TCREUR_Public/070731.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

             Tuesday, July 31, 2007, Vol. 8, No. 150

                            Headlines


A U S T R I A

ASBOECK – HAIRLINES: Wels Court Orders Business Shutdown
FBH FARBEN: Ried im Innkreis Court Orders Business Shutdown
G.U.M. MOCK: Creditors' Meeting Slated for August 9
HELMUT FESSLER: Creditors' Meeting Slated for August 9
MAXXIMAL TEXTIL: Claims Registration Period Ends September 17

MESSNER LLC: Estate Administrator Declares Insufficient Assets
SKILIFTE UNKEN-HEUTAL: Salzburg Court Orders Business Shutdown
WASCHEREI HANS: Feldkirch Court Orders Business Shutdown


B E L G I U M

CHIQUITA BRANDS: S&P Holds Ratings Under Negative CreditWatch
GOODYEAR TIRE: Earns US$56 Million in Second Quarter of 2007
SOLUTIA INC: Wants Exclusive Plan Filing Date Moved to Dec. 31


D E N M A R K

BLOCKBUSTER INC: Second Quarter Revenue Slips 2.8% to US$1.2 Bln


F I N L A N D

FLEXTRONICS INT'L: Earns US$134 Million in First Quarter 2007


F R A N C E

ACXIOM(R) CORP: Posts US$11.5 Million Net Loss for Q1 2008
DELISTAR: Failure to Find Buyer Cues Liquidation Procedure
GAP INC: Appoints Glenn Murphy as Chairman & CEO
HEXCEL CORP: Net Sales Up 5.8% in Second Quarter 2007
RHODIA SA: Extends Cooperation Agreement with CNRS

XEROX CORP: Revenues Up 6% in Second Quarter 2007


G E R M A N Y

ARMSTRONG WORLD: Shareholders Approve AHI Dissolution Plan
DAIMLERCHRYSLER: Unit Seeks to Cut Dealer Ranks to Stem Losses
DAIMLERCHRYSLER: Chrysler Offers Lifetime Warranty to Hike Sales
DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group
MARTINI-SOMMER: Claims Registration Period Ends August 31

MTU AERO: Raises Earnings Forecast for Financial Year 2007
MTU AERO: Appoints Egon W. Behle as New Chief Executive Officer


I R E L A N D

ELAN CORP: June 30 Balance Sheet Upside Down by US$109.2 Million


K A Z A K H S T A N

ALMATY OIL: Proof of Claim Deadline Slated for September 7
BEREL LLP: Creditors Must File Claims September 7
D-ENERGOTRANZIT LLP: Claims Filing Period Ends September 5
MUKASH OYIL: Creditors' Claims Due on September 5
PRIDE INTERNATIONAL: Moody’s Affirms Ba1 Corporate Family Rating

SHAHAN-ATA LLP: Claims Registration Ends September 7


K Y R G Y Z S T A N

TRIZA LLC: Creditors Must File Claims by September 7


R U S S I A

ADYGEYSKOE TRADING: Court Starts Bankruptcy Supervision Process
AGIS LLC: Creditors Must File Claims by August 30
BOGATYR LLC: Stavropol Bankruptcy Hearing Slated for Aug. 16
COMPLEX CJSC: Creditors Must File Claims by August 30
EAR OJSC: Orenburg Bankruptcy Hearing Slated for September 25

INDUSTRY CJSC: Creditors Must File Claims by August 30
INTER-VOLGA OJSC: Creditors Must File Claims by September 7
ISKRA CJSC: Court Names E. Mikhaylov as Insolvency Manager
MARISK CJSC: Creditors Must File Claims by August 7
OMSK-TIRE KHABAROVSK: Creditors Must File Claims by August 30

ORDZHONIKIDZEVSKIY WOOD: Creditors Must File Claims by Aug. 30
PECHOR-MOR-NEFT:  Creditors Must File Claims by September 7
ROSNEFT OIL: VSNK Board Asks Shareholders to Accept Buyout Offer
SABLE OJSC: Creditors Must File Claims by August 7
UKHRA-WOOD CJSC: Court Names E. Ryndenko as Insolvency Manager  


S P A I N

PYME Valencia: Fitch Junks EUR15.3 Million Class E Notes


S W I T Z E R L A N D

ATLAS TREASURY: Creditors' Liquidation Claims Due August 31
BEST PACK: Basel Court Starts Bankruptcy Proceedings
BISSEGGER IMMOBILIEN: Creditors' Liquidation Claims Due Aug. 31
E. HELLER: Creditors' Liquidation Claims Due October 15
FLORFIS JSC: Creditors' Liquidation Claims Due August 13

HCA INC: S&P Affirms 'BB-' Rating on Second-Lien Debt
HORST SCHMIDL: Creditors' Liquidation Claims Due August 31
KOCH BAUMONTAGEN: Creditors' Liquidation Claims Due August 8
KREBS & Co: Creditors' Liquidation Claims Due August 24
VADEX JSC: Creditors' Liquidation Claims Due August 31

VERFATEC BRUGG: Bern Court Starts Bankruptcy Proceedings


U K R A I N E

AGRO-ALIANCE LLC: Creditors Must File Claims by August 2
KOLUMNA LLC: Creditors Must File Claims by August 2
MANAS-PRIM LLC: Creditors Must File Claims by August 2
MLINOV PETROLEUM: Creditors Must File Claims by August 2

MONOLIT LLC: Creditors Must File Claims by August 2


U N I T E D   K I N G D O M

CELESTICA INC: Second Qtr. 2007 Revenue Decreases to US$1.9 Bln
COMPUTER SERVICES: Taps A. Poxon to Liquidate Assets
ENIGMA RETAIL: Claims Filing Period Ends September 7
EUROHOME MORTGAGES: Fitch Rates EUR2.7 Mln Class X Notes at BB+
FORD MOTOR: Moody’s Holds B3 CFR with Negative Outlook

HOST HOTELS: Net Income Decreases to US$149 Mln in 2nd Qtr. 2007
INEOS GROUP: S&P Affirms B+ Ratings on Expected Results
IT’S YOUR GROUP: Brings In Liquidators from Wilkins Kennedy
LEVEL 3: Posts US$202 Million Net Loss in Second Quarter of 2007
LIVE NATION: Moody’s Lifts Rating to Ba3 on Term Loan & Facility

MAX VISION: High Court to Hear Wind-Up Petition on August 13
MEGA BRANDS: Weak Leverage Cues Moody's B1 Corp. Family Rating
MERCATOR CLO III: S&P Rates EUR10.9 B-2 Notes at BB-
PLAS TECH: High Court to Hear Wind-Up Petition on August 13
RELISYS LTD: Joint Liquidators Take Over Operations

SMURFIT KAPPA: Completes Amendment of Senior Credit Facilities

* Large Companies with Insolvent Balance Sheet                             

                            *********

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


ASBOECK – HAIRLINES: Wels Court Orders Business Shutdown
--------------------------------------------------------
The Land Court of Wels entered June 27 an order shutting down
the business of LLC ASBOECK – HAIRLINES (FN 219871s).

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

The estate administrator can be reached at:

         Mag. Stefan Weidinger
         Dr. Koss-Strasse 3
         4600 Wels
         Austria
         Tel: 07242/67354-0
         Fax: 07242/67354-50
         E-mail: kanzlei@holme.at  

Headquartered in Wels, Austria, the Debtor declared bankruptcy
on June 25 (Bankr. Case No 20 S 80/07a).


FBH FARBEN: Ried im Innkreis Court Orders Business Shutdown
-----------------------------------------------------------
The Land Court of Ried im Innkreis entered July 3 an order
shutting down the business of LLC FBH Farben- und
Heimwerkebedarf Handels & Co. KG (FN 18426y).

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

The estate administrator can be reached at:

         Dr. Peter Bruendl
         Burggraben 6
         4780 Scharding
         Austria
         Tel: 07712 / 2746
         Fax: 07712 / 2746 - 22
         E-mail: bruendl-rachbauer@aon.at  

Headquartered in St. Florian am Inn, Austria, the Debtor
declared bankruptcy on June 25 (Bankr. Case No 17 S 21/07f).


G.U.M. MOCK: Creditors' Meeting Slated for August 9
---------------------------------------------------
Creditors owed money by OEG G. u. M. MOCK (FN 239123b) are
encouraged to attend the creditors' meeting at 10:30 a.m.
on Aug. 9 for the examination of claims.

The meeting of creditors will be held at:

         The Land Court of Graz
         Room 222
         Second Floor
         Graz
         Austria

Headquartered in Graz, Austria, the Debtor declared bankruptcy
on June 21 (Bankr. Case No. 26 S 42/07g).  Elisabeth Simma
serves as the court-appointed estate administrator of the
bankrupt estate.

The estate administrator can be reached at:

         Dr. Elisabeth Simma
         Kaiserfeldgasse 15/II
         8010 Graz
         Austria
         Tel: 0316/827720
         Fax: 0316/827720-28
         E-mail: office@simma-stoff.at  


HELMUT FESSLER: Creditors' Meeting Slated for August 9
------------------------------------------------------
Creditors owed money by LLC Helmut Fessler (FN 246804y) are
encouraged to attend the creditors' meeting at 10:20 a.m.
on Aug. 9 for the examination of claims.

The meeting of creditors will be held at:

         The Land Court of Feldkirch
         Hall 45
         First Floor
         Feldkirch
         Austria

Headquartered in Hoechst, Austria, the Debtor declared
bankruptcy on July 5 (Bankr. Case No. 14 S 28/07s).  Matthias
Kucera serves as the court-appointed estate administrator of the
bankrupt estate.

The estate administrator can be reached at:

         Mag. Matthias Kucera
         Hofsteigstrasse 89
         6971 Hard
         Austria
         Tel: 05574/76655
         Fax: 05574/76655-6
         E-mail: rechtsanwalt@kucera.at


MAXXIMAL TEXTIL: Claims Registration Period Ends September 17
-------------------------------------------------------------
Creditors owed money by LLC Maxximal Textil (FN 246434d) have
until Sept. 17 to file written proofs of claim to court-
appointed estate administrator Andreas Haberl at:

         Dr. Andreas Haberl
         Feldgasse 17
         First Floor
         4840 Voecklabruck
         Austria
         Tel: 07672/22500
         Fax: 07672/22500-20
         E-mail: office@h2recht.at    

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on Sept. 27 for the
examination of claims.

The meeting of creditors will be held at:

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

Headquartered in Voecklabruck, Austria, the Debtor declared
bankruptcy on July 3 (Bankr. Case No. 20 S 86/07h).  


MESSNER LLC: Estate Administrator Declares Insufficient Assets
--------------------------------------------------------------
Dr. Herbert Felsberger, the court-appointed estate administrator
for LLC MESSNER (FN 170814y), declared July 5 that the Debtor's
property is insufficient to cover creditors' claim.

The Land Court of Klagenfurt is yet to rule on the estate
administrator's claim.

Headquartered in Voelkermarkt, Austria, the Debtor declared
bankruptcy on June 27 (Bankr. Case No. 40 S 34/07a).

The estate administrator can be reached at:

         Dr. Herbert Felsberger
         Waaggasse 17
         9020 Klagenfurt
         Austria
         Tel: 0463/508840
         Fax: 0463/508840-20
         E-mail: avv.felsgaup@aon.at  


SKILIFTE UNKEN-HEUTAL: Salzburg Court Orders Business Shutdown
--------------------------------------------------------------
The Land Court of Salzburg entered June 28 an order shutting
down the business of LLC Skilifte Unken-Heutal & Co KG (FN
26017k).

Court-appointed estate administrator Wolfgang Kleibel
recommended the business shutdown after determining that the
Debtor's estate is insufficient to cover the creditors' claims.

The estate administrator can be reached at:

         Dr. Wolfgang Kleibel
         Erzabt-Klotz-Strasse 4
         5020 Salzburg
         Austria
         Tel: 0662/84 22 81
         Fax: 0662-842281-29
         E-mail: wolfgang.kleibel@k-b-k.at  

Headquartered in Unken, Austria, the Debtor declared bankruptcy
on June 22 (Bankr. Case No 44 S 21/07y).


WASCHEREI HANS: Feldkirch Court Orders Business Shutdown
--------------------------------------------------------
The Land Court of Feldkirch entered July 5 an order shutting
down the business of LLC Wascherei Hans Troll (FN 62988f).

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

The estate administrator can be reached at:

         Mag. Lukas Pfefferkorn
         Schulgasse 7
         6850 Dornbirn
         Austria
         Tel: 05572/20210
         Fax: 05572/34414
         E-mail: office@ktg.at   

Headquartered in Dornbirn, Austria, the Debtor declared
bankruptcy on June 14 (Bankr. Case No 14 S 25/07z).


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


CHIQUITA BRANDS: S&P Holds Ratings Under Negative CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services said that the ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc. remain
on CreditWatch with negative implications following reports that
the company, in addition to other banana import companies,
received a Statement of Objections from the European Commission.  
The document concerns an ongoing EC investigation regarding
potential violations of European competition laws in the banana
industry.  Based on Chiquita's voluntary notification and
cooperation with the investigation, the EC granted the company
conditional immunity from any fines related to the conduct,
subject to customary conditions.
     
The ratings were initially placed on CreditWatch with negative
implications on May 2, 2007, following weak first-quarter
operating results due to high purchased fruit and other industry
costs and lower local banana prices in Europe.  "We will review
Chiquita's operating and financial plans with management before
resolving the CreditWatch listing, as well as developments in
this EC investigation, and assess the potential for regulatory
sanctions and/or financial penalties as part of our review,"
said Standard & Poor's credit analyst Alison Sullivan.

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others.  It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.


GOODYEAR TIRE: Earns US$56 Million in Second Quarter of 2007
------------------------------------------------------------
(Spain)
The Goodyear Tire & Rubber Company reported second quarter net
income of US$56 million, compared to US$2 million last year.   

The company’s record second quarter tire business sales of
US$4.9 billion, up 4% from last year offsetting softer
conditions in several key markets with a richer product mix.  

The sales improvement reflects the strength of Goodyear's new
product engine as well as the performance of the company's three
emerging markets tire businesses, which increased sales 15% over
2006.  Each of these three businesses achieved record quarterly
sales.

This growth, along with currency-driven sales gains in the
European Union Tire business, offset a 3% decline in North
American Tire sales, primarily due to the company's exit from
certain segments of the private label tire business along with
softer original equipment and commercial replacement markets.

"Our strong second quarter performance demonstrates successful
execution against our strategies to improve our business and
product mix as well as the early stage benefits of a lower cost
structure," Robert J. Keegan, chairman and chief executive
officer, said.  "With the actions we have taken the past four
and a half years, we have created strong platforms for growth
going forward.  Likewise, our improving balance sheet gives us
the flexibility to increase investments aimed at growing our
core consumer and commercial tire businesses."

Total segment operating income from continuing operations was
US$309 million, up 32% from the year-ago period, driven by
significant improvement in North American Tire.  All five of the
company's regional tire businesses achieved higher segment
operating income compared to the second quarter of 2006, with
three setting records.  Improved pricing and product mix
of approximately US$155 million in the second quarter of 2007
more than offset increased raw material costs of approximately
US$55 million.

Second quarter income from continuing operations was US$29
million compared to a 2006 loss from continuing operations of
US$33 million.  All per share amounts are diluted.

The 2007 quarter was also impacted by after-tax debt retirement
expenses of US$47 million, rationalization and accelerated
depreciation costs of US$15 million and a tax benefit to correct
deferred taxes in Colombia of US$11 million.  The second quarter
of 2006 included US$63 million in after-tax rationalization and
accelerated depreciation costs.

                      Business Segments

Asia Pacific Tire, Latin American Tire, European Union Tire and
Eastern Europe, Middle East and Africa Tire reported higher
year-over-year sales, with each setting a second quarter record.   
Additionally, record sales for any quarter were achieved by Asia
Pacific Tire, Latin American Tire and Eastern Europe, Middle
East and Africa Tire.

All five businesses had higher segment operating income compared
to last year, with Asia Pacific Tire, Latin American Tire and
Eastern Europe, Middle East and Africa Tire setting second
quarter records.  Segment operating income for Asia Pacific Tire
was a record for any quarter.

  North American Tire          Second Quarter        Six Months
  (in millions)                2007      2006      2007      
2006
  -------------                --------------      
--------------
  Tire Units                   20.8      23.3      40.1      
46.9
  Sales                      US$2,276    US$2,340    US$4,293    
US$4,579
  Segment Operating Income       53         6        33        
49
  Segment Operating Margin      2.3%      0.3%      0.8%      
1.1%

North American Tire sales were down 3% compared to the 2006
period, primarily due to lower volume resulting from the
company's action to exit certain segments of the private label
tire business as well as weak commercial and original equipment
markets.  This was partially offset by market share gains in
higher-value branded tires, improved pricing and product mix and
higher sales in chemical and other tire related businesses.

Second quarter segment operating income increased 783% compared
to the 2006 period due to improved pricing and product mix of
US$69 million that more than offset increased raw material costs
of approximately US$25 million.

European Union Tire sales increased 6% over the 2006 period as a
result of improved pricing and product mix and a favorable
impact from currency translation of approximately US$80 million,
which more than offset lower volume.

Segment operating income increased 7% compared to the 2006
quarter as pricing and product mix improvements of US$34 million
more than offset US$6 million in higher raw material costs, as
well as increased selling, administrative and general expenses
and lower unit volume.

Eastern Europe, Middle East and Africa Tire sales were up 14%
compared to the 2006 period.  The increase resulted from
improved pricing and product mix and a favorable impact from
currency translation of approximately US$14 million that more
than offset lower unit volume.

Segment operating income improved 7% due to improved pricing and
product mix of US$27 million that more than offset US$2 million
in higher raw material costs.  Higher manufacturing and SAG
costs as well as lower volume also impacted the quarter.

Latin American Tire sales increased 18% from the second quarter
of 2006 due to higher unit volume, improved pricing and product
mix and a favorable impact from currency translation of
approximately US$23 million.

Segment operating income increased 8% from 2006 due to higher
unit volume and a favorable impact from currency translation of
approximately US$17 million, which offset higher manufacturing
costs.  Improved pricing and product mix of US$6 million
partially offset higher raw material costs of approximately
US$18 million.

Asia Pacific Tire sales were 14% higher than the 2006 period
primarily due to improved pricing and product mix and a
favorable impact from currency translation of approximately
US$37 million.

Segment operating income increased 46% in the 2007 quarter,
primarily due to improved pricing and product mix of US$19
million, which more than offset raw material cost increases of
approximately US$4 million.

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  Goodyear employs more than 80,000 people worldwide.

Goodyear maintains Asia-Pacific facilities in Australia, China
and Korea.  Its European bases are located in Austria, Belgium,
France, Germany, Italy, Russia, Spain, and the United Kingdom.
Goodyear's Latin-American operations are located in Argentina,
Brazil, Chile, Colombia, Jamaica, Mexico, and Peru.

                          *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its ratings on
Goodyear Tire & Rubber Co., including its corporate credit
rating to 'BB-' from 'B+'.  In addition, the ratings were
removed from CreditWatch where they were placed with positive
implications on May 10, 2007.  Recovery ratings were not on
CreditWatch.


SOLUTIA INC: Wants Exclusive Plan Filing Date Moved to Dec. 31
--------------------------------------------------------------
Solutia Inc. and its debtor-affiliates' current exclusive
period to file a plan of reorganization ends on July 30, 2007,
and the period of time to solicit acceptances of that plan
ends on Sept. 28, 2007.

The Debtors ask the U.S. Bankruptcy Court for the Southern
District of New York to further extend their Exclusive
Filing Period up to and including Dec. 31, 2007, and
Exclusive Solicitation Period up to and including Feb. 29,
2008.

The Debtors filed their First Amended Plan and related
disclosure statement, as it has been or may be amended, on May
16, 2007.  The modified Plan enjoys the support of many of
Solutia Inc.'s significant stakeholders, including the Official
Committee of Unsecured Creditors, Official Committee of
Solutia's retirees, Monsanto Company, and the Ad Hoc Committee
of Trade Claims Creditors.

Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York,
relates that the Plan is premised on two settlements –- a
settlement between Solutia and Monsanto, and a settlement
between Solutia and the Retirees Committee, Monsanto and the
Creditors Committee.  The Settlements achieve a reallocation of
legacy liabilities and are the cornerstones of Solutia's Plan,
therefore, they must be approved before or in conjunction with
the confirmation of Solutia's Plan.  The Settlements will be
heard on Sept. 5, 2007.

Solutia is revising its Disclosure Statement and drafting the
necessary additional disclosures to comply with the Court's
directions.  In addition, Solutia is preparing for the Sept. 5,
2007 hearing on the Settlements .  Solutia believes that the
Settlements readily meet the standards for approval under
Bankruptcy Rule 9019.

Mr. Henes says that extension of the Exclusive Periods is
necessary to ensure that the Debtors will not be placed in a
position where it is prosecuting the Plan, but due to the
termination of the Exclusive Filing Period, the confirmation
process is disrupted by a recalcitrant stakeholder filing a
competing plan.  That situation could have a material, adverse
impact on the Solutia, its operation and all parties-in-
interest, he tells the Court.

Solutia has acted as the honest broker throughout the Chapter 11
cases in an effort to resolve the differences among its
stakeholder groups and has made significant strides towards a
consensual plan, Mr. Henes relates.  If, however, Solutia cannot
preserve its exclusive right to prosecute the Plan, he points
out that the balance that has permitted the relevant parties-in-
interest to work together towards a consensual plan will be
upset and further progress will be jeopardized.

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


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BLOCKBUSTER INC: Second Quarter Revenue Slips 2.8% to US$1.2 Bln
----------------------------------------------------------------
Blockbuster Inc. reported that its total revenue decreased 2.8%
to US$1.26 billion for the second quarter ended July 1, 2007,
from US$1.3 billion for the second quarter last year.

The company said due to a reduction in rental revenues from the
closure of stores, an unfavorable home video release schedule
and the sale of 217 GAMESTATION stores on May 2, 2007, caused
the decrease in total revenue.  These decreases were partially
offset by an increase in revenues from Blockbuster Inc.

"Our results this quarter clearly reflect continued investment
in our online subscriber growth. Although BLOCKBUSTER Total
Access(TM) allowed us to increase our subscriber base by 600,000
to a total of 3.6 million subscribers, the costs associated with
the program affected our profitability," said Jim Keyes,
Blockbuster Chairman and CEO.  "While we remain committed to
capturing market share in the overall video rental market, we
are absolutely focused on striking an appropriate balance
between growth and enhanced profitability going forward."

The company said that for the second quarter of 2007, net loss
was US$35.3 million, compared with net income of US$68.4 million
for the second quarter of 2006.  The net loss for the second
quarter of 2007 included a US$77.7 million gain related to the
sale of 217 of the Company’s UK-based Gamestation stores and net
income for the second quarter of 2006 was affected by the impact
of US$91.2 million in favorable tax audit settlements.

"To this end, the Company is undergoing a comprehensive review
of its business aimed at identifying and implementing
initiatives designed to revitalize the Company, enhance the
organizational structure and improve profitability" Mr. Keyes
said.  "Our goal is to transform Blockbuster into a company that
quickly responds to customers’ changing needs for convenient
access to media entertainment.  We look forward to communicating
our strategic roadmap later in the year."

A full-text copy of Blockbuster's Second Quarter 2007 Earnings
is available for free at: http://ResearchArchives.com/t/s?21db  

                     About Blockbuster Inc.

Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- provides in-home movie
and game entertainment, with more than 9,000 stores throughout
the Americas, Europe, Asia and Australia.  The company maintains
operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia,
among others.

                         *     *     *

Blockbuster Inc.'s 9% Senior Subordinated Notes due 2012 holds
Moody's Investors Service's Caa2 rating, Standard & Poor's
Ratings Services' CCC+ rating, and Fitch Ratings' CC rating.


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FLEXTRONICS INT'L: Earns US$134 Million in First Quarter 2007
-------------------------------------------------------------
Flextronics International Ltd. reported that net sales for the
first quarter ended June 29, 2007, were US$5.2 billion, which
represents an increase of US$1.1 billion, or 27%, over the year
ago quarter.  For the first quarter ended June 29, 2007,
adjusted net income increased 29% over the year ago quarter to
US$134 million, compared to US$104 million in the year ago
quarter.

GAAP net income increased 26% to US$107 million, or US$0.17 per
diluted share, for the first quarter ended June 29, 2007,
compared to US$85 million, or US$0.14 per diluted share, in the
year ago quarter.

"We continue to maintain a strong financial position with US$770
million in cash, no short term debt maturities, and a record low
debt to capital leverage ratio of 19%," said Flextronics CEO
Mike McNamara.  "We decreased our inventory balance by US$47
million sequentially and increased our sequential inventory
turns from 6.9 to 7.7 times.  We remain intensely focused on
generating a higher return on capital while growing our
business, as evidenced by our 40 basis point increase in return
on invested capital from the year ago quarter."

"We continue to lead the industry with a cash conversion cycle
of 13 days, which resulted in our operations generating positive
cash flow of US$145 million for the quarter.  Even though
revenues grew 27%, we still generated US$73 million of free cash
flow," Mr. McNamara added.

"I am very proud of the dedication and hard work of our
employees and management across the globe in making this a very
successful quarter for Flextronics.  I remain confident that our
organization will continue to execute on our normal day-to-day
operations and customer service requirements as we work through
the integration planning associated with our previously
announced acquisition of Solectron," Mr. McNamara concluded.

                           Guidance

For the second quarter ending September 28, 2007, revenue is
expected to grow approximately 10-20% on a year-over-year basis
to a range of approximately US$5.3 billion to US$5.6 billion and
adjusted (non-GAAP) EPS is expected to grow 10-20% on a year-
over-year basis to a range of US$0.22-US$0.24 per share.

The Company reiterated its 2008 fiscal year expectations, with
revenue expected to grow 10-15% on a year-over-year basis to a
range of US$20.7 billion to US$21.7 billion and adjusted (non-
GAAP) EPS is expected to grow 15-20% on a year-over-year basis
to a range of US$0.92-US$0.96 per share.  The fiscal year 2008
guidance excludes any impact from the Solectron acquisition.

Quarterly GAAP earnings are expected to be lower than the
guidance provided herein by approximately US$0.04 per diluted
share per quarter reflecting quarterly intangible amortization
and stock-based compensation expense.

                 Update on Solectron Acquisition

As reported in the Troubled Company Reporter-Europe on June 6,
2007, Flextronics and Solectron Corporation have entered into
a definitive agreement for Flextronics to acquire Solectron
under a US$3.6 billion deal, creating the most diversified and
premier global provider of advanced design and vertically
integrated electronics manufacturing services.

"While we have received U.S. antitrust clearance, we have not
yet received all outstanding regulatory approvals," Flextronics
CFO Thomas J. Smach stated.  "Assuming no complications in the
remaining approvals required we now feel as though we could
close the transaction in October."

"Our integration planning has been further developed since the
announcement and we are now reducing the estimated time to
achieve at least US$200 million of annualized after-tax
synergies from 18-24 months to 12-18 months," Mr. Smach added.

                        About Flextronics

Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX) -- http://www.flextronics.com/-- provides  
complete design, engineering and manufacturing services to
automotive, computing, consumer digital, industrial,
infrastructure, medical and mobile OEMs.  Its network of
facilities is located in over 30 countries worldwide including
Finland, Hungary, Sweden and the United Kingdom.

                           *    *    *

The TCR-Europe revealed on June 6, 2007, that  Moody's Investors
Service placed the ratings of Flextronics International Limited
(Ba1 CFR) on review for possible downgrade and the B3 notes
ratings for Solectron Corporation on review for possible
upgrade, following the companies' announcement on June 4, 2007,
that they have entered into a definitive agreement for
Flextronics to acquire Solectron for approximately US$3.6
billion.

Standard & Poor's Ratings Services placed its 'BB+' corporate
credit and 'BB-' subordinated debt ratings on Singapore-based
Flextronics International Ltd. on CreditWatch with negative
implications.  

Fitch has placed Flextronics' ratings on Rating Watch Negative:

    -- Issuer Default Rating at 'BB+';
    -- Senior Unsecured credit facility at 'BB+';
    -- Senior subordinated notes at 'BB';

Fitch's action affects approximately US$1.5 billion of total
debt.


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


ACXIOM(R) CORP: Posts US$11.5 Million Net Loss for Q1 2008
----------------------------------------------------------
Acxiom(R) Corporation reported financial results for the first
quarter of fiscal 2008 ended June 30, 2007.  

Details of Acxiom’s first-quarter performance include:

   -- Revenue of US$338.2 million, up 0.4% from US$336.7 million
      in the first quarter a year ago.

   -- Income from operations of US$4.1 million, an 88.6%
      decrease compared to US$36.3 million in the first quarter
      last year.

   -- Net loss of US$11.5 million, compared to net earnings of
      US$17.8 million in the first quarter of fiscal 2007.

Unusual items that added US$20.6 million in expenses in the
quarter. Included were costs related to the pending transaction
with Silver Lake and ValueAct Capital of US$15.1 million, which
are non-deductible for tax purposes, and US$5.5 million
predominantly related to the write-off of certain long-term
assets related to an amended contract with an information
technology outsourcing client.  

Operating cash flow of US$39.1 million and negative free cash
flow available to equity of US$9.8 million.  

                 New Organizational Alignment

Acxiom in fiscal 2008 implemented a new organizational alignment
with three operating divisions. First-quarter revenue by
division was:

* Services Division

   Revenue for the quarter was US$181 million, up 4 percent
   compared to the first quarter a year ago.

* Information Products Division

   Revenue for the quarter was US$96.7 million, a 2% increase
   over the same quarter last year.

* Infrastructure Management Division

   Revenue for the quarter was US$113.5 million, down 6% from
   the same quarter last year.

                    First Quarter Recognition

Computerworld magazine again named Acxiom one of the 100 Best
Places to Work in Information Technology, the fourth time in the
last six years the company has received the honor.

Wells Fargo & Company named Acxiom the winner of the "First
Choice" award as part of its Vendor Recognition Program.  Acxiom
was one of four business partners that Wells Fargo's Technology
Information Group recognized during its annual vendor summit in
April.

Charles D. Morgan, Acxiom’s company leader and chairman of the
board stated, "We remain focused on operating results while we
advance the acquisition process with Silver Lake and ValueAct
Capital.  We continue to believe that successfully completing
this deal is in the best interests of Acxiom and its
constituents."

                          About Acxiom

Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and   
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world.  The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership.  Founded in 1969, Acxiom has locations
throughout the United States, in Europe particularly in France
and Germany, and in Australia and China in the Asia-Pacific
region.

                          *     *     *

Acxiom Corp. carries Moody's Investor Services' 'Ba2' long-term
corporate family rating and 'Ba3' probability of default rating.

The company's long-term foreign and local credit is rated 'BB'
by Standard and Poor's.


DELISTAR: Failure to Find Buyer Cues Liquidation Procedure
----------------------------------------------------------
Seclin, France-based pizza manufacturer Delistar will go into
liquidation after failing to find a buyer, The Financial Times
reports, citing Les Echos as its source.

According to the report, all 75 employees of the pizza
manufacturer will be made redundant.

Delistar has been in receivership since May 2007, FT relates.


GAP INC: Appoints Glenn Murphy as Chairman & CEO
------------------------------------------------
Gap Inc.'s board of directors has appointed Glenn Murphy to
serve as chairman and chief executive officer of the company.  
Mr. Murphy, 45, has more than 20 years of retail experience
across three distinct retail sectors, and has demonstrated the
ability to consistently drive both top and bottom line results.

Most recently, Mr. Murphy served for six years as chairman and
CEO of Shoppers Drug Mart, the largest drug store chain in
Canada.  He led the company through an unprecedented period of
growth and shareholder returns during which revenues increased
22 consecutive quarters year-over-year and its earnings per
share doubled.

"I'm thrilled with this opportunity to lead Gap Inc. given
the company's iconic stature and heritage of innovation and
creativity," said Mr. Murphy.  "Alongside some of the most
talented people in the apparel industry, we'll work to
reestablish each brand's leadership position and set the
company along a path of sustained earnings performance."

Underscoring his commitment and belief in the long-term
potential of the company, Mr. Murphy has stated his intention to
purchase 150,000 shares of Gap Inc. common stock in the next few
weeks.  He is expected to start with the company in the next
week pending receipt of his U.S. work authorization.

Mr. Murphy succeeds Robert J. Fisher, the current chairman of
the board of directors who has served as interim CEO since
January of this year.  Mr. Fisher will continue to serve on the
board.

"Glenn is known for being a decisive leader with great retail
instincts who understands his customers," said Mr. Fisher.  "He
has revitalized major retail brands by offering new products and
significantly improving the store experience.  He's well
qualified to return Gap Inc. to the level of sustained
performance we all expect."

During his more than 20 years of experience in retail, Mr.
Murphy successfully reinvigorated retail brands in the areas of
food, health and beauty, and books.  Most recently, at Shoppers
Drug Mart, he differentiated the brand with new products and
better service, and grew the company's market capitalization
from about CDN3 billion to over CDN10 billion following its
public offering.  He left the company in March of this year,
after guiding the transition to his successor, to pursue other
international opportunities.

Prior to this success, Mr. Murphy held several positions at
Loblaw Companies Ltd., the leading retail and wholesale food
company in Canada.  He drove substantial improvements at the
company in the face of competition from big box retailers and
led the integration of a significant acquisition into Loblaw's
portfolio.  He also served as president and CEO of Chapters, a
major book retailer in Canada with separate retail, online and
distribution businesses.

A committee of Gap Inc.'s board of directors oversaw the search
for a new CEO.  The search committee was led by independent Gap
Inc. director Adrian Bellamy, chairman of The Body Shop
International plc and Reckitt Benckiser plc.  The committee also
included Donald G. Fisher, Gap Inc.'s founder and chairman
emeritus; Domenico De Sole, former president and chief executive
officer, Gucci Group NV; and Bob L. Martin, the board's lead
independent director and a former Wal-Mart Stores, Inc.
executive.

"The search committee undertook a rigorous process and when we
met Glenn the entire board unanimously agreed that we'd found
the right leader for our company," said Mr. Bellamy.  "His
proven retail skills and demonstrated financial results
complement the strong brand leaders we have running our core
businesses.  We are confident he will prove to be a very
successful leader of our management team in the years ahead."

"On behalf of the board, I also want to thank Bob Fisher for his
tireless dedication and leadership during his six-month tenure
as interim CEO," said Mr. Bellamy.  "Under Bob's direction, Gap
Inc. has made important progress on the long-term changes needed
to improve the business."

A significant portion of Mr. Murphy's compensation will require
sustained improvements in the company's performance.  The
primary cash components of Mr. Murphy's compensation, pursuant
to his employment agreement dated July 25, 2007, include: an
annual salary of US$1.5 million; a sign-on bonus of US$1.0
million; a pro-rated target bonus for 2007; and annual
performance-based bonuses targeted at 150 percent of annual
salary.  The primary equity components of his compensation
include four million stock options, half of which will carry a
premium price; and a target award of one million performance
shares that is dependent on the company's improved earnings over
time.  The company intends that these will be the only equity
grants for Mr. Murphy over the next three years.

The company estimates that Mr. Murphy's fiscal 2008 compensation
at target performance, as calculated for proxy statement
purposes, will be about US$12 million.

                          About Gap Inc.

Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an  
international specialty retailer offering clothing, accessories
and personal care products for men, women, children and babies
under the Gap, Banana Republic, Old Navy, Forth & Towne and
Piperlime brand names.  Gap Inc. operates more than 3,100 stores
in the United States, the United Kingdom, Canada, France,
Ireland and Japan.  In addition, Gap Inc. is expanding its
international presence with franchise agreements for Gap and
Banana Republic inSoutheast Asia and the Middle East.

                           *   *   *

As reported in the Troubled Company Reporter on Jan. 10, 2007,
Fitch has downgraded its ratings on The Gap Inc.'s Issuer
Default Rating to 'BB+' from 'BBB-' and Senior unsecured notes
to 'BB+' from 'BBB-'.  The Rating Outlook is Negative.

As reported in the Troubled Company Reporter on Nov. 21, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured ratings on San Francisco-based The Gap Inc.
to 'BB+' from 'BBB-'.  S&P said the outlook is stable.


HEXCEL CORP: Net Sales Up 5.8% in Second Quarter 2007
-----------------------------------------------------
Hexcel Corporation reported results for the second quarter of
2007.  

Net sales from continuing operations in the current quarter were
US$289.8 million, 5.8% higher than the US$274 million reported
for the second quarter of 2006.

Related operating income for the second quarter was US$34
million compared to US$33.9 million for the same period last
year.

Net income from continuing operations for the second quarter of
2007 was US$17.5 million, or US$0.18 per diluted share, compared
to US$18 million in 2006.  

Net loss from discontinued operations was US$8.7 million, or
US$0.09 per diluted share including an after-tax charge of
US$9.7 million for previously disclosed legal matters.

Discontinued operations consist of the assets of the U.S.
electronics, ballistics and general industrial reinforcement
product lines, which we have entered into a definitive agreement
to sell to JPS Industries.

                    Operation Highlights

Aerospace qualification processes are underway in a number of
locations including our new carbon fiber precursor line in
Decatur, AL; a new prepreg facility in Stade, Germany; the new
carbon fiber line in Salt Lake City, UT; and for prepreg
products transferred as part of the Livermore, CA closure.

Gross margins declined slightly to 24.3% in the quarter
compared to 24.6% in the second quarter of 2006.

SG&A expenditures in the quarter of US$27.4 million were US$1.5
million higher than the second quarter of 2006.

R&T spending increased US$1.1 million in the quarter compared to
the second quarter of 2006 reflecting expenditures related to
new product development and qualification efforts for new
aircraft programs.

Operating income for the quarter, excluding business
consolidation and restructuring expense, was US$34.5 million or
11.9% of sales, in line with our guidance for the year.

                           Guidance

Our prior guidance for 2007 was issued in December 2006 and
included the EBGI business. As a result of the expected
divestiture of the business in the third quarter, we have
updated our guidance for the year.

We had expected total sales to increase 5 - 10% for the year
assuming comparable exchange rates to 2006. We now expect we
will be in the upper end of that range as stronger than
expected commercial aerospace growth will be partially offset
by lower than expected growth in recreation and other
industrial sales.

We still expect gross margins for the year of 23 - 24% and
operating margin before restructuring expense of 11 - 12%
despite increased spending for new program development and
qualifications, as well as start up costs for new production
capacity.

               Chief Executive Officer Comments

Mr. Berges commented, "The second quarter saw a continuation of
the first quarter sales pattern for the commercial aerospace
market.  Because of the A380 delay, Airbus sales were again down
significantly from a year ago, but strong demand from all other
major customers resulted in the almost 9% overall growth in our
commercial aerospace sales. Start-up, training and qualification
efforts combined with some unplanned maintenance outages put
some pressure on our margins but we still met our guidance
targets and expect better year-on-year margin expansion for the
remainder of 2007."

"The ramp up of new B787 and A380 programs layered on top of
increasing aircraft build rates should provide opportunity for
good volume leverage next year. Longer term we are encouraged by
the continued strength in wind turbine and aircraft orders,
especially the new composite intensive A350 XWB. With the
divestiture of non-core assets nearly completed, our sharper
focus should allow us to capitalize on these market trends as
well as emerging applications for advanced composite materials."

The company reported total assets of US$1.1 billion, total
liabilities of US$717 million, and total stockholders’ equity of
US$350.5 million as of June 30, 2007.

                   About Hexcel Corporation

Headquartered in Stamford, Connecticut, Hexcel Corporation
(NYSE: HXL) -- http://www.hexcel.com/-- is an advanced
structural materials company.  It develops, manufactures and
markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb,
matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial
applications.

The company has operations in Australia, Brazil, China, France
and Japan, among others.

                        *     *     *

As reported in the Troubled Company Reporter on June 25, 2007,
Moody's Investors Service raised Hexcel Corporation's Corporate
Family Rating to Ba3 from B1.  The ratings on Hexcel's senior
secured credit facility were upgraded to Ba1 from Ba2, while the
subordinated notes ratings were upgraded to B1 from B3.  The
ratings outlook is Stable.

Headquartered in Stamford, Connecticut, Hexcel Corporation
(NYSE: HXL) -- http://www.hexcel.com/-- is an advanced
structural materials company.  It develops, manufactures and
markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb,
matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial
applications.

The company has operations in Australia, Brazil, China, France
and Japan, among others.


RHODIA SA: Extends Cooperation Agreement with CNRS
--------------------------------------------------
Rhodia S.A. and the French National Center for Scientific
Research have renewed their cooperation agreement for a further
five years.  This agreement, signed by CNRS President Catherine
Brechignac, CNRS General Director Arnold Migus, and Rhodia CEO
Jean-Pierre Clamadieu, marks a new phase in this important
partnership.

This cooperation between an industrial company and the CNRS,
initiated in 1975, has steadily deepened over time and
demonstrated both the complementary nature of public and private
research and the synergies between the two.  Starting in the
1980s, Rhodia’s laboratories host CNRS researchers working on
such diverse topics as automobile emissions control, catalysts
for fine chemical synthesis and surface modification.

Today, CNRS and Rhodia researchers are working together in the
following three joint research units:

   -- Complex Fluid Laboratory in Bristol, Pennsylvania, USA
      created in 1996 Research at this laboratory has led to the
      development of various applications, including active
      deposition systems for haircare products, surface
      treatments and viscoelastic fluids for the oil field
      industry.

   -- Laboratory of the Future in Pessac, France, created in
      2004 designed to improve research productivity and shorten
      innovation time-to-market, this laboratory has used its
      expertise in microfluidic technologies to develop ways of
      creating phase diagrams in just a few hours instead of
      several weeks.  Its work has also made it possible to
      acquire previously inaccessible process data from droplet
      size reactors.

   -- Advanced Polymers and Materials Laboratory in Lyon,
      France, created in 2006.  This laboratory is inventing the
      polymer-based materials of the future, which will have
      greater heat and mechanical resistance and provide safety
      and fuel economy solutions in particular for the
      automotive industry.

The cooperation between Rhodia and the CNRS includes regular
scientific consultation, hiring of newly qualified research
graduates by Rhodia after their Ph.D or post Doctoral training
at the CNRS and research contracts with CNRS units.

Speaking at the signing ceremony, Ms. Brechignac noted that, “At
CNRS, we are dedicated to building lasting, trusting
relationships with our industrial partners.  We’ve been working
with Rhodia for more than thirty years now.  We hope that this
new phase in our partnership will enable us both to meet
tomorrow’s scientific and technological challenges.”

“Research and innovation are critical key drivers of
competitiveness for Rhodia.  The partnership with the CNRS is
one of the pillars of our research strategy.  It will offer to
Rhodia new research opportunities and enable us to reinforce our
technological capabilities, helping us to meet more effectively
our customers’ needs and to respond to the challenges of
sustainable development," Mr. Clamadieu added.

CNRS (National Center for Scientific Research) is a government-
funded research organization, under the administrative authority
of France’s Ministry of Research.  It has played a key role in
creating the European Research Area and actively competes in the
global marketplace.  Through research in every scientific
discipline and a network of more than 1,000 research and
administrative units, CNRS produces knowledge for the benefit of
the economy, society and sustainable development.  Its
laboratories, both proprietary and those managed jointly with
universities, other research organizations and companies, are
located throughout France.  CNRS employs 30,000 people and has a
budget of EUR3 billion in 2007.  By leveraging its extensive
network of scientists, its vast financial resources, its
pluridisciplinary capabilities and its cooperative strategy,
CNRS is playing a pivotal role in the French, European and
international scientific research community.

                          About Rhodia

Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) --
http://www.rhodia.com/-- is a global specialty chemicals  
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets.  Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs.  The group generated sales of
EUR4.8 billion in 2006 and employs around 16,000 people
worldwide.

Rhodia is listed on Euronext Paris and the New York Stock
Exchange.  The company has operations in Brazil.

                            *   *   *

As reported in the TCR-Europe on April 26, 2007, Fitch Ratings
affirmed Rhodia S.A.'s Issuer Default Rating at BB- and revised
the Outlook to Positive from Stable.  Fitch has assigned Rhodia
SA's proposed issue of up to EUR595.125 million bonds
convertible and/or exchangeable for new and/or existing shares
an expected 'BB-' rating.

As reported in the TCR-Europe on April 23, 2007, Moody's
Investors Service upgraded Rhodia S.A. corporate family rating
to Ba3 and assigned Probability-of-Default rating for the group
at Ba3; Moody's also upgraded senior secured notes at Rhodia
S.A. to B1 and assigned LGD assessment at LGD4 (69%).  The
proposed convertible notes are rated (P)B1, LGD4 (69%).

These ratings are affected:

   -- Corporate Family Ratings upgraded to Ba3;

   -- Probability-of-Default assigned at Ba3;

   -- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4
      (69%); and

   -- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4
      (69%).

At the same time, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Rhodia to BB- from B+, and
its long- term debt rating on the group to B from B-.  Standard
& Poor's also assigned its B senior unsecured debt rating to
Rhodia's proposed new bond, which will be used for refinancing
purposes.


XEROX CORP: Revenues Up 6% in Second Quarter 2007
-------------------------------------------------
Xerox Corporation reported total revenue of US$4.2 billion grew
6% in the second quarter 2007.  

Post-sale and financing revenue – Xerox’s annuity streams that
represent more than 70% of total revenue – increased 7%.  Both
total revenue and post-sale revenue included a currency benefit
of 2 percentage points as well as the benefit from Xerox’s
acquisition of Global Imaging Systems, which was completed in
early May.

Since the beginning of the year, Xerox has introduced 28 new
products, 10 of which are color devices, doubling the 14 total
product launches in 2006.  More than two-thirds of Xerox’s
equipment sales revenue comes from products launched in the past
two years.

The company’s acquisition of Global Imaging Systems gives Xerox
access to about 200,000 new customers and adds 1,400 sales
people to expand Xerox’s footprint in the SMB market.  Sales
from Global Imaging supported second-quarter growth in Xerox’s
office business, which provides document technology and services
for businesses of any size.  Total office revenue was up 5% in
the second quarter including a 2 point benefit from currency.  
Installs of the company’s office black-and-white systems
increased 7% primarily due to a 9 percent increase in activity
for Xerox’s mid-range line of multifunction devices.  Installs
for office color multifunction devices grew 54% in the quarter.

Gross margins were 40.3%, a less than one point decline from
second quarter of 2006.  Selling, administrative and general
expenses were 25.7% of revenue, about the same as the prior
year. Xerox generated operating cash flow of US$388 million in
the second quarter and closed the quarter with US$870 million in
cash and short-term investments.

Since launching its stock buyback program in October 2005, the
company to date has repurchased about 117 million shares,
totaling US$1.8 billion of its US$2.5 billion program.

Xerox expects third-quarter 2007 earnings in the range of 24-26
cents per share. The company increased its range of earnings
expectations for full-year 2007 to US$1.16-US$1.18.

"Our results in the second quarter reflect the strategic
importance of annuity and acquisitions flowing through to boost
revenue and strengthen our position in the marketplace," said
Anne M. Mulcahy, Xerox chairman and chief executive officer.  
"With the Global Imaging team now on board, we’ve increased our
reach to U.S. small and mid-size businesses by 50%.  At the same
time, our investment in delivering the industry’s broadest
portfolio of color technology is paying off with the annuity
from our color business increasing 16%.  And, Xerox’s global
relationships with large customers are contributing to annuity
growth from our consulting and managed services business.

"We are consistent in managing the business effectively –
generating steady operational cash flow and containing costs
while competing aggressively and expanding earnings to deliver
value for shareholders.  As a result, we delivered solid results
in the first half of the year and are raising earnings
expectations for the full year," she added.

The company reported total assets of US$23 billion, total
liabilities of US$15.5 billion, and total stockholders’ equity
of US$7.5 billion as of June 30, 2007.

                        About Xerox Corp.

Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,  
services and finances a range of document equipment, software,
solutions and services.  Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors.  The company maintains operations in France,
Japan, Italy, Nicaragua, among others.

                          *     *     *

As reported in the Troubled Company Reporter on May 23, 2007,
Standard & Poor's Ratings Services revised its rating outlook on
Stamford, Connecticut-based Xerox Corp. to positive from stable.
Ratings on the company, including the 'BB+' long-term and 'B-1'
short-term corporate credit ratings, were affirmed.

As reported in the Troubled Company Reporter on Apr. 4, 2007,
Xerox and Global Imaging Systems Inc. entered into a definitive
agreement for Xerox to acquire Global Imaging for US$29 per
share in cash.  The total purchase price is expected to be about
US$1.5 billion.

The move prompted Standard & Poor's Ratings Services to place
its ratings on Xerox Corp., including the 'BB+' corporate credit
rating, on CreditWatch with positive implications.

According to S&P credit analyst Molly Toll Reed, the CreditWatch
placement reflects S&P's expectation that Xerox has the ability
to fund the acquisition with a combination of existing cash and
short-term debt, with negligible impact on Xerox's financial
profile by the end of fiscal 2007.

Following completion of the acquisition, which is expected to
occur in the second quarter of fiscal 2007, the corporate credit
rating would be raised to 'BBB-' with a stable outlook, the
rating agency said.


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


ARMSTRONG WORLD: Shareholders Approve AHI Dissolution Plan
----------------------------------------------------------
The Board of Directors of Armstrong Holdings, Inc., the former
parent company of Armstrong World Industries, Inc., has directed
management to proceed with the company's Plan of Dissolution,
Distribution and Winding Up, approved by a vote of shareholders
at a special meeting on July 18, 2007.

More than 95% of the votes cast were in favor of the Plan.  The
results of the vote were:

    * In Favor: 18,230,373
    * Against: 765,210
    * Abstain: 185,726

Following these actions, the Board elected Walter Gangl and John
Rigas as directors to replace Messrs. Sellers and Stead, who
resigned effective the close of that meeting.  The new directors
with Mr. Lockhart, who remains as chairman, will oversee
implementation of the Plan of Dissolution.

Messrs. Gangl and Rigas are also officers of the company
(Assistant Secretary and Secretary, respectively) and of
Armstrong World Industries, Inc.  There is no arrangement or
understanding between them or any other person concerning their
selection or service as directors.

Upon this change in the Board’s composition, the Board as a
whole will act as the audit committee to the extent necessary
prior to the company’s dissolution.

The timetable for dissolution depends on a variety of factors
outside the company's control including receipt of necessary tax
clearance.  The company hopes to be able to file Articles of
Dissolution and distribute its net assets to shareholders as
soon as the fourth quarter of this year.

The company's assets consist of approximately US$27 million in
cash.  AHI has no operations and no employees.  There are 40.55
million AHI shares outstanding.

The costs of the company’s governance and dissolution are being
paid by AWI as provided for in AWI’s Chapter 11 Plan of
Reorganization.

Other provisions of the AWI Chapter 11 Plan affecting the
company include:
   
   -- AHI and its directors and officers have protection from
      liability for asbestos liabilities of AWI as specified in
      that Plan.

   -- AWI assumed obligations to indemnify certain directors and
      officers of AHI who served during the course of AWI’s
      Chapter 11 case for their service.

   -- All existing equity compensation plans of AHI (which had
      previously been used to compensate employees of AWI and
      its subsidiaries) were terminated.

   -- AHI and its officers, directors, employees and agents
      received the benefit of certain exculpation provisions.

As previously reported in the TCR-Europe on Feb. 28, 2007, AHI
and AWI have reached a settlement on all inter-company claim and
tax issues.

The settlement, if approved by the U.S. Bankruptcy Court for the
District of Delaware, calls for AWI to pay AHI US$20 million in
cash, and gives AHI an allowed claim under AWI's confirmed Plan
of Reorganization of US$8.5 million.

                        About Armstrong

Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. (NYSE: AWI) -- http://www.armstrong.com/-- designs and
manufactures floors, ceilings and cabinets.  AWI operates 42
plants in 12 countries and employs approximately 14,200 people
worldwide.  

The company has manufacturing facilities in Australia, China,
Austria, Sweden, the United Kingdom, France, Germany, Spain and
Switzerland.

The company and its affiliates filed for chapter 11 protection
on Dec. 6, 2000 (Bankr. Del. Case No. 00-04469).
StephenKarotkin, Esq., at Weil, Gotshal & Manges LLP, and
Russell C.Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts.  The
company and its affiliates tapped the Feinberg Group for
analysis, evaluation, and treatment of personal injury asbestos
claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured
Creditors.  The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of
Asbestos Personal Injury Claimant hired Ashby & Geddes as
counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006.  The Clerk entered the formal written
confirmation order on Aug. 18, 2006.  The company's "Fourth
Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.

                          *     *     *

As reported in the TCR-Europe on March 13, 2007, Standard &
Poor's Ratings Service revised its outlook to developing from
stable for Armstrong World Industries Inc.

At the same time, Standard & Poor's affirmed the 'BB' corporate
credit and senior secured ratings for the Lancaster,
Pennsylvania-based company.

In October 2006, Moody's Investors Service assigned a Ba2 rating
on Armstrong World Industries, Inc.'s new credit facility and a
Corporate Family Rating of Ba2.  Moody’s said the ratings
outlook is stable.


DAIMLERCHRYSLER: Unit Seeks to Cut Dealer Ranks to Stem Losses
--------------------------------------------------------------
Chrysler Group has warned some of its weakest dealers that it
may try to shut them down if they can't generate more sales in
the next six months, a sign that the auto maker is stepping up
efforts to cull its network of retail outlets, Neal E. Boudette
writes for The Wall Street Journal.

Cerberus Capital Management LP, which is completing its deal to
buy a controlling stake in Chrysler from DaimlerChrysler AG, had
previously held talks with Chrysler executives and some of
Chrysler's top dealers to discuss the need to slash dealer ranks
in order to stem the unit's losses in North America, WSJ states.

Auto makers seldom get their way when trying to terminate
dealers' franchise agreements for poor sales performance as they
often wind up in court, where state laws guarantee franchisees
many protections against manufacturers, Mr. Boudette observes.

Chrysler, General Motors Corp. and Ford Motor Co. has been
slowly reducing the number of stores in its sales network in a
bid to be more competitive.  GM has about 6,900 dealers, Ford
has 4,200 and Chrysler 3,700.  Holding U.S. market shares of
about 23%, 16% and 14%, respectively, that amounts to about 300
dealers per one point of U.S. market share held by GM, about 280
a point for Ford and 270 for Chrysler, WSJ relates.

By comparison, Toyota Motor Corp. has about 1,400 dealers, and
its 16% market share gives it about 90 for each market-share
point, the report says.

                      About DaimlerChrysler

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

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

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

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

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


DAIMLERCHRYSLER: Chrysler Offers Lifetime Warranty to Hike Sales
----------------------------------------------------------------
Chrysler Group has extended its powertrain warranty from the
three-year/36,000-mile Basic Limited Warranty to a new Lifetime
Powertrain Warranty.  The new Chrysler Lifetime Powertrain
Warranty applies to most new Chrysler, Jeep and Dodge vehicles
purchased from dealer inventory and delivered on or after
July 26, 2007.

The Lifetime Powertrain Warranty covers the cost of all parts
and labor needed to repair covered powertrain components --
engine, transmission and drive system.  The new powertrain
warranty is limited to the first registered owner or retail
lessee.  Customers should contact dealers for details on vehicle
selection.

"This new Chrysler Lifetime Powertrain Warranty is a statement
of confidence to our customers to the reliability of their
powertrain.  It's peace-of-mind reassurance for as long as they
own the vehicle," said Steven Landry, Chrysler Group's executive
vice president for North America, Sales and Marketing, Service
and Parts.

To continue warranty coverage, the owner must have a powertrain
inspection performed by an authorized Chrysler, Jeep or Dodge
dealer once every five years.  This inspection will be performed
at no charge.  The inspection must be made within 60 days of
each 5-year anniversary of the warranty start date of the
vehicle.

"The new Chrysler Lifetime Powertrain Warranty underscores our
focus on quality and customer satisfaction.  It demonstrates our
commitment to customers and the confidence we have in our
ability to produce quality, reliable and durable vehicles.  
That's why we put 'lifetime' on it," Mr. Landry added.

                      About the Company

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: Unit Inks Joint Venture Deal with MINTH Group
--------------------------------------------------------------
DURA Automotive Handels und Beteiligungs GmbH, a wholly owned
subsidiary of DURA Automotive Systems, Inc., has entered into a
joint venture agreement with MINTH Group Limited, to develop,
manufacture and sell automotive door frames, body-in-white door
modules and door pillar cappings for automakers based in China.
The new joint venture company will conduct business under the
name DURA MINTH AUTOMOTIVE SYSTEMS Co., Ltd. The transaction is
subject to final business license approvals.

"Establishing a DURA MINTH joint venture in China allows us to
expand our customer support in the Asian market for body and
trim components," said Larry Denton, DURA Automotive's chairman
and chief executive officer.  "Our customers will benefit from
the combination of MINTH's strong capabilities in the
manufacture of precision door and trim components, coupled with
DURA's world-class design and advanced manufacturing
technology."

The joint venture company will establish its initial
manufacturing operations at MINTH's existing facilities in
Chongqing, China.

"This agreement also provides access to DURA's established OEM
relationships, particularly with European automakers
manufacturing in China," said Mu Wei Zhong, vice president and
executive director of MINTH Group Limited.  "We look forward to
working closely with our joint venture partner to enhance our
growth opportunities."

The joint venture will be majority owned and controlled by DURA,
and the board of directors will be comprised of DURA and MINTH
executives.  The parent companies will contribute assets,
intellectual property and technical resources.

                  About MINTH Group Limited

MINTH Group Limited is a Cayman Island-based investment holding
company.  Through its subsidiaries, the company is engaged in
the manufacturing, processing, development and sale of exterior
automobile body parts and molds of passenger cars.  It designs,
manufactures and sells trim, decorative parts and body
structural parts.  These products are sold to the auto parts
industry in the People's Republic of China.

                      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.


MARTINI-SOMMER: Claims Registration Period Ends August 31
---------------------------------------------------------
Creditors of Martini-Sommer Verwaltungsgesellschaft mbH have
until Aug. 31 to register their claims with court-appointed
insolvency manager Rolf-Dieter Moenning.

Creditors and other interested parties are encouraged to
attend the meeting at 10:30 a.m. on Oct. 22, at which time
the insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Aachen
         Meeting Hall K 3
         Third Floor
         Alter Posthof 1
         52062 Aachen
         Germany
         
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Rolf-Dieter Moenning
         Juelicher Strasse 116
         52070 Aachen
         Austria
         Tel: 0241/94618-0
         Fax: 0241/533562

The District Court of Aachen opened bankruptcy proceedings
against Martini-Sommer Verwaltungsgesellschaft mbH on July 24.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Martini-Sommer Verwaltungsgesellschaft mbH
         Attn: Hartmut Rottmann, Manager
         Adenauerstr. 10
         52146 Wuerselen
         Germany


MTU AERO: Raises Earnings Forecast for Financial Year 2007
----------------------------------------------------------
MTU Aero Engines Holding AG achieved an 8% growth at the end of
June 2007, as expected.  Revenues increased from EUR1.2 billion
(1-6/06) to EUR1.3 billion (1-6/07) during this period.  The
group expects to sustain this same growth rate through to the
end of the year.

MTU’s earnings improved at an above-average rate: Adjusted
EBITDA  amounted to EUR181.0 million at June 30, 2007, thus
exceeding the equivalent figure for the first six months of 2006
(1-6/06: EUR146.3 million) by 24%.  Similarly positive results
were reported for adjusted net income, which increased by 10%
from EUR55.5 million to EUR61 million.  And this despite the
fact that adjusted net income for the first six months of 2007
includes a non-recurring charge for the early redemption premium
in connection with the high-yield bond. Excluding this
exceptional charge, the increase would have amounted to 31%.

“We expect our year-end results for 2007 to reflect this
continued growth trend, with significant contributions from the
series production of commercial engines and spare part sales,
which are progressing well,” Udo Stark, CEO of MTU Aero Engines
Holding AG, commented.  “This upward trend is underpinned by the
sustained impact of our efficiency improvement program.  This
has enabled us to raise our earnings forecast for the current
financial year: By the end of the financial year, we expect to
have achieved an adjusted EBITDA of EUR385 million and an
adjusted net income of EUR150 million.”  

This anticipated adjusted EBITDA result is EUR20 million higher
than that originally forecast, and represents an improvement of
21% compared with the previous year.  In the case of adjusted
net income, MTU expects to improve its forecast year-end result
by EUR10 million, representing a year-on-year increase of 23%.  
Free cash flow will improve to EUR120 million, 4% higher than in
2006.  No change has been made to the forecast revenues, which
MTU aims to improve by 8% to EUR2.6 billion by the end of 2007.

Developments During the First Six Months of 2007

The increase in revenues is mainly attributable to the positive
growth trend in OEM business, where a higher than expected
increase in revenues of 11% was reported.

Within the OEM segment, commercial engine business generated
improved revenues of EUR544.9 million, compared with EUR485.4
million in the first six months of 2006; this represents an
increase of 12%, or 15% after adjustments to account for
fluctuations in the U.S. dollar exchange rate.  The greatest
sources of revenue were the V2500, which powers the Airbus A320
family, the PW2000 for the C-17 military transporter, and the
CF6 employed as the powerplant in wide-body aircraft such as the
Airbus A330 and Boeing 747.

MTU’s revenues in the military engine segment increased by 9% to
EUR223.3 million (1-6/06: EUR204.4 million).  In this instance,
it was the EJ200 Eurofighter engine and the RB199 Tornado engine
that generated the highest revenues.

Revenues in the commercial MRO segment increased by 3%, rising
from EUR489.8 million (1-6/06) to EUR505.3 million.  This
relatively weaker growth is principally a consequence of a one-
time event, namely the introduction of new SAP software that led
to a temporary suspension of operations in May this year and a
subsequent period of adaptation to the new processes at MTU
Maintenance Hannover.  The greatest contributions to revenues
came from the V2500 and CF6 programs.  

“Foreign exchange rates also had an impact on these results.
Including adjustments to compensate for fluctuations in the
value of the U.S. dollar, our revenues in the commercial MRO
sector increased by 11.5%,” Reiner Winker, chief financial
officer of MTU Aero Engines Holding AG, explained.

The order backlog corresponds to 1.3 times total annual revenues
in 2006, maintaining a sustained high level at EUR3.33 billion
(Dec. 31, 2006: EUR3.34 billion).

The improvement in adjusted EBITDA was principally due to the
positive development of the OEM business.  In the first six
months of 2007, MTU expanded its EBITDA margin to 14.4%,
compared with 12.5% for the same period in 2006.  In the OEM
business, adjusted EBITDA increased by 38% to EUR125.8 million
(1-6/06: EUR91 million), resulting in an improved EBITDA margin
of 16.4% as compared with 13.2% in the first six months of 2006.
Adjusted EBITDA in the commercial MRO business for the first six
months of 2007 amounted to EUR55.0 million, compared with
EUR56.6 million in the same period of 2006.  At June 30, 2007,
the EBITDA margin in the commercial MRO business thus stood at
10.9% (1-6/06: 11.6%).

This healthy development in business results is equally
reflected in MTU’s cash flow situation: free cash flow stood at
EUR81.6 million at June 30, 2007, thus already surpassing the
figure of EUR70 million forecasted for the end of the full
financial year.  On this new basis, MTU now expects to achieve a
year-end free cash flow in the order of EUR120 million.  In
addition to improvements in cash flow from operating activities,
this revised estimate also includes a one-time prepayment agreed
with Airbus to compensate for the impact of delays in the A380
delivery schedule.

MTU increased its capital expenditure by 28% in the first six
months of 2007, as compared with the same period in 2006: this
expenditure rose from EUR30.6 million to EUR39.3 million.

Research and development expenditure amounted to EUR79.5 million
at the end of the second quarter 2007, corresponding to about
10% of revenues in the OEM sector (1-6/06: EUR81.1 million).  
This particularly reflects the lower expenses for development
work on the GP7000 engine for the Airbus A380, which is now
being prepared for the full production phase and hence requires
a lower level of research and development activity.

The number of employees showed little change with respect to the
end of the previous year, standing at 7,052 on June 30, 2007
(7,077 on Dec. 31, 2006).

                        About MTU Aero

Headquartered in Munich, Germany, MTU Aero Engines Holding AG –-
http://www.mtu.de/en/-- develops, manufactures, markets and  
repairs commercial and military engine modules and components
for aircraft engines and industrial gas turbines.

                          *     *     *

MTU Aero carries Standard and Poor's BB+ long-term foreign and
local issuer credit rating with stable outlook since June 20,
2006.


MTU AERO: Appoints Egon W. Behle as New Chief Executive Officer
---------------------------------------------------------------
Egon W. Behle, 51, will become MTU Aero Engines Holding AG's new
chief executive officer, effective the beginning of 2008.  The
Supervisory Board of the MDAX-listed company nominated him to
the position of CEO by unanimous vote on July 24, 2007.  His
term of office will run for three years.

Mr. Behle, who has a degree in aerospace engineering, comes from
ZF Lenksysteme GmbH in Schwabisch Gmuend, where he has served as
CEO since 2002.  He succeeds Udo Stark, 59, who had announced in
March that now that he was turning 60, he opted not to renew his
contract with MTU, which expires at year's end.

"Behle is a very capable manager who has substantial experience
working in a technology-driven environment," said Johannes P.
Huth, chairman of MTU's Supervisory Board.  "In his previous
positions he has proven that he tenaciously and successfully
pursues economic and technological objectives and considers a
company's competitiveness to be the most paramount concern."

After Mr. Behle had been with Robert Bosch GmbH in Stuttgart for
five years, he went to work for Friedrichshafen-based aerospace
company Dornier System GmbH, where he held the post of director
of sales from 1987 to 1991.  He then served several managerial
positions at Renk AG in Augsburg, a company of the MAN Group,
before he was appointed sole managing director of Fortuna
Spezialmaschinen GmbH, a special-purpose machinery manufacturer
in Weil der Stadt.  In 1996, he joined ZF Friedrichshafen AG in
Friedrichshafen, where he led and restructured several business
units.  Since 2002, he has been at the helm of ZF Lenksysteme
and, with an innovation and cost-cutting initiative he launched,
helped the company to return to profit-ability, making it the
global No. 3 in the industry.

"I'm very much looking forward to the new challenges at MTU, a
highly respected high-tech company indeed," Mr. Behle commented
on his appointment.  "What I want to achieve, in a joint effort
with management and the employees, is to continue to generate
profitable growth in the future and win additional market
shares.”

ZF Lenksysteme is a joint venture company of Bosch and ZF
Friedrichshafen.  The company is the technology and innovation
leader in steering technology for passenger cars and commercial
vehicles.  With sales of about EUR2.4 billion and a workforce of
9,700 employees, ZF Lenksysteme is comparable in size to MTU.

At the same time as MTU's Board of Management, its Supervisory
Board, too, is expected to have a new chairman, effective the
beginning of the year 2008: Klaus Eberhardt, CEO of Rheinmetall
AG in Duesseldorf, who has been serving on MTU's Supervisory
Board since April, is expected to succeed Johannes P. Huth,
member of Kohlberg Kravis Roberts & Co. in London, in his role
as MTU Supervisory Board chairman.  Mr. Huth on July 24, 2007,   
announced that he will resign from his office as of the end of
2007 and leave MTU's Supervisory Board, saying that he wanted to
focus his full attention on other Supervisory Board positions he
holds.  KKR had sold the stock it held in the company at the
time of MTU's IPO in June 2005 and in a second placement in
January 2006.

                        About MTU Aero

Headquartered in Munich, Germany, MTU Aero Engines Holding AG –
http://www.mtu.de/en/-- develops, manufactures, markets and  
repairs commercial and military engine modules and components
for aircraft engines and industrial gas turbines.

                          *     *     *

MTU Aero carries Standard and Poor's BB+ long-term foreign and
local issuer credit rating with stable outlook since June 20,
2006.


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


ELAN CORP: June 30 Balance Sheet Upside Down by US$109.2 Million
----------------------------------------------------------------
Elan Corporation plc has released its unaudited second quarter
2007 financial results and provided a business update.

Elan posted US$141.1 million in net losses against US$188.5
million in revenues for the three months ended June 30, 2007,
compared with US$90.5 million in net losses against US$136.4
million in revenues for the same period in 2006.

At June 30, 2007, Elan’s unaudited consolidated US GAAP balance
sheet showed US$1.9 billion in total assets, US$2 billion in
total liabilities and US$109.2 million in stockholders’ deficit.

“We continue to make progress in our pipeline and focus on
moving our science towards the patients,” said Kelly Martin,
president and chief executive officer of Elan.  “Business
discipline and growth in both Tysabri and EDT should provide a
solid platform for continued advancement throughout the balance
of the year.”

“We are very pleased with the progress we have made in the
second quarter of the year with revenue growth of 38% and a
reduction of two-thirds in Adjusted EBITDA losses as we continue
to carefully manage our cost base,” said Shane Cooke, executive
vice president and chief financial officer of Elan.  “The net
loss increased to US$141.1 million, mainly due to a non-cash
charge of US$52.2 million related to the write down of
intangible assets as a result of the approval of a generic
competitor to Maxipime.  Tysabri had a solid quarter with
approximately 14,000 patients on therapy as of mid-July 2007, an
increase of over 40% from when we reported last quarter.  We
expect Tysabri to continue to drive revenue growth.”

“With the earlier than expected entry of generic competition to
Maxipime, we will immediately adjust our commercial
infrastructure, reducing related selling and administration
costs, and we are targeting to contain Adjusted EBITDA losses
for 2007 at the previously guided US$50 million level,” Mr.
Cooke added.

                     About the Company

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company.  Elan shares trade on the New York, London and Dublin
Stock Exchanges.

                          *     *     *

In April 2007, in connection with the implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the corporate families in the Gaming, Lodging
and Leisure, Manufacturing, and Energy sectors, Moody's
Investors Service the rating agency confirmed its B3 Corporate
Family Rating for Elan Corporation plc and assigned a B2
probability-of-default rating to the company.

Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.

* Issuer: Elan Finance plc
                                                Projected
                              Debt     LGD      Loss-Given
   Debt Issue                 Rating   Rating   Default
   ----------                 -------  -------  --------
   US$300M Senior Unsecured
   Regular Bond/Debenture
   Due 2011                     B3      LGD4       65%

   US$300M Senior Unsecured
   Regular Bond/Debenture
   Due 2011                     B3      LGD4       65%

   US$150M Senior Unsecured
   Regular Bond/Debenture
   Due 2013                     B3      LGD4       65%

   US$850M 7.75% Senior Unsecured
   Regular Bond/Debenture
   Due 2011                     B3      LGD4       65%

   US$465M 8.875% Senior Unsecured
   Regular Bond/Debenture
   Due 2013                     B3      LGD4       65%

As reported in the TCR-Europe on Nov. 13, 2006, Standard &
Poor's Ratings Services assigned its 'B' rating to Elan Finance
plc's proposed offering of US$500 million senior unsecured notes
due 2013, to be issued in a combination of fixed and floating-
rate notes.

Outstanding ratings on Elan (including the 'B' corporate credit
rating) and its related entities were affirmed.  S&P said the
ratings outlook is stable.


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


ALMATY OIL: Proof of Claim Deadline Slated for September 7
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Almaty Oil insolvent on June 15.

Creditors have until Sept. 7 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Melnikaite Str. 7/1
         Almaty
         Kazakhstan
         Tel: 8 (3272) 29-52-83
              8 700 453 17-85


BEREL LLP: Creditors Must File Claims September 7
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Berel insolvent on June 15.

Creditors have until Sept. 7 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Melnikaite Str. 7/1
         Almaty
         Kazakhstan
         Tel: 8 (3272) 29-52-83
              8 700 453 17-85


D-ENERGOTRANZIT LLP: Claims Filing Period Ends September 5
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP D-Energotranzit insolvent on June 8.

Creditors have until Sept. 5 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


MUKASH OYIL: Creditors' Claims Due on September 5
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Mukash Oyil insolvent.

Creditors have until Sept. 5 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan
         Tel: 8 (3132) 21-30-32


PRIDE INTERNATIONAL: Moody’s Affirms Ba1 Corporate Family Rating
----------------------------------------------------------------
Moody's affirmed Pride International, Inc.'s credit ratings
following the company's announcement of the acquisition of a
newbuild drillship to be delivered in 2010.  

The ratings affirmed include the Ba1 corporate family rating,
the Ba2 rating on Pride's US$500 million senior notes due 2014,
the Baa2 rating on its US$500 million senior secured credit
facility and speculative grade liquidity rating of SGL-2. The
outlook is stable.

"Pride's recent drillship construction commitments reflect
management's strategy of increasing the ultradeepwater capacity
of its fleet," commented Pete Speer, Moody's Vice-
President/Senior Analyst.  "Although the US$1.4 billion cost and
lack of customer contracts for these drillships are substantial
risks, Pride's contract backlog, along with a favorable near
term outlook for the deepwater drilling sector, appears to
provide sufficient free cash flows to fund the construction
progress payments without significant additional debt.  These
investments will raise the overall quality of the company's
fleet while addressing shareholders' desires for growth or
return of capital.  Moody's considers these drillships to be a
full claim on Pride's free cash flow over the next few years."

The stable outlook is supported by Pride's US$5.7 billion
contract backlog and Moody's expectation that market conditions
will remain supportive for the remainder of 2007 and into 2008,
particularly for the deepwater markets.  

The stable outlook also reflects Moody's expectation that the
company will not add any additional newbuild commitments or rig
acquisitions without

   i. substantial equity funding or proceeds from the
      divestiture of its Latin American onshore business or
      other asset sales; and

  ii. a customer contract on the additional rig or at least one
      of the new drillships.

If the drillships remain without customer contracts for a
prolonged period the outlook could come under negative pressure.

There is limited upside to the rating in the near-to-medium term
due to the substantial funding commitments for the drillships
and little likelihood of further debt reduction.  Further
expansion of Pride's speculative newbuild program, debt-funded
rig or corporate acquisitions that do not include meaningful
equity funding, and/or debt-funded share repurchases could
result in a negative outlook or rating downgrade.

In July, Pride announced that it entered into a contract with
Samsung Heavy Industries Co., Ltd to construct a dual activity,
ultra-deepwater drillship for a cost of US$680 million,
excluding capitalized interest.  The drillship will be capable
of drilling in depths up to 12,000 feet, with total vertical
drilling depth of up to 40,000 feet, and is expected to be
delivered in the third quarter of 2010.  

Pride subsequently announced that it had acquired a second
speculative newbuild for about US$675 million that is currently
under construction with Samsung.  The drillship will be capable
of drilling in depths up to 10,000 feet, with total vertical
drilling depth of up to 40,000 feet, and is expected to be
delivered in the first quarter of 2010.

Pride does not have customer contracts for either drillship and
there are many newbuild ultra-deepwater drillships and
semisubmersibles scheduled for delivery in 2008 through 2010.  
Both construction contracts have been described as fixed-price,
but there are still risks of construction delays and cost
overruns due to modifications of equipment and design
specifications.  

While deepwater demand is currently very strong and there are
indications that this strength will continue, there is still
significant uncertainty in predicting market conditions three
years out.  In addition to the speculative nature of these
newbuilds and the funding of the combined US$1.4 billion cost,
the company's ratings are constrained by the overall size and
quality of Pride's fleet in comparison to its investment grade
competitors.

Although the company owns 60 rigs, including the two newbuilds,
38 are vintage shallow water jackups, mat, barge and other rigs.
Excluding these rigs, the company's 22 remaining rigs are much
smaller than the comparable fleet of Transocean/GlobalSantaFe
(142 rigs), Diamond Offshore Drilling (43), Noble Drilling (57)
and Ensco (48).

The company's smaller number and proportion of premium rigs
could pressure earnings in the next cyclical downturn because
premium equipment tends to keep working, albeit at lower
dayrates, compared to less capable older generation rigs which
often ends up being stacked.  Pride's shallow water jackups, mat
and barge rigs are particularly vulnerable to rapid declines in
utilization and dayrates.  

Also, while long-term contracts are beneficial to earnings
stability, there is still a risk that drilling contracts could
be amended or cancelled during industry downturns because of
construction delays, unsatisfactory rig performance or other
competitive considerations.  Additionally, in this high
utilization environment, escalating labor, raw material and
construction costs will continue to pose a challenge for Pride
as well as the rest of the industry in the near-to-medium term.

The ratings are supported by Pride's deepwater assets, which are
comparable in number with several offshore drilling peers and
represent the second largest fleet of dynamically positioned
deepwater rigs.  The company has also steadily reduced its
leverage (Debt/Capitalization of 37% at March 31, 2007 compared
to 55% at Dec. 31, 2004), strengthened the depth and experience
of its management team, and appears to have resolved its
previously persistent internal control issues.

Pride Ratings Affirmed:

-- Ba1 CFR and Probability of Default Rating;

-- US$500 million Senior Notes due 2014 rated Ba2 (LGD5, 71%);

-- US$500 million Senior Secured Credit Facility rated Baa2
    (LGD2, 13%);

-- Speculative Grade Liquidity Rating -- SGL-2;

-- Senior Unsecured Shelf rated (P)Ba2 (LGD5, 71%);

-- Subordinated Shelf rated (P)Ba2 (LGD6, 97%);

-- Preferred Shelf rated Ba2 (LGD6, 97%);

Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides     
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 277 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 16 tender-assisted, barge and platform rigs,
and 214 land rigs.  The company maintains worldwide operations
in France, Mexico, Kazakhstan, India, and Brazil, among others.


SHAHAN-ATA LLP: Claims Registration Ends September 7
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared LLP Shahan-Ata insolvent.

Creditors have until Sept. 7 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Jambyl
         Pushkin Str. 76
         Lugovaya Station
         Jambyl
         Kazakhstan


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


TRIZA LLC: Creditors Must File Claims by September 7
----------------------------------------------------
LLC Triza has declared insolvency.  Creditors have until Sept. 7
to submit written proofs of claim.

Inquiries can be addressed to (0-502) 55-03-31.


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


ADYGEYSKOE TRADING: Court Starts Bankruptcy Supervision Process
---------------------------------------------------------------
The Arbitration Court of Adygeya commenced bankruptcy
supervision procedure on LLC Adygeyskoe Trading Society (TIN
0105042632).  The case is docketed under Case No. A01-B849/
2007-3.

The Temporary Insolvency Manager is:

         A. Sovmiz
         Office 34
         Kurgannaya Str. 227
         Maykop
         385000 Adygeya
         Russia

The Court is located at:

         Arbitration Court of Adygeya
         Krasnooktyabrskaya Str. 15
         Maykop
         Adygeya
         Russia

The Debtor can be reached at:

         LLC Adygeyskoe Trading Society
         Adygeyskaya Str. 178
         Maykop
         Adygeya
         Russia


AGIS LLC: Creditors Must File Claims by August 30
-------------------------------------------------
Creditors of LLC Agis have until Aug. 30 to submit proofs of
claim to:

         A. Amirokov
         Temporary Insolvency Manager
         Internatsionalnaya Str. 48
         Cherkessk
         Karachaevo Cherkessiya
         Russia

The Arbitration Court of Rostov commenced bankruptcy supervision
procedure on the company.  The case is docketed under Case No.
A53-5026/2007-S1-33.

The Court is located at:

         The Arbitration Court of Rostov
         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         LLC Agis
         Zhelyabova Str. 30-A
         Novocherkassk
         Rostov
         Russia


BOGATYR LLC: Stavropol Bankruptcy Hearing Slated for Aug. 16
------------------------------------------------------------
The Arbitration Court of Stavropol will convene at 9:30 a.m.
on Aug. 16 to hear the bankruptcy supervision procedure on
LLC Bogatyr.  The case is docketed under Case No. A63-3281/
07-S5.

The Temporary Insolvency Manager is:

         E. Demicheva
         Pobedy Revolyutsii Pr. 85
         Shakhty
         346500 Rostov
         Russia

The Court is located at:

         The Arbitration Court of Stavropol
         Mira Str. 4586
         Stavropol
         Russia

The Debtor can be reached at:

         LLC Bogatyr
         Zaterechnyj
         Neftekumskiy
         356871 Stavropol
         Russia


COMPLEX CJSC: Creditors Must File Claims by August 30
-----------------------------------------------------
Creditors of LLC Manskiy Wood Working Complex have until Aug. 30
to submit proofs of claim to:

         D. Glushkov
         Insolvency Manager
         P. Zheleznyaka Str. 17
         660133 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarsk commenced bankruptcy
proceedings against the company after finding it insolvent.  
The case is docketed under Case No. A33-6084/2007.

The Court is located at:

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

The Debtor can be reached at:

         LLC Manskiy Wood Working Complex
         Kravchenko Str.
         Manskiy
         663517 Krasnoyarsk
         Russia


EAR OJSC: Orenburg Bankruptcy Hearing Slated for September 25
-------------------------------------------------------------
The Arbitration Court of Orenburg will convene at 10:00 a.m.
on Sept. 25 to hear the bankruptcy supervision procedure on
OJSC Ear.  The case is docketed under Case No. A47-11791/
2206-14 GK.

The Temporary Insolvency Manager is:

         V. Prokofyev
         Post User Box 80
         420094 Kazan
         Russia

The Court is located at:

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

The Debtor can be reached at:

         OJSC Ear
         Yafarovo
         Aleksandrovskiy
         Orenburg
         Russia


INDUSTRY CJSC: Creditors Must File Claims by August 30
------------------------------------------------------
Creditors of CJSC Industry have until Aug. 30 to submit proofs
of claim to:

         V. Khlyamov
         Insolvency Manager
         Obvodnogo Kanala Quay 181
         190103 St. Petersburg
         Russia

The Arbitration Court of Novgorod commenced bankruptcy
proceedings against the company after finding it insolvent.  
The case is docketed under Case No. A44-3417/2006-15k.

The Debtor can be reached at:

         CJSC Industry
         Egla
         Borovichi
         174425 Novgorod
         Russia


INTER-VOLGA OJSC: Creditors Must File Claims by September 7
-----------------------------------------------------------
Creditors of OJSC Inter-Volga (TIN 6320000900) have until
Sept. 7 to submit proofs of claim to:

         N. Gasanova
         Insolvency Manager
         Office 405
         Komsomolskaya Str. 84A
         455009 Samara
         Russia

The Arbitration Court of Samara commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A 32-12208/2004-44-94B.

The Debtor can be reached at:

         OJSC Inter-Volga
         Yuzhnoe Shosse 31
         Samara
         Russia


ISKRA CJSC: Court Names E. Mikhaylov as Insolvency Manager
----------------------------------------------------------
The Arbitration Court of Krasnodar appointed E. Mikhaylov as
Insolvency Manager for CJSC Iskra.  He can be reached at:

         E. Mikhaylov
         Insolvency Manager
         Samokatnaya Str. 4A
         111033 Moscow
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case
No. A 32-12208/2004-44-94B.

The Court is located at:

         The Arbitration Court of Krasnodar
         Krasnaya Str. 6
         Krasnodar
         Russia

The Debtor can be reached at:

         CJSC Iskra
         Balkovskaya St.
         Vyselkovskiy
         Krasnodar
         Russia


MARISK CJSC: Creditors Must File Claims by August 7
---------------------------------------------------
Creditors of CJSC North-West Marine Insurance Company Marisk
(TIN 5191401271) have until Aug. 7 to submit proofs of claim to:

         A. Gorelkin
         Insolvency Manager
         Naberezhnaya Str. 11
         Zverosovkhoz
         Kolskiy
         184366 Murmansk
         Russia

The Arbitration Court of Murmansk commenced bankruptcy
proceedings against the company after finding it insolvent.  
The case is docketed under Case No. A-42-2164/2007.

The Court is located at:

         The Arbitration Court of Murmansk
         Knipovicha Str. 20
         Murmansk
         Russia

The Debtor can be reached at:

         CJSC North-West Marine Insurance Company Marisk
         Lenina Pr. 55
         183038 Murmansk
         Russia


OMSK-TIRE KHABAROVSK: Creditors Must File Claims by August 30
-------------------------------------------------------------
Creditors of LLC Omsk-Tire Khabarovsk (TIN 2721075567) have
until Aug. 30 to submit proofs of claim to:

         S. Krylov
         Insolvency Manager
         Office 9
         Amurskiy Avenue 11
         680028 Khabarovks
         Russia

The Arbitration Court of Khabarovks commenced bankruptcy
proceedings against the company after finding it insolvent.  
The case is docketed under Case No. A73-14612/2006-39.

The Debtor can be reached at:

         LLC Omsk-Tire Khabarovsk
         Komsomolskaya Str. 30-1
         Khabarovks
         Russia


ORDZHONIKIDZEVSKIY WOOD: Creditors Must File Claims by Aug. 30
--------------------------------------------------------------
Creditors of OJSC Ordzhonikidzevskiy Wood Processing Mill have
until Aug. 30 to submit proofs of claim to:

         E. Gavrilets
         Insolvency Manager
         Post User Box 28348
         660118 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarsk commenced bankruptcy
proceedings against the company after finding it insolvent.  
The case is docketed under Case No. A33-3717/2006.

The Court is located at:

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

The Debtor can be reached at:

         OJSC Ordzhonikidzevskiy Wood Processing Mill
         Stroitelej Str. 19
         Ordzhonikidze
         Motyginskiy
         Krasnoyarsk
         Russia


PECHOR-MOR-NEFT:  Creditors Must File Claims by September 7
-----------------------------------------------------------
Creditors of OJSC Pechor-Mor-Neft (TIN 8300120060) have until
Sept. 7 to submit proofs of claim to:

         A. Gorelkin
         Insolvency Manager
         Naberezhnaya Str. 11
         Zverosovkhoz
         Kolskiy
         184366 Murmansk
         Russia

The Arbitration Court of Murmansk commenced bankruptcy
proceedings against the company after finding it insolvent.  
The case is docketed under Case No. A42-8296/2006.

The Court is located at:

         The Arbitration Court of Murmansk
         Knipovicha Str. 20
         Murmansk
         Russia

The Debtor can be reached at:

         OJSC Pechor-Mor-Neft
         Office 302
         K. Marksa Str. 19
         Murmansk
         Russia


ROSNEFT OIL: VSNK Board Asks Shareholders to Accept Buyout Offer
----------------------------------------------------------------
The board of directors of East Siberian Oil and Gas Co.
(Vostsibneftegaz) has recommended that shareholders accept a
buyout offer from LLC NeftAktiv, a unit of OAO Rosneft Oil Co.,
Interfax News reports.

The board urged shareholders to accept the offer since it is
higher than the market value of the shares.  The board noted
that VSNK’s market share value is not expected to change after
the acquisition, Interfax relates.



Rosneft, through Neft-Aktiv, acquired 70.78% of VSNK in May 2007
during the auction for the assets of bankrupt OAO Yukos Oil Co.

Earlier this month, RosBusinessConsulting reported that VSNK's
shareholders resolved not to pay any dividends due to the losses
incurred by the company between 2004-2006.

                          About Rosneft

Headquartered in Moscow, Russia, OAO Rosneft Oil Co. --
http://www.rosneft.com/-- produces and markets petroleum
products.  The Company explores for, extracts, refines and
markets oil and natural gas.  Rosneft produces oil in Western
Siberia, Sakhalin, the North Caucasus, and the Arctic regions of
Russia.

                            *   *   *

As of July 17, 2007, OAO Rosneft Oil Co. carries a BB+ long-term
corporate credit rating from Standard & Poor's Ratings Services.
Outlook is positive.Neft-Aktiv, in which Rosneft indirectly owns
100%, made an offer on July 16 to buy Vostsibneftegaz common
shares at 3.1 rubles per share. Neft-Aktiv acquired 70.78% of
Vostsibneftegaz in May at a Yukos bankruptcy auction.


SABLE OJSC: Creditors Must File Claims by August 7
--------------------------------------------------
Creditors of OJSC Sable have until Aug. 7 to submit proofs of
claim to:

         V. Sirotkin
         Post User Box 646
         656031 Barnaul
         Russia

The Arbitration Court of Altay commenced bankruptcy supervision
procedure on the company.  The case is docketed under Case No.
A03-5210/07-B.

The Debtor can be reached at:

         OJSC Sable
         Lesnoe
         Bijskij
         Altay
         Russia


UKHRA-WOOD CJSC: Court Names E. Ryndenko as Insolvency Manager  
--------------------------------------------------------------
The Arbitration Court of Yaroslavl appointed E. Ryndenko as
Insolvency Manager for CJSC Ukhra-Wood.  He can be reached at:

         E. Ryndenko
         Post User Box 13
         Rybinsk
         152930 Yaroslavl
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case
No. A82-1896/05-56-B/7.

The Debtor can be reached at:

         E. Ryndenko
         Post User Box 13
         Rybinsk
         152930 Yaroslavl
         Russia


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


PYME Valencia: Fitch Junks EUR15.3 Million Class E Notes
--------------------------------------------------------
Fitch has assigned PYME Valencia 1 FTA's CDO notes totaling
EUR865.3 million, due in March 2040, final ratings:

   -- EUR180 million Class A1: 'AAA'
   -- EUR574.8 million Class A2: 'AAA'
   -- EUR47.6 million Class B: 'A'
   -- EUR34 million Class C: 'BBB'
   -- EUR13.6 million Class D: 'BB'
   -- EUR15.3 million Class E: 'CC'

The ratings on the Class A to E notes address the payment of
interest on the notes according to the terms and conditions of
the documentation, subject to a deferral trigger on the Class B,
C and D notes, as well as the repayment of principal on or
before the legal final maturity date.  The legal final maturity
date for all the notes is 39 months after the maturity of the
longest-dated small- and medium-sized enterprises loan, this
delay having been deemed adequate to ensure that collections
from the loans are sufficient to redeem the obligations of the
issuer in respect of any defaulted collateral.

This transaction is a cash flow securitization of a
EUR850 million static pool of secured and unsecured loans
granted by Banco de Valencia (rated 'A'/'F1'/Stable) to SMEs in
Spain.  Some 73% of the collateral by volume is linked to first-
ranking mortgages, of which 25.4% is linked to residential
properties and 74.6% on commercial real estate assets such as
offices, industrial outlets, land and factories.

This is BValencia's fourth standalone securitisation transaction
and its first SME loan securitization.  BValencia is a regional
bank mainly operating in the regions of Valencia and Murcia.

The Class E notes have been issued to finance the creation of
the reserve fund at closing.  Because the Class E notes are
likely to default, their rating is supported by the expected
recovery rate.  The Class A to D notes are subject to a clean-up
call option in favor of the sociedad gestora when less than 10%
of the initial collateral balance remains outstanding.  The
clean-up call will only be executed if the then-outstanding
balance of the Class A to D notes is redeemed in full.  The
clean-up call does not guarantee partial or full redemption of
the Class E notes.


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


ATLAS TREASURY: Creditors' Liquidation Claims Due August 31
-----------------------------------------------------------
Creditors of JSC Atlas Treasury Department (Switzerland) have
until Aug. 31 to submit their claims to:

         JSC Intra Investment & Trading Company
         Liquidator
         Blegistrasse 7
         6340 Baar
         Switzerland

The Debtor can be reached at:

         JSC Atlas Treasury Department (Switzerland)
         Baar ZG
         Switzerland


BEST PACK: Basel Court Starts Bankruptcy Proceedings
----------------------------------------------------
The Bankruptcy Court of Arlesheim in Basel commenced bankruptcy
proceedings against LLC Best Pack Union on May 22.

The Bankruptcy Service of Arlesheim can be reached at:

         Bankruptcy Service of Arlesheim
         4144 Arlesheim BL
         Switzerland

The Debtor can be reached at:

         LLC Best Pack Union
         Frankfurtstr. 66
         4142 Munchenstein
         Arlesheim BL
         Switzerland


BISSEGGER IMMOBILIEN: Creditors' Liquidation Claims Due Aug. 31
---------------------------------------------------------------
Creditors of LLC Bissegger Immobilien have until Aug. 31 to
submit their claims to:

         Speerstrasse 23
         9500 Wil SG
         Switzerland

The Debtor can be reached at:

         LLC Bissegger Immobilien
         Wil SG
         Switzerland


E. HELLER: Creditors' Liquidation Claims Due October 15
-------------------------------------------------------
Creditors of JSC E. Heller AG Immobilien have until Oct. 15 to
submit their claims to:

         Josef Frohlicher
         Liquidator
         JSC Frohlicher Baumanagement
         Mail box: 553
         4502 Solothurn
         Switzerland

The Debtor can be reached at:

         JSC E. Heller AG Immobilien
         Solothurn
         Switzerland


FLORFIS JSC: Creditors' Liquidation Claims Due August 13
--------------------------------------------------------
Creditors of JSC Florfis have until Aug. 13 to submit their
claims to:

         Parkstrasse 33
         4102 Binningen
         Arlesheim BL
         Switzerland

The Debtor can be reached at:

         JSC Florfis
         Binningen
         Arlesheim BL
         Switzerland


HCA INC: S&P Affirms 'BB-' Rating on Second-Lien Debt
-----------------------------------------------------
(Switzerland)
Standard & Poor's Ratings Services affirmed its issue-level
ratings on HCA Inc.'s US$22.5 billion secured financing, while
revising its recovery rating on the company's second-lien debt.  
The loan rating on the second-lien debt was affirmed at 'BB-'
and the recovery rating was revised to '2', indicating that
lenders can expect substantial (70%-90%) recovery in the event
of a payment default, from '1'.  The loan rating on the first-
lien debt was affirmed at 'BB', and the recovery rating on this
debt remains at '1', indicating that lenders can expect very
high recovery (90%-100%) in the event of a payment default.

The likelihood of default for the issues is reflected in the
issuer corporate credit rating of B+/Negative/--, which has not
changed.  However, with the introduction of S&P's new recovery
rating scale and issue rating framework that became effective as
of June 7, 2007, and now incorporates recoveries in all secured
issue-level ratings, as well as the inclusion of six months pre-
petition interest, the recovery rating on the second-lien debt
has been revised accordingly to reflect this debt's substantial
recovery prospects.

Ratings List

Ratings Affirmed

HCA Inc.
Corporate Credit Rating    B+/Negative/--
US$16.8B First-Lien          BB
   Recovery Rating          1

Issue-Level Rating Affirmed; Recovery Rating Revised
                            To           From
                            --           ----
US$5.7B Second-Lien          BB-          BB-
   Recovery Rating          2            1

Headquartered in Nashville, Tennessee, HCA (Hospital Corporation
of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/--
is a healthcare services provider, composed of locally managed
facilities that include around 173 hospitals and 107
freestanding surgery centers (including seven hospitals and nine
freestanding surgery centers operated through equity method
joint ventures) located in 20 states, London, England and
Geneva, Switzerland.


HORST SCHMIDL: Creditors' Liquidation Claims Due August 31
----------------------------------------------------------
Creditors of JSC Horst Schmidl have until Aug. 31 to submit
their claims to:

         Mythenstrasse 127
         8810 Horgen ZH
         Switzerland

The Debtor can be reached at:

         JSC Horst Schmidl
         Horgen ZH
         Switzerland


KOCH BAUMONTAGEN: Creditors' Liquidation Claims Due August 8
------------------------------------------------------------
Creditors of LLC Koch Baumontagen have until Aug. 8 to submit
their claims to:

         Rigiblickstrasse 28
         6048 Horw LU
         Switzerland

The Debtor can be reached at:

         LLC Koch Baumontagen
         Horw LU
         Switzerland


KREBS & Co: Creditors' Liquidation Claims Due August 24
-------------------------------------------------------
Creditors of JSC Krebs & Co have until Aug. 24 to submit their
claims to:

         Dr. U. Schafer
         Liquidator
         Lavaterstrasse 57
         8002 Zurich
         Switzerland

The Debtor can be reached at:

         JSC Krebs & Co
         Zurich
         Switzerland


VADEX JSC: Creditors' Liquidation Claims Due August 31
------------------------------------------------------
Creditors of JSC Vadex have until Aug. 31 to submit their claims
to:

         Dr. Heiner Bernold
         Liquidator
         Bahnhofstrasse 7
         Mail box: 715
         6301 Zug
         Switzerland

The Debtor can be reached at:

         JSC Vadex
         Zug
         Switzerland


VERFATEC BRUGG: Bern Court Starts Bankruptcy Proceedings
--------------------------------------------------------
The Bankruptcy Court of Bern commenced bankruptcy proceedings
against LLC Verfatec Brugg on July 3.

The Bankruptcy Service of Bern can be reached at:

         Bankruptcy Service of Bern
         Office Seeland
         2501 Biel/Bienne BE
         Switzerland

The Debtor can be reached at:

         LLC Verfatec Brugg
         Moosweg 8
         2555 Brugg AG
         Switzerland


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


AGRO-ALIANCE LLC: Creditors Must File Claims by August 2
--------------------------------------------------------
Creditors of LLC Agro-Aliance (code EDRPOU 00431906) have until
August 2 to submit written proofs of claim to:

The Economic Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 10/80-07.

The Court is located at:

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

The Debtor can be reached at:

         LLC Agro-Aliance
         Zhmerinka district, Korostovtsy
         23150 Vinnica
         Ukraine


KOLUMNA LLC: Creditors Must File Claims by August 2
---------------------------------------------------
Creditors of LLC Kolumna (code EDRPOU 34510890) have until
August 2 to submit written proofs of claim to:

         Michael Tsurika
         Apartment 41
         General Karpenko Str. 2/1
         54038 Nikolaev
         Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 2/348/07.

The Court is located at:

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


MANAS-PRIM LLC: Creditors Must File Claims by August 2
------------------------------------------------------
Creditors of LLC Manas-Prim (code EDRPOU 33896354) have until
August 2 to submit written proofs of claim to:

         Michael Tsurika
         Apartment 41
         General Karpenko Str. 2/1
         54038 Nikolaev
         Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 2/349/07.

The Court is located at:

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


MLINOV PETROLEUM: Creditors Must File Claims by August 2
--------------------------------------------------------
Creditors of Mlinov State Enterprise Petroleum Agricultural
Technical Service (code EDRPOU 13988183) have until August 2 to
submit written proofs of claim to:

         Vasily Rybak
         Liquidator
         Kievskaya Str. 34, 117
         33027 Rivne
         Ukraine

The Economic Court of Rivne commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 8/29.

The Court is located at:

         The Economic Court of Rivne
         Yavornitski Str. 59
         33001 Rivne
         Ukraine

The Debtor can be reached at:

         Mlinov State Enterprise Petroleum
         Agricultural Technical Service
         Kotovsky Str. 50
         Mlinov
         Rivne
         Ukraine


MONOLIT LLC: Creditors Must File Claims by August 2
---------------------------------------------------
Creditors of LLC Production-Commerce Firm Monolit (code EDRPOU
30991067) have until August 2 to submit written proofs of claims
to:

         The Economic Court of Kharkov
         Derzhprom 8th Entrance
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. B-31/72-06.

The Debtor can be reached at:

         LLC Production-Commerce Firm Monolit
         Pesochin, Koltsevaya Str. 41
         Kharkov
         Ukraine


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


CELESTICA INC: Second Qtr. 2007 Revenue Decreases to US$1.9 Bln
---------------------------------------------------------------
Celestica Inc. reported revenue of US$1.9 billion, down 13% from
US$2.2 billion in the second quarter of 2006.  Net earnings for
the second quarter were US$24.9 million, compared to net loss of
US$30.3 million for the same period last year.  Included in net
earnings for the quarter are the impacts of a US$32 million net
deferred tax recovery related primarily to the tax benefit of
previous years' write-down of restructured Canadian operations
and restructuring charges of US$2.5 million.  For the same
period in 2006, restructuring charges were US$20 million.

Adjusted net earnings for the quarter were US$4.9 million,
compared to adjusted net earnings of US$29.1 million for the
same period last year.  These results compare with the company's
guidance for the second quarter, announced on April 25, 2007, of
revenue in the range of US$1.85 billion to US$2.05 billion.

For the six months ended June 30, 2007, revenue was US$3.8
billion, compared to US$4.2 billion for the same period in 2006.  
Net loss was US$9.4 million, compared to net loss of US$47.7
million last year. Adjusted net loss for the first half of 2007
were US$4.2 million, compared to adjusted net earnings of
US$46.5 million for the same period in 2006.

The company’s balance sheet as of June 30, 2007, showed
US$4.7 billion total assets, US$2.6 billion total liabilities,
and US$2.6 billion total stockholders’ equity.

"Our second quarter results demonstrate the steady progress we
are making as a result of the turnaround plans implemented
earlier this year," said Craig Muhlhauser, president and chief
executive officer, Celestica.  "Revenue is trending upwards,
working capital performance is improving and we continue to make
operational improvements in North America and Europe.  Our
operating profit is still at the early stages of recovery and we
expect to continue to build on the improvements made to date."

                              Outlook

For the third quarter ending Sept. 30, 2007, the company expects
revenue will be in the range of US$2 billion to US$2.2 billion.

                          About Celestica

Celestica Inc. (NYSE:CLS) -- http://www.celestica.com/--  
provides innovative electronics manufacturing services.  Through
its global manufacturing and supply chain network, the company
delivers competitive advantage to companies in the computing,
communications, consumer, industrial, and aerospace and defense
end markets.  Celestica operates a highly sophisticated global
manufacturing network with operations in Brazil, China, Ireland,
Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United
Kingdom, among others.

                          *     *     *

As reported in the Troubled Company Reporter on May 4, 2007,
Moody's Investors Service downgraded Celestica Inc.'s corporate
family rating to B1 from Ba3 and the senior subordinated note
ratings to B3 from B2.  Simultaneously, Moody's lowered the
company's speculative grade liquidity rating to SGL-2 from
SGL-1.


COMPUTER SERVICES: Taps A. Poxon to Liquidate Assets
----------------------------------------------------
A. Poxon of DTE Leonard Curtis was appointed liquidator of
Computer Services (North West) Ltd. on July 12 for the
creditors’ voluntary winding-up proceeding.

The liquidator can be reached at:

         DTE Leonard Curtis
         DTE House
         Hollins Mount
         Bury
         BL9 8AT
         England


ENIGMA RETAIL: Claims Filing Period Ends September 7
----------------------------------------------------
Creditors of Enigma Retail Ltd. have until Sept. 7 to send their
names and addresses, with particulars of their debts and claims,
to:

         David Michael Riley and Simon Peter Bower
         Joint Liquidators
         Grant Thornton U.K. LLP
         30 Finsbury Square
         London
         EC2P 2YU
         England

David Michael Riley and Simon Peter Bower of Grant Thornton U.K.
LLP were appointed joint liquidators of the company on July 12
for the creditors’ voluntary winding-up procedure.


EUROHOME MORTGAGES: Fitch Rates EUR2.7 Mln Class X Notes at BB+
---------------------------------------------------------------
Fitch Ratings has assigned final ratings to Eurohome Mortgages
2007-1 P.L.C.'s mortgage-backed securities due August 2050.  
This is Deutsche Bank AG's (rated 'AA-'/Outlook positive/'F1+')
first transaction under the Eurohome platform in continental
Europe.

   -- EUR262.5 million Class A due 2050, ISIN XS0309227279:
      'AAA', Outlook Stable;

   -- EUR15 million Class B due 2050, ISIN XS0309230497: 'AA',
      Outlook Stable;

   -- EUR12 million Class C due 2050, ISIN XS0309232196: 'A',
      Outlook Stable;

   -- EUR6.3 million Class D due 2050, ISIN XS0309232600: 'BBB',
      Outlook Stable;

   -- EUR4.2 million Class E due 2050, ISIN XS0309233244: 'BBB',
      Outlook Stable;

   -- EUR2.7 million Class X due 2050, ISIN XS0309234309: 'BB+',
      Outlook Stable;

   -- Italian mortgage early repayment certificates (MERCS),
      ISIN XS0309788031: 'AAA', Outlook Stable; and

   -- German MERCS, ISIN XS0309236007: 'AAA', Outlook Stable.

The final ratings are based on the quality of the collateral,
available credit enhancement and excess spread.  The ratings
also take into account the transaction's sound legal structure,
the underwriting and servicing of the mortgage loans and the
available liquidity facility.  At closing, credit enhancement,
provided by subordination and the reserve fund, totals 13% for
the Class A notes, 8% for the Class B notes, 4% for the Class C
notes, 1.9% for the Class D notes and 0.5% for the Class E
notes.  In addition, credit enhancement is provided by excess
spread.  The X notes partially fund the reserve account as well
as certain other expenses and are repaid through the revenue
waterfall, i.e. from excess spread.

The MERCS are notes backed by the lender's right to receive
early repayment charges in case borrowers prepay their loan.  
The ratings of MERCs address the likelihood of receipt of MERC
payments assuming that:

    (i) payment of the mortgage early redemption charges is
        legally valid, binding and enforceable against the
        borrowers and

   (ii) such mortgage early redemption charges are actually
        collected from borrowers, and not waived by the seller.

As a result, the ratings do not address an expected amount of
any payments to be distributed but solely describe the
likelihood that payments received as early repayment charges by
the issuer are transferred to the MERC investors.  Moreover, if
borrowers' prepayments on the loans are faster- or slower-than-
expected, investors in MERCs may fail to recover their initial
investment.

This transaction is a securitization of standard and non-
standard residential mortgage loans originated in Italy and
Germany.  The aggregate portfolio volume as of 31 May 2007
amounted to EUR300 million.  The residential mortgages are
originated by Deutsche Bank Mutui S.p.A. in Italy and Deutsche
Bank AG in Germany.  DB Mutui is a wholly owned subsidiary of
Deutsche Bank S.p.A., a 94%-owned subsidiary of Deutsche Bank
AG.

All loans in the German and Italian pools are secured by first-
ranking mortgages on residential properties in Germany and
residential and commercial properties in Italy.  The Italian
portfolio also includes loans to non-Italian citizens who have
moved to Italy (14.3%) as well as non-standard mortgage loans
(39.3%) granted for purposes other than buying, building or
restructuring the borrowers' home (i.e. liquidity and
consolidation loans).

Regarding the German pool, it is the fourth transaction of high
loan-to-value loans, but the first transaction that contains
borrowers with adverse credit marks (less than 1% of original
pool balance).  Fitch has adjusted its modeling assumptions to
reflect the nature of these borrowers.

To determine appropriate credit enhancement levels, Fitch
analyzed the collateral using its Italian Residential Mortgage
Default Model for the Italian loan pool and its German
Residential Mortgage Default Model for the German mortgage pool,
adjusting them to account for additional risks associated with
non-standard lending.  The agency also modeled the cash flow
contribution from excess spread using its European RMBS Cash
Flow Model, applying the default and recovery assumptions
indicated by the German and Italian default models.


FORD MOTOR: Moody’s Holds B3 CFR with Negative Outlook
------------------------------------------------------
Moody's Investors Service said that the performance of Ford
Motor Company's global automotive operations for the second
quarter of 2007 was significantly stronger than the previous
year and better than street expectations.

However, the company continues to face significant competitive
and financial challenges, and the rating agency expects that
Ford's credit metrics and rate of cash consumption will likely
remain consistent with no higher than a B3 corporate family
rating level into 2008.

Ford's corporate family rating is currently a B3 with a negative
outlook.  The rating is pressured by the shift in consumer
preference from high margin trucks and SUVs, and by the need for
a new 2007 UAW contract that provides meaningful relief from
high health care costs and burdensome work rules.

The most daunting long-term challenge facing Ford will be
building the profitability of its car and crossover models, and
reducing its overdependence on trucks and SUVs to generate
earnings. Although lowering its cost structure, including
healthcare costs, is an important element of this profit
rebuilding initiative, the most critical and most difficult
challenge for both Ford and the other domestic OEMs, will be
convincing consumers that they will receive adequate value if
they pay higher prices for their cars and crossover vehicles.

"Domestic OEM's have a cost disadvantage of about US$1,000 per
vehicle relative to Japanese transplants due to health care
costs.  However, the differential between what consumers are
willing to pay for a US car or crossover compared with a
similarly equipped Japanese vehicle is significantly greater,"
said Bruce Clark, senior vice president with Moody's.

Ford and the other domestic OEMs may be able to reach a health
care buy-down agreement with the UAW that is structurally
similar to that reached by Goodyear, and thereby narrow the
US$1,000 per vehicle health care cost disadvantage.  Moody's
believes that Ford may have the resources necessary to fund a
material health care buy-down, and thereafter maintain the
liquidity necessary to cover the US$15 to US$16 billion
operating cash consumption that the company expects will occur
through 2008.

This liquidity includes US$37 billion in cash and short-term
VEBA balances, US$13 billion in availability under a committed
credit facility, and any proceeds that would be raised by the
potential sale of the Jaguar, Land Rover and Volvo operations.  
However, if a constructive health care agreement were reached by
Ford and the other domestic OEMs, the company will still have to
contend with a significant pricing differential versus its
Japanese competitors.

Mr. Clark said, "In terms of overall quality, performance, and
safety, the Ford Fusion is pretty competitive with vehicles like
the Camry, Accord and Altima.  However, after taking all
incentives and rebates into consideration, consumers are willing
to pay in the neighborhood of US$4,000 more for one of these
vehicles that for a Fusion.  Put another way, Ford has to charge
US$4,000 less than the competition to get consumers to buy one
of its best vehicles, and the differential is much wider for
other cars in the Ford line up."

In contrast, Ford does not face the same type of endemic pricing
disadvantage in the truck and SUV segments.  In these vehicle
categories, consumers perceive Ford as being able to deliver
good value for which they are willing to pay.  But, as Clark
pointed out, "The problem is that consumers are moving away from
these vehicle segments."

Moody's believes that Ford continues to make solid progress in
improving the quality and value proposition of its cars and
crossovers relative to those of Japanese manufacturers.  
However, Mr. Clark said that, "Not only does Ford have to
continue delivering better quality vehicles, it has to convince
consumers to pay up for them.  Convincing consumers to do this
will take time and it will also require the design of vehicles
that make a strong and appealing visual statement." According to
Mr. Clark, "GM and Chrysler face similar challenges."

Until the profitability base of vehicles other than trucks and
SUVs becomes more substantive, Ford's intermediate-term cash
flow will remain negative and the company will have to maintain
the liquidity necessary to cover this outflow.

Ford Motor Company, a leading global automotive manufacturer, is
headquartered in Dearborn, Michigan.


HOST HOTELS: Net Income Decreases to US$149 Mln in 2nd Qtr. 2007
----------------------------------------------------------------
Host Hotels & Resorts Inc. disclosed last week its results of
operations for the second quarter ended June 15, 2007.
Total revenue increased US$210 million, or 17.8%, to US$1.39
billion  for the second quarter and US$422 million, or 21.0%, to
US$2.43 billion for year-to-date 2007.  Excluding the revenues
for the Starwood portfolio, which was purchased in April 2006,
revenues increased 8.4% and 7.9% for the second quarter and
year-to-date 2007, respectively.

Net income decreased US$181 million to US$149 million for the
second quarter and US$166 million to US$336 million for year-to-
date 2007.

Net income in 2007 included a net loss of approximately
US$46 million for the second quarter, and a net gain of US$90
million for year-to-date 2007 associated with the refinancing of
debt and gains (losses) on hotel dispositions.

By comparison, net income in 2006 included a net gain of
approximately US$199 million, and US$345 million in the second
quarter and year-to-date 2006, respectively, associated with
similar transactions, as well as preferred stock redemptions and
non-recurring costs associated with the Starwood acquisition.

The company also announced the following second quarter results
for Host Hotels & Resorts L.P., through which it conducts all of
its operations and holds approximately 97% of the partnership
interests:

Net income decreased US$189 million to US$154 million for the
second quarter and US$176 million to US$348 million for year-to-
date 2007.

Adjusted EBITDA, which is Earnings before Interest Expense,
Income Taxes, Depreciation, Amortization and other items,
increased 19.3% to US$414 million for the second quarter and
21.1% to US$677 million for year-to-date 2007.

             Financing Activities and Balance Sheet

During the second quarter, the company continued to reduce
interest costs, as well as manage its capital structure to
provide financial flexibility.  On May 2, 2007, the company paid
approximately US$547 million in connection with the defeasance
of US$514 million of mortgage debt with a 7.61% interest rate,
primarily utilizing proceeds from its March issuance of
US$600 million of 25/8% Exchangeable Senior Debentures.  The
payment included approximately US$33 million in
prepayment/defeasance and other costs.  

On May 25, 2007, the company successfully amended its credit
facility to increase the size of the facility to US$600 million,
extend the maturity from 2008 to 2011 and modify the terms of
the facility, including lowering the rate of interest on
borrowings from a spread of 200 to 375 basis points over LIBOR
to 65 to 150 basis points over LIBOR, depending on the company's
leverage ratio.  The amended facility also has an accordion
feature that allows for total borrowing capacity of up to US$1
billion.  There are currently no amounts outstanding under the
facility.  Since Dec. 31, 2006, the company has decreased its
weighted average interest rate from 6.8% to 6.1% as a result of
its 2007 refinancings.

As of June 15, 2007, the company had approximately of cash and
cash equivalents.  Excluding amounts necessary for working
capital, the company intends to use its remaining available
funds to further invest in its portfolio, acquire new properties
or make further debt repayments.

At June 15, 2007, the company's consolidated balance sheet
showed US$11.81 billion in total assets, US$6.2 billion in total
liabilities, US$214 million of interest of minority partners of
Host Hotels & Resorts LP and other consolidated partnerships,
and US$5.3 billion in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 15, 2007, are available
for free at http://researcharchives.com/t/s?21d7

Host Hotels & Resorts, Inc. -- http://www.hosthotels.com/--
(NYSE:HST) is a lodging real estate investment trust and owns
luxury and upper upscale hotels.  The company currently owns 121
properties with approximately 64,000 rooms, and also holds a
minority interest in a joint venture that owns seven hotels in
Europe with approximately 2,700 rooms.  Guided by a disciplined
approach to capital allocation and aggressive asset management,
the company partners with premium brands such as Marriott(R),
Ritz-Carlton(R), Westin(R), Sheraton(R), W(R), St. Regis(R), The
Luxury Collection(R), Hyatt(R), Fairmont(R), Four Seasons(R),
Hilton(R) and Swissotel(R)* in the operation of properties in
over 50 major markets worldwide.

                          *     *     *

As reported in the Troubled Company Reporter on May 7, 2007,
Standard & Poor's Ratings Services revised its rating outlook on
Host Hotels to positive from stable.  All ratings on the
company, including the 'BB' corporate credit rating, were
affirmed.


INEOS GROUP: S&P Affirms B+ Ratings on Expected Results
-------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B+' long-
term corporate credit ratings on U.K.-based chemicals group
Ineos (including Ineos Group Holdings PLC, Ineos Holdings Ltd.,
Ineos Vinyls Finance PLC, and Ineos Vinyls Ltd.).  The outlook
is stable.

"The affirmation reflects 2006 key cash flow metrics and
liquidity that were in line with our expectations and should
remain so in the medium term, with notably FFO to adjusted debt
above 10%," said Standard & Poor's credit analyst Lucas Sevenin.

The stable outlook reflects S&P’s expectation for continued good
petrochemical cycles in the medium term, with potential
pressures between 2009 and 2010.

"We expect Ineos to generate positive free operating cash flow
in 2007, reap continued benefits from fixed-cost savings, and
maintain adequate cash flow coverage ratios as a result of
balanced investments, restructuring, and acquisitions," said Mr.
Sevenin.

The ratings could come under pressure if free operating cash
flow becomes significantly negative, major production issues
affect profits for a prolonged period, or the next cyclical
downturn arrives sooner or is more pronounced than anticipated.

Any ratings upside assumes the use of additional cash flows to
enhance the group's financial profile, as opposed to shareholder
distributions or growth.  The ratings could be positively
affected if Ineos' business plan fully delivers, notably on
savings; currently good cycles persist far longer than expected;
or the next cyclical slump is more modest than anticipated.


IT’S YOUR GROUP: Brings In Liquidators from Wilkins Kennedy
-----------------------------------------------------------
Stephen P. Grant and Anthony M. Cork of Wilkins Kennedy were
appointed joint liquidators of It’s Your Group Plc on July 12
for the creditors’ voluntary winding-up proceeding.

The joint liquidators can be reached at:

         Wilkins Kennedy
         Bridge House
         London Bridge
         London
         SE1 9QR
         England


LEVEL 3: Posts US$202 Million Net Loss in Second Quarter of 2007
----------------------------------------------------------------
Level 3 Communications Inc. reported net loss for the second
quarter 2007 was US$202 million, compared to a net loss of
US$647 million for the previous quarter.  Included in the net
loss for the first quarter 2007 was a US$427 million loss on the
extinguishment or refinancing of long-term debt.

Consolidated revenue was US$1.052 billion for the second quarter
2007, compared to consolidated revenue of US$1.056 billion for
the first quarter 2007.  

"While we have a great deal of work remaining, we made good
progress on our overall integration of acquired companies,"
James Q. Crowe, CEO of Level 3, said.  "We are pleased with the
continued positive operating environment in terms of demand and
importantly, our efforts from integration and continued cost
savings resulted in improved profitability and growth in
Consolidated Adjusted EBITDA."

               Consolidated Cash Flow and Liquidity

During the second quarter 2007, Unlevered Cash Flow was negative
US$64 million, versus negative US$69 million for the previous
quarter.  Consolidated Free Cash Flow for the second quarter
2007 was negative US$141 million, versus negative US$248 million
for the previous quarter, resulting primarily from a decrease in
net cash interest expense partially offset by higher capital
expenditures.  Net cash interest expense for the second quarter
2007 was US$77 million.

Working capital was a use of cash in the quarter, primarily from
a reduction in accounts payable and an increase in accounts
receivable as days sales outstanding increased during the
quarter.

As of June 30, 2007, the company had cash and marketable
securities of approximately US$807 million.

                          About Level 3

Headquartered in Broomfield, Colorado, Level 3 Communications
Inc. (Nasdaq: LVLT) -- http://www.level3.com/-- is an  
international communications company.  The company provides a
comprehensive suite of services over its broadband fiber optic
network including Internet Protocol (IP) services, broadband
transport and infrastructure services, colocation services,
voice services and voice over IP services.  
As of December 31, 2006, the Company had approximately 73,000
intercity route miles in the United States and Europe,
connecting 16 countries.

                          *     *     *

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

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


LIVE NATION: Moody’s Lifts Rating to Ba3 on Term Loan & Facility
----------------------------------------------------------------
Moody's Investors Service upgraded Live Nation Worldwide Inc.'s
Senior Secured Term Loan and Revolving Credit Facility to Ba3
from B1 and affirmed the company's SGL-3 speculative grade
liquidity rating following the company's US$220 million
Convertible Notes offering.

Moody's also affirmed all other ratings for Live Nation,
including the company's B1 corporate family rating.  The outlook
remains stable.

The ratings upgrade for Live Nation's Senior Secured Term Loan
and Revolving Credit Facility is based on Moody's loss given
default methodology and results solely from Live Nation's US$220
million Convertible Notes offering which provides additional
debt cushion to the secured credit facility and enhances
liquidity.  Proceeds from the offering will be used to repay
US$90 million of the company's term loan and outstanding
balances under the revolving credit facility.  The remainder
will be used for general corporate purposes.

The B1 corporate family rating continues to reflect the
financial risk posed by the inherent volatility of live
entertainment, high adjusted debt to EBITDA leverage and lack of
free cash flow.  Live Nation's rating is supported by its
leading market position in the live entertainment industry,
significant geographic diversification and the strong ties the
company has with first-tier concert and theater performers and
their producers.

Ratings/Assessments Upgraded:

Live Nation Worldwide, Inc.

-- US$285 million Senior Secured Revolver Ba3 (LGD3, 33%)
-- US$325 million Term Loan Ba3 (LGD3, 33%)
-- US$225 million Term Loan Ba3 (LGD3, 33%)

Ratings affirmed:

-- Corporate family rating B1;
-- Probability-of-default rating B1
-- SGL-3 speculative grade liquidity

The rating outlook is stable.

Live Nation Worldwide, Inc., headquartered in Beverly Hills,
California, owns, operates and/or exclusively books live
entertainment venues in the U.S. and Europe.


MAX VISION: High Court to Hear Wind-Up Petition on August 13
------------------------------------------------------------
The Secretary of State for Business, Enterprise & Regulatory
Reform has presented petitions in the High Court to wind up
Plas Tech Vision Ltd. and Max Vision U.K. Ltd. in the public
interest.

Plas Tech Vision carried on business selling electronic
advertisements displayed on plasma screens sited in restaurants
and other similar establishments throughout the U.K., while Max
Vision commenced trading in a similar line of business before
moving on to the sale of advertising space on printed wall
planners and desktop pads based around the fixture lists of a
number of professional/semi-professional football clubs.

The petitions to wind up the companies were presented following
an investigation carried out by Companies Investigation Branch
under Section 447 of the Companies Act 1985 (as amended).

The Official Receiver has been appointed provisional liquidator
of Max Vision.

The case is now subject to High Court action and no further
information will be made available until the petitions are heard
in the High Court on Aug. 13, 2007.


MEGA BRANDS: Weak Leverage Cues Moody's B1 Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of MEGA Brands, Inc. to B1 from Ba3 and affirmed the speculative
grade liquidity rating of SGL-3.  The outlook is stable.  This
concludes the review for downgrade initiated on April 19, 2007.

The downgrade was the result of:

   (1) a deterioration in financial metrics that resulted from
       significant additional charges reported in 2006 and the
       first quarter of 2007 primarily related to Magnetix
       product safety issues for the recall, redesign,
       repackaging and restocking of the product as well as
       payments made to settle related consumer litigation; and  

   (2) the uncertainties that still exist concerning the Rose
       Art business and its Magnetix brand.

MEGA Brands' B1 rating is based primarily on:

   (1) weak leverage and coverage ratios resulting from the
       debt-financed acquisition of Rose Art in 2005 and the
       recent Magnetix charges; and

   (2) the recent and potential future impact on revenues,
       profitability and operating cash flows due to the issues
       with Magnetix and the Rose Art litigation.

These issues are partially offset by:

   (1) the company's leading market position in a limited
       number of narrow categories and strong second positions           
       in larger categories dominated by much larger players;

   (2) a growing product portfolio with some well-known brands
       in attractive categories due in large part to a robust
       R&D program consistently producing innovative products;

   (3) healthy levels of organic growth in most product lines;
       and

   (4) certain long-term benefits expected from the Rose Art
       acquisition including customer, category, and market
       diversification as well as annual integration synergies.

It appears that the Magnetix product issues are now fully scoped
and largely resolved and management has fully reserved for the
Rose Art earn-out litigation.  Moody's notes however, that a
number of uncertainties remain which could result in further
unplanned costs or unfavorable results and these uncertainties
contributed to the downgrade.

Relating to Magnetix, uncertainties include:

   (1) the exposure for one full year of self-insured long-tail
       product liability;

   (2) the ability to recover approximately US$12.5 million in
       litigation settlements from insurance proceeds; and
    

   (3) the impact of the Magnetix product safety issues on the
       company's brand value and expected revenue growth.

Relating to Rose Art, these include:

   (1) the impact of the loss of the former owners/operators;

   (2) the unresolved litigation related to the US$51 million
       disputed earn-out;

   (3) the ability to realize the synergies and growth planned
       from the acquisition; and

   (4) the risk of higher taxes in the future should there be an
       impairment in the US$300 million of tax-deductible
       goodwill recorded in connection with the acquisition.

Other factors posing a challenge to the company include risks
specific to the toy industry including, changing play patterns
of children, fashion risk of toys, extreme seasonality, and weak
retailer leverage with sales concentrated with a few large
customers.

The application of Moody's global packaged goods rating
methodology yields a B1 rating for MEGA Brands which is the same
level as the current rating.

The stable outlook assumes no further material unplanned costs
or unfavorable results from product safety issues and litigation
and solid operating performance in core brands.  This will be
evident in improving leverage and coverage ratios going forward,
and these expectations are incorporated into the stable outlook.

The Company's speculative grade liquidity rating of SGL-3
reflects the reliance on external sources to fund its operations
and capital expenditures, which is due in part to the highly
seasonal nature of its operational cash flows which will likely
be negative in some quarters over the next 12 months.  The
company's recent tight liquidity has been improved through an
amendment to the terms of its loans which provides immediate
covenant relief as well as a significant increase expected in
availability on the Company's US$120 revolver from an infusion
of US$72 million in equity as of July 25, 2007.  Absent
unexpected costs the company should have sufficient availability
under its revolver to fund its peak seasonal needs in 2007 and
2008 with a reasonable cushion.

These ratings were downgraded:

   * MEGA Brands, Inc.

   -- Corporate Family Rating to B1 from Ba3;

   -- Probability of Default to B2 from B1;

   -- US$120 million 5-year revolving credit facility maturing
      July 2010 to Ba3 (LGD2, 26%) from Ba2 (LGD2, 24%); and

   -- US$40 million, 5-year term loan A facility to Ba3 (LGD-2,
      26%) from Ba2 (LGD2, 24%).

   * MEGA Brands Finco

   -- US$260 million 7-year term loan B facility to Ba3 (LGD2,
      26%) from Ba2 (LGD2, 24%).

Based in Montreal, Canada, 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.


MERCATOR CLO III: S&P Rates EUR10.9 B-2 Notes at BB-
----------------------------------------------------
Standard & Poor's Ratings Services has assigned its preliminary
credit ratings to the floating-rate notes to be issued by
Mercator CLO III Ltd.
  
At closing, Mercator CLO III will issue the notes, the proceeds
of which, net of any upfront costs and expenses, will be used to
acquire a portfolio of senior secured loans, second-lien loans,
mezzanine loans, senior secured bonds, and synthetic securities.
  
The portfolio will be managed by NAC Management (Cayman) Ltd. as
collateral manager and New Amsterdam Capital Management LLP as
collateral adviser.  It will be NAC's third leveraged loan CLO
rated by Standard & Poor's.  The transaction is expected to be
at least 70% ramped at closing with a par amount of EUR300
million.
  
Mercator CLO III may include up to 20% of British pound sterling
assets.  The currency mismatch between these assets and the
entirely euro-denominated liabilities will be mitigated via a
portfolio hedge comprising a rolling cancellable and
accellerable principal and basis swap, and sterling options
purchased by the issuer.

                          Ratings List
  
Mercator CLO III Ltd.
   EU307.7 Million Floating-Rate Notes
  
                            Prelim.        Prelim. Amount
           Class            Rating           (Mil. EUR)
           -----            ------            --------
            A-1              AAA               199.5
            A-2              AA                 31.5
            A-3 deferrable
            notes            A                  18.0
            B-1 deferrable
            notes            BBB-               18.0
            B-2 deferrable
            notes            BB-                10.9
            Subordinated
            notes            NR                 29.8
  
NR — Not rated.


PLAS TECH: High Court to Hear Wind-Up Petition on August 13
-----------------------------------------------------------
The Secretary of State for Business, Enterprise & Regulatory
Reform has presented petitions in the High Court to wind up
Plas Tech Vision Ltd. and Max Vision U.K. Ltd. in the public
interest.

Plas Tech Vision carried on business selling electronic
advertisements displayed on plasma screens sited in restaurants
and other similar establishments throughout the U.K., while Max
Vision commenced trading in a similar line of business before
moving on to the sale of advertising space on printed wall
planners and desktop pads based around the fixture lists of a
number of professional/semi-professional football clubs.

The petitions to wind up the companies were presented following
an investigation carried out by Companies Investigation Branch
under Section 447 of the Companies Act 1985 (as amended).

The Official Receiver has been appointed provisional liquidator
of Max Vision.

The case is now subject to High Court action and no further
information will be made available until the petitions are heard
in the High Court on Aug. 13, 2007.


RELISYS LTD: Joint Liquidators Take Over Operations
---------------------------------------------------
Kerry Bailey and Jonathan D. Newell of PKF (U.K.) LLP were
appointed joint liquidators of Relisys Ltd. on July 16 for the
creditors’ voluntary winding-up procedure.

The joint liquidators can be reached at:

         PKF (U.K.) LLP
         Sovereign House
         Queen Street
         Manchester
         M2 5HR
         England


SMURFIT KAPPA: Completes Amendment of Senior Credit Facilities
--------------------------------------------------------------
Smurfit Kappa Group plc has secured approval from its lenders
and amended certain terms of its senior credit facilities
including a reduction in margin across each of the facilities.

“We are pleased to complete this amendment.  This has resulted
in a reduction in the Group's overall cost of debt and gives SKG
greater financial flexibility,” Smurfit Kappa Group Finance
Director Ian Curley commented.

A Group subsidiary has commenced a cash tender offer for all of
its dollar denominated 9.5/8% Senior Notes due 2012 and all of
its euro denominated 10.1/8% Senior Notes due 2012.

                   About Smurfit Kappa Group

Headquartered in Dublin, Ireland, Smurfit Kappa Group --
http://www.smurfit-group.com/-- manufactures containerboard
and converts it into corrugated cases, folding cartons, paper
sacks, tubes, and composite cans. Other products include
boxboard, sack kraft paper, and printing and writing paper.  The
company produces 6 million tons of paper annually and has 300
facilities worldwide.  In Latin America, the company operates in
Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican
Republic, Ecuador, Mexico and Venezuela.

                        *     *     *

As reported in the TCR-Europe on March 27, 2007, Moody's
Investors Service assigned a Ba3 Corporate Family Rating to
Smurfit Kappa plc, the ultimate parent company of Smurfit Kappa
Holdings plc and the entity publishing consolidated group
accounts, and simultaneously withdrew the CFR for Smurfit Kappa
Holdings plc.

In line with Moody's Loss-Given-Default methodology, a
"Probability of Default Rating" of Ba3 was also assigned.  
Moody’s said the outlook is stable.

Following the completion of Smurfit Kappa Acquisitions' initial
public offering of new shares in Smurfit Kappa Plc, and the use
of proceeds to prepay debt, Fitch has also taken a series of
rating actions for the group:

* Smurfit Kappa Acquisitions' Issuer Default rating is
   upgraded to 'BB-' from 'B+'; the Rating Watch Positive
   status is removed and a Stable Outlook is in place.  Its
   senior secured facilities are affirmed at 'BB+' and the
   rating for the guaranteed debenture notes is upgraded to
   'BB+' from 'BB'.

* Smurfit Kappa Funding's remaining EUR131 million and
   US$280 million senior notes due 2012 are upgraded to 'BB-'
   from 'B' and are placed on Rating Watch Positive pending the
   outcome of the further tender offer launched by the company
   on Thursday, March 22.  Its EUR217.5 million and US$200
   million senior subordinated notes due 2015 are upgraded to
   'B+' from 'B-'.

* The rating for the Smurfit Kappa Holdings PIK notes is
   upgraded to 'B' and withdrawn.  A summary of these debt
   instrument ratings is shown below.

* Smurfit Kappa Group's IPO raised EUR1,495 million in gross
   primary proceeds, EUR200 million more than anticipated, and
   the company has immediately applied proceeds in redemption of
   its PIK Notes and a part of its 2012 senior notes.  Fitch
   estimates that SKG's net total leverage has been reduced as a
   result of the IPO to 4.3x on a pro forma basis from 5.3x
   reported at FYE06.  The company has issued a redemption
   notice for the remaining PIK Notes that will be redeemed in
   April.

At the same time, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Ireland-based paper and
packaging company Smurfit Kappa Group Ltd. to 'BB-' from 'B+'.

In addition, all other long-term corporate credit, secured, and
unsecured ratings on the company and related entities were
raised by one notch.  All ratings were removed from CreditWatch
where they were placed with positive implications on Jan. 10,
2007.  S&P said the outlook is stable.  Standard & Poor's also
affirmed the recovery rating of '3' on two group facilities.


* Large Companies with Insolvent Balance Sheet                             
----------------------------------------------

                                Shareholders    Total   Working
                                    Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)
Rhi AG                               (85)       1,573      210


BELGIUM
-------
City Hotels               CITY.BR     (7)         210      (15)
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)


DENMARK
-------
Elite Shipping                       (28)         101       19


FRANCE    
------
Arbel                     PA.ARB     (116)        194      (94)
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Charbo De France                  (3,872)       4,738   (2,868)
Dollfus Mieg & Cie S.A.   DS         (16)         143      (45)
Euro Computer System                (110)         682      377
Genesys S.A.              GNS.PA     (10)         120       (5)
Grande Paroisse S.A.                (927)         629      330
Groupe Eurotunnel         GET      (2935)        9958    (9345)
Immob Hoteliere                      (65)         259       10
Matussiere et Forest S.A. MTF        (78)         294      (28)
Outremer Telecom          OMT        (33)         229      (88)
Pagesjaunes GRP           PAJ      (2718)       1,121     (291)
Pneumatiques Kleber S.A.             (34)         480      139
Rhodia S.A.               RHA       (828)       6,796      531
SDR Centrest                        (132)         252      N.A.
SDR Picardie                        (135)         413      N.A.
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
Selcodis S.A.             SPVX       (18)         128       22
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Cognis Deutschland
   GmbH & Co. KG                    (174)       3,003      606
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG       (10)         111      N.A.
Kaufring AG               KAUG       (19)         151      (51)
Maternus Kliniken AG      MAK.F       (4)         201      (20)
Nordsee AG                            (8)         195      (31)
Schaltbau Hold            SLTG       (20)         162       (4)
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
Vivanco Gruppe                       (33)         132      (45)


GREECE
------
Empedos S.A.              EMPED      (34)         175      (48)
Radio A.Korassidis        KORA      (101)         181     (139)
   Commercial

HUNGARY
-------
IPK Osijek DD OS          IPKORA     (18)         190     (320)


ICELAND
-------
Decode Genetics Inc.      DCGN        (55)         216      146

IRELAND
-------
Waterford Wed Ut          WTFU       (145)         897       209


ITALY
-----
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Gruppo Coin S.p.A.        GC        (154)         801      (50)
Compagnia Italia          ICT       (138)         527     (235)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                      (152)         732     (322)
I Viaggi del
   Ventaglio S.p.A.       VVE.MI     (61)         487      (57)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (18,419)       4,121  (12,481)
Snia S.p.A.               SN         (39)         275       36
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Vista Alegre Atlantis
   SGPS S.A.              VAAAE      (18)         193      (83)  

ROMANIA
-------
Rafo Onesti               RAF       (395)         359    (1695)


RUSSIA
------
East Siberia Brd          VSNK       (40)         106      (70)
Gukovugol Pfd             GUUGP      (58)         144    (4094)
OAO Samaraneftegas                  (332)         892  (16,942)
Vimpel Ship               SOVP       (77)         188     (927)
Zil Auto                 ZILLP      (178)         425  (10,597)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.                     (116)       1,283     (278)
Santana Motor S.A.                   (46)         223       41


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UKRAINE
-------
Dniprooblenergo           DNON       (40)         477     (807)
Donetskoblenergo          DOON      (286)         587    (1991)


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
Alldays Plc                         (120)         252     (202)
Amey Plc                             (49)         932      (47)
Atkins (WS) Plc           ATK       (150)       1,390       62
BCH Group Plc             BCH         (6)         188      (44)
Blenheim Group            BEH       (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Ltd        523362Q (5,823)       4,921      290
British Energy Plc        BGY     (5,823)       4,921      434
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Britvic Plc               BVIC      (108)         874      (20)
Cineworld Groug           CINE      (115)         748        7
Compass Group             CPG       (668)       2,972     (298)
Costain Group             COST      (108)         595      (61)
Danka Bus System          DNK.L     (108)         540        34
Easynet Group             ESY.L      (45)         323        38
Electrical and Music              
   Industries Group       EMI      (2266)       2,950      (296)
Euromoney Institutional
   Investor Plc           ERM.L      (50)         448      (67)
Galiform Plc              GFRM      (152)         889       35
Global Green Tech Group             (156)         408      (18)
Heath Lambert
   Fenchurch Group Plc               (10)       4,109      (10)
HMV Group Plc             HMV        (26)        1273     (269)
Imperial Chemical
   Industries Plc         ICI       (370)       8,393        2
Invensys PLC                        (276)       3,914      357
IPC Media Ltd.                      (685)         254       16
Jarvis Plc                JRVS.L     (28)         370      (22)
Ladbrokes Plc             LAD     (1,227)       1,669     (267)
Lambert Fenchurch Group               (1)       1,827        3
Lattice Group                     (1,290)      12,410   (1,228)
London Stock Exchange     LSE       (689)         526     (195)
M 2003 Plc                        (2,204)       7,205     (756)
Misys Plc                 MSY         (7)       1,123     (131)
Mytravel Group            MT.L      (380)       1,818     (488)
Orange Plc                ORNGF     (594)       2,902        7
Regus Plc                 RGU.L      (46)         367      (60)
Rentokil Initial Plc      RTO     (1,044)       3,507     (457)
Saatchi & Saatchi         SSI       (119)         705      (41)
SFI Group                           (108)         178     (162)
Skyepharma PLC            SKP        (95)         211      (15)
Smiths News PLC           NWS       (119)         225      (57)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,631)
Wincanton Plc             WIN        (27)       1,451      (78)

                           *********

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

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

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

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

                           *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel P. Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A.
Godinez, and Pius Xerxes Tovilla, Editors.

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

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

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

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


                 * * * End of Transmission * * *