TCREUR_Public/070713.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

            Friday, July 13, 2007, Vol. 8, No. 138

                            Headlines


A U S T R I A

AUTOHAUS GAMS: Claims Registration Period Ends July 20
FAIZIEV KEG: Claims Registration Period Ends July 24
PRO THERMO: Claims Registration Period Ends Aug. 1
RAUSCHER & LAHER: Claims Registration Period Ends July 24
REMA LLC: Claims Registration Period Ends July 19

STRICH ABBRUCH: Vienna Court Orders Business Shutdown
W & W FRISEURBETEILIGUNG: Creditors' Meeting Set for July 30
WMS METALLSYSTEME: Claims Registration Period Ends Aug. 29


B E L G I U M

GENERAL MOTORS: Bear Stearns Puts Peer Perform Rating on Shares
GENERAL MOTORS: Canadian Arm’s June Sales Drop 6.3% to 42,466
TELENET BIDCO: Fitch Affirms BB- IDR on New Leverage Policy


F R A N C E

EUROPROP SA: Fitch Places BB Rating on EUR6.6 Mln Class F Notes
KAUFMAN & BROAD: Fitch Cuts Issuer Default Rating to BB-


G E R M A N Y

BAU- UND GRUNDSTUECKSGESELLSCHAFT: Claims Filing Ends Sept. 11
BENQ CORP: To Sell Office Buildings to Shin Kong for NTUS$5.04BB
DAIMLERCHRYSLER: Cerberus is "Confident" About Chrysler Funding
DAIMLERCHRYSLER AG: UBS Maintains Buy Rating on Firm's Shares
IMPERIAL SPORTS: Claims Registration Period Ends August 13
KIRCHMEDIA GMBH: Leo Kirch Thinks Deutsche Bank Paid Too Much

KURA STEUERBERATUNGS: Claims Registration Period Ends Aug. 14


I R E L A N D

LEVEL 3: Operating Unit Acquires Servecast Limited for EUR33 Mln
SIGMA-1 CLO-2007: S&P Rates EUR19.8 Million Class F Notes at BB
SIGMA-1 CLO-2007: Fitch Rates EUR19.8 Mln Class F Notes at BB


I T A L Y

ALITALIA SPA: Trade Unions Reject AirOne's Labor Conditions
ALITALIA SPA: Fleet Write Off Looming, Says AirOne's Advisor
DANA CORPORATION: Reaches Agreement with USW and UAW
DANA CORP: Mauritius Unit Closes 4% Capital Buy of Dongfeng Dana


K A Z A K H S T A N

AGROTRANS SERVICE: Proof of Claim Deadline Slated for Aug. 17
ALTYN JUMA: Creditors Must File Claims Aug. 10
COMETA LLP: Claims Filing Period Ends Aug. 17
DJAPAN-AUTO LLP: Creditors' Claims Due on Aug. 17
IHI LLP: Claims Registration Ends Aug. 15

MODELS CLUB: Proof of Claim Deadline Slated for Aug. 10
OMEGA OIL: Creditors Must File Claims Aug. 13
PROMODE CREATIVE AGENCY: Claims Filing Period Ends Aug. 15
ROSKO LLP: Creditors' Claims Due on Aug. 10


K Y R G Y Z S T A N

HEAVEN LLC: Creditors Must File Claims by August 17


L U X E M B O U R G

HUNTSMAN CORP: Inks US$10.6 Billion Sale Pact with Hexion


N E T H E R L A N D S

DALRADIAN EUROPEAN: Moody's Rates EUR15M Class E Notes at (P)Ba3
HEXION SPECIALTY: Inks Definitive Merger Pact with Huntsman
WOOD STREET VI: Fitch Rates EUR13.2 Million Notes at BB


R U S S I A

AVTO-DOR-STROY: Court Starts Bankruptcy Supervision Procedure
ENERGO-COAL LLC: Court Starts Bankruptcy Supervision Procedure
HEALTH LLC: Court Names A. Rychagov as Insolvency Manager
IZHEVSKIE MOTORCYCLES: Creditors Must File Claims by Aug. 16
KUJBYSHEVSKIE LIQUOR: Creditors Must File Claims by Aug. 16

KUVSHVINOVSKOE TRANSPORT: S. Semenov Named Insolvency Manager
LOTUS LLC: Court Starts Bankruptcy Supervision Procedure
MELIK OJSC: Creditors Must File Claims by Aug. 16
NEW WAY: Court Names P. Fominov as Insolvency Manager
NORTH-WEST TELECOMS: Fitch Puts B+ Rating on Watch Positive

ORION CJSC: Court Names N. Chistyukhin as Insolvency Manager
REINFORCED CONCRETE: Creditors Must File Claims by Aug. 16
RUS’ LLC: Voronezh Bankruptcy Hearing Slated for Sept. 19
SRED-URAL-INVEST: Court Names I. Valeev as Insolvency Manager
STERLITAMAKSKIY REINFORCED: Asset Sale Slated for July 18


S P A I N

LUSITANO MORTGAGES 6: S&P Rates EUR31.9 Mln Class E Notes at BB


S W E D E N

GRAPHIC PACKAGING: Altivity Merger Cues Moody's to Hold Ratings


U K R A I N E

DONIS-SERVICE: Claims Submission Deadline Set July 15
ETALON-PLUS LLC: Claims Submission Deadline Set July 15
FORTETSIA T. I.: Claims Submission Deadline Set July 15
IVANITSA LLC: Creditors Must File Claims by July 15
LUKSCOM LLC: Claims Submission Deadline Set July 15

LUTCHENKO LLC Claims Submission Deadline Set July 15
MILLENIUM MUSIC: Claims Submission Deadline Set July 15
PLAST UKRAINE Claims Submission Deadline Set July 15
STATUS-2000 LLC Claims Submission Deadline Set July 15
TAS-KOMMERZBANK: Fitch Ups IDR to BB- on Swedbank Acquisition

UKRAINIAN ENERGY: Creditors Must File Claims by July 15


U N I T E D   K I N G D O M

ALLIANCE BOOTS: Stefano Pessina to Sit as Chair; CEO Leaves Post
ALPHA PLATING: Appoints C. H. I. Moore as Liquidator
ASTON CARPET: Joint Liquidators Take Over Operations
BAA PLC: Passenger Figures Down 0.6% to 13.8 Mln in June 2007
BRITISH SKY: New Customer Additions Up 20% in Third Quarter 2007

BROOKWELLS TRANSPORT: Hires Liquidator from Langley Group
CASCADES INC: Moody's Rates CNDUS$100 Mln Senior Facility at Ba3
CRUSADER PUBS:  Brings In Deloitte & Touche as Administrators
DALRADIAN EUROPEAN: S&P Rates EUR15 Mln Class E Notes at BB-
DOMUS PRODUCTS: Appoints Joint Administrators from BDO Stoy

FORD MOTOR: Gerald L. Shaheen Joins Board of Directors
FORD MOTOR: Partners With Edison to Make Hybrid Cars Accessible
FORD MOTOR: Investing US$100 Mln to Boost Russian Assembly Plant
FOX PARRACK: Brings In Liquidator from B & C Associates
HEDGEMOOR CONSTRUCTION: Names Andrew David Rosler Liquidator

HIGH PERFORMANCE: Taps Smith & Williamson as Administrators
HOSKINS MANAGEMENT: Joint Liquidators Take Over Operations
KFM FABRICATION: Calls In Liquidators from BDO Stoy Hayward
MOLD HYGIENE: Taps Colin Prescott to Liquidate Assets
NW DEVELOPMENTS: Hires Liquidator from Bridgestones

PMS MARKETING: Brings In Liquidators from David Horner & Co.
TIPPING SERVICES: Names Edward Christopher Wetton Liquidator
WALLCROFT GARDENS: Names Administrators from Baker Tilly
METRONET RAIL: WS Atkins Refuses to Commit Further Equity
WINDERMERE XI: S&P Puts BB Ratings on GBP7.49 Mln Class E Notes

WINDERMERE XI: Fitch Rates GBP7.4 Million Class E Notes at BB

* BOOK REVIEW: A Not-So-Tender Offer: An Insider's Look at  
               Mergers and Their Consequences


                            *********


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


AUTOHAUS GAMS: Claims Registration Period Ends July 20
------------------------------------------------------     
Creditors owed money by LLC Autohaus Gams (FN 211419k) have
until July 20 to file written proofs of claim to court-appointed
estate administrator Axel Reckenzaun at:

         Dr. Axel Reckenzaun
         Annenstrasse 10/I
         8020 Graz
         Austria
         Tel: 0316/71 33 53
         Fax: 0316/71 33 53-30
         E-mail: office@boehm-reckenzaun.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Sept. 10 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Leoben
         Hall IV
         First Floor
         Leoben
         Austria

Headquartered in Judenburg, Austria, the Debtor declared
bankruptcy on June 12 (Bankr. Case No. 17 S 50/07g).  


FAIZIEV KEG: Claims Registration Period Ends July 24
----------------------------------------------------     
Creditors owed money by KEG FAIZIEV (FN 277946w) have until
July 24 to file written proofs of claim to court-appointed
estate administrator Dr. Walter Anzboeck at:

         Walter Anzboeck
         Stiegengasse 8
         3430 Tulln
         Austria
         Tel: 02272/61 600
         Fax: 02272/61 600-20
         E-mail: anwalt@anzboeck.at   

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on Aug. 14 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of St. Poelten
         Room 216
         Second Floor
         Old Building
         St. Poelten
         Austria

Headquartered in Tulln, Austria, the Debtor declared bankruptcy
on June 18 (Bankr. Case No. 14 S 113/07v).  


PRO THERMO: Claims Registration Period Ends Aug. 1
--------------------------------------------------     
Creditors owed money by LLC Pro Thermo (FN 191655x) have until
Aug. 1 to file written proofs of claim to court-appointed estate
administrator Christian Ransmayr at:

         Dr. Christian Ransmayr
         Huemerstrasse 1
         Kaplanhofstrasse 2
         4020 Linz
         Austria
         Tel: 0732/796900
         Fax: 0732/796907
         E-mail: c.ransmayr@m-r-s.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Aug. 13 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Linz
         Room 522
         Fifth Floor
         Linz
         Austria

Headquartered in Eferding, Austria, the Debtor declared
bankruptcy on June 13 (Bankr. Case No. 12 S 51/07y).  


RAUSCHER & LAHER: Claims Registration Period Ends July 24
---------------------------------------------------------     
Creditors owed money by OEG Rauscher & Laher (FN 282093v) have
until July 24 to file written proofs of claim to court-appointed
estate administrator Christian Kies at:

         Mag. Christian Kies
         Rathausplatz 8
         3270 Scheibbs
         Austria
         Tel: 07482/44 222
         Fax: 07482/44 222-4
         E-mail: christian.kies@aon.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Aug. 14 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of St. Poelten
         Room 216
         Second Floor
         Old Building
         St. Poelten
         Austria

Headquartered in Kleinpoechlarn, Austria, the Debtor declared
bankruptcy on June 20 (Bankr. Case No. 14 S 116/07k).  


REMA LLC: Claims Registration Period Ends July 19
-------------------------------------------------     
Creditors owed money by LLC REMA (FN 89562i) have until July 19
to file written proofs of claim to court-appointed estate
administrator Kurt Schick at:

         Mag. Kurt Schick
         c/o Mag. Thomas Stenitzer
         Bahnstrasse 1 A
         2130 Mistelbach
         Austria
         Tel: 02572/320 20-0
         Fax: 02572/320 20 32
         E-mail: kanzlei-laa@ra-stenitzer.at  

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Aug. 2 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Korneuburg
         Hall 2
         Room 104
         First Floor
         Korneuburg
         Austria

Headquartered in Bernhardsthal, Austria, the Debtor declared
bankruptcy on June 15 (Bankr. Case No. 32 S 5/07h).  Thomas
Stenitzer represents Mag. Shick in the bankruptcy proceedings.


STRICH ABBRUCH: Vienna Court Orders Business Shutdown
-----------------------------------------------------     
The Trade Court of Vienna entered June 20 an order shutting down
the business of KEG Strich Abbruch (FN 277652m).

Court-appointed estate administrator Susi Pariasek recommended
the business shutdown after determining that the continuing
operations would reduce the value of the estate.

The estate administrator can be reached at:

         Dr. Susi Pariasek
         c/o Mag. Beate Holper
         Gonzagagasse 15
         1010 Vienna
         Austria
         Tel: 533 28 55
         Fax: 533 28 55 28
         E-mail: office@anwaltwien.at  

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on May 23 (Bankr. Case No 5 S 64/07g).  Beate Holper represents
Dr. Pariasek in the bankruptcy proceedings.


W & W FRISEURBETEILIGUNG: Creditors' Meeting Set for July 30
------------------------------------------------------------
Creditors owed money by LLC W & W Friseurbeteiligung (FN
240350g) are encouraged to attend the creditors meeting at
2:20 p.m. on July 30 for the examination of claims.

The meeting of creditors will be held at:

         The Land Court of Innsbruck
         Conference Hall 212
         Second Floor
         New Building
         Maximilianstrasse 4
         6020 Innsbruck
         Austria

Headquartered in Wildschoenau-Oberau, Austria, the Debtor
declared bankruptcy on June 20 (Bankr. Case No. 19 S 67/07m).  
Roland Paumgarten serves as the court-appointed estate-
administrator of the bankrupt estate.  Christine Hinterlechner
represents Dr. Paumgarten in the bankruptcy proceedings.

The estate administrator and his representative can be reached
at:

         Dr. Roland Paumgarten
         c/o Dr. Christine Hinterlechner
         Josef Egger-Strasse 3
         6330 Kufstein
         Austria
         Tel: 05372/62144
         Fax: 05372/6214412
         E-mail: ra.kanzlei@advocat-tirol.at


WMS METALLSYSTEME: Claims Registration Period Ends Aug. 29
----------------------------------------------------------     
Creditors owed money by LLC WMS Metallsysteme (FN 164253z) have
until Aug. 29 to file written proofs of claim to court-appointed
estate administrator Herwig Ernst at:

         Dr. Herwig Ernst
         c/o Dr. Robert Zauchinger
         Hauptplatz 32
         2100 Korneuburg
         Austria
         Tel: 02262/723 17
         Fax: 02262/756 57
         E-mail: lawoffice@mack-ernst.at   

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 12 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Korneuburg
         Room 204
         Second Floor
         Korneuburg
         Austria

Headquartered in Groissenbrunn, Austria, the Debtor declared
bankruptcy on June 14 (Bankr. Case No. 36 S 84/07f).  Robert
Zauchinger represents Dr. Ernst in the bankruptcy proceedings.


=============
B E L G I U M
=============


GENERAL MOTORS: Bear Stearns Puts Peer Perform Rating on Shares
---------------------------------------------------------------
Bear Stearns analyst Peter Nesvold has downgraded General Motors
Corp's shares to "peer perform" from "outperform,"
Newratings.com states.

Mr. Nesvold said in a research note that General Motors' share
price appreciated significantly by 31% since May 10, 2007.

Mr. Nesvold told Newratings.com that the "fundamental challenges
appear to have risen since then, as indicated by a 24% year-on-
year decline in sales in June, higher discounting by the
Japanese players and mortgage-related concerns."

It is a good time to take profits, Newratings.com states, citing
Bear Stearns.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908, GM employs  
about 280,000 people around the world.  With global manufactures
its cars and trucks in 33 countries, including Brazil and India.  
In 2006, nearly 9.1 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM's OnStar subsidiary is the industry leader in
vehicle safety, security and information services.

                            *   *   *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating,
and maintained its SGL-3 Speculative Grade Liquidity Rating.  
The rating outlook remains negative, according to Moody's.


GENERAL MOTORS: Canadian Arm’s June Sales Drop 6.3% to 42,466
-------------------------------------------------------------
For June 2007, General Motors of Canada dealers delivered a
total of 42,466 units, down 6.3% for June 2006.

"June capped off a successful first half of the year for GM with
retail sales up slightly calendar year to date and up 4% during
the second quarter," said Marc Comeau, GM of Canada’s vice-
president of sales, service, and marketing.  "We expect to
continue this trend in the second half of the year as the
recently launched GMC Acadia and Buick Enclave crossovers build
momentum and we launch the highly anticipated new Chevrolet
Malibu this fall."

"Saturn continues to be the big news for GM with its second
consecutive record sales month, up 87.5%.  The Sky was up 83%
over last June and the Aura sedan and Outlook crossover continue
to sell beyond expectations.  The new 2008 Vue is also creating
buzz as it begins to arrive in retail showrooms," Mr. Comeau
added.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908, GM employs  
about 280,000 people around the world.  With global manufactures
its cars and trucks in 33 countries, including Brazil and India.  
In 2006, nearly 9.1 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM's OnStar subsidiary is the industry leader in
vehicle safety, security and information services.

                            *   *   *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating,
and maintained its SGL-3 Speculative Grade Liquidity Rating.  
The rating outlook remains negative, according to Moody's.


TELENET BIDCO: Fitch Affirms BB- IDR on New Leverage Policy
-----------------------------------------------------------
Fitch Ratings has affirmed Belgium-based Telenet BidCo NV's
Long-term Issuer Default rating at 'BB-' with Stable Outlook and
Short-term IDR at 'B'.  

At the same time the agency has affirmed Telenet's EUR1bn senior
secured credit facilities at 'BB+' Telenet Communications NV's
senior notes at 'BB' and Telenet Group Holding NV's senior
discount notes at 'B+'.  

The bank facilities and notes are expected to be refinanced
shortly, with these ratings likely to be withdrawn once greater
clarity over refinancing arrangements have been announced. Fitch
will review the new financing structure and assign relevant
instrument ratings in due course.

The affirmation follows Telenet's announcement that it is
revising its leverage policy to up to 5x and that it intends to
make a capital distribution of between EUR5 and EUR8 per share
(amounting to a cash payment of between EUR500 million and
EUR800 million in total).  The affirmation reflects Fitch's view
that Telenet's strong business profile can support the rating
despite a material revision to financial policy.

"Telenet's business profile, on pure comparative terms, is
arguably the best in the agency's European peer group," said
Stuart Reid, a Director in Fitch's European TMT Group.  "While
operating in one of Europe's smaller territories, the company
combines strong second incumbent qualities in broadband and
telephony with entrenched and highly defensible basic TV
revenue."

In Flanders, Telenet is the market leader with more than 55% of
the broadband market, while its 37% national share places it
narrowly behind Belgacom, in a market with relatively few other
competitors.  While a leverage metric of 5x is high for the
rating level, Fitch expects the company to manage this metric
within a range of 4x-5x, and somewhere below the maximum
threshold, over the medium term.

The affirmation reflects Fitch's view that Telenet is one of the
more established and incumbent-like cable companies in Europe.  
As well its strength in broadband, it is also the market number
two in the residential telephony market with a 25% market share.
What differentiates Telenet most however from some other
European cable operators, is the combination of a strong
telecoms offering with a utility-like basic TV product, where
Telenet's 1.7 million basic TV customers represent a penetration
of 94%.  With basic TV ARPUs of around EUR10 a month, this
business represents a highly defensible revenue stream
(accounting for about 25% of sales) from a utility-like and
price-resilient service.

While Telenet has reported good growth in its premium digital TV
product (with 318,000 premium subscribers at first quarter of
2007), incumbent Belgacom is also making progress with its
Internet-Protocol TV offering (140,000 subscribers).  In
broadband, competition is relatively limited, although risk
remains over the potential sale of Tele2's broadband business in
Belgium.  With Royal KPN ('BBB+ / Stable') suggested as a
possible bidder, the alternative broadband provider could be an
increased threat under the ownership of a well capitalized
operator which already has an established mobile presence in
Belgium.

In the absence of clearer guidance on how close to the 5x metric
leverage will be consistently managed, Fitch takes assurance
from the prudent financial policies employed by management in
the past, and believes the company will want to retain some
flexibility in case of potential acquisitions.  Notwithstanding
the announced capital distribution, Fitch does not expect
leverage to be maintained consistently at the 5x threshold as a
result of dividend payments.  Despite Telenet's increased
ownership by Liberty Global Inc., the agency does not anticipate
undue pressure from the majority shareholder for cash
distributions, beyond the special dividend proposed.  Sustained
leverage towards the lower end of the 4x-5x range, would in
Fitch's view, place Telenet in a strong position within the
'BB-' rating level, while leverage managed at or close to the
upper threshold, would put downward pressure on the rating.

Negative rating factors include the potential for sustained
leverage at close to 5x, the risk of regulatory cuts in
broadband pricing given the dominance of the market leaders,
Belgacom and Telenet, and the possibility of new entrants
disrupting the relatively benign conditions in the multi-
service/cable markets in Belgium.


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


EUROPROP SA: Fitch Places BB Rating on EUR6.6 Mln Class F Notes
---------------------------------------------------------------
Fitch Ratings has assigned final ratings to EuroProp (EMC-VI)
S.A. floating-rate notes due April 2017:

   -- EUR380.25 million Class A: 'AAA'; Outlook Stable
   -- EUR30 million Class B: 'AA'; Outlook Stable
   -- EUR35 million Class C: 'A'; Outlook Stable
   -- EUR30 million Class D: 'BBB'; Outlook Stable
   -- EUR4 million lass E: 'BBB'; Outlook Stable
   -- EUR6.625 million Class F 'BB'; Outlook Stable

This transaction is a securitization of 18 commercial mortgage
loans originated by Citibank, N.A., London Branch and Citibank
International PLC.

The final ratings reflect the credit enhancement provided to
each Class by the subordination of Classes junior to it, the
positive and negative features of the underlying collateral, and
the integrity of the legal and financial structures.  The
ratings also address the timely payment of interest on the notes
and the ultimate repayment of principal by final legal maturity
in April 2017.

Initial CE for the Class A notes (21.7%) is provided by
subordination of the Class B, C, D, E and F notes.  Likewise,
initial CE for the Class B (15.6%), Class C (8.4%), Class D
notes (2.2%), and Class E notes (1.4%) is provided by the
subordination of those notes junior to them.  The Class F notes
provide first loss credit support to the note Classes ranking
more senior to it and do not benefit from any credit support
beyond what is provided by excess spread.

The collateral pool has a current aggregate balance of
EUR485.8 million, secured by 125 properties located throughout
Germany and France.  The portfolio comprises a diverse mix of
retail (40.3% by market value), office (26.2%), multi-family
(14.6%) and other (18.9%) assets let to 236 tenants.  The loan
pool collateral has an aggregate MV of EUR661 million.  The
initial weighted-average loan-to-value ratio is 73.8%, reducing
to a weighted-average balloon LTV of 70.2%, assuming that no
changes in value and no prepayments or defaults occur prior to
individual loan maturities.

Interest and principal on the notes are to be paid quarterly in
arrears, commencing on 30 July 2007.  Amortization, interest
credited to the principal deficiency ledger and recoveries are
applied to the notes on a sequential basis, and any allocated
amount due to a property disposal, a redemption or a prepayment
are allocated to the notes on a pro rata basis or modified pro
rata basis, depending on the pool to which the loan in question
is allocated.

The structure benefits from a liquidity facility, which is
initially sized to 6.5% of the notes' balance.  The facility
increases to 8.7% once the outstanding principal balance reduces
to EUR336 million and below.  The liquidity facility may be
drawn to cover interest shortfalls caused by any of the
borrowers paying less than their interest obligation and by
insufficient funds being available to pay certain issuer and FCC
expenses.


KAUFMAN & BROAD: Fitch Cuts Issuer Default Rating to BB-
--------------------------------------------------------
Fitch Ratings has downgraded French house builder Kaufman &
Broad S.A.'s Long-term Issuer Default Rating and senior
unsecured rating to 'BB-'from 'BBB-'.  KBSA's Short-term IDR has
also been downgraded to 'B' from 'F3'.  The Long-term IDR and
senior unsecured rating remain on Rating Watch Negative.

Fitch has also downgraded KBSA's EUR150 million 8.75% senior
notes due 2009 to 'BB-'from 'BBB-', in line with the senior
unsecured rating.  Fitch has simultaneously withdrawn its rating
on the notes following the successful tender of over 95% of the
outstanding notes by KBSA.

The downgrade reflects heightened financial risk at KBSA
following yesterday's announcement that Financiere Gaillon 8
SAS, an investment vehicle owned by private equity group PAI
Partners, has completed its acquisition of a 50.3% controlling
stake in KBSA.  Specifically, Fitch expects leverage at KBSA to
increase materially in the near future as a direct result of
FG8's acquisition.  Fitch also notes that it views the level of
operating risk at KBSA as being largely unaltered given that the
group's strategy and existing management will remain unchanged.

KBSA's Long-term IDR and senior unsecured rating remain on
Rating Watch Negative to reflect FG8's declared intention to
launch a simplified tender offer for the remaining 49.7% free-
float that it does not already own.  This could increase
leverage at KBSA yet further, should FG8 be successful in
acquiring a significant portion of this free-float.

Fitch will resolve the Rating Watch once the outcome of FG8's
tender offer is known.


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


BAU- UND GRUNDSTUECKSGESELLSCHAFT: Claims Filing Ends Sept. 11
--------------------------------------------------------------
Creditors of Bau- und Grundstuecksgesellschaft mbH Venohr have
until Sept. 11 to register their claims with court-appointed
insolvency manager Mark Zeuner.

Creditors and other interested parties are encouraged to attend
the meeting at 3:00 p.m. on Sept. 25, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Stendal
         Hall 215
         Albrecht der Bar
         Scharnhorststrasse 40
         39576 Stendal
         Germany   
         
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Mark Zeuner
         Lehmweg 17
         D 20251 Hamburg
         Germany
         Tel: 040/480 63 90
         Fax: 040/480 63 999

The District Court of Stendal opened bankruptcy proceedings
against Bau- und Grundstuecksgesellschaft mbH Venohr on July 10.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Bau- und Grundstuecksgesellschaft mbH Venohr
         Wallstrasse 3 b
         38486 Kloetze
         Germany

         Attn: Hans-Georg Venohr, Manager
         Lessingstrasse 9
         38486 Kloetze
         Germany


BENQ CORP: To Sell Office Buildings to Shin Kong for NTUS$5.04BB
--------------------------------------------------------------
BenQ Corp. has agreed to sell two of its office buildings in
Taipei to Shin Kong Life Insurance Co. Ltd. for NTUS$5.04
billion (US$153.6 million), Reuters reports.

The company, according to the report, expects to gain
NTUS$1.2 billion from the sale and expects the transaction to be
completed in 40 to 60 days.

After the completion of the agreement, BenQ would then lease
back the buildings to Shin Kong Life Insurance, a unit under the
larger Shin Kong Financial Holding Co. Ltd, the news agency
relates.

"This is part of the ongoing plan to improve the overall
financial strength of the company," BenQ spokesman Eric Yu was
quoted by Reuters as saying.

Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing  
developing and selling of computer peripherals and
telecommunication products.  It is also a major provider of 3G
handset, camera phones, and other products.

BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses.  The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.

BenQ Mobile has lost market share against giant competitors.  A
Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a
buyer for the company by the Dec. 31, 2006 deadline.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.

The outlook on the long-term rating is negative.  At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NTUS$7.05 billion unsecured corporate bonds due in
2008, 2009, and 2010.

The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.


DAIMLERCHRYSLER: Cerberus is "Confident" About Chrysler Funding
---------------------------------------------------------------
Cerberus Capital Management, L.P. Chairman John Snow said the
firm was "confident" in obtaining financing for its pending
acquisition of DaimlerChrysler AG units Chrysler Corporation LLC
and Chrysler Financial Services LLC, Reuters reports.

The sale is expected to close this quarter.

Mr. Snow also emphasized that Cerberus does not have an "exit
strategy" for the deal, Reuters notes.  He issued his comments
as DaimlerChrysler shares dropped by more than 2 percent on
July 11 in the wake of speculations that there were financing
problems for the acquisition.

DaimlerChrysler CEO Dieter Zetsche reiterated Mr. Snow's
comments and told Reuters that "everything is on track and it
works according to plan," adding that there are "no ifs" in the
latter's statement.

The TCR-Europe reported on May 15, 2007, that an affiliate of
private equity firm Cerberus will make a capital contribution of
US$7.4 billion in return for an 80.1 percent equity interest in
the future new company, Chrysler Holding LLC.

                      About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX)
(FRA:DCX) -- http://www.daimlerchrysler.com/-- develops,  
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The company's worldwide operations are located in Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DAIMLERCHRYSLER AG: UBS Maintains Buy Rating on Firm's Shares
-------------------------------------------------------------
UBS analysts have affirmed their "buy" rating on DaimlerChrysler
AG's shares, Newratings.com reports.

Newratings.com relates that the target price for
DaimlerChrysler's shares was increased to EUR90 from EUR75.

The analysts said in a research note that although
DaimlerChrysler's truck business would generate industry-leading
returns, its margins are weak compared to that of the majority
of other companies.

The analysts told Newratings.com that the restructuring of
DaimlerChrysler's truck business is expected and "would yield
rapid benefits."

"There is an increased likelihood of cash distribution" to
DaimlerChrysler's shareholders, Newratings.com notes, citing
UBS.

The earnings per share estimate for next year was increased to
EUR5.65 from EUR5.20, Newratings.com states.

                      About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX)
(FRA:DCX) -- http://www.daimlerchrysler.com/-- develops,  
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The company's worldwide operations are located in Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


IMPERIAL SPORTS: Claims Registration Period Ends August 13
----------------------------------------------------------
Creditors of Imperial Sports Verwaltungs Gesellschaft mbH have
until Aug. 13 to register their claims with court-appointed
insolvency manager Kay Hassler.

Creditors and other interested parties are encouraged to attend
the meeting at 10:50 a.m. on Aug. 24, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Flensburg
         Hall A 220
         Suedergraben 22
         Flensburg
         Germany
         
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Kay Hassler
         Wrangelstrasse 17-19
         24937 Flensburg
         Germany

The District Court of Flensburg opened bankruptcy proceedings
against Imperial Sports Verwaltungs Gesellschaft mbH on July 9.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Imperial Sports Verwaltungs Gesellschaft mbH
         Attn: Falk Redlich, Manager
         Industriestr. 13
         24848 Kropp
         Germany


KIRCHMEDIA GMBH: Leo Kirch Thinks Deutsche Bank Paid Too Much
-------------------------------------------------------------
Leo Kirch, the German media entrepreneur, thinks German bank
Deutsche Bank paid too much for information the bank needs to
aid its defense in the dispute relating to demands for
compensation, The Financial Times relates.

The TCR-Europe reported on July 12, 2007, that Deutsche Bank is
reportedly paying about EUR9 million to Kurt Bruder, one of
KirchMedia GmbH's insolvency administrators, hoping to gain
vital information that it can use in its defense strategy as it
faces a potentially costly case filed by Mr. Kirch.

The media mogul had previously filed a case seeking EUR1.6
billion (US$2.1 billion) in damages against Deutsche Bank and
its former chairman, Rolf Breuer, for allegedly abetting in the
2002 collapse of KirchMedia GmbH and its debtor-affiliates.

The suit came nearly 18 months after Germany's Federal Supreme
Court ruled that Deutsche Bank and Mr. Breur were partially
responsible for Kirch's troubles and that Mr. Kirch is legally
entitled to compensation.

The court said in the ruling that Mr. Breuer had breached client
confidentiality in a February 2002 interview, in which he
undermined Kirch's creditworthiness by implying that banks would
not lend the group any more money.

                           About Kirch

Headquartered in Ismaning, Germany, KirchMedia GmbH --
http://www.kirchmedia.de/-- was the country's second-largest  
media company prior to its insolvency filing in June 2002.  The
firm's collapse, caused by a US$5.7 billion debt incurred during
an expansion drive, was Germany's biggest since World War II.  
Taurus Holding is the former holding company for the Kirch
group.


KURA STEUERBERATUNGS: Claims Registration Period Ends Aug. 14
-------------------------------------------------------------
Creditors of KURA Steuerberatungsgesellschaft mbH have until
Aug. 14 to register their claims with court-appointed insolvency
manager Joerg Nerlich.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Sept. 4, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Duesseldorf
         Meeting Hall A 341
         Third Floor
         Muehlenstrasse 34
         40213 Duesseldorf
         Germany     
       
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Joerg Nerlich
         Louise-Dumont-Str. 25
         40211 Duesseldorf
         Germany

The District Court of Duesseldorf opened bankruptcy proceedings
against KURA Steuerberatungsgesellschaft mbH on July 10.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         KURA Steuerberatungsgesellschaft mbH
         Attn: Dietmer Basso, Manager
         Brunnenstrasse 17
         40223 Duesseldorf
         Germany


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


LEVEL 3: Operating Unit Acquires Servecast Limited for EUR33 Mln
----------------------------------------------------------------
The operating subsidiary of Level 3 Communications Inc. has
acquired Servecast Limited, a Dublin-based provider of live and
on-demand video management and streaming services for broadband
and mobile platforms.  

Level 3 has paid approximately EUR33 million, the equivalent of
approximately US$45 million, in cash to complete the acquisition
of Servecast.

Founded in 1998, Servecast offers proven publishing and
distribution tools for video rights holders to monetize their
digital assets.  These tools enable customers to manage,
protect, deliver and track online audio and video content.
Servecast provides an easy-to-use platform that supports
multiple stream rates, languages, currencies and formats,
including Adobe Flash(TM), Real Player(TM), Windows Media
Player(TM) and Apple QuickTime(TM).  Servecast's capabilities
have been developed for easy adaptation to emerging video
formats and other content delivery technology.

"Servecast's video and rights management platform, combined with
its streaming services complement Level 3's existing portfolio
of content delivery capabilities," Brady Rafuse, president of
Level 3's Content Markets Group and European Markets Group,
said.  "The addition of these services accelerates our planned
development of this technology.  These capabilities will enable
us to manage and distribute online video content in multiple
formats to meet the increasing demand for high-quality video
over the Internet."

"We are excited to be joining Level 3," Darach Deehan, chief
executive officer of Servecast, said.  "We believe Level 3's
scale and capabilities across Europe and North America will
provide our customers an important opportunity to access new
markets."

"We are confident in our ability to continue offering
Servecast's customers high-quality service as we incorporate
these key capabilities into our portfolio and expand the
availability of these services to additional markets in Europe
and into new markets in North America," Mr. Rafuse said.

"This is a strategic capabilities acquisition that does not
require the type of physical integration associated with our
larger, previously announced metro and backbone transactions."

Level 3 plans to maintain Servecast's headquarters and broadcast
operations center in Dublin, as well as its data centers in
London and Amsterdam.  Servecast's existing streaming server
sites throughout Europe and North America will also be
incorporated into Level 3's Content Delivery Network.

Servecast had approximately US$5 million in annual revenue for
2006.  IBI Corporate Finance advised Servecast in relation to
the transaction.

                         About Level 3

Headquartered in Broomfield, Colorado, Level 3 Communications
Inc. (Nasdaq: LVLT) -- http://www.level3.com/-- is an  
international communications company.  The company provides a
comprehensive suite of services over its broadband fiber optic
network including Internet Protocol (IP) services, broadband
transport and infrastructure services, colocation services,
voice services and voice over IP services.

                            *   *   *

Level 3 Communications Inc. and wholly owned subsidiary, Level 3
Financing Inc. carry Standard & Poor's Rating Services' 'B-'
corporate credit rating.  The outlook is stable.  

The company's new US$1 billion term loan carries Moody's
Investors Service's B1 rating and the company's US$1 billion
fixed and floating rate notes at its Financing subsidiary carry
Moody's B3 rating.  It also bears Moody's Caa1 corporate family
rating with a stable outlook.


SIGMA-1 CLO-2007: S&P Rates EUR19.8 Million Class F Notes at BB
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR66.3 million credit-linked floating-
rate notes to be issued by Sigma-1 CLO-2007 Ltd.

At the same time, Sigma-1 CLO-2007 will also issue EUR43.2
million of unrated notes.
  
The transaction is a partially funded synthetic balance sheet
CLO, referencing a portfolio of bank loans to large SMEs and
midsize companies in Germany and other European countries.
  
The transaction aims to provide economic capital relief to
Dresdner Bank AG and to transfer the credit risk associated with
the portfolio.
  
Payments of interest and principal on the rated notes will
depend on the reference portfolio's performance. Credit support
for each class of notes will be provided by subordination.
  
If periodic portfolio losses exceed the given credit support for
each respective class of rated notes, noteholders will
experience a loss.  The amount of losses allocated will depend
on the actual recoveries achieved by Dresdner Bank during the
workout processes in reverse order of seniority.
  
The collateral in this transaction will be a cash deposit held
with Dresdner Bank and subject to appropriate downgrade
language, to allow a de-linked rating approach.
  
Replenishments will be subject to eligibility criteria and
replenishment conditions. Reference entities chosen for
replenishment will be assigned a credit rating based on the
mapping of Dresdner Bank's internal rating scale for SMEs to
Standard & Poor's rating scale, as derived for this transaction,
and subject to a 12-month review.

                          Ratings List

Sigma-1 CLO-2007 Ltd.
   EUR109.5 Million Credit-Linked Floating-Rate Notes

                          Prelim.        Prelim. Amount
           Class          Rating           (Mln. EUR)
           -----          ------            --------
            A              AAA                0.50
            B              AA+                6.15
            C              A+                17.60
            D              A-                 6.80
            E              BBB               15.45
            F              BB                19.8
            G              NR                33.20
            H              NR                10.00
  
       N R— Not rated.


SIGMA-1 CLO-2007: Fitch Rates EUR19.8 Mln Class F Notes at BB
-------------------------------------------------------------
Fitch Ratings has assigned expected ratings to EUR66.3 million
of SIGMA-1 CLO-2007 Ltd.'s upcoming issue of EUR109.5 million
floating-rate notes, due 2017:

   -- EUR0.5 million Class A secured floating-rate notes: 'AAA'

   -- EUR6.15 million Class B secured floating-rate notes: 'AA+'

   -- EUR17.6 million Class C secured floating-rate notes: 'A+'

   -- EUR6.8 million Class D secured floating-rate notes: 'A-'

   -- EUR15.45 million Class E secured floating-rate notes:
      'BBB'

   -- EUR19.8 million Class F secured floating-rate notes: 'BB'

The Class G and H notes, totaling EUR33.2 million and
EUR10 million, respectively, are not rated.

The final ratings are contingent on the receipt of final
documents conforming to information already received.

The transaction is a partially-funded synthetic CDO referencing
a predominantly German portfolio (80%) of senior unsecured
German-governed obligations of medium and large corporate
entities arising from loans (including syndicated loans),
facilities, letters of credit or guarantees originated and
credit assessed by Dresdner Bank AG.

The ratings of the notes are based on the available credit
enhancement, the credit quality of the reference portfolio and
available collateral, the strength of the guarantee
counterparties and the sound financial and legal structure of
the transaction.  Credit enhancement of the Class A notes,
totaling 5%, is provided by the Class B notes (0.28%), Class C
notes (0.81%), Class D notes (0.31%), Class E notes (0.71%),
Class F notes (0.91%) and the unrated Class G and H notes
(together 1.98%).

At closing, Dresdner Bank AG will enter into a loss guarantee
with the issuer.  Under the guarantee, the issuer will sell
credit protection against losses of up to EUR109.5 million on
the EUR2.180.67 billion reference portfolio to Dresdner Bank AG.  
The issuer will hedge itself by issuing credit-linked notes.  
The issuer will invest the note issuance proceeds in cash
collateral deposited at Dresdner Bank AG.

The transaction features a three-year replenishment period,
subject to the eligibility and replenishment criteria, which
include a weighted average life covenant, as well as country-
specific and rating-dependent debtor group concentration limits.
The country-specific concentration criteria ensure that at least
80% of the reference portfolio notional is represented by German
claims. Replenishments will be subject to the Fitch VECTOR test.

The expected ratings address the ultimate repayment of principal
at maturity and timely payment of interest according to the
terms and conditions of the notes.

SIGMA-1 CLO-2007 Ltd. is a bankruptcy-remote special purpose
vehicle incorporated in Ireland and domiciled in Dublin.


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


ALITALIA SPA: Trade Unions Reject AirOne's Labor Conditions
-----------------------------------------------------------
Trade unions at Alitalia S.p.A. have rejected the labor
conditions outlined by AirOne S.p.A. for its acquisition of the
Italian government's 39.9% stake in the national carrier,
Thomson Financial reports citing daily La Stampa.

AirOne chief executive Carlo Toto wants Alitalia's unions to
refrain from staging strikes for three years and to renegotiate
contracts only every 10 years, La Stampa relates.

If the unions reject the conditions, AirOne may withdraw its bid
for Alitalia without paying a EUR50-million fine, La Stampa
added.

AP Holding S.p.A., a consortium of AirOne and Intesa-San Paolo
S.p.A., is trying to outbid U.S.-based MatlinPatterson Global
Advisers LLC.

As previously reported, the Italian government extended to
July 23, 2007, the deadline within which final bidders must
submit binding offers for its 39.9% stake in national carrier
Alitalia.

                          About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The Italian government owns 49.9%
of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered
EUR93 million in net profits in 2002 after a EUR1.4 billion
capital injection.  The carrier booked consecutive annual net
losses of EUR520 million in 2003, EUR813 million in 2004, and
EUR168 million in 2005.


ALITALIA SPA: Fleet Write Off Looming, Says AirOne's Advisor
------------------------------------------------------------
Alitalia S.p.A. may have to write off again the value of its
aging fleet by 25%, according to advisory firm hired by bidder
AirOne S.p.A., Reuters reports citing a source privy to the
matter.

Aviation advisory Airclaims estimated that Alitalia's current
fleet value of EUR2.2 billion must be cut by 25%, the source
told Reuters.

As reported in the TCR-Europe on June 15, 2007, Alitalia wrote
EUR197.3 million off the value of its fleet.  The company blamed
the write off for its EUR135 million net loss in the first
quarter of 2006.

Reuters suggests that another write off must hamper the current
effort to sell Alitalia to a private investor.

A consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A. is
trying to outbid MatlinPatterson Global LLC for the Italian
government's 39.9% stake in Alitalia.

                          About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The Italian government owns 49.9%
of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered
EUR93 million in net profits in 2002 after a EUR1.4 billion
capital injection.  The carrier booked consecutive annual net
losses of EUR520 million in 2003, EUR813 million in 2004, and
EUR168 million in 2005.


DANA CORPORATION: Reaches Agreement with USW and UAW
----------------------------------------------------
Dana Corporation on Friday disclosed a series of interrelated
agreements that will substantially reduce the company's
operating costs and provide important momentum toward its
emergence from bankruptcy as a competitive, sustainable
business.

The agreements consist of:

    -- A settlement agreement with each of the United Steel
       Workers and the United Auto Workers, which will lower
       Dana's labor costs and replace the company's health care
       and long-term disability obligations for retirees and
       employees represented by these unions with Voluntary
       Employees' Beneficiary Association trusts to which Dana
       will contribute in aggregate approximately US$700 million
       in cash, less certain benefit payments made prior to the
       effective date of the company's plan of reorganization,
       and approximately US$80 million in common stock of the
       reorganized Dana;

    -- An agreement with Centerbridge Capital Partners, L.P.,
       and its affiliates on the terms under which the firm will
       invest up to US$500 million in cash for convertible
       preferred stock in the reorganized Dana and facilitate an
       additional investment by other investors of up to US$250
       million in convertible preferred stock; and

    -- A plan support agreement with the USW, the UAW, and
       Centerbridge, under which these parties will support a
       plan of reorganization filed by Dana that includes both
       the labor settlements and the Centerbridge investment
       agreement.

These agreements are subject to approval by the Bankruptcy Court
for the Southern District of New York, where the company's
Chapter 11 bankruptcy proceeding is pending. The union
settlement agreements are also subject to ratification by Dana's
USW and UAW employees, which the unions will seek in the near
term.

"Through our negotiations with the USW and the UAW, and
negotiations with Centerbridge for the investment that will
contribute to our ability to fund the VEBAs, we have reached
what we believe are fair and constructive agreements," said Mike
Burns, Dana's chairman and chief executive officer. "I am
particularly pleased that these agreements were reached as a
result of a shared commitment - from all of the involved parties
-- to the long-term success and viability of Dana Corporation."

"We welcome the investment by Centerbridge, a private equity
investor with considerable expertise in the automotive industry
and complex restructurings. Centerbridge brings a long-term
perspective and a strong commitment to assisting us in building
a solid future for Dana," Mr. Burns added. "While there is a
good deal of work yet to be done, we are on track to file a
reorganization plan by the beginning of September and to emerge
from bankruptcy by year end."

              Settlements with USW and UAW

Encompassed in the settlements with the USW and UAW are four-
year extensions of Dana's collective bargaining agreements with
all of its USW- and UAW-organized facilities in the United
States and new agreements with several recently organized
facilities. Among other items, the extended and new bargaining
agreements will provide for the establishment of a two-tier wage
structure at certain affected U.S. operations, changes in
disability benefits, and a freeze on credited service and
benefit accruals under the pension plans for active employees
represented by the USW and UAW.

"These agreements will resolve significant ongoing cost issues
when implemented and they provide important momentum toward our
completion of a reorganization plan that will position us to
operate as a competitive, sustainable business after emergence,"
Mr. Burns said.

Each of the union settlement agreements also calls for the
establishment of a VEBA to replace the company's current retiree
health care plans and long- term disability obligations for
employees covered by USW and UAW collective bargaining
agreements. A VEBA is a special, tax-deductible trust that can
be used to provide certain benefits, such as medical
reimbursement, to participants and their beneficiaries.

The settlement agreements provide that upon Dana's emergence
from bankruptcy, the company will contribute, in aggregate,
approximately US$700 million in cash (less certain benefit
payments made prior to the effective date of the company's plan
of reorganization) and approximately US$80 million in common
stock of reorganized Dana to the VEBAs in exchange for the
termination of Dana's obligation to provide non-pension retiree
welfare benefits for USW- and UAW-represented retirees and long-
term disability benefits to USW- and UAW-represented employees.
The company will continue to provide benefits for these retirees
and employees under its existing plans until emergence. Dana
currently has an aggregate of approximately US$1.1 billion in
unfunded non- pension benefit and long-term disability
obligations under its U.S. post-retirement health care plans for
USW- and UAW-represented retirees and employees.

Dana estimates that the modifications to the USW and UAW
collective bargaining agreements and other provisions of the
union settlement agreements will collectively result in annual
savings of more than US$100 million.

             Agreement for Issuance of New Equity

Under terms of the investment agreement, Centerbridge will
purchase up to US$500 million of convertible preferred stock of
the reorganized Dana and facilitate an additional investment of
up to US$250 million in convertible preferred stock.

The conversion price will be based on trading prices of common
stock of the reorganized Dana during a short period after
emergence. Using preliminary forecasts and a preliminary
valuation as an estimate of future market trading prices for the
reorganized Dana's common stock, the company estimates that the
US$500 million of convertible preferred shares would represent
less than 25% of the fully diluted common stock of the
reorganized Dana on an as- converted basis.

Proceeds from the investment will be deployed in part to fund
the VEBA trusts that will be established under the settlement
agreements with the USW and UAW.

The closing of the Centerbridge investment will be subject to
Dana's filing of a plan of reorganization and a disclosure
statement by September 3, 2007, as well as other customary
conditions, but will not be subject to further due diligence.

Dana will be able to terminate its arrangements with
Centerbridge to accept an alternative transaction or plan under
certain circumstances, with the reasonable consent of the USW
and UAW.

                          Initiatives

"Last November, to address the harsh reality that Dana had
generated more than US$2 billion in losses over the past five
years, we announced a series of interdependent restructuring
initiatives," Mr. Burns added. "These initiatives, affecting all
of the company's constituencies - our customers, suppliers, both
union and non-union employees and retirees - were designed to
result in an aggregate pre-tax annual income improvement of
US$405 million to US$540 million."

The Dana initiatives call for savings in five interrelated
areas:

1. Achieving substantial price recovery from customers;

2. Optimizing Dana's U.S. manufacturing footprint, including
   the moving of certain operations to lower-cost sites;

3. Reducing labor costs by creating a more industry-
   competitive cost structure;

4. Eliminating retiree health and welfare costs; and

5. Reducing administrative costs.

"Without the settlements with the USW and UAW, essential savings
in other areas could be jeopardized," Mr. Burns said. "With
these settlements, we will be solidly within the range of
savings we need to move forward with our plan of reorganization
and emerge as a competitive, sustainable business."

            About Centerbridge Capital Partners L.P.

Centerbridge is a US$3.2 billion multi-strategy private
investment firm. The firm is dedicated to partnering with world-
class management teams in a range of industry verticals.
Centerbridge's investment style provides the flexibility to
employ various strategies to help companies achieve their
operating and financial objectives. The limited partners of
Centerbridge include many of the world's most prominent
financial institutions, university endowments, pension funds,
and charitable trusts.

                        About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- (OTC  
Bulletin Board: DCNAQ) designs and manufactures products for
every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies. Dana employs 46,000 people in 28 countries.
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept.
30, 2005, the Debtors listed US$7,900,000,000 in total assets
and US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007. They have until Nov. 2, 2007, to solicit acceptances of
that plan.


DANA CORP: Mauritius Unit Closes 4% Capital Buy of Dongfeng Dana
----------------------------------------------------------------
Dana Corporation's wholly owned subsidiary, Dana Mauritius
Limited, closed the purchase of 4% of the registered capital of
Dongfeng Dana Axle Co, Ltd. from Dongfeng Motor Co, Ltd. and
certain of its affiliates under the amended sale and purchase
agreement among the parties that have been reported previously.

Dana Mauritius paid about US$5 million for this equity interest.

Under the amended sale and purchase agreement, Dana Mauritius
has agreed, subject to certain conditions, to purchase an
additional 46% equity interest in Dongfeng Dana Axle Co, Ltd.
within the next three years for about US$55 million.

Dongfeng Dana is a Chinese commercial vehicle axle manufacturer
formerly known as Dongfeng Axle Co, Ltd.

                      About Dana Corp

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- (OTC  
Bulletin Board: DCNAQ) designs and manufactures products for
every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies.  Dana employs 46,000 people in 28 countries.
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept.
30, 2005, the Debtors listed US$7,900,000,000 in total assets
and US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007. They have until Nov. 2, 2007, to solicit acceptances of
that plan.


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


AGROTRANS SERVICE: Proof of Claim Deadline Slated for Aug. 17
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Agrotrans Service insolvent.

Creditors have until Aug. 17 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan


ALTYN JUMA: Creditors Must File Claims Aug. 10
----------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar has
declared LLP Altyn Juma Pvl insolvent.

Creditors have until Aug. 10 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Kutuzov Str. 91/1
         Pavlodar
         Kazakhstan
         Tel: 8 (3182) 54-98-55


COMETA LLP: Claims Filing Period Ends Aug. 17
---------------------------------------------  
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Cometa insolvent.

Creditors have until Aug. 17 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Auelbekov Str. 126/75
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (3162) 25-40-67


DJAPAN-AUTO LLP: Creditors' Claims Due on Aug. 17
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Djapan-Auto insolvent.

Creditors have until Aug. 17 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan


IHI LLP: Claims Registration Ends Aug. 15
-----------------------------------------
Japanese Company Isikavadzima-Harima Hevi Industries Co. Ltd.
(IHI) has declared insolvency.  Creditors have until Aug. 15 to
submit written proofs of claims to:

         Japanese Company Isikavadzima-Harima
         Hevi Industries Co. Ltd. (IHI)
         Kabanbai batyr Str. 26
         Semipalatinsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (3222) 56-07-62


MODELS CLUB: Proof of Claim Deadline Slated for Aug. 10
-------------------------------------------------------
LLP Models Club Kazakhstan has declared insolvency.  Creditors
have until Aug. 10 to submit written proofs of claims to:

         LLP Models Club
         Makataev Str. 81-78
         Almaty
         Kazakhstan


OMEGA OIL: Creditors Must File Claims Aug. 13
---------------------------------------------
LLP Omega Oil has declared insolvency.  Creditors have until
Aug. 13 to submit written proofs of claims to:

         LLP Omega Oil
         Kurmangaliyev Str. 17
         Almaty
         Kazakhstan
         Tel: 8 (3272) 91-62-29, 91-72-24


PROMODE CREATIVE AGENCY: Claims Filing Period Ends Aug. 15
----------------------------------------------------------
LLP Promode Creative Agency has declared insolvency.  Creditors
have until Aug. 15 to submit written proofs of claims to:

         LLP Promode Creative Agency
         Office 116
         Bogenbai batyr Str. 117
         Djangildin Str. 32
         Almaty
         Kazakhstan


ROSKO LLP: Creditors' Claims Due on Aug. 10
-------------------------------------------
LLP Construction Company Rosko has declared insolvency.  
Creditors have until Aug. 10 to submit written proofs of claims
to:

         LLP Construction Company Rosko
         Satpaev Str. 30/181-1
         Almaty
         Kazakhstan


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


HEAVEN LLC: Creditors Must File Claims by August 17
---------------------------------------------------
LLC Heaven has declared insolvency.  Creditors have until
Aug. 17 to submit written proofs of claim to:

         LLC Heaven
         Skryabin Str. 76-42
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 90-02-30


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


HUNTSMAN CORP: Inks US$10.6 Billion Sale Pact with Hexion
---------------------------------------------------------
Huntsman Corporation has agreed to a definitive merger agreement
with Hexion Specialty Chemicals Inc., pursuant to a transaction
with a total value of approximately US$10.6 billion, including
the assumption of debt.

Huntsman has terminated the merger agreement with Basell AF.
    
Under the terms of the agreement, Hexion will acquire all of the
outstanding common stock of Huntsman for US$28 per share in
cash. The agreement also provides that the cash price per share
to be paid by Hexion will increase at the rate of 8% per annum
beginning 270 days from July 12, 2007.
    
The Hexion Transaction was a superior proposal to the Basell
Agreement and was unanimously approved by the board of directors
of Huntsman.  Huntsman's board approved the agreement for the
Hexion Transaction at the recommendation of a Transaction
Committee comprised solely of Huntsman independent directors.
Hexion's board also has approved the agreement.
    
The transaction is subject to customary closing conditions,
including regulatory approval in the U.S. and in Europe, well as
the approval of Huntsman shareholders.  Entities controlled by
MatlinPatterson and the Huntsman family and a Huntsman
charitable trust, who collectively own approximately 57% of
Huntsman's common stock, have agreed to vote in favor of the
transaction.

The transaction is not subject to a financing condition and
commitments have been obtained by Hexion for all necessary debt
financing from affiliates of Credit Suisse and Deutsche Bank AG.
Hexion will have up to 12 months, subject to a 90 day extension
by the Huntsman board under certain circumstances, to close the
transaction.
    
Huntsman's board authorized the delivery of a notice of
termination of the Basell Agreement, along with the payment of
the US$200 million break-up fee required by the Basell
Agreement.  Hexion funded US$100 million of the Basell break-up
fee while Huntsman funded the remaining US$100 million.

"This is a very favorable outcome for our shareholders and one
that reflects a confidence in our company of which our
associates can be very proud,” Peter R. Huntsman, president and
CEO of Huntsman, said.  “Hexion is an attractive candidate for a
merger with Huntsman.  We have complementary businesses and,
together, will have an even stronger technology platform from
which to serve our customers."
    
"I have invested much of my life in Huntsman Corporation and
consider it the highest honor to be associated with such
exceptional customers and associates,” Jon M. Huntsman, founder
and chairman of Huntsman, added.  “However, the time has come
when it is in the best interests of our shareholders to sell the
company.  I am pleased with the outcome of our merger
negotiations with Apollo, and have every confidence that the
combined Hexion and Huntsman teams will be superb stewards of
this business for the next era."
    
Merrill Lynch & Co. and Cowen and Company LLC acted as financial
advisors to Huntsman.  Vinson & Elkins L.L.P. and Shearman and
Sterling LLP acted as legal advisors to Huntsman.

                        About Hexion

Based in Columbus, Ohio, Hexion Specialty Chemicals, Inc. --
http://www.hexion.com/-- serves the global wood and industrial  
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries.  Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.
The company has its Asian headquarters in Singapore, with
offices in Australia, China, Korea, Malaysia, New Zealand,
Taiwan, and Thailand.  In Latin America, the company has
operations in Argentina, Brazil and Colombia.

                        About Huntsman

Huntsman Corporation -- http://www.huntsman.com/-- is a global  
manufacturer and marketer of differentiated chemicals and
pigments.  Its operating companies manufacture products for a
variety of global industries, including chemicals, plastics,
automotive, aviation, textiles, footwear, paints and coatings,
construction, technology, agriculture, health care, detergents,
personal care, furniture, appliances and packaging.  Originally
known for pioneering innovations in packaging and, later for
rapid and integrated growth in petrochemicals, Huntsman today
has operations in 24 countries, including Argentina, Belarus,
Japan, Luxembourg, Malaysia, Spain and the United Kingdom, among
others.  The company had 2006 revenues from all operations of
over US$13 billion.

                            *    *    *

As reported in the TCR-Europe on June 28, 2007, Moody's
Investors Service placed the debt ratings and the corporate
family ratings (CFR -- Ba3) for Huntsman Corporation (Huntsman)
and Huntsman International LLC, a subsidiary of Huntsman under
review for possible downgrade.

These ratings were affected:

Huntsman Corporation

  -- Corporate Family Rating, Ba3

Huntsman International LLC

  -- Corporate Family Rating, Ba3
  -- Senior Secured Bank Credit Facility, Ba1, LGD2, 21%
  -- Senior Subordinated Regular Bond/Debenture, B2, LGD5, 89%

Huntsman LLC

  -- Senior Secured Regular Bond/Debenture, Ba1, LGD2, 21%
  -- Senior Unsecured Regular Bond/Debenture, Ba3, LGD4, 57%

Outlook Actions:

Huntsman Corporation, Huntsman International LLC,
   and Huntsman LLC

  -- Outlook, changed to rating under review for downgrade from
     stable


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


DALRADIAN EUROPEAN: Moody's Rates EUR15M Class E Notes at (P)Ba3
----------------------------------------------------------------
Moody's Investors Service assigned provisional credit ratings to
six classes of Notes including a class of multi-currency
Variable Funding Notes to be issued by Dalradian European CLO IV
B.V., a Dutch special purpose company.  The ratings are as
follows:

   -- (P)Aaa to the EUR100 million Senior Secured Floating Rate
       Variable Funding Notes due 2023;

   -- (P)Aaa to the EUR164 million Class A Senior Secured
       Floating Rate Notes due 2023;

   -- (P)Aa2 to the EUR32 million Class B Senior Secured
       Floating Rate Notes due 2023;

   -- (P)A2 to the EUR24 million Class C Deferrable Secured
       Floating Rate Notes due 2023;

   -- (P)Baa3 to the EUR25 million Class D Deferrable Secured
       Floating Rate Notes due 2023; and

   -- (P)Ba3 to the EUR15 million Class E Deferrable Secured
       Floating Rate Notes due 2023.

The provisional ratings address the expected loss posed to
investors up to the legal final maturity in 2023.

These provisional ratings are based upon:

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

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

   3. the overcollateralization of the Notes;

   4. the analysis of the foreign currency risk involved in the
      transaction;

   5. the expertise of Elgin Capital LLP as collateral manager;
      and

   6. the legal and structural integrity of the issue.

This transaction is a high yield collateralized loan obligation
related to a collateral portfolio of EUR389.8 million, comprised
primarily of senior secured loan obligations, senior unsecured
loan obligations and mezzanine loans primarily issued by
companies located in Western Europe.  This portfolio is
dynamically managed by the Elgin Capital LLP.  This portfolio
will be partially acquired at closing date (target 85%) and
partially during the 6 month ramp-up period in compliance with
the Eligibility Criteria, the Portfolio Profile Tests, the
Coverage Tests and the Collateral Quality Tests.  Thereafter,
the portfolio of loans will be actively managed and the
portfolio manager will have the option to buy or sell assets in
the portfolio.  Any addition or removal of assets will be
subject to a number of portfolio criteria.

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions.  Upon a conclusive review
of the transaction and associated documentation, Moody's will
endeavor to assign definitive ratings.  A definitive rating (if
any) may differ from a provisional rating.


HEXION SPECIALTY: Inks Definitive Merger Pact with Huntsman
-----------------------------------------------------------
Huntsman Corporation has agreed to a definitive merger agreement
with Hexion Specialty Chemicals Inc., pursuant to a transaction
with a total value of approximately US$10.6 billion, including
the assumption of debt.

Huntsman has terminated the merger agreement with Basell AF.
    
Under the terms of the agreement, Hexion will acquire all of the
outstanding common stock of Huntsman for US$28 per share in
cash. The agreement also provides that the cash price per share
to be paid by Hexion will increase at the rate of 8% per annum
beginning 270 days from July 12, 2007.
    
The Hexion Transaction was a superior proposal to the Basell
Agreement and was unanimously approved by the board of directors
of Huntsman.  Huntsman's board approved the agreement for the
Hexion Transaction at the recommendation of a Transaction
Committee comprised solely of Huntsman independent directors.
Hexion's board also has approved the agreement.
    
The transaction is subject to customary closing conditions,
including regulatory approval in the U.S. and in Europe, well as
the approval of Huntsman shareholders.  Entities controlled by
MatlinPatterson and the Huntsman family and a Huntsman
charitable trust, who collectively own approximately 57% of
Huntsman's common stock, have agreed to vote in favor of the
transaction.

The transaction is not subject to a financing condition and
commitments have been obtained by Hexion for all necessary debt
financing from affiliates of Credit Suisse and Deutsche Bank AG.
Hexion will have up to 12 months, subject to a 90 day extension
by the Huntsman board under certain circumstances, to close the
transaction.
    
Huntsman's board authorized the delivery of a notice of
termination of the Basell Agreement, along with the payment of
the US$200 million break-up fee required by the Basell
Agreement.  Hexion funded US$100 million of the Basell break-up
fee while Huntsman funded the remaining US$100 million.

"This is a very favorable outcome for our shareholders and one
that reflects a confidence in our company of which our
associates can be very proud,” Peter R. Huntsman, president and
CEO of Huntsman, said.  “Hexion is an attractive candidate for a
merger with Huntsman.  We have complementary businesses and,
together, will have an even stronger technology platform from
which to serve our customers."
    
"I have invested much of my life in Huntsman Corporation and
consider it the highest honor to be associated with such
exceptional customers and associates,” Jon M. Huntsman, founder
and chairman of Huntsman, added.  “However, the time has come
when it is in the best interests of our shareholders to sell the
company.  I am pleased with the outcome of our merger
negotiations with Apollo, and have every confidence that the
combined Hexion and Huntsman teams will be superb stewards of
this business
for the next era."
    
Merrill Lynch & Co. and Cowen and Company LLC acted as financial
advisors to Huntsman.  Vinson & Elkins L.L.P. and Shearman and
Sterling LLP acted as legal advisors to Huntsman.
    
                        About Huntsman Corp.

Huntsman Corp. (NYSE: HUN) -- http://www.huntsman.com/--  
manufactures and markets differentiated and commodity chemicals.  
Its operating companies manufacture products for a variety of
global industries including chemicals, plastics, automotive,
aviation, textiles, footwear, paints and coatings, construction,
technology, agriculture, health care,  detergent, personal care,
furniture, appliances and packaging.

                      About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial    
markets through a broad range of thermoset technologies,
specialty
products and technical support for customers in a diverse range
of
applications and industries.  Hexion Specialty Chemicals is
owned
by an affiliate of Apollo Management, L.P.  The company has
locations in China, Australia, Netherlands, and Brazil. It is an
Apollo Management L.P. portfolio company.  Hexion had 2006 sales
of US$5.2 billion and employs more than 7,000 associates.

                           *     *     *

As reported in the Troubled Company Reporter on July 9, 2007,
Standard & Poor's Ratings Services placed its 'B' corporate
credit
rating and other ratings on Columbus, Ohio-based Hexion
Specialty
Chemicals Inc. on CreditWatch with negative implications.  The
ratings on related entities were also placed on CreditWatch.


WOOD STREET VI: Fitch Rates EUR13.2 Million Notes at BB
-------------------------------------------------------
Fitch Ratings assigned expected ratings to Wood Street CLO VI
B.V.'s upcoming issue of floating-rate notes:

   -- EUR225 million Class A senior secured floating-rate notes:
      'AAA'

   -- EUR23.7 million Class B senior secured floating-rate
      notes: 'AA'

   -- EUR18.4 million Class C senior secured deferrable
      floating-rate notes: 'A'

   -- EUR15.5 million Class D senior secured deferrable
      floating-rate notes: 'BBB'

   -- EUR13.2 million Class E senior secured deferrable
      floating-rate notes: 'BB'

The transaction is a securitization of leveraged loans including
primarily senior secured loans, second lien loans, mezzanine
obligations, high yield bonds and structured finance securities.

The final ratings are contingent on the receipt of final
documents conforming to information already received.

The expected ratings of the Class A and B notes address the
ultimate repayment of principal at maturity and the timely
payment of interest when due, according to the terms of the
notes.  For the Class C, D and E notes, which can defer
interest, the expected ratings address the ultimate payment of
principal and interest, including deferred interest, at
maturity.  The ratings are based on the quality and diversity of
the portfolio of assets, which are selected by the collateral
manager, Alcentra Limited, subject to the guidelines outlined in
the collateral management agreement.

The expected ratings are also based on the credit enhancement
provided to the various Classes of notes in the form of
subordination, structural protection and excess spread.  Credit
enhancement, in the form of subordination, for the Class A will
total 28.89%, of which 7.49% will be provided by the B notes,
5.81% by the C notes, 4.9% by the D notes, 4.17% by the E notes
and 6.52% by the unrated subordinated Class of notes.

Alcentra will actively manage the collateral over the seven-year
reinvestment period.  Derivative Fitch assigned Alcentra Limited
a 'CAM1-' rating for European leveraged loans on May 11, 2007,
primarily based on its high level of focus on leveraged loans,
and experienced and stable management team.

Wood Street CLO VI B.V. is a limited liability company
incorporated under the laws of the Netherlands.  At the closing
date, the issuer is expected to have purchased at least 60% of
the target portfolio; the remainder will be purchased over the
following 245 days.


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


AVTO-DOR-STROY: Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------------
The Arbitration Court of Khanty-Mansiyskiy commenced bankruptcy
supervision procedure on CJSC Avto-Dor-Story (TIN 8603099160).
The case is docketed under Case No. A75-2186/2007.

The Temporary Insolvency Manager is:

         K. Lazarev
         Panel 25 2P-2 Str. 32
         Yugo-Zapadnyj Promuzel
         Nizhnevartovsk
         628600 Khanty-Mansiyskiy
         Russia

The Court is located at:

         The Arbitration Court of Khanty-Mansiyskiy
         Lenina Str. 54/1
         Khanty-Mansiysk
         Russia

The Debtor can be reached at:

         CJSC Avto-Dor-Story
         Panel 25 2P-2 Str. 32
         Yugo-Zapadnyj Promuzel
         Nizhnevartovsk
         628600 Khanty-Mansiyskiy
         Russia


ENERGO-COAL LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Arbitration Court of Kemerovo commenced bankruptcy
supervision procedure on LLC Energo-Coal.  The case is docketed
under Case No. A27-3546/2007-4.

The Temporary Insolvency Manager is:

         V. Kryuchkovskiy
         Post User Box 45
         Yugra
         652050 Kemerovo
         Russia

The Court is located at:

         The Arbitration Court of Kemerovo
         Krasnaya Str. 8
         Kemerovo
         Russia

The Debtor can be reached at:

         LLC Energo-Coal
         N. Ostrovskogo Str. 32-309
         650000 Kemerovo
         Russia


HEALTH LLC: Court Names A. Rychagov as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Ivanovo appointed A. Rychagov as
Insolvency Manager for LLC Health.  He can be reached at:

         A. Rychagov
         B. Vorobyevskaya Str. 26-49
         153000 Ivanovo
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A17-1926/07-1-B.

The Court is located at:

         The Arbitration Court of Ivanovo
         B. Khmelnitskogo Str. 59B
         Ivanovo
         Russia

The Debtor can be reached at:

         LLC Health
         Anikina Str. 7A
         Shuya
         155902 Ivanovo
         Russia


IZHEVSKIE MOTORCYCLES: Creditors Must File Claims by Aug. 16
------------------------------------------------------------
Creditors of OJSC Izhevskie Motorcycles have until Aug. 16 to
submit proofs of claim to:

         A. Kolpakov
         Insolvency Manager
         Post User Box 900
         Izhevsk
         426004 Udmurtiya
         Russia

The Arbitration Court of Udmurtiya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A71-1332/2006-G26.

The Court is located at:

         The Arbitration Court of Udmurtiya
         Lomonosova Str. 5
         Izhevsk
         426004 Udmurtiya
         Russia

The Debtor can be reached at:

         OJSC Izhevskie Motorcycles
         Telegina Str. 30
         Izhevsk
         Udmurtiya
         Russia


KUJBYSHEVSKIE LIQUOR: Creditors Must File Claims by Aug. 16
-----------------------------------------------------------
Creditors of OJSC Kujbyshevskie Liquor-Vodka Products (TIN
5447101544) have until Aug. 16 to submit proofs of claim to:

         D. Sandrakov
         Insolvency Manager
         Apartment 64
         B. Pobedy, 45 a
         394088 Voronezh
         Russia

The Arbitration Court of Novosibirsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A45-14486/06-10/303.

The Court is located at:

         The Arbitration Court of Novosibirsk
         Kirova Str. 3
         630007 Novosibirsk
         Russia

The Debtor can be reached at:

         OJSC Kujbyshevskie Liquor-Vodka Products
         Shishkova Str. 2
         Kujbyshev
         Novosibirsk
         Russia


KUVSHVINOVSKOE TRANSPORT: S. Semenov Named Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Sverdlovsk appointed S. Semenov as
Insolvency Manager for OJSC Kuvshvinovskoe Transport Enterprise.  
He can be reached at:

         S. Semenov
         Lenina Str. 34
         620041 Ekaterinburg
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A60-33680/06-S11.

The Court is located at:

         The Arbitration Court of Sverdlovsk
         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         OJSC Kuvshvinovskoe Transport Enterprise
         Pervomayskaya Str. 75
         Kushva
         Sverdlovsk
         Russia


LOTUS LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------
The Arbitration Court of Kursk commenced bankruptcy supervision
procedure on LLC Lotus.  The case is docketed under Case No.
A35-2022/07g.

The Temporary Insolvency Manager is:

         S. Burkhanskiy
         Post User Box 203
         Kr. Ploshad 8
         305000 Kursk
         Russia

The Court is located at:

         The Arbitration Court of Kursk
         K. Marksa Str. 25
         305004 Kursk
         Russia

The Debtor can be reached at:

         LLC Lotus
         Promzona
         Kurchatov
         Kursk
         Russia


MELIK OJSC: Creditors Must File Claims by Aug. 16
-------------------------------------------------
Creditors of OJSC Melik have until Aug. 16 to submit proofs of
claim to:

         I. Ponamorev
         Insolvency Manager
         Rakhmaninova Str. 1
         440066 Penza
         Russia

The Arbitration Court of Saratov commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A-57-1517B/07-12-8.

The Court is located at:

         The Arbitration Court of Saratov
         Babushkin Vvoz 1
         Saratov
         Russia

The Debtor can be reached at:

         OJSC Melik
         Malyj Melik
         Balashovskiy
         Saratov
         Russia


NEW WAY: Court Names P. Fominov as Insolvency Manager
-----------------------------------------------------
The Arbitration Court of Mordoviya appointed P. Fominov as
Insolvency Manager for MUNICIPAL Unitary Enterprise Agricultural
Company New Way.  He can be reached at:

         P. Fominov
         B. Khmelnitskogo Str. 14-1
         Saransk
         430000 Mordoviya
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A39-4982/06-163/7.

The Court is located at:

         The Arbitration Court of Mordoviya
         Kommunisticheskaya Str. 33
         Saransk
         Mordoviya
         Russia

The Debtor can be reached at:

         Municipal Unitary Enterprise Agricultural Company New
         Way
         Temnikov
         Temnikovskiy
         Mordoviya
         Russia


NORTH-WEST TELECOMS: Fitch Puts B+ Rating on Watch Positive
-----------------------------------------------------------
Fitch Ratings has put Russia-based OAO North-West Telecoms'
Long-term Issuer Default 'B+' and National Long-term 'A(rus)'
ratings on Rating Watch Positive.  

This follows its decision to divest of a 15% stake for US$410
million in Telecominvest, a company whose key asset is its 31.3%
equity stake in Megafon ('BB+'/Outlook Stable), one of the three
nationwide operators in Russia.

The proceeds will be used to finance various projects, notably
ADSL-based broadband roll-out across the company's franchise in
the North-West Federal District in Russia.  Fitch notes that if
this strategy is successfully implemented, it will allow NWT to
diversify into a fast growing and large new market and help
maintain its telephony market shares and overall profitability.
NWT is also planning to spend the cash on strengthening its
position in the corporate and SME segments.

Fitch notes this deal significantly increases NWT's financial
flexibility.  The expected proceeds of US$410 million (RUB10,516
million at the current exchange rate) are approximately equal to
1.6x of expected 2006 EBITDA under IFRS and are higher than the
company's total debt of RUB9.194 billion at end-H106.  Although
cash is unlikely to be returned to creditors, Fitch expects it
to be spent in a prudent manner on profitable projects that will
lead to EBITDA growth and will therefore be value-accretive.

NWT significantly improved its cash flow generation in 2005-
2006; however, it is expected to remain free cash flow negative
in the short-to-medium term.  Its debt and leverage are
therefore expected to rise; however, the company is likely to
remain lower-leveraged that its domestic peers.  Fitch
understands that NWT does not plan any special dividends in
relation to the announced deal.  However, the company is likely
to considerably increase its capital expenditure for 2008.  The
Rating Watch resolution will take into account updated
expectations of cash flow generation and leverage targets.  
Fitch will also wait for more clarity on the uses of cash.  The
deal is expected to close in three months.


ORION CJSC: Court Names N. Chistyukhin as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Kursk appointed N. Chistyukhin as
Insolvency Manager for CJSC Orion (TIN 4604003594).  He can be
reached at:

         N. Chistyukhin
         Post User Box 98
         308036 Belgorod-36
         Russia
         Tel/Fax: (4722) 555-823

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A35-8632/06 g.

The Court is located at:

         The Arbitration Court of Kursk
         K. Marksa Str. 25
         305004 Kursk
         Russia

The Debtor can be reached at:

         CJSC Orion
         Stroitelnaya Str. 1
         Gorshechnoe
         306800 Kursk
         Russia


REINFORCED CONCRETE: Creditors Must File Claims by Aug. 16
----------------------------------------------------------
Creditors of OJSC Factory of Reinforced Concrete Products have
until Aug. 16 to submit proofs of claim to:

         S. Rassadin
         Insolvency Manager
         Post User Box 152
         600017 Vladimir
         Russia

The Arbitration Court of Vladimir commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A11-13956/2006-K1-474B/19B.

The Court is located at:

         The Arbitration Court of Vladimir
         Oktyabrskiy Pr. 14
         600025 Vladimir
         Russia

The Debtor can be reached at:


         OJSC Factory of Reinforced Concrete Products
         Sotsialisticheskaya Str. 24
         Kovrov
         Vladimir
         Russia


RUS’ LLC: Voronezh Bankruptcy Hearing Slated for Sept. 19
---------------------------------------------------------
The Arbitration Court of Voronezh will convene at 10:00 a.m. on
Sept. 19 to hear the bankruptcy supervision procedure on LLC
Rus’.  The case is docketed under Case No. A14-3509/2007 29/16b.

The Temporary Insolvency Manager is:

         L. Zuev
         Krasnoarmeyskaya Str. 157
         Anna
         Voronezh
         Russia

The Court is located at:

         The Arbitration Court of Voronezh
         Room 606
         Srednemoskovskaya Str. 77
         Voronezh
         Russia

The Debtor can be reached at:

         LLC Rus’
         Nizhnyaya Katukhovka
         Novousmanskiy
         Voronezh
         Russia


SRED-URAL-INVEST: Court Names I. Valeev as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Sverdlovsk appointed I. Valeev as
Insolvency Manager for CJSC Sred-Ural-Invest (TIN 6658039777).
He can be reached at:

         I. Valeev
         Post User Box 417
         620014 Ekaterinburg
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A60-2764/2007-S11.

The Court is located at:

         The Arbitration Court of Sverdlovsk
         Lenina Pr. 34
         620151 Ekaterinburg Region
         Russia  

The Debtor can be reached at:

         CJSC Sred-Ural-Invest
         Zavodskaya Str. 47, 2
         Ekaterinburg
         620102 Sverdlovsk
         Russia


STERLITAMAKSKIY REINFORCED: Asset Sale Slated for July 18
---------------------------------------------------------
LLC Aliance, the bidding organizer for OJSC Sterlitamakskiy
Reinforced Concrete Factory-1, will open a public auction for
the company's properties at 10:00 a.m. on July 18 at:

         OJSC Sterlitamakskiy Reinforced Concrete Factory-1
         Ufimskiy Trakt 4
         Sterlitamak
         453100 Bashkortostan
         Russia

Interested participants have until July 18 to deposit an amount
equivalent to 20% of the starting price to:

         OJSC Sterlitamakskiy Reinforced Concrete Factory-1
         Settlement Account 40702810900061000100
         Correspondent Account 30101810100000000904
         TIN/KPP 0276005447/027602001
         BIK 048071904
         OJSC Bashenergobank
         Ufa
         Russia

Bidding documents must be submitted to:

         Ufimskiy Trakt 4
         Sterlitamak
         453100 Bashkortostan
         Russia

The Debtor can be reached at:

         OJSC Sterlitamakskiy Reinforced Concrete Factory-1
         Ufimskiy Trakt 4
         Sterlitamak
         453100 Bashkortostan
         Russia


=========
S P A I N
=========


LUSITANO MORTGAGES 6: S&P Rates EUR31.9 Mln Class E Notes at BB
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR1.1 billion mortgage-backed floating-
rate notes to be issued by Lusitano Mortgages No. 6 Ltd., a
special purpose entity.
  
On the closing date, and under the terms of the mortgage sale
agreement, Banco Espirito Santo S.A. will assign the mortgage
portfolio to the fund, Lusitano Mortgages No. 6 Fundo, without
recourse, in accordance with the Portuguese securitization law.   
In turn, the fund will issue units as shown in chart 1.  On the
closing date, the issuer, an offshore Irish SPE, will acquire
the units from the fund and issue six classes of notes.
  
The ratings on the notes to be issued by Lusitano 6 reflect the
excess spread available, the reserve fund, and the subordination
of the respective classes of notes below them, as well as
comfort provided by various other contracts like the liquidity
facility.
  
This transaction is the sixth residential mortgage
securitization for BES.  Previous Lusitano transactions did not
include a liquidity facility.

                          Ratings List

Lusitano Mortgages No. 6 Ltd.
   EUR1.1 Billion Mortgage-Backed Floating-Rate Notes

                          Prelim.        Prelim. Amount
           Class          Rating           (Mln. EUR)
           -----          ------            --------
            A              AAA               943.25
            B              AA                 65.45
            C              A                  41.80
            D              BBB                17.60
            E              BB                 31.90
            F (1)          NR                 22.00  

        (1) The class F notes are not rated and the proceeds
            from them will be used to fund the reserve.  
            Therefore, they have not been included in the total
            issue amount.

       NR — Not rated.


===========
S W E D E N
===========


GRAPHIC PACKAGING: Altivity Merger Cues Moody's to Hold Ratings
---------------------------------------------------------------
Moody's Investors Service affirmed Graphic Packaging
International Inc.'s B1 corporate family rating, Ba2 secured
bank facilities, B2 senior unsecured notes and B3 subordinated
notes following the company's announcement of a proposed merger
with Altivity Packaging LLC (B1, Stable).  The outlook remains
negative.  

At the same time, Moody's affirmed Graphic's SGL-3 speculative
grade liquidity rating (indicating adequate liquidity).  The
affirmation of Graphic Packaging's ratings is based on the
assessment that the transaction is expected to have a minimal
impact on the company's credit profile.  Both companies
currently have the same corporate family ratings (B1), and
Altivity shareholder's will receive shares in the new Graphic
Packaging as consideration.  Moody's expects the transaction to
be a leverage neutral event with the expectation of a
recapitalization in the near term.

Rating/Outlook Actions:

   * Issuer: Graphic Packaging International Inc.

     -- Corporate family rating affirmed at B1;
   
     -- Senior secured bank facilities affirmed at Ba2
        (LGD2, 27%);

     -- Senior unsecured notes affirmed at B2 (LGD4, 68%);
   
     -- Subordinated notes affirmed at B3 (LGD6, 93%);
    
     -- Outlook remains Negative.

The transaction is subject to shareholder and regulatory
approvals and is not expected to close until the fourth quarter
of this year.  Moody's considers both predecessor companies to
be somewhat weakly positioned at the prevailing B1 level, with
limited credit protection measures.  However, given the two
companies' geographic and product line overlap, the prospective
transaction provides scope for cost savings and synergies.
Synergies include enhanced procurement, future plant
rationalization, mill optimization and SG&A savings.  

Moody's expects the combined company to create future
performance and credit protection measures more appropriate for
the B1 rating level.  Up to approximately US$2.8 billion of
committed financing has been obtained to refinance all or a
portion of the existing indebtedness at both companies as well
as a new operating facility for the newly-formed company.

Headquartered in Marietta, Georgia, Graphic Packaging
International, Inc. -- http://www.graphicpkg.com/-- is a   
paperboard and integrated paperboard solutions provider to
beverage and consumer products multinationals.  Graphic
Packaging operates four paper mills, 24 converting facilities
and four machinery manufacturing facilities worldwide including
Sweden, Spain, and Denmark.  The company employs approximately
7,800 people and holds rights to more than 1,700 US and foreign
patents with more than 475 patent applications currently pending
for printing, packaging and converting processes.


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


DONIS-SERVICE: Claims Submission Deadline Set July 15
-----------------------------------------------------
Creditors of LLC Donis-Service (code EDRPOU 30554866) have until
July 15 to submit written proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 15/187-b.

The debtor can be reached at:

         LLC Donis-Service
         Berezhanskaya Str. 6-a
         04074 Kiev
         Ukraine


ETALON-PLUS LLC: Claims Submission Deadline Set July 15
-------------------------------------------------------
Creditors of LLC Etalon-Plus (code EDRPOU 30531304) have until
July 15 to submit written proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 15/186-b.

The debtor can be reached at:

         LLC Etalon-Plus
         Khvoyka Str. 18/14
         04073 Kiev
         Ukraine


FORTETSIA T. I.: Claims Submission Deadline Set July 15
-------------------------------------------------------
Creditors of LLC Science-Production Enterprise Fortetsia T. I.
(code EDRPOU 30789468) have until July 15 to submit written
proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 43/179.

The debtor can be reached at:

         LLC Science-Production Enterprise Fortetsia T. I.
         Dnieprovskaya Str. 7
         04077 Kiev
         Ukraine


IVANITSA LLC: Creditors Must File Claims by July 15
---------------------------------------------------
Creditors of Ivanitsa LLC (code EDRPOU 30864445) have until
July 15 to submit written proofs of claim to:

         Valentine Skliar
         Temporary Insolvency Manager
         Shevchenko Avenue 10
         40011 Sumy
         Ukraine

The Economic Court of Sumy commenced bankruptcy supervision
procedure on the company.  The case is docketed under Case No.
6/106-06.

The Court is located at:

         The Economic Court of Sumy
         Shevchenko Avenue 18/1
         40030 Sumy
         Ukraine

The debtor can be reached at:

         Anitsa LLC
         Ivanitsa
         Nedrigaylo District
         42120 Sumy
         Ukraine


LUKSCOM LLC: Claims Submission Deadline Set July 15
---------------------------------------------------
Creditors of LLC Lukscom (code EDRPOU 31749227) have until
July 15 to submit written proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 15/189-b.

The debtor can be reached at:

         LLC Lukscom
         Moscow Avenue 21
         04205 Kiev
         Ukraine


LUTCHENKO LLC Claims Submission Deadline Set July 15
----------------------------------------------------
Creditors of LLC Lutchenko (code EDRPOU 31865332) have until
July 15 to submit written proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 15/190-b.

The debtor can be reached at:

         LLC Lutchenko
         Obolon Avenue 10
         04205 Kiev
         Ukraine


MILLENIUM MUSIC: Claims Submission Deadline Set July 15
-------------------------------------------------------
Creditors of LLC Millenium Music (code EDRPOU 30313564) have
until July 15 to submit written proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 43/180.

The debtor can be reached at:

         LLC Millenium Music
         Kurenevskaya Str. 2-b
         04073 Kiev
         Ukraine


PLAST UKRAINE Claims Submission Deadline Set July 15
----------------------------------------------------
Creditors of LLC Plast Ukraine (code EDRPOU 25401504) have until
July 15 to submit written proofs of claim to:

         Alexander Protsenko
         Liquidator
         Mir Str. 11
         Obukhov
         08702 Kiev
         Ukraine         

The Court is located at:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 23/182-b.

The debtor can be reached at:

         LLC Plast Ukraine
         Vikenty Khvoyka Str. 15/15
         04080 Kiev
         Ukraine


STATUS-2000 LLC Claims Submission Deadline Set July 15
------------------------------------------------------
Creditors of LLC Status-2000 (code EDRPOU 30687516) have until
July 15 to submit written proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 43/174.

The debtor can be reached at:

         LLC Status-2000
         Iziumskaya Str. 7
         03039 Kiev
         Ukraine


TAS-KOMMERZBANK: Fitch Ups IDR to BB- on Swedbank Acquisition
-------------------------------------------------------------
Fitch Ratings has upgraded Ukraine-based Tas-Kommerzbank's
ratings to Long-term foreign currency Issuer Default 'BB-' from
'B-', National Long-term 'AAA(ukr)' from 'BBB- (ukr)' and
Support '3' from '5'.  The ratings are removed from Rating Watch
Positive.  A Long-term local currency IDR of 'BB' has also been
assigned.  

Both Long-term IDRs are on Positive Outlook.  The Outlook for
National Long-term rating is Stable.  The Short-term foreign
currency IDR and Individual rating are affirmed at 'B' and 'D/E'
respectively.

These rating actions follow the recent completion of the
acquisition of a 100% stake in the bank by Sweden-based Swedbank
(rated 'A+'/Outlook Stable).  In addition, Fitch has withdrawn
TAS's sovereign-derived Support Rating Floor of 'No Floor'.

The upgrade reflects Fitch's view of Swedbank's greater ability
- -as indicated by its Long-term IDR - compared with that of
TAS' previous majority owners, to provide the bank with support
in case of need.  However, TAS's Long-term foreign currency IDR
is constrained by Ukraine's 'BB-' Country Ceiling, while the
Long-term local currency IDR also takes into account the
country's risks.

The Outlooks on TAS's Long-term IDRs reflect the Positive
Outlook on the sovereign rating ('BB-').  Should Ukraine be
upgraded, both TAS's Long-term foreign and local currency IDRs
will follow suit.

The Individual rating reflects TAS's small size by international
standards, potentially vulnerable standalone liquidity position,
concentrated business and only adequate capitalization, given
its expected rapid balance sheet growth.  The rating also
captures the growing retail franchise, the reasonable asset
quality to date and limited market risks.

TAS is a relatively small Ukrainian bank, ranking number 13th by
assets, with a national market share of around 2.5% in retail
lending and 1.6% of retail deposits at end-2006.  Its former
100% owner, Sergiy Tigipko, remains a CEO after the acquisition.


UKRAINIAN ENERGY: Creditors Must File Claims by July 15
-------------------------------------------------------
Creditors of State Enterprise Ukrainian Energy Assembly
Isolation OJSC Ukrainian Energy Protection (code EDRPOU
00126273) have until July 15 to submit written proofs of claim
to:

         Anatoly Leschenko
         Temporary Insolvency Manager
         October Square 2
         Vinnica
         Ukraine

The Economic Court of Vinnica commenced bankruptcy supervision
procedure on the company on April 11.  The case is docketed
under Case No. 10/124-07.

The Court is located at:

         The Economic Court of Vinnica
         Hmelnickiy Str. 7
         21036 Vinnica
         Ukraine

The debtor can be reached at:

         State Enterprise Ukrainian Energy Assembly Isolation
         OJSC Ukrainian Energy Protection
         2nd Botanichesky Str. 1
         Vinnica
         Ukraine


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


ALLIANCE BOOTS: Stefano Pessina to Sit as Chair; CEO Leaves Post
----------------------------------------------------------------
Alliance Boots is introducing a new Board and management
structure with immediate effect.

Stefano Pessina will chair the Board of Alliance Boots.  
Dominic Murphy, Partner KKR, Ornella Barra, George Fairweather,
Steve Duncan, and Marco Pagni are all appointed directors.  Also
joining the Board will be Johannes Huth and Mattia Caprioli of
KKR.  The Board intends to appoint other independent non-
executive directors.  These appointments will be announced in
due course.

The Group Operating Committee is:

    -- Stefano Pessina, executive chairman;

    -- Dominic Murphy, KKR;

    -- Mattia Caprioli, KKR;

    -- Ornella Barra, Wholesale and Commercial Affairs;

    -- Alex Gourlay, Boots The Chemists;

    -- Steve Duncan, Community Pharmacy;

    -- George Fairweather, Group Finance;

    -- Marco Pagni, Group legal counsel & chief administrative
       officer;

    -- Stephen Lehane, Group Human Resources and Corporate
       Affairs; and

    -- Ken Murphy, Business Transformation.

Former Alliance Boots CEO Richard Baker has decided to leave the
business after discussing the option of continuing in a role as
CEO.  He has elected to pursue his career elsewhere, recognizing
Stefano Pessina's new position as executive chairman.

Scott Wheway, managing director of Boots The Chemists has
decided not to accept a position in the new business.  Mr. Scott
felt that as the business enters the next phase of development,
his own career plans did not enable him to give a firm
commitment to stay for the next few years.

Alex Gourlay, currently Healthcare director for BTC is appointed
as managing director of Boots The Chemists.  Mr. Gourlay has
been with the business for 27 years and is a qualified
pharmacist.

"We are grateful to Richard Baker for all he has done in leading
the Alliance Boots group through its merger and for all his hard
work and excellent results,” Mr. Pessina said.  “We are
confident that he will go on to new levels of achievement in a
role commensurate with his undoubted skill and ability.”

“We would also like to thank Scott Wheway for his contribution
to the development of Boots The Chemists, in what has been a
very successful trading period for the company.  They both leave
with our best wishes for the future."

Commenting on the new structure, Stefano Pessina said: "We are
pleased to announce the new management team.  We see fantastic
opportunities for a business that is a pharmacy-led, healthcare
and beauty expert, and a significant player in all its markets.  
The future potential is enormous and we're excited about working
together to deliver this growth.  It's important to our success
that the team is committed to the Company for the long-term as
we deliver our strategic vision."

                      About Alliance Boots

Headquartered in London, England, Alliance Boots LTD (LSE: AB.)
-- http://www.allianceboots.com/-- operates as a high street  
retailer, pharmacist and pharmaceuticals wholesaler.  Alliance
Boots is the dominant pharmacy chain in Britain with a 17%
market share.  Retail operations are carried out under the Boots
The Chemist and Alliance Pharmacies brands.  Alliance Boots is
also the largest pharmaceuticals wholesaler in the U.K. through
their UniChem subsidiary with a 40% market share.


ALPHA PLATING: Appoints C. H. I. Moore as Liquidator
----------------------------------------------------
C. H. I. Moore of K.J. Watkin & Co. was appointed liquidator of
Alpha Plating Technologies Ltd. on May 24 for the creditors’
voluntary winding-up proceeding.

The company can be reached at:

         Alpha Plating Technologies Ltd.
         Wednesbury Trading Estate
         Wednesbury
         WS10 7JN
         England
         Tel: 0121 506 1720
         Fax: 0121 506 1727


ASTON CARPET: Joint Liquidators Take Over Operations
----------------------------------------------------
N. J. Hawksley and M. F. P. Smith of Dains were appointed joint
liquidators of Aston Carpet & Flooring Ltd. on June 6 for the
creditors’ voluntary winding-up proceeding.

The company can be reached at:

         Aston Carpet & Flooring Ltd.
         155 Argyle Street
         Birmingham
         B7 5TE
         England
         Tel: 0121 326 9192


BAA PLC: Passenger Figures Down 0.6% to 13.8 Mln in June 2007
-------------------------------------------------------------
The U.K. airports of BAA plc (nka BAA Ltd.) handled a total of
13.8 million passengers in June 2007, a decline of 0.6% in
June 2006.

Of the major markets, European scheduled traffic was up 0.8%,
and other long haul traffic grew 4.3%.  European charter traffic
fell 7.2%.  Domestic and Irish Republic traffic fell 3.7% and
4.2% respectively.  North Atlantic services were unchanged on a
year ago.

Of the individual airports, Gatwick grew 1.3%, while Heathrow
and Stansted dipped by 1.8% and 1.9% respectively.  Southampton
fell 1.3%.  In Scotland, Aberdeen and Edinburgh saw respective
gains of 7.5% and 3.6%.  

The recent attempted terrorist attack at Glasgow contributed to
a fall of 2.4% as over 60% of flights were cancelled or diverted
when the airport was temporarily closed in the immediate
aftermath of the incident.  Less than 24 hours after the
incident the airport was reopened and operating a full flight
schedule.

The total number of air transport movements at BAA airports rose
0.2%, while cargo tonnage was down 4.0%.

                        About BAA Plc

Headquartered in London, United Kingdom, BAA plc (nka BAA Ltd.)
-- http://www.baa.com/-- owns and operates seven airports in  
the United Kingdom, including Heathrow, the world's busiest
international airport, and Budapest Airport, serving 700
destinations by around 300 airlines.

                           *   *   *

As of Feb. 6, 2007, BAA Plc carries these ratings from Moody's:

   -- Issuer Rating: Ba1
   -- GBP425-million convertible bonds due August 2009: Ba1
   -- GBP424-million convertible bonds due April 2008: Ba1
   -- GBP200-million 7.875% bonds due February 2007: Ba1


BRITISH SKY: New Customer Additions Up 20% in Third Quarter 2007
----------------------------------------------------------------
British Sky Broadcasting Group Plc provided a trading update for
the three months to June 30, 2007.

Key operating metrics for the three months to June 30, 2007:(1)

    * record new customer additions of 349,000, up 20% year-on-
      year

    * DTH churn for the quarter (annualized) of 12.1%,
      underlying churn of c.10.8%

    * net customer additions of 90,000, up 17% year-on-year to  
      8.58 million

    * Sky+ households increase by 207,000 to 2.374 million, 28%   
      of the base

    * multi-room households increase by 46,000 to 1.343 million

    * HD subscribers increase by 48,000 to 292,000

    * Sky Broadband customers increase by 259,000 to 716,000

    * Sky Talk customers reach 526,000, another record quarter  
      of growth

    * 1,150 exchanges now unbundled, 70% coverage of U.K.
      households achieved six months ahead of plan

    * ARPU up GBP21 year-on-year to GBP412

  (1) Based on current unaudited best estimates

"Our transformation continues to gather pace," BSkyB Chief
Executive James Murdoch said.  "Today we are adding new
customers at the fastest rate since analogue switch-off; we are
adding more broadband customers than any other provider; and we
are the only major residential telephony provider growing its
customer base."

"Looking forward, we will continue to grow our share of an
enlarged sector opportunity by delivering a superior customer
experience, investing in the products and services customers
want and by continuing to offer exceptional value to all our
customers," Mr. Murdoch added.

Customer Metrics
(unaudited)
'000s                    Jun-30-07    Mar-31-07   Net additions

Total customers(1)(2)(3)  8,582        8,492           90
Additional products:
Sky+(4)                   2,374        2,167          207
Multiroom(5)              1,343        1,297           46
HD                          292          244           48
Broadband                   716          457          259
Telephony                   526          355          171

Other KPI's:
ARPU                     GBP412       GBP406
Churn for the quarter    
(annualized)             12.1%           13.7%


  1. Includes DTH subscribers in Republic of Ireland.  (497,000
     as at June 30, 2007, 427,000 as at June 30, 2006.)

  2. DTH subscribers include only primary subscriptions to Sky
    (no additional Sky+ or Multiroom subscriptions are counted).
     Excludes Freesat customers who do not subscribe to an
     additional Sky service.

  3. DTH subscribers include subscribers taking Sky packages via
     DSL through Homechoice.

  4. Sky+ includes HD households

  5. Multiroom includes households subscribing to more than one
     digibox.  (No additional units are counted for the second
     or any subsequent Multiroom subscriptions within one
     household.)

All numbers within this statement are current unaudited best
estimates.

                          About BSkyB

Headquartered in Isleworth, England, British Sky Broadcasting
Group PLC -- http://www.sky.com/-- is the holding company of
the British Sky Broadcasting group of companies.  British Sky
Broadcasting Group plc and its subsidiaries operate the pay
television broadcast service in the United Kingdom and Ireland.

At Dec. 31, 2006, the Groups' balance sheet showed
GBP4.1 billion in total assets, GBP4.3 billion in total
liabilities, and GBP145 million in stockholders' deficit.

The Group's Dec. 31, 2006, balance sheet also showed strained
liquidity with GBP1.8 billion in total currents assets available
to pay GBP2.2 billion in total liabilities coming due within the
next 12 months.


BROOKWELLS TRANSPORT: Hires Liquidator from Langley Group
---------------------------------------------------------
Alan S. Bradstock of Langley Group LLP was appointed liquidator
of Brookwells Transport Services Ltd. on June 14 for the
creditors’ voluntary winding-up procedure.

The company can be reached at:

         Brookwells Transport Services Ltd.
         49 The Grove
         Gravesend
         DA12 1DP
         England
         Tel: 01322 310 310


CASCADES INC: Moody's Rates CNDUS$100 Mln Senior Facility at Ba3
--------------------------------------------------------------
Moody's Investors Service assigned a Ba3 (LGD5, 72%) rating to
Cascades' new CDNUS$100 million senior unsecured revolving
credit facility.

At the same time Moody's affirmed Cascades Inc.'s Ba2 corporate
family rating, its probability of default rating of Ba2, its
Baa3 senior secured ratings, and its Ba3 senior unsecured
ratings.  The senior unsecured ratings of Ba3 reflect a loss
given default of LGD-5 (72%) and the senior secured ratings of
Baa3 reflect a loss given default of LGD-2 (18%).  The rating
outlook is stable.

Cascades' Ba2 corporate family rating reflects the diversity
derived from its boxboard, packaging and tissue businesses, its
significant position in the Canadian containerboard segment and
its relatively stable earnings and cash flow.  The rating also
considers Cascades' debt protection measures, which are weak for
the rating and Cascades' exposure to the strong Canadian dollar,
to cyclical pricing, particularly in the containerboard and
boxboard segments, and to volatile raw material costs,
especially recycled fibers, as well as energy and chemicals.  
The ratings also reflect the company's penchant for conducting
relatively small, but debt financed acquisitions. The rating
outlook is stable.

Rating Assigned:

   -- CDNUS$100 million senior unsecured revolver, Ba3, LGD5,
72%.

Ratings Affirmed:

   -- Corporate Family Rating: Ba2;

   -- PDR: Ba2;

   -- US$675 million Sr. Unsecured Notes due 2013, Ba3, LGD5,  
      72%; and

   -- US$250 million 6.75% Sr. Unsecured Notes due 2013, Ba3,
      LGD5, 72%.

The most recent rating action for Cascades was to confirm
Cascades' Ba2 corporate family rating and assign a Baa3 rating
to senior secured debt on Dec. 20, 2006.

Headquartered in Kingsey Falls, Quebec, Cascades Inc. --
http://www.cascades.com/ -- produces, transforms, and markets  
packaging products, tissue paper and fine papers, composed
mainly of recycled fibres.  Cascades employs nearly 15,600 men
and women who work in some 140 modern and flexible production
units located in North America, in Europe and in Asia.  The
Cascades shares trade on the Toronto stock exchange under the
ticker symbol CAS.  The company has operations in Hong Kong,
Colombia, and the United Kingdom.


CRUSADER PUBS:  Brings In Deloitte & Touche as Administrators
-------------------------------------------------------------
Angus Matthew Martin and Julia Elizabeth Branson of Deloitte &
Touche LLP were appointed joint administrators of Crusader Pubs
Ltd. (Company Number 04168267) on July 3.

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

Headquartered in Ringwood, England, Crusader Pubs Ltd. operates
bars and restaurants.


DALRADIAN EUROPEAN: S&P Rates EUR15 Mln Class E Notes at BB-
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the EUR360 million (equivalent) floating-rate
notes to be issued by Dalradian European CLO IV B.V.  At the
same time, Dalradian IV will issue EUR40 million of unrated
notes.
  
At closing, Dalradian IV will issue EUR260 million of term
notes, the proceeds of which will be invested in a portfolio of
predominantly senior secured loans. At the same time, the issuer
will issue variable funding notes under which it may draw up to
EUR100 million (equivalent) in euros, British pounds sterling,
or U.S. dollars. Drawings in euros will only fund euro-
denominated collateral, drawings in sterling will only fund
sterling-denominated collateral, and drawings in dollars will
only fund U.S. dollar-denominated collateral.
  
Dalradian IV will be the fourth CLO managed by Elgin Capital
LLP.

                          Ratings List

Dalradian European CLO IV B.V.
   EUR400 Million (Equivalent) Floating-Rate Notes

                          Prelim.        Prelim. Amount
           Class          Rating        (Mln. EUR equiv.)
           -----          ------         ---------------
            Variable
            funding notes  AAA                 100
            A              AAA                 164
            B              AA                   32
            C              A                    24
            D              BBB-                 25
            E              BB-                  15
            F              NR                   40

       NR — Not rated.


DOMUS PRODUCTS: Appoints Joint Administrators from BDO Stoy
-----------------------------------------------------------
C.K. Rayment and B.J. Marsh of BDO Stoy Hayward LLP were
appointed joint administrators of Domus Products Ltd. (Company
Number 04207534) on June 27.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business  
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality.  The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.

The company can be reached at:

         Domus Products Ltd.
         90 Lodge Road
         Hockley
         Birmingham
         B18 5QY
         England
         Tel: 0121 507 1081
         Fax: 0121 507 0977


FORD MOTOR: Gerald L. Shaheen Joins Board of Directors
------------------------------------------------------
Ford Motor Company's Board of Directors has elected Gerald L.
Shaheen to become a board member, effective immediately.  Mr.
Shaheen is a group president at Caterpillar Inc. in Peoria,
Illinois.

"Gerry is a respected business leader with more than 40 years of
service in a variety of management positions with Caterpillar,"
said Ford Executive Chairman Bill Ford.  "He brings a
manufacturing and dealer perspective to Ford's Board of
Directors.  We look forward to the significant contributions he
will make in helping Ford to deliver its plan for automotive
leadership and for creating profitable growth for all going
forward."

"I’m both thrilled and honored to be in a leadership position as
a Board member with the Ford Motor Company, one of the truly
great American companies," said Mr. Shaheen.  "I look forward to
working with Ford’s Board of Directors and the leadership team
to make this great company even stronger."

Mr. Shaheen also is a Board member of the Association of
Equipment Manufacturers, a Board member and immediate past
chairman of the U.S. Chamber of Commerce; and a Board member of
the National Chamber Foundation and the Mineral Information
Institute, Inc.

He also serves on the Board of Directors for National City
Corporation, where he chairs the Nominating and Board of
Directors Governance Committee, and AGCO Corporation, where he
chairs the Compensation Committee.

In Peoria, Shaheen serves on the Board of Trustees of the
National Multiple Sclerosis Society, Greater Illinois Chapter
and Peoria NEXT.

Mr. Shaheen received his bachelor’s degree in business
administration from Bradley University in 1966 and an MBA from
Bradley in 1968.  He has served the University in several
capacities, including president of the Alumni Association and
currently as chairman of the Board of Trustees.  He also
completed the Tuck Executive Program at Dartmouth College in
1988.

                      About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles  
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

                          *    *    *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3-billion of senior convertible notes
due 2036.


FORD MOTOR: Partners With Edison to Make Hybrid Cars Accessible
---------------------------------------------------------------
Ford Motor Company and Edison International, the electric
utility with the nation’s largest and most advanced electric
vehicle fleet are combining resources to explore ways to make
plug-in hybrid vehicles more accessible to consumers, reduce
petroleum-related emissions and improve the cost-effectiveness
of the nation’s electricity grid.

Describing teamwork between their industries as essential to
making progress on energy security and climate change, the heads
of Ford and Edison, the parent company of Southern California
Edison, has launched the nation’s first collaboration to examine
the future of PHEVs as part of a complete vehicle, home and grid
energy system.

"The Ford Motor Company team is firmly focused on delivering
products people really want.  This unique partnership with
Southern California Edison will allow us to explore new
solutions for our customers’ growing need for energy
conservation," said Ford President and CEO Alan Mulally.  "By
combining strengths, ours in hybrid technology, theirs in energy
management, we can consider transportation as part of the
broader energy system and work to unleash the potential of plug-
in technology for consumers."

"The challenges of reducing greenhouse gas emissions and
increasing our nation’s energy security reach across industry
boundaries and unite us in a common cause," said Edison
International Chairman and CEO John E. Bryson.  "Partnerships
between automakers such as Ford and electric utilities such as
Edison demonstrate the innovative leadership position that both
companies hold in seeking and finding solutions to global and
consumer problems."

                      New Ford-Edison Vision

Ford and Edison intend to explore many of the potential benefits
of widespread PHEV use, which include enhanced energy security,
reduced greenhouse gas emissions, lower fuel costs and more
cost-effective use of the nation’s electricity grid.

Plug-in hybrid electric vehicle technologies are not yet
competitive due primarily to the high cost of advanced
batteries.  Ford and SCE will explore whether these batteries
have other uses that could reduce their cost to consumers.  For
example, a popular vision of plug-in hybrid automotive
technology is the potential for owners to charge their vehicles
in the evening when the cost to produce electricity is low, and
then store and use that energy during peak hours of the day,
when electricity costs are high.  Advanced batteries also could
store energy from rooftop solar panels more efficiently.  The
two companies will evaluate and model the potential economic
value of such innovative uses.

Also, batteries currently have no residual value priced into the
purchase cost.  Ford and SCE believe it might be possible to
develop a market for the untapped value present in used plug-in
hybrid electric vehicle batteries at the end of their vehicle
life.

Edison’s nationally recognized Electric Vehicle Technical Center
in Pomona, California, is testing advanced battery technologies
that could further enhance the emergence of future energy
storage applications in the utility industry.

                 Ford-Edison Project Components

Ford and Edison intend to undertake a multi-million dollar,
multi-year PHEV evaluation and demonstration program.

Ford will provide SCE with a demonstration fleet of 2008 Ford
Escape Hybrid SUVs that will be benchmarked for performance
characteristics.  The Escape hybrid platform will then be
engineered by the Ford product development team, with a battery
company partner yet to be named, to be fully PHEV capable.

Some of the vehicles will be evaluated in typical customer
settings in order to model overall home and grid values this
technology could tap.

Additional project funding may be sought from participants such
as the Electric Power Research Institute, the U.S. Department of
Energy, the California Energy Commission and the South Coast Air
Quality Management District.

Ford will initially work exclusively with SCE to develop the
testing procedures and define its initial demonstration fleet.
As Ford’s plug-in hybrid program grows, the automaker will look
for broader participation as it develops a business model not
just for Southern California, but potentially nationwide. SCE
has worked or more than 20 years with all major automakers and
will continue seeking alliances between the two industries that
advance plug-in hybrid technology.

                      About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles  
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

                          *    *    *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3-billion of senior convertible notes
due 2036.


FORD MOTOR: Investing US$100 Mln to Boost Russian Assembly Plant
----------------------------------------------------------------
Ford of Europe intends to increase the capacity of its St.
Petersburg Assembly Plant in Russia and to start building the
new Ford Mondeo for the Russian market under its latest
expansion plan.

The capacity increase would represent an incremental investment
of more than US$100 million, lifting Ford Motor Company's
overall St. Petersburg investment to over US$330 million.

The announcement coincides with the St. Petersburg Plant's five-
year anniversary, and builds on Ford's leading position in the
Russian vehicle market.  Ford was the first foreign automaker to
open its own assembly plant in Russia and the Ford brand was the
Russian market leader among import brands in 2006.  The Ford
Focus has been the best-selling car among non-Russian brands for
four consecutive years.

"The Russian car market has experienced tremendous growth over
the last several years," said Ford of Europe President and CEO
John Fleming.  "We see consumer demand continuing to rise for
stylish cars that offer great driving dynamics -- exactly the
type of vehicles Ford offers."

Under the new expansion plan, annual production capacity of the
plant is targeted to rise to 125,000 units in 2009 from the
current level of 72,000 units.  The additional capacity would
include 25,000 Mondeo units and 28,000 Focus models.  Ford
expects to begin production of the new Mondeo for Russia in late
2008, pending government approvals.

The St. Petersburg plant, which employs 2,200 workers, currently
makes the Focus in all four body styles: 3-door, 4-door, 5-door
and wagon versions.  The plant started production in July 2002
with an initial annual capacity of 25,000 units.

Ford continues to strengthen its sales and market position in
Russia.  Through the first half of this year, Ford sales in
Russia were 81,782 units, 122 percent higher than the same
period in 2006, when 36,826 vehicles were sold.  In addition to
the Focus, Ford sells the following vehicles in Russia: Fusion,
Fiesta, C-MAX and Mondeo cars; S-MAX and Galaxy MPVs; the Ranger
compact pickup truck; Maverick and Explorer SUVs; and the
Transit and Transit Connect commercial vehicles.

                      About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles  
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

                          *    *    *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3-billion of senior convertible notes
due 2036.


FOX PARRACK: Brings In Liquidator from B & C Associates
-------------------------------------------------------
Filippa Connor of B & C Associates was appointed liquidator of
Fox Parrack Hirsch Ltd. on June 12 for the creditors’ voluntary
winding-up proceeding.

The company can be reached at:

         Fox Parrack Hirsch Ltd.
         Threeways House 40-44
         Clipstone Street
         City of Westminster
         London
         W1W 5DW
         England
         Fax: 020 7436 4224


HEDGEMOOR CONSTRUCTION: Names Andrew David Rosler Liquidator
------------------------------------------------------------
Andrew David Rosler of Ideal Corporate Solutions Ltd. was
appointed liquidator of Hedgemoor Construction Ltd. on June 13
for the creditors’ voluntary winding-up proceeding.

The company can be reached at:

         Hedgemoor Construction Ltd.
         18 Dewar Court
         Astmoor Ind Est
         Runcorn
         WA7 1PT
         England
         Tel: 01928 500 999


HIGH PERFORMANCE: Taps Smith & Williamson as Administrators
-----------------------------------------------------------
Roger Tulloch, Anthony Murphy, and Robert Horton of Smith &
Williamson Ltd. were appointed joint administrators of High
Performance Engineering Centre Ltd. (Company Number 05578448) on
July 3.

Smith & Williamson -- http://www.smith.williamson.co.uk/--  
provides investment management, financial advisory and
accountancy services to private clients, professional practices,
mid to large corporates and non-profit organizations.  

Headquartered in Coventry, England, High Performance Engineering
Centre Ltd. manufactures vehicle and engines.


HOSKINS MANAGEMENT: Joint Liquidators Take Over Operations
----------------------------------------------------------
Carl Derek Faulds and James Richard Tickell were appointed joint
liquidators of Hoskins Management Development Ltd. on for the
creditors’ voluntary winding-up procedure proceeding.

The company can be reached at:

         Hoskins Management Development Ltd.
         5 West Street
         Fareham
         PO16 0BG
         England
         Tel: 01329 221 018
         Fax: 01329 285 147


KFM FABRICATION: Calls In Liquidators from BDO Stoy Hayward
-----------------------------------------------------------
Simon Edward Jex Girling and Graham David Randall of BDO Stoy
Hayward LLP were appointed joint liquidators of KFM Fabrication
Ltd. on June 6 for the creditors’ voluntary winding-up
proceeding.

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business  
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality.  The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.

The company can be reached at:

         KFM Fabrication Ltd.
         Folly Road
         Roundway
         Devizes
         SN10 2HT
         England
         Tel: 01380 724 910
         Fax: 0870 705 1017


MOLD HYGIENE: Taps Colin Prescott to Liquidate Assets
-----------------------------------------------------
Colin Prescott of Moore Stephens LLP was appointed liquidator of
The Mold Hygiene Chemicals Co. Ltd. on June 12 for the
creditors’ voluntary winding-up proceeding.

Moore Stephens -- http://www.moorestephens.co.uk-- offers  
audit, business support, corporate finance, corporate recovery,
dispute analysis, financial services, insurance broking, IT
consultancy, pensions audit, risk advisory services, tax and
trusts & estates services.  Its U.K. network comprises over
1,400 partners and staff.

The company can be reached at:

         The Mold Hygiene Chemicals Co. Ltd.
         Unit 3
         Antelope Industrial Estate
         Rhydymwyn
         Mold
         CH7 5JH
         Wales
         Tel: 01352 741 000
         Fax: 01352 740 074


NW DEVELOPMENTS: Hires Liquidator from Bridgestones
---------------------------------------------------
Jonahan Lord of Bridgestones was appointed liquidator of
NW Developments & Construction Ltd. on June 14 for the
creditors’ voluntary winding-up procedure.

The company can be reached at:

         NW Developments & Construction Ltd.
         Westbrae
         Faraday Road
         Kirkby Stephen
         CA17 4QL
         England
         Tel: 017683 725 06


PMS MARKETING: Brings In Liquidators from David Horner & Co.
------------------------------------------------------------
David Anthony Horner and David Adam Broadbent of David Horner &
Co. were appointed joint liquidators of PMS Marketing Logistics
Ltd. on June 13 for the creditors’ voluntary winding-up
procedure.

David Horner & Co. -- http://www.davidhornerandco.co.uk/-- is a  
firm of insolvency practitioners based at three different
locations, which together cover the whole of Yorkshire and the
North East.  It also has offices in York, Doncaster and
Middlesbrough.  The firm offers practical advice and solutions
to all types of businesses, individuals and creditors, often
enabling formal insolvency to be avoided.

The company can be reached at:

         PMS Marketing Logistics Ltd.
         4 Sterling Park
         York
         YO3 04WU
         England
         Tel: 01904 690 004
         Fax: 01904 691 973


TIPPING SERVICES: Names Edward Christopher Wetton Liquidator
------------------------------------------------------------
Edward Christopher Wetton of Gibson Booth was appointed
liquidator of Tipping Services (Construction) Ltd. on June 13
for the creditors’ voluntary winding-up proceeding.

The company can be reached at:

         Tipping Services (Construction) Ltd.
         Rose Bungalow
         Mosham Road
         Blaxton
         Doncaster
         DN9 3BA
         England
         Tel: 01302 770 197
         Fax: 01302 772 542


WALLCROFT GARDENS: Names Administrators from Baker Tilly
--------------------------------------------------------
Lindsey Cooper and Adrian Allen of Baker Tilly Restructuring and
Recovery LLP were appointed joint administrators of Wallcroft
Gardens Ltd. (Company Number 04628056) on July 3.

Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing  
and other services for mid-cap and smaller publicly listed
companies and private companies, particularly those expanding
into new foreign markets.  Services include business and
financial planning, tax-related services, corporate finance,
litigation support, turnaround services, and technology
consulting.

Headquartered in Whitchurch, England, Wallcroft Gardens Ltd. is
engaged in property development.


METRONET RAIL: WS Atkins Refuses to Commit Further Equity
---------------------------------------------------------
Keith Clarke, chief executive of WS Atkins plc, is hesitant to
commit the company to providing further equity for The Metronet
Rail Group after results for the year ended March 31, 2007, were
adversely impacted by an exceptional loss of GBP121.3 million on
the Public Private Partnership consortium, Sarah Richardson
writes for weekly construction magazine Building.

The loss includes an impairment write-down which reduces the
carrying value of the Atkin’s investment in Metronet to GBPnil.

According to city analysts, the decision to write down the
entire value of the investment was a worrying indication for the
future of Metronet.

On June 21, 2007, Metronet Rail BCV Limited, responsible for the
renewal of the London Tubes' Bakerloo, Central, Victoria, and
Waterloo & City lines, has given notice to London Underground of
its intention to invite the PPP Arbiter to conduct an
Extraordinary Review, in order to recover its significant
additional costs on the project.

Ongoing negotiations with Metronet banks are required to ensure
adequate funding until conclusion of Extraordinary Review.

Atkins earlier revealed it is committed to working with
Metronet, its banks and other stakeholders to ensure that it can
continue through to the outcome of the Extraordinary Review.  

However, Mr. Clarke is concerned more equity might be needed,
Building relates.

The report says the reaction of Atkins is increasing Metronet’s
risk of insolvency.

As previously reported in the TCR-Europe, Metronet could face
insolvency if PPP Arbiter Chris Bolt orders the company to meet
the majority of the overspend and investors refuse to pay.

The financial overrun is higher than the projected GBP750
million in November 2006.  It is said to have escalated to
around GBP1 billion.

Last month, a bank syndicate led by the European Investment
Bank, which has put up GBP600 million of a GBP1.6 billion loan
facility, refused to grant a second waiver to Metronet which
would have allowed it to access more funding to renew the Tube.

The banks are demanding more details of cost-cutting plans, and
fresh equity from Metronet’s five shareholders.

                        About Metronet

The Metronet Rail Group -- http://www.metronetrail.com/-- is
responsible for upgrading, replacing and maintaining two-thirds
of London Underground's infrastructure - its trains, stations,
signalling, track, tunnels and bridges - under a 30-year Public
Private Partnership (PPP) contract which came into operation in
April 2003.

The Metronet Rail Group's shareholders are Atkins, Balfour
Beatty, Bombardier Transportation, EDF Energy and Thames Water
who bring together an unrivalled expertise in project management
and planning, railway engineering and asset management supported
by a wide range of technical disciplines.  They formed the
Metronet Rail Group in June 1999 to bid for two of the three
infrastructure companies -- these are today known as: Metronet
Rail BCV Limited, Metronet Rail SSL Limited.

Metronet Rail BCV Limited is responsible for the Bakerloo,
Central, Victoria and Waterloo & City lines which are the 'deep
Tube' lines running under the streets of London.

Metronet Rail SSL Limited is responsible for the Metropolitan,
District, Circle, Hammersmith & City and East London lines which
are collectively known as the sub-surface lines.

                          *     *     *

As reported in the TCR-Europe on May 10, 2007, Moody's Investors
Service downgraded to Ba1 from Baa3 the senior secured
unguaranteed debt ratings of both Metronet Rail BCV Finance plc
and of Metronet Rail SSL Finance plc.  Moody's said the ratings
have been placed on review for further downgrade.


WINDERMERE XI: S&P Puts BB Ratings on GBP7.49 Mln Class E Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the GBP707.76 million commercial mortgage-
backed floating-rate notes to be issued by Windermere XI CMBS
PLC, a special purpose entity incorporated in England and Wales.
  
On closing, the issuer will purchase a pool of eight loans sold
and originated by Lehman Commercial Paper Inc. (London branch)
between April 2006 and April 2007.  The loans are secured by a
portfolio of 47 commercial properties in England.
  
Five loans (Devonshire House, 90 Long Acre, CAA House,
Westville, and Shrewsbury) include subordinated B-notes that
will remain outside the securitization and will be retained by
third-party investors.

                          Ratings List

Windermere XI CMBS PLC
   GBP707.76 Million Commercial Mortgage-Backed Floating-Rate
   Notes

                          Prelim.        Prelim. Amount
           Class          Rating          (Mil. GBP)
           -----          ------           --------
            A              AAA              570.00
            B              AA                55.00
            C              A                 43.00
            D              BBB               32.27
            E (1)          BB                 7.49
  
        (1) Subject to an available funds cap.  Class E
            noteholders may receive a variable interest coupon
            under certain loan prepayment scenarios.  


WINDERMERE XI: Fitch Rates GBP7.4 Million Class E Notes at BB
-------------------------------------------------------------
Fitch Ratings has assigned expected ratings to Windermere XI
CMBS Plc's floating-rate notes due April 2017:

   -- GBP570 million Class A: 'AAA'; Outlook Stable
   -- GBP55 million Class B: 'AA'; Outlook Stable
   -- GBP43 million Class C: 'A'; Outlook Stable
   -- GBP32.27 million Class D: 'BBB'; Outlook Stable
   -- GBP7.497 million Class E: 'BB'; Outlook Stable

This transaction is a GBP708 million securitization of eight
commercial real estate loans originated by Lehman Brothers Inc
(rated 'AA-'/Outlook Stable/'F1+').  The final ratings are
contingent upon the receipt of final documents conforming to
information already received.

The expected ratings reflect the credit enhancement provided to
each class by the subordination of classes junior to it, the
positive and negative features of the underlying real estate
collateral and the integrity of the legal and financial
structures.  They also address the likelihood that investors
will receive timely payment of interest and ultimate repayment
of principal by the final legal maturity date (April 2017).

Interest and principal on the notes will be paid quarterly in
arrears on each payment date, commencing in October 2007.  The
very modest amount of scheduled amortization on the loans ahead
of maturity will be distributed on a fully sequential basis.  
Principal prepayments and balloon redemptions will be
distributed according to a modified pro rata structure.  This is
subject to certain triggers, whose breach will cause all
principal flows to the notes to be allocated on a sequential
basis.  The structure will benefit from a liquidity facility,
which will be initially sized at GBP42.47 million, or 6% of the
notes' balance.  This will cover any shortfalls in interest on
the notes.

The three largest loans (Devonshire House, Government Income
Portfolio, 90 Long Acre) account for 59.2% of the portfolio by
aggregate balance as at the cut-off date.  Devonshire House
contributes 27.1% of the portfolio and is secured by a grade A
office building in London's West End.

Property type and geographical concentrations are present in the
pool, with office space accounting for 78.8% of total income and
central London for 59.6%.  The top 10 tenants represent 49.6% of
total passing rent. The U.K. government (rated 'AAA'/Outlook
Stable/'F1+') accounts for 33.9%, and a further 20.1% is paid by
investment-grade tenants.  The portfolio is 19.2% reversionary:
total passing rent of GBP50.5 million compares with an estimated
rental value of GBP60.2 million.  The pool has virtually no
scheduled amortization, with the weighted-average cut-off loan-
to-value of 68.8% barely above the 68.4% WA LTV at maturity.

Five of the eight loans (Devonshire House, 90 Long Acre,
Shrewsbury, CAA House and Westville) have subordinated B-note
tranches, which have been carved out of the respective whole
loans and are not included within this transaction.


* BOOK REVIEW: A Not-So-Tender Offer: An Insider's Look at  
               Mergers and Their Consequences
----------------------------------------------------------
Author:     Isadore Barmash
Publisher:  Beard Books
Hardcover:  264 pages
List Price: US$34.95

Order your personal copy at

http://amazon.com/exec/obidos/ASIN/1587981718/internetbankrupt  

This book is packed with anecdotes, boardroom intrigue, humor,
and plenty of food for thought.  This book is both a cogent
analysis of mergers and acquisitions and a fascinating page-
turner.  

Written by Isadore Barmash, an acclaimed writer on the Wall
Street scene, this insider's guide gives you an up-close look at
the often dramatic, sometimes humorous scenes that take place
during mind-boggling megadeals, acquisitions, and "friendly
mergers."

With expert insight, wry humor, and wit, it chronicles many
important megamergers and assesses the impact they have had on
corporate performance, the economy, and the millions of
employees and shareholders affected by the upheavals.
  
                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices
are obtained by TCR editors from a variety of outside sources
during the prior week we think are reliable.  Those sources may
not, however, be complete or accurate.  The Monday Bond Pricing
table is compiled on the Friday prior to publication.  Prices
reported are not intended to reflect actual trades.  Prices for
actual trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies
with insolvent balance sheets whose shares trade higher than
US$3 per share in public markets.  At first glance, this list
may look like the definitive compilation of stocks that are
ideal to sell short.  Don't be fooled.  Assets, for example,
reported at historical cost net of depreciation may understate
the true value of a firm's assets.  A company may establish
reserves on its balance sheet for liabilities that may never
materialize.  The prices at which equity securities trade in
public market are determined by more than a balance sheet
solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


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 P. Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A.
Godinez, and Pius Xerxes Tovilla, Editors.

Copyright 2007.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *