven airports in the United Kingdom,
including Healthrow, the world's busiest international airport,
and Budapest Airport, serving 700 destination by around 300
airlines.  Its U.K. airports handled over 117 million
international passenger during the 12 months up to October 2005.
International passengers make up 81% of its total U.K. airport
traffic.  BAA had total assets of GBP15.2 billion and pre-tax
profits of GBP757 million for the year ended March 31, 2006.

                        *     *     *

As reported in TCR-Europe on June 9, Moody's Investors Service
downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well
as the ratings for:

   -- GBP425 million convertible bonds due August 2009;
   -- GBP424 million convertible bonds due April 2008; and
   -- GBP200 million 7.875% bonds due February 2007.

BAA's short-term rating was also downgraded to Not Prime from
Prime-3.  All other long-term debt ratings remain at Baa2.  All
long-term ratings remain on review for further downgrade.


DRINKPLAY LIMITED: Names Administrators from Begbies Traynor
------------------------------------------------------------
Robert Michael Young and Steven Williams of Begbies Traynor were
appointed joint administrators of Drinkplay Limited (Company
Number 4140152) on July 3.

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

Drinkplay Limited can be reached at:

         Bank House
         Market Square
         Congleton
         Cheshire CW12 1ET
         United Kingdom


EASTMAN KODAK: Moody's Places Low-B Ratings Under Review
--------------------------------------------------------
Moody's Investors Service commented that its review for possible
downgrade for the Eastman Kodak Company continues to focus on
the company's potential sale of the Kodak Health Group as well
as the fundamental operating performance of the company.

In Moody's view, the company's overall operating results for the
June 2006 quarter reflected pre-restructuring charge operating
profit which was weaker than Moody's had anticipated, negatively
impacted by weak performance in its Consumer Digital Group
(CDG), yet supported by encouraging results in its consumer Film
Products Group (FPG) and commercial Graphic Communications Group
(GCG).

Moody's notes that FPG, whose business is supported by motion
picture film sales, GCG, CDG, and a new technologies division
including investments in consumer inkjet and imaging sensor
technologies are the businesses the company expects to retain
subsequent to its potential sale of KHG.

The review for possible downgrade continues to focus on any
potential KHG sale consummation and any application of proceeds
from a KHG sale toward debt reduction, the company's management
of recurring restructuring costs associated with its business as
it continues to transition from film to digital including any
potential KHG restructuring costs, and its attainment of at
least US$300 million in digital earnings in 2006.

Moody's notes that the ratings could be downgraded if the
company's prospects for digital earnings remain muted upon the
release of September 2006 quarterly earnings.

Ratings on Review for Possible Downgrade:

   -- Corporate Family Rating: B1;
   -- Senior Unsecured Rating: B2; and
   -- Senior Secured Credit Facilities Ba3.

Headquartered in Rochester, New York, the Eastman Kodak Company
is a worldwide provider of imaging products and services.


ENDACOTT MARKETING: Names Michael Colin John Sanders Liquidator
---------------------------------------------------------------
Michael Colin John Sanders of BN Jackson Norton was named
Liquidator of Endacott Marketing Limited at an extraordinary
general meeting on May 15.

The company can be reached at:

         Endacott Marketing Limited
         Cambridge House
    100 Cambridge Grove
    London W6 0LE
    United Kingdom
    Tel: 070 5004 0794
    Fax: 020 8563 2889


ENTERTAINMENT & LEISURE: Appoints J. N. Bleazard as Liquidator
--------------------------------------------------------------
J. N. Bleazard of XL Business Solutions Ltd. was appointed
Liquidator of Entertainment and Leisure Limited (t/a Funny Gals)
at an extraordinary general meeting on May 16.

The company can be reached at:

         Entertainment & Leisure Limited
         Mayfair House
    5 Little London Court
    Albert Street
    Swindon SN1 3HY
    United Kingdom
    Tel: 01793 524 114


FARA TECHNOLOGY: Creditors Confirm Liquidator's Appointment
-----------------------------------------------------------
The appointment of Stephen Robert Cork as Liquidator of Fara
Technology PLC was confirmed at a meeting of creditors on
May 10.

The company can be reached at:

         Fara Technology PLC
    Grosvenor House
    North Lane
    Aldershot
    Hampshire GU124QG
    United Kingdom
    Tel: 01252 343 000
    Fax: 01252 317 800


FIRST 4 EXHIBITIONS: Brings In Vantis to Administer Assets
----------------------------------------------------------
Frank Wessely and Peter Hughes-Holland of Vantis were appointed
joint administrators of First 4 Exhibitions Limited (Company
Number 03979592) on July 3.

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

Headquartered in Beaconsfield, United Kingdom, First 4
Exhibitions Limited is engaged in building exhibition stands.


GENERAL MOTORS: Expects to Reach Job Cut Targets Ahead of Plan
--------------------------------------------------------------
General Motors Corp. expects to reach reduced employment level
by Jan. 1, 2007, about two years ahead of its previously
announced target, in its pursuit to return its North American
operations to profitability and positive cash flow.

GM's actions to reduce hourly headcount started in November 2005
when GM announced plans to idle 12 facilities and reduce
manufacturing employment levels by approximately 30,000
employees by the end of 2008.  During the first quarter of 2006,
two assembly plants referred to in the original disclosure
stopped production.  On March 22, 2006, GM, the UAW, and Delphi
announced they had entered into the UAW Attrition Agreement to
reduce the number of hourly employees of GM and of Delphi
through a special attrition program. In late June, GM announced
that approximately 34,400 hourly employees (33,100 UAW-
represented and 1,300 IUE-CWA-represented) would participate in
the program.

                  Other Cost-Reduction Efforts

With regard to costs, the Company's primary goals were to
address its legacy cost burden and reduce its structural costs
in line with current levels of revenue.  Legacy costs are
primarily related to the cost of benefits provided to retired
employees and their dependents, and costs associated with
employees and their dependents of businesses divested by GM.
Structural costs, such as the cost of unionized employees, are
those costs that do not vary with production and include all
costs other than material, freight, and policy and warranty
costs.  Some of these costs are within the Company's control,
while others such as interest rates or return on investments
(which influence the Company's pension and OPEB expenses) are
more dependent on outside factors.

To reduce legacy costs and structural costs, GM has taken action
in a number of areas.  To contain legacy health care costs for
retired hourly employees, GM entered into the UAW Health Care
Settlement Agreement, which received approval by the U.S.
Bankruptcy Court for the Southern District of New York -- the
Court handling Delphi Corp.'s chapter 11 case -- on March 31,
2006, and a tentative agreement with the IUE-CWA providing
similar terms, which was announced on April 10, 2006.  In
addition, on February 7, 2006, GM announced it would cap its
contributions to salaried retiree health care at the level of
2006 expenditures.  To control pension costs, GM announced on
March 7, 2006, that it would freeze accrued pension benefits for
U.S. salaried employees and implement a new benefit structure
for future accruals.

                   Moves to Improve Liquidity

GM has also taken actions to improve liquidity. In February
2006, GM's Board of Directors reduced the quarterly dividend by
50%, which will conserve about $500 million on an annual basis.
Since the fourth quarter of 2005, the Company has sold all or
part of its equity stakes in each of Fuji Heavy Industries,
Isuzu and Suzuki, adding more than $3 billion to GM's liquidity.

In addition to these actions, on July 20, 2006, GM executed a
$4.63 billion amended and restated credit agreement with a
syndicate of banks restating and amending the $5.6 billion
unsecured line of credit.  This agreement provides additional
available liquidity that GM anticipates to draw on from time
to time to fund working capital and other needs.

Also, on April 2, 2006 GM entered into a definitive agreement to
sell a 51% controlling interest in GMAC to a consortium of
investors.  GM's goal in selling the 51% interest in GMAC was
improving GMAC's current credit rating position for GMAC's long
term growth and provide a stronger foundation to support GM
sales and dealers.  The transaction also improves liquidity and
results in total value of cash proceeds and distributions to GM
of approximately $14 billion over three years, comprised of $7.4
billion purchase price, $4 billion of retained assets and $2.7
billion cash dividend.  The Company expects to receive
approximately $10 billion at closing.  $1.4 billion will be
invested by GM in new GMAC preferred equity.

                  Near Term Issues with Delphi

In addition to restoring GMNA operations to profitability, GM
needs to address near term issues associated with its largest
supplier, Delphi.  On March 31, 2006 Delphi filed motions under
the U.S. Bankruptcy Code seeking authority to reject its U.S.
labor agreements and modify retiree welfare benefits.  The
unions and certain other parties have filed objections to these
motions.  Hearings on these motions were adjourned until today,
Aug. 11, to allow Delphi, its unions and GM additional time to
focus on reaching comprehensive consensual agreements.   While
Delphi has indicated to us that it expects no disruptions in its
ability to continue supplying us with the systems, components,
and parts that we need as Delphi pursues its bankruptcy
restructuring plan, labor disruptions at Delphi resulting from
Delphi's pursuit of a restructuring plan could seriously disrupt
our North American operations, prevent us from executing our
GMNA turnaround initiatives, and materially adversely impact our
business.  Accordingly, resolution of the Delphi related issues
remains a critical near term priority.

Delphi also filed on March 31, 2006 a motion under the U.S.
Bankruptcy Code seeking authority to reject certain supply
contracts with GM. A hearing on this motion was adjourned by the
court until after the hearings related to Delphi's U.S. labor
agreements and retiree welfare benefits are completed or
otherwise resolved. Although Delphi has not rejected any GM
contracts as of this time and has assured GM that it does not
intend to disrupt production at GM assembly facilities, there is
a risk that Delphi or one or more of its affiliates may reject
or threaten to reject individual contracts with GM, either for
the purpose of exiting specific lines of business or in an
attempt to increase the price GM pays for certain parts and
components. As a result, GM could be materially adversely
affected by disruption in the supply of automotive systems,
components and parts that could force the suspension of
production at GM assembly facilities.

                       About General Motors

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

                           *     *     *

As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating, but excluding the '1' recovery rating -- on CreditWatch
with negative implications, where they were placed March 29,
2006.  The CreditWatch update followed GM's announcement of
second quarter results and other recent developments involving
its bank facility and progress on the GMAC sale.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corporation and General Motors of
Canada Limited to B.  The commercial paper ratings of both
companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new $4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to $4.5 billion being proposed by General Motors Corporation,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  The rating outlook is negative.


HOME SUIT: Brings in T. Papanicola as Administrator
---------------------------------------------------
T. Papanicola of Bond Partners LLP was named administrator of
Home Suit Hire Limited (Company Number 04831559) on July 11.

The administrator can be reached at:

         Bond Partners LLP
         The Grange
         100 High Street
         London N14 6TG
         United Kingdom
         Tel: 020 8444 2000
         Fax: 020 8444 3400

Home Suit Hire Limited can be reached at:

         73 Hinckley Road
         Leicester LE3 0TD
         United Kingdom


INFINITELY BETTER: Appoints Begbies Traynor as Administrators
-------------------------------------------------------------
Simon Robert Haskew and Kenneth Stephen Chalk of Begbies Traynor
were appointed joint administrators of Infinitely Better Limited
(Company Number 04967809) on July 5.

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

Infinitely Better Limited can be reached at:

         1 Abacus House
         Newlands Road
         Corsham
         Wiltshire SN13 0BH
         Tel: 01249 811 872


JASON ENGINEERING: Hires Joint Liquidators from Tenon Recovery
--------------------------------------------------------------
Carl Jackson and Nigel Fox of Tenon Recovery were appointed
Joint Liquidators of Jason Engineering Limited at an
extraordinary general meeting on May 11.

The company can be reached at:

         Jason Engineering Limited
    27-33 High Street
    Totton
    Southampton SO409HL
    United Kingdom
    Tel: 023 8066 3535
    Fax: 023 8066 3531


JOHNSONS COMMERCIAL: Names Joint Liquidators to Wind Up Business
----------------------------------------------------------------
Gavin Geoffrey Bates and Peter John Windatt of BRI Business
Recovery and Insolvency were appointed Joint Liquidators of
Johnsons (Commercial & Retail Interiors Limited) at an
extraordinary general meeting of members on May 9.

The company can be reached at:

         Johnsons (Commercial & Retail Interiors) Limited
    Unit C
    Woodgate
    Leicester LE3 5GH
    United Kingdom
    Tel: 01455 636 645
    Fax: 01455 637 745


KWIK PROJECTS: Names Gagen Dulari Sharma as Administrator
---------------------------------------------------------
Gagen Dulari Sharma of Sharma & Co. was appointed administrator
of Kwik Projects Ltd. (Company Number 04679937) on June 27.

The administrator can be reached at:

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

Kwik Projects Ltd. can be reached at:

         Suite 3 Saturn Court
         Spring Road
         Ettingshall
         Wolverhampton
         West Midlands WV4 6JX
         United Kingdom
         Tel: 01902 404 501
         Fax: 01902 404 502


MARKHAM COMMERCIALS: Creditors Confirm Voluntary Liquidation
------------------------------------------------------------
Creditors of Markham Commercials Limited confirmed on May 12
resolutions for voluntary liquidation and the appointment of
Gerald Maurice Krasner of Bartfields (U.K.) Limited as
Liquidator.

The company can be reached at:

         Markham Commercials Limited
    Markham Moor
    Retford
    Nottinghamshire DN220QU
    United Kingdom
    Tel: 01777 838 077
              01777 838 078
    Fax: 01777 838 478


MICROMIX SOLUTIONS: Appoints Joint Administrators from P&A
----------------------------------------------------------
Christopher Michael White and Brendan Ambrose Guilfoyle of The
P&A Partnership were appointed administrators of Micromix
Solutions Limited (Company Number 04129531) on July 7.

The P&A Partnership (aka Poppleton and Appleby) --
http://www.thepandapartnership.com/-- is a member firm of the
Insolvency Practitioners Association and the Association of
Business Recovery Professionals (R3) and act for all clearing
banks and a growing number of factors and asset lenders.

Headquartered in Langar, United Kingdom, Micromix Solutions
Limited -- http://www.frit.co.uk/-- is a specialist company
working in the international market of crop and plant nutrition.
It manufactures fertilizers.


NEODOX COMPOSITES: Appoints Administrators from Abbot Fielding
--------------------------------------------------------------
Andrew John Tate and Nedim Patrick Ailyan of Abbot Fielding were
appointed joint administrators of Neodox Composites Limited
(Company Number 05067834) on July 7.

The administrators can be reached at:

         Abbott Fielding
         Nexus House
         2 Cray Road
         Sidcup
         Kent DA14 5DB
         United Kingdom
         Tel: 020 8302 4344
         Fax: 020 3248 4035

Headquartered in London, United Kingdom, Neodox Composites
Limited is engaged in general construction and civil
engineering.


NTL INC.: Eyes GBP8 Billion Private Equity Offer
------------------------------------------------
NTL Inc. opened itself to a GBP8 billion private equity offer on
Aug. 8 after sustaining a significant drop in customers,
Elizabeth Judge writes for The Times.

"We always look to maximize shareholder value and anything that
would do that we would be receptive to," Jim Mooney, NTL
chairman told the paper.

In the company's financial report for the second quarter ending
June 30, 2006, net customer disconnections are 18,900 compared
with 25,800 net customer additions in the first quarter and
62,500 net customer additions for the second quarter in 2005.

According to the report, the group declined an unofficial GBP8
billion takeover offer from a consortium including Apax
Partners, Cinven and Permira last year, claiming that it was
below the company's worth. Since then, NTL's share price dropped
from US$27.25 to US$22.76.

                          About NTL Inc.

Headquartered in London, England, NTL Inc. (NASDAQ: NTLI) --
http://www.ntl.com/-- is a Delaware corporation and is
publicly-traded is the US on the Nasdaq Global Select Market
under the symbol "NTLI."  The Company provides broadband,
digital television, telephony, content and communications
services, reaching over 50% of U.K. homes and 85% of U.K.
businesses.

                          *     *     *

As reported in TCR-Europe on July 17, Fitch Ratings assigned NTL
Cable PLC's upcoming GBP300 million 10-year senior notes an
expected rating of B and a Recovery Rating of RR5.  NTL Cable's
existing senior notes remain on Rating Watch Negative.  Fitch
will resolve the Rating Watch status on the NTL Cable notes and
assign final rating to the new notes upon completion of the new
senior note issue.

The final rating is contingent on the receipt of final documents
conforming to information already received.  At the same time
the agency has affirmed NTL Inc's Issuer Default rating at B+
with Stable Outlook and its Short-term ratings at B.  NTL
Investment Holdings Limited's GBP5.28 billion senior secured
credit facilities are affirmed at BB+ and Recovery Rating RR1.


NTL INC.: Posts GBP195.8 Mln Net Loss for Second Quarter 2006
-------------------------------------------------------------
NTL Inc. released its unaudited second quarter results ended
June 30, 2006, the first full quarter since NTL merged with
Telewest Global Inc. on March 3.

In their condensed consolidated income statement, the company
showed a GBP195.8 million net loss on GBP884.3 million in
revenues for the second quarter ended June 30, 2006, compared
with GBP73.5 million net profit on GBP482.5 million in revenues
for the same quarter in 2005.

Operating income for the second quarter in 2006 is GBP6.3
million compared with GBP6.4 operating income for the same
period in 2005.

As of June 30, 2006, the company's condensed consolidated
balance sheet revealed GBP10.18 billion in total assets, GBP7.26
billion in total liabilities and GBP2.91 billion in
shareholders' equity.

Net debt as of June 30, 2006 is GBP5.4 billion.

A full-text copy of NTL Inc. second quarter results is available
at no charge at http://researcharchives.com/t/s?f69

                          About NTL Inc.

Headquartered in London, England, NTL Inc. (NASDAQ: NTLI) --
http://www.ntl.com/-- is a Delaware corporation and is
publicly-traded is the US on the Nasdaq Global Select Market
under the symbol "NTLI."  The Company provides broadband,
digital television, telephony, content and communications
services, reaching over 50% of UK homes and 85% of UK
businesses.

                          *     *     *

As reported in TCR-Europe on July 17, Fitch Ratings assigned NTL
Cable PLC's upcoming GBP300 million 10-year senior notes an
expected rating of B and a Recovery Rating of RR5.  NTL Cable's
existing senior notes remain on Rating Watch Negative.  Fitch
will resolve the Rating Watch status on the NTL Cable notes and
assign final rating to the new notes upon completion of the new
senior note issue.

The final rating is contingent on the receipt of final documents
conforming to information already received.  At the same time
the agency has affirmed NTL Inc's Issuer Default rating at B+
with Stable Outlook and its Short-term ratings at B.  NTL
Investment Holdings Limited's GBP5.28 billion senior secured
credit facilities are affirmed at BB+ and Recovery Rating RR1.


PACKMANS FURNITURE: Taps Lloyd Biscoe to Liquidate Assets
---------------------------------------------------------
Lloyd Biscoe of Begbies Traynor was appointed Liquidator of
Packmans Furniture Limited at an extraordinary general meeting
on May 11.

The company can be reached at:

         Packmans Furniture Limited
    256-261 Paradise Row
    London E2 9LE
    United Kingdom
    Tel: 020 7729 4268
    Fax: 020 7729 0169


PETER GRAHAM: Joint Liquidators Take Over Operations
----------------------------------------------------
Harvey Madden of Taylor Rowlands and Nigel Price of Moore
Stephens Corporate Recovery were appointed Joint Liquidators of
Peter Graham Ceramic Tiling Limited on May 9.

The company can be reached at:

         Peter Graham Ceramic Tiling Limited
    Station Road
    Chester Le Street
    County Durham DH3 3DU
    United Kingdom
    Tel: 0191 389 0768
    Fax: 0191 389 3559


PDS FURNISHINGS: Gagen Dulari Sharma Leads Liquidation Procedure
----------------------------------------------------------------
Gagen Dulari Sharma was appointed Liquidator of PDS Furnishings
Limited on April 11 by resolutions of members and creditors.

The company can be reached at:

         PDS Furnishings Limited
         Ryknild Industrial Estate
         Derby Road
         Burton-on-Trent
    Staffordshire DE141RZ
    United Kingdom
    Tel: 01283 845 300


PROVALIS PLC: To Sell Medical Diagnostics Biz & Liquidate Assets
----------------------------------------------------------------
Provalis plc agreed to sell its medical diagnostics business for
effective consideration of GBP1.6 million through the sale of
the entire issued share capital of its subsidiary, PB
Diagnostics Limited to Bio-Metrics (U.K.) Limited, a subsidiary
of Bio-Rad Laboratories, Inc., subject to shareholder approval.

Following the completion of the sale of the assets of its
pharmaceutical business, Provalis Healthcare, on Feb. 20, the
company has continued to focus on resolving the technical issues
relating to the in2it product and exploring the commercial
options available for this product, as outlined in the interim
results statement on March 7.

The Company has made good progress in resolving the technical
issues associated with in2it but does not have the resources to
re-launch the product and maximize value through the
exploitation of the product, especially in the US market.  The
Board believes the terms of the Disposal represent the most
viable option for the Group to obtain value from the Medical
Diagnostics business.

Conditional upon completion of the Disposal and also subject to
shareholder approval, the Directors propose placing the Company
into a members' voluntary liquidation and canceling the
company's listing of ordinary Shares on the Official List.

The Directors, having discussed the matter with the Liquidators,
expect that, in aggregate, an amount of approximately GBP1.4
million will be available for distribution to shareholders.
This represents approximately 0.4 pence per ordinary share.  No
distribution to shareholders under the Liquidation will take
place before August 1, 2007.

Following the extraordinary general meeting to approve the
Members' Voluntary Liquidation, Peter Woodford will resign as
Interim Chief Executive, Alan Aikman will resign as Non-
Executive Chairman and Lee Greenbury will resign as director and
company secretary of the Company.

"The executive team has worked very hard to achieve this outcome
in difficult circumstances," Dr. Alan Aikman, Non-Executive
Chairman, said.  "Having explored a number of options including
partnering arrangements and the possible sale of individual
products, we believe that the Disposal represents the best
option to obtain value for the medical diagnostics business and
to secure the best result for shareholders as well as employment
for the vast majority of the Group's employees."

                     About the Company

Headquartered in Flintshire, United Kingdom, Provalis plc (LSE:
PRO) -- http://www.provalis.com/-- is an international Medical
Diagnostics group.  The company is comprised of two separate
operating businesses:

   -- Provalis Diagnostics Limited - develops, manufactures and
sells medical diagnostic products for chronic disease
management for world markets.  The business' principal
products are in2it A1c and Glycosal both diabetes
diagnostic tests.

   -- Provalis Healthcare Limited - sold and marketed its own,
and third party, branded, prescription medicines in the
      U.K. and Ireland to GPs and hospitals through a regionally
managed sales force.

                        *     *     *

For the six months ended Dec. 31, 2005, the company posted
GBP4.8 million in net losses, compared with a GBP1.7 million net
loss for the same period in 2004.  For the year ended June 30,
2005, the company posted GBP5.3 million in net losses.

For the six-month period, the company also experienced strained
liquidity with GBP3.3 million in assets available to pay GBP6.5
million of debts due within the year.


QUANTA CAPITAL: Credit Default Looms Over Waiver Deadline
---------------------------------------------------------
Quanta Capital Holdings Ltd. (NASDAQ: QNTA) continues to work
with its lenders regarding an amendment to its credit facility
and an extension to its waiver period, which is set to expire
today, Aug. 11.

As reported in TCR-Europe on June 23, A.M. Best Co. downgraded
the financial strength ratings to B from B++ and the issuer
credit ratings to bb from bbb for the insurance/reinsurance
subsidiaries of Quanta Capital Holdings Ltd.

These rating actions apply to Quanta Reinsurance Ltd., its
subsidiaries and Quanta Europe Ltd.  A.M. Best also downgraded
Quanta's ICR to b from bb and the securities rating to ccc from
b+ for its US$75 million 10.25% Series A non-cumulative
perpetual preferred shares.  All ratings have been removed from
under review with negative implications and assigned a negative
outlook.

Subsequently, all ratings of Quanta will be withdrawn and the
FSRs will be assigned a rating of NR-4 in response to
management's request that Quanta be removed from A.M. Best's
interactive rating process.

The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.

                      About the Company

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
-- http://www.quantaholdings.com/-- operates its Lloyd's
syndicate in London and its environmental consulting business
through Environmental Strategies Consulting (ESC) in the United
States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.


QUANTA CAPITAL: Posts US$42.9 Million Net Loss in 2nd Quarter
-------------------------------------------------------------
Quanta Capital Holdings Ltd. (NASDAQ: QNTA) reported financial
results for the second quarter ended June 30, 2006.

The company reported a US$42.9 million net loss for the second
quarter 2006, compared with an US$8.5 million net income in the
same period last year.

Net loss excluding net realized losses on investments for the
second quarter of 2006 was US$36.2 million, compared with net
Income excluding realized gains on investments for the second
quarter of 2005 of US$7.7 million.

Second quarter 2006 results include additional provision for
employee severance of approximately US$10.7 million which is a
direct result of the Company's decision to place most of its
specialty insurance and reinsurance lines into orderly run-off
and US$3.6 million in additional losses from the 2005
hurricanes.  The Company also recognized US$12.6 million as
goodwill impairment expense related to its investment in ESC as
Quanta's insurance companies are no longer writing environmental
policies that complement ESC's ongoing business.

                    Strategic Alternatives

The Company continues to pursue strategic alternatives, which
may include:

   -- the sale of the Company or some or all of its businesses;

   -- the commutation of certain contracts;

   -- sale of renewal rights of certain business lines;

   -- the engagement of an administrator to run-off all or a
      portion of its book of business; or

   -- a combination of one or more of these alternatives.

Key developments during the second quarter of 2006 also included
the decision to cease underwriting or seeking new business and
to place most of its remaining specialty insurance and
reinsurance lines into orderly run-off following A.M. Best
rating actions and the subsequent withdrawal of its ratings.
Quanta's Lloyd's syndicate and environmental consulting
business, ESC, are not included in the run-off plan and will
continue to seek new business.

Gross written premiums for the second quarter of 2006 were
US$32.9 million and net written premiums were US$10.1 million.
This includes US$23.3 million and US$15.8 in gross and net
written premium from Lloyd's and US$24.9 million and US$10.4
million in gross and net written premium from our home builder's
program, known as HBW.  We expect that HBW will continue to
generate premium until December 2006 when it will be terminated.
The Company also returned US$27.7 million in gross written
premium to policyholders following policy cancellation and
commutations.  In future periods, the Company believes that
comparisons versus prior year results are not meaningful as the
Company is underwriting a limited amount of new policies.

Net premiums earned in the second quarter were US$60.4 million.
Specialty insurance contributed US$51.2 million of the net
premiums earned and specialty reinsurance contributed US$9.2
million.  Technical services revenues for the second quarter of
2006 were US$7.8 million compared to revenues of US$7.2 million
for the second quarter of 2005.

The company also disclosed that it has started the process of
communicating its run-off plan with its regulators during the
second quarter of 2006.

                      About the Company

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
-- http://www.quantaholdings.com/-- operates its Lloyd's
syndicate in London and its environmental consulting business
through Environmental Strategies Consulting (ESC) in the United
States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.

                        *     *     *

As reported in TCR-Europe on June 23, A.M. Best Co. downgraded
the financial strength ratings to B from B++ and the issuer
credit ratings to bb from bbb for the insurance/reinsurance
subsidiaries of Quanta Capital Holdings Ltd.

These rating actions apply to Quanta Reinsurance Ltd., its
subsidiaries and Quanta Europe Ltd.  A.M. Best also downgraded
Quanta's ICR to b from bb and the securities rating to ccc from
b+ for its US$75 million 10.25% Series A non-cumulative
perpetual preferred shares.  All ratings have been removed from
under review with negative implications and assigned a negative
outlook.

Subsequently, all ratings of Quanta will be withdrawn and the
FSRs will be assigned a rating of NR-4 in response to
management's request that Quanta be removed from A.M. Best's
interactive rating process.


R. C. EDMONDSON: Appoints Administrator from Ensors
---------------------------------------------------
Steven Mark Law of Ensors was named administrator of R. C.
Edmondson (Woodbridge) Limited (Company Number 00661599), R. C.
Edmondson Limited (Company Number 00512032) and R. C. Edmondson
(Ipswich) Limited (Company Number 02043367) on July 7.

Ensors -- http://www.ensors.co.uk-- is the leading independent
firm of chartered accountants in East Anglia, United Kingdom.
It has branches in Bury St. Edmunds, Haverhill, Ipswich and
Saxmundham.

R. C. Edmondson (Woodbridge) Limited, R. C. Edmondson Limited
and R. C. Edmondson (Ipswich) Limited --
http://www.edmondson.co.uk/-- is engaged in car dealership.


ROYAL & SUNALLIANCE: Earns GBP238 Million for First Half 2006
-------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc released it results for
the first half of 2006.

Highlights:

   -- core group(1) net written premiums of GBP2.8 billion, up
      two percent on 2005;

   -- combined operating ratio (COR) of 91.7%, 1.1 points
      better than 2005;

   -- operating result of GBP409 million, up 24% on 2005;

   -- profit before disposals and pension scheme changes
      increased by 41% to GBP333 million;

   -- profit after tax of GBP238 million, up 22% on 2005; and

   -- shareholders' funds increased by 6% to GBP2.9 billion.


Delivery Against Strategic Objectives

   -- Strong performance from all Core businesses'

   -- Building top line momentum -- new business across Core
      Group up 21% on H1 2005;

   -- Achieved target of GBP270 million expense savings ahead of
      schedule;

   -- Initiatives underway to deliver GBP130 million of
      annualized savings by mid 2008; and

   -- U.S. derisking continues -- insurance result of GBP6
      million and moved to single regulator;

   (1) The Core Group is defined as the U.K., International,
       Scandinavia and Group Re.

Core Group COR

The combined operating ratio represents the sum of expense and
commission costs expressed in relation to net written premiums
and claim costs expressed in relation to net earned premiums.
The calculation of the Core Group COR of 91.7% was based on net
written premiums of GBP2.833 billion and net earned premiums of
GBP2.625 billion.

Net Asset Value per Share

The net asset value per share at June 30, 2006, post IAS 19 was
95p and pre IAS 19 was 99p (March 31, 2006: post IAS 19
was 98p and pre IAS 19 was 102p).  At Aug. 4, 2006 the net asset
value per share post IAS 19 was estimated at 97p and pre IAS 19
was estimated at 100p.

The pre IAS 19 net asset value per share for June 30, 2006 was
based on total shareholders' funds of GBP2.920 million, with
adjustments of GBP100 million for the pension deficit and GBP125
million for preference shares; and shares in issue at the period
end of 2,937,226,549 (excludes those held in the ESOP trusts).

Operating EPS for Core Group

The Core Group operating earnings per share for the six months
ended June 30, 2006, was 8.2p compared with 6.5p at June 30,
2005.

Operating earnings per share for the six months to 30 June 2006
was calculated on the Core Group operating result after
interest, minority interests, preference dividends, and related
tax of GBP239 million; and the weighted average number of shares
for the period of 2,915,984,327 (excludes those held in ESOP
trusts).

"We're building good momentum across the Core Group with
targeted profitable growth in selected markets," Andy Haste,
Group CEO of Royal & Sun Alliance Insurance Group plc,
commented.  "We have delivered another strong result and have
now achieved ten consecutive quarters of combineds that start
with a nine.  We remain confident of delivering sustainable
profitable performance. As it stands today we expect to come
inside our full year guidance of a COR of around 95% for the
Core Group."

As of June 30, 2006, Royal & SunAlliance had GBP23.831 billion
in total assets, GBP18.855 billion in total liabilities, and
GBP4.426 billion in total equity.

A full-text copy of Royal & SunAlliance's first half 2006
results is available at no charge at
http://researcharchives.com/t/s?f66

                    About Royal & SunAlliance

Based in London, United Kingdom, Royal & SunAlliance Insurance
Group Plc -- http://www.royalsunalliance.com/-- is a FTSE 100
company, listed on the London Stock Exchange and in New York.
The group consists of three regions -- U.K., Scandinavia and
International -- with operations in 30 countries, providing
general insurance products to over 20 million customers
worldwide.

                           *    *    *

As reported in the Troubled Company Reporter-Europe on March 27,
Standard & Poor's Ratings Services lowered its counterparty
credit and insurer financial strength ratings on Royal & Sun
Alliance Insurance Group PLC's U.S. insurance operations (RSA
USA) to 'BB' from 'BB+'.  S&P said the outlook remains negative.
At the same time, the ratings were withdrawn at the request of
the companies' management.


ROYAL & SUNALLIANCE: Acquires Ireland's EGI Holdings Limited
------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc acquired EGI Holdings
Limited in Ireland for EUR25.2 million (GBP17.3 million) payable
in cash.

EGI is a well-established business with strong positions in a
number of specialty lines.  In 2005 it delivered a profit before
tax of EUR7 million (GBP4.8 million) on net written premiums of
EUR22.5 million (GBP15.4 million).  The transaction is
consistent with Royal & SunAlliance's strategy of building
leading positions in targeted segments and broadens its product
offering.

"We have a strong business in Ireland and a track record of
delivering profitable performance," Simon Lee, Chief Executive
of Royal & SunAlliance International Businesses said.  "The
combination of Royal & SunAlliance's technical excellence and
distribution network and EGI's product expertise creates a
platform on which to drive profitable growth."

                    About Royal & SunAlliance

Based in London, United Kingdom, Royal & SunAlliance Insurance
Group Plc -- http://www.royalsunalliance.com/-- is a FTSE 100
company, listed on the London Stock Exchange and in New York.
The group consists of three regions -- U.K., Scandinavia and
International -- with operations in 30 countries, providing
general insurance products to over 20 million customers
worldwide.

                           *    *    *

As reported in the Troubled Company Reporter-Europe on March 27,
Standard & Poor's Ratings Services lowered its counterparty
credit and insurer financial strength ratings on Royal & Sun
Alliance Insurance Group PLC's U.S. insurance operations (RSA
USA) to 'BB' from 'BB+'.  S&P said the outlook remains negative.
At the same time, the ratings were withdrawn at the request of
the companies' management.


RUBY FINANCE: Moody's Cuts Ba1 Ratings on Class A1 and A2 Notes
---------------------------------------------------------------
Moody's downgraded the ratings of two classes of Credit Linked
Notes issued by Ruby Finance Public Limited Company:

   -- US$70,000,000 Series 2004- 1 Class A1 Notes from Baa2 to
Ba1; and

   -- US$70,000,000 Series 2004- 1 Class A2 Notes from Baa2 to
Ba1.

These two tranches are protected by a first loss threshold of
4.55%.  These rating actions were prompted by the deterioration
of the credit quality of the portfolio.  About 15% of the
reference entities are rated Ba1 or worse.  The worst rated
entity in the portfolio, General Motors Corporation, is rated
B3 + Watch for downgrade.


SKYLARK CO: Delisting JPY30-Bln Convertible Bonds From LSE
----------------------------------------------------------
Skylark Co. Ltd. is applying to have its JPY30-billion Zero
Coupon Convertible Bonds due 2011 delisted from the Official
List of the Financial Services Authority and the admission to
trading of the Bonds on the EEA Regulated Market of the London
Stock Exchange plc cancelled.

The Company redeemed all of the outstanding Bonds on July 28 in
accordance with the Supplemental Trust Deed dated July 14 and
the terms and conditions of the Bonds.  The Company has redeemed
the Bonds as part of an ongoing management buy-out following a
successful tender offer for the shares of the Company by SNC
Investment Co., Ltd.  SNC plans to make the Company its wholly
owned subsidiary pursuant to a series of procedures to be taken
following the tender offer.

Accordingly, the Company is applying to the Financial Services
Authority and the London Stock Exchange plc, for the
cancellations, respectively, of:

   -- the listing of the Bonds on the Official List; and

   -- the trading of the Bonds on the EEA Regulated Market of
the London Stock Exchange plc.

It is anticipated that cancellation of listing and admission to
trading will take effect from August 31.

                     About the Company

Headquartered in Tokyo, Japan, Skylark Co. Ltd. --
http://www.skylark.co.jp/-- operates a chain of family
restaurants in Japan through the following divisions:
Restaurants and food; Construction and maintenance and Other.
The Restaurants and food division engages in restaurant chain
operations, sale of food materials and prepared foods, food
transportation and cleaning.  The Construction division deals
with design, construction and repairs of restaurants and
maintenance of building facilities.  The Other business division
deals with wall paper, manufacture and sale of automobile goods,
real estate buying and selling and hotels and condominium
operations.

                      *     *     *

As reported in TCR-Europe on July 26, Standard & Poor's Ratings
Services lowered its long-term corporate credit and senior
unsecured debt ratings on Skylark Co. Ltd. by two notches to
'BB' from 'BBB-', on expectations of weakening profitability and
a deterioration in the Company's debt structure over the next
one to two years, due to an increase in bank borrowings to carry
out a management buyout and to enhance the profitability of its
existing restaurants.

At the same time, S&P removed Skylark's ratings from CreditWatch
where they were placed with negative implications on June 9,
2006, after its announcement that it would conduct an MBO
through a tender offer for Skylark shares, aimed at privatizing
the Company.


SOUTH COAST: Brings in Joint Liquidators from Recovery hjs
----------------------------------------------------------
Shane Biddlecombe and Gordon Johnston of Recovery hjs were
appointed Joint Liquidators of South Coast Property Maintenance
Limited on May 15

The company can be reached at:

         South Coast Property Maintenance Limited
    15 London Road
    Southampton
    Hampshire SO15 2AE
    Tel: 023 8033 0202


TWINCENTRIC LIMITED: Taps Baker Tilly to Administer Assets
----------------------------------------------------------
Graham Paul Bushby and Geoffrey Lambert Carton-Kelly of Baker
Tilly were appointed joint administrators of Twincentric Limited
(Company Number 04573588) on July 11.

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 Witney, United Kingdom, Twincentric Limited is
engaged in software development.


UIC INSURANCE: Creditors Have Until Sept. 20 to Vote on Scheme
--------------------------------------------------------------
Creditors of UIC Insurance Co. Ltd. (fka The Universal Insurance
Co. Ltd.) will consider the company's proposed scheme of
arrangement under Section 425 of the Companies Act of 1985
during a creditors' meeting at 3:00 p.m. (U.K. time) on
Sept. 25.  The meeting of creditors will be held at:

         UIC Insurance Co. Ltd.
         Tower Room
         The London Underwriting Centre
         3 Minister Court
         Mincing Lane
         London EC3R 7DD
         United Kingdom

The proposed scheme of arrangement and other related documents
may be obtained from http://uic-gt.com/or by written request
to:

         Chiltington International Ltd.
         Attn: David Burns
         8-10 St. Saviours Wharf
         23-25 MIll Street
         London SE1 2BE
         United Kingdom
         Tel: +44(0)207 394 0321
         Fax: +44(0)207 252 0306
         E-mail: uic@chiltington.co.uk

Creditors have until 4:00 p.m. on Sept. 20 to submit their
completed and signed ballots and proxy forms.

The court has appointed Ipe Jacob or, failing him, Richard
White, both of Grant Thornton U.K. LLP, to act as chairman of
the meetings.

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

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

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

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

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


WERL ACCESSORIES: Appoints Ward & Co. as Joint Administrators
-------------------------------------------------------------
Timothy J. Heaselgrave and Barry J. Ward of Ward & Co. were
appointed joint administrators of Werl Accessories Limited
(Company Number 05057209), Wykes Wholesale Limited (Company
Number 05057115) and Wykes Electrical Repairs Limited (Company
Number 03367145) on July 10.

The administrators can be reached at:

         Ward & Co.
         Bank House 7
         Shaw Street
         Worcester
         Worcestershire WR1 3QQ
         United Kingdom
         Tel: 01905 25000

Headquartered in Birmingham, United Kingdom, Werl Accessories
Limited, Wykes Wholesale Limited and Wykes Electrical Repairs
Limited -- http://www.werl.co.uk/-- repairs and wholesales
electrical household goods.


* Corporate Liquidations Down 7.4% in Second Quarter 2006
---------------------------------------------------------
The Insolvency Service released insolvency statistics in the
second quarter 2006.

Company Liquidations

According to the report, there were 3,265 liquidations in
England and Wales in the second quarter of 2006 on a seasonally
adjusted basis.  This was a decrease of 4.9% on the previous
quarter and a decrease of 3.3% on the same period a year ago.

This was made up of 1,226 compulsory liquidations, a decrease of
13.7% on the previous quarter and a decrease of 7.4% on the
corresponding quarter of the previous year, and 2,038 creditors
voluntary liquidations, an increase of 1.4% on the previous
quarter and a decrease of 0.6% on the corresponding quarter of
the previous year.

Some 0.7% of active companies went into liquidation in the
twelve months ended Q2 2006, the same as the previous quarter
and the same as the corresponding quarter of 2005.

Individual Insolvencies

There were 26,021 individual insolvencies in England and Wales
in the second quarter of 2006 on a seasonally adjusted basis.
This was an increase of 10.0% on the previous quarter and an
increase of 66.3% on the same period a year ago.

This was made up of 14,915 bankruptcies, a decrease of 3.3% on
the previous quarter and an increase of 32.5% on the
corresponding quarter of the previous year, and 11,105
Individual Voluntary Arrangements, an increase of 34.9% on the
previous quarter and an increase of 153.2% on the corresponding
quarter of the previous year.


* Moody's Says Eurotunnel Case Unlikely to Affect Guarantors
------------------------------------------------------------
Moody's Investors Service published a report that provides
additional detail on the rationale for its prior announcement
that the bankruptcy of Eurotunnel is unlikely to affect the
ratings of those financial guarantors with exposure to the
entity (MBIA Insurance Corporation, Ambac Assurance Corporation,
Assured Guaranty Corporation and RAM Reinsurance Company Ltd).

The report describes Eurotunnel's capital structure and the
guarantors' exposure to the firm.  It estimates the potential
losses to the guarantors based on various values of Eurotunnel
assuming a strict interpretation of priority-of-claims rules,
and finds that the guarantors can withstand such losses at
current rating levels.

According to Moody's the bankruptcy filing of Eurotunnel is
likely to have a limited impact on the credit profile of the
financial guaranty insurance companies that have exposure to the
firm.

"A review of the guarantors' exposure to Eurotunnel shows that
their relatively senior position in the company's capital
structure, in combination with other credit enhancements, limits
the likelihood of significant ultimate losses relative to their
capital resources" explained Stanislas Rouyer, Senior Vice
President and author of the report.

Claims occurring as a result of the Safeguard Procedure-related
debt-service moratorium should be manageable given the
guarantors' strong liquidity positions.

Jack Dorer, Managing Director, commented that the current
situation at Eurotunnel illustrates that "corporate
restructurings are, by their nature, messy and somewhat
unpredictable, and that guarantors should remain cautious when
looking at transactions with high restructuring risks, even when
the economics and structural protections seem attractive."

Moody's recognizes that the situation is evolving and will
continue to monitor events as they unfold.

                           *********

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
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Information contained herein is obtained from sources believed
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