TCREUR_Public/070720.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 20, 2007, Vol. 8, No. 143

                            Headlines


A U S T R I A

BRADER KEG: Claims Registration Period Ends Aug. 21
LOGISTIK & TRANSPORT: Claims Registration Period Ends Aug. 24
MERCATO LLC: Claims Registration Period Ends Aug. 21
OGNJAN DINEV: Claims Registration Period Ends Aug. 23
ROHRINGER & CO: Claims Registration Period Ends Aug. 20

WILKOWSKA KEG: Claims Registration Period Ends Aug. 23


B E L G I U M

GENERAL MOTORS: Fitch Affirms Issuer Default Rating at B
LEVI STRAUSS: May 27 Balance Sheet Upside-Down by US$865.2 Mil.
SOLUTIA INC: Files Second Amended Plan and Disclosure Statement
SOLUTIA INC: Wants Court Nod on Hal Wallach as HR Senior VP
SOLUTIA INC: Recorded Claims Transfers as of July 2


D E N M A R K

POLYONE CORP: Fitch Lifts Issuer Default Rating to BB-


C Z E C H   R E P U B L I C

LEAR CORP: Shareholders Reject AREP Merger Agreement
LEAR CORP: S&P Puts B Rating on Watch Positive After Merger Vote


F R A N C E

ALCATEL-LUCENT: To Deploy First WiMAX Network in France
FRESH DEL MONTE: S&P Puts Preliminary B Rating on Sr. Unsec Debt
KAUFMAN & BROAD: Moody's Withdraws Ba1 Corporate Family Rating
NYLSTAR FRANCE: Court Places Firm in Voluntary Administration
REALOGY CORP: Closes Change of Control Offer for US$1.2BB Notes

REALOGY CORP: S&P Lowers Rating & Removes Negative CreditWatch
TCL MULTIMEDIA: Shows Over-Subscription of Proposed Rights Issue


G E O R G I A

* Fitch Assigns Low-B Ratings to Georgia on Reduced Debt Burden


G E R M A N Y

DAIMLERCHRYSLER: BMW Sells 50% Tritec Motors Stake to Chrysler
DURA AUTOMOTIVE: Committee Wants EBITDA Outlook Disclosed
DURA AUTOMOTIVE: Toyota Wants Decision on Leases by July 24
FRANSHIP WARENHANDELSGESELLSCHAFT: Claims Filing Ends Aug. 29
KURPARADIES BAD ORB: Claims Registration Period Ends Sept. 10

VULCAN LTD: Fitch Rates EUR3 Million Class G Notes at BB


I R E L A N D

EUROCONNECT: Moody's Rates EUR68.3 Mln Class D Notes at (P)Ba2
EUROCONNECT 2007-1: S&P Puts BB Rating to Class D Notes


I T A L Y

ALITALIA SPA: Italy Halts Stake Sale After AP Holding Pullout
ALITALIA SPA: Italy May Liquidate as Last Resort, Report Says
BANCA ITALEASE: Fitch Cuts EUR150 Mln Securities Rating to BB
PIAGGIO & C: Moody's Lifts Rating to Ba2 on Improved Performance
SHAW GROUP: Expects to File Restated Financials on July 31

SHAW GROUP: Brings In Jeffrey Merrifield as VP-Power Group
SCHEFENACKER: Completes EUR500M Restructuring; Exits Chapter 15
TISCALI SPA: Mulls Acquisition for U.K. Expansion


K A Z A K H S T A N

AKSUMUNAY LLP: Proof of Claim Deadline Slated for Aug. 24
BAYAL LLP: Creditors Must File Claims Aug. 24
CONSULTING CONSTRUCTION+: Claims Filing Period Ends Aug. 22
EDIL KURYLYS: Creditors' Claims Due on Aug. 22
INTEGRATION LLP: Claims Registration Ends Aug. 24

KAZAKHTELECOM JSC: Nikolai Dmitrievich Joins Board of Directors
KAZAKHTELECOM JSC: S&P Revises Outlook to Stable on Pole Post
MUNAY TAU: Proof of Claim Deadline Slated for Aug. 24
STANDART LLP: Creditors Must File Claims Aug. 22
TRADE MARK CONSULTING: Claims Filing Period Ends Aug. 24
VOSTOK-95 LLP: Creditors' Claims Due on Aug. 24


K Y R G Y Z S T A N

WESPER LLC: Creditors Must File Claims by August 22

L U X E M B O U R G

CRC BREEZE FINANCE: S&P Rates EUR50 Million Class B Notes at BB+
EUROCONNECT LTD: Fitch Rates EUR68.3 Mln Class D Notes at BB


N E T H E R L A N D S

BAUSCH & LOMB: Files Prelim Proxy Statement for Pending Merger
BIOMET INC: LVB Acquisition Completes Tender Offer for Shares


P O L A N D

INTERNATIONAL PAPER: To Buy CMCP Shares for US$40 Million
INTRALL POLSKA: Submits New Bankruptcy Application


R U S S I A

ADAMANT LLC: Creditors Must File Claims by Aug. 23
ENGINEER-INNOVATION CENTRE: Court Starts Bankruptcy Supervision
EURO CJSC: Court Names V. Mamonov as Insolvency Manager
GEON-OIL-GAS-SERVICE: Names R. Galimov as Insolvency Manager
GROUP TFK: Court Names S. Romanova as Insolvency Manager

KANSKAYA TOBACCO: Court Starts Bankruptcy Supervision Procedure
KARAMALY-GUBEEVSKOE RTP: Creditors Must File Claims by Aug. 23
KUZNETSOVSKIY PORCELAIN: Bankruptcy Hearing Slated for Oct. 18
NAST LLC: Irkutsk Court Names V. Safonov as Insolvency Manager
OB’ LLC: Court Names A. Senotrustov as Insolvency Manager

OIL-GAS-STROY: Asset Bidding Deadline Slated for July 23
SAKHO AUTO-TRANS: Bankruptcy Hearing Slated for Sept. 27
SAVVINSKOE CJSC: Court Names A. Yastrebov as Insolvency Manager
TMK OAO: Moody's Lifts Rating to Ba3 on Strong Performance
TULA-AGRO-PROM-PROJECT: Tula Court Hearing Slated for Oct. 2

VOLGOGRADSKIY GUBERSNSKIY: Creditors Must File Claims by Aug. 23

* Fitch Affirms Kirov Region's B Ratings on Weak Budget


S P A I N

MEGA BRANDS: S&P Affirms Corporate Credit Rating at B+


S W E D E N

STRATOS INTERNATIONAL: Completes Emerson Merger for US$118 Mil.


S W I T Z E R L A N D

ACKERMANN INNENAUSBAU: Creditors' Liquidation Claims Due Aug. 14
AGI CONSULTING: Creditors' Liquidation Claims Due July 27
BRAIN69 LLC: Creditors' Liquidation Claims Due August 2
CHACOPEMA JSC: Creditors' Liquidation Claims Due July 27
DE MAIO: Creditors' Liquidation Claims Due August 14

DORFLADEN LAUERZ: Schwyz Court Closes Bankruptcy Proceedings
GUBLER & RUFATTI: Claims Registration Period Ends July 27
IMFELD + BISIG: Creditors' Liquidation Claims Due August 10
JALDAR LTD: Creditors' Liquidation Claims Due August 13
KEYWAY LLC: Creditors' Liquidation Claims Due July 27


U K R A I N E

ALTECH LTD: Claims Submission Deadline Set July 21
BERDYCHIV-KHOLOD CJSC: Court Opens Bankruptcy Proceedings
CONTRACT SERVICE: Claims Submission Deadline Set July 21
KOTLIAREVSKOE BREADRECEIVING: Claims Filing Deadline Set July 21
KRASNOSLOBODSKOE CJSC: Claims Submission Deadline Set July 21

NOVY BUG: Claims Submission Deadline Set July 21
TECHNOLOGY LLC: Creditors Must File Claims by July 21
VYGRAEVSKOE LLC: Claims Submission Deadline Set July 21


U N I T E D   K I N G D O M

AUXILIA GROUP: Brings In Joint Administrators from KPMG
AUXILIA LTD: Appoints KPMG LLP as Joint Administrators
COLT TELECOM: Earns EUR17 Mln in Six Months Ended June 30, 2007
CONSUMER UNSECURED: Moody's Rates GBP20 Mln Class E Notes at Ba3
CUMMINS INC: Board Increases Cash Dividend by 39%

FORD MOTOR: Private Equity Firms May Bid for Jaguar & Land Rover
FREESCALE SEMI: Union In Talks Over Future of Scottish Plant
DAIMLERCHRYSLER: Cerberus May Pay More Interest in Chrysler Deal
METRONET RAIL: Enters Administration to Ensure Operations
METRONET RAIL: Moody's Cuts Rating to B1 on High Debt Risk

REFCO INC: Bawag’s US$140 Mln Case Settlement Gets Final Okay
REFCO INC: Examiner Says Auditors & Counsel May Face Claims
TISCALI SPA: Mulls Acquisition for U.K. Expansion

* BOOK REVIEW: Trump: The Saga of America's Most Powerful Real
               Estate Baron


                            *********


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


BRADER KEG: Claims Registration Period Ends Aug. 21
---------------------------------------------------
Creditors owed money by KEG Brader (FN 234223x) have until
Aug. 21 to file written proofs of claim to court-appointed
estate administrator Peter Michael Wolf at:

         Mag. Peter Michael Wolf
         Bahnhofsplatz 6
         2340 Moedling
         Austria
         Tel: 02236/230 50
         Fax: 02236/23050-50
         E-mail: wolf@peterwolf.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 4 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Moedling, Austria, the Debtor declared
bankruptcy on June 15 (Bankr. Case No. 11 S 72/07k).


LOGISTIK & TRANSPORT: Claims Registration Period Ends Aug. 24
-------------------------------------------------------------
Creditors owed money by LLC Logistik & Transport (FN 97538p)
have until Aug. 24 to file written proofs of claim to court-
appointed estate administrator Gudrun Truschner at:

         Dr. Gudrun Truschner
         Franz Keim Strasse 17
         4600 Wels
         Austria
         Tel: 07242/76316
         Fax: 07242/76316-16
         E-mail: truschner@truschner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Sept. 6 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Wels
         Hall 101
         First Floor
         Maria Theresia Str. 12
         Wels
         Austria

Headquartered in Marchtrenk, Austria, the Debtor declared
bankruptcy on June 21 (Bankr. Case No. 20 S 77/07k).


MERCATO LLC: Claims Registration Period Ends Aug. 21
----------------------------------------------------
Creditors owed money by LLC Mercato (FN 262878k) have until
Aug. 21 to file written proofs of claim to court-appointed
estate administrator Bernhard Schatz at:

         Dr. Bernhard Schatz
         Enzersdorfer Strasse 4
         2340 Moedling
         Austria
         Tel: 02236/89 33 77
         Fax: 02236/89 33 77-95
         E-mail: bernhard.schatz@bpv-huegel.com

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Sept. 4 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Oberwaltersdorf, Austria, the Debtor declared
bankruptcy on June 15 (Bankr. Case No. 11 S 71/07p).


OGNJAN DINEV: Claims Registration Period Ends Aug. 23
-----------------------------------------------------
Creditors owed money by LLC Ognjan Dinev (FN 78569v) have until
Aug. 23 to file written proofs of claim to court-appointed
estate administrator Guenther Hoedl at:

         Dr. Guenther Hoedl
         c/o Dr. Klemens Dallinger
         Schulerstrasse 18
         1010 Vienna
         Austria
         Tel: 513 16 55
         Fax: 513 16 55 33
         E-mail: Hoedl@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:15 a.m. on Sept. 6 for the
examination of claims.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 21 (Bankr. Case No. 5 S 78/07s).  Klemens Dallinger
represents Dr. Hoedl in the bankruptcy proceedings.


ROHRINGER & CO: Claims Registration Period Ends Aug. 20
-------------------------------------------------------
Creditors owed money by LLC Rohringer & Co. KG (FN 26834m ) have
until Aug. 20 to file written proofs of claim to court-appointed
estate administrator Heinz Haupl at:

         Dr. Heinz Haupl
         Stockwinkl 18
         4865 Nussdorf am Attersee
         Austria
         Tel: 07666/8300-0
         Fax: 07666/8300-5
         E-mail: office@anwaltskanzlei-nussdorf.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Aug. 30 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Wels
         Hall 101
         First Floor
         Maria Theresia Str. 12
         Wels
         Austria

Headquartered in Seewalchen am Attersee, Austria, the Debtor
declared bankruptcy on June 18 (Bankr. Case No. 20 S 75/07s).


WILKOWSKA KEG: Claims Registration Period Ends Aug. 23
------------------------------------------------------
Creditors owed money by KEG Wilkowska (FN 213383z) have until
Aug. 23 to file written proofs of claim to court-appointed
estate administrator Andrea Prochaska at:

         Mag. Andrea Prochaska
         Wassergasse 33/12
         1030 Vienna
         Austria
         Tel: 718 77 50
         Fax: 718 77 50 15
         E-mail: anwalt@andrea-prochaska.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on Sept. 6 for the
examination of claims.

The meeting of creditors will be held at:

         The Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 20 (Bankr. Case No. 5 S 77/07v).


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


GENERAL MOTORS: Fitch Affirms Issuer Default Rating at B
--------------------------------------------------------
Fitch has affirmed General Motors' Issuer Default Rating at 'B'
and removed the company from Rating Watch Negative following the
ratification of the new UAW contract with Delphi.

The ratification reduces the risk of any production disruption
from a Delphi work stoppage that could have resulted in rapid
and widespread production shutdowns at GM.  The amount and range
of financial support provided by GM, including absorption of
health care and pension liabilities, worker flowbacks, buyout
packages, ongoing wage subsidies and uncompetitive component
prices from Delphi will remain a financial burden for GM over
the intermediate term and slow its ability to reduce supplier
costs.

GM's extensive efforts and financial support to resolve the
situation will now allow GM and the UAW to focus on the issues
of the upcoming contract talks.

The Negative Outlook reflects the continuing pressure on GM's
operating profile from competitive and market factors, and the
difficulty that GM will have in reversing negative cash flows in
North America over the near term. Despite a string of successful
product introductions in the pickup and large SUV segments, GM's
price point has continued to trend up while the market has
continued to trend toward smaller vehicles.  Progress in GM's
smaller vehicles has been more limited, and GM maintains
production of a number of products that are experiencing steady
volume declines.  A number of these products are assembled in
plants that lack scale, adequate contribution margins, and
competitive cost structures.  Revenues at GM are expected to
come under increased pressure in the second half of 2007 and
into 2008, as higher gas prices and a weak housing market
continue to affect the large vehicle segments.  Healthy volumes
of current product offerings such as the Saturn Aura, Buick
Enclave, GMC Acadia, as well as the pending Chevrolet Malibu and
Cadillac CTS, will be challenged to offset volume declines in
more dated products.  Over the intermediate term, Fitch expects
additional restructuring will be required to further rationalize
plant capacity, overlapping products and brands, and structural
costs, given the revenue declines expected through 2008.

Despite savings realized from the hourly-worker buyout program
and the health care agreement with the UAW, GM's North American
operations have been challenged to regain profitability.  Given
the company's revenue and cost pressures through 2008,
efficiencies and other cost improvements of as much as $5
billion may be needed to stem cash drains at the company's North
American operations.  As a result, any agreement on an
independent health care trust that would take over GM's UAW
retiree health care liabilities will be insufficient to return
GM's North American operations to positive cash flow.  The loss
of significant EBITDA from the sale of Allison Transmission, the
costs associated with the Delphi agreement, the potential
reduction in investment income following any health care deal
and further restructuring costs will continue to offset
improvements from recent and ongoing restructuring moves.  GM
has made progress in reducing its fixed cost structure, but a
large portion of the savings to date has come from non-cash
expenses, with the cash benefits accruing only over an extended
timeframe.  Over the longer term, re-alignment of the company's
product portfolio, efficiencies from material savings, and lower
supply costs will be necessary to achieve sustainable long-term
operating margins.  From a product perspective, the Detroit 3
appear well-positioned to maintain their competitive position in
the pickup market, and although it is a shrinking segment, GM is
expected to continue its strong leadership position in the
highly profitable large SUV segment.

The upcoming talks will be pivotal in determining GM's ability
to establish a competitive cost structure.  In addition to
retiree health care liabilities and health care for existing
workers, labor outsourcing is expected to be a key focus.
Efforts to reduce job classifications and loosen work rules
could lead to greater opportunities to outsource non-production
jobs to outside labor.  With the extensive buyouts completed to
date and continuing attrition from an aged workforce, the
opportunity to outsource these functions through changes to work
rules and job classifications could lead to an effective multi-
tiered wage structure outside of UAW coverage, similar to what
is occurring at Delphi.  Success in this area could further
ratchet down labor and benefit costs over the long term.  Fitch
views the potential for UAW wage reductions for existing workers
as unlikely, given the relative parity of wages versus non-UAW
transplants.

Liquidity at GM remains very strong, and will be further
supplemented by the pending sale of its highly profitable
Allison Transmission unit.  The substantial asset sales that
have been completed over the past several years have helped GM
to finance its restructuring program, but have also reduced
earnings capacity.  A strong cash cushion positions GM to seek a
resolution to its retiree health care liabilities, although the
cost of any settlement is highly uncertain.  A settlement could
be viewed as positive, by transferring the risks of health care
cost inflation to the UAW.  In the event that an agreement is
reached, however, GM's liquidity would likely be substantially
diminished during a period of restructuring and operating
uncertainty and Fitch will focus on the sufficiency of GM's
liquidity and the funding of such an agreement, if it
materializes.  L/T VEBA of $14.6 billion could reach as much as
50% of funding requirements.  Liquidity will also benefit from
the runoff of the lease portfolio retained following the sale of
a 51% interest in GMAC, and GM's credit position continues to
benefit from its holdings in GMAC.

In addition, Fitch affirms and removes these ratings from Watch
Negative:

  * GM

    -- Senior unsecured debt at 'B-/RR5'
    -- Senior Secured at 'BB/RR1'.

  * General Motors of Canada

    -- Senior unsecured at 'B-/RR5'.

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

General Motors has Asia-Pacific operations in India, China,
Indonesia, Japan, the Philippines, among others. It has
locations in European countries including Belgium, Austria, and
France.  In Latin-America, the company maintains locations in
Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay
and Uruguay.


LEVI STRAUSS: May 27 Balance Sheet Upside-Down by US$865.2 Mil.
---------------------------------------------------------------
Levi Strauss & Co.'s balance sheet as of May 27, 2007, showed
total assets of US$2.7 billion, total liabilities of US$3.6
billion, and total stockholders' deficit of US$865.2 million.

Second-quarter results reflect continued growth momentum, with
net revenue improvements in each of the company's three regions.
Net income also improved for the period.

Net revenues for the second quarter ended May 27, 2007, were
US$1 billion, compared to US$960.8 million for the same quarter
in 2006, a 6% increase.  The increase primarily reflects the
success of upgraded and premium products worldwide, strong
growth in emerging markets in the Asia Pacific region, and
incremental revenues from additional brand-dedicated retail
stores worldwide.  Net revenues also benefited from favorable
currency exchange rates during the period.

Net income for the second quarter increased 14% to US$45.7
million, compared to US$40.2 million in the same quarter of
2006.  Net income benefited from lower interest expense as a
result of debt repayment and lower interest rates obtained
through refinancing actions taken during 2006 and 2007.
Refinancing-related costs also were lower in the 2007 period.
These improvements were partially offset by higher income tax
expense in the second quarter of 2007 compared to the same
quarter of 2006 primarily due to a higher discrete tax benefit
in the 2006 period.

                  Liquidity and Capital Resources

The maximum availability under the company's senior secured
revolving credit facility is US$550 million.  As of May 27,
2007, based on collateral levels as defined by the agreement,
reduced by amounts reserved in accordance with this facility as
described below, its total availability was about US$333.3
million.  The company had no outstanding borrowings under this
facility, but had utilization of other credit-related
instruments such as documentary and standby letters of credit.
Unused availability was about US$245.2 million.

Under the company's senior secured revolving credit facility, it
is required to maintain certain reserves against availability,
including a US$75 million reserve at all times.  These reserves
reduce the availability under its credit facility.

As of May 27, 2007, the company had cash and cash equivalents
totaling US$307.2 million, resulting in a net liquidity position
of US$552.4 million.

A copy of the company's second quarter report is available for
free at http://ResearchArchives.com/t/s?2185

"Our growth momentum continues," said John Anderson, chief
executive officer.  "Our premium products are resonating with
consumers.  North America \u2013 our largest region \u2013 is
delivering
good revenue performance, and I'm particularly pleased with
Europe's progress.  We have more work to do in Japan, Korea and
the U.S. Levi Strauss Signature(R) brand, but our solid first
half puts us on track for a good year."

"We delivered another quarter of net revenue and net income
growth.  Our strong cash flow allowed us to further reduce debt
while we continue to invest in the business," said Hans Ploos
van Amstel, chief financial officer.  "Given our first-half
performance, we expect modest net revenue and net income growth
for the fiscal year."

                        About Levi Strauss

Levi Strauss & Co. -- http://www.levistrauss.com/-- is a
branded apparel company, with sales in more than 110 countries.
Levi Strauss designs and markets jeans and jeans-related pants,
casual and dress pants, tops, jackets and related accessories
for men, women and children under its Levi's(R), Dockers(R) and
Levi Strauss Signature(R) brands. Levi Strauss also licenses its
trademarks in various countries throughout the world for
accessories, pants, tops, footwear, home and other products.

The company's global divisions are based in Singapore, San
Francisco, and Brussels.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Mar. 6, 2007, Fitch affirmed the ratings on Levi Strauss & Co.
as:

   -- Issuer Default Rating 'B';
   -- US$650 million asset-based loan 'BB/RR1'; and
   -- US$1.8 billion unsecured notes 'BB-/RR2'.

Fitch also expects to rate Levi's new senior unsecured term loan
'BB-/RR2'.  The Rating Outlook is Positive.

Moody's Investors Service confirmed the company's B2 Corporate
Family Rating and its B3 rating on the company's various senior
unsecured notes.  Additionally, Moody's assigned an LGD5 rating
to those bonds, suggesting noteholders will experience a 59%
loss in the event of a default.


SOLUTIA INC: Files Second Amended Plan and Disclosure Statement
---------------------------------------------------------------
Solutia Inc., and its debtor-affiliates delivered to the United
States Bankruptcy Court for the Southern District of New York,
on July 9, 2007, their Second Amended Plan of Reorganization and
accompanying Disclosure Statement.

                 Solutia Rejects Investment Offer

The Debtors disclose that an investor group of Solutia's equity
holders with the support of the Official Committee of Equity
Security Holders presented investment proposal on June 21, 2007,
consisting of:

  (a) a US$250,000,000 cash investment in exchange for an
      initial 26.2% of the convertible preferred stock of
      Reorganized Solutia; and

  (b) a fully backstopped US$200,000,000 rights offering.

The Investment Proposal contemplates the sale of certain of
Solutia's businesses and for Reorganized Solutia to acquire an
approximately US$1,400,000,000 debt facility, with
US$1,250,000,000 expected to be drawn at closing based on a
June 30, 2007 reference point.

The Equity Committee Investment Proposal requires Monsanto
Company to accept a recovery of 13.5% of the New Common Stock --
as compared to 20% of the New Common Stock under its settlement
agreement with Solutia.

Solutia and its advisors considered the Investment Proposal and
decided against pursuing it because of several deficiencies
associated with the proposal.  The Investment Proposal is
another attempt to force Solutia to explore the potential of
selling certain businesses to generate additional value, which
Solutia, in its business judgment, does not believe will
increase value.

Solutia believes that the Investment Proposal fails for at least
these reasons:

  (a) the proposal does not address the reallocation of the
      Legacy Liabilities, which is key to any successful
      reorganization of Solutia,

  (b) the proposal requires a sale of one of Solutia's
      businesses to an unknown purchaser at a price above
      indications received for that business from the
      exploratory sale process conducted in Fall of 2006, and

  (c) the proposal is contingent on Monsanto accepting 13.5% of
      the New Common Stock of a company much smaller than
      Reorganized Solutia.

                Monsanto & Retiree Pacts Critical

The Debtors declare that their Second Amended Plan is hinged on
the approval of a settlement among Monsanto, Solutia, the
Official Committee of Unsecured Creditors, the Ad Hoc Trade
Committee and the Official Committee of Retirees; and a separate
agreement between the Debtors and the Retiree Committee.

Monsanto has agreed to take financial responsibility as between
itself and Solutia for all of Solutia's legacy tort liabilities
and a substantial portion of its legacy environmental
liabilities.

Roughly 8,500 Tort Claims were filed in Solutia's cases
asserting more than US$17,000,000,000 in the aggregate.  Solutia
currently estimates that the ultimate liability for asserted
Tort Claims will range between US$15,000,000 and US$40,000,000.
The estimate does not account for: (a) future Tort Claims that
could be asserted for pre-Spinoff conduct; (b) the hundreds of
additional lawsuits asserting thousands of claims, which have
been commenced directly against Monsanto -- for which Monsanto,
under the Distribution Agreement, could have asserted
potentially billions in dollars in surrogate claims against
Solutia's Estates absent the Monsanto Settlement -- and (c)
defense costs.

Roughly US$4,000,000,000 in Environmental Claims have been
asserted against Solutia.

Solutia will remain responsible for the environmental
liabilities at sites that it owned or operated after the
Spinoff.  Solutia projects that it will incur US$82,000,000 in
remediation costs for the Retained Sites over the next five
years.

Monsanto will assume responsibility for sites that were
transferred to Solutia pursuant to the Spinoff, but with respect
to which Solutia was never an owner/operator.  Solutia estimates
that Monsanto's agreement to take financial responsibility for
the Legacy Sites will remove roughly US$150,000,000 worth of
complex environmental claims from Solutia's Estates.  Monsanto
will also be responsible for remediation of dioxin contamination
in the Kanawha River and surrounding areas.

Solutia and Monsanto will share responsibility with respect to
the Anniston, Alabama and Sauget, Illinois sites.  Solutia
projects that the aggregate remediation costs at the Shared
Sites will be roughly US$104,000,000 through 2011.  Although the
EPA has not yet determined final remedies for the sites, Solutia
estimates that remediation costs at Sauget and Anniston will
increase to about US$25,000,000 per year from 2012 through 2016.
After 2016, their costs should decrease.

The Retiree Settlement effectuates a comprehensive settlement
between Solutia and the Retirees' Committee regarding Solutia's
medical and other post-employment benefits obligations.

The Debtors note that Monsanto's contributions made possible
Solutia's Settlement with its roughly 20,000 Retirees concerning
the provision of future medical and other benefits at modified
levels.

The two settlements are interdependent.  If either the Monsanto
Settlement or the Retiree Settlement is denied, Solutia's
accomplishment in reallocating significant Legacy Liabilities
back to Monsanto will be lost.  Solutia will need to go back to
the proverbial "drawing board" to determine how to appropriately
reallocate the Legacy Liabilities.  Solutia believes negotiating
a new agreement on the reallocation and satisfaction of the
Legacy Liabilities would be very difficult.

The Court will convene a hearing to consider approval of the
Monsanto Settlement and the Retiree Settlement September 5,
2007.  Solutia is seeking acceptances of the terms of the
Amended Planin advance of approval of the Monsanto Settlement
and the RetireeSettlement.

                   Recovery Under Amended Plan

The Debtors relate that Claims in Classes 1, 2, 4, 6, 7, 8, 9
and 10 will be paid in Cash in full on the Effective  Date, will
be Reinstated or will otherwise not be impaired by the terms of
the Amended Plan.  Claims in Classes 3 and 5 will be paid in
Cash in full on the Effective Date, but are deemed impaired by
the terms of the Amended Plan.  Claims in Classes 18 and 19 will
not receive any  Distribution under the Amended Plan.

Claims in Class 16 will receive a Distribution under the
Amended Plan and the holders of those claims are deemed to
accept the Amended Plan.  Claims  in Class 17 will not receive a
Distribution and are deemed to accept the Amended Plan.

Claims  in Classes 11, 12, 13, 14 and 15 will receive
Distributions of shares of New Common Stock or other
Distributions under the terms of the Amended Plan.  Holders of
Allowed Noteholder Claims in Class 12 will receive their Pro
Rata share, inclusive of Allowed General Unsecured Claims, of
the Stock Pool consisting of 49.9% of the New Common Stock of
Reorganized Solutia.  Each Holder of an Allowed Noteholder Claim
will also be entitled to participate in the Rights Offering.

Holders of Allowed Noteholder Claims in Class 12 that do not
participate in the Rights Offering will receive a 74.8% recovery
on account of their Claims.  Those that participate in the
Rights Offering will receive an 85.3% recovery.

Monsanto will receive 20% of the New Common Stock, which Solutia
estimates will be worth roughly US$240 million at the midpoint
of total enterprise value.

Holders of Allowed General Unsecured Claims in Class 13 will
receive their Pro Rata share, inclusive of Allowed Noteholder
Claims, of the Stock Pool consisting of 49.9% of the New Common
Stock.  Each Holder of an Allowed General Unsecured Claim that
is an Eligible Holder will be entitled to participate in the
Rights Offering.

Holders of Allowed General Unsecured Claims in Class 13 that do
not participate in the Rights Offering will receive a 74.8%
recovery.  Those that participate will receive an 85.3%
recovery.

In accordance with the terms of the Retiree Settlement, the
Retirees, as a class, will receive 2.2% of the New Common Stock,
resulting in a 74.8% recovery.

Holders of Common Stock in Solutia Inc. will receive their Pro
Rata share of Warrants to purchase up to 3.5% of the New Common
Stock with a strike price of US$14.16, provided that Holders of
Claims or Equity Interests in each of Classes 11, 12, 13, 14, 15
and 20 vote to accept the Amended Plan.  If any of Classes 11,
12, 13, 14, 15 and 20 vote to reject the Amended Plan, then
Class 20 will not receive any Distributions under the Plan.

The estimated aggregate amount of Claims and Equity Interests in
each of Classes 3, 5, 11, 12, 13, 14, 15 and 20:

  Claim                                  Solutia's Estimate
  -----                                  ------------------
  Senior Secured Notes Claims               US$208,000,000
  CPFilms Claims                              US$8,400,000
  Monsanto Claim                            US$824,500,000
  2027/2037 Notes                           US$455,400,000
  General Unsecured Claims          between US$317,000,000
                                         to US$367,000,000
  Retiree Claim                              US$35,000,000

                 Wallach Joins Management Team

The Debtors also disclose that Hal E. Wallach, Jr. joined the
company as Senior Vice President of Human Resources in July
2007.

For seven years, Mr. Wallach served as a principal and head of
the St. Louis office of Mercer Human Resources Consulting.
Prior to joining Mercer, Mr. Wallach held management positions
with two other human resources consulting firms, Buck
Consultants and Hewitt Inc.

The Debtors anticipate that all of their senior management team
will continue to work for Reorganized Solutia in their current
capacity after emergence.

Under the Amended Plan, certain executives and two other key
employees of the Debtors have a component of their Annual
Incentive Plan which is linked to Solutia's emergence from
bankruptcy.  The Debtors disclose that the emergence metric
applies to:

  -- Jeffry N. Quinn, the Debtors' president, chief executive
     officer and chairman of the board of directors;

  -- Kent J. Davies, senior vice president and president of
     CPFilms;

  -- Luc De Temmerman, senior vice president and president of
     Performance Products of Solutia;

  -- James R. Voss, senior vice president and president of
     Flexsys;

  -- Jonathon P. Wright, senior vice president and president of
     Integrated Nylon;

  -- Robert T. DeBolt, senior vice president of Business
     Operations;

  -- Rosemary L. Klein, senior vice president, secretary and
     general counsel;

  -- James M. Sullivan, senior vice president and chief
     financial officer; and

  -- two other key employees.

The Emergence Metric for each Emergence Metric Employee is based
solely on objective factors, and is not discretionary, the
Debtors relate.

               Valuation of Reorganized Solutia

The Debtors also filed with the Court valuation materials
prepared by Rothschild, Inc., their financial advisor and
investment banker.

Rothschild has estimated the midpoint enterprise value for
Reorganized Solutia to be roughly US$2,850,000,000 assuming pro
forma net debt of roughly US$1,700,000,000.  Reorganized
Solutia's implied midpoint equity value available for
distribution to creditors is approximately US$1,200,000,000.

The financial advisor to the Official Committee of Equity
Security Holders, however, believes that Solutia's value may be
significantly higher than the Debtors' estimate.  The Equity
Committee intends to vigorously challenge the Debtors' valuation
at confirmation.

A full-text copy of Rothschild's Valuation Analysis is available
at no charge at http://ResearchArchives.com/t/s?218c

                         Plan Is Feasible

The Debtors believe that confirmation of the Amended Plan is not
likely to be followed by the liquidation, or the need for
further financial reorganization.  Solutia's management, with
the assistance of Rothschild, has prepared Projected
Consolidated Income Statement, Projected Consolidated Balance
Sheet and Projected Consolidated Cash Flow Statement for
Reorganized Solutia's five year period from 2007 through 2011.

A full-text copy of the Debtors' five-year Financial Projections
is available at no charge at:

            http://ResearchArchives.com/t/s?218d

                Reorganization Beats Liquidation

The Debtors believe that, under the Amended Plan, each Holder of
Impaired Claims will receive property of a value not less than
the value the Holder would receive in a liquidation under
Chapter 7 of the Bankruptcy Code.  The Debtors delivered to the
Court an updated liquidation analysis reflecting changes to the
liquidation analysis since February 14, 2006.

A full-text copy of the Debtors' Liquidation Analysis is
available at no charge at http://ResearchArchives.com/t/s?218e

                       Equity Panel's View

The Amended Disclosure Statement also presents the Equity
Committee's view of its complaint against Monsanto and
Pharmacia.  The Equity Committee commenced an action against
Monsanto and Pharmacia in 2005 seeking disallowance of the
claims filed by Monsanto and Pharmacia against Solutia's
bankruptcy Estates and a reallocation of hundreds of millions of
dollars of the Legacy Liabilities from Solutia's balance sheet
to that of Monsanto and Pharmacia, based on alleged wrongful and
inequitable conduct by Monsanto and Pharmacia.

The Equity Committee does not believe that the Amended Plan is
in the best interests of all creditors or of the estates.  The
Equity Committee believes that the Amended Plan is far too
generous to Monsanto and Pharmacia, because, like the Spinoff,
affords Monsanto and Pharmacia significant continuing protection
from the Legacy Liabilities.

The Equity Committee intends to object to the reasonableness of
the Monsanto and Retiree Settlements at that hearing.

The Equity Committee has also argued that the Amended Plan and
the Debtors' Projections substantially undervalue Solutia.  The
Equity Committee's financial advisors believe that Solutia's
total enterprise value is significantly higher than
US$2,800,000,000.

Based on indications of interest the Debtors received for
various businesses, the Equity Committee's financial advisors
believe that the Debtors' enterprise value is at least
US$3,200,000,000.  According to the Equity Committee, the figure
essentially sums up the actual price indications already offered
to Solutia from interested, financially strong potential buyers.
The panel notes that the offers were unsolicited; Solutia did
not encourage potential buyers to bid on individual business
segments.

The Equity Committee has also noted that the US$3,200,000,000
figure does not reflect the ultimate purchase prices that may be
achieved through a competitive sale process open to financially
strong parties who are willing to engage in rigorous
negotiations.  Thus, the Equity Committee's financial advisors
believe that the Debtors' true enterprise value is well above
US$3,200,000,000.  Recognition of the true value of Solutia
would provide creditors with a full recovery on account of their
Claims.

The Equity Committee will challenge the valuation as it allows
Monsanto and other unsecured creditors to receive a substantial
windfall while depriving public shareholders of value to which
they are legally entitled.

The Debtors, however, note that selected preliminary non-binding
indications of interest received from potential strategic and
financial buyers do not sum to an enterprise value of
US$3,200,000,000.  In addition, the preliminary, non-binding
indications of interest that were received assume a consensual
settlement with Monsanto concerning certain environmental, mass
tort, OPEB and pension liabilities consistent with the Global
Settlement -- a settlement that is not available under a
multiple sale scenario.  The Debtors also point out that the
Equity Committee neglects to acknowledge the magnified execution
risk related to multiple potential sales and the potential
ramifications of only a partial sale scenario.

A full-text copy of the Debtors' Second Amended Plan is
available at no charge at http://ResearchArchives.com/t/s?218f

A full-text copy of the Debtors' Second Amended Disclosure
Statement is available at no charge at:

                http://ResearchArchives.com/t/s?2190

              Disclosure Statement Hearing Adjourned

Judge Beatty has continued the hearing to consider approval of
the Debtors' disclosure statement to July 17, 2007, Bill
Rochelle at Bloomberg News reports.  She directed the Debtors to
provide additional disclosure regarding the proposed releases
provided to Monsanto and better explanation regarding the
treatment of retiree claims.

                           About Solutia

Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide.  Solutia
has operations in Singapore, Malaysia, China, Belgium and
Colombia.  The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP.  Trumbull Group LLC is the Debtor's claims
and noticing agent.  Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.

The hearing to consider approval of the Disclosure Statement
describing Solutia's First Amended Reorganization Plan started
on July 10, 2007.  The Debtors' exclusive period to file a plan
expires on July 30, 2007.

(Solutia Bankruptcy News, Issue No. 92; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


SOLUTIA INC: Wants Court Nod on Hal Wallach as HR Senior VP
-----------------------------------------------------------
Solutia Inc. and its debtor-affiliates seek the U.S. Bankruptcy
Court for the Southern District of New York's approval to employ
Hal E. Wallach, Jr., as senior vice president of human
resources.

As a result of the promotion of Mr. James R Voss, who served as
senior vice president of business operations, to president of
Flexsys, Solutia's newly acquired rubber chemicals business, and
the resignation of the company's vice president of human
resources, Solutia conducted a search to fill the human
resources position at the senior level.

Mr. Wallach will have global responsibility for the human
resources function, including, but not limited to, the areas of
compensation and benefits, development and implementation of
global human resource policies and procedures and training, as
well as staffing and recruiting.  Mr. Wallach will also assist
the Executive Compensation and Development Committee of
Solutia's Board of Directors with its duties and
responsibilities regarding executive compensation and benefits.
He will also assist the Board's Governance Committee with its
duties and responsibilities regarding non-employee director
compensation.  Mr. Wallach will be based at Solutia's
headquarters in St. Louis, Missouri, and will report directly to
Solutia's chief executive officer.

The Board of Directors has authorized Solutia, subject to the
Bankruptcy Court's approval, to enter into its standard senior
executive employment agreement with Mr. Wallach.

Pursuant to the Wallach Agreement, Mr. Wallach will earn an
annual base salary of not less than US$300,000, and will
participate in Solutia's annual incentive program, or any
successor annual bonus plan, with a target bonus opportunity of
not less than 75% of his annual base salary.

In addition, Mr. Wallach will be entitled to participate in all
long-term and other incentive plans, practices, policies and
programs generally applicable to senior executive officers of
Solutia.  Mr. Wallach, however, will not participate in the
emergence bonus program currently in place with respect to
Solutia's other senior executives.

Prior to joining Solutia, Mr. Wallach served as a principal at
consulting firm Mercer Human Resources Consulting.  As the head
of Mercer's St. Louis office and its St. Louis Client Management
practice, Mr. Wallach's responsibilities include leading multi-
practice global teams to assist organizations, including public
companies, to design, implement and administer human resource
strategies, programs and policies.   Prior to joining Mercer,
Mr. Wallach spent 10 years in management positions with two
other consulting firms, Buck Consultants and Hewitt Inc.

Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide.  Solutia
has operations in Singapore, Malaysia, China, Belgium and
Colombia.  The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP.  Trumbull Group LLC is the Debtor's claims
and noticing agent.  Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital
provides the Creditors' Committee with financial advice.

The hearing to consider approval of the Disclosure Statement
describing Solutia's First Amended Reorganization Plan started
on July 10, 2007.  The Debtors' exclusive period to file a plan
expires on July 30, 2007.

(Solutia Bankruptcy News, Issue No. 92; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


SOLUTIA INC: Recorded Claims Transfers as of July 2
---------------------------------------------------
The Bankruptcy Clerk for the U.S. Bankruptcy Court for the
Southern District of New York recorded a total of US$1,443,639
claims which changed hands between June 27, 2007, and
July 2, 2007, in Solutia Inc. and its debtor-affiliates'
chapter 11 cases:
                                                    Face Amount
Transferor           Transferee        Claim No.     of Claims
----------           ----------        ---------     ---------
Sig Southwest Inc.    Argo Partners            -     US$56,162


Aceto Corp.           Hain Capital          1584        96,066
                     Holdings, LLC

Comprehensive Search  CVI GVF (Lux)            -       218,680
                     Master S.a.r.l.

Comprehensive Search, CVI GVF (Lux)         3407       217,751
Inc.                  Master S.a.r.l.

Comprehensive Search, CVI GVF (Lux)         3407       218,228
Inc.                  Master S.a.r.l.

Regional Valve Corp.  CVI GVF (Lux)            -        67,194
Of Florida            Master S.a.r.l.

US Filter/IonPure     Hain Capital            64       569,558
                     Holdings, LLC

Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide.  Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.  The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP.  Trumbull Group LLC is the Debtor's claims
and noticing agent.  Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.

The Court is set to consider approval of the Disclosure
Statement describing Solutia's First Amended Reorganization
Plan on July 10, 2007.  The Debtors' exclusive period to file
a plan expires on July 30, 2007.  (Solutia Bankruptcy News,
Issue No. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


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


POLYONE CORP: Fitch Lifts Issuer Default Rating to BB-
------------------------------------------------------
Fitch Ratings upgraded PolyOne Corporation's ratings as:

  -- Issuer Default Rating to 'BB-' from 'B';

  -- Senior unsecured debt and debentures to 'BB-' from
     'B+/RR3';

  -- Rating Outlook Stable.

The ratings upgrade reflects PolyOne's decision to pay down debt
with the proceeds from the sale of its 24% interest in
OxyVinyls, LP to Occidental Chemical Corp for US$261 million.
Cash proceeds will be used to reduce debt by 43% and lower
interest expense.  Interest expense is expected to be US$25
million lower in 2008 as compared to 2006.  Also, exiting the
commodity business will significantly decrease earnings
volatility.  The sale of the 24% will not affect the resin
supply agreement PolyOne has with OxyVinyls.  This agreement
remains intact until 2024.

PolyOne's size and downstream market position support the
ratings upgrade.  PolyOne is a leading global compounding and
North American distribution company.  At US$2.6 billion in
revenue latest 12 months March 31, 2007, PolyOne is larger than
many of the smaller companies that participate in the highly
fragmented plastic compounding sector.  Additionally, PolyOne's
global operations provide the company more opportunities in
rapidly growing economies compared to limited growth
opportunities in the U.S. for regional players.

PolyOne's earnings can be pressured by rapidly increasing resin
costs in a rising price environment as seen in recent years.
Downstream companies like PolyOne are slower to pass on product
price increases compared to the upstream resin producers from
whom they purchase raw materials.  However, with the increase in
capacity coming online in late 2007 and early 2008, resin prices
are expected to drop, thus giving PolyOne a chance to increase
margins.

In the current environment, resin pricing has stabilized at high
levels and PolyOne has been able to catch up with its own price
increases, supported by good demand.  For the LTM period ended
March 31, 2007, PolyOne's operating EBITDA was US$129.1 million
compared to US$138.4 at year-end 2006.  The drop in EBITDA was
primarily from the reduction in net earnings from the OxyVinyls
JV.  This is primarily a result of lower construction-related
product demand and contracting PVC resin spreads.  Profitability
has also improved ever so slightly to 5% from 4.8% at YE2005,
but remains in the single-digit range.

Meanwhile, total debt is expected to decline to US$330 million
at Aug. 9, 2007 from US$595.9 million at the end of March 2007.
Higher earnings and lower debt will strengthen the credit
statistics with expected total adjusted debt/operating EBITDAR
of 2.5x and operating EBITDA/gross interest expense of 3.2x at
YE2007.

The stable rating outlook incorporates some stabilization in
earnings and profitability with debt reduction over the next 12
to 24 months.  The stable outlook assumes demand is stable; any
necessary price increases can be passed through; and costs
moderate slightly.  Other than the medium-term notes maturing
each year (US$20 million per year through 2011), Fitch does not
anticipate any additional significant debt reduction nor does
Fitch expect any major acquisitions.  PolyOne does not have any
significant maturities until 2012.

Headquartered in Avon Lake, Ohio, PolyOne Corp. --
http://www.polyone.com/-- is a global compounding and North
American distribution company with operations in thermoplastic
compounds, specialty polyvinyl chloride (PVC) vinyl resins,
specialty polymer formulations, color and additive systems, and
thermoplastic resin distribution, with equity investments in
manufacturers of PVC resin and its intermediates.  The company
has 53 manufacturing sites and 14 warehouses in North America,
Europe and Asia, including China, Colombia, Thailand, Singapore,
Belgium, Denmark, France, the United Kingdom, among others.


===========================
C Z E C H   R E P U B L I C
===========================


LEAR CORP: Shareholders Reject AREP Merger Agreement
----------------------------------------------------
At Lear Corporation's Annual Meeting of Stockholders held on
July 16, 2007 in Wilmington, Delaware, an insufficient number of
shares were voted in favor of the merger proposal with American
Real Estate Partners L.P.

As a result of this vote by stockholders, Lear's Merger
Agreement with AREP will terminate in accordance with its terms
and Lear will continue to operate as a standalone publicly-
traded company.

"We respect the stockholder majority and intend to operate our
business going forward with the same high level of intensity and
commitment to customer satisfaction and stockholder value we
have always had," Bob Rossiter, Lear's chairman and chief
executive officer, said.  "At the time we entered into the
Merger Agreement with AREP, we had a clear strategy and business
plan for the future.  We will continue to execute that plan."

"In the end, while there were many different viewpoints
on the transaction, the decision came down to each individual
owner's investment perspective, outlook for the future and
assessment of the risks, Mr. Rossiter continued.  "What we all
can take away from this proposed transaction and ultimate vote
is that both Mr. Icahn and our present stockholders share a
common positive view of Lear's long-term prospects."

Additionally, stockholders voted on these items:

   -- For the reelection of three directors, Larry W. McCurdy,
      Roy E. Parrott and Richard F. Wallman;

   -- For amendments to Lear's Amended and Restated Certificate
      of Incorporation in order to eliminate the current
      classified structure of the Board and phase in over a
      three year period the annual election of each member of
      the Board;

   -- For the appointment of Ernst & Young LLP as Lear's
      Independent registered public accounting firm;

   -- For a non-binding stockholder proposal to initiate a
      process to amend the Corporate governance documents to
      provide that director nominees will be elected by
      affirmative vote of the majority of votes cast at the
      annual meeting of stockholders, with a plurality vote
      standard retained for the contested director elections,
      that is, when the number of nominees exceeds the number of
      board seats;

   -- Against a non-binding stockholder proposal on Global Human
      Rights Standards.

                      AREP Merger Deal

As reported in the TCR-Europe on July 12, 2007, the company
approved an amendment to the Merger Agreement with AREP.  Under
the amendment, AREP agreed to increase its offer price for
shares of Lear common stock from US$36 to US$37.25 per share.

                      About American Real

American Real Estate Partners, L.P. -- http://www.arep.com/--
(NYSE: ACP), a master limited partnership, is a diversified
holding company engaged in a three primary business segments:
Gaming, Real Estate and Home Fashion.

                         About Lear Corp.

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components.  Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products.  The company has more than 90,000 employees at 236
facilities in 33 countries.

Lear also operates in Latin American countries including
Argentina, Mexico, and Venezuela.  Its European operations are
located in Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, Poland, Portugal, Romania, Russia, Slovakia,
Spain, Sweden, South Africa, Morocco, Netherlands, Tunisia and
Turkey.  Its Asian facilities are in China, India, Japan,
Philippines, Singapore, South Korea, and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service confirmed Lear Corp.'s existing
ratings consisting of a B2 corporate family rating, B3 senior
unsecured notes, and B2 secured bank term loan.


LEAR CORP: S&P Puts B Rating on Watch Positive After Merger Vote
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate
credit rating on Southfield, Michigan-based Lear Corp. and
certain other issue ratings on CreditWatch with positive
implications following Lear's announcement that shareholders had
voted against the debt-financed purchase of Lear by Carl Icahn-
controlled American Real Estate Partners, L.P. (AREP;
BB+/Stable/--).

AREP currently owns or controls about 20% of Lear, an automotive
supplier.

"The CreditWatch resolution will focus on expectations for
Lear's financial profile absent the proposed acquisition debt as
well as prospects for any shifts in business or financial
strategy now that Lear will remain an independent company," said
Standard & Poor's credit analyst Robert Schulz.  Prior to the
AREP bid in February, Lear's corporate credit rating was 'B+'
and a modest upgrade which returns the corporate credit rating
to that level is possible.

At the same time, S&P's withdrew its ratings on the proposed
bank acquisition financing, revised its recovery rating on
Lear's existing bank term loan to '2' from '3' (this reflects
the recently announced changes to S&P's recovery ratings scale)
and placed the 'B+' bank loan rating on the existing term loan
on CreditWatch with positive implications.  S&P also withdrew
its 'B-3' short-term rating.

Lear has total debt of about US$3.5 billion at March 31, 2007,
including the present value of operating leases and underfunded
employee benefit liabilities.  Lear has strong market positions,
good growth prospects outside of North America, and fair
financial flexibility.  While its operating performance has been
challenged by severe industry pressures in North America that
caused credit protection measures to weaken in recent years,
Lear has reported improved results during 2007, and twice raised
its guidance for the year.  Still, with restructuring efforts
ongoing at Michigan-based automakers, we expect that 2007 and
beyond will present challenges for most US-based auto suppliers.

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components.  Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products.  The company has more than 90,000 employees at 236
facilities in 33 countries.

Lear also operates in Latin American countries including
Argentina, Mexico, and Venezuela.  Its European operations are
located in Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, Poland, Portugal, Romania, Russia, Slovakia,
Spain, Sweden, South Africa, Morocco, Netherlands, Tunisia and
Turkey.  Its Asian facilities are in China, India, Japan,
Philippines, Singapore, South Korea, and Thailand.


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


ALCATEL-LUCENT: To Deploy First WiMAX Network in France
-------------------------------------------------------
Alcatel-Lucent and SHD, a corporate joint venture between SFR
and Neuf Cegetel, had signed a two-year contract for the supply
and installation of the first next-generation WiMAX network in
France, using standard 802.16e-2005.

Alcatel-Lucent will equip the planned sites of SHD's WiMAX
network in the Ile-de-France and Provence-Alpes-Cote d'Azur
regions by mid-2009.  The first sites are already operational in
the Paris region due to a pilot network deployed at the end of
2006 and will be operational in the PACA region this summer,
thanks to the second pilot network deployed by SHD and Alcatel-
Lucent.

Based on the latest standard IEEE 802.16e-2005, the new radio
network will use the 3.4 x 3.6 GHz frequency band.  It will
enable professional and residential subscribers alike to connect
to broadband Internet in fixed and nomadic environments in areas
with little or no DSL coverage.  Alcatel-Lucent will provide its
complete next-generation WiMAX solution so that SHD's WiMAX
network will benefit from one of the most advanced technologies
in terms of radio frequency management.

"This first deployment of a WiMAX 802.16e-2005network in France
follows several similar contracts won by Alcatel-Lucent in other
European countries since the beginning of the year", said
Olivier Picard, President of Alcatel-Lucent's Europe and South
activities.  "This first WiMAX reference in France confirms
Alcatel-Lucent's commitment to this technology, which is at the
core of our universal broadband access strategy.  It shows
moreover that we are devoting the best of our R&D resources to
satisfy our customers in France and throughout the world."

"This contract follows on from the success of the first pilot
WiMAX network deployed by Alcatel-Lucent for SHD last December
on ten sites in the Paris region," commented Frederic Laforest,
Executive Vice-President of SHD.  "WiMAX gives the possibility
of distributing state-of-the-art services, particularly in rural
or urban regions that today lack sufficient connectivity. We
considered that Alcatel-Lucent's solution offered the best
performance and was the most innovative."

Alcatel-Lucent will also qualify advanced WiMAX terminals
complying with standard IEEE 802.16e-2005, aided by one of the
world's leading suppliers.

                          About SHD

SHD, Societe du Haut Debit, is a corporate joint venture held by
SFR and Neuf Cegetel, and partnered by the Group Groupe CANAL+.
In July 2006 SHD received licenses to use WiMAX radio local loop
frequencies in the Ile-de-France and Provence-Alpes-Cote d'Azur
regions.  Its missions are to deploy and operate a WiMAX network
in these two regions and propose wholesale offerings to the
operators for the ultimate benefit of private and corporate
subscribers.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.  Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia,
Brunei and Cambodia.  On Nov. 30, 2006, Alcatel and Lucent
Technologies Inc. completed their merger transaction, and began
operations as a communication solutions provider under the name
Alcatel-Lucent on Dec. 1, 2006.

                         *     *     *

As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.

As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating.  Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.

Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating.  Its Short-Term Corporate Credit rating stands at B.


FRESH DEL MONTE: S&P Puts Preliminary B Rating on Sr. Unsec Debt
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B'
senior unsecured debt, preliminary 'B' subordinated debt, and
preliminary 'B-' preferred stock ratings to Fresh Del Monte
Produce Inc.'s Rule 415 universal shelf registration for debt
securities.

The company may sell debt securities or ordinary shares or a
combination thereof.  Net proceeds are expected to be used for
general corporate purposes, including to repay outstanding
indebtedness if so specified in the prospectus supplement.  The
company may invest funds that are not immediately needed for
these purposes in short-term marketable securities.  The
corporate credit rating on Cayman Islands-based Fresh Del Monte
is 'BB-'. The outlook is negative.

"The rating reflects its participation in the highly variable,
commodity-oriented fresh fruit and vegetable industry, which is
affected by uncontrollable factors such as global supply,
political risk, weather, and disease," said Standard & Poor's
credit analyst Alison Sullivan.  Mitigating these concerns are
the company's leading positions in the production, marketing,
and distribution of fresh produce.  At March 31, 2007, Fresh Del
Monte had about US$484 million of debt outstanding.

                 About Fresh Del Monte

Based in the Cayman Islands, Fresh Del Monte Produce Inc.
-- http://www.freshdelmonte.com/-- is one of the world's
leading vertically integrated producers, marketers and
distributors of high-quality fresh and fresh-cut fruit and
vegetables, as well as a leading producer and distributor of
prepared fruit and vegetables, juices, beverages, snacks and
desserts in Europe, the Middle East and Africa.  Fresh Del Monte
markets its products worldwide under the Del Monte(R) brand, a
symbol of product quality, freshness and reliability since 1892.

Del Monte Fresh Produce Company has operations in Chile, Brazil,
France and Korea.


KAUFMAN & BROAD: Moody's Withdraws Ba1 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn the corporate family
rating of Kaufman & Broad S.A. for business reasons, at the
request of the issuer.

Moody's has also withdrawn the rating on the EUR150 million
senior unsecured notes of K&B following the early repayment of
97.9% of those.

These ratings were withdrawn:

   -- Corporate Family Rating of Ba1;

   -- Ba2 rating on the EUR150 million 8.75% Senior Notes due
      2009.

Headquartered in Neuilly-sur-Seine, France, Kaufman & Broad S.A.
is one of the country's largest homebuilders, with revenues of
EUR1.3 billion and total deliveries of approximately 7,100
apartments and single-family homes during the fiscal year 2006.
Financiere Gaillon 8 S.A.S., an investment vehicle for PAI
Partners S.A.S., currently owns 50.28% of the group's share
capital.


NYLSTAR FRANCE: Court Places Firm in Voluntary Administration
-------------------------------------------------------------
The President of the Arras Commercial Court placed Nylstar
France into voluntary administration or redressement judiciaire
on July 6, 2007.

The bankruptcy proceeding is the French equivalent of the United
States' chapter 11 process.

This is a consequence of the cessation of payments by the
Italian group Nylstar, following the failure of the banks, who
took control of Nylstar a few months ago, to conclude
successfully the refinancing.

Voluntary administration should enable the Arras production
facility to remain operational.

Headquartered in Arras, France, Nylstar France –-
http://www.nylstar.com/-- manufactures nylon fibers.  The
company's U.S. subsidiary also filed a chapter 11 petition on
July 5 at the U.S. Bankruptcy Court for the Western District of
Virginia in Lynchburg (Bankr. W.D. Va. Case No. 07-61227).  When
the Debtor filed for protection from its creditors in the U.S.,
it estimated between US$50 million to US$100 million in assets
and debts.


REALOGY CORP: Closes Change of Control Offer for US$1.2BB Notes
---------------------------------------------------------------
Realogy Corporation has closed its change of control offer for
any and all of its outstanding:

   a) US$250,000,000 principal amount of Floating Rate Senior
      Notes due 2009;

   b) US$450,000,000 principal amount of 6.15% Senior Notes due
      2011; and

   c) US$500,000,000 principal amount of 6.50% Senior Notes due
      2016.

As required by the Notes and the indenture governing the Notes,
the purchase price with respect to each series of Notes equaled
100% of the principal amount of such series of Notes, plus
accrued interest payable with respect to such series of Notes to
July 9, 2007.

Based upon final results from the depositary for the tender
offer, of the US$1.2 billion aggregate principal amount of the
Notes outstanding, Realogy purchased approximately US$1 billion,
consisting of approximately US$230,000,000 principal amount of
Floating Rate Senior Notes due 2009, US$324,245,000 of the
principal amount of 6.15% Senior Notes due 2011 and
US$448,500,000 of the principal amount of 6.50% Senior Notes due
2016.

Realogy effected payment of the validly tendered Notes on
July 9, 2007 by depositing immediately available funds with the
depositary, Wells Fargo Bank, National Association, which in
turn is required to transmit payment to tendering holders of
Notes.

To finance the purchase of the Notes, Realogy utilized a portion
of the delayed draw term loan subfacility under the senior
secured credit facility it established in April 2007.

The change of control offer was made pursuant to Realogy's
obligations under the indenture governing the Notes, which
requires Realogy to make an offer to purchase the Notes after a
"change of control triggering event."

A "change of control triggering event" occurred on April 10,
2007 as a result of (i) the "change of control" that resulted on
that date from the consummation of Realogy's merger with an
affiliate of Apollo Management L.P. and (ii) the lowering of the
ratings for the Notes to below investment grade by both Moody's
Investors Service, Inc. and Standard & Poor's Rating Services in
March 2007.

                        About Realogy Corp.

Headquartered in Parsippany, New Jersey, Realogy Corporation
(NYSE: H)-- http://www.realogy.com/-- is real estate franchisor
and a member of the S&P 500.  The company has a diversified
business model that also includes real estate brokerage,
relocation, and title services.  Realogy's world-renowned brands
and business units include CENTURY 21(R), Coldwell Banker(R),
Coldwell Banker Commercial(R), ERA(R), Sotheby's International
Realty(R), NRT Incorporated, Cartus, and Title Resource Group.
Realogy has more than 15,000 employees worldwide.  The company
operates in Australia, Brazil and France.


REALOGY CORP: S&P Lowers Rating & Removes Negative CreditWatch
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch Negative its issue-level rating on Realogy Corp.'s
previously senior unsecured notes that were part of the
company's capital structure prior to the April 2007 going
private acquisition of the company by Apollo Management L.P.

In addition, a recovery rating was assigned to this debt.  The
issue-level rating was lowered to 'BB' and a recovery rating of
'1' was assigned, indicating that lenders can expect very high
(90% to 100%) recovery in the event of a payment default.

These rating actions follow Realogy's announcement that it has
closed its change of control offer for any and all of its
outstanding US$250 million floating senior notes due 2009,
US$450 million 6.15% senior notes due 2011, and US$500 million
6.5% senior notes due 2016.  The issue-level and recovery
ratings reflect that note holders have been granted equal
ranking and share the same collateral package as the company's
senior secured credit facility.  Of the US$1.2 billion aggregate
principal amount of the notes outstanding, Realogy purchased
approximately US$1 billion, consisting of US$230 million
floating senior notes, US$324 million 6.15% senior notes due
2011, and US$449  million 6.5% senior notes due 2016.  To
finance the purchase, the company drew on part of its delayed-
draw term loan sub-facility under its senior secured credit
facility.

                       Ratings List

  * Realogy Corp.
    Corporate Credit Rating   B+/Negative/--

    Rating Lowered
                               To     From
                               --     ----
    Senior Notes               BB     BB+/Watch Neg
    Recovery Rating            1      Not rated

Headquartered in Parsippany, N.J., Realogy Corporation
(NYSE: H)-- http://www.realogy.com/-- is real estate franchisor
and a member of the S&P 500.  The company has a diversified
business model that also includes real estate brokerage,
relocation, and title services.  Realogy's world-renowned brands
and business units include CENTURY 21(R), Coldwell Banker(R),
Coldwell Banker Commercial(R), ERA(R), Sotheby's International
Realty(R), NRT Incorporated, Cartus, and Title Resource Group.
Realogy has more than 15,000 employees worldwide.  The company
operates in Australia, Brazil and France.


TCL MULTIMEDIA: Shows Over-Subscription of Proposed Rights Issue
----------------------------------------------------------------
TCL Multimedia Technology's valid acceptances and excess
applications were received for a total of 5.509 billion rights
shares -- including excess applications for 3.6 billion rights
shares -- representing an over-subscription of 1.82x, Infocast
News reports.

The rights issue has become unconditional, the report adds.

On May 23, 2007, the Troubled Company Reporter-Asia Pacific
reported that TCL Multimedia entered into a Purchase Agreement
with Deutsche Bank AG where the company will issue US$140
million in convertible bonds due 2012.

The bonds, which carry an interest of 4.5% per annum, are
convertible into shares of the company at an initial conversion
price of HK$0.40 each, the TCR-AP said.

Headquartered in New Territories, Hong Kong, TCL Multimedia
Technology Holdings Limited -- http://www.tclhk.com/-- designs,
manufactures and sells electronic products like colored TV, DVD
players, VCD players, home cinema hi-fi systems, mobile
handsets, Internet-related information technology
products,refrigerators and washing machines.  Its other activity
includes trading electronic parts and components used in the
production of color television sets.

On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific
reported that TCL Multimedia Technology Holdings Limited's
European operations posted a CNY763 million loss, which caused
losses of the TCL Corp. group to widen to CNY737.56 million.
Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is
expecting to post a loss for the full-year because first-half
losses had been so large.  In the first half of 2006, TCL
reported a net loss of CNY737.56 million, after a loss of
CNY320.24 million in 2005.

The TCR-AP recounts that in 2004, TCL acquired the TV unit of
French electronics firm Thomson, which uses the Thomson brand in
Europe and RCA in North America.  TCL grouped all its TV
businesses under TMT.

TTE Europe SAS, TCL's European unit, filed a declaration of
insolvency on May 24, 2007, in France after it failed to settle
a number of outstanding liabilities.


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


* Fitch Assigns Low-B Ratings to Georgia on Reduced Debt Burden
---------------------------------------------------------------
Fitch Ratings has assigned Georgia Long-term foreign and local
currency Issuer Default ratings of 'BB-', with Stable Outlooks.
It also assigned a Country Ceiling of 'BB-' and Short-term
foreign currency IDR of 'B'.

"Georgia's sovereign ratings are underpinned by its moderate and
declining public debt burden, rapid GDP growth rate, impressive
record of structural reforms, buoyant FDI inflows and strong
international financial support," says Edward Parker, Head of
Emerging Europe Sovereigns at Fitch.  "However, the country's
short track record of economic performance, moderate income
level, large current account deficit, narrow economic base and
susceptibility to various economic and political shocks are
constraints on its rating."

Fitch expects real GDP growth of around 10% this year after
averaging 9.5% in 2005 and 2006. GDP growth will be propelled by
foreign direct investment, which could be around 18% of GDP, and
ambitious structural reforms.  The latest World Bank Doing
Business Survey records Georgia as the world's top reformer,
moving up to 37th place in 2007 (out of 175) from 112th in 2006.
The economy also appears to be coping well so far with the
Russian trade embargo and hike in gas prices.

Georgia's public finances are a rating strength.  Tax reform,
the fight against corruption and the economic boom helped the
government raise tax revenues to 26% of GDP in 2006 from just
16% in 2003.  Spending is also growing rapidly, but Fitch
expects the budget deficit to be about 2.7% of GDP this year,
financed mainly by privatization receipts.  The agency expects
government debt to decline to just 26% of GDP at end-2007, below
the 'BB' range median of 39%, and down from 71% at end-2002.
Past debt rescheduling means that government debt maturities are
just 1.3% of GDP in 2007, compared with an estimated 23% in
Turkey ('BB-'/Stable).

In contrast, Georgia's external finances are a relative
weakness.  Fitch forecasts deterioration in the current account
deficit to around 20% of GDP this year, from 15% in 2006, though
it is expected to be financed by FDI and capital grants.  The
deficit reflects buoyant demand, fuelled by rapid bank credit
growth and capital inflows, while the supply-side of the economy
remains under-developed.  Nonetheless, net external debt is
moderate at 15% of GDP at end-2006, just above the 'BB' range
median of 12% and has declined from 43% at end-2003.  Foreign
reserves are rising and international liquidity is comfortable
at 206% for 2007.

Political risks are a material factor affecting the sovereign
rating.  Following the bloodless "Rose Revolution" in 2003,
President Saakashvili and the National Movement Democrats have
shifted to a Euro-Atlantic orientation and launched ambitious
reforms that have strengthened democratic institutions and
reduced corruption.  Though challenges remain, the National
Movement Democrats appear likely to win the cycle of elections
over the next 18 months, offering the prospect of an extended
period of strong, stable and reformist government.  However,
relations with Russia are difficult and there is a risk that
events could precipitate a flaring up of conflict with the
secessionist territories of Abkhazia and South Ossetia.


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


DAIMLERCHRYSLER: BMW Sells 50% Tritec Motors Stake to Chrysler
--------------------------------------------------------------
BMW AG has sold its 50 percent stake in Brazilian engine joint
venture Tritec Motors Limitada to DaimlerChrysler's Chrysler
Group division, Reuters reports.  Financial terms of the deal,
which requires regulatory apporoval, were not disclosed.

"Chrysler Group has assumed the responsibility for exploring
long-term options for the Tritec operations whereby all possible
alternatives for continuing the business for the long run are
under analysis.  This may include a sale of the facility to a
third party," BMW said in a statement.

Founded in 1997, Tritec makes 1.4- and 1.6-litre four-cylinder
petrol engines for BMW's Mini brand and some Chrysler models.
The plant boasts of an annual production capacity of around
250,000 units.  Large-scale production started in January 2000,
Reuters 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.


DURA AUTOMOTIVE: Committee Wants EBITDA Outlook Disclosed
---------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in DURA
Automotive Systems Inc. and its debtor-affiliates' chapter 11
cases seeks the U.S. Bankruptcy Court for the District of
Delaware's permission to publicly file the Debtors' projected
consolidated Earnings Before Taxes, Depreciation and
Amortization (EBITDA) for the years 2007 through 2001,
previously given by the Debtors as "Confidential Information."

The Five EBITDA Numbers were originally included in the 5-year
business plan presentation by the Debtors to the Official
Committee of Unsecured Creditors and the Ad Hoc Committee of
Second Lien Lenders.  The Debtors have sought permission to file
the document under seal.

M. Blake Cleary, Esq., at Young Conaway Stargatt and Taylor LLP,
in Wilmington, Delaware, explains that pursuant to Section 1102
of the Bankruptcy Code, the Creditors Committee has a duty to
disclose information to its constituents.  The Committee wants
to file the Five EBITDA Numbers on the docket to prevent
creditors from potentially being preyed upon by other creditors
with information.

Mr. Cleary notes that the Five EBITDA Numbers will be contained
in the Debtors' disclosure statement that will be likely be
filed in a few months.  In addition, the Committee has reason to
believe that the Five EBITDA Numbers have been leaked, through
no fault of the Debtors, into the marketplace.

Mr. Cleary argues that the Debtors have provided no evidence
that the Five EBITDA Numbers will provide an unfair advantage to
any of their competitors, and thus qualify as being "commercial
information."

Moreover, Mr. Cleary recounts that an unusual spike in the price
of certain of the Debtors' securities occurred after the Debtors
previewed their 5-uyear business plan to the Creditors Committee
on May 22, 2007, and the Second Lien Committee on the next day.
The trading records show that while no trades took place on May
22, a significant increase in the volume and trading price for
the Debtors' Senior Notes took place only hours after the
Debtors' previews their Business Plan.

Mr. Cleary tells the Court since May 23, numerous creditors,
including several holders of Senior Notes, have reached out to
the Creditors Committee's professionals for an explanation as to
the increase in trading price.  "At this time, no one can be
certain as to what caused the spike in trading; however, in
light of when the spike occurred, it appears that non-public
information regarding the Five EBITDA Numbers may have been
leaked into the hands of a few traders."

                     About DURA Automotive

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia -- China, Japan
and Korea.  It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.


DURA AUTOMOTIVE: Toyota Wants Decision on Leases by July 24
-----------------------------------------------------------
Prior to filing for bankruptcy, Dura Automotive Systems, Inc.,
and Toyota Motor Credit Corporation entered into certain lease
agreements, whereby Toyota leased forklifts to the Debtors.

The Leases provide that at maturity the Forklifts will be
returned to Toyota.  The Leases also require the Debtor to
maintain insurance on the Forklifts and provide Toyota with
evidence of said insurance.

Toyota asks the U.S. Court for the District of Delaware to
require the Debtors to:

  (i) decide by not later than July 24, 2007 whether it will
      assume or reject the Leases,

(ii) communicate that decision to Toyota in such a manner that
      Toyota receives actual notice of the substance of the
      Debtor's decision not later than the end of Toyota's
      business hours on the same day, and

(iii) promptly file with this Court a motion for approval of its
      Decision.

Kristi J. Doughty, Esq., at Whittington & Aulgur, in Odessa,
Delaware, tells the Court that it is appropriate for the Debtor
to make a prompt determination because Toyota will suffer
economic harm that cannot be safeguarded and the potential
injury to Toyota outweighs Debtor's interests in utilizing the
Forklifts.

Ms. Doughty explains that the Forklifts are maintenance
sensitive.  She says if regular maintenance is not performed in
accordance with Toyota's schedule of hourly usage and daily and
monthly maintenance, the Forklifts quickly depreciate in real
value and are subject to ruin.

Since the Petition Date, Toyota has been unable to inspect the
Forklifts as provided in the Leases and has not received reports
on the regular maintenance required to keep the Forklifts in
good operating condition and preserve the Forklifts value during
the term of the Leases.  The inspection, according to Ms.
Doughty, is necessary to keep the Forklifts in good operating
condition and preserve their value during the Lease.  Therefore,
she asserts, Toyota's interest is not adequately protected.  Any
interest the Debtor has in utilizing the Forklifts, she says,
cannot outweigh the potential injury to Toyota if the Debtor is
permitted to delay its decision to assume or reject the Lease.

                     About DURA Automotive

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia -- China, Japan
and Korea.  It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.


FRANSHIP WARENHANDELSGESELLSCHAFT: Claims Filing Ends Aug. 29
-------------------------------------------------------------
Creditors of FRANSHIP Warenhandelsgesellschaft mbH have until
Aug. 29 to register their claims with court-appointed insolvency
manager Eva Klein.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Sept. 19, at which time the
insolvency manager will present her first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Hall 14
         Ground Floor
         Luxemburger Strasse 101
         50939 Cologne
         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:

         Eva Klein
         Werlestrasse 38
         42289 Wuppertal
         Germany

The District Court of Cologne opened bankruptcy proceedings
against FRANSHIP Warenhandelsgesellschaft mbH on July 1.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         FRANSHIP Warenhandelsgesellschaft mbH
         Poststrasse 1
         42477 Radevormwald
         Germany


KURPARADIES BAD ORB: Claims Registration Period Ends Sept. 10
-------------------------------------------------------------
Creditors of Kurparadies Bad Orb Liegenschaftsgesellschaft mbH
have until Sept. 10 to register their claims with court-
appointed insolvency manager Katrin Bringezu.

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

The meeting of creditors will be held at:

         The District Court of Leipzig
         Hall 027
         Ground Floor
         Enforcement Court
         Bernhard Goering Strasse 64
         04275 Leipzig
         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:

         Katrin Bringezu
         Prager Strasse 34
         04317 Leipzig
         Germany
         Tel: 0341/486930
         Fax: 0341/4869393
         E-mail: leipzig@hbml.de

The District Court of Leipzig opened bankruptcy proceedings
against Kurparadies Bad Orb Liegenschaftsgesellschaft mbH on
July 16.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Kurparadies Bad Orb Liegenschaftsgesellschaft mbH
         Attn: Dr. Beng-Yin Zhu, Manager
         Leipziger Strasse 72
         04178 Leipzig
         Germany


VULCAN LTD: Fitch Rates EUR3 Million Class G Notes at BB
--------------------------------------------------------
Fitch Ratings has assigned Vulcan (European Loan Conduit No. 28)
Ltd. floating-rate notes due 2014 expected ratings.  The
transaction is a securitization of a multi-borrower pool of 15
commercial mortgage loans:

  -- EUR856 million Class A: 'AAA', Outlook Stable
  -- EUR50,000 Class X: 'AAA', Outlook Stable
  -- EUR22 million Class B: 'AAA', Outlook Stable
  -- EUR76.5 million Class C: 'AA', Outlook Stable
  -- EUR76.5 million Class D: 'A', Outlook Stable
  -- EUR45.9 million Class E: 'BBB', Outlook Stable
  -- EUR3 million Class F: 'BBB-', Outlook Stable
  -- EUR3 million Class G: 'BB', Outlook Stable

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

The expected ratings reflect the positive and negative features
of the underlying collateral and the integrity of the legal and
financial structures.  They address the timely payment of
interest on the notes and the ultimate repayment of principal by
final legal maturity in May 2017.

The loans are originated by Morgan Stanley Bank International
Limited and are secured by real estate located in Germany (eight
loans, 56% of the pool), France (six, 40%) and the Netherlands
(one, 4%).  The largest loan accounts for 35.7% of the loan pool
and is secured by nine office properties located across Germany,
with a concentration in and around Frankfurt.

The underlying loan collateral consists of 88 properties located
in Germany (41), France (43), and the Netherlands (4) with a
total market value of EUR1.656 billion.  The note issuance
represents an initial weighted average loan-to-value ratio of
66.2%, reducing to a balloon LTV of 65.5%, assuming no changes
in value, no prepayments and no defaults occurring prior to
individual loan maturities.  Payments due on the issued notes
will be funded from principal and interest payments on the
German, French and Dutch secured loans.

Interest and principal on the notes are paid quarterly in
arrears on each payment date, commencing in November 2007.
Scheduled repayment of principal will be distributed as the
loans themselves repay.  Prepayments and final repayments on the
loans will be allocated to the notes according to a "bucket"
structure.  The structure benefits from a servicer advance
facility available to cover interest shortfalls and senior
expenses with an initial balance of EUR73.6 million.


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


EUROCONNECT: Moody's Rates EUR68.3 Mln Class D Notes at (P)Ba2
--------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to notes
to be issued by EuroConnect Issuer LC 2007-1 Limited.  The
ratings assigned are:

   -- (P)Aaa to the EUR310,350,000 Class A Floating Rate Credit
      Linked Notes due 2026

   -- (P)A1 to the EUR93,100,000 Class B Floating Rate Credit
      Linked Notes due 2026

   -- (P)Baa2 to the EUR62,050,000 Class C Floating Rate Credit
      Linked Notes due 2026

   -- (P)Ba2 to the EUR68,300,000 Class D Floating Rate Credit
      Linked Notes due 2026

EUR148,950,000 Class E Floating Rate Credit Linked Notes due
2026 will also be issued but are not expected to be rated.

The provisional ratings of the notes are based upon:

   (1) An assessment of the credit quality of the initial
       underlying entities and the portfolio substitution
       guidelines;

   (2) The loss protection provided by the subordination of the
       more junior ranking classes of notes issued by
       EuroConnect 2007-1;

   (3) The protection against losses furnished by the Class E
       notes; and

   (4) The legal and structural integrity of the transaction.

EuroConnect2007-1 is a partially funded synthetic transaction
arranged by the Bayerische Hypo- und Vereinsbank AG, in which
investors are exposed to the credit risk related to a portfolio
of loans extended by HVB, Bank Austria Creditanstalt AG and
Unicredit Banca d'Impresa to medium and large companies.  The
credit risk transferred by the three banks through this
transaction is related to a total portfolio of approximately
EUR6.2 billion.  This reference pool is made up initially of 607
separate obligors, though certain obligors are related such that
there are actually 490 obligor groups represented.  Throughout
the four-year revolving period, the banks can replenish the
portfolio subject to the CDOROM test passing.

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings only represent Moody's
preliminary opinion.  Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavor
to assign definitive ratings to the Notes.  A final rating may
differ from a provisional rating.


EUROCONNECT 2007-1: S&P Puts BB Rating to Class D Notes
-------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to the credit-linked floating-rate notes to be
issued by EuroConnect Issuer LC 2007-1 Ltd., a special purpose
entity.

Through this transaction, Bayerische Hypo- und Vereinsbank AG,
UniCredit Banca D'Impresa, and Bank Austria Creditanstalt AG aim
to achieve regulatory capital relief by transferring to
investors the credit risk associated with a EUR6.2 billion
portfolio of corporate credit exposures.  Credit protection will
be bought on principal, accrued interest and external
foreclosure costs.

The transaction structure is broadly similar to those employed
in many balance-sheet transactions.  Instead of one guarantee,
there will be three separate guarantee agreements established,
which also means that under certain circumstances one or two
parts of the portfolio could be removed from the transaction.

                          Ratings List

EuroConnect Issuer LC 2007-1 Ltd.
   EUR682.75 Credit-Linked Floating-Rate Notes

                          Prelim.        Prelim. Amount
           Class          Rating           (Mln. EUR)
           -----          ------            --------
            A              AAA               310.35
            B              A+                 93.10
            C              BBB                62.05
            D              BB                 68.30
            E              NR                148.95

       NR — Not rated.


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


ALITALIA SPA: Italy Halts Stake Sale After AP Holding Pullout
-------------------------------------------------------------
The Italian government has terminated the sale process for its
39.9% stake in national carrier Alitalia S.p.A., Adrian Michaels
writes for the Financial Times.

Italy ended the sale process after AP Holding S.p.A., a
consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A.,
withdrew its bid to acquire the stake.

As reported in the TCR-Europe on July 19, 2007, AP Holding said
that after reviewing the terms and conditions of the sale, it
will not submit a binding offer for the stake.

The consortium is the latest to drop out from the bidding melee
after the team of OAO Aeroflot and Unicredit Italiano S.p.A.
left the bidding process.  A consortium of TPG Capital,
MatlinPatterson Global Advisers LLC and Mediobanca S.p.A. had
also pulled out from the race before MatlinPatterson re-entered
with its own bid.

FT had suggested that TPG Capital may re-enter the race and
regroup with MatlinPatterson for a joint bid.  Government
officials, however, revealed to FT that MatlinPatterson was no
longer involved in the bidding.

The bidders had been apprehensive of the bidding conditions set
by the Italian government and had cited these requirements as
reasons for their withdrawal.

Italian Prime Minister Romano Prodi told FT that Alitalia's sale
process was not concluded as the government expected, adding
that they are currently reviewing options to salvage the
carrier.

Though Italy has resisted bankruptcy or administrative
proceedings for Alitalia, observers suggest that it might resort
to more drastic action following the collapse of the sale
process, FT relates.

Some government ministers have suggested refreshing talks with
Alitalia's former bidders like TPG Capital.

                          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: Italy May Liquidate as Last Resort, Report Says
-------------------------------------------------------------
The Italian government pledged to exhaust all options to sell
its 39.9% stake in Alitalia S.p.A. before sending the national
carrier either into liquidation or bankruptcy, Corriere della
Sera reports citing Finance Minister Tommaso Padoa-Schioppa.

Italy terminated the sale process after AP Holding S.p.A., a
consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A.,
withdrew its bid to acquire the stake.

Italian Prime Minister Romano Prodi told the Financial Times
that Alitalia's sale process was not concluded as the government
expected, adding that they are currently reviewing options to
salvage the carrier.

Mr. Padoa-Schioppa reiterated Mr. Prodi's stand, saying that
making the airline attractive to investors has been tougher than
the government expected, Bloomberg News adds.

                             Options

Transport Minister Alessandro Bianchi said following the
collapse of the sale process, Italy may hold direct talks with
former Alitalia bidders, which include OAO Aeroflot and TPG
Capital and MatlinPatterson Global Advisers LLC, Bloomberg News
reports.

According to the report, Justice Minister Clemente Mastella
mirrored Mr. Bianchi's call for direct talks, adding that there
must be an "elimination of ties and tangles which have caused
all aspiring buyers to flee the scene."

Other options include re-nationalizing Alitalia and placing the
carrier into administration.

Should a sale remains elusive, the government may liquidate
Alitalia, Mr. Padoa-Schioppa noted.

"The government now can sell the company to anyone," Mr. Padoa-
Schioppa told Corriere della Sera.  "It's a loss-making company
in which the State can no longer inject capital."

The European Commission warned the state on July 18, 2007, that
it could no longer provide any more state aid to 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.


BANCA ITALEASE: Fitch Cuts EUR150 Mln Securities Rating to BB
-------------------------------------------------------------
Fitch Ratings has downgraded Banca Italease's Long-term Issuer
Default Rating to 'BBB-' from 'BBB+' and its Short-term IDR to
'F3' from 'F2'.

Fitch also removed the Long-term and Short-term IDRs from Rating
Watch Negative, on which they had been placed since May 4, 2007
and June 8, 2007 respectively, and assigned a Stable Outlook to
the Long-term IDR.

Italease's Individual rating has been downgraded to 'D/E' from
'C', while its Support rating was affirmed at '2'.  The bank's
EUR150 million trust preferred securities are downgraded to 'BB'
from 'BBB-', in line with Fitch's notching methodology for
issuers whose Long-term IDR is derived from institutional
support.

Italease's Individual rating reflects Fitch's expectation that
the losses arising from its derivative credit exposure will be
substantial.  The Individual rating could benefit from a
sufficient capital increase and from a sustainable business
model for its new business.

The ratings actions follow Italease's announcement that it had
mandated the Chairman and the CEO to study a capital increase to
offset potential losses arising from its credit exposure to
clients who hold derivative instruments sold by the bank.  While
the size of the potential losses has not yet been quantified by
the bank, Fitch considers it likely that the losses will be
substantial and require the bank to increase its capital to
restore it to an acceptable level.  Italease expects to announce
details on the financial impact of its derivative credit
exposure when it announces results for H107 for the parent bank,
most likely on July 27, 2007.  At the same time, the bank
expects to announce details on any capital increase, which might
include the entry of new institutional investors into the bank's
capital.

Italease's Long-term IDR has been downgraded to its rating floor
and reflects potential support from its main shareholders.  The
bank's largest shareholders are:

  -- Banco Popolare ('A'/'F1'/'B/C'/'2')
  -- Banca Popolare dell'Emilia Romagna ('A-'/'F2'/'B/C'/'3')
  -- Banca Popolare di Sondrio ('A'/'F1'/'B'/'3')
  -- Banca Antonveneta ('A+ RWP'/'F1 RWP'/'B/C'/'1')
  -- Gruppo Banca Popolare di Milano ('A'/'F1'/'B/C'/'3') and
  -- Insurer Gruppo Reale Mutua.

The insurer, together with Banco Popolare forms a pact
comprising 40.29% of Italease's shares.  In Fitch's opinion,
there is a high probability that Italease's shareholders would
provide support to the bank in case of need, and the pact
members have confirmed their strategic commitment to Italease in
early June.  Fitch expects that support would be extended until
Italease's situation had stabilized.


PIAGGIO & C: Moody's Lifts Rating to Ba2 on Improved Performance
----------------------------------------------------------------
Moody's Investors Service upgraded Piaggio & C S.p.A. Corporate
Family Rating to Ba2 from Ba3 and upgraded the senior unsecured
rating on the notes issued by Piaggio Finance S.A. to Ba2 (LGD4,
50%) from Ba3.

The rating actions recognize a consolidation of the company's
key credit metrics in the Ba rating category and the prospects
for further improvement going forward.  The outlook on all
ratings is stable.

The rating upgrade reflects the progress made by the company
since ratings were last upgraded in May 2006.  According to
Paolo Leschiutta, lead analyst for Piaggio at Moody's Investors
Service "Over the last financial year the company has continued
to improve its operating performance and strong cash flow
generation resulted in sustained solid key credit metrics,
although given the seasonality and volatility of the business,
due to fierce competition and the dependence on new product
launches, the company has to maintain stronger credit metrics
than the rating category would imply".  "Furthermore, the
company is expected to benefit from the growth in Asian markets
and the investments planned in the region and the positive
momentum in its core business thanks to the recovery of Aprilia
and Moto Guzzi and the innovation capability that the Group has
demonstrated since new management took over the company", Paolo
Leschiutta added.

During 2006 the company reported growth in revenues of 10.7% and
operating margins, on an EBITA basis, of 8.6% from 6.9% the year
before.  Debt reduction to approximately EUR399 million at FYE
Dec. 2006 compared to EUR464 million at FYE December 2005
allowed for a reduction in financial leverage, measured as Debt
to EBITDA (adjusted for operating leases and pension
liabilities) to 3.0x and consolidating cash flow coverage
measures with RCF to Net Debt at 18.1% (in line with 2005
results).

Moody's also notes that further improvement in operating
margins, a sustained reduction in financial leverage measured as
Debt over EBITDA towards 2x and tight control on working capital
management and capital expenditure could lead to further upgrade
of the ratings.  In this context, Moody's notes the management's
commitment to apply excess cash to reduce overall indebtedness.
Conversely, the rating would come under negative pressure if
competition within the industry -- particularly from low-cost
manufacturers -- significantly erodes the company's cash
generation and operating margins and this resulted in RCF to Net
Debt dropping to low double digit figures and deterioration in
financial leverage.

Ratings affected by the action are:

   -- Corporate Family Rating upgraded to Ba2 from Ba3;

   -- Senior Unsecured rating on the EUR150 million notes due
      2012 issued by Piaggio Finance S.A. upgraded to Ba2
     (LGD4, 50%) from Ba3.

The outlook on the ratings is stable.

Based in Italy, Piaggio & C S.p.A. is a leading European
manufacturer of scooters, motorbikes and light vehicles for
transportation.  For the FYE December 2006, the company reported
EUR1,607 million consolidated net sales and EUR114 million
operating profit.  During first quarter 2007 the company
reported EUR394.2 million and EUR25.6 million of net sales and
profit respectively.


SHAW GROUP: Expects to File Restated Financials on July 31
----------------------------------------------------------
The Shaw Group Inc. plans to file its first quarter fiscal 2007
amended Quarterly Report on Form 10-Q/A for the three months
ended Nov. 30, 2006, and its second quarter fiscal 2007 Form 10-
Q for the three months ended Feb. 28, 2007 by July 31, 2007.

Shaw expects its restated first quarter fiscal 2007 results to
be a loss of approximately US$23.8 million after taxes, compared
to the previously reported loss of US$20.3 million after taxes.
The restated loss includes additional charges of approximately
US$6.5 million, US$3.5 million after taxes, for the increase in
estimated costs of a domestic chemicals industry project,
slightly below the previously estimated range.

For second quarter fiscal 2007, Shaw estimates its financial
results to be a net loss of US$74 million after taxes.  The
results primarily consisted of net charges of approximately
US$16 million after taxes for Shaw's investment in Westinghouse
segment; charges of approximately US$24 million after taxes for
the impairment of and charges related to Shaw's investment in
certain military housing privatization projects; plus a US$10
million accrual for possible additional tax liabilities.

Second quarter results also included charges totaling
approximately US$21 million after taxes for the settlement of
claims with owners and vendors and final estimates of revenues
and costs for two major domestic EPC projects, which resolves
most major outstanding claims at May 31, 2007.  The balance of
charges for the quarter were related to a number of increased
cost accruals on projects, adjustments to revenue estimates,
goodwill impairments, reversal of certain incentive fees,
valuations of other assets, and other items.

Revenues for the second quarter were approximately US$1.2
billion and approximately US$2.5 billion for the six months
ended Feb. 28, 2007.  Operating cash flow for the second quarter
was approximately US$23 million and for the six month period was
approximately US$154 million.  Backlog at Feb. 28, 2007 was
approximately US$11.3 billion.

Shaw also reported that it expects to complete preparation of
its third quarter fiscal 2007 financial results and file its
third quarter Form 10-Q for the three months ended May 31, 2007
by Aug. 15, 2007.  Shaw estimates its third quarter fiscal 2007
net income to be within a range of US$0.30 to US$0.35 per
diluted share, which includes losses of approximately US$4
million after taxes or US$0.05 per share for Shaw's investment
in Westinghouse segment.  These estimates include an assumed
effective tax rate of approximately 40% and a preliminary
estimate for the value of the embedded derivative component of
the put option for Shaw's investment in Westinghouse.

Shaw's backlog for the quarter ending May 31, 2007 was
approximately US$13.3 billion, another record backlog for Shaw,
reflecting continued strength in the power generation and
chemicals markets.  Estimated revenues were US$1.6 billion for
third quarter fiscal 2007.  Operating cash flow for the third
quarter is expected to be approximately US$133 million, bringing
operating cash flow for the nine months ended May 31, 2007 to
nearly US$300 million.

"Although it is taking longer than we had anticipated to get our
financial reporting filings up-to-date, we continue to be
committed to providing fully transparent, timely and accurate
financial information, and we are working diligently to file the
quarterly reports for fiscal 2007 as soon as possible," Dirk J.
Wild, senior vice president, chief accounting officer and
interim chief financial officer of Shaw, said.

"As we continue to experience unprecedented growth, we are all
working extremely hard to improve our financial reporting
processes," J.M. Bernhard, Jr., chairman, president, and chief
executive officer of Shaw, said.  "We believe we have taken
appropriate steps to address concerns regarding our project
estimating process and remedial actions are underway.  As for
the second quarter, while the results are disappointing, the
loss reflects the resolution of a number of open matters, which
will allow us to focus our attention on the historic amount of
work we see ahead."

"Significant projects recently booked by our power and chemicals
groups have resulted in another record backlog of US$13.3
billion for the quarter ending May 31, 2007," Mr. Bernhard
continued.  "We continued to have strong cash collections in the
third quarter, and now have nearly $300 million in operating
cash flow for the nine-month period.  With the continued
strength in our core markets, we look forward to reporting
improved operating results in the future."

Shaw also reported that it expects to obtain appropriate waivers
under its bank credit agreement with respect to covenants
related to the delinquent SEC filings.

Shaw has not completed its final review or final financial
statements and SEC filings have not been made as of this date
for the first, second and third quarters of fiscal 2007.

Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers.  It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries.  The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution.  In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.

                          *     *     *

Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006.  S&P said the outlook is stable.

In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.


SHAW GROUP: Brings In Jeffrey Merrifield as VP-Power Group
----------------------------------------------------------
The Shaw Group Inc. has named Jeffrey S. Merrifield as senior
vice president in the company's Power Group.  He will relocate
to Shaw's Power Group headquarters in Charlotte, North Carolina,
and report directly to Richard Gill, president of the Power
Group.

Mr. Merrifield formerly was a commissioner on the United States
Nuclear Regulatory Committee from October 1998 through June
2007.  Initially appointed by President Clinton and reappointed
by President Bush, he served as acting NRC chairman during the
August 2003 blackout when nine nuclear reactors underwent
emergency shutdowns, as well as during an emergency situation
that led to the first evacuation of an NRC licensed site since
Three Mile Island.

Additionally, Mr. Merrifield led the rewriting of the NRC
Strategic Plan for Fiscal Years 2004-2009, including crafting
the first-ever NRC vision statement and he headed the U.S.
delegation to the Third Convention on Nuclear Safety at the
International Atomic Energy Agency.

Before joining the NRC, Mr. Merrifield served as counsel and
staff director to the U.S. Senate Subcommittee on Superfund,
Waste Control and Risk Assessment from 1995 to 1998.  He was
also an associate at McKenna and Cuneo and served on the
legislative staffs of Senators Robert C. Smith (R-NH) and Gordon
Humphrey (R-NH).

J.M. Bernhard, Jr., chairman, president and chief executive
officer of Shaw, said, "Mr. Merrifield brings valuable
regulatory and legislative experience to The Shaw Group as we
expand our ability to engineer, design and construct advanced
nuclear power generating facilities using the AP1000 technology
that is environmentally advantageous in regards to greenhouse
gas emissions.  We welcome Jeff to Shaw and believe his guidance
will help our Power Group business answer the nation's need for
additional electrical capacity as utilities retire older
generation plants and pursue more environmentally friendly
options."

Mr. Merrifield received his Bachelor of Arts degree from Tufts
University in 1985 and his Juris Doctor degree from the
Georgetown University Law Center in 1992.  He is a member of the
bar of both New Hampshire and the District of Columbia.

Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers.  It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries.  The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution.  In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Chile, China, Malaysia, the United
Kingdom and Venezuela, among others.

                       *     *     *

Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006.  S&P said the outlook is stable.

In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.


SCHEFENACKER: Completes EUR500M Restructuring; Exits Chapter 15
---------------------------------------------------------------
Schefenacker Plc completed a EUR500 million (US$680 million)
restructuring in London last month after it obtained an order
from the U.S. Bankruptcy Court for the Southern District of New
York recognizing the UK proceedings as the main “foreign”
proceedings under Chapter 15 of the U.S. Bankruptcy Code.

Company lawyers say the restructuring would have been impossible
if Schefenacker had not moved its headquarters to England and
filed for bankruptcy in London because its previous home,
Germany, had a more stringent insolvency law, Bloomberg relates.
As a result, Schefenacker was able to overcome the objections of
a small group of bondholders that might have been able to force
liquidation in Germany, Bloomberg observes.

The biggest plant for Schefenacker was already in Portchester,
England, and its only tie to Germany was the holding company's
offices.  Fewer than 10 percent of Schefenacker's core assets
were located in Germany and the London court accepted that most
of its administration had always been done in the U.K.,
Bloomberg states.

                        About Schefenacker

Headquartered in Hampshire, United Kingdom, Schefenacker Plc
(fka Schefenacker AG) -- http://www.schefenacker.com/--
develops, produces and supplies rear vision systems, lighting
systems and sound systems to the world's automotive
manufacturers.  The company employs 7,900 people and operates 27
sites in Australia, China, France, Hungary, India, Japan, Korea,
Mexico, Romania, Slovenia, Spain, the United Kingdom, and the
U.S.A.

Schefenacker filed a Chapter 15 Petition in the U.S. Bankruptcy
Court for the Southern District of New York on May 15, 2007, to
protect assets in America and restructure high-yield debt.
The company estimated total assets and total debts at more than
US$100 Million as of the filing date.  The Court closed the
chapter 15 case on June 19, 2007.

                          *     *     *

As reported in the TCR-Europe on Feb. 15, Moody's Investors
Service downgraded the Corporate Family Rating of Schefenacker
AG to Ca from Caa2, the rating on the company's senior
subordinated notes to C from Ca and the rating for the
senior secured facility from Caa1 to Caa2.  Moody's said the
outlook has been changed to stable.

In December 2006, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on German automotive parts
supplier Schefenacker AG to 'SD' (selective default) from 'CCC'.

At the same time, the rating was removed from CreditWatch, where
it had been placed with negative implications on Sept. 12, 2006,
following the company's announcement that it had appointed
financial-restructuring experts.


S&P said the 'C' long-term debt rating on the Schefenacker's
EUR200-million subordinated notes maturing in 2014 remains on
CreditWatch with negative implications.


TISCALI SPA: Mulls Acquisition for U.K. Expansion
-------------------------------------------------
Tiscali S.p.A. may seek more acquisitions in the United Kingdom
following its purchase of Pipex Communications Plc's broadband
and voice unit, Chiara Remondini and Elena Distaso of Bloomberg
News reports citing Tiscali CEO Tommaso Pompei.

"Tiscali will consider all possible opportunities that may
create value as long as they don't affect our 2008 targets,"
Mr. Pompei was quoted by Bloomberg News as saying.  "We're
working to grow significantly in Italy and the U.K.,"

As reported in the TCR-Europe on July 18, 2007, Tiscali and
Pipex entered into an agreement for the acquisition of the
broadband and voice division of Pipex by Tiscali U.K. Holdings
Ltd.  The enterprise value agreed for the acquisition is GBP210
million.

Tiscali is currently expanding its operations in Italy and the
U.K., where it has a large customer base.

"The only country outside Italy where Tiscali has been a success
story is the U.K.," said Alessandro Frigerio of RMJ Sgr told
Bloomberg News.  "It's a market they know well and it's positive
that they've decided to invest in it."

Tiscali has confirmed its forecast of a net profit and a free
cash flow in 2008.

                          About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the
country.  The group also operates in other European countries,
serving more than seven million subscribers, of which over 1.5
million are broadband users.

As reported in the TCR-Europe on March 22, 2007, the company
registered EUR136.16 million in net losses on EUR678.48 million
in net revenues for the full year ended Dec. 31, 2006, compared
with EUR12.81 million net losses on EUR530.85 billion in
revenues for full year 2005.

As reported in the TCR-Europe on Oct. 13, 2006, Tiscali's Board
of Directors approved a three-year plan for 2007-2010, which
calls for the concentration of its core business in Italy and in
the United Kingdom.

                            *   *   *

As reported in the TCR-Europe on June 27, 2007, Fitch Ratings
has upgraded Italy-based Tiscali S.p.A.'s Long-term Issuer
Default rating to 'B-' from 'CCC' and removed it from Rating
Watch Positive.  Fitch said a stable outlook is assigned.


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


AKSUMUNAY LLP: Proof of Claim Deadline Slated for Aug. 24
---------------------------------------------------------
The Tax Committee of Almaty has declared LLP AKSUMUNAY (RNN
531400003244) insolvent.

Creditors have until Aug. 24 to submit written proofs of claims
to:

         The Tax Committee of Almaty
         Room 208
         Jangusurov Str. 113a
         Taldykorgan
         Almaty
         Kazakhstan
         Tel: 8 (3282) 24-19-77


BAYAL LLP: Creditors Must File Claims Aug. 24
---------------------------------------------
The Tax Committee of Almaty has declared LLP Bayal (RNN
092200002633) insolvent.

Creditors have until Aug. 24 to submit written proofs of claims
to:

         The Tax Committee of Almaty
         Room 208
         Jangusurov Str. 113a
         Taldykorgan
         Almaty
         Kazakhstan
         Tel: 8 (3282) 24-19-77


CONSULTING CONSTRUCTION+: Claims Filing Period Ends Aug. 22
-----------------------------------------------------------
LLP Consulting Construction+ has declared insolvency.  Creditors
have until Aug. 22 to submit written proofs of claims to:

         LLP Consulting Construction+
         Zenkov Str. 94/29-12
         Bogenbai batyr
         Almaty
         Kazakhstan


EDIL KURYLYS: Creditors' Claims Due on Aug. 22
----------------------------------------------
LLP Construction Company Edil Kurylys has declared insolvency.
Creditors have until Aug. 22 to submit written proofs of claims
to:

         LLP Construction Company Edil Kurylys
         Gagarin Str. 325a
         Semipalatinsk
         East Kazakhstan
         Kazakhstan


INTEGRATION LLP: Claims Registration Ends Aug. 24
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Integration insolvent.

Creditors have until Aug. 24 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Room 228
         Auelbekov Str. 139a
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (3162) 25-79-32


KAZAKHTELECOM JSC: Nikolai Dmitrievich Joins Board of Directors
---------------------------------------------------------------
The general shareholders' meeting of JSC Kazakhtelecom has
elected Klinchev Nikolai Dmitrievich as new member of its board
of directors.

Shareholders also approved the audited annual financial
statement of JSC Kazakhtelecom for 2006, prepared in accordance
with the International Financial Reporting Standards (IFRS).

Consolidated revenue of JSC Kazakhtelecom for 2006, pursuant to
the IFRS, made up KZT35.26 trillion.  The amount of dividends
payment on ordinary and preferred shares for 2006 made up more
than KZT6.17 trillion.

Shareholders approved the dividends payment for 2006 on ordinary
voting shares in amount of KZT5.95 trillion, on preferred shares
KZT219.66 billion.

The amount of dividends payment for one ordinary share made up
KZT544,79, for one preferred share.  It has been decided that
the remaining part of the net revenue in amount of KZT29,089
million would be directed at implementing the Company's
investment projects.

The shareholders also approved the changes and amendments to the
JSC Kazakhtelecom's Charter.  The new wording of the Charter has
been drawn up to take into account the changes to the Law of RK
on joint stock companies and aimed at protecting interests and
rights of the Company's shareholders.

JSC Kazakhtelecom's Board of directors currently comprised of:

   1) Akhabaev Beibit Adikhanovich, Chairman
   2) Dostiyarov Askar Abaevich, Member
   3) Esekeev Kuanyshbek Bakhytbekovich, Member
   4) Zhumagaliev Askar Kuanyshevich, Member
   5) Klinchev Nikolai Dmitrievich, Member
   6) Lim Toon, Member
   7) Medelbekova Chaken Akhmetbekovna, Member
   8) Michael P. Maly, Member
   9) Nurieva AIgul Maratovna, Member
  10) Okaev Ermek Kabievich, Member
  11) Popov Vladimir Guennadievich, Member

                     About Kazakhtelecom

Headquartered in Astana, Kazakhstan, JSC Kazakhtelecom --
http://www.telecom.kz/-- provides a wide range of
telecommunication services that include traditional telephony
and telegraph, data communication and Internet access,
intelligent and satellite networks and many others.
Kazakhtelecom also maintains close cooperation with 154 overseas
operators and 23 operators in the CIS and Baltic states,
ensuring communication with more than 230 countries across the
world.


KAZAKHTELECOM JSC: S&P Revises Outlook to Stable on Pole Post
-------------------------------------------------------------
Standard & Poor's Ratings Services has confirmed the long-term
credit rating 'BB' of Kazakhstani telecommunication operator JSC
Kazakhtelecom.

According to the agency’s forecasts, Company’s rating will be
changed to 'stable'.

Agency’s analysts think that strengthening of Company’s rating
is due to the “strengthening of JSC Kazakhtelecom’s business
position -- it remains a leader in the selected market segments,
-- significant increase of quality of Company’s network and
positive dynamics of Kazakhstan’s economy”.

"Immature market structure, fluctuating regulative regime of
Kazakhstan’s telecommunication industry, liberalization of long-
distant communication market and strengthening of competition
have an adverse influence on the level of JSC Kazakhtelecom’s
rating," said Lorenzo Slyusarev, credit analysts of Standard &
Poor's.

"We expect that improvement of Company’s financial and economic
indicators, including competitive advantages connected with
availability of modern fiber-optic network covering the whole
territory of the republic, as well as acceptable level of
financial risks allow overcoming of Company’s difficulties
resulted from restructuring of telecommunication market and its
regulative base, as well as strengthening of competition," he
emphasized.

S&P expects that JSC Kazakhtelecom will carefully consider the
issues on potential investments in formation of own mobile
business, not worsening dramatically the indicators of credit
solvency.

"Maintenance of liquidity is the main aim of this Company. We
think that in near future the company will successfully solve
issues related to refinancing.  Nevertheless, JSC
Kazakhtelecom’s failure to improve the level of liquidity by
minimization of the share of short-term liabilities in the debt
structure (or delaying of this process) can have an adverse
effect on company’s rating”, emphasized in the statement.

According to this statement the company’s short-term liability
as of Dec. 31, 2006 has exceeded US$276 million.

State block of JSC Kazakhtelecom’s shares is owned by JSC
Kazakhstan State Assets Management Holding “Samruk” founded in
January of the last year for effective management of state-owned
shares in several major Kazakhstani companies.

As it is well known, at present only Altel (JSC Kazakhtelecom’s
subsidiary with trademarks Dalacom and PAThWORD) provides CDMA
mobile services.  Moreover, there are three GSM mobile operators
in Kazakhstan: GSM Kazakhstan (with trademarks K'cell and Activ,
its shareholders are Finnish-Swedish-Turkish company FinTur and
JSC Kazakhtelecom), Kar-Tel (with the trademark Beeline
controlled by Russian Vympelcom) and JSC Kazakhtelecom’s
subsidiary Mobile Telecom Service (provides services under the
trademark NEO).


MUNAY TAU: Proof of Claim Deadline Slated for Aug. 24
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Munay Tau insolvent.

Creditors have until Aug. 24 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Office 26
         Djandosov Str. 24
         Almaty
         Kazakhstan
         Tel: 8 (3272) 74-10-91


STANDART LLP: Creditors Must File Claims Aug. 22
------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Standart insolvent.

Creditors have until Aug. 22 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Micro District 4, 1-89
         Taldykorgan
         Almaty
         Kazakhstan
         Tel: 8 (3282) 25-55-26


TRADE MARK CONSULTING: Claims Filing Period Ends Aug. 24
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau has
declared LLP Trade Mark Consulting insolvent.

Creditors have until Aug. 24 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Mangistau
         Building Of Auto Station
         Room 11
         Micro District 28
         Aktau
         Mangistau
         Kazakhstan
         Tel: 8 (3292) 41-15-89


VOSTOK-95 LLP: Creditors' Claims Due on Aug. 24
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Vostok-95 insolvent.

Creditors have until Aug. 24 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Room 228
         Auelbekov Str. 139a
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (3162) 25-79-32


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


WESPER LLC: Creditors Must File Claims by August 22
---------------------------------------------------
LLC Wesper has declared insolvency.  Creditors have until
Aug. 22 to submit written proofs of claim to:

         LLC Wesper
         Kojemberdiyev Ave. 98-31
         Karabalta
         Chui
         Kyrygzstan
         Tel: 8 (+996 3133) 3-31-79


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


CRC BREEZE FINANCE: S&P Rates EUR50 Million Class B Notes at BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BBB' rating to
the EUR300 million class A senior secured amortizing notes due
in 2026, and a 'BB+' rating to the EUR50 million class B
subordinated notes, due in 2016, issued by CRC Breeze Finance
S.A.  The outlook is stable.

In addition, Standard & Poor's revised the recovery rating to
'1' from a preliminary recovery rating of '2' to the class A
notes.  The recovery rating of '1' indicates our expectation of
substantial recovery of principal (in the range of 90 to 100%)
in the event of a payment default.

Breeze Finance, a Luxembourg-based special-purpose vehicle, used
the proceeds to make a loan to Breeze Two Energy GmbH & Co. KG
and Eoliennes Suroit SNC.  Breeze Two is a German limited
partnership company and Eoliennes Suroit is a French unlimited
liability partnership.  Each have been formed for the purpose of
acquiring, constructing, owning, and operating a portfolio of 39
wind farms with a nameplate capacity of 305 megawatts in Germany
(Breeze Two) and 27 MW capacity in France (Eoliennes Suroit).

"The key support for the debt is provided through the favorable
regulatory regimes in Germany and in France, which provides for
long-term off-take agreements and fixed off-take prices," said
Standard & Poor's credit analyst Ralf Etzelmueller.  "The key
weakness is exposure to wind as a fuel source that cannot be
controlled and can fluctuate substantially over time."

Breeze Two acquired all the wind parks from five different
project developers, ABO Wind AG, Energiequelle GmbH, juwi GmbH,
MFG Management- und Finanzberatung AG, and voltwerk AG.

At June 30, 2007, more than 95% of the wind farms were
completed.  The last 5.6 MW wind farm is expected to become
operational in the first quarter 2008, which is a long way
behind the original schedule due to change of the turbine
supplier owing to delivery problems.  However, the impact on
revenues is expected to be moderate due to compensation and
adjustment mechanisms in place in case of delays.

Overall, the performance for the Breeze Two wind farm portfolio
in 2006 was better than projected under the p-90 base case
scenario, driven mainly by stronger-than-expected wind yields in
the second half of 2006.  Above-average wind conditions have
been prevailing in 2007 as well.

All parks are run by the respective developer and have entered
into long-term power off-take agreements with set prices
determined by law and regulation.  The off-take agreements for
the French wind farms are shorter than the term of the debt by
five years.  The proceeds of the bonds were used to fund a six-
month senior debt service reserve account, a three-month junior
DSRA, and to pay for transaction costs.

Ultimately, bondholders rely on the performance of the wind
farms and structural features that allow Breeze Two and
Eoliennes Suroit to pass on these funds to Breeze Finance.  The
portfolio benefits from full cross-collateralization.

"The stable outlook reflects the good wind conditions prevailing
so far, the electricity and revenue generation above base case
assumptions, and the performances of all turbines in the
portfolio in line with expectations," said Mr. Etzelmueller.  A
downgrade could occur if electricity generation is consistently
below forecasts, or if regulatory support were to change.  A
rating upgrade, which is unlikely in the near term, would
require a sustainable out-performance of the base case.


EUROCONNECT LTD: Fitch Rates EUR68.3 Mln Class D Notes at BB
------------------------------------------------------------
Fitch has assigned expected ratings to EUR533.8 million of
EuroConnect Issuer LC 2007 1 Ltd.'s upcoming issue of
EUR682.75 billion floating-rate notes due 2028:

  -- EUR310.35 million Class A secured floating-rate notes:
     'AAA'

  -- EUR93.1 million Class B secured floating-rate notes: 'A+'

  -- EUR62.05 million Class C secured floating-rate notes: 'BBB'

  -- EUR68.3 million Class D secured floating-rate notes: 'BB'

The Class E notes, totaling EUR148.95 million, 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 collateralized
debt obligation referencing an international portfolio totaling
as of the cut-off date EUR6.2 billion of senior payment
obligations of large corporate entities arising from loans,
guarantees and letters of credit.

The ratings of the notes are based on the available credit
enhancement, the credit quality of the combined 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 6%, is provided by the Class B notes (1.5%), the
Class C notes (1%), the Class D notes (1.1%), and the unrated
Class E notes (2.4%).

The reference portfolio comprises three sub-portfolios
originated or acquired by Bayerische Hypo- und Vereinsbank AG
(rated 'A'/Outlook Positive/'F1'), Bank Austria Creditanstalt AG
(rated 'A'/Outlook Positive/'F1') and UniCredit Banca d'Impresa.
At closing, HVB, BA-CA and UBI will each enter into a junior
loss guarantee with the issuer and may, furthermore, enter into
a senior loss guarantee for the reimbursement of realized losses
on the respective originator's reference portfolio, each a sub-
portfolio.  The issuer, in turn, will seek credit protection
against realized losses from the EUR6.208 billion combined
reference portfolio for up to EUR682.75 million by issuing the
notes.

The transaction features a four-year replenishment period,
subject to the eligibility and replenishment criteria and
limited by a master amortization schedule providing for an even
amortization amount of 1.5% per quarter of the combined
reference portfolio's initial notional balance during the
replenishment period starting on the second note payment date.
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.

EuroConnect Issuer LC 2007-1 Ltd. is a bankruptcy-remote special
purpose vehicle incorporated in Ireland and domiciled in Dublin.


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


BAUSCH & LOMB: Files Prelim Proxy Statement for Pending Merger
--------------------------------------------------------------
Bausch & Lomb has filed a preliminary proxy statement with the
U.S. Securities and Exchange Commission for a special meeting of
shareholders scheduled to consider Bausch & Lomb's pending
merger agreement with affiliates of Warburg Pincus.

In May 2007, Bausch & Lomb entered into a definitive merger
agreement with Warburg Pincus, pursuant to which Warburg Pincus
agreed to acquire 100% of the outstanding shares of Bausch &
Lomb for US$65.00 per share in cash.

The date of the special meeting of shareholders and the record
date for the meeting will be specified in a definitive proxy
statement to be mailed to shareholders following SEC's review of
the preliminary proxy statement.

                            AMO Offer

On July 5, 2007, Bausch & Lomb disclosed that it is engaged in
discussions with Advanced Medical Optics regarding AMO's
proposal to acquire 100% of the outstanding shares of Bausch &
Lomb in a merger in which Bausch & Lomb's shareholders would
receive, per share of Bausch & Lomb stock, US$45.00 in cash and
US$30.00 in AMO stock.

The Bausch & Lomb Board of Directors, following the
recommendation of a Special Committee composed entirely of
independent directors, has determined that the AMO proposal is
bona fide and is reasonably likely to result in a superior
proposal, as defined in the Warburg Pincus merger agreement.

AMO has been designated an "excluded party" as defined in the
Warburg Pincus merger agreement.  By designating AMO an excluded
party, Bausch & Lomb is permitted, subject to certain
conditions, to continue negotiating with AMO with respect to the
AMO proposal despite the end of the "go shop" period, so long as
AMO remains an "excluded party" pursuant to the Warburg Pincus
merger agreement.

Bausch & Lomb cautioned that the discussions with AMO may be
terminated at any time and that there can be no assurances as to
whether the AMO proposal will ultimately result in a transaction
with Bausch & Lomb.

Pending further discussions with AMO, Bausch & Lomb's Board of
Directors, following the recommendation of the Special Committee
of the Board of Directors, has not changed, and has reaffirmed,
its recommendation of Bausch & Lomb's pending merger with
affiliates of Warburg Pincus pursuant to the Warburg Pincus
Agreement.

                          FTC Approval

Reuters relates in a July 10, 2007, report that affiliates of
Warburg Pincus have received U.S. antitrust approval to acquire
Bausch & Lomb.

Citing the U.S. Federal Trade Commission, Reuters says antitrust
authorities completed their review of the deal without taking
any action to block it.

                       About Bausch & Lomb

Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:
BOL) -- http://www.bausch.com/-- develops, manufactures, and
markets eye health products, including contact lenses, contact
lens care solutions, and ophthalmic surgical and pharmaceutical
products.  The company is organized into three geographic
segments: the Americas; Europe, Middle East, and Africa; and
Asia (including operations in India, Australia, China, Hong
Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan
and Thailand).  In Latin America, the company has operations in
Brazil and Mexico.  In Europe, the company maintains operations
in Austria, Germany, the Netherlands, Spain, and the United
Kingdom.

                         *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
the Warburg Pincus Deal prompted Standard & Poor's Ratings
Services to lower its ratings on Bausch & Lomb and placed them
on CreditWatch with negative implications.  Among others, S&P
lowered the company's corporate credit rating to 'BB+' from
'BBB'.

Additionally, Moody's Investors Service said it will continue
its review of Bausch & Lomb's ratings for possible downgrade,
including the company's Ba1 Corporate Family rating.

Furthermore, Fitch maintained its Negative Rating Watch on
Bausch & Lomb emphasizing that the transaction would
significantly increase leverage and likely result in a multiple-
notch downgrade.

Fitch also warns that the transaction would result in an Issuer
Default Rating of no higher than 'BB-'.


BIOMET INC: LVB Acquisition Completes Tender Offer for Shares
-------------------------------------------------------------
LVB Acquisition LLC and LVB Acquisition Merger Sub Inc.
completed a tender offer for all outstanding common shares of
Biomet Inc.

LVB Acquisition LLC and LVB Acquisition Merger Sub Inc. are
indirectly owned by investment partnerships directly or
indirectly advised or managed by The Blackstone Group, Goldman,
Sachs & Co., Kohlberg Kravis Roberts & Co. and TPG.  The tender
offer expired, as scheduled, at 12 midnight, New York City time,
on Wednesday, July 11, 2007.

The depositary for the offer has advised that, as of the
expiration of the offer, a total of about 203,573,642 Biomet
shares were validly tendered and not withdrawn in the offer,
representing about 82.85% of Biomet's outstanding shares.  LVB
Acquisition Merger Sub Inc. has accepted for payment all Biomet
shares that were validly tendered in the offer.

Pursuant to the terms of the previously announced merger
agreement, LVB Acquisition LLC and LVB Acquisition Merger Sub
Inc. expect to effect a merger of LVB Acquisition Merger Sub
Inc. with and into Biomet.

In the merger, LVB Acquisition LLC and LVB Acquisition Merger
Sub Inc. will acquire all other Biomet shares at the same US$46
per share price, without interest and less any required
withholding taxes, that was paid in the tender offer.

As a result of the merger, Biomet will become a wholly-owned
subsidiary of LVB Acquisition LLC.  LVB Acquisition LLC and LVB
Acquisition Merger Sub Inc. intend to complete the merger as
soon as practicable following the satisfaction of the conditions
in their merger agreement with Biomet.

                   About The Blackstone Group

The Blackstone Group -- http://www.blackstone.com/-- is a
global alternative asset manager and provider of financial
advisory services.  The Blackstone Group is an independent
alternative asset managers in the world. Its alternative asset
management businesses include the management of corporate
private equity funds, real estate opportunity funds, funds of
hedge funds, mezzanine funds, senior debt funds, proprietary
hedge funds and closed-end mutual funds.  The Blackstone Group
also provides various financial advisory services, including
mergers and acquisitions advisory, restructuring and
reorganization advisory and fund placement services.

                    About Goldman Sachs & Co.

Founded in 1869, Goldman Sachs is one of the oldest and largest
investment banking firms.  Goldman Sachs is also a global leader
in private corporate equity and mezzanine investing.
Established in 1991, the GS Capital Partners Funds are part of
the firm's Principal Investment Area in the Merchant Banking
Division, which has formed 13 investment vehicles aggregating
US$56 billion of capital to date.

                   About Kohlberg Kravis Roberts

Kohlberg Kravis Roberts & Co. (KKR) is one of the world's oldest
and most experienced private equity firms specializing in
management buyouts.  Founded in 1976, it has offices in New
York, Menlo Park, London, Paris, Hong Kong, and Tokyo.
Throughout its history, KKR has brought a long-term investment
approach to its portfolio companies, focusing on working in
partnership with management teams and investing for future
competitiveness and growth. Over the past 30 years, KKR has
completed over 150 transactions with a total value of over
US$294 billion.

                            About TPG

TPG -- http://www.tpg.com/-- is a private investment
partnership that was founded in 1992 and currently has more than
US$30 billion of assets under management.  With offices in San
Francisco, London, Hong Kong, New York, Minneapolis, Fort Worth,
Melbourne, Menlo Park, Moscow, Mumbai, Shanghai, Singapore and
Tokyo, TPG has extensive experience with global public and
private investments executed through leveraged buyouts,
recapitalizations, spinouts, joint ventures and restructurings.
TPG's investments span a variety of industries including
healthcare, retail/consumer, airlines, media and communications,
industrials, technology and financial services.

                          About Biomet

Biomet Inc. and its subsidiaries design, manufacture, and market
products used primarily by musculoskeletal medical specialists
in both surgical and non-surgical therapy.

Headquartered in Warsaw, Indiana, Biomet and its subsidiaries
currently distribute products in more than 100 countries,
including the Netherlands, Argentina and Korea.

                          *     *     *

The Troubled Company Reporter – Europe reported on June 26,
2007, that Moody's Investors Service placed all of the
provisional ratings of Biomet, Inc. under review for possible
downgrade following the announcement that a private equity
consortium has increased the price of its offer to purchase
the company to US$11.4 billion from about US$10.9 billion.

Ratings placed under review for possible downgrade:

    * Biomet, Inc.

   -- Corporate family rating at (P)B2;
   -- Asset backed revolver at (P)Ba2, (LGD2, 14%);
   -- Secured cash draw revolver at (P)B1, (LGD3, 36%);
   -- Secured term loan at (P)B1, (LGD3, 36%);
   -- Unsecured senior notes at (P)B3, (LGD4, 63%);
   -- Unsecured PIK option notes at (P)B3, (LGD4, 63%);
   -- Unsecured subordinated notes at (P)Caa1, (LGD6, 93%);
   -- PDR at B2;
   -- SGL-2.


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


INTERNATIONAL PAPER: To Buy CMCP Shares for US$40 Million
---------------------------------------------------------
International Paper Co. has signed an agreement with Cofipac to
purchase the remaining shares of its joint venture Compagnie
Marocaine des Cartons et des Papiers (CMCP) in Morocco for
approximately US$40 million.  As a result, CMCP will be wholly
owned by International Paper.  Completion of the transaction is
subject to normal closing conditions and is expected before the
end of the third quarter.

In October 2005, International Paper acquired approximately 65
percent of CMCP shares to further grow its corrugated box
business and to strengthen its position in the fruit and
vegetable segment in the Mediterranean region.

Morocco remains an attractive market for International Paper and
the company intends to continue investing in its packaging
business there.  "CMCP is a strong business with good prospects
for the future in both industrial and fruit and vegetable
segments," said Paul Brown, vice president of International
Paper's European corrugated container business.

"Morocco has a fast-growing economy with a rapidly developing
consumer base that is expected to drive box demand growth.  In
addition, Morocco is a leading exporter of fresh fruit and
vegetable products to European markets, and I am pleased to say
that a large portion of the fruits and vegetables exported from
Morocco to Europe are packaged in International Paper corrugated
containers."

Aziz Qadiri and Hicham Qadiri will retire from their general
management roles at CMCP upon closing.  They will assume
advisory roles to the new management team and also serve on
CMCP's board of directors.  A new managing director will also be
appointed at that time.

"I want to thank the Qadiris for building CMCP into one of the
pre-eminent companies in Morocco, and I look forward to
continuing our successful relationship," Mr. Brown said.

CMCP has approximately 1,500 employees and operates four box
plants and one recycled containerboard mill in Morocco.  CMCP
produces corrugated packaging materials for the industrial and
agricultural markets.  In 2006, CMCP had sales of approximately
US$145 million.

Based in Stamford, Connecticut, International Paper Co. (NYSE:
IP) -- http://www.internationalpaper.com/-- is in the forest
products industry for more than 100 years.  The company is
currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.

Its Asian operations are specifically located in China.  In
Europe, the company has offices in the United Kingdom, Poland,
Russia, among others.

                       *     *     *

International Paper Co. carries Moody's Investors Service's Ba1
senior subordinate rating and Ba2 Preferred Stock rating.


INTRALL POLSKA: Submits New Bankruptcy Application
--------------------------------------------------
Intrall Polska Co. Ltd. has filed a new application for
bankruptcy after the court rejected its first suit due to formal
mistakes, Puls Biznesu states.

According to the report, the company's management has confirmed
that a settlement proposal for creditors will be submitted
today, July 20, 2007.  Intrall Polska CEO Stanislaw Szelestow
declined, however, to divulge the value of the debts and the
number of creditors.

The company has ceased all production and sales activities after
banks refused to credit operations.  Mr. Szelestow claims
Intrall Polska will resume production if the creditors approve
the proposal, Puls Biznesu relates.

                      About Intrall Polska

Headquartered in Lublin, Poland, Intrall Polska Co. Ltd. --
http://www.intrall.eu/-- was established in December 2003, when
British investors took over the former Daewoo Motor Polska
facilities in Lublin, then in receivership, after winning the
right to manufacture LUBLIN's light commercial vehicles.  As a
new manufacturer, INTRALL Polska Co. Ltd. has successfully
started rebuilding LUBLIN 3 brand name and gaining a significant
market share in the light commercial vehicles sector.


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


ADAMANT LLC: Creditors Must File Claims by Aug. 23
--------------------------------------------------
Creditors of LLC Transport Agency Adamant (TIN 0275043457) have
until Aug. 23 to submit proofs of claim to:

         E. Ivanov
         Insolvency Manager
         Oktyabrya Pr. 89/3–9
         Ufa
         450057 Bashkortostan
         Russia

The Arbitration Court of Bashkortostan commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A07-25447/06-G-GIA.

The Court is located at:

         The Arbitration Court of Bashkortostan
         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan
         Russia

The Debtor can be reached at:

         LLC Transport Agency Adamant
         Gafuri Str. 25
         Ufa
         450076 Bashkortostan
         Russia


ENGINEER-INNOVATION CENTRE: Court Starts Bankruptcy Supervision
---------------------------------------------------------------
The Arbitration Court of Tyumen commenced bankruptcy supervision
procedure on CJSC Tyumenskiy Regional Engineer-Innovation Centre
(TIN 7204082910).  The case is docketed under Case No.
A-70-2160/3-07.

The Temporary Insolvency Manager is:

         V. Kevarkov
         Gorkogo Str. 31
         620075 Ekaterinburg
         Russia

The Court is located at:

         The Arbitration Court of Tyumen
         Khokhryakova Str. 77
         627000 Tyumen Region
         Russia

The Debtor can be reached at:

         V. Kevarkov
         Gorkogo Str. 31
         620075 Ekaterinburg
         Russia


EURO CJSC: Court Names V. Mamonov as Insolvency Manager
-------------------------------------------------------
The Arbitration Court of Krasnoyarsk appointed V. Mamonov as
Insolvency Manager for CJSC Euro.  He can be reached at:

         V. Mamonov
         Post User Box 150
         664011 Irkutsk-11
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A33-4999/2007.

The Court is located at:

         The Arbitration Court of Krasnoyarsk
         Lenina Str. 143
         660021 Krasnoyarsk
         Russia

The Debtor can be reached at:

         CJSC Euro
         Vysotnaya Str. 4a
         Krasnoyarsk
         Russia


GEON-OIL-GAS-SERVICE: Names R. Galimov as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Orenburg appointed R. Galimov as
Insolvency Manager for CJSC Geon-Oil-Gas-Service (TIN
5617004759).  He can be reached at:

         R. Galimov
         Chishminskaya Str. 6
         Bashkortostan
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-70-2649/3-2007.

The Court is located at:

         The Arbitration Court of Orenburg
         9th January Str. 64
         460046 Orenburg
         Russia

The Debtor can be reached at:

         CJSC Geon-Oil-Gas-Service
         Zelenaya Str. 1
         Sorochinsk
         Orenburg
         Russia


GROUP TFK: Court Names S. Romanova as Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Orenburg appointed S. Romanova as
Insolvency Manager for CJSC Group TFK (TIN 5612026572).  She can
be reached at:

         S. Romanova
         Post User Box 35
         Kumertau-8
         453308 Bashkortostan
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A 47-8355/2006-14GK.

The Court is located at:

         The Arbitration Court of Orenburg
         9th January Str. 64
         460046 Orenburg
         Russia

The Debtor can be reached at:

         CJSC Group TFK
         Tereshkovoj Str. 8a
         460000 Orenburg
         Russia


KANSKAYA TOBACCO: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Arbitration Court of Krasnoyarsk commenced bankruptcy
supervision procedure on OJSC Kanskaya Tobacco Factory.
The case is docketed under Case No. A33-5638/2007.

The Temporary Insolvency Manager is:

         I. Morlang
         Lenina Str. 62a-10
         660049 Krasnoyarsk
         Russia

The Court is located at:

         The Arbitration Court of Krasnoyarsk
         Lenina Str. 143
         660021 Krasnoyarsk
         Russia

The Debtor can be reached at:

         OJSC Kanskaya Tobacco Factory
         Utitskogo Str. 4
         Kansk
         Krasnoyarsk
         Russia


KARAMALY-GUBEEVSKOE RTP: Creditors Must File Claims by Aug. 23
--------------------------------------------------------------
Creditors of OJSC Karamaly-Gubeevskoe RTP (TIN 0244000277, OGRN
1020202209565) have until Aug. 23 to submit proofs of claim to:

         R. Fedorova
         Insolvency Manager
         Post User Box 63
         Belebej
         452009 Bashkortostan
         Russia

The Arbitration Court of Bashkortostan commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A07-14425/05-G-PAV/SVI.

The Court is located at:

         The Arbitration Court of Bashkortostan
         Oktyabrskoy Revolyutsii Str. 63a
         Ufa
         Bashkortostan
         Russia

The Debtor can be reached at:

         OJSC Karamaly-Gubeevskoe RTP
         Lenina Str. 3
         Turmaly-Gubeevo
         Tuymazinskiy
         452687 Bashkortostan
         Russia


KUZNETSOVSKIY PORCELAIN: Bankruptcy Hearing Slated for Oct. 18
--------------------------------------------------------------
The Arbitration Court of Moscow will convene on Oct. 18 to hear
the bankruptcy supervision procedure on LLC Kuznetsovskiy
Porcelain.  The case is docketed under Case No. A41-K2-5355/07.

The Temporary Insolvency Manager is:

         A. Maltabar
         Post User Box 211
         170006 Tver
         Russia

The Court is located at:

         The Arbitration Court of Moscow
         Novaya Basmannaya Str. 10
         Moscow
         Russia

The Debtor can be reached at:

         LLC Kuznetsovskiy Porcelain
         Lenina Str. 15
         Likino-Dulevo
         Moscow
         Russia


NAST LLC: Irkutsk Court Names V. Safonov as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Irkutsk appointed V. Safonov as
Insolvency Manager for LLC Nast.  He can be reached at:

         V. Safonov
         Post User Box 146
         664025 Irkutsk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A19-9125/06-37.

The Court is located at:

         The Arbitration Court of Irkutsk
         Room 303
         Gagarina Avenue 70
         664025 Irkutsk
         Russia

The Debtor can be reached at:

         LLC Nast
         Lenina Str. 18, 405
         Irkutsk
         Russia


OB’ LLC: Court Names A. Senotrustov as Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Novosibirsk appointed A. Senotrustov as
Insolvency Manager for LLC OB’.  He can be reached at:

         A. Senotrustov
         Office 10
         Lenina Str. 62A
         660049 Krasnoyarsk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-14585/06-29/275.

The Court is located at:

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

The Debtor can be reached at:

         LLC OB’
         Sovetskaya Str. 213
         Iskitim
         Russia


OIL-GAS-STROY: Asset Bidding Deadline Slated for July 23
--------------------------------------------------------
The insolvency manager and bidding organizer for OJSC Oil-Gas-
Story, will open a public auction for the company's properties
at noon on July 25 at:

         The Insolvency Manager and Bidding Organizer
         Sormovskaya Str. 7
         Krasnodar
         Russia

The company has set a RUR4.1 million starting price for the
auctioned assets.

Interested participants have until July 23 to deposit an amount
of RUR820,000 to:

         OJSC Oil-Gas-Story
         Settlement Account 40702810300213000330
         Correspondent Account 30101810400000000535
         BIK 040349535
         OJSC Sobinbank (Krasnodarskiy)

Bidding documents must be submitted to:

         The Insolvency Manager and Bidding Organizer
         Sormovskaya Str. 7
         Krasnodar
         Russia

The Debtor can be reached at:

         OJSC Oil-Gas-Story
         Lunacharskogo Str. 169
         Gelendzhik
         Krasnodar
         Russia


SAKHO AUTO-TRANS: Bankruptcy Hearing Slated for Sept. 27
--------------------------------------------------------
The Arbitration Court of Novosibirsk will convene at 9:00 a.m.
on Sept. 27 to hear the bankruptcy supervision procedure on LLC
Sakho Auto-Trans.  The case is docketed under Case No.
A-45-4674/07-29/17.

The Temporary Insolvency Manager is:

         S. Zhukov
         Post User Box 116
         630087 Novosibirsk
         Russia

The Court is located at:

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

The Debtor can be reached at:

         LLC Sakho Auto-Trans
         Kalinina Str. 41
         Zdvinsk
         Zdvinskiy
         632950 Novosibirsk
         Russia


SAVVINSKOE CJSC: Court Names A. Yastrebov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Moscow appointed A. Yastrebov as
Insolvency Manager for CJSC Savvinskoe.  He can be reached at:

         A. Yastrebov
         Post User Box 12
         115597 Moscow
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A40-40828/06-123-816 b.

The Court is located at:

         The Arbitration Court of Moscow
         Novaya Basmannaya Str. 10
         Moscow
         Russia

The Debtor can be reached at:

         CJSC Savvinskoe
         Building 2
         Savvinskaya Quay 7
         119121 Moscow
         Russia


TMK OAO: Moody's Lifts Rating to Ba3 on Strong Performance
----------------------------------------------------------
Moody's Investor's Service upgraded the corporate family rating
for TMK OAO from B1 to Ba3.  At the same time, Moody's Interfax
Rating Agency, which is majority owned by Moody's, assigned a
Aa3.ru national scale credit rating with a stable outlook to the
company.

Moody's has also upgraded the rating for the Loan Participation
Notes totaling US$300 million issued by TMK Capital S.A.,
guaranteed by the operating subsidiaries of TMK, from B2 to B1.
The outlook on all ratings is stable.

The rating upgrade for TMK to Ba3 reflects:

   (i) the company's track record of strong operating
       performance, supported by continues buoyant demand from
       the rapidly developing Russian and CIS oil and gas as
       well as infrastructure sectors which is expected to
       result in an increasing sustainability of the company's
       current performance levels; and

  (ii) substantial reduction in indebtedness and successful
       restoration of credit metrics following the successful
       sale of 23% of the company's shares to third party
       investors.

The Ba3 rating remains underpinned by:

  (1) TMK's strong market position for seamless and large
      diameter welded pipes;

  (2) TMK's diversified product profile, serving its quality
      customer base including all Russian oil and gas majors;

  (3) the implementation of a modernization program aimed to
      improve quality and operating efficiency,

  (4) a solid revenue base associated with the production of
      large-diameter pipes backed by multi-year contracts;

  (5) a geographically advantageous location close to major
      Russian oil and gas drilling areas and scrap abundant
      territories;

  (6) a strong management focus on profitability and operational
      efficiency, including a clear business strategy; and

  (7) modest balance sheet leverage.

Moody's notes TMK consistency in strategy and financial policy,
which are also expected to be adhered to going forward. The Ba3
rating also reflects Moody's view that TMK's relatively sizeable
debt position following the increase of the majority
shareholder's stake and financed directly and indirectly via
debt at TMK level, was successfully brought down to a more
comfortable level after a bond issue and partial sale of the
majority shareholder's stake to third party investors.  It
allowed the company to free up liquidity for the implementation
of an ongoing modernization.

Recently released first quarter 2007 results indicate a
continuous strong performance especially with respect to the
sales of seamless and large-diameter welded pipes in the benign
market environment.  Moody's added that the strong domestic
demand in Russia for oil & gas and infrastructure sector is
expected to continue for the foreseeable future, driven by the
booming domestic economy, a growth of infrastructure
investments, the need for ongoing exploration, production and
transportation via pipeline of oil and gas products.  These
developments should foremost benefit the well-located Russian
pipe producers such as TMK, contributing to a greater immunity
to global tubular price cyclicality and therefore to a more
stable financial performance over the next several years.

On a more cautionary note, Moody's reiterated that the Ba3
corporate family rating continues to reflect:

   (1) the inherently volatile oil and gas industry, and more
       specifically, the drilling cycle which moves in
       conjunction with commodity prices;

   (2) cost pressures associated with steel and scrap prices,
       which can significantly impact margins despite robust
       market conditions and ability to pass along higher steel
       and scrap costs;

   (3) a vulnerability associated with its reliance on third-
       party supplies, especially suppliers of scrap;

   (4) competition from other Russian producers and imports,
       notably from Ukraine, in certain product segments;

   (5) the need to increase capacity to achieve organic growth;

   (6) the potential appetite for international acquisitions;

   (7) the concentration of ultimate control, with one
       individual controlling the company; and

   (8) the challenging operating environment in Russia, which is
       characterized by significant political legal, fiscal and
       exchange rate risks.

In its assessment of the company's capital structure for the
purpose of assessing the loss given default, Moody's therefore
considers secured debt to rank ahead of the loan participation
notes.  The Loan Participation Notes totaling US$300 million are
structurally and contractually subordinated to the existing
secured indebtedness of US$318 million or 27% of the total loan
portfolio that is secured by property, equipment, fixed assets
and revenue proceeds, therefore the assigned rating is notched
down by one notch from the Corporate Family Rating of Ba3.

The B1 rating on the unsecured notes reflects both the overall
probability of default of the group, to which Moody's assigned a
probability-of-default rating of Ba3, and a loss-given default
assessment of LGD4 or 68%.

Upgrades:

   * Issuer: TMK

   -- Probability of Default Rating, Upgraded to Ba3 from B1;

   -- Corporate Family Rating, Upgraded to Ba3 from B1;

   -- Senior Unsecured Regular Bond/Debenture, Upgraded to B1,
      LGD4, 68% from B2, LGD5, 71%.

TMK is Russia's largest and one of the world's leading
manufacturers of value-added steel pipe products for the oil &
gas industry.  TMK has shipped more than 3 million metric tonnes
of pipe products, generated revenues of US$3.4 billion and
EBITDA of US$794 million in 2006.  After the IPO, 77.02% of OAO
TMK is indirectly fully owned by Dr. Dmitriy Pumpyanskiy.


TULA-AGRO-PROM-PROJECT: Tula Court Hearing Slated for Oct. 2
------------------------------------------------------------
The Arbitration Court of Tula will convene at 11:00 a.m. on
Oct. 2 to hear the bankruptcy supervision procedure on OJSC
Institute Tula-Agro-Prom-Project.  The case is docketed under
Case No. A68-1857/07-85/B-07.

The Temporary Insolvency Manager is:

         V. Tulinov
         Office 30
         Kirova Str. 9
         394018 Voronezh
         Russia

The Court is located at:

         The Arbitration Court of Tula
         Hall 35
         Sovetskaya Str. 112
         Tula
         Russia

The Debtor can be reached at:

         OJSC Institute Tula-Agro-Prom-Project
         Ryazanskaya Str. 1
         300026 Tula
         Russia


VOLGOGRADSKIY GUBERSNSKIY: Creditors Must File Claims by Aug. 23
----------------------------------------------------------------
Creditors of OJSC Volgogradskiy Gubersnskiy Canning Holding (TIN
3445048443) have until Aug. 23 to submit proofs of claim to:

         D. Lazarev
         Insolvency Manager
         Office 405
         7th Gvardeyskaya Str. 12
         400005 Volgograd
         Russia

The Arbitration Court of Volgograd commenced bankruptcy
proceedings against the company after finding it insolvent.
The case is docketed under Case No. A12-911/05-s48.

The Debtor can be reached at:

         OJSC Volgogradskiy Gubersnskiy Canning Holding
         Maykopskaya Str. 5
         400047 Volgograd
         Russia


* Fitch Affirms Kirov Region's B Ratings on Weak Budget
-------------------------------------------------------
Fitch Ratings has affirmed the Russian Kirov region's Long-term
foreign and local currency 'B' ratings and Short-term foreign
currency 'B' rating.  Its National Long-term 'BBB(rus)' rating
is also affirmed.  All the Long-term rating Outlooks are Stable.

The ratings reflect the region's weak budgetary performance and
high budgetary rigidity stemming from significant financial
support of municipalities and social items.  They also reflect
the potential economic growth stimulus from the development of
the local industrial sector, improved operating and current
margins and low debt burden of the regional budget.  The Stable
Outlook reflects Fitch's expectations that economic growth will
drive revenue growth and offset increasing expenditure.  Fitch
expects the debt burden to remain moderate.

The regional economy has a strong industrial base (27% of GRP in
2005) that serves as a main attraction for foreign investments
and a source of economic growth.  Petrochemical and timber
processing companies accounted for 78% of exports in 2005.
Fixed capital investment has been growing since 2001 and rose
2.3x in 2006, with bank loans steadily replacing retained
earnings as an investment source.

Kirov receives a steady flow of transfers from the federal
government, whose share in the total budget revenue averaged 40%
during 2004-2006.  Besides unconditional grants, the region also
receives significant federal financial support for gas pipelines
construction.

However, the region demonstrated unstable and weak budgetary
performance during 2002-2006.  Operating expenditure growth
outpaced that of operating revenue in 2004-2005, resulting in a
negative operating balance.  Although the region's operating and
current margins turned positive in 2006, they were still very
low.

The region's budget is characterized by high rigidity, as the
shares of transfers to municipalities averaged 46% of total
expenditure in 2002-2006.  Over the same period, rigid items in
the regional budget averaged 79% of the total expenditure, while
the share of capital expenditure averaged 6% over the period of
2002-2004.  The consequent increase of capital expenditure up to
13% in 2005 and 10% in 2006 was mostly attributed to federal
subsidies.

Debt burden remains low, reaching 12.6% of current revenue in
2006, while debt servicing declined to 5.8% from 7.5% in 2004.
The debt structure is changing with issued debt and bank loans
replacing federal budget loans, whose share fell to 4% in 2006
from 76% in 2002.

Kirov region is located in the central part of Russian
Federation. The region accounts for 0.4% of the Russian
Federation's GDP (2005) and 1% of its population.


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


MEGA BRANDS: S&P Affirms Corporate Credit Rating at B+
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit and bank loan ratings on Montreal, Quebec-based leading
toy manufacturer MEGA Brands Inc.  In addition, S&P revised the
recovery rating on the company's bank loan to '3' from '2'.  The
'3' recovery rating indicates an expectation of meaningful (50%-
70%) recovery of principal in the event of a payment default, in
contrast to a '2' recovery rating, which indicates the
expectation of substantial (70%-90%) recovery of principal.  The
revision to the recovery rating is due to the recent change in
Standard & Poor's recovery scale, as well as the use of a lower
EBITDA amount and EBITDA multiple in the event of default.

At the same time, Standard & Poor's removed the ratings from
CreditWatch with negative implications, where they were placed
April 20, 2007.  The outlook is stable.

"The rating affirmation and stable outlook follow our review of
MEGA Brands' operating and financial strategies, in the context
of the challenges it has faced with the Magnetix product, other
litigation, and an intensely competitive environment," said
Standard & Poor's credit analyst Lori Harris.  "Furthermore, the
company has announced a CDN$78 million offering of common
shares, net proceeds of which are expected to repay debt, which
will positively affect MEGA Brands' financial risk profile," Ms.
Harris added.  Into the affirmation, S&P incorporated an
expectation that MEGA Brands will have no additional material
Magnetix-related, one-time expenses and that financial
performance will show improvement in the medium term.

The ratings on MEGA Brands reflect its weak financial profile;
customer concentration; seasonal sales; litigation risk; and
challenging toy industry fundamentals, including a very
competitive operating environment and ongoing reliance on
successful new product introductions.  These factors are
partially offset by the company's good market position within
its categories and brand equity.

The stable outlook reflects the expectation that MEGA Brands
will maintain its leading position in its core markets and that
credit measures will remain in line with Standard & Poor's
expectations.

Furthermore, the stable outlook incorporates the expectation
that any material problems related to the Magnetix brand are
behind the company.  The ratings could be revised upward if the
company strengthens its business risk profile through building
its market position or if MEGA Brands improves its financial
risk profile.  Should MEGA Brands experience future material
Magnetix-related, one-time expenses or the company's financial
performance is not in line with Standard & Poor's expectations
in the next several quarters, the outlook or ratings could face
pressure.

MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a
distributor of construction toys, games & puzzles, arts & crafts
and stationery.  The company is headquartered in Montreal,
Canada and has offices in Belgium, United Kingdom, Germany,
France, Spain, Mexico, and Australia.


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


STRATOS INTERNATIONAL: Completes Emerson Merger for US$118 Mil.
---------------------------------------------------------------
Stratos International, Inc., has consummated its merger with a
wholly owned subsidiary of Emerson, a US$20 billion global
technology company that provides products and services for a
wide range of industries, commercial markets and end-users.  The
merger was finalized after the shareholders of Stratos approved
the merger at a special meeting held earlier last week.  As a
result of the merger, Stratos is no longer a public company and
provided notice to the NASDAQ Stock Market requesting
that its common stock (formerly traded under the NASDAQ symbol
"STLW") be delisted from the NASDAQ Stock Market LLC at the
close of business on July 12, 2007.

Under the terms of the merger agreement, the holders of Stratos
International common stock will receive US$8.00 per share in
cash for their shares, for a total consideration of
approximately US$118 million, or an aggregate consideration of
approximately US$83.5 million, net of acquired cash.

Phillip A. Harris, President and CEO of Stratos said, "We are
pleased that our shareholders recognized the value of this
transaction and we look forward to joining Emerson.  This
transaction will provide significant opportunities for Stratos
to penetrate new industry channels and deliver superior services
to our existing customers."

                         About Emerson

Based in St. Louis, Emerson -- http://www.emerson.com/-- is a
global leader in bringing technology and engineering together to
provide innovative solutions to customers through its network
power, process management, industrial automation, climate
technologies, and appliance and tools businesses.  Sales in
fiscal 2006 were US$20.1 billion.

                About Stratos International

Headquartered in St. John's, Newfoundland, Canada, with
executive offices in Bethesda, Maryland, Stratos Corporation
(Nasdaq: STLW) -- http://www.stratosglobal.com/-- is a publicly
traded company that provides a range of mobile and fixed-site
remote communications solutions for users operating beyond the
reach of traditional networks.  The company has offices in
Canada, Brazil, the United Kingdom, Norway, Germany, the
Netherlands, Sweden, Italy, Spain, Turkey, Russia, Kenya, South
Africa, United Arab Emirates, India, Hong Kong, Japan,
Singapore, Australia and New Zealand.

                       *     *     *

As reported in the Troubled Company Reporter on May 9, 2007,
Moody's Investors Service confirmed Stratos Global Corporation's
B1 corporate family, Ba2 senior secured and B3 senior unsecured
ratings and lowered the company's speculative grade liquidity
rating to SGL-4 from SGL-3.  The outlook is negative.  The long
term ratings reflect a B1 probability of default and loss-given
default assessments of LGD 2, 24% on the senior secured debt and
LGD 5, 77% on the senior unsecured notes.


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


ACKERMANN INNENAUSBAU: Creditors' Liquidation Claims Due Aug. 14
----------------------------------------------------------------
Creditors of LLC Ackermann Innenausbau have until Aug. 14 to
submit their claims to:

         JSC Eberle & Partner Treuhand und Revision
         Liquidator
         Grofstrasse 34
         8887 Mels
         Sarganserland SG
         Switzerland

The Debtor can be reached at:

         LLC Ackermann Innenausbau
         Vilters-Wangs
         Sarganserland SG
         Switzerland


AGI CONSULTING: Creditors' Liquidation Claims Due July 27
---------------------------------------------------------
Creditors of JSC AGI Consulting have until July 27 to submit
their claims to:

         Bernstrasse 114
         3613 Steffisburg
         Thun BE
         Switzerland

The Debtor can be reached at:

         JSC AGI Consulting
         Steffisburg
         Thun BE
         Switzerland


BRAIN69 LLC: Creditors' Liquidation Claims Due August 2
-------------------------------------------------------
Creditors of LLC BRAIN69 have until Aug. 2 to submit their
claims to:

         Daniel Fischer
         Liquidator
         Vogelsangstrasse 12
         5620 Bremgarten AG
         Switzerland

The Debtor can be reached at:

         LLC BRAIN69
         Bremgarten AG
         Switzerland


CHACOPEMA JSC: Creditors' Liquidation Claims Due July 27
--------------------------------------------------------
Creditors of JSC Chacopema have until July 27 to submit their
claims to:

         Alpenstrasse 2
         6300 Zug
         Switzerland

The Debtor can be reached at:

         JSC Chacopema
         Zug
         Switzerland


DE MAIO: Creditors' Liquidation Claims Due August 14
----------------------------------------------------
Creditors of LLC De Maio have until Aug. 14 to submit their
claims to:

         Christoph Eggspuhler
         Liquidator
         Mellingerstrasse 207/Tafernhof
         5405 Dattwil
         Switzerland

The Debtor can be reached at:

         LLC De Maio
         Spreitenbach
         Baden AG
         Switzerland


DORFLADEN LAUERZ: Schwyz Court Closes Bankruptcy Proceedings
------------------------------------------------------------
The Bankruptcy Service of Goldau in Schwyz entered June 8 an
order closing the bankruptcy proceedings of LLC Dorfladen
Lauerz.

The Bankruptcy Service of Goldau can be reached at:

         Bankruptcy Service of Goldau
         6410 Goldau SZ
         Switzerland

The Debtor can be reached at:

         LLC Dorfladen Lauerz
         6424 Lauerz SZ
         Switzerland


GUBLER & RUFATTI: Claims Registration Period Ends July 27
---------------------------------------------------------
The Bankruptcy Court of Basel-Stadt commenced bankruptcy
proceedings against JSC Gubler & Rufatti on May 15.

Creditors have until July 27 to file their written proofs of
claim.

The Bankruptcy Service of Basel-Stadt can be reached at:

         Bankruptcy Service of Basel-Stadt
         4051 Basel BS
         Switzerland

The Debtor can be reached at:

         JSC Gubler & Rufatti
         Auf dem Wolf 31
         4052 Basel BS
         Switzerland


IMFELD + BISIG: Creditors' Liquidation Claims Due August 10
-----------------------------------------------------------
Creditors of LLC Imfeld + Bisig Schreinerei have until Aug. 10
to submit their claims to:

         Rolf Bisig
         Liquidator
         Chappelihof 9
         8863 Buttikon SZ
         Switzerland

The Debtor can be reached at:

         LLC Imfeld + Bisig Schreinerei
         Lachen SZ
         Switzerland


JALDAR LTD: Creditors' Liquidation Claims Due August 13
-------------------------------------------------------
Creditors of Jaldar Ltd. have until Aug. 13 to submit their
claims to:

         Noth Werner
         Liquidator
         Grafschaft 4

         8143 Stallikon
         Affoltern ZH
         Switzerland

The Debtor can be reached at:

         Jaldar Ltd.
         Stallikon
         Affoltern ZH
         Switzerland


KEYWAY LLC: Creditors' Liquidation Claims Due July 27
-----------------------------------------------------
Creditors of LLC keyway have until July 27 to submit their
claims to:

         JSC Saxer Treuhand
         Liquidator
         Untere Rebgasse 7
         4005 Basel BS
         Switzerland

The Debtor can be reached at:

         LLC keyway
         Frick
         Laufenburg AG
         Switzerland


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


ALTECH LTD: Claims Submission Deadline Set July 21
--------------------------------------------------
Creditors of LLC Firm Altech Ltd (code EDRPOU 20493654) have
until July 21 to submit written proofs of claim to:

         Sergey Bagmet
         69104 Zaporozhje Ukraine P.O. Box 1064
         Tel. (061)217-66-17

The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. 25/144/07.

The Court is located at:

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The debtor can be reached at:

         LLC Firm Altech Ltd.
         Lenin Avenue 158/216
         69057 Zaporozhje
         Ukraine


BERDYCHIV-KHOLOD CJSC: Court Opens Bankruptcy Proceedings
---------------------------------------------------------
The Economic Court of Zhytomyr in Ukraine commenced bankruptcy
proceedings against Berdychiv-Kholod CJSC after finding it
insolvent, Interfax News reports citing The Financial Times as
its source.

According to the report, Berdychiv-Kholod had total accounts
payable of UAH13.4 million.

In 2005, the company incurred losses of UAH729,400, Interfax
relates.

Berdychiv-Kholod CJSC manufactures dairy products and ice cream.
Balahodar trade house holds a 73.1% stake in the company.


CONTRACT SERVICE: Claims Submission Deadline Set July 21
--------------------------------------------------------
Creditors of LLC Contract Service (code EDRPOU 32214966) have
until July 21 to submit written proofs of claim to:

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. 21/21/07.

The debtor can be reached at:

         LLC Contract Service
         Tcharivna Str. 123-A/68
         69071 Zaporozhje
         Ukraine


KOTLIAREVSKOE BREADRECEIVING: Claims Filing Deadline Set July 21
----------------------------------------------------------------
Creditors of OJSC Kotliarevskoe Breadreceiving Enterprise (code
EDRPOU 00954946) have until July 21 to submit written proofs of
claim to:

         Irina Zakharchenko
         Liquidator
         October Avenue 325/4
         54052 Nikolaev
         Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 5/12/07.

The Court is located at:

         The Economic Court of Nikolaev
         Admiralskaya Str. 22
         54009 Nikolaev
         Ukraine

The debtor can be reached at:

         OJSC Kotliarevskoe Breadreceiving Enterprise
         Shevchenkovo
         October District
         57200 Nikolaev
         Ukraine


KRASNOSLOBODSKOE CJSC: Claims Submission Deadline Set July 21
-------------------------------------------------------------
Creditors of Agricultural CJSC Krasnoslobodskoe (code EDRPOU
03777611) have until July 21 to submit written proofs of claim
to:

         Andrew Biriukov
         Liquidator
         SKD Str. 48/5
         40024 Sumy
         Ukraine

The Economic Court of Sumy commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 6/130-06.

The Court is located at:

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

The debtor can be reached at:

         Agricultural CJSC Krasnoslobodskoe
         Dukhanovka Str. 35
         Krasnaya Sloboda
         Nedrigaylovsky District
         42145 Sumy
         Ukraine


NOVY BUG: Claims Submission Deadline Set July 21
------------------------------------------------
Creditors of CJSC Agricultural Service Center Novy Bug (code
EDRPOU 31535954) have until July 21 to submit written proofs of
claim to:

         The Economic Court of Nikolaev
         Admiralskaya Str. 22
         54009 Nikolaev
         Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 5/11/07.

The debtor can be reached at:

         CJSC Agricultural Service Center Novy Bug
         Novy Bug, Vatutin Str. 1
         55611 Nikolaev
         Ukraine


TECHNOLOGY LLC: Creditors Must File Claims by July 21
-----------------------------------------------------
Creditors of LLC Technology (code EDRPOU 21103402) have until
July 21 to submit written proofs of claim to:

         Igor Filenko
         Temporary Insolvency Manager
         Malinovsky Str. 12
         40021 Sumy
         Ukraine

The Economic Court of Sumy commenced bankruptcy supervision
procedure on the company.  The case is docketed under Case No.
8/185-07.

The Court is located at:

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

The debtor can be reached at:

         LLC Technology
         Malinovsky Lane 14
         Shostka
         Sumy
         Ukraine


VYGRAEVSKOE LLC: Claims Submission Deadline Set July 21
-------------------------------------------------------
Creditors of Agricultural LLC Vygraevskoe (code EDRPOU 31860572)
have until July 21 to submit written proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 14/110.

The debtor can be reached at:

         Agricultural LLC Vygraevskoe
         Vygraev
         Korsun-Shevchenkovsky District
         Cherkassy
         Ukraine


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


AUXILIA GROUP: Brings In Joint Administrators from KPMG
-------------------------------------------------------
Allan Watson Graham and Richard James Philpott of KMPG LLP were
appointed joint administrators of Auxilia Group Ltd. (Company
Number 05067413) on July 10.

KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit,
and tax-related services to customers in such target industries
as banking, media and entertainment, consumer products, health
care providers, insurance, and pharmaceuticals.

Headquartered in Cannock, England, Auxilia Group Ltd. --
http://auxilia.co.uk/-- is a provider of air conditioning and
refrigeration services to the retail sector.


AUXILIA LTD: Appoints KPMG LLP as Joint Administrators
------------------------------------------------------
Allan Watson Graham and Richard James Philpott of KPMG LLP were
appointed July 11, as joint administrators of:

   -- Auxilia Ltd. (Company Number 02983003);

   -- Air Continental Ltd. (Company Number 02993929);

   -- CP (2007) Ltd. (fka Peak Cooling Solutions Ltd.)
      (Company Number 03550252);

   -- Auxilia Maintain Ltd. (Company Number 03248584); and

   -- Norton Refrigeration Ltd. (Company Number 03160324).

KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit,
and tax-related services to customers in such target industries
as banking, media and entertainment, consumer products, health
care providers, insurance, and pharmaceuticals.

Headquartered in Cannock, England, Auxilia Group Ltd. --
http://auxilia.co.uk/-- is a provider of air conditioning and
refrigeration services to the retail sector.


COLT TELECOM: Earns EUR17 Mln in Six Months Ended June 30, 2007
---------------------------------------------------------------
COLT Telecom Group S.A. released financial results for the three
and six months ended June 30, 2007.

COLT reported EUR8.9 million in net profit on EUR410 million in
revenues for the three months ended June 30, 2007, compared with
EUR18.3 million in net losses on EUR449.7 million in revenues
for the three months ended June 30, 2006.

For the six months ended June 30, 2007, COLT recorded EUR17
million in net profit on EUR835.6 million in revenues, compared
with EUR29 million in net losses on EUR898.1 million in revenues
for the same period in 2006.

At June 30, 2007, the Group’s balance sheet showed EUR1.8
billion in total assets, EUR888.6 million in total liabilities
and EUR939.6 million in stockholders’ equity.

The Group’s June 30 balance sheet also showed strained liquidity
with EUR558.9 million in total current assets available to pay
EUR583 million in total liabilities coming due within the next
12 months.

“I am pleased to report another quarter of operational progress
and improved profitability.  COLT has now been profitable for
four consecutive quarters,” COLT Telecom CEO Rakesh Bhasin said.
“Data revenues increased to more than 50% of total revenue, with
growth in every geography and with double digit growth in most
markets.  Data bookings continued to grow and deferred Data
revenues increased by EUR12.4 million to EUR174.8 million.
Headline revenues fell reflecting a drop in low margin Carrier
Voice and Carrier Pre-Select (CPS) voice revenues.”

“We have continued to invest in our managed services
capabilities, opening new data centers in Copenhagen and in
Lisbon and announcing a major new data center for London.  This
will bring the total number of fully integrated COLT data
centers across Europe to 17,” Mr. Bhasin continued.

“Operationally, we continue to move forward.  We have moved to a
more customer centric way of working, focused around three new
business divisions; service delivery and service assurance
continued to improve; and our next generation network investment
has gathered pace,” Mr. Bhasin added.

                        Outlook for 2007

COLT Telecom continues to make progress in the U.K., France and
Strategic Markets but trading in Germany continues to be
difficult and uncertain.  Given this outlook and the accelerated
investment noted in April the group continues to expect that
EBITDA for 2007 will be broadly in line with that of 2006.

Headquartered in London, United Kingdom, Colt Telecom --
http://www.colt.net/-- offers business communication services
across Europe.  Through its fiber optic network, the Company
offers voice, bandwidth, e-business and managed network services
to finance, industry and service sector customers and
governments.

                        *     *     *

As of July 19, 2007, Colt Telecom Group S.A. carries Moody's B2
long-term corporate family rating.  Moody's said the outlook is
stable.

Standard & Poor's rates Colt Telecom's long-term foreign issuer
credit and long-term local issuer credit at B.  S&P said the
outlook is stable.


CONSUMER UNSECURED: Moody's Rates GBP20 Mln Class E Notes at Ba3
----------------------------------------------------------------
Moody's Investors Service assigned these definitive ratings to
five classes of asset-backed notes issued by Consumer Unsecured
Reperforming Loans Plc:

   -- Aaa to the GBP29,417,000 million Class A Notes due 2021;

   -- Aa1 to the GBP24,007,000 million Class B Notes due 2021;

   -- Aa3 to the GBP27,141,000 million Class C Notes due 2021;

   -- Baa2 to the GBP46,707,000 million Class D Notes due 2021;
      and

   -- Ba3 to the GBP20,040,000 million Class E Notes due 2021.

The GBP50,000 Class F Note due 2021 remains unrated.

CURL represents the first securitization of re-performing
unsecured consumer loans in the U.K.  The re-performing loans
were originated by Lloyds TSB Bank Plc to refinance unsecured
personal loans, overdrafts and/or credit card balances of
existing Lloyds TSB customers.

Zestdew PLC (a subsidiary of an affiliate of Lehman Brothers
International (Europe)) purchased a portfolio of re-performing
loans from Lloyds TSB on March 23, 2007.  The Issuer will issue
notes and use proceeds from these to pay cash consideration to
Zestdew PLC for eligible loans and Zestdew PLC will receive
residual revenue as further consideration for the sale of the
loans.  The transaction is static and the noteholders are repaid
on a pass-through basis

According to Moody's, the ratings take account of the following
factors, among others.  Firstly, the Loans are advanced to
borrowers as a consolidation product for borrowers experiencing
difficulty in repaying their outstanding Lloyds TSB debt.  As
such, the credit quality of the obligors can be considered to be
low and default experience on these loans is relatively high in
comparison to typical non-refinanced consumer loans.  Moody's
has taken this into account in deriving model assumptions for
the transaction.  Secondly, the Loans have a low weighted
average yield of 3.9%, given that they are extended to aid
recovery rather than to generate profits and structural
mechanics ensure that principal collections are used to meet
payments in the interest waterfall.

Moody's believes that strengths of the transaction include the
credit quality, prominent position and experience in servicing
consumer debt in the U.K. of Lloyds TSB appointed as Loan
Administrator for the Issuer.  Furthermore, Capstone Mortgage
Services Limited as Master Loan Administrator has the obligation
to supervise the Loan Administrator and to assume loan
administration functions if the Loan Administration Agreement is
terminated.  The Notes benefit from 34.6% over-collateralization
and the Loans were positively selected from Lloyds TSB's larger
portfolio of reperforming unsecured consumer loans.  A GBP6
million liquidity facility is available at close to meet
shortfalls in senior expense and rated note interest payments.

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


CUMMINS INC: Board Increases Cash Dividend by 39%
-------------------------------------------------
The Cummins Inc. Board of Directors increased the company's
quarterly cash dividend on common stock by 39% to 25 cents per
share, up from 18 cents per share.  The dividend is payable on
August 31 to shareholders of record on August 17.

The dividend increase is the second for Cummins in the past year
-- the company increased its dividend 20% in July 2006 -- and
comes four months after the company announced a 2-for-1 stock
split.  On a split-adjusted basis, Cummins stock has nearly
doubled in 2007.

"After three consecutive years of record financial results, the
company continues to perform extremely well," said Tim Solso,
Cummins Chairman and Chief Executive Officer.  "The
company\u2019s actions are indicative of the board's continued
confidence in the company's ability to grow profitably and
generate strong cash flow."

"The company's strong financial performance has resulted in
significant positive cash flow, which has allowed us to
strengthen our balance sheet and invest in profitable growth,"
Solso said. "At the same time, we understand the need to reward
our shareholders' confidence in Cummins by returning value on
their investment through increased share price, growing
dividends and repurchasing stock.  The decision by the board is
a strong statement of that commitment."

From 2003 through the end of 2006, Cummins produced an average
annual total return of about 46% - more than triple that of the
S&P 500 and more than double that of the company's peer group.

                        About Cummins, Inc.

Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI)
-- http://www.cummins.com/-- designs, manufactures,
distributes, and services engines and related technologies,
including fuel systems, controls, air handling, filtration,
emission solutions and electrical power generation systems.
Cummins serves customers in more than 160 countries through its
network of 550 company-owned and independent distributor
facilities and more than 5,000 dealer locations.

                          *     *     *

The company's Junior Convertible Subordinated Debentures carry
Fitch's 'BB' rating with a stable outlook.


FORD MOTOR: Private Equity Firms May Bid for Jaguar & Land Rover
----------------------------------------------------------------
Ford Motor Company is expected to receive six indicative bids
for Jaguar and Land Rover from interested parties that include
Cerberus Capital Management, Ripplewood Holdings and One Equity
Partners, The Financial Times reports.

The TCR-Europe reported on July 19, 2007, that Indian carmaker
Tata Motors is in the early stages of evaluating a bid for
Jaguar and Land Rover.  FT observes that Tata Motors seems to be
the most likely contender for the assets.

Meanwhile, Renault Nissan of France has reportedly backed away
and Hyundai of South Korea early this morning said it had "no
interest whatsoever" in buying another brand, FT reveals.
Alchemy Partners, which bid for Land Rover in the UK seven years
ago, and Carlyle, which owns a string of auto suppliers, have
ruled out making bids, the report says.

The auction could progress quickly, with Ford hoping to select
two final bidders in the next few weeks to begin due diligence
on Jaguar and Land Rover, FT relates.  Ford prefers selling the
two brands together although it is prepared for separate deals.

                      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.

                          *    *    *

To date, Ford Motor Company still carries Standard & Poor's
Ratings Services 'B' long-term foreign and local issuer credit
ratings and negative ratings outlook.

At the same time, the company carries Moody's Caa1 issuer and
senior unsecured debt ratings and negative ratings outlook.


FREESCALE SEMI: Union In Talks Over Future of Scottish Plant
------------------------------------------------------------
The officials of the T&G Scotland section of Unite have met with
local politicians in response to increasing speculation
surrounding the future of Freescale Semiconductor Inc.’s plant
in East Kilbride, Scotland.

The T&G Scotland section of Unite represents a significant
proportion of the company's manufacturing workers.  The union
said it believes a positive outcome can be found to safeguard
jobs and the future of the plant.

"The union is actively seeking discussions with Freescale
management to ensure the continuation of a productive and
profitable manufacturing base in East Kilbride,” Jimmy Farrelly,
T&G Scotland section of Unite senior regional industrial
organizer, said.  "The workforce has given a long-term
commitment to Freescale.  The ongoing speculation and recent
announcements have caused a great deal of anxiety in the
workplace and the wider community.  The plant plays an
absolutely crucial role in maintaining the health of the local
economy and Scotland's wider manufacturing base."

Mr. Farrelly said very positive meetings with local
representatives Adam Ingram MP and Andy Kerr MSP have taken
place with the union.

"We would now encourage all parties concerned - including
Scottish Enterprise and the Scottish Executive - to join with
Unite in an effort to secure the long-term viability of the
plant," he added, but stressed this could only happen if the
company was prepared to enter into a meaningful and constructive
dialogue.

Unite's involvement pleased Adam Ingram MP who has been heavily
involved in ongoing discussions with Freescale management.

"I warmly welcome Unite's involvement and commitment to assist
in finding a viable solution at Freescale.  I have been clear
from the outset that all interested parties must cooperate.
Therefore, I would strongly urge Freescale's management to
engage with us in an effort to secure a manufacturing base in
East Kilbride," Mr. Ingram said.

As previously reported in the TCR-Europe, Freescale is looking
for a buyer for its East Kilbride site.  According to the
report, Freescale has already informed the site's around 900
employees of the sale plan.

Scotland's First Minister Alex Salmond believes there is still
time to save the 900 jobs threatened by the possible closure of
the East Kilbridge plant.

Mr. Ingram stated that he is ready to go to the United States to
discuss the plant and the GBP3 million regional selective
assistance grant Freescale accepted in March 2007.

                         About Freescale

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.  The
company is based in Austin, Texas, and has design, research and
development, manufacturing or sales operations in more than 30
countries, including the Czech Republic, France, Germany,
Ireland, Italy, Romania, Turkey and the United Kingdom.

                            *   *   *

As reported in the TCR-Europe on May 28, 2007, Moody's Investors
Service affirmed these ratings of Freescale Semiconductor Inc.
and changed the outlook to negative: Ba3 corporate family
rating; Ba3 probability of default rating; B1 rating of
US$2.85 billion senior unsecured notes due 2014; B1 rating of
US$1.50 billion senior unsecured toggle notes due 2014; and B2
rating of US$1.60 billion senior subordinated unsecured notes
due 2016.


DAIMLERCHRYSLER: Cerberus May Pay More Interest in Chrysler Deal
----------------------------------------------------------------
Cerberus Capital Management, L.P., may have to pay higher
interest rates on parts of the US$62 billion financing for the
buyout of DaimlerChrysler AG units Chrysler Corporation LLC and
Chrysler Financial Services LLC to meet the demands of banks,
which the private equity firm expects to provide funding for the
deal, The Financial Times reports.

Investors are wary of Chrysler's US$22 billion loans as they
continue to monitor similar indicators of the industry's health
in the wake of fallout from problems in the market for U.S.
subprime mortgage-related debt and a repricing of risk by
investors, FT observes.

The TCR-Europe reported on May 15, 2007, that an affiliate of
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.

                    Fuel Economy Standards

Meanwhile, Cerberus Chairman John Snow claims that the higher
fleet-wide fuel economy standards passed by the U.S. Senate that
requires new autos to average 35 miles per gallon by 2020 would
risk the survival of the U.S. auto industry, Reuters reveals.

Concurrently, Chrysler, which does not expect to return to
profitability before 2008, is investing US$3 billion in new
plants in Wisconsin, Michigan, Indiana and Mexico intended to
produce a family of more fuel-efficient V-6 engines and
components, Reuters 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.


METRONET RAIL: Enters Administration to Ensure Operations
---------------------------------------------------------
Metronet Rail BCV Ltd. and Metronet Rail SSL Ltd., the companies
responsible for the maintenance and renewal of the Bakerloo,
Central, Victoria, and Waterloo & City lines (BCV) and Circle,
District, Metropolitan, Hammersmith & City and East London lines
(SSL), entered Administration on July 18, 2007.

Under the Public Private Partnership contracts and the Greater
London Authority Act 1999, Alan Bloom, Maggie Mills, Roy Bailey
and Stephen Harris, partners and directors of Ernst & Young LLP,
have been appointed PPP Administrators.

The purpose of the Administration is to ensure the continuation
of both BCV and SSL's maintenance and renewal activities pending
the transfer of the companies' activities to a new operating
company with the intention that there should be no noticeable
impact on the Tube network or passenger services.

The Directors of BCV and SSL will continue in office and will
work with the PPP Administrators.  The PPP Administrators have
obtained an order from the Court ensuring that all day to day
responsibilities within Metronet rest with the existing
management team.

Metronet directors and staff are working closely with the PPP
Administrator and their staff and with London Underground to
ensure that the infrastructure it is responsible for is safely
maintained, and to ensure the continued safe and reliable
operation of London Underground services.

Staff should continue to undertake all their responsibilities
and will be paid in the normal course of business.

Direct third party creditors will be paid their arrears of
approved invoices for work done or goods delivered that are
outstanding as at the date of appointment, in the normal payment
terms.  The PPP Administrators will be having separate
conversations with the shareholder companies and their
subsidiaries/affiliates in relation to their arrangements.

Going forward, suppliers will be paid for approved invoices at
their usual rates and on existing terms and conditions agreed
with Metronet for work carried out (or goods delivered) during
the PPP Administration.

Passengers should be assured that all essential maintenance and
safety work will continue to be undertaken.

"I have directed Transport for London, under the powers given to
me under the Greater London Authority Act, to petition the
courts to make a PPP administration order in relation to
Metronet,” London Mayor Ken Livingstone said.  "My message to
all Tube users is that they should be assured that this will not
undermine services and that all trains will continue to run and
all stations will remain open."

"London Underground routinely carries out business continuity
planning and treats failure of any of its key suppliers as a key
business risk that it keeps under continuous review,” LU
Managing Director Tim O'Toole said.  "Our priority is the
delivery of a safe and reliable Tube service for passengers and
therefore we had no option but to undertake considerable
planning for the possibility that Metronet's financial
difficulties would require it to enter Administration.”

"We will be working with the Mayor, Government and the PPP
Administrator to ensure that the renewal of the Tube is delayed
as little as possible,” Mr. O’Toole added.

On July 18, 2007, the Boards of Metronet Rail BCV Limited and
Metronet Rail SSL Limited had asked the Mayor to seek the
appointment of a PPP Administrator for both companies following
a period of financial uncertainty.

On July 16, 2007, Chris Bolt, the statutory Arbiter for the
London Underground PPP Agreements, revealed that his draft
Interim Direction, as part of an Extraordinary Review process
which commenced for Metronet Rail BCV at the end of June, would
result in an increase in the Infrastructure Service Charge (ISC)
to be received by that company of GBP121 million, beginning in
January 2008.

Metronet Rail BCV requires additional funding to enable it to
carry out its contractual obligations during the period of the
Extraordinary Review.

This company has now established that it has no access to such
further funds.  Metronet Rail BCV will therefore be unable to
carry out its contract and has asked the Mayor to seek the
appointment of a PPP Administrator.

Applying the logic of the PPP Arbiter's draft direction to the
circumstances of Metronet Rail SSL, the Board of this
infrastructure company has come to the conclusion that any
application for Extraordinary Review and Interim Determination
would come to a similar position.  It has therefore also asked
the Mayor to seek the appointment of a PPP Administrator for
Metronet Rail SSL.

                     Extraordinary Review

On June 29, 2007, The PPP Arbiter confirmed that he has received
a reference from Metronet for an Extraordinary Review of the PPP
Agreement covering the BCV lines.

In an Extraordinary Review, the Arbiter is asked to address two
questions:

   -- what level of costs would be incurred (and what level of
      performance revenue earned) by an Infraco in performing
      its obligations in an overall efficient and economic
      manner and in accordance with Good Industry Practice over
      the first 7-1/2 years of the contract? and

   -- in the light of that, what change in the amount and timing
      of ISC payable by London Underground is appropriate?

In February 2007, Mr. Livingstone called for Metronet to seek an
Extraordinary Review by the PPP Arbiter, to try to resolve the
issue of massive cost overruns.

The Mayor also made clear that he would not allow the cost of
Metronet's inefficient performance to fall on London by bailing
them out.  It is also crucial that the upgrade and renewal of
the London Underground, also known as the Tube, vital to
London's future prosperity and growth, must proceed as planned
and cannot suffer any delay.

In November 2006, the PPP Arbiter published his first Annual
Review of Metronet's performance.  The report concluded that
overall, Metronet has not performed in an economic and efficient
manner, or in line with Good Industry Practice.

The Mayor's call for an Extraordinary Review follows advice from
London Underground Managing Director Tim O'Toole that
Metronet's financial performance has not improved and that the
cost overruns have not been brought under control.

A TCR-Europe report relates the financial overrun is higher than
the projected GBP750 million in November 2006.  It is said to
have escalated to around GBP1 billion.

                          Write-Offs

* Bombardier

Bombardier has decided to write-off its investment in Metronet
following the release of the PPP Arbiter’s draft directions on
interim ISC for Metronet Rail BCV Ltd. issued on July 16, 2007.
Given the uncertainties regarding Metronet’s funding position
following the Arbiter’s draft directions, Bombardier will record
a write-off of approximately US$164 million (GBP82 million) in
the second quarter of fiscal year 2008.

Bombardier’s turnkey supply contracts with Metronet, currently
valued at approximately GBP3.3 billion (US$6.7 billion), are for
new trains, signaling, refurbishment of trains and fleet
maintenance activities.  These supply contracts are progressing
well and Bombardier will continue to work on them as per the
requirements contained in its contracts.  Bombardier remains
fully committed to deliver a world class, safe and reliable Tube
for London.

* Balfour Beatty

In its 2007 interim trading update on June 26, 2007, at which
time the Metronet concessions were going concerns, Balfour
Beatty, which has a 20% interest in of Metronet BCV Ltd. and
Metronet SSL Ltd., disclosed that there would be an exceptional
charge of approximately GBP100 million in its half-year accounts
in respect of its interest in Metronet.  This arose in the light
of the level of unanticipated costs associated with Metronet’s
capital programs and Metronet’s funding position at that time.
The charge comprised, largely, the write-off of Metronet equity
and the write-back of profits in respect of the equity
investment, recognized in previous years.  In the light of this
application, the exceptional charge may be higher, with the
final sum reflecting the extent to which day-to-day trading
balances between Balfour Beatty operating and affiliate
companies and Metronet are recovered.

Balfour Beatty will work closely with Metronet, London
Underground and the Administrator in order to ensure that the
daily operations of the tube remain unaffected over the coming
period.  The company remains committed to the creation of a
world-class underground system for London and will continue to
provide such services to London Underground as required and
requested under the new ownership structure which succeeds
Metronet.

* WS Atkins

WS Atkins plc, one of the five shareholders of The Metronet Rail
Group, said its financial results for the year ended March 31,
2007 and was adversely impacted by an exceptional loss of
GBP121.3 million (GBP120.1 million after tax) in relation to the
Metronet Enterprise.  This loss includes an impairment write-
down which reduces the carrying value of the Group's investment
in Metronet to GBPnil.

As previously reported in the TCR-Europe on July 13, Keith
Clarke, chief executive of WS Atkins, 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 PPP consortium, Sarah Richardson writes for weekly
construction magazine Building.

                        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.


METRONET RAIL: Moody's Cuts Rating to B1 on High Debt Risk
----------------------------------------------------------
Moody's Investors Service downgraded to B1 from Ba2 the senior
secured un-guaranteed debt ratings of both Metronet Rail BCV
Finance plc and of Metronet Rail SSL Finance Plc.

This concludes the review of the two entities' ratings that was
originally initiated on May 8, 2007.  At the same time, the Aaa
guaranteed debt ratings of BCV Finance and SSL Finance have been
affirmed.

Moody's notes that the debt raised by BCV Finance is on-lent to
Metronet Rail BCV Limited and the debt raised by SSL Finance is
on-lent to Metronet Rail SSL Limited.  The debt raised was used
to finance the operation, maintenance and asset upgrade of part
of London Underground.

The downgrade reflects the fact that both BCV and SSL entered
into PPP Administration on Wednesday, and that consequently
there is a relatively greater risk of debt impairment than
previously embedded within Moody's ratings.

Moody's previous rating action on these issuers (June 29, 2007)
was to downgrade the ratings to Ba2 and maintain them on review
for further downgrade, reflecting the fact that committed
funding was not currently available, mitigated by the
possibility that BCV Finance and SSL Finance bankers would
reinstate funding availability.

The B1 ratings of both BCV Finance and SSL Finance reflect the
increased probability of default implied by a PPP Administration
of BCV and SSL, given that the finance companies' source of cash
flow is subject to an insolvency procedure, and the uncertainty
surrounding the prospects for full repayment of senior debt.
However, the ratings also recognize the probability that in the
shorter term BCV Finance and SSL Finance may have access to
sufficient cash balances to meet debt service on a timely basis,
which should give time for the senior debt creditors to
negotiate a financing solution with the PPP Administrators and
LUL.

Moody's believes that both finance companies will most likely
remain solvent for the time being and should continue to make
timely payments of interest over the short term; this could come
from either cash balances in the relevant finance company or
cash flow from BCV and SSL or direct from LUL.

The longer term prospects for full debt repayment are currently
uncertain.  However, prospects should become clearer as the PPP
Administration progresses and exit solutions for BCV and SSL are
developed.  A critical part of the exit from PPP Administration
will be either a repayment, restructuring or refinancing of the
existing rated debt.  There is no clarity as to whether debt
will be repaid in full at this juncture.  However, the senior
debt creditors' position is underpinned by the option they have
to put their debt to LUL in exchange for an Underpinned Amount,
which is defined as a minimum of 95% of the senior debt
outstanding at that time.

The rating outlook is negative reflecting the downside risks
inherent in BCV Finance and SSL Finance's current financial
situation.  The rating could be downgraded if Moody's believes
that BCV Finance or SSL Finance either:

   (1) are unlikely to have access to cash to meet interest
       payments in the near term;

   (2) are subject to an formal insolvency procedure; or

   (3) their debt has a materially greater risk of debt
       impairment over the short to medium term than is
       currently embedded within the rating.

This rating action, Metronet Rail BCV Finance plc has these
guaranteed debt ratings outstanding:

   -- GBP350 million Guaranteed Secured Fixed-Rate Bonds due
      2032: Aaa (guaranteed by Ambac Assurance UK Limited).

   -- GBP165 million Guaranteed Secured Index Linked Bonds due
      2032: Aaa (guaranteed by Financial Security Assurance
      (U.K.) Limited).

These ratings of Metronet Rail BCV Finance plc are outstanding
with a negative outlook:

   -- Underlying Ratings of the above two bonds: B1.

   -- GBP510 million of senior secured bank loan facilities: B1.

Further to this rating action, Metronet Rail SSL Finance plc has
these guaranteed debt ratings outstanding:

   -- GBP350 million Guaranteed Secured Fixed-Rate Bonds due
      2032: Aaa (guaranteed by Financial Security Assurance
     (U.K.) Limited)

   -- GBP165 million Guaranteed Secured Index Linked Bonds due
      2032: Aaa (guaranteed by Ambac Assurance UK Limited)

These ratings of Metronet Rail SSL Finance plc are outstanding
with a negative outlook:

   -- Underlying Ratings of the above two bonds: B1.

   -- GBP510 million of senior secured bank loan facilities: B1.

Metronet Rail BCV Finance plc is a financing conduit that raises
finance and on-lends the proceeds to Metronet Rail BCV Limited,
and Metronet Rail SSL Finance plc is a financing conduit that
raises finance and on-lends the proceeds to Metronet Rail SSL
Limited.  Metronet Rail BCV Limited and Metronet Rail SSL
Limited are companies that provide infrastructure upgrade,
operation and maintenance services to London Underground Limited
under the terms of the Service Contracts which form part of the
London Underground Public Private Partnership.


REFCO INC: Bawag’s US$140 Mln Case Settlement Gets Final Okay
-------------------------------------------------------------
The U.S. District Court for the Southern District of New York
granted final approval to a US$140 million settlement by
Austria’s bank BAWAG P.S.K. Bank Fuer Arbeit und Wirtschaft und
Osterreichische Postsparkasse Aktiengesellschaftand of claims it
faces in a suit over the collapse of Refco Inc., according to
the Associated Press.

Judge Gerard F. Lynch signed the agreement wherein Bawag will
pay US$140 million to its investors as well as support them in
going after Refco’s former chief executive Philip R. Bennett and
other officers.  Bawag is accused of helping Mr. Bennett and
others conceal Refco's true financial position.

The settlement covers persons or entities that purchased or
otherwise acquired Refco Group Ltd., LLC/ Refco Finance Inc. 9%
Senior Subordinated Notes due 2012 (CUSIP Nos. 75866HAA5 and/or
75866HAC1) and/or Refco, Inc. common stock (CUSIP No. 75866G109)
between Aug. 5, 2004 and Oct. 17, 2005.

In the partial settlement, Bawag agreed to pay $675 million as
well as US$337.5 million payment to its aggravated shareholders
through a compensation fund.

Bawag also made the Justice Department sign a non-prosecution
agreement.

Plaintiffs’ lawyer John P. Coffey said that they will continue
to pursue the remaining defendants -- Mr. Bennett, Bawag’s
former chief financial officer Robert C. Trosten and former
president Tone N. Grant -- wherein a civil trial is expected
sometime in 2008.

                        Case Background

The suit, filed in the U.S. District Court for the Southern
District of New York, was consolidated in April 2006 (Class
Action Reporter, April 7, 2006).

It claimed the collapsed commodity brokerage hid more than
US$5 billion off its books, far more than previously thought.
It also accuses company executives, company auditors, and
investment bankers of negligence.

This discovery of the bad debts caused the collapse of the
company a mere two months after its Aug. 10, 2005, initial
public offering of common stock, and only 14 months after its
issuance of 9% Senior Subordinated Notes due 2012.  The company
filed the fourth largest bankruptcy in U.S. history as a result.

The suit is "In re Refco, Inc. Securities Litigation, Master
File No. 05 Civ. 8626 (GEL)," filed in the U.S. District Court
for the Southern District of New York under Judge Gerard E.
Lynch.

Representing the plaintiffs are:

     (1) Max W. Berger (MB-5010), John P. Coffey  (JC-3832),
         John C. Browne (JB-0391) and Noam N. Mandel (NM-0203)
         of Bernstein Litowitz Berg & Grossmann, LLP, 1285
         Avenue of the Americas, New York, NY 10019, Phone:
         (212) 554-1400, Fax: (212) 554-1444; and

     (2) Stuart M. Grant (SG-8157), James J. Sabella (JS-5454),
         Megan D. McIntyre, Jeff A. Almeida, Christine M.
         Mackintosh and Jill Agro of Grant & Eisenhofer, P.A.,
         Phone: (646) 722-8500 and (302) 622-7000, Fax: (646)
         722-8501 and (302) 622-7100

For more details, contact Refco, Inc. Securities Litigation
c/o The Garden City Group, Inc., PO Box 9087, Dublin, OH 43017-
0987, Web site: http://www.refcosecuritieslitigation.com/

                           About Refco

Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operationsin 14 countries and an extensive global institutional
and retail client base.  Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore.  In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.

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


REFCO INC: Examiner Says Auditors & Counsel May Face Claims
-----------------------------------------------------------
Joshua R. Hochberg, the independent examiner appointed by the
Court overseeing the bankruptcy proceedings of Refco, Inc., and
23 of its affiliated companies, delivered to the U.S. Bankruptcy
Court for the Southern District of New York a final report
documenting his findings and conclusions on potential causes of
action that led to the Debtors' filing for Chapter 11 protection
on Oct. 17, 2005.

The Final Report, which was previously filed under temporary
seal, was filed as a public record in accordance with the Hon.
Robert D. Drain's order to unseal the "highly confidential
information" contained in the report.

The scope of the examination included the investigation of, and
reporting on, potential claims which might be brought by the
Debtors' estates against any of Refco's prepetition
professionals, and any causes of action that might be brought to
recover the US$82,200,000 dividend paid in connection with the
initial public offering, or damages arising from its payment.

The examination also included consideration of how the alleged
fraud was perpetrated through the use of certain "Round Trip
Loans" in order to understand whether or not the professionals
were negligent or complicit.

Under the Final Report, the Examiner evaluated potential
liability with respect to these entities and subject matters:

  (1) Arthur Andersen LLP was Refco's outside auditor from at
      least the late 1980's to 2002.

  (2) Grant Thornton LLP was Refco's outside auditor from
      October 2002 until the Petition Date.

  (3) Ernst & Young LLP provided various services to Refco
      entities, including tax accounting and consulting
      services, from 1991 until 2004.

  (4) Levine Jacobs & Company, L.L.C. provided tax accounting
      services to various Refco entities from 2004 to 2005.

  (5) Mayer, Brown, Rowe & Maw LLP served as the main outside
      counsel for Refco and its related entities from 1994
      until the Petition Date.

  (6) Weil, Gotshal & Manges LLP represented various Thomas
      H. Lee entities in connection with the LBO in 2004, and
      thereafter represented both Thomas H. Lee and various
      Refco entities and certain members of Refco's Board of
      Directors in connection with various matters including
      Refco's IPO.

                   The RGHI Receivable Scheme

According to the Examiner, Messrs. Bennett, Trosten, and Grant
are individuals under indictment for orchestrating and
participating in a massive fraudulent scheme designed to
manipulate the financial statements of various Refco companies
that were publicly reported and supplied to lending institutions
and to regulators.  Those Refco companies' financial statements
were prepared on a consolidated basis under Refco Group Ltd.,
LLC.  The financial information of Refco Group Holdings, Inc., a
holding company owned principally by Mr. Bennett, was not
consolidated with Refco and was not public, the Examiner says.

In August 2005, the Examiner relates, Refco made an Initial
Public Offering of its stock and was subsequently listed on the
New York Stock Exchange.  In October 2005, he notes, revelations
concerning the "fraudulent manipulation of Refco's financial
statements" precipitated the company's bankruptcy and losses of
hundreds of millions of dollars by creditors and equity holders.

The roots of the scheme that was used to conceal losses and
money owed to Refco by RGHI began at least in 1997 or 1998, the
Examiner continues.  At that time, he says, Refco suffered
millions of dollars in losses as certain of its customers could
not make good on their own trading losses.

"There is evidence that [Mr.] Bennett and others caused these
bad debts to be sold or transferred from Refco entities to the
unconsolidated parent company, RGHI," the Examiner states.  "As
a result, the bad debts would not have to be recognized as
losses on the books of a Refco company.

The "sale" price of the bad debt transferred directly or
indirectly to RGHI was treated as a receivable, due from RGHI,
on Refco's books, the Examiner notes.  Over time, the amount of
the RGHI Receivable fluctuated as interest accrued, other bad
debts were transferred to RGHI, and certain fees and computer
expenses were also transferred out of the consolidated reporting
Refco companies.

                        Round Trip Loans

To hide the RGHI Receivable, as each reporting period came to a
close, Mr. Bennett, et al., caused the consolidated reporting
Refco companies to manipulate their books through a series of
transactions commonly referred to as "Round Trip Loans," the
Examiner states in the Final Report.

"The loans made it appear that the RGHI Receivable was due from
unrelated third parties rather than from RGHI," the Examiner
says.  "This concealment of the true nature of the RGHI
Receivable also provided comfort to outsiders that the
receivable was collectible."

The Round Trip Loans were two short term loans of several weeks
duration that spanned the end of Refco's fiscal year-end or
quarterly financial reporting periods, the Examiner explains.
The first loan was made by a Refco entity to a third party at a
certain interest rate for a certain period of time.  The second
one was made by that same third party to RGHI for the same
period of time, but at a higher interest rate.  The repayment of
the loan by RGHI to the third party was guaranteed by RGL and
the third party was also indemnified by RGL against any loss or
expense for entering into the Round Trip Loan.

The Examiner states that the funds or credit advanced for the
loan to the third party were deposited into the third party's
account with RCM.  Those funds were then transferred at the
third party's request from the third party's account at RCM to
RGHI's account at RCM.

The effect of those transactions was to reduce RGHI's receivable
balance owed to RCM by the amount of the Round Trip Loan, and to
substitute a receivable in that amount from the third party, the
Examiner states.  In most cases, those were bookkeeping entries
and no cash actually "moved," he relates.  After the end of the
applicable reporting period, the process was reversed and
unwound, he says.

"These Round Trip Loans were sham transactions with no economic
substance which were entered into solely to 'dress up' Refco's
consolidated financial statements," the Examiner states.  "The
loans involved no risk to the third party because they included
secret guarantees by Refco that were not reflected on Refco's
books.  The guarantees obligated Refco to pay back RGHI's
obligation in case RGHI defaulted."

The loans were also falsely reported to be "repo" transactions
when, in fact, unlike a true repo, there was no security on
deposit at Refco to act as collateral for the loan, the Examiner
adds.  The effect of the loans was to expose Refco to risk and
to cause Refco to pay interest, with no resulting economic
benefit to Refco.

The Examiner further states: "Mr. Bennett, et al., caused Refco
to engage in those schemes at every annual reporting period from
at least 1998 through 2005.  Starting in 2000, attorneys at
Mayer Brown prepared the loan documentation and the guarantee
and otherwise assisted with the loan process for virtually every
Round Trip Loan.  At the end of each financial reporting period,
Arthur Andersen and later, Grant Thornton, audited RGL's books
and issued unqualified audit opinions that did not disclose the
Round Trip Loans or the full extent of the related-party RGHI
Receivable."

The Examiner points out that the scheme to conceal the large
related-party receivable went undetected during the course of a
leveraged buyout transaction in August 2004.  It was also
undetected when certain senior subordinated notes issued by
Refco were registered with the SEC in April 2005 in a public
exchange offering, and during the IPO in August 2005, the
Examiner notes.  After the IPO, a new Refco employee discovered
the irregularities on the books and finally brought them to the
attention of RGL's Audit Committee, he reveals.

            Examiner Points Fingers at Top Law Firms

The Examiner concludes in his Final Report that the Debtors'
estates could assert claims for relief, sufficient to withstand
a motion to dismiss, against certain of Refco's prepetition
professionals who contributed to, or failed to prevent, the harm
suffered by Refco, including:

  (a) claims for professional negligence against Grant Thornton,
      Ernst & Young, and Mayer Brown;

  (b) claims for aiding and abetting fraud and breaches of
      fiduciary duty against Mayer Brown and, although it is a
      close question, Ernst & Young; and

  (c) claims for avoidance and recovery of preferential
      transfers against Refco's professionals who received
      payments on or within the 90-days before the Petition
      Date.

As to Weil Gotshal, although it is a close question, the
Examiner concludes that there are facts that could support an
allegation that the firm failed to adhere to the standard of
care applicable to its representation of Refco.

The Examiner determines that additional claims might be asserted
against certain of the directors responsible for the declaration
of the US$82,200,000 Dividend and those who received the
dividend,
including:

  -- claims for breaches of fiduciary duties and violation of
     Delaware General Corporate Law against Mr. Bennett; and

  -- claims for avoidance and recovery of fraudulent conveyances
     and preferential transfers, and damages, against Mr.
     Bennett or RGHI and Thomas H. Lee entities as the
     recipients of the Dividend.

The Examiner believes further investigation is warranted to
determine whether evidence exists to support other claims,
including:

  * claims for aiding and abetting fraud and breaches of
    fiduciary duty against Arthur Andersen and Grant Thornton;
    and

  * claims for damages arising out of the declaration of the
    Dividend against certain other members of Refco's Board
    of Directors.

              Claims Defense & Counter-Defenses

The Examiner tells the Court that several significant factual
and legal defenses are potentially available to all parties
against whom claims may be asserted.  Among the most significant
potential defenses, he says, are the "Wagoner" rule and, in some
cases, the statute of limitations.

The Wagoner rule, or the doctrine of in pari delicto, the
Examiner explains, may preclude a bankruptcy trustee from
asserting claims on behalf of the company against third parties
for injuries that arise out of wrongful acts or misconduct
committed by the company's controlling managers.

According to The Financial Times Ltd., Ernst & Young said in a
statement: "We believe our tax work fully complied with
professional standards.  We resigned in 2003, well before
Refco's 2005 public offering, after the company's former
management refused to allow us to meet with its outside
auditors."

Financial Times also reports that Grant Thornton, which served
as Refco's auditors, commented: "Responsibility for the Refco
collapse lies [with the firm's former management] . . . Our
audit work met professional standards and statements by the
examiner for the bankruptcy estate do not reflect the context or
the facts as we know them to be."

Mayer Brown was unavailable for comment, Financial Times
discloses.

The Examiner's appointment was approved by the Court on
March 22, 2006.  McKenna Long & Aldridge LLP was retained as the
Examiner's counsel.

A full-text copy of the Examiner's 416-page Final Report is
available at no charge at:

http://www.bankrupt.com/misc/refcoexaminerfinalreport.pdf

                           About Refco

Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operationsin 14 countries and an extensive global institutional
and retail client base.  Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore.  In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.

The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.  (Refco Bankruptcy News, Issue No. 65; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).


TISCALI SPA: Mulls Acquisition for U.K. Expansion
-------------------------------------------------
Tiscali S.p.A. may seek more acquisitions in the United Kingdom
following its purchase of Pipex Communications Plc's broadband
and voice unit, Chiara Remondini and Elena Distaso of Bloomberg
News reports citing Tiscali CEO Tommaso Pompei.

"Tiscali will consider all possible opportunities that may
create value as long as they don't affect our 2008 targets,"
Mr. Pompei was quoted by Bloomberg News as saying.  "We're
working to grow significantly in Italy and the U.K.,"

As reported in the TCR-Europe on July 18, 2007, Tiscali and
Pipex entered into an agreement for the acquisition of the
broadband and voice division of Pipex by Tiscali U.K. Holdings
Ltd.  The enterprise value agreed for the acquisition is GBP210
million.

Tiscali is currently expanding its operations in Italy and the
U.K., where it has a large customer base.

"The only country outside Italy where Tiscali has been a success
story is the U.K.," said Alessandro Frigerio of RMJ Sgr told
Bloomberg News.  "It's a market they know well and it's positive
that they've decided to invest in it."

Tiscali has confirmed its forecast of a net profit and a free
cash flow in 2008.

                          About Tiscali

Headquartered in Cagliari, Italy, Tiscali S.p.A. --
http://www.tiscali.com/-- offers Internet access in the
country.  The group also operates in other European countries,
serving more than seven million subscribers, of which over 1.5
million are broadband users.

As reported in the TCR-Europe on March 22, 2007, the company
registered EUR136.16 million in net losses on EUR678.48 million
in net revenues for the full year ended Dec. 31, 2006, compared
with EUR12.81 million net losses on EUR530.85 billion in
revenues for full year 2005.

As reported in the TCR-Europe on Oct. 13, 2006, Tiscali's Board
of Directors approved a three-year plan for 2007-2010, which
calls for the concentration of its core business in Italy and in
the United Kingdom.

                            *   *   *

As reported in the TCR-Europe on June 27, 2007, Fitch Ratings
has upgraded Italy-based Tiscali S.p.A.'s Long-term Issuer
Default rating to 'B-' from 'CCC' and removed it from Rating
Watch Positive.  Fitch said a stable outlook is assigned.


* BOOK REVIEW: Trump: The Saga of America's Most Powerful Real
               Estate Baron
--------------------------------------------------------------
Author:     Jerome Tuccille
Publisher:  Beard Books
Hardcover:  264 pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1587982234/internetbankrupt

This book is the remarkable unfinished saga of an extraordinary
American.  When this book was first published in 1985, Donald J.
Trump was scarcely into his fourth decade.  He had made the leap
from local New York City boy who had made good to a national and
even world-prominent figure.

It all started some 10 years earlier when Trump gambled that New
York City would rebound from its financial morass.  People
laughed and scoffed at the time, but he was right, and he has
profited mightily from his faith and vision.

This is compelling reading about the inside machinations of his
glamorous world.

                            *********

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.


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