TCREUR_Public/070807.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, August 7, 2007, Vol. 8, No. 155

                            Headlines


A U S T R I A

CROSSMEDIA PRINT: Claims Registration Period Ends Sept. 5
DRUGOWITSCH BAU: Claims Registration Period Ends Sept. 17
FRANZ RATHWALLNER: Wels Court Orders Business Shutdown
HASAG MOEBEL: Claims Registration Ends Sept. 17
ITH SYSTEMS: Claims Registration Period Ends Sept. 4

LEUPRECHT RECHTSANWALT: Stefan Offer Represents Administrator
STEFAN LLC: Claims Registration Period Ends Sept. 13

B E L G I U M

CHIQUITA BRANDS: Earns US$8.6 Million in 2007 Second Quarter
CHIQUITA BRANDS: Weak Operating Results Cue S&P to Lower Rating

C Z E C H   R E P U B L I C

ANDREW CORP: Inks Third Amendment to Credit Agreement

D E N M A R K

EASTMAN KODAK: Earns US$592 Mln in Quarter Ended June 30, 2007

F R A N C E

ALCATEL-LUCENT: Costa Rica Sues Former President on Corruption
BOSTON SCIENTIFIC: Fitch Lowers Senior Notes Rating to BB+
BOSTON SCIENTIFIC: S&P Downgrades Corp. Credit Rating to BB+
CHEMTURA CORP: Incurs US$2 Million Net Loss in 2007 Second Qtr.
PERNOD RICARD: Posts EUR6.44 Billion Annual Sales for 2007

SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27

G E O R G I A

CANARGO ENERGY: Divests Entire 17.7% Stake in Tethys Petroleum
METROMEDIA INT'L: Rejects Takeover Offer from Fursa Alternative

G E R M A N Y

AL-BAN IMMOBILIENFONDS: Creditors' Meeting Slated for Sept. 19
ARGUS GASTSTATTENBETREIBER: Claims Registration Ends Sept. 18
ASAT HOLDINGS: Interest Payment Delay Cues S&P's Junk Rating
ASAT HOLDINGS: Moody's Downgrades Corporate Family Rating to Ca
DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus

DAIMLERCHRYSLER: Chrysler's July Sales Outside N. America Up 24%
LAZARD LTD: Paying US$0.09 Per Share Qtrly Dividend on Aug. 31
PRIME 2006-1: Fitch Rates EUR13 Million Class E Notes at BB
PROSIEBENSAT.1 MEDIA: Fitch Affirms and Withdraws BB- Ratings

G R E E C E

WIND HELLAS: Tellas Sale Cues Fitch to Monitor Ownership

H U N G A R Y

HUTSCHENTEUTHER HUNGARIA: Sells Assets in Liquidation
VALEANT PHARMACEUTICALS: Earns US$16.8 Million in Second Quarter

I R E L A N D

ADVANCED MEDICAL: Posts US$166 Mln Net Loss in Second Quarter
W.R. GRACE: Completes Washcoat Biz Sale to Rhodia Silcea

I T A L Y

ALITALIA SPA: Italian Magistrate Probes Alitalia Insider Trading
FIAT SPA: Requests Delisting from New York Stock Exchange
HUNTSMAN CORP: Holders Linked with MatlinPatterson Sell Shares
TEKSID ALUMINUM: Soliciting Consents to Amend 11-3/8% Notes

K A Z A K H S T A N

BAREGIT-KAZAKHSTAN: Claims Filing Period Ends Sept. 14
BT FOOD-2: Creditors Must File Claims Sept. 12
GARANT+ LLP: Claims Filing Period Ends Sept. 12
KULAGER JSC: Creditors' Claims Due on Sept. 18
MONTAGE-CENTRE LLP: Claims Registration Ends Sept. 12

SERVICE-KAZAKHSTAN TRACTOR: Creditors Must File Claims Sept. 12
SEYNUR LLP: Claims Filing Period Ends Sept. 6
TEMIR BOLAT: Creditors' Claims Due on Sept. 12
XXX AKTOBE: Claims Registration Ends Sept. 12

K Y R G Y Z S T A N

MEDICAMENTY ROSSIYI: Claims Filing Period Ends September 11
OZKENT LLC: Creditors' Meeting Slated for August 17

N O R W A Y

DRESSER-RAND: Earns US$26.2 Million in Second Quarter of 2007
DRESSER-RAND: Supplying NatGas Compression Unit to P-18 Oil Rig

P O R T U G A L

QUANTUM CORP: Posts US$22.6 Mln Net Loss in Qtr. Ended June 30

R U S S I A

A. RADISHEV: Creditors Must File Claims by Sept. 14
BELGOK CJSC: Court Starts Bankruptcy Supervision Procedure
BUCYRUS INT'L: Earns US$27.8 Million in Second Quarter 2007
BRISTOW GROUP: First Quarter Net Earnings Increase by 31.6%
DEB-IMPORT CJSC: Creditors Must File Claims by Aug. 14

DMITROVSK-CERAMICS: Creditors Must File Claims by Sept. 14
IRKUTSKIY WOOD: Creditors Must File Claims by Sept. 14
MALACHITE LLC: Bankruptcy Hearing Slated for Nov. 27
MUGREEVSKOE PEAT: Ivanovo Bankruptcy Hearing Slated for Oct. 17
NORTH-WEST TELECOM: To Issue RUR3 Bln Bonds to Fund Investments

OAO NOVATEK: Buys Stakes in Companies with Yamal-Nenets Licenses
PRODZERNO LLC: Creditors Must File Claims by Aug. 14
RASSVET CJSC: Creditors Must File Claims by Sept. 14
ROSBANK: Better Performance Cues Fitch to Upgrade Ratings to BB-
ROSNEFT OIL: In Talks to Sell Non-Core Units to SoyuzNefteGaz

SP-KHOLOD CJSC: Creditors Must File Claims by Aug. 14
SADOVOD CJSC: Creditors Must File Claims by Sept. 14
TANTAL-D CJSC: Creditors Must File Claims by Sept. 14
UNIKOM CJSC: Creditors Must File Claims by Sept. 14
USEC INC: Posts US$13.4 Mln Net Loss in Quarter Ended June 30

VALDAY LLC: Court Names A. Boravchenkov as Insolvency Manager
VORKUTINSKIY BREWERY: Asset Sale Slated for August 21

S W I T Z E R L A N D

PETROPLUS HOLDINGS: Acquisition News Cues S&P to Hold BB Ratings
PETROPLUS FINANCE: S&P Rates US$1.2 Bln. High-Yield Notes at BB-

T U R K E Y

YAPI VE KREDI: Fitch Rates IDR at BB with Stable Outlook

U K R A I N E

AIST AND FA: Creditors Must File Claims by Aug. 8
DIONA LLC: Creditors Must File Claims by Aug. 8
FRUTIS LAND: Creditors Must File Claims by Aug. 8
GERMES-TRUST LLC: Creditors Must File Claims by Aug. 8
IRINA AND K: Creditors Must File Claims by Aug. 8

KHADZHYBEYEVSKOE OJSC: Creditors Must File Claims by Aug. 8
ODESSABUILDING OJSC: Proofs of Claim Filing Deadline Set Aug. 8
ORYSCHI LLC: Creditors Must File Claims by Aug. 8
TRADE-ZAPOROZHJE: Creditors Must File Claims by Aug. 8
UKRAINE LLC: Creditors Must File Claims by Aug. 8

VELSOFT LLC: Creditors Must File Claims by Aug. 8
VYSHNIVCHIK AGRICULTURAL: Creditors Must File Claims by Aug. 8

U N I T E D   K I N G D O M

ALLIANCE BOOTS: Banks Defers Sale of Second-Lien Loans
BAA LTD: Ferrovial to Complete Refinancing by Year-End
BALLY TOTAL: Moody's Withdraws Ratings After Bankruptcy Filing
BAXALL LTD: Brings In Joint Administrators from KPMG
BOMFORDS LTD: Administrators Complete Business & Assets Sale

BRITISH AIRWAYS: Earns GBP269 Mln in Three Months Ended June 30
BRITISH AIRWAYS: Named Worst Performing Major Airline by AEA
CHANGE UK: Creditors' Meeting Slated for August 10
DD HOME: Appoints KPMG LLP as Joint Administrators
DECO 2005-UK: Interest Shortfall Cues S&P to Cut Rating to D

DEDICATE TRADING: C. B. Barrett Leads Liquidation Procedure
DEVON CIDER: Appoints Administrators from Smith & Williamson
DIGITAL POS: Joint Liquidators Take Over Operations
FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site
GETTY IMAGES: Earns US$33.7 Million in Quarter Ended June 30

HILTON HOTELS: Reports US$165 Mil. Net Income in Second Quarter
HOTHOUSE TRADING: Taps J. M. Titley to Liquidate Assets
INCO LTD: Sales Up 232% to US$859 Million in 2nd Qtr. FY 2007
ISLE OF CAPRI: Posts US$4.6 Million Net Loss in 2007
KRISPY KREME: S&P Puts B- Rating on Corp. Credit Rating

MEDAL ENTERTAINMENT: Taps Joint Administrators from KPMG
NORTEL NETWORKS: Posts US$37 Mln Net Loss in Qtr. Ended June 30
NOVAGEN LTD: Brings In Liquidators from Tenon Recovery
ODYSSEY RE: Earns US$145.5 Million in Second Qtr. 2007
SADLER UTILITIES: Calls In Liquidators from Vantis

SERVICEMASTER: Amended Credit Pact Cues S&P to Watch B+ Ratings
TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer
THERMOMAX LTD: Names Joint Administrators from PwC

* Large Companies with Insolvent Balance Sheet


                            *********


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


CROSSMEDIA PRINT: Claims Registration Period Ends Sept. 5
---------------------------------------------------------
Creditors owed money by LLC Crossmedia Print (FN 206165i) have
until Sept. 5 to file written proofs of claim to court-appointed
estate administrator Ferdinand Bruckner at:

         Dr. Ferdinand Bruckner
         c/o Dr. Elisabeth Zonsics-Kral
         Schubertstrasse 10/3/5/9
         2100 Korneuburg
         Austria
         Tel: 02262/72 9 39
         Fax: 02262/729 39 15
         E-mail: bruckner@raedrb-drz.at
                 widhalm@raedrb-drz.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 1:30 p.m. on Sept. 19 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Korneuburg
         Room 204
         Second Floor
         Korneuburg
         Austria

Headquartered in Wolkersdorf im Weinviertel, Austria, the Debtor
declared bankruptcy on June 29 (Bankr. Case No. 36 S 90/07p).
Elisabeth Zonsics-Kral represents Dr. Bruckner in the bankruptcy
proceedings.


DRUGOWITSCH BAU: Claims Registration Period Ends Sept. 17
---------------------------------------------------------
Creditors owed money by LLC Drugowitsch Bau (FN 198202z) have
until Sept. 17 to file written proofs of claim to court-
appointed estate administrator Peter Posch at:

         Dr. Peter Posch
         Eisenhowerstrasse 40
         4600 Wels
         Austria
         Tel: 07242/61212
         Fax: 07242/47167
         E-mail: peter.posch@kapo.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:40 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 Wels, Austria, the Debtor declared bankruptcy
on July 3 (Bankr. Case No. 20 S 85/07m).


FRANZ RATHWALLNER: Wels Court Orders Business Shutdown
------------------------------------------------------
The Land Court of Wels entered July 3 an order shutting down the
business of LLC Franz Rathwallner Metall und Technik & Co KG (FN
132500d).

Court-appointed estate administrator Berthold Martin Breitwieser
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. Berthold Martin Breitwieser
         Johann Strauss Strasse 1
         4701 Bad Schallerbach
         Austria
         Tel: 07249/48286-0
         Fax: 07249/48286-4
         E-mail: kanzlei@ra-breitwieser.at

Headquartered in Pollham, Austria, the Debtor declared
bankruptcy on June 29 (Bankr. Case No 20 S 81/07y).


HASAG MOEBEL: Claims Registration Ends Sept. 17
-----------------------------------------------
Creditors owed money by LLC HASAG Moebel (FN 146470y) have until
Sept. 17 to file written proofs of claim to court-appointed
estate administrator Christian Rumplmayr at:

         Dr. Christian Rumplmayr
         Stadtplatz 36
         Third Floor
         4840 Voecklabruck
         Austria
         Tel: 07672/75931
         Fax: 07672/75953
         E-mail: rumplmayr@jusonline.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 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 Attnang - Puchheim, Austria, the Debtor
declared bankruptcy on July 2 (Bankr. Case No. 20 S 82/07w).


ITH SYSTEMS: Claims Registration Period Ends Sept. 4
----------------------------------------------------
Creditors owed money by LLC ITH systems (FN 276157p) have until
Sept. 4 to file written proofs of claim to court-appointed
estate administrator Georg Schober at:

         Dr. Georg Schober
         Hauptplatz 11
         2700 Wiener Neustadt
         Austria
         Tel: 02622/23228
         Fax: 02622/23228-26
         E-mail: g.schober@schober.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Sept. 18 for the
examination of claims.

The meeting of creditors will be held at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Wiener Neustadt, Austria, the Debtor declared
bankruptcy on July 2 (Bankr. Case No. 11 S 78/07t).


LEUPRECHT RECHTSANWALT: Stefan Offer Represents Administrator
-------------------------------------------------------------
In the bankruptcy proceedings of LLC Leuprecht Rechtsanwalt
(FN 227092i), the Land Court of Innsbruck approved July 5, the
appointment of Stefan Offer as representative of the Debtor's
estate administrator Dr. Wolfgang Offer.

The representative of the estate administrator can be reached
at:

         Dr. Stefan Offer
         Museumstrasse 16
         6020 Innsbruck
         Austria
         Tel: 0512/582833
         Fax: 0512/570484
         E-mail: office@kanzlei-offer.at

Headquartered in Innsbruck, Austria, the Debtor declared
bankruptcy on June 25 (Bankr. Case No. 9 S 13/07x).


STEFAN LLC: Claims Registration Period Ends Sept. 13
----------------------------------------------------
Creditors owed money by LLC Stefan (FN 62960p) have until
Sept. 13 to file written proofs of claim to court-appointed
estate administrator Herwig Ernst at:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 27 for the
examination of claims.

The meeting of creditors will be held at:

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

Headquartered in Korneuburg, Austria, the Debtor declared
bankruptcy on July 5 (Bankr. Case No. 32 S 7/07b).  Robert
Zauchinger represents Dr. Ernst in the bankruptcy proceedings.


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


CHIQUITA BRANDS: Earns US$8.6 Million in 2007 Second Quarter
------------------------------------------------------------
Chiquita Brands International Inc. released financial and
operating results for the second quarter 2007.  Second quarter
net sales increased by 2 percent year-over-year to US$1.3
billion, and the company reported net income of US$8.6 million,
or US$0.20 per diluted share, including a charge of US$3
million, or US$0.07 per share, related to a settlement of U.S.
antitrust litigation.  The company reported net income of US$23
million, or US$0.54 per diluted share, in the year-ago period.

"We were not satisfied with our second quarter results," said
Fernando Aguirre, chairman and chief executive officer.  "We are
taking aggressive actions to address continuing challenging
market conditions and expect to reverse the recent trend and
begin delivering modest year-over-year improvements in operating
results starting in the third quarter."

Mr. Aguirre continued, "We remain confident in our strategy to
generate sustainable, profitable growth by delivering innovative
higher-margin products and building a high-performance
organization.  We were pleased to complete the previously
announced strategic shipping agreement, during the quarter and
use a significant portion of the proceeds from that transaction
to pay down debt.  We will continue to take actions to
strengthen our balance sheet, improve our risk profile, focus
our efforts on market activities, and diversify our company by
product, channel and geography."

Chiquita repaid more than US$200 million of debt during the
second quarter, primarily from proceeds from the sale of its 12
refrigerated cargo vessels.  As a result, the company's total
debt at June 30, 2007, was US$857 million, compared to US$1.061
billion at March 31, 2007.  The company expects to continue
paying down debt until it reaches its target debt-to-capital
ratio of 40 percent, compared to 49 percent at June 30, 2007.

                   About Chiquita Brands

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads.  The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide including
Panama, Philippines, Australia, Belgium, Germany, among others.
It also distributes and markets fresh-cut fruit and other
branded, value-added fruit products.

                       *     *     *

As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service Ratings affirmed these ratings on
Chiquita Brands International Inc.: (i) corporate family rating
at B3; (ii) probability of default rating at B3; (iii) USUS$250
million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%);
and (iv)  USUS$225 million 8.875% senior unsecured notes due
2015 at Caa2 (LGD5, 89%).  Moody's changed the rating outlook
for Chiquita Brands to negative from stable.

Troubled Company Reporter reported on May 4, 2007, that Standard
& Poor's Ratings Services placed its 'B' corporate credit and
other ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc. on CreditWatch with negative implications,
meaning that the ratings could be lowered or affirmed following
the completion of their review.  Total debt outstanding at the
company was about USUS$1.3 billion as of March 31, 2007.


CHIQUITA BRANDS: Weak Operating Results Cue S&P to Lower Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on Cincinnati, Ohio-based Chiquita Brands
International Inc., to 'B-' from 'B', and removed the rating
from CreditWatch with negative implications where it was placed
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.

"The downgrade follows Chiquita's recent second-quarter earnings
release and reflects continued deterioration in operating
performance and credit measures, and weak covenant cushion,"
said Standard & Poor's credit analyst Alison Sullivan.

At the same time, Standard & Poor's raised the ratings on
Chiquita's US$200 million revolving credit facility to 'B+', two
notches above the corporate credit rating, removed the ratings
from CreditWatch negative, and revised the recovery rating to
'1', indicating expectations of very high (90%-100%) recovery in
the event of a payment default, from '2'.  The improved recovery
on the revolver reflects repayment of the term loan B (US$24
million outstanding as of March 31, 2007), and US$90 million of
mortgage debt related to shipping assets that were recently
sold.

Also, Standard & Poor's lowered the ratings on Chiquita's
US$368 million term loan C to B, one notch above the corporate
credit rating, removed the ratings from CreditWatch negative,
and revised the recovery rating to 2, indicating expectations of
substantial (70%-90%) recovery in the event of a payment
default, from 1.  In addition, Standard & Poor's lowered the
ratings on the senior unsecured notes to CCC, two notches below
the corporate credit rating, and removed those ratings from
CreditWatch negative.

The outlook is negative.  Total debt outstanding at the company
was about US$857 million as of June 30, 2007.

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads.  The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide including
Panama, Philippines, Australia, Belgium, Germany, among others.
It also distributes and markets fresh-cut fruit and other
branded, value-added fruit products.


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


ANDREW CORP: Inks Third Amendment to Credit Agreement
-----------------------------------------------------
Andrew Corporation entered into a third amendment to its credit
agreement, effective as of June 30, 2007, with certain financial
institutions named in the third amendment and Bank of America,
National Association, as Administrative Agent, for the Lenders
and as l/c issuer.

The Third Amendment amends in certain respects Andrew's Credit
Agreement dated as of Sept. 29, 2005, which was filed as Exhibit
99.2 to Andrew's Form 8-K filed on Oct. 5, 2005, as amended by a
First Amendment to Credit Agreement dated as of June 16, 2006,
which was filed as Exhibit 10.1 to Andrew's Form 8-K filed on
June 20, 2006, and a Second Amendment to Credit Agreement dated
as of July 13, 2007, which was filed as Exhibit 10.1 to Andrew's
Form 8-K filed on July 18, 2007.

The Third Amendment amended the Credit Agreement in order to
revise the definition of "Consolidated EBITDA" solely for
purposes of calculating compliance with the financial covenants
set forth in Section 6.2.2 of the Credit Agreement.

In addition, the Administrative Agent and Lenders also waived
any event of default under the credit facility occurring due to
a change of control of Andrew resulting from any agreement
entered into between Andrew and CommScope in furtherance of the
CommScope Merger Transaction until the earlier to occur of the
date of the consummation of the CommScope Merger Transaction and
March 31, 2008.

                     About Andrew Corp.

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers and essential equipment and solutions
for the global communications infrastructure market.  The
company serves operators and original equipment manufacturers
from facilities in 35 countries including China, India, Italy,
Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda
and Brazil.

                       *     *     *

The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services revised its CreditWatch
implications on Andrew Corp. to positive from negative.  The
'BB' corporate credit and 'B+' subordinated debt ratings were
placed on CreditWatch with negative implications on
Aug. 10, 2006.


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


EASTMAN KODAK: Earns US$592 Mln in Quarter Ended June 30, 2007
--------------------------------------------------------------
Eastman Kodak Company reported on Thursday its financial results
for the second quarter ended June 30, 2007.

Eastman Kodak reported net income of US$592 million for the
quarter ended June 30, 2007, compared with a net loss of US$282
million for the same period last year.

Results for the quarters ended June 30, 2007, and 2006, included
total company earnings from the discontinued operations of the
company's Health Group segment to Onex Healthcare Holdings Inc.
on April 30, 2007, of US$727 million (including a pre-tax gain
on sale of US$980 million) and US$73 million, respectively.

The company reported a US$121 million year-over-year improvement
in pre-tax results from continuing operations, reflecting gross
profit margin improvements across all of its major business
units.  The company achieved a US$97 million improvement in
digital earnings and a US$31 million improvement in traditional
earnings, as expenses declined.  In addition, the company
reported a US$135 million after-tax loss from continuing
operations, an improvement of US$220 million, as compared to the
prior year.

Kodak also reaffirmed its plan to achieve its full-year
financial goals for net cash generation, digital revenue growth
and digital earnings.

"Our second-quarter results reinforce our confidence in our
full-year performance," said Antonio M. Perez, chairman and
chief executive officer, Eastman Kodak Company.  "Revenues
during the second quarter were in line with our expectations.
Earnings improved across all of our major business units,
reflecting our strong focus on cost reduction and operational
efficiencies.  We continue to expect a strong second half, with
double-digit sales growth in both of our major digital
businesses, driven by a stronger-than-ever portfolio of digital
products, including our revolutionary consumer inkjet printing
system, new image sensors, workflow software, and an expanded
line of NEXPRESS digital color printing presses.  I'm pleased
with our first-half results, and I remain confident in our
ability to achieve our 2007 key strategic objectives."

On the basis of generally accepted accounting principles in the
U.S. (GAAP), the company reported a second-quarter loss from
continuing operations of US$173 million pre-tax, US$135 million
after tax, compared with a loss of US$294 million pre-tax,
US$355 million after tax in the year-ago period.  Items of
expense impacting comparability in the second quarter of 2007
totaled US$266 million after tax.  The most significant item was
restructuring costs of US$316 million before tax and US$248
million after tax.  In the second quarter of 2006, items that
impacted comparability totaled
US$206 million after tax primarily reflecting restructuring
costs.

For the second quarter of 2007:

  -- Sales totaled US$2.510 billion, a decrease of 7% from
     US$2.688 billion in the second quarter of 2006.  Digital
     revenue totaled US$1.460 billion, a 3% increase from
     US$1.417 billion.  Traditional revenue totaled US$1.044
     billion, a 17% decline from US$1.262 billion in the year-
     ago quarter.

  -- The company's second-quarter loss from continuing
     operations, before interest, other income (charges), net,
     and income taxes was US$163 million, compared with a loss
     of US$257 million in the year-ago quarter.

Other financial details:

  -- Gross Profit margin was 26.2% for the quarter, up from
     21.4%in the prior year, primarily attributable to lower
     costs, driven by manufacturing footprint reductions and the
     favorable impact of foreign exchange, offset by adverse
     silver and aluminum costs.

  -- Selling, General and Administrative expenses decreased
     US$87 million from the year-ago quarter, reflecting the
     company's cost reduction activities.  SG&A as a percentage
     of revenue was 17%, down from 19% in the year-ago quarter.

  -- Net Cash Generation for the second quarter was negative
     US$251 million, compared with negative US$74 million in the
     year-ago quarter.  Net Cash Generation for the first half
     of 2007 was negative US$704 million, compared with negative
     US$691 million in the year-ago period.  This corresponds to
     net cash used in operating activities from continuing
     operations of US$298 million for the second quarter,
     compared with US$17 million in the year-ago quarter, driven
     primarily by changes in working capital.  For the first
     half of 2007, net cash used in operating activities from
     continuing operations was US$695 million, compared with
     US$554 million in the year-ago period.

  -- On April 30, 2007, the company completed the sale of its
     Health Group to an affiliate of Onex Corporation for
     US$2.350 billion.  As previously announced, the company
     used a portion of the cash proceeds from that transaction
     to fully repay US$1.145 billion of outstanding secured term
     debt.  As of June 30, 2007, the company's debt level was
     US$1.624 billion, a US$1.154 billion reduction from the
     2006 year-end debt level of US$2.778 billion.

  -- Kodak held US$1.925 billion in cash and cash equivalents as
     of June 30, 2007.

                     2007 Outlook Reaffirmed

Kodak remains focused on three financial metrics as it continues
to transform its business: net cash generation, digital earnings
from operations and digital revenue growth.

The company's goal for net cash generation this year is in
excess of US$100 million after restructuring disbursements of
approximately US$600 million.  This outlook corresponds to
expected net cash provided by continuing operations from
operating activities, on a GAAP basis, in the range of US$200
million to US$450 million.

Additionally, the company's goal for 2007 full-year digital
earnings from operations is US$150 million to US$250 million,
which corresponds to a GAAP loss from continuing operations
before interest, other income (charges), net, and income taxes
for the full year of US$550 million to US$650 million.

Finally, the company continues to forecast 2007 digital revenue
growth of 3% to 5%, with total 2007 revenue expected to be down
between 4% and 7%.

At June 30, 2007, the company's consolidated balance sheet
showed US$13.074 billion in total assets, US$10.582 billion in
total liabilities, and US$2.492 billion in total stockholders'
equity.

Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK) -- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.

The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.

                           *     *     *

As reported in the Troubled Company Reporter on May 18, 2007,
Fitch Ratings upgraded Eastman Kodak Company's senior
unsecured debt to 'B/RR4' from 'B-/RR5' due to improved recovery
prospects following the company's redemption on May 3, 2007, of
a
US$1.15 billion secured term loan funded with a portion of the
proceeds from the sale of its Health Group to Onex Healthcare
Holdings, Inc., for US$2.35 billion on April 30, 2007.

In addition, Fitch has affirmed these Kodak ratings:

     -- Issuer Default Rating 'B';
     -- Secured credit facility 'BB/RR1'.


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


ALCATEL-LUCENT: Costa Rica Sues Former President on Corruption
--------------------------------------------------------------
Costa Rican prosecutors have filed corruption charges against
the country's former President Miguel Angel Rodriguez, almost
three years after he resigned as head of the Organization of
American States to face allegations on being bribed by French
telecom Alcatel, which has now become Alcatel-Lucent, the
Associated Press reports.

The AP notes that Alcatel merged with Lucent in 2006 to create
Alcatel-Lucent SA.

Mr. Rodriguez was Costa Rica's president from 1998 to 2002.  He
became the head of OAS after leaving the office.  After less
than a month, he resigned from his post in the organization in
2004.

Judicial spokesperson Fabian Barrantes confirmed to the AP that
charges were filed.  Mr. Barrantes commented, "The only thing I
can say is that investigators have placed the case in the hands
of civil prosecutors."

News daily La Nacion relates that Mr. Rodriguez is accused of
accepting US$230,000 from Alcatel's Latin American branch in
exchange for granting it a US$149 million cell-phone contract in
2001. Jose Antonio Lobo, former director of Costa Rica's
Electricity Institute, alleged that Mr. Rodriguez also received
US$590,000 from the company.

Eduardo Araya, Mr. Rodriguez's legal representative, told the AP
that his client hadn't been notified of the charges.

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

                       *     *     *

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

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

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


BOSTON SCIENTIFIC: Fitch Lowers Senior Notes Rating to BB+
----------------------------------------------------------
Fitch Ratings has downgraded the ratings on Boston Scientific
Corp:

  -- Issuer Default Rating (IDR) to 'BB+' from 'BBB-';
  -- Senior unsecured notes to 'BB+' from 'BBB-';
  -- Unsecured bank credit facility to 'BB+' from 'BBB-'.

Fitch has also withdrawn BSX's Commercial Paper rating of 'F2'.
This rating action affects approximately US$8 billion of debt.
The Rating Outlook is Negative.

The rating downgrade reflects the company's decision not to
carve out a portion of its Endosurgery business.  Fitch's prior
rating for BSX was highly dependent on the timely paydown of
debt with cash proceeds from the potential divestiture.  More
pressure has now been placed on BSX's operations, which are
currently challenged, to reduce debt and leverage.  The
performance of the company's Drug-Eluting Stent and Cardiac
Rhythm Management businesses has been a key source of operating
weakness, and Fitch believes a turnaround in these businesses
will take time.  EBITDA growth has also been hindered by the
company's decision to operate at a higher cost structure,
reflecting its anticipation for higher growth beyond 2007.
While the company intends to address its cost structure, the
timing of improvement is uncertain.

The Negative Outlook reflects the challenges in BSX's DES and
CRM businesses.  Resolution of the Outlook would likely occur
when BSX generates recurring consolidated growth in revenues and
profitability.  In addition reduction in leverage and debt would
also help to resolve the Negative Outlook.

Free cash flow (net cash flow from operations less capital
expenditures) during the first six months ended June 30, 2007
was negative at approximately US$34 million.  This includes the
approximately US$400 million tax payment in the first quarter
from the divestiture of Guidant's vascular intervention and
endovascular solutions businesses to Abbott Labs.  Interest
coverage (EBITDA/Interest) was 3.5 times and leverage (total
debt/EBITDA) was 4.7 times for the last 12 months, ended
March 31, 2007.  The firm has approximately US$1.9 billion in
cash/short-term investments and US$8.9 billion in debt.  At
March 31, 2006, BSX had full availability on its US$2 billion
revolver, maturing on April 21, 2011.

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties.  The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.


BOSTON SCIENTIFIC: S&P Downgrades Corp. Credit Rating to BB+
------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on Boston Scientific Corp. to 'BB+' from 'BBB-'
and placed the ratings on the company on CreditWatch with
negative implications.

"The downgrade reflects the company's decision to retain full
ownership of its endosurgery group," explained Standard & Poor's
credit analyst Cheryl Richer.

Although Boston Scientific still plans to sell nonstrategic
assets, divest elements of its investment portfolio, and reduce
expenses and headcount, debt reduction will proceed at a slower
pace than previously anticipated.  The rating will remain on
CreditWatch while we review the implications of Boston
Scientific's revised strategy on its business and financial
risk.

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties.  The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.


CHEMTURA CORP: Incurs US$2 Million Net Loss in 2007 Second Qtr.
---------------------------------------------------------------
Chemtura Corporation posted a net loss of US$2 million, or
US$0.01 per share, for the second quarter of 2007 and net
earnings on a non-GAAP basis of US$43 million, or US$0.18 per
share.

The net loss for the quarter includes:

  * a loss from continuing operations of US$30 million, or
    US$0.12 per share;

  * income from discontinued operations of US$3 million, or
    US$0.01 per share; and

  * gain on the sale of a discontinued operations of US$25
    million, or US$0.10 per share.

On a non-GAAP basis, net earnings include income from continuing
operations of US$40 million, or US$0.17 per share and income
from discontinued operations of US$3 million, or US$0.01 per
share.

"Our second quarter results reflect numerous positives: record
earnings for Consumer Products despite a slowdown at the end of
the quarter; outstanding performance for Crop Protection despite
legacy bad debt issues in Latin America related to prior growing
seasons; continued sequential improvement in Polymer Additives;
and excellent performance from our Kaufman Holdings businesses
in the first full quarter since we acquired them at the end of
January," said Robert Wood, Chairman and CEO.

"The impact of the bad debt provision, the transitional impacts
from the carve-out and sale of the EPDM business, and the higher
than normal non-GAAP tax provision rate served to reduce our
non-GAAP earnings in the quarter by more than US$0.02 per
share."

"As we indicated in the first quarter conference call, we
expected to begin to see the benefits of our efforts over the
last three years. This quarter's results are the first evidence
of this impact.  Our focus remains on managing those elements of
our business we can control.  The corporate restructuring
initiatives in the quarter are reducing our cost base and
realigning our organization to improve execution.  We have
started the process of realigning our manufacturing footprint.
Our portfolio reshaping continues with the important step of
divesting the EPDM business completed in June.  These actions
are critical steps towards our goal of becoming a leaner, more
focused enterprise."

"The focus on cost and effectiveness will remain our highest
priority in the coming quarters.  Despite raw material cost
pressures, the third and fourth quarters are expected to provide
us with the first consecutive year-on-year positive comparisons
in many quarters."

                     About Chemtura Corp.

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products.  The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries.  The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and the United Kingdom.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service lowered Chemtura
Corporation's ratings:

  -- Corporate Family Rating: Ba2 from Ba1

  -- Senior notes, USUS$500 million due 2016: Ba2 from Ba1;
     LGD4 (53%)

  -- Senior Unsecured Notes, USUS$150 million due 2026: Ba2
     from Ba1; LGD4 (53%)

  -- Senior Unsecured Notes, USUS$400 million due 2009: Ba2
     from Ba1; LGD4 (53%)


PERNOD RICARD: Posts EUR6.44 Billion Annual Sales for 2007
----------------------------------------------------------
Pernod Ricard S.A. realized sales of EUR6.44 billion for
financial year ended June 30, 2007, compared with EUR6.07
billion group sales for the year ended June 30, 2006.

According to the company the performance comprised a strong 9.1%
organic growth, a -2.8% foreign exchange effect, and a +0.2%
group structure effect.

The group's 15 strategic brands registered organic growth: +9%
in volume and +13% in value, in line with the Group's
premiumization strategy.  All of these 15 strategic brands
progressed and the following eight posted double-digit volume
growth:

   -- Stolichnaya (+18%);
   -- Martell (+17%);
   -- Montana (+17%);
   -- Havana Club (+15%);
   -- The Glenlivet (+15%);
   -- Perrier Jouet (+15%);
   -- Ballantine's (+11%); and
   -- Jameson (+11%).

Over the full financial year, the spirits business and the wine
business increased by +11.0% and +1.3%, respectively.  Spirits
continued to grow strongly in the second half-year with a 9.4%
sales increase while wine stepped up its growth to +4.5%.

Overall, the strong 8.6% second half growth confirmed the 9.7%
performance achieved in first half, which included a favorable
comparison effect related to the reduction in inventory that
followed the Allied Domecq acquisition.

Consolidated sales for the fourth quarter increased by 3.2% to
EUR1.54 billion, a +5.5% organic growth, thereby reflecting
continuing strong growth following a particularly buoyant third
quarter.  The level of selling and advertising expenditure in
the second half-year was high due to the launch of new
advertising campaigns.

In Patrick Ricard's opinion, Chairman and CEO of the Group,
"2006/2007 was a further year of very strong growth for Pernod
Ricard which witnessed progress by all strategic brands.  The
great success of our premium brands and our rapid growth in
emerging countries were the two principal drivers of this
performance and should ensure continued vigorous growth for the
year in progress."

The business environment throughout the second half-year and the
favorable evolution of profit margins enabled a significant
increase in selling and advertising expenditure over the second
half of the financial year and leads to the expectation of
growth in net profit from ordinary activities to be slightly in
excess of initial guidance of 20%, on a constant foreign
exchange basis.

The company will release 2006/2007 full-year results on
Sept. 20, 2007.  The company will then have a combined general
meeting on Nov. 7, 2007.

                       About Pernod Ricard

Headquartered in Paris, France, Pernod Ricard --
http://www.pernod-ricard.com/-- produces and distributes
spirits and wines.  The Company operates in Europe, North
America, Central and South America, and the Asia-Pacific region.

                          *     *     *

As reported in the TCR-Europe on Nov. 21, 2006, Standard &
Poor's Ratings Services raised its long-term corporate credit
and senior unsecured debt ratings on French spirits manufacturer
and marketer Pernod Ricard S.A. to 'BB+' from 'BB' following
quicker-than-expected integration of acquired businesses and
improved profitability prospects.

At the same time, the 'B' short-term corporate credit rating was
affirmed.  S&P said the outlook is stable.


SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27
--------------------------------------------------------------
Solectron Corporation has set, on Sept. 27, 2007, a special
meeting of stockholders, to consider and vote upon the proposed
merger with Flextronics International Ltd.

The meeting will be held at Solectron's principal executive
offices at 847 Gibraltar Drive, Building 5, Milpitas,
California, 95035 and will begin at 8:00 a.m. Pacific time.  The
record date for the meeting is Aug. 6, 2007.  A definitive joint
proxy statement/prospectus relating to the special meeting will
be mailed to stockholders beginning on or about Aug. 13, 2007.

                     About Solectron

Headquartered in Milpitas, California, Solectron Corp.
(NYSE: SLR) -- http://www.solectron.com/-- provides a full
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.

                       *     *     *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured ratings on Milpitas, California-based
Solectron Corp. to 'BB-' from 'B+', and its subordinated debt
rating to 'B' from 'B-'.  S&P said the outlook is stable.

On May 9, 2007, Fitch Ratings affirmed Solectron Corporation's
ratings as:

   -- Issuer Default Rating at 'BB-';
   -- Senior secured bank facility at 'BB+';
   -- Senior unsecured debt at 'BB-'; and
   -- Subordinated debt at 'B+'.


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


CANARGO ENERGY: Divests Entire 17.7% Stake in Tethys Petroleum
--------------------------------------------------------------
CanArgo Energy Corporation sold its entire shareholding of
8,000,000 shares in Tethys Petroleum Limited.  The shares of
Tethys Petroleum were sold in brokered transactions beginning
July 31, 2007.  The shares represent 17.7% of the shares of
Tethys Petroleum outstanding shares.

The shares will be offered for sale at prices not less than
CDN$2.95.  The gross proceeds of the sale, before commission and
expenses, amounts to CDN$23.6 million.  The settlement date is
Aug. 3, 2007.

Net proceeds received from the sale of these shares will be used
by CanArgo to repay a portion of its existing debt under its
outstanding senior secured notes due July 25, 2009, and to the
extent of any excess net proceeds, its outstanding senior
subordinated convertible guaranteed notes due Sept. 1, 2009.

Jennings Capital Inc. act as the sole placing agent or sole
participating organization for the sale.

                      About Tethys Petroleum

Tethys Petroleum Limited (TSX: TPL) -
http://www.tethyspetroleum.com/-- is focused on oil and gas
exploration and production activities in Central Asia with
activities currently in the Republic of Kazakhstan and more
recently the Republic of Tajikistan.

                       About CanArgo Energy

CanArgo Energy Corp. -- http://www.canargo.com/-- (AMEX: CNR)
(OSLO: CNR) is an oil and gas exploration and production company
operating in the oil and gas provinces of the former Soviet
Union.  CanArgo is currently focused primarily on Georgia in the
Caucasus, and more recently has become involved in the major
hydrocarbon producing country of Kazakhstan.  In Georgia, the
company has been actively exploring for new deposits of oil and
gas, and is currently appraising what could be a substantial new
discovery of oil.

                       Going Concern Doubt

As reported in the Troubled Company Reporter on March 26, 2007,
LJ Soldinger Associates LLC raised substantial doubt about the
ability of CanArgo Energy Corp. to continue as a going concern
after auditing the company's financial statements for the years
ended Dec. 31, 2006, and 2005.   The auditing firm stated that
the company may not have sufficient funds to execute its
business plan.


METROMEDIA INT'L: Rejects Takeover Offer from Fursa Alternative
---------------------------------------------------------------
Metromedia International Group Inc.'s board of directors
determined that Fursa Alternative Strategies LLC's proposal
cannot, at this time, be reasonably expected to lead to a
superior proposal.

As reported in the TCR-Europe on Aug. 6, 2007, Metromedia
received an unsolicited letter from Fursa to acquire all issued
and outstanding shares of Metromedia common stock, other than
the shares already owned by Fursa, at a purchase price of
US$2.05 per share in cash.

                        About Metromedia

Based in Charlotte, North Carolina, Metromedia International
Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock)
-- http://www.metromedia-group.com/-- through its subsidiary,
Metromedia International Telecommunications, owns interests in
telecom and cable TV operations in Russia, Georgia, and
elsewhere in Eastern Europe.

The Company's core businesses includes Magticom, Ltd., the
leading mobile telephony operator in Tbilisi, Georgia, and
Telecom Georgia, a well-positioned Georgian long distance
telephone operator.

                            *   *   *

In October 2006, Metromedia said it is filing a Chapter 11 Plan
in the U.S. after receiving a binding offer to acquire all of
the Company's business interests in Georgia for a cash price of
US$480 million from an investment group comprised of:

   -- Istithmar, an alternative investment house based in Dubai,
      United Arab Emirates;

   -- Salford Georgia, the Georgian office of Salford Capital
      Partners Inc., a private equity and investment management
      company which manages investments in the CIS and Central &
      Eastern Europe; and

   -- Emergent Telecom Ventures, a communications merchant bank
      focused on pursuing telecommunications opportunities in
      the Emerging Markets.

Upon the approval of the plan, all of the preferred and common
equity interests in the Company will be converted into the right
to receive the cash remaining after payment of all allowed
claims and the costs and expenses associated with the sale and
the Wind-Up.

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


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


AL-BAN IMMOBILIENFONDS: Creditors' Meeting Slated for Sept. 19
--------------------------------------------------------------
The court-appointed insolvency manager for Al-Ban
Immobilienfonds-Verwaltungsgesellschaft mbH & Co. Sonnengarten
Glienicke Eichenallee 6 und 8 KG, Christian Koehler-Ma will
present his first report on the Company's insolvency proceedings
at a creditors' meeting at 11:35 a.m. on Sept. 19.

The meeting of creditors and other interested parties will be
held at:

         The District Court of Charlottenburg
         Hall 218
         Second Floor
         Amtsgerichtsplatz 1
         14057 Berlin
         Germany

The Court will also verify the claims set out in the insolvency
manager's report at 11:30 a.m. on Jan. 9, 2008, at the same
venue.

Creditors have until Nov. 2 to register their claims with the
court-appointed insolvency manager.

The insolvency manager can be reached at:

         Christian Koehler-Ma
         Kurfuerstendamm 26 a
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy
proceedings against Al-Ban Immobilienfonds-
Verwaltungsgesellschaft mbH & Co. Sonnengarten Glienicke
Eichenallee 6 und 8 KG on July 30.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Al-Ban Immobilienfonds-Verwaltungsgesellschaft mbH &
         Co. Sonnengarten Glienicke Eichenallee 6 und 8 KG
         Berliner Strasse 27
         13597 Berlin
         Germany


ARGUS GASTSTATTENBETREIBER: Claims Registration Ends Sept. 18
-------------------------------------------------------------
Creditors of ARGUS Gaststattenbetreibergesellschaft mbH have
until Sept. 18 to register their claims with court-appointed
insolvency manager Tatjana Gotsch.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 30, at which time the
insolvency manager will present her first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Hall 24
         Fuerstenstrasse 21-23
         09130 Chemnitz
         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:

         Tatjana Gotsch
         Buettenstr. 4
         08058 Zwickau
         Germany
         Tel: (0375) 818920
         Fax: (0375) 8189214
         E-mail: gotsch@zwickau-net.de

The District Court of Chemnitz opened bankruptcy proceedings
against ARGUS Gaststattenbetreibergesellschaft mbH on Aug. 2.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         ARGUS Gaststattenbetreibergesellschaft mbH
         Attn: Birgit Berthold, Manager
         Annaberger Str. 80
         08352 Markersbach
         Germany


ASAT HOLDINGS: Interest Payment Delay Cues S&P's Junk Rating
------------------------------------------------------------
On Aug. 3, 2007, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on ASAT Holdings Ltd. to 'D'
from 'CCC'.  At the same time, it lowered the issue rating on
US$150 million 9.25% senior notes due 2011 to 'D' from 'CCC'.

The notes were issued by New Asat (Finance) Ltd. and guaranteed
by ASAT.

The downgrades are based on ASAT's announcement on Aug. 1, 2007
that it did not make the semi-annual interest payment on its
9.25% senior notes.

"Given its extremely tight liquidity, we believe there is a low
likelihood that ASAT will make the interest payment within the
30-day grace period that starts from the Aug. 1, 2007 due date,"
said Standard & Poor's credit analyst Michael Petit.

Standard & Poor's has very limited access to the company's
management and financial information.  The rating is based on
publicly available information.

Although ASAT has indicated that it has available funds to make
the interest payment, doing so would make it difficult to
support its ongoing business requirements over the near term.

ASAT has asked the bond holders to amend or waive certain
conditions that constitute defaults and events of defaults that
may have occurred or may occur.

Based on the company's fiscal 2007 results, announced on Aug. 1,
2007, ASAT had a shareholders' deficit of US$88.3 million at the
end of April 2007.

The company had about US$7.3 million in unrestricted cash,
inadequate to cover its semi-annual interest due Aug. 1, 2007 of
US$6.9 million for the bond and short-term debt due within one
year of US$3.8 million.

Standard & Poor's assigns a 'D' rating when payments on an
obligation are not made on the date due even if the applicable
grace period has not expired, unless Standard & Poor's believes
that such payments will be made during such grace period.

ASAT is a small operator in the highly fragmented and
competitive semiconductor sector.

ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/--
is a global provider of semiconductor package design, assembly
and test services.  With more than 17 years of experience, the
Company offers a definitive selection of semiconductor packages
and world-class manufacturing lines.

ASAT's advanced package portfolio includes standard and high
thermal performance ball grid arrays, leadless plastic chip
carriers, thin array plastic packages, system-in-package and
flip chip.  ASAT was the first company to develop moisture
sensitive level one capability on standard leaded products.  The
Company has operations in the United States, Asia and Europe
including Hong Kong, China, and Germany.


ASAT HOLDINGS: Moody's Downgrades Corporate Family Rating to Ca
---------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of ASAT Holdings Ltd to Ca from Caa1.

At the same time, Moody's also downgraded to Ca from Caa1 the
senior unsecured rating for New ASAT (Finance) Limited's US$150
million in senior notes, maturing in 2011, which are guaranteed
by ASAT. The outlook for both ratings is negative.

"The rating action follows ASAT's failure to make the semi-
annual interest payment on its 9.25% senior notes," say Wonnie
Chu, lead analyst for ASAT, adding, "The Ca rating reflects the
low expected recovery rate for debt holders."

Although ASAT has a 30-day grace period to service the interest
payment, and is in the process of obtaining approval from its
bond holders to relax financial covenants, the company's ability
to service its debt obligations in the near-to-medium term is
questionable, given its extremely tight balance sheet liquidity
and continued loss-making status.

ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/--
is a global provider of semiconductor package design, assembly
and test services.  With more than 17 years of experience, the
Company offers a definitive selection of semiconductor packages
and world-class manufacturing lines.

ASAT's advanced package portfolio includes standard and high
thermal performance ball grid arrays, leadless plastic chip
carriers, thin array plastic packages, system-in-package and
flip chip.  ASAT was the first company to develop moisture
sensitive level one capability on standard leaded products.  The
Company has operations in the United States, Asia and Europe
including Hong Kong, China, and Germany.


DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus
----------------------------------------------------
DaimlerChrysler has completed the closing for the transfer of a
majority interest in Chrysler Group and for the related
financial services business in NAFTA to a subsidiary of Cerberus
Capital Management, L.P., a private-equity company based in New
York.  A subsidiary of Cerberus takes over 80.1% in the Chrysler
Holding LLC, while DaimlerChrysler retains a 19.9% interest, as
announced in May 2007.

The effects on the financial statements of DaimlerChrysler will
be explained on August 29, 2007.

Basically, the conditions of the transaction and the economic
effects have not changed since the agreement was signed on
May 14, 2007.  Furthermore, DaimlerChrysler and Cerberus have
agreed to support the financing of the majority takeover of
Chrysler by Cerberus in light of highly volatile US loan
markets.  Both companies will subscribe US$2 billion of second
lien debt for Chrysler's automotive business, to be drawn within
12 months.  DaimlerChrysler's portion will be US$1.5 billion.
The debt will be priced at market conditions.  One year after
the closing, DaimlerChrysler has the right to sell this loan in
the credit market.  The maturity of this loan is seven years.

DaimlerChrysler's financing support is a strong sign of its
overall determination to make sure that, under the majority of
Cerberus, Chrysler has a good start as a successful stand-alone
car company.

As of today, the Board of Management of DaimlerChrysler AG is
reduced to six members.  Tom LaSorda, Eric Ridenour and Tom
Sidlik are no longer members.  Within the Board of Management,
Bodo Uebber additionally assumes responsibility for procurement.

Due to the new corporate structure, DaimlerChrysler AG is to be
renamed as Daimler AG.  The shareholders are to decide on this
change at an Extraordinary Shareholders' Meeting in Berlin on
October 4, 2007.

Dr. Dieter Zetsche, Chairman of the Board of Management of
DaimlerChrysler AG and Head of the Mercedes Car Group: "Today
marks a new chapter in the history of our company.  Based on the
clearly defined strategies in our Mercedes Car Group, Truck
Group, Financial Services business divisions and for vans and
buses, and our company's healthy balance sheet, we have every
reason to move confidently into the future."

                      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's July Sales Outside N. America Up 24%
----------------------------------------------------------------
In July 2007, Chrysler Group sales outside North America grew by
24 percent (20,944 units), the best July in 10 years.  Much of
the additional sales volume was fueled by increases in fast-
growing regions such as Latin America, where sales were up 48
percent.  The significant July sales contributed to the
Company's year-to-date sales growth, currently 18 percent
(135,257 units), and marked an unprecedented 26 consecutive
months of year-over-year sales increases.

"With 26 consecutive months of sales growth, it is clear that
our international strategy is a success," Michael Manley,
executive vice president of international sales, marketing and
business development, said.  "We now we have three global
brands, a product portfolio that stands out from the crowd, and
a business model that provides our dealers with one of the
highest return on sales in the industry.  We have also improved
our product quality and the overall customer satisfaction rate
to ensure that our global buyers continue to come back for
more."

For the month, all three of Chrysler Group's brands saw
increased demand compared with last year.  Chrysler brand sales
were up eight percent (7,480 units), led by Chrysler 300C sales.
Jeep brand sales jumped 27 percent (8,461 units), supported by
new vehicle availability such as Jeep Wrangler/Wrangler
Unlimited and Compass.  Dodge brand sales continued to grow as
the Dodge Avenger and Nitro made their way into dealerships,
contributing to a 54 percent increase (5,003 units).  Dodge
Caliber continued to lead the Chrysler Group lineup as the top-
selling vehicle year-to-date in 2007, with 18,616 units sold.

"Venezuela is a successful example of our localization strategy
in South America," said Thomas Hausch, vice president of
international sales.  "With more than 2000 units sold, Venezuela
was amongst the highest volume markets in the month of July,
mainly due to the popularity of the locally produced Dodge
Caliber, Jeep Cherokee and Jeep Grand Cherokee."

                     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.


LAZARD LTD: Paying US$0.09 Per Share Qtrly Dividend on Aug. 31
--------------------------------------------------------------
Lazard Ltd.'s Board of Directors has declared a quarterly
dividend of US$0.09 per share on its outstanding Class A common
stock, payable on Aug. 31, 2007, to stockholders of record on
Aug. 10, 2007.

Lazard Ltd. -- http://www.lazard.com/-- one of the world's
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and South America.  With origins dating
back to 1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.  The company has locations in Australia, China,
France, Germany, India, Japan, Korea and Singapore.

The company reported total assets of US$2.6 billion, total
liabilities of US$2.8 billion, and minority interest at US$55.7
million, resulting in a total stockholders' deficit of US$206.8
million as of March 31, 2007.


PRIME 2006-1: Fitch Rates EUR13 Million Class E Notes at BB
-----------------------------------------------------------
Fitch Ratings has assigned final ratings to PRIME 2006-1 Funding
Limited Partnership issue of EUR181.5 million of collateralized
loan obligation floating- and fixed-rate notes:

   -- EUR119.6 million Class A (ISIN:XS0278567994): 'AAA'
   -- EUR15 million Class B (ISIN:XS0278569776): 'AA'
   -- EUR20 million Class C (ISIN:XS0278570519): 'A'
   -- EUR13.9 million Class D (ISIN:XS0278571756): 'BBB'
   -- EUR13 million Class E (ISIN:XS0278572135): 'BB'

The Class F notes, totaling EUR5 million are not rated.

The final ratings of the Class A notes address the timely
payment of interest and the ultimate repayment of principal.
The final ratings of the Class B to Class E notes address the
ultimate payment of interest and principal according to the
terms of the notes.

The final ratings are based on the quality of the collateral,
the available credit enhancement, the priority of payments
(which incorporate an excess cash trapping mechanism), and the
sound legal and financial structure of the transaction.  Credit
enhancement for the Class A to E notes is provided by
subordination and available excess spread.

This transaction is a cash securitization of two different types
of profit participation agreements to German small and medium-
sized enterprises.  The issuer is incorporated as a special-
purpose vehicle in Jersey and has issued EUR186.5 million of
notes (Class A to F).

Together with the proceeds from the limited partner loan of
EUR9.99 million and the limited partners' capital contribution
of EUR0.01 million, the note proceeds have been used to enter
into a portfolio of SME participation agreements, which remains
static after closing.

The portfolio companies were selected by the originating banks:
HSH Nordbank AG (rated 'A'/'F1'/Outlook Stable), Landesbank
Baden-Wurttemberg (rated 'A+'/'F1+'/Outlook Stable) and Haspa
Beteilungsgesellschaft fur den Mittelstand mbH.  The scheduled
maturity of all Classes of notes is August 2013, and the legal
maturity is August 2015.

The portfolio quality was assessed by a mapping approach.  Based
on the mapping, the weighted average portfolio quality is deemed
to be equal to a Fitch rating of 'BBB-'/'BB+'.  Repayment of the
notes is contingent on the cash flows generated by the SME loan
portfolio and the priority of payments, as determined in the
transaction documents.

Compared with other German mezzanine CLOs rated by Fitch, this
transaction shows the lowest number of assets (29) and the
largest single obligor concentrations.  Each of the six largest
assets accounts for 7.6% of the portfolio amount.  Fitch has
therefore applied a combination of its standard CDO methodology
and a concentration approach to capture the risks resulting from
the lumpiness of the portfolio.


PROSIEBENSAT.1 MEDIA: Fitch Affirms and Withdraws BB- Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed Germany-based broadcaster
ProSiebenSat.1 Media AG's ratings at Long-term Issuer Default
'BB-' with a Stable Outlook and senior unsecured 'BB-' and
simultaneously withdrawn them.

Fitch will no longer provide ratings or analytical coverage on
the company.


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


WIND HELLAS: Tellas Sale Cues Fitch to Monitor Ownership
--------------------------------------------------------
Fitch Ratings will continue to monitor developments in the
ownership of Greek fixed-line operator Tellas SA, in particular
for any impact on the credit profile of Greek mobile operator
WIND Hellas Telecommunications S.A. (rated 'B'/Stable).

It was recently reported that Naguib Sawiris, majority
shareholder of Weather Investments SpA and indirect ultimate
shareholder of WIND Hellas, has agreed to purchase the 50% of
Tellas owned by Public Power Corporation SA, a Greek state-
controlled utility company, for EUR175 million.  The remaining
50% (plus one share) of Tellas is currently owned by Italy's
Wind Telecomunicazioni SpA (rated 'BB-'/Watch Negative), also
ultimately owned by Weather Investments.

Fitch considers it likely that Tellas will at some point become
part of the WIND Hellas group.  However, no rating action is
expected to be taken until an announcement is made regarding any
acquisition by WIND Hellas: current reports state the
acquisition is to be made by Mr Sawiris, and not by WIND Hellas
at this stage.

In Fitch's view, a combination of, or cooperation between, WIND
Hellas's mobile operations and Tellas's fixed-line operations
may be positive in terms of a defensive strategy, but there is
limited evidence to support a significant increase in
subscribers as a result of cross-selling opportunities between a
mobile subscriber base and a fixed-line business.

Nevertheless, Greek broadband penetration is still low by
western European standards so there is opportunity for
alternative providers, and the experience of WIND Hellas's
Italian sister company Wind Telecomunicazioni may prove useful
in developing a dual-play business further and extracting any
synergies that may be available.

In general however, Fitch would expect a fixed-line business to
contribute lower margins than a mobile business, and a
combination would therefore be margin-dilutive even if revenue
and EBITDA-accretive.  In Fitch's view, the future success and
further growth of Tellas's fixed-line business in Greece will
depend on the depth of its fixed network, wholesale line rental
and local loop unbundling rates, and the ability to access the
incumbent OTE's exchanges.

Under the terms of WIND Hellas's senior secured notes, the group
may incur acquisition debt up to 6.5x pro forma consolidated
group leverage or 3.75x pro forma consolidated WIND Hellas
leverage.  During the first quarter of 2007 the group reported
trailing 12 months adjusted (for one-off costs and Vodafone
roaming) pro forma EBITDA of EUR414 million, and net cash-pay
group leverage on this basis was 6.4x.

WIND Hellas is the third-largest mobile operator in Greece and
also owns the number-four operator Q-Telecom, with a combined
4.2 million customers at first quarter of 2007.  The group
reported revenues of EUR1.151 billion and unadjusted EBITDA of
EUR361 million for the 12 months to March 2007.  Results for
second quarter of 2007 are due within the next two weeks.
Tellas is a Greek fixed-line operator with over 800,000
connections at end of 2006.

Current ratings on WIND Hellas:

   -- WIND Hellas Telecommunications S.A. Long-term Issuer
      Default Rating: 'B'; Outlook Stable;

   -- WIND Hellas Telecommunications S.A. Short-term Issuer
      Default Rating: 'B';

   -- Hellas Telecommunications (Luxembourg) V senior revolving
      credit facility: 'B+'/'RR3';

   -- Hellas Telecommunications (Luxembourg) V senior secured
      floating rate notes due 2012: 'B+' /'RR3';

   -- Hellas Telecommunications (Luxembourg) III senior notes
      due 2013: 'B+'/'RR3'; and

   -- Hellas Telecommunications (Luxembourg) II subordinated
      floating-rate notes due 2015: 'CCC+'/'RR6'.


=============
H U N G A R Y
=============


HUTSCHENTEUTHER HUNGARIA: Sells Assets in Liquidation
-----------------------------------------------------
The assets of Hutschenteuther Hungaria were sold in liquidation
to a Hungarian investor for an undisclosed amount, The Financial
Times reports, citing Hungarian News Agency (MTI) as its source.

In an interview with MTI, bailiff Pal David declined to name the
buyer or the amount it paid for Hutschenteuther.

According to FT, business daily Napi Gazdasag reported that the
buyer was Royal Martin.  The newspaper also disclosed that the
new owner will continue the plant's operations as a porcelain
maker.

MTI was informed that Hutschenteuther's price was below the
HUF116 million asking price.

Headquartered in Hungary, Hutschenteuther Hungaria makes
porcelain.  It was set up on 1996 by German company Winterling
Porzellan, which held a 90% stake on the company, and Hungary's
Hollohaz Porcelain Factory, which held 10%.  Hutschenteuther was
declared bankrupt in 2000.


VALEANT PHARMACEUTICALS: Earns US$16.8 Million in Second Quarter
----------------------------------------------------------------
Valeant Pharmaceuticals International reported revenues totaling
US$231 million for the three months ended June 30, 2007,
compared to US$230.4 million for the three months ended June 30,
2006.  Product sales for the second quarter 2007 increased 2% to
US$212.1 million, compared to US$208.8 million for the second
quarter 2006.  Second quarter 2007 net income was US$16.8
million, compared to a loss of US$42.3 million for the second
quarter 2006.

As of June 30, 2007, the company posted total cash and
marketable securities of US$386.7 million, as compared with
total cash and marketable securities of US$335.7 million at Dec.
31, 2006.  The company had Long-term debt of US$776.5 million at
the end of the second quarter 2007.

For the six months ended June 30, 2007, the company reported
revenues totaling US$444.4 million, as compared with total
revenues of US$429.9 million for the six months ended June 30,
2006.  The company had net income of US$25 million for the first
half of 2007, as compared with net loss of US$48.5 million for
the first half of 2006.

Timothy C. Tyson, president and chief executive officer, said,
"We are encouraged that product sales improved in the second
quarter, led by growth in many promoted products in North
America and EMEA.  Although it still had a negative impact on
the quarter as a whole, we resolved the wholesaler distribution
issue in Mexico toward the end of the quarter and sales in that
market are returning to normal.  We continue to believe that we
will achieve our goal of industry-average growth for the full
year.  We remained disciplined in our spending, controlling
overhead costs while investing in promoted products and
advancing our development pipeline."

                    Regional Sales Performance

North America product sales increased 8% in the 2007 second
quarter, primarily due to increased sales of Efudex, Cesamet and
Migranal(R).

Sales in the International region decreased 12% in the 2007
second quarter, essentially due to the issues in the Mexican
distribution chain that began earlier in the year.

Sales in the Europe, Middle East and Africa region increased 7%
in the 2007 second quarter, primarily due to the effects of
foreign currency.

                     Share Repurchase Update

On June 11, 2007, the company announced that its board of
directors had approved a share repurchase program that
authorized the company to repurchase up to US$200 million of its
outstanding common stock over a two-year period. In connection
with this program, the company has repurchased 3.7 million
shares of its common stock through July 31, 2007, at an
aggregate amount of US$63 million.  Of the cumulative total, 1.6
million shares were repurchased in the 2007 second quarter at an
aggregate amount of US$28 million.

                       Restructuring Update

The company completed the sale of its manufacturing facilities
in Switzerland and Puerto Rico in June 2007, which concludes the
restructuring plan announced in April 2006.  Restructuring
charges in the 2007 second quarter totaled US$6.3 million,
bringing the overall total restructuring charges to US$152
million, of which US$34 million is cash related. The
restructuring will result in cost savings of more than US$50
million annually.

                  About Valeant Pharmaceuticals

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com/-- is a global
specialty pharmaceutical company with USUS$823 million of 2005
revenues.  It has offices in Argentina, Hungary, Poland,
Singapore, Taiwan, and the United Kingdom.

                          *     *     *

In January 2007, Moody's Investors Service confirmed the ratings
of Valeant, including the B2 Corporate Family Rating, and
concluded the rating review for possible downgrade, which was
first initiated on Oct. 23, 2006.  Valeant's rating outlook is
stable.


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


ADVANCED MEDICAL: Posts US$166 Mln Net Loss in Second Quarter
-------------------------------------------------------------
Advanced Medical Optics Inc. reported financial results for the
second quarter of 2007.

AMO reported a second-quarter net loss under Generally Accepted
Accounting Principles of US$166.8 million, which included the
impact of the recall.

These results also included:

   * US$85.4 million pre-tax, non-cash in-process research and
     development charge and a US$7.7 million pre-tax, non-cash
     inventory step-up to fair value charge related to the
     IntraLase acquisition.

   * approximately US$14.5 million in pre-tax transaction-
     related charges.

   * US$1.2 million in a pre-tax, non-cash deferred financing
     cost write-off related to the IntraLase acquisition
     financing and a gain on derivative instruments.

   * US$9.8 million unfavorable tax impact associated primarily
     with acquisition-related items.

In the same period last year, AMO reported a GAAP net loss of
US$2.7 million.

The company's second-quarter 2007 net sales rose 1.7% to
US$261.4 million.  The sales increases related to the April 2007
acquisition of IntraLase Corp. and organic growth were offset by
lost sales and product returns related to the May 2007
MoisturePlus recall.  Foreign currency impacts increased net
sales by 1.7%.

"In the second quarter, we moved aggressively to integrate
IntraLase," Jim Mazzo, AMO chairman, president and chief
executive officer, said.  "Our Advanced CustomVue(R) technology
and IntraLase(R) FS laser drove laser vision correction sales to
new highs, demonstrating the strategic value of this
combination.  In addition, our portfolio of refractive implants
delivered double-digit growth on a sequential and year-over-year
basis and helped fuel an 8 percent rise in intraocular lens
sales.  Furthermore, our eye care business moved quickly and
responsibly to execute a global recall, and developed a
comprehensive plan to re-enter the multipurpose contact lens
care market ahead of schedule."

AMO estimated that the recall reduced eye care sales by
approximately US$54 million, including approximately US$31
million in returns and an estimated US$23 million in lost sales.
As a result of the sales returns, the company reported negative
multipurpose sales of US$7.8 million.  The company incurred
recall-related costs of approximately US$27 million, which were
recognized in cost of sales and SG&A expense.

Gross profit decreased 22.3% to US$127.9 million, including a
US$7.7 million non-cash inventory step-up to fair value charge
related to the IntraLase acquisition.  Gross profit was also
impacted by approximately US$50.9 million in returns and costs
and an estimated US$15.9 million related to lost sales
associated with the recall.

R&D expense rose 24.8% to US$20.7 million, or approximately 7.9%
of sales, compared to 6.4 percent in the second quarter of 2006.
The increase was due primarily to the addition of IntraLase and
WaveFront Sciences Inc.

                   Six-Month Financial Results

Net sales for the first six months of 2007 rose 3.6% to US$513.1
million, including a 2.1% increase related to foreign currency
fluctuations.  The rise reflects the addition of the IntraLase
and WaveFront Sciences acquisitions and organic growth, which
were largely offset by estimated recall-related lost sales and
returns.

The company reported a GAAP net loss for the first six months of
2007 of US$154.7 million.  The per-share loss was increased by
US$2.02 due to an US$87 million charge for in-process R&D,
approximately US$22.2 million in transaction-related charges, a
US$1.3 million deferred financing cost write-off, a US$300,000
loss on derivative instruments and a US$9.7 million unfavorable
tax impact associated primarily with acquisition-related items.

                   About Advanced Medical Optics

Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures
and markets ophthalmic surgical and contact lens care products.
The company has operations in Germany, Japan, Ireland, Puerto
Rico, and Brazil.

                         *     *     *

As reported in the Troubled Company Reporter on July 9, 2007,
Moody's Investors Service maintains Advanced Medical Optics,
Inc. ratings on review for possible downgrade following AMO's
announcement of its offer for Bausch & Lomb, Inc. for US$75 per
common share in a combination of US$45 in cash and US$30 in AMO
common stock.

These ratings remain on review for possible downgrade: B1
Corporate Family Rating; B1 Probability of Default Rating; Ba1
(LGD2/14%) rating on US$300 million senior secured revolver due
2013; Ba1 (LGD2/14%) rating on US$450 million senior secured
term loan B due 2014; B1 (LGD4/50%) rating on US$250 million
senior subordinated notes due 2017; and B3 (LGD5/81%) rating on
US$251 million convertible senior subordinated notes due 2024.


W.R. GRACE: Completes Washcoat Biz Sale to Rhodia Silcea
--------------------------------------------------------
W.R. Grace & Co. has completed the sale of its washcoat product
line and Cincinnati, Ohio site assets to Rhodia Silcea.  Grace's
washcoat products are used primarily in the manufacture of
automotive control catalysts, an integral component of catalytic
converters for engines.  The silica production based at the
Cincinnati facility has been transferred to Grace's Curtis Bay,
Maryland site.

"Since the decision to evaluate our washcoat product line, we
are investing in the necessary processes and capital to
establish Good Manufacturing Practices-compliant operations at
Curtis Bay, one of our largest manufacturing facilities," said
Gregory E. Poling, President, Grace Davison.  About 700
employees are based at Curtis Bay, which includes integrated
manufacturing operations across most of Davison's product lines,
as well as a world-class technical center.  "We are building
upon the site's foundation of silica expertise, extensive
functional support, and employee engagement to design a world-
class operation that delivers premier quality products for our
pharmaceutical, dentifrice, and consumer products customers.  We
are committed to meeting the needs of our global customers who
depend on the quality that Grace Davison products are known
for."

                     About W.R. Grace

Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally, including Argentina,
Australia and Ireland.

The Company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
James H.M. Sprayregen, Esq., at Kirkland & Ellis, and Laura
Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub, P.C., represent the Debtors in their restructuring
efforts.  The Debtors hired Blackstone Group, L.P., for
financial advice.  PricewaterhouseCoopers LLP is the Debtors'
accountant.

Stroock & Stroock & Lavan LLP represent the Official Committee
of Unsecured Creditors.  The Creditors Committee tapped Capstone
Corporate Recovery LLC for financial advice.  David T. Austern,
the legal representative of future asbestos personal injury
claimants, is represented by Orrick Herrington & Sutcliffe LLP
and Phillips Goldman & Spence, PA.  Anderson Kill & Olick, P.C.,
represent the Official Committee of Asbestos Personal Injury
Claimants.  The Asbestos Committee of Property Damage Claimants
tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C.
Alan Runyan, Esq., at Speights & Runyan,to represent it.
Lexecon, LLP, provided asbestos claims consulting services to
the Official Committee of Equity Security Holders.

The Debtors' filed their Chapter 11 Plan and Disclosure
Statement on Nov. 13, 2004.  On Jan. 13, 2005, they filed an
Amended Plan and Disclosure Statement.  The hearing to consider
the adequacy of the Debtors' Disclosure Statement began on
Jan. 21, 2005.  The Debtors' exclusive period to file a chapter
11 plan expired on July 23, 2007.

At Dec. 31, 2006, the W.R. Grace's balance sheet showed total
assets of US$3,620,400,000 and total debts of US$4,189,100,000.


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


ALITALIA SPA: Italian Magistrate Probes Alitalia Insider Trading
----------------------------------------------------------------
A magistrate in Rome has commenced a probe into possible insider
trading in Alitalia S.p.A.'s shares, Giselda Vagnoni of Reuters
reports, citing judicial sources.

Alitalia's share price, Reuters reports, have swung sharply
before after a failed bid to sell the Italian government's 39.9%
stake in the carrier.  Lawmakers called for an immediate
investigation on the swings and trading suspension after the
shares lost more than 7% on Aug. 1, erasing sharp gains a week
earlier.

The Rome magistrate has asked for a report on Alitalia's stock
movements from Italian stock market regulator CONSOB.

Meanwhile, Alitalia's new chairman, Maurizio Prato, told the
company's trade unions that the government will try to sell its
stake without imposing conditions outlined in the failed
auction.  He also suggested that any potential buyer may not
have to launch a full bid for the airline, according to Claudio
Genovesi, the secretary-general of the FIT-CISL union, Reuters
notes.

                          About Alitalia

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

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


FIAT SPA: Requests Delisting from New York Stock Exchange
---------------------------------------------------------
Fiat S.p.A. has filed a request to delist its American
Depositary Shares from the New York Stock Exchange effective
Aug. 13, 2007, various reports say.

The company also filed for deregistration from the U.S.
Securities and Exchange Commission, which becomes effective 90
days after the filing, Thomson Financial reports.

Fiat submitted both requests to the SEC on Aug. 3, 2007, after
its U.S. shares suffered from low trading, Reuters relates.
Fiat CEO Sergio Marchionne said it is costly for the company to
remain listed on the SEC.  The company maintains, however, that
the delisting and deregistration would not affect its business
strategy.

The company's shares continue to trade in Milan, Italy.

                         About Fiat SpA

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment.  It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems.  Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.

Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.

                            *   *   *

As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term
Corporate Family Rating of Ba2 and Probability of Default Rating
at Ba2 with Outlook Positive.

Standard & Poor's give Long-Term Foreign and Local Issuer Credit
Ratings of BB+ for Fiat.  Its Short-term Foreign and Local
Issuer Credit Ratings are at B with Positive Outlook.

Dominion Bond Rating Service gives Fiat a Long-term Issuer
Rating of BB with Positive Outlook.


HUNTSMAN CORP: Holders Linked with MatlinPatterson Sell Shares
--------------------------------------------------------------
Huntsman Corporation disclosed that certain existing
stockholders affiliated with MatlinPatterson Global Advisers LLC
have entered into an underwriting agreement providing for a
registered public secondary sale of 56,979,062 shares of
Huntsman common stock.

This sale is pursuant to the shelf registration statement filed
with the Securities and Exchange Commission on July 31, 2007.
The sale is expected to close on Aug. 6, 2007, subject to
customary closing conditions.

Huntsman will not receive any of the proceeds from this
offering.

Credit Suisse Securities (USA) LLC is the underwriter for the
offering.

A copy of the prospectus and, when available, a copy of the
prospectus supplement may be obtained from:

     Credit Suisse Prospectus Department
     One Madison Avenue
     New York, NY 10010
     Tel 1-800-221-1037

Headquartered in Salt Lake City, Utah, Huntsman Corp. (NYSE:
HUN) -- http://www.huntsman.com/-- manufactures and markets
differentiated and commodity chemicals.  Its operating companies
manufacture products for a variety of global industries
including chemicals, plastics, automotive, aviation, textiles,
footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture,
appliances and packaging.  The company has operations in
Indonesia, Italy, and Guatemala.

                       *     *     *

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


TEKSID ALUMINUM: Soliciting Consents to Amend 11-3/8% Notes
-----------------------------------------------------------
Teksid Aluminum Luxembourg S.a r.l., S.C.A., has commenced a
solicitation of consents, on Aug. 2, 2007, from each holder of
its outstanding 11-3/8% Senior Notes due 2011 pursuant to a
consent solicitation statement dated Aug. 2, 2007, to implement
proposed amendments to the indenture governing the Senior Notes.

The consent solicitation will expire at 10:00 a.m., New York
City time (3:00 p.m., London time), on Aug. 8, 2007, unless
extended or earlier terminated.  Adoption of the proposed
amendments and execution of a supplemental indenture giving
effect to the proposed amendments (the Supplemental Indenture)
requires the receipt of consents of at least a majority of the
then aggregate outstanding principal amount of Senior Notes (the
Requisite Consents) on or prior to the Expiration Date.

Noteholders who consent at or prior to the execution of the
Supplemental Indenture may revoke their consents at any time
prior to the execution of the Supplemental Indenture, but not
thereafter.

By delivering their consents, Noteholders are consenting to:

   (i) allow the sale of Teksid Aluminum S.r.l. and,
       indirectly, its subsidiary Teksid Aluminum Getti
       Speciali S.r.l., (the Fiat Sold Companies) to Fiat
       Powertrain Technologies S.p.A. pursuant to an agreement
       dated July 25, 2007 (as such agreement may be amended in
       accordance with the terms of the Statement);

  (ii) allow the repayment or settlement of certain
       intercompany obligations, including the obligations owed
       by the Company and TK Aluminum-Luxembourg Finance S.a
       r.l. to the Fiat Sold Companies and the obligations owed
       by the Fiat Sold Companies to certain of the company's
       indirect subsidiaries organized under the laws of
       France;

(iii) permit the transfer of the quotas held by the Company in
       Teksid Aluminum Getti Speciali S.r.l. to Teksid Aluminum
       S.r.l.;

  (iv) extend the time by which an offer to purchase Senior
       Notes with the proceeds of the sales of each of Teksid
       Aluminum Poland Sp. z o.o., the company's indirectly
       held minority equity interest in Nanjing Teksid Aluminum
       Foundry and the Company's equity interest in Cevher
       Dokum Sanayi A.S. is to be made to no later than
       Oct. 15, 2007; and

   (v) extend the time by which an offer to purchase Senior
       Notes with the proceeds of each of the Fiat Payment and
       the Escrow Amount is to be made to no later than ten
       business days after receipt of such payments, but in no
       event prior to Oct. 15, 2007.

As soon as the Requisite Consents are obtained, the company
intends to execute the Supplemental Indenture.

There will not be any consent fee offered to holders of Senior
Notes in conjunction with the consent solicitation.

The completion of the consent solicitation is subject to, among
other things, the following conditions: the valid receipt, prior
to the Expiration Date, of the Requisite Consents, the due
execution of the Supplemental Indenture, and certain other
general conditions described in the Statement.

These conditions are for the company's sole benefit and the
company may waive them in whole or in part at any or at various
times prior to the expiration of the consent solicitation in its
sole discretion.  In addition, subject to the terms set forth in
the Statement, the company expressly reserves the right, but
will not be obligated, at any time or from time to time, on or
prior to the Expiration Date, to extend or amend the consent
solicitation in any respect, subject to applicable law.

                    About Teksid Aluminum

Teksid Aluminum Luxembourg S.a r.l. --
http://www.teksidaluminum.com/-- manufactures aluminum engine
castings for the automotive industry.  Principal products
include cylinder heads, engine blocks, transmission housings,
and suspension components.  The company operates 15
manufacturing facilities in Europe, North America, South
America, and Asia.  The company maintains operations in Italy,
Brazil, and China.

                       *     *     *

As reported on May 9, 2007, Moody's Investors Service confirmed
the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well
as the Ca rating of the company's senior notes at Teksid
Aluminum Luxembourg Sarl SCA with a stable outlook.

It also lowered its long-term debt rating on the EUR240 million
senior unsecured notes issued by Teksid Aluminum Luxembourg
S.a.r.l., S.C.A. and guaranteed by TKA to 'D' from 'C'.


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


BAREGIT-KAZAKHSTAN: Claims Filing Period Ends Sept. 14
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared CJSC Baregit-Kazakhstan insolvent.

Creditors have until Sept. 14 to submit written proofs of claims
to:

         CJSC Baregit-Kazakhstan
         Gogol Str. 177a
         Kostanai
         Kazakhstan


BT FOOD-2: Creditors Must File Claims Sept. 12
----------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
ruled a compulsory liquidation of LLP BT Food-2.

Creditors have until Sept. 12 to submit written proofs of claims
to:

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


GARANT+ LLP: Claims Filing Period Ends Sept. 12
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Firm Garant+ insolvent.

Creditors have until Sept. 12 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov Str. 95-316
         Kostanai
         Kazakhstan


KULAGER JSC: Creditors' Claims Due on Sept. 18
----------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda
region has declared JSC Kulager insolvent.

Creditors have until Sept. 18 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda
         Jakayev Str. 71
         Kyzylorda
         Kazakhstan


MONTAGE-CENTRE LLP: Claims Registration Ends Sept. 12
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
ruled a compulsory liquidation of LLP Montage-Centre on May 28.

Creditors have until Sept. 12 to submit written proofs of claims
to:

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


SERVICE-KAZAKHSTAN TRACTOR: Creditors Must File Claims Sept. 12
---------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Service-Kazakhstan Tractor insolvent.

Creditors have until Sept. 12 to submit written proofs of claims
to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov Str. 95-316
         Kostanai
         Kazakhstan


SEYNUR LLP: Claims Filing Period Ends Sept. 6
---------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Seynur insolvent on June 19.

Creditors have until Sept. 6 to submit written proofs of claims
to:

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



TEMIR BOLAT: Creditors' Claims Due on Sept. 12
----------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Temir Bolat insolvent.

Creditors have until Sept. 12 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


XXX AKTOBE: Claims Registration Ends Sept. 12
---------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP XXX Aktobe insolvent.

Creditors have until Sept. 12 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


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


MEDICAMENTY ROSSIYI: Claims Filing Period Ends September 11
-----------------------------------------------------------
Joint Kyrghyz-Russian LLC Russian Medicaments Medicamenty
Rossiyi has declared insolvency.  Creditors have until Sept. 11
to submit written proofs of claim to:

         LLC Medicamenty Rossiyi
         Toktogul Str. 208/1
         Bishkek
         Kyrgyzstan
         Tel/Fax: (+996 312) 21-44-48
                  (+996 312) 21-86-26


OZKENT LLC: Creditors' Meeting Slated for August 17
---------------------------------------------------
Creditors of LLC Ozkent will convene at 11:00 a.m. on Aug. 17
at:

         Room 106
         Moskovskaya Str. 151
         Bishkek
         Kyrgyzstan

The Inter-District Court of Bishkek for Economic Issues declared
LLC Ozkent (Case No. ED-322/07mbs8) insolvent on June 11, 2007.
Subsequently, bankruptcy proceedings were introduced at the
company.

Kerez Ilimkaziyeva has been appointed temporary insolvency
manager.

Creditors must submit their proofs of claim and be registered
within sevens days before the meeting with the temporary
insolvency manager.

Proxies must have authorization to vote.

The temporary insolvency can be reached at:

         Kerez Ilimkaziyeva
         (+996 312) 21-67-26
         (+996 312) 60-93-32


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


DRESSER-RAND: Earns US$26.2 Million in Second Quarter of 2007
-------------------------------------------------------------
Dresser-Rand Group Inc. reported net income of US$26.2 million
for the second quarter 2007.  This compares to a net income of
US$10.7 million for the second quarter 2006.

Second quarter 2007 income included a provision for litigation
and related interest of US$4.2 million (US$2.6 million after-tax
or US$0.03 per diluted share) and a charge of US$ 2.3 million
(US$1.5 million after-tax or US$0.02 per diluted share) related
to a change in an accounting estimate for workers' compensation.

"The improvements in our second quarter 2007 results over last
year were somewhat tempered by the litigation provision and a
change in accounting estimate," Vincent R. Volpe, Jr., President
and Chief Executive Officer of Dresser- Rand, said.  "The impact
of these two items was approximately US$0.05 per diluted share.
Additionally, changes in procurement processes and a delay in
the budget appropriations by certain of our national oil company
clients resulted in lower than expected aftermarket bookings and
revenues for the period.  Total revenues increased 4%, operating
income increased 14%, and our backlog grew 59% over the year ago
period.  New unit bookings were strong as the upstream,
midstream and downstream markets remain very active, with the
most notable order coming for a floating, production, storage
and offloading project for British Petroleum for approximately
US$154 million.

Total revenues for the second quarter 2007 of US$441.2 million
increased US$17.2 million or 4% compared to US$424 million for
the second quarter 2006.  Total revenues for the six months
ended June 30, 2007 of US$755.6 million increased US$40.1
million or 6% compared to US$715.5 million for the corresponding
period in 2006.

Operating income for the second quarter 2007 was US$50.1
million.  This compares to operating income of US$27.2 million
for the second quarter 2006 which included US$16.8 million for
stock-based compensation expense for exit units.  Second quarter
2007 operating income increased from the year ago quarter due to
higher pricing and productivity improvements.  Operating income
for the six months ended June 30, 2007 was US$83 million.  This
compares to operating income of US$57.4 million for the
corresponding period in 2006, which included a net charge of
US$5 million comprised of the US$16.8 million for stock-based
compensation expense for exit units partially offset by a US$12
million curtailment gain.  Operating income increased from the
year ago six-month period primarily due to higher pricing.

As of June 30, 2007, cash and cash equivalents totaled
US$160.8 million and borrowing availability under the US$350
million revolving credit portion of the company's senior credit
facility was US$147.5 million, as US$202.5 million was used for
outstanding letters of credit.

In first six months of 2007, cash provided by operating
activities was US$136.2 million, which compared to US$6.9
million for the corresponding period in 2006.  The increase of
US$129.3 million in net cash provided by operating activities
was principally from changes in working capital.  In the first
six months of 2007, capital expenditures totaled US$8.6 million
and the company prepaid US$110.1 million of its outstanding
indebtedness under its senior secured credit facility.  As of
June 30, 2007, total debt was US$396.9 million and total debt
net of cash and cash equivalents was approximately US$236.1
million.

In July 2007, the company prepaid the remaining US$26.8 million
of outstanding indebtedness under its senior secured credit
facility.

                    About Dresser-Rand

Headquartered in Houston, Texas, Dresser-Rand Group Inc. (NYSE:
DRC) is a supplier of rotating equipment solutions to the
worldwide oil, gas, petrochemical, and process industries.  It
operates manufacturing facilities in the United States, France,
Germany, Norway, India, and Brazil, and maintains a network of
24 service and support centers covering 105 countries.

                       *     *     *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


DRESSER-RAND: Supplying NatGas Compression Unit to P-18 Oil Rig
---------------------------------------------------------------
Dresser-Rand said in a statement that it will supply the natural
gas compression unit to Brazil's state-run oil firm Petroleo
Brasileiro SA's P-18 oil rig in the Campos basin's Marlin field.

Business News Americas relates that the agreement is estimated
at over US$11 million.  It would be signed in August.

Dresser-Rand told BNamericas that it "developed a separation and
centrifugal compression technology that allows a reduction in
the size and weight of the required compression equipment."

Dresser-Rand also supplied compression systems to the P-53
floating production, storage and offloading vessel in the Marlim
field, BNamericas states.

                 About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.  Petrobras has operations in China, India, Japan, and
Singapore.

                     About Dresser-Rand

Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries.  It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.

                       *     *     *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


===============
P O R T U G A L
===============


QUANTUM CORP: Posts US$22.6 Mln Net Loss in Qtr. Ended June 30
--------------------------------------------------------------
Quantum Corp. announced on Wednesday its results for the fiscal
first quarter ended June 30, 2007.

The company reported a GAAP net loss of US$22.6 million for the
first quarter of fiscal 2008, compared to a net loss of
US$3.6 million in the first quarter of fiscal 2007.  The
US$22.6 million net loss in the first quarter of fiscal 2008
reflected a number of major expense items totaling US$28
million, much of which was also driven by the ADIC acquisition:
US$13 million in amortization of intangibles, US$12 million in
restructuring and other transition expenses related to the
acquisition, and
US$3 million in stock-based compensation charges.  Revenue for
the first quarter of fiscal 2008 was US$246 million.  This
represented a 32% increase over the same quarter last year,
largely resulting from Quantum's acquisition of Advanced Digital
Information Corp. (ADIC) in August 2006.

One of the highlights of the June quarter was Quantum's gross
margin results.  The company's GAAP gross margin rate was 31.8%,
a significant increase over the 27.9% rate in the same quarter
last year and its best performance in three years.  Operating
expenses were US$92 million, up from US$55 million in the first
quarter of fiscal 2007 primarily as a result of the ADIC
acquisition.

"It has been just under a year since we completed the ADIC
acquisition, and we are very pleased with what we have been able
to achieve as a combined company in this relatively short time,"
said Rick Belluzzo, chairman and chief executive officer of
Quantum.  "As in previous years, the June quarter was
challenging from a revenue standpoint, but our operating income
as a percentage of revenue over the last three quarters has been
the best we've achieved in more than five years, when
amortization, stock-based compensation and acquisition-related
expenses are excluded.  In addition, we've completed the vast
majority of the integration and strategic actions that will now
allow us to focus on growing the business by taking advantage of
our expanded opportunities."

Quantum's product revenue, which includes sales of the company's
hardware and software products and services, totaled US$222
million in the first quarter of fiscal 2008.  This represented a
net increase of US$63 million over the first quarter of fiscal
2007, with greater revenue contributions from tape automation,
disk systems and software, and services offsetting a decline in
royalties and device revenues.  Quantum continued to increase
the percentage of its product revenue coming from branded sales,
which rose to 58% in the June quarter.

Quantum had US$24 million in royalty revenue for the first
quarter of fiscal 2008, down approximately US$3.5 million from
the same quarter last year.

                Disk Systems and Software Momentum

In announcing its June quarter results, Quantum also highlighted
the momentum in its disk systems and software business.  The
company began shipping its DXi3500 and DXi5500 disk backup
appliances with data de-duplication and remote replication
capabilities less than six months ago, and in the last two
months alone has sold nearly twice as many units as it did in
the previous four months.  These DXi-Series products have
attracted a broad range of customers around the world -- from
smaller organizations to leading brand name companies to major
governmental agencies -- with representation across a wide array
of industries, including telecommunications, financial services,
health care, education, technology, and consumer products.

Quantum also pointed to several competitive advantages that
position it to capitalize on the opportunities in disk-based
data protection moving forward.  Along with Quantum's global
scale and strong sales and service infrastructure, these
advantages include a large installed base of tape automation
customers it can help in transitioning to disk backup and an
industry-leading tape library portfolio the company can leverage
in bundled disk-tape offerings. Quantum is already seeing the
benefits of this combination, as roughly 20% to 25% of customers
that purchase a DXi-Series unit also buy tape at the same time.

In addition to building momentum in its disk-based backup
business over the last several months, Quantum has strengthened
its StorNext data management software portfolio.  In April, the
company introduced StorNext 3.0, which extends high performance,
resilient data sharing to local area network clients and offers
data de-duplication for archiving.  Quantum has also enhanced
its StorNext market position with HP as a global reseller and
continued to gain new enterprise customers such as Microsoft,
Fox News and the U.S. Bureau of Land Management.

At June 30, 2007, the company's consolidated balance sheet
showed US$1.1 billion in total assets, US$872.0 million in total
liabilities, and US$238.4 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?2209

                       About Quantum Corp.

Headquatered in San Jose, California, Quantum Corp. (NYSE: QTM)
-- http://www.quantum.com/-- is a global storage company
specializing in backup, recovery and archive.  Quantum provides
a comprehensive, integrated range of disk, tape, and software
solutions supported by a world-class sales and service
organization.  The company works closely with a broad network of
resellers, OEMs and other suppliers to meet customers' evolving
data protection needs.  In Latin America, the company has
distributors in Argentina, Brazil, Chile, Mexico and Puerto
Rico.  In Europe, the company maintains operations in Denmark,
Czech Republic, Romania, Portugal, France, Germany, and the
United Kingdom.  Quantum reported revenue of slightly more than
USUS$1 billion for the fiscal year ending March 31, 2007.

                           *     *     *

As reported in the Troubled Company Reporter on June 20, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on San Jose, California-based Quantum Corp.  At
the same time, Standard & Poor's revised its outlook on Quantum
to positive from stable.


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


A. RADISHEV: Creditors Must File Claims by Sept. 14
---------------------------------------------------
Creditors of OJSC Tannery Named After A. Radishev have until
Sept. 14 to submit proofs of claim to:

         M. Moskvin
         Insolvency Manager
         Premise 10n
         Letter A
         Bolshoj Pr. P.S. 79
         197022 St. Petersburg
         Russia

The Arbitration Court of St. Petersburg and Leningrad commenced
bankruptcy proceedings against the company after finding it
insolvent.  The case is docketed under Case No. A56-36146/2006.

The Court is located at:

         The Arbitration Court of St. Petersburg and the
         Leningrad
         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         OJSC Tannery Named After A. Radishev
         Kozhevennaya Liniya 27
         199106 St. Petersburg
         Russia


BELGOK CJSC: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------
The Arbitration Court of Belgorod commenced bankruptcy
supervision procedure on CJSC Belgok.  The case is docketed
under Case No. A08-2216/07-11.

The Temporary Insolvency Manager is:

         A. Ovchinnikov
         Rzhevskoe Shosse 11
         Shebekino
         309290 Belgorod
         Russia

The Court is located at:

         The Arbitration Court of Belgorod
         Narodnyj Avenue 135
         308600 Belgorod
         Russia

The Debtor can be reached at:

         CJSC Belgok
         Lenina Str. 16
         Stroitel
         Yakovlevskiy
         309070 Belgorod
         Russia


BUCYRUS INT'L: Earns US$27.8 Million in Second Quarter 2007
-----------------------------------------------------------
Bucyrus International Inc. disclosed its summary unaudited
results for the three and six months ended June 30, 2007.
Bucyrus acquired DBT on May 4, 2007, for US$710 million in cash,
subject to certain post-closing adjustments, and 471,476 shares
of Bucyrus' common stock with a market value of US$21.8 million.

Net earnings for the second quarter of 2007 were US$27.8
million, or US$.81 per share, compared with US$21.6 million, or
US$0.69 per share, for the second quarter of 2006.  Net earnings
for the six months ended June 30, 2007, were US$45.6 million, or
US$1.39 per share, compared with US$36.1 million, or US$1.15 per
share, for the six months ended June 30, 2006.

               Second Quarter Operating Results

The net assets acquired and results of operations of DBT since
the date of acquisition are included in Bucyrus' financial
information presented below which, as a result of the shortened
reporting period, may not be indicative of future results.

Sales for the second quarter of 2007 were US$374.8 million, an
increase of US$193.0 million, or 106.2%, from US$181.8 million
for the second quarter of 2006.  Original equipment sales were
US$189.0 million, an increase of US$135.2 million, or 251.6%,
from US$53.8 million for the second quarter of 2006.
aftermarket parts and service sales were US$185.8 million, an
increase of US$57.8 million, or 45.1%, from US$128.0 million for
the second quarter of 2006.  Sales for the six months ended
June 30, 2007 were US$565.2 million, an increase of US$217.7
million, or 62.7% from US$347.5 million for the six months ended
June 30, 2006.  Original equipment sales were US$267.4 million,
an increase of US$160.2 million, or 149.4%, from US$107.2
million for the six months ended June 30, 2006.  Aftermarket
parts and service sales were US$297.8 million, an increase of
US$57.5 million, or 23.9%, from US$240.3 million for the six
months ended June 30, 2006.  Surface mining sales for second
quarter of 2007 were US$213.6 million, an increase of US$31.8
million, or 17.5%, from US$181.8 for the second quarter of 2006.
Surface mining original equipment sales were US$85.7 million, an
increase of US$31.9 million, or 59.5%, from US$53.8 million for
the second quarter of 2006, and aftermarket parts and service
sales were US$127.9 million, a decrease of US$.1 million, or
0.1%, from US$128.0 million for the second quarter of 2006.

Surface mining sales for the six months ended June 30, 2007 were
US$404.0 million, an increase of US$56.5 million, or 16.3%, from
US$347.5 million for the six months ended June 30, 2006.
Surface mining original equipment sales were US$164.1 million,
an increase of US$56.9 million, or 53.1%, from US$107.2 million
for the six months ended June 30, 2006, and aftermarket parts
and service sales were US$239.9 million, a decrease of US$.4
million, or .2%, from US$240.3 million for the six months ended
June 30, 2006.  The overall increase in surface mining sales is
the result of sustained demand and increased prices of
commodities that are surface mined by Bucyrus machines.
Capacity constraints continue to have an impact on surface
mining sales.  The ongoing expansion of Bucyrus' South Milwaukee
facilities is expected to be completed by the first quarter of
2008.  Underground mining sales for the second quarter and first
six months of 2007 were US$161.2 million and consisted of
US$103.3 million and US$57.9 million of original equipment and
aftermarket parts and service sales, respectively.  Underground
mining sales were at the level expected when DBT was acquired.

Gross profit for the second quarter of 2007 was US$96.3 million,
or 25.7% of sales, compared with US$46.9 million, or 25.8% of
sales, for the second quarter of 2006.  Gross profit for the six
months ended June 30, 2007 was US$148.4 million, or 26.3% of
sales, compared with US$87.8 million, or 25.3% of sales, for the
six months ended June 30, 2006.  Gross profit for the second
quarter and first six months of 2007 was reduced by US$6.2
million of amortization of purchase accounting adjustments as a
result of the acquisition of DBT.  Excluding this amortization,
the gross profit percentage for the second quarter and first six
months of 2007 in each case would have been 27.3%.  The
increases in gross profit were primarily due to the acquisition
of DBT and increased surface mining original equipment sales, as
well as improved gross margins on both surface mining original
equipment and aftermarket parts and services.

Selling, general and administrative expenses for the second
quarter of 2007 were US$42.9 million, or 11.5% of sales,
compared with US$18.1 million, or 9.9% of sales, for the second
quarter of 2006.  Selling, general and administrative expenses
for the six months ended June 30, 2007 were US$64.1 million, or
11.3% of sales, compared with US$33.5 million, or 9.7% of sales,
for the six months ended June 30, 2006.  The increase in
selling, general and administrative expenses was primarily due
to the acquisition of DBT.  Excluding the impact of the
acquisition of DBT, the dollar amount of selling, general and
administrative expenses in the second quarter of 2007
approximated the dollar amount of selling, general and
administrative expenses recognized in recent quarters.

Operating earnings were US$44.3 million for the second quarter
of 2007, an increase of 74.7% from US$25.4 million for the
second quarter of 2006.  Operating earnings for the six months
ended June 30, 2007 were US$72.2 million, an increase of 49.2%
from US$48.4 million for the six months ended June 30, 2006.
Included in second quarter and first six months operating
earnings for 2007 was US$11.5 million related to the operations
of DBT, which is net of US$10.5 million of purchase accounting
adjustments.  In addition to operating earnings related to DBT
operations, operating earnings for the quarter and six months
ended June 30, 2007, increased primarily due to increased gross
profit resulting from increased sales volume.

Interest expense was US$7.0 million for the second quarter of
2007 compared with US$.6 million for the second quarter of 2006.
Interest expense for the six months ended June 30, 2007 was
US$8.4 million compared with US$1.2 million for the six months
ended June 30, 2006.  The increase in interest expense in 2007
was due to increased debt levels related to the financing of the
acquisition of DBT.

Income tax expense for the second quarter 2007 was US$11.0
million compared with US$3.2 million for the second quarter
2006.  Income tax expense for the six months ended
June 30, 2007, was US$19.6 million compared with US$11.0 million
for the six months ended June 30, 2006.  The effective rate for
the second quarter of 2007 was 28.3%, which is lower than the
statutory rate as a result of the implementation of the
financing structure and certain one-time adjustments related to
the acquisition of DBT.  Income tax expense for the second
quarter of 2006 was reduced by a net income tax benefit of
approximately US$3.7 million related to foreign tax credits.
The foreign tax credits resulted from the completion of Bucyrus'
evaluation of its potential to claim additional foreign tax
credits generated in previous tax periods.

EBITDA for the second quarter of 2007 was US$57.7 million, an
increase of 98.4% from US$29.1 million for the second quarter of
2006.  As a percent of sales, EBITDA for the second quarter of
2007 was 15.4% compared to 16.0% for the second quarter of 2006.
EBITDA for the six months ended June 30, 2007 was US$89.8
million, an increase of 61.3% from US$55.7 million for the six
months ended June 30, 2006.  As a percent of sales, EBITDA for
the six months ended June 30, 2007, was 15.9% compared to 16.0%
for the six months ended June 30, 2006.  Included in second
quarter and first six months EBITDA for 2007 was US$20.3 million
related to the operations of DBT.  EBITDA is defined as net
earnings before interest income, interest expense, income taxes,
depreciation and amortization.  EBITDA includes the impact of
non-cash stock compensation expense, severance expenses, loss on
sales of fixed assets and the inventory fair value purchase
accounting adjustment charged to cost of products sold.
EBITDA is a measurement not recognized in accordance with
accounting principles generally accepted in the United States of
America and should not be viewed as an alternative to GAAP
measures of performance.  For a reconciliation of net earnings
as shown in the Unaudited Consolidated Statements of Earnings to
EBITDA and a reconciliation of net cash provided by operating
activities as shown in the Unaudited Consolidated Statements of
Cash Flows to EBITDA.

Capital expenditures for the first six months of 2007 were
US$35.6 million, which included US$16.8 million related to
Bucyrus' previously announced ongoing expansion of its South
Milwaukee facilities.  The remaining capital expenditures
consisted primarily of production machinery at its main
manufacturing facility.

As of June 30, 2007, total backlog was US$1.46 billion, US$1.13
billion of which was expected to be recognized within the
subsequent 12 months.  This represents a 63.6% and 90.8%
increase from the December 31, 2006 total backlog of US$894.7
million and 12-month backlog of US$593.8 million, respectively.
Included in backlog at June 30, 2007 was US$994.6 million
related to surface mining operations, US$667.4 million of which
was expected to be recognized within the subsequent 12 months,
and US$469.1 million related to underground mining operations,
US$465.5 million of which was expected to be recognized within
the subsequent 12 months.  New orders related to surface mining
operations for the first six months of 2007 were US$298.5
million and US$205.3 million for original equipment and
aftermarket parts and service sales, respectively.  New orders
related to underground mining operations for the first six
months of 2007 were US$127.3 million and US$62.2 million for
original equipment and aftermarket parts and service sales,
respectively.  Included in surface mining original equipment
orders for the second quarter of 2007 was the sale of a dragline
and related equipment with a price in excess of US$100.0 million
to be delivered by 2010.  Since Bucyrus recognizes revenue on a
percentage of completion basis, the impact of this order will be
recognized over a period of several years.

                About Bucyrus International

Bucyrus International Inc.-- http://www.bucyrus.com/-- is a
leading manufacturer of electric mining shovels, walking
draglines and rotary blasthole drills and provides aftermarket
replacement parts and services for these machines.  For the 12
months ended Sept. 30, 2006, Bucyrus had sales of USUS$705
million.  Bucyrus is headquartered in South Milwaukee,
Wisconsin.  DBT has eight facilities around the world and
approximately 3,200 employees.  The company has operations in
Brazil, Chile, China and Russia.

                       *     *     *

As reported in the Troubled Company Reporter-LAtin America on
June 7, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Bucyrus's credit facilities.  The bank loan
rating remains 'BB-', however the recovery rating was revised to
'3' from '4', indicating S&P's expectation that these lenders
would receive meaningful recovery (50%-80%) in a payment
default.

The paydown of more than USUS$300 million in the term loan -- to
US$500 million from USUS$825 million from proceeds of a recent
equity offering -- was the primary reason for the rating change.

The corporate credit rating on Bucyrus is BB-/Positive/--


BRISTOW GROUP: First Quarter Net Earnings Increase by 31.6%
-----------------------------------------------------------
Bristow Group Inc. disclosed its financial results for its
fiscal 2008 first quarter ended June 30, 2007.  The company
posted revenue of US$245.0 million, which increased by 10.8
percent over the first quarter of fiscal year 2007.  Revenue
gains occurred in most of the company's business units, driven
by improved pricing and the addition of new aircraft.

Operating income of US$29.9 million decreased by 3.8 percent
over the first quarter of fiscal year 2007, primarily due to
higher compensation and maintenance costs within our West Africa
and Eastern Hemisphere (EH) Centralized Operations business
units, partially offset by increased revenue;

The company earned US$22.7 million, an increased of 31.6 percent
versus net income for the first quarter of fiscal year 2007.
Increases in earnings from unconsolidated affiliates, interest
income and other income contributed to the improvement in the
latest quarter's net income.

                   Capital and Liquidity

The June 30, 2007 consolidated balance sheet reflected
US$902.9 million in stockholders' investment and US$561.3
million of indebtedness.

The company had US$339.5 million in cash and an undrawn US$100
million revolving credit facility.

The company used US$2.3 million of cash for operating
activities, which included a US$29.9 million increase in
receivables, primarily from operations in Nigeria.  It has
received payment for a majority of these Nigeria receivables in
July.  It also used US$121.8 million for capital expenditures,
primarily for aircraft, and US$12.9 million for the acquisition
(net of cash acquired) of Bristow Academy during the first
quarter of fiscal year 2008.

Aircraft purchase commitments totaled US$255.0 million, with
options totaling US$732.9 million as of June 30, 2007.

William E. Chiles, President and Chief Executive Officer of
Bristow Group Inc., said, "We saw strong financial performance
and good execution against our strategic plan during the latest
quarter, and we remain on target with our plan to expand our
fleet and improve overall margins and operating efficiencies.
The industry fundamentals continue to be very strong, and our
customers remain committed to field development plans, which is
the primary driver of our growth.  The company continues to
believe demand for aircraft will exceed supply over the next
several years, which should create good opportunities to enhance
revenue and margin growth going forward."

Headquartered in Houston, Texas, Bristow Group, Inc. --
http://www.bristowgroup.com/ -- (NYSE:BRS), fka Offshore
Logistics, Inc., provides helicopter transportation services to
the worldwide offshore oil and gas industry with operations in
the United States Gulf of Mexico and the North Sea. The Company
also has operations, both directly and indirectly, in offshore
oil and gas producing regions of the world, including Australia,
Brazil, China, India, Mexico, Nigeria, Russia and Trinidad.  The
Company also provides production management services for oil and
gas production facilities in the United States Gulf of Mexico.

                        *     *     *

As reported in the Troubled Company Reporter on June 6, 2007,
Standard & Poor's Ratings Services assigned its 'BB' rating to
helicopter service company Bristow Group Inc.'s US$250 million
senior notes due 2017.  At the same time, Standard & Poor's
affirmed the 'BB' corporate credit rating and all other ratings
on the company.  S&P said the outlook is negative.


DEB-IMPORT CJSC: Creditors Must File Claims by Aug. 14
------------------------------------------------------
Creditors of CJSC Deb-Import have until Aug. 14 to submit proofs
of claim to:

         N. Fomin
         Insolvency Manager
         Post User Box 131
         664025 Irkutsk
         Russia

The Arbitration Court of Khabarovsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A73-4085/2007-9.

The Debtor can be reached at:

         CJSC Deb-Import
         15p/partizan 42-1
         Sovetskaya Gavan
         682800 Khabarovsk
         Russia


DMITROVSK-CERAMICS: Creditors Must File Claims by Sept. 14
----------------------------------------------------------
Creditors of CJSC Dmitrovsk-Ceramics have until Sept. 14 to
submit proofs of claim to:

         O. Malygina
         Insolvency Manager
         60 Let Oktyabrya Str. 13-32
         302040 Russia

The Arbitration Court of Orel commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A48-2104/07-16B.

The Court is located at:

         The Arbitration Court of Orel
         Gorkogo Str. 42
         302000 Orel
         Russia

The Debtor can be reached at:

         CJSC Dmitrovsk-Ceramics
         Orel
         Russia


IRKUTSKIY WOOD: Creditors Must File Claims by Sept. 14
------------------------------------------------------
Creditors of LLC Irkutskiy Wood have until Sept. 14 to submit
proofs of claim to:

         N. Fomin
         Insolvency Manager
         Post User Box 131
         664025 Irkutsk
         Russia

The Arbitration Court of Irkutsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A19-27191/06-37.

The Court is located at:

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

The Debtor can be reached at:

         LLC Irkutskiy Wood
         Zarechnaya Str. 31
         Bolshoj Lug
         Shelekhovskiy
         Irkutsk
         Russia


MALACHITE LLC: Bankruptcy Hearing Slated for Nov. 27
----------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad will
convene on Nov. 27 to hear the bankruptcy supervision procedure
on LLC Malachite.  The case is docketed under Case No.
A56-11201/2007.

The Temporary Insolvency Manager is:

         V. Fedichev
         Premise 10N
         Letter A
         Bolshoj Pr. P.S. 79
         197022 St. Petersburg
         Russia

The Court is located at:

         The Arbitration Court of St. Petersburg and the
         Leningrad
         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         LLC Malachite
         Letter Ya
         Apartment 1
         Dybenko Str. 13
         193230 St. Petersburg
         Russia


MUGREEVSKOE PEAT: Ivanovo Bankruptcy Hearing Slated for Oct. 17
---------------------------------------------------------------
The Arbitration Court of Ivanovo will convene at 1:00 p.m. on
Oct. 17 to hear the bankruptcy supervision procedure on OJSC
Mugreevskoe Peat Enterprise.  The case is docketed under Case
No. A17-1924/07-1-B.

The Temporary Insolvency Manager is:

         S. Akimov
         Temporary Insolvency Manager
         Dekabristov Str. 17, 16
         Kineshma
         Ivanovo
         Russia

The Court is located at:

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

The Debtor can be reached at:

         OJSC Mugreevskoe Peat Enterprise
         Sovetskaya Str. 9
         Mugreevskiy
         Yuzhskiy
         Ivanovo
         Russia


NORTH-WEST TELECOM: To Issue RUR3 Bln Bonds to Fund Investments
---------------------------------------------------------------
North-West Telecom JSC's board of directors approved the
issuance and the offering circular of the interest-bearing
documentary bonds payable to the bearer series 05.

Parameters of the fifth bonds issue:

   -- total volume of the issue will be RUR3 billion;

   -- circulation period of the bonds will be five years.

   -- flotation price of one bond is equal to the face value
      (RUR1,000).  The interest rate for the first coupon will
      be determined as the sum of two parts:

      -- MosPrime Rate for three months, established on the last
         working day before the date of issue flotation start;
         and

      -- premium to the MosPrime Rate for three months;

   -- the rate for the second to 12th coupons will be MosPrime
      Rate plus Premium, however, no higher than the Limit Rate
      that will be set by the Company immediately before the
      date of flotation start;


   -- the bonds will be floated through public subscription at
      the MICEX Stock Exchange.  The starting date of flotation
      will be fixed by the Company after the state registration
      of the bond issue depending on the market situation; and

   -- a stage-by-stage retirement of the issue is provided for.
      The bonds will be retired consecutively, in parts, on the
      these dates:

      -- on the 1,456th day from the starting date of flotation
         each bond will be retired partially to the amount of
         25% of the face value;

      -- on the 1,638th day from the starting date of flotation
         each bond will be retired partially to the amount of
         25% of the face value; and

      -- on the 1,820th day from the starting date of flotation
         each bond will be retired partially to the amount of
         50% of the face value.

         Early retirement of the bonds is possible, if the
         Company wishes so, on any of the dates of coupon yield
         payment in the period from the 728th until the 1,729th
         day from the starting date of bonds flotation.  The
         amount of the premium to be paid in case of early
         retirement will be RUR2.50 per bond.

Funds received from the flotation of the issue are expected to
be allocated for refinancing existing debt and for funding the
Company's investment program.

LLC NWT-Finance, a 100% subsidiary of North-West Telecom, acts
as the surety.  AKB Svyaz-Bank JSC is the organizer and Bank St.
Petersburg JSC is acting as financial counselor.

                   About North-West Telecom

Headquartered in St. Petersburg, Russia, OAO North-West Telecom
-- http://www.nwtelecom.ru/-- provides a wide range of
telecommunication services on the territory of the North-Western
federal district.

                            *   *   *

As of Aug. 6, 2007, North-West Telecom carries BB- Long-Term
Local and Foreign Issuer Credit ratings from Standard & Poor's.
S&P said the outlook is stable.

The company also carries a B+ Long-term Issuer Default rating
from Fitch Ratings.  Fitch said the rating is on Watch Positive.


OAO NOVATEK: Buys Stakes in Companies with Yamal-Nenets Licenses
----------------------------------------------------------------
OAO Novatek has acquired a 25% participation interest in each of
these companies:

   -- OOO Oiltechprodukt-Invest,
   -- OOO Petra Invest-M, and
   -- OOO Tailiksneftegas.

The acquired companies hold exploration licenses to certain
license areas located in the Yamal-Nenets Autonomous Region,
which are in close proximity to Novatek's existing fields.

                          About Novatek

Headquartered in Tarko-Sale, Russia, OAO Novatek --
http://www.novatek.ru/-- engages in the exploration,
production and processing of natural gas and liquid
hydrocarbons.  The company's upstream activities are
concentrated in the prolific Yamal-Nenets Region in Western
Siberia.

                            *   *   *

As of July 28, 2007, OA Novatek carries BB- long-term foreign
and local issuer credit ratings with a stable outlook from
Standard & Poor's.


PRODZERNO LLC: Creditors Must File Claims by Aug. 14
----------------------------------------------------
Creditors of LLC Prodzerno have until Aug. 14 to submit proofs
of claim to:

         I. Alushkin
         Temporary Insolvency Manager
         Chakino
         Rzhakskiy
         393500 Tambov
         Russia

The Arbitration Court of Tambov will convene at 9:50 a.m. on
Oct. 3 to hear the company's bankruptcy supervision procedure on
LLC Prodzerno.  The case is docketed under Case No. A64-1761/
07-21.

The Debtor can be reached at:

         LLC Prodzerno
         Inzhavino
         Tambov
         Russia


RASSVET CJSC: Creditors Must File Claims by Sept. 14
----------------------------------------------------
Creditors of CJSC Rassvet have until Sept. 14 to submit proofs
of claim to:

         O. Fominykh
         Insolvency Manager
         Post User Box 154
         Irkutsk-50
         Russia

The Arbitration Court of Irkutsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A19-22760/06-38.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Rassvet
         Tabarsuk
         Alarskiy
         669469 Irkutsk
         Russia


ROSBANK: Better Performance Cues Fitch to Upgrade Ratings to BB-
----------------------------------------------------------------
Fitch Ratings has upgraded the ratings of Russia's Rosbank to
Long-term Issuer Default 'BB-' from 'B+', National Long-term
'A+(rus)' from 'A-(rus)' and Individual 'C/D' from 'D'.  The
bank's other ratings are affirmed at Short-term IDR 'B' and
Support Rating Floor 'B'.  The Support '4' rating, together with
the Long- and Short-term IDRs and National Long-term rating,
remain on Rating Watch Positive.

The rating action reflects improvements in Rosbank's efficiency
and therefore performance, as well as continued strengthening of
the bank's retail franchise and improvements in credit risk
management.  It also takes into account Fitch's view of the
improving, albeit still challenging, Russian operating
environment and hence better prospects for the country's leading
privately-owned banks.

Rosbank has sound management and a focused strategy that should
help retain and develop its strong market positions.  At the
same time, the ratings also consider the deterioration in retail
loan quality during 2006 (which the bank has sought to address
by adjusting its product focus and strengthening credit
procedures), the high proportion of unsecured corporate lending
and the still large portion of related-party funding.

The Positive Watch on Rosbank's ratings reflects the fact that
Societe Generale ('AA' /Outlook Stable) has a call option until
end-2008 to purchase a further stake in the bank from its
current majority shareholder, Interros.  Fitch views an exercise
of the option as likely, which would enable Societe Generale to
increase its stake to 50% plus 1 share from the current 20%
minus 1 share.  If Societe Generale becomes the majority owner
of Rosbank, there will be a greater probability of support being
forthcoming for Rosbank in case of need.

Pending the call option exercise by Societe Generale, further
upside pressure on Rosbank's ratings could result from an
improved asset quality track record, further improvements in
performance and a strengthening of capitalization.  Downward
pressure is viewed as unlikely in the near term, but could be
triggered by any significant deterioration in asset quality that
could compromise capital and liquidity levels.

Rosbank was founded in 1992, ranks among the top 10 banks in
Russia by total assets and at end-H107 was the third-largest
retail lender.  About 70% of its shares are currently controlled
by Interros, one of Russia's largest financial industrial
groups, with interests in the metals, power-machine building,
agricultural and insurance sectors.


ROSNEFT OIL: In Talks to Sell Non-Core Units to SoyuzNefteGaz
-------------------------------------------------------------
OAO Rosneft Oil Co. is currently in negotiations with OAO
SoyuzNefteGaz Oil Co. to sell stakes in the service firms
acquired from OAO Yukos Oil Co., RosBusinessConsulting reports.

SoyuzNefteGaz is particularly eyeing Rosneft's
Neftepromstroyservis unit and may have to spend RUR1 billion to
acquire it from the state-owned oil company, RBC relates.

The parties could have signed a deal earlier, but disagreed on
the purchase price, a source privy to the matter told RBC.

                          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.


SP-KHOLOD CJSC: Creditors Must File Claims by Aug. 14
-----------------------------------------------------
Creditors of CJSC SP-Kholod (TIN 7704176684) have until Aug. 14
to submit proofs of claim to:

         D. Zubanov
         Temporary Insolvency Manager
         Office 1
         Frunze Str. 7
         300041 Tula
         Russia

The Arbitration Court of Moscow will convene at 11:00 a.m. on
Oct. 25 to hear the company's bankruptcy supervision procedure.
The case is docketed under Case No. A40-26984/07-103-102 B.

The Court is located at:

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

The Debtor can be reached at:

         CJSC SP-Kholod
         Office 3
         Malaya Polyanka Str. 5
         119180 Moscow
         Russia


SADOVOD CJSC: Creditors Must File Claims by Sept. 14
----------------------------------------------------
Creditors of CJSC Sadovod (TIN 34190203213) have until Sept. 14
to submit proofs of claim to:

         A. Titov
         Insolvency Manager
         Post User Box 244
         400005 Volgograd
         Russia

The Arbitration Court of Volgograd commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A12-6762/07-s50.

The Debtor can be reached at:

         CJSC Sadovod
         Panfilovo
         Novoanninskiy
         403990 Volgograd
         Russia


TANTAL-D CJSC: Creditors Must File Claims by Sept. 14
-----------------------------------------------------
Creditors of CJSC Tantal-D have until Sept. 14 to submit proofs
of claim to:

         G. Bogdanova
         Insolvency Manager
         Chkalova Str. 21
         390029 Ryazan
         Russia

The Arbitration Court of Saratov commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A57-565/06-23.

The Court is located at:

         The Arbitration Court of Saratov
         Babushkin Vvoz 1
         Saratov
         Russia

The Debtor can be reached at:

         CJSC Tantal-D
         50 Let Oktyabrya Pr. 110a
         Saratov
         Russia


UNIKOM CJSC: Creditors Must File Claims by Sept. 14
---------------------------------------------------
Creditors of CJSC Unikom have until Sept. 14 to submit proofs of
claim to:

         A. Baranov
         Insolvency Manager
         Office 205
         Anglijskij Pr. 3
         190121 St. Petersburg
         Russia

The Arbitration Court of St. Petersburg and Leningrad commenced
bankruptcy proceedings against the company after finding it
insolvent.  The case is docketed under Case No. A56-20601/06.

The Court is located at:

         The Arbitration Court of St. Petersburg and the
         Leningrad
         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         CJSC Unikom
         Lermontovskiy Pr. 7/12
         St. Petersburg
         Russia


USEC INC: Posts US$13.4 Mln Net Loss in Quarter Ended June 30
-------------------------------------------------------------
USEC Inc. reported on Wednesday its results of operations for
the second quarter ended June 30, 2007.

USEC Inc. reported a net loss of US$13.4 million for its second
quarter ended June 30, 2007, compared to net income of
US$21.6 million in the same quarter of 2006.  Pro forma net
income before American Centrifuge expenses was US$9.5 million in
the second quarter of 2007 compared to US$39.0 million in the
same quarter last year.

USEC reported net income of US$25.9 million in the six-month
period ended June 30, 2007, compared to US$56.2 million in the
same period of 2006.  Pro forma net income before American
Centrifuge expenses was US$70.5 million in the first six months
of 2007, compared to US$86.2 million in the same period last
year.

The financial results in both periods reflect the impact of
higher electric power costs and higher purchase costs from
Russia.  These costs are increasing more rapidly than the
average price billed to customers under long-term contracts,
thereby reducing gross  profit.  The gross profit margin for the
first half of 2007 was 14.9% compared to 19.4% in the same
period of 2006.

Most of the spending on the American Centrifuge project to-date
has been expensed, which directly reduces net income.  Advanced
technology costs for the six-month period totaled US$69.3
million in 2007 compared to US$47.1 million in 2006.

"We continue to seek ways to optimize our Paducah operations and
improve our financial results in the near term, which will
generate additional cash flow from operations that can help
reduce external financing requirements for the American
Centrifuge project," said John K. Welch, USEC president and
chief executive officer.  "In fact, our efforts have allowed us
to fully fund the technology demonstration so far this year from
internally generated cash."

"Our new five-year power contract with TVA will provide
additional flexibility for our Paducah operations to produce
more SWU and obtain additional uranium from underfeeding the
enrichment process," Welch added.

USEC currently expenses most of its spending related to the
American Centrifuge, which directly reduces net income.

                             Revenue

Revenue for the six-month period was US$676.1 million, a
decrease of US$210.5 million over the same period of 2006.
Revenue from the sale of separative work units (SWU) was
US$550.9 million compared to US$638.3 million in the same period
last year, a 14% decline.  Revenue from the sale of uranium was
US$32.0 million compared to US$146.8 million in the same period
of 2006, a 78% decline.  Revenue from the company's U.S.
government contracts segment was US$93.2 million compared to
US$101.5 million in the prior year, reflecting reduced
Department of Energy contract work.

Revenue for the second quarter was US$211.1 million compared to
US$525.3 million in the same quarter last year, a decline of
60%. Revenue from the sales of SWU was US$145.9 million,
compared to US$404.3 million in the second quarter of 2006.  The
US$258.4 million decline reflects a 65% decrease in volume of
SWU sold and a 3%  increase in average prices billed to
customers.  Uranium revenue was US$16.2 million compared to
US$71.0 million last year, reflecting a limited number of
deliveries this year.  Revenue from the U.S. government
contracts segment was US$49.0 million, nearly unchanged from the
prior year.

         Cost of Sales, Gross Profit Margin and Expenses

Cost of sales for the six-month period for SWU and uranium was
US$496.0 million, a decrease of US$134.2 million or 21% that
reflects lower SWU sales volume and higher SWU and uranium unit
costs.

The gross profit for the first six months of 2007 was
US$100.9 million, a decline of US$70.7 million or 41% over the
same period in 2006.  For the second quarter, the gross profit
was US$27.7 million compared to US$79.6 million in the same
quarter last year.  The gross profit margin for the six-month
period and quarter were 14.9% and 13.1%, respectively, compared
to 19.4% and 15.2% in the same periods last year.

Selling, general and administrative (SG&A) expenses totaled
US$24.0 million in the six-month period, a decrease of US$1.8
million over the same period of 2006.  The decrease was due to a
reversal of an accrued tax penalty and reduced consulting
expense, partially offset by higher compensation expenses
resulting from the impact of increases in the company's stock
price on incentive compensation plans.

Advanced technology expenses, primarily related to the
demonstration of the American Centrifuge technology, were
US$69.3 million in the first half of 2007, an increase of
US$22.2 million compared to the same period of 2006.  The higher
spending reflects work to prepare for Lead Cascade operations
this summer.  Spending by NAC on its spent fuel storage
technology is included in the total and was less than US$1
million in both periods.  In addition, US$31.5 million in
spending related to the commercial American Centrifuge Plant was
capitalized in the six-month period, compared to US$11.7 million
capitalized in the first half of 2006.

                            Cash Flow

At June 30, 2007, USEC had a cash balance of US$48.3 million,
compared to US$171.4 million at Dec. 31, 2006, and US$238.6
million at March 31, 2007.  Cash used by operations in the first
six months of 2007 was US$82.8 million, compared to cash flow
from operations of US$39.7 million in the corresponding period
in 2006.  The US$122.5 million difference was primarily due to a
net inventory increase of US$190.9 million in the six months
ended June 30, 2007, that was a result of higher production and
lower sales.  The increased inventory level was planned to meet
delivery obligations to customers in the second half of 2007.

Capital expenditures totaled US$37.4 million for the six-month
period, compared to US$16.1 million for the corresponding period
of 2006.  The majority of capital expenditures were related to
the American Centrifuge project.

                   TVA Electric Power Contract

During the second quarter, USEC reached a new five-year pricing
agreement with the Tennessee Valley Authority (TVA), which
supplies most of the power for the Paducah plant.  Although the
new contract provides USEC with a predictable and reliable
source of power for the production plant, it maintains the
roughly 50% increase in the company's power costs that took
effect in June 2006.  Cost of sales increased during the first
half of the year and will continue to increase during 2007 as a
result of higher electricity prices since June 2006 to power the
Paducah plant.  The impact of this increase is being realized
over time due to the monthly moving average inventory
methodology and higher power prices will put significant
pressure on gross profit margin this year and beyond.

At June 30, 2007, the company's consolidated balance sheet
showed US$1.85 billion in total assets, US$861.3 million in
total liabilities, and US$989.4 million in total stockholders'
equity.

                         About USEC Inc.

Headquartered in Bethesda, Maryland, USEC, Inc. (NYSE: USU) --
http://www.usec.com/-- is a global supplier of low enriched
uranium to nuclear power plants and is the exclusive executive
agent for the U.S. Government under the Megatons to Megawatts
program with Russia.

                          *     *     *

As reported in the Troubled Company Reporter on April 13, 2007,
Moody's Investors Service downgraded USEC Inc.'s corporate
family rating to B3 from B1 and downgraded the rating on the
company's senior unsecured debt to Caa2 from B3.  The rating
outlook is negative.  This concludes Moody's review of USEC,
which was placed under review for possible downgrade on Feb. 15,
2007.


VALDAY LLC: Court Names A. Boravchenkov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Novgorod appointed A. Boravchenkov as
Insolvency Manager for LLC Valday.  He can be reached at:

         A. Boravchenkov
         Post User Box 131
         191119 St. Petersburg
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case
No. A44-842/2006-4k.

The Debtor can be reached at:

         LLC Valday
         Kirpichnaya Str. 20
         Novyj Poselok
         Moshenskiy
         Novgorod
         Russia


VORKUTINSKIY BREWERY: Asset Sale Slated for August 21
-----------------------------------------------------
CJSC Birzha Sankt-Peterburg, the bidding organizer for OJSC
Vorkutinskiy Brewery, will open a public auction for the
company's properties at 11:00 a.m. on Aut. 21 at:

         CJSC Birzha Sankt-Peterburg
         26th Liniya 15
         V. O.
         St. Petersburg
         Russia


Interested participants have until Aug. 20 to deposit an amount
to:

         CJSC Birzha Sankt-Peterburg
         Settlement Account 40702810948000001909
         Correspondent Account 30101810900000000790
         BIK 044030790
         Gavanskoe Department
         OJSC Bank Sankt-Pereburg
         Branch Ivestrbank
         Russia

Bidding documents must be submitted to:

         OJSC Vorkutinskiy Brewery
         Promeshlennoj Industrii Str. 3-A
         169900 Vorkuta
         Russia

The Debtor can be reached at:

         OJSC Vorkutinskiy Brewery
         Promeshlennoj Industrii Str. 3-A
         169900 Vorkuta
         Russia


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


PETROPLUS HOLDINGS: Acquisition News Cues S&P to Hold BB Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit ratings on Switzerland-based crude oil refiner
Petroplus Holdings AG.  At the same time, the 'BB-' debt ratings
on the US$1.2 billion senior unsecured high-yield notes issued
by Petroplus Finance Ltd. (Bermuda) and guaranteed by Petroplus
were also affirmed.  S&P said the outlook is stable.

"The affirmation follows the company's announcement that it
intends to acquire two French refineries from Shell Petroleum
Co. Ltd. (AA/Stable/A-1+) for US$875 million, mainly debt
financed," said Standard & Poor's credit analyst Per Karlsson.

S&P's affirmation reflects the fact that initial debt leverage
is in line with the group policy of approximately 40% debt
leverage (defined as net debt to net debt plus equity); S&P also
factored in that financial headroom will be restored from free
cash flow generation during 2007 and 2008.

"We expect the refining environment will remain favorable in the
near term, which should allow adequate free cash flow generation
to the extent that headroom can be restored below management's
debt leverage target of 40%," added Mr. Karlsson.

Under the current favorable refining margin conditions, this
should result in funds from operations-to-debt ratios of about
40%, which could drop to roughly 25% when using Standard &
Poor's 2001-2005 margin assumptions.

No rating upside is expected in light of the company's limited
track record, acquisitive strategies, and high sensitivity in
case of a lower refining margin environment.  Downward pressure
on the ratings could arise in case of further near-term debt-
financed acquisitions or absence of adequate free cash flow
generation.  An unexpected material weakening of the refining-
margin outlook -- currently not expected -- could also result in
rating pressure.


PETROPLUS FINANCE: S&P Rates US$1.2 Bln. High-Yield Notes at BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit ratings on Switzerland-based crude oil refiner
Petroplus Holdings AG.  At the same time, the 'BB-' debt ratings
on the US$1.2 billion senior unsecured high-yield notes issued
by Petroplus Finance Ltd. (Bermuda) and guaranteed by Petroplus
were also affirmed.  The outlook is stable.

"The affirmation follows the company's announcement that it
intends to acquire two French refineries from Shell Petroleum
Co. Ltd. (AA/Stable/A-1+) for US$875 million, mainly debt
financed," said Standard & Poor's credit analyst Per Karlsson.

S&P's affirmation reflects the fact that initial debt leverage
is in line with the group policy of approximately 40% debt
leverage (defined as net debt to net debt plus equity); S&P also
factored in that financial headroom will be restored from free
cash flow generation during 2007 and 2008.

"We expect the refining environment will remain favorable in the
near term, which should allow adequate free cash flow generation
to the extent that headroom can be restored below management's
debt leverage target of 40%," added Mr. Karlsson.

Under the current favorable refining margin conditions, this
should result in funds from operations-to-debt ratios of about
40%, which could drop to roughly 25% when using Standard &
Poor's 2001-2005 margin assumptions.

No rating upside is expected in light of the company's limited
track record, acquisitive strategies, and high sensitivity in
case of a lower refining margin environment.  Downward pressure
on the ratings could arise in case of further near-term debt-
financed acquisitions or absence of adequate free cash flow
generation.  An unexpected material weakening of the refining-
margin outlook -- currently not expected -- could also result in
rating pressure.


===========
T U R K E Y
===========


YAPI VE KREDI: Fitch Rates IDR at BB with Stable Outlook
--------------------------------------------------------
Fitch Ratings has affirmed the ratings for Yapi ve Kredi Bankasi
at Long-term foreign currency Issuer Default Rating 'BB', Short-
term IDR 'B', LT local currency IDR 'BB+', ST local currency IDR
'B', National LT 'AA+(tur)', Individual 'D' and Support '3'.
The Outlook on the LT IDRs and National Ratings is Stable.  The
LT foreign currency IDR is constrained by Turkey's 'BB' Country
Ceiling and the LT local currency IDR is rated two notches
higher than the Sovereign Rating due to potential shareholder
support.

The LT IDRs, National LT and Support ratings of YKB reflect its
80.3%-ownership by Koc Financial Services, a 50-50 joint venture
between Bank Austria Creditanstalt AG (rated 'A'/'F1'), a
subsidiary of UniCredito Italiano (rated 'A+'/'F1') and Koc
Holding.  The Individual rating indicates its strong credit card
franchise, improved profitability and better risk management.
These are balanced by weak capitalization and asset quality and
a structural maturity mismatch.

Since gaining control of YKB in September 2005 and merging it
with Kocbank in October 2006, KFS implemented UniCredito's risk
management systems and continued to sell non-core assets.
Significant pre-merger impairment charges were taken at YKB in
fiscal year 2005 but not included in the restated financials,
which include YKB for only fourth quarter of 2005. Fiscal year
2006 was the first year that included 12 months of operations
for both banks.

Operating profits strengthened in 2006 and first quarter of 2007
due to robust fees and commissions, as well as a net interest
margin that was better than the peer average.  These offset high
impairment charges and a growing cost base.  Credit growth was
slower than its peers' in 2006 at 21.2% and the portfolio
diminished slightly in first quarter of 2007.  Asset quality is
weak with impaired loans (including watch list credits) rising
by 18% to 9.92% of outstandings at end-2006 (2005: 10.23%) with
reserve coverage of only 74% (based on IFRS financials).

Although improved from the pre-merger financial stress period,
YKB's Tier 1 and Eligible Capital Ratios were thin at 7.5% and
8.5%, respectively, at end-2006.  Management anticipates that
the bank's Tier 1 capital ratio will improve in 2007 through
retained earnings, non-core asset sales and the transfer of
financial subsidiaries from KFS.  The US$480 million prepayment
on the Cukurova exposure should provide capital relief.  The
implementation of Basel II was recently postponed until January
2009 but will have a negative impact on regulatory capital.  YKB
has actively issued subordinated debt (with a UniCredito
guarantee) to build total capital and offset the Basel II
impact.


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


AIST AND FA: Creditors Must File Claims by Aug. 8
-------------------------------------------------
Creditors of LLC Aist and Fa (code EDRPOU 24913219) have until
Aug. 8 to submit written proofs of claim to:

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

The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. 25/146/07.

The Debtor can be reached at:

         LLC Aist and Fa
         Ruban Str. 27
         69124 Zaporozhje
         Ukraine


DIONA LLC: Creditors Must File Claims by Aug. 8
-----------------------------------------------
Creditors of LLC Diona (code EDRPOU 30619430) have until
Aug. 8 to submit written proofs of claim to:

         Vladlen Gvozdetsky
         Liquidator
         Frunze Str. 8
         49038 Dnipropetrovsk
         Ukraine

The Economic Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent.
The case is docketed under Case No. B 15/40/82-07.

The Court is located at:

         The Economic Court of Dnipropetrovsk
         Kujbishev Str. 1a
         49600 Dnipropetrovsk
         Ukraine

The Debtor can be reached at:

          LLC Diona
          Stoliarov Str. 10
          49000 Dnipropetrovsk
          Ukraine


FRUTIS LAND: Creditors Must File Claims by Aug. 8
-------------------------------------------------
Creditors of LLC Frutis Land (code EDRPOU 34412660) have until
Aug. 8 to submit written proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 15/398-b.

The Debtor can be reached at:

         LLC Frutis Land
         P. Lumumba Str. 15-A
         Kiev
         Ukraine


GERMES-TRUST LLC: Creditors Must File Claims by Aug. 8
------------------------------------------------------
Creditors of LLC Germes-Trust (code EDRPOU 32288320) have until
Aug. 8 to submit written proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 15/400-b.

The Debtor can be reached at:

         LLC Germes-Trust
         Predslavinskaya Str. 34-b
         Kiev
         Ukraine


IRINA AND K: Creditors Must File Claims by Aug. 8
-------------------------------------------------
Creditors of LLC Joint Ukrainian-Belorussian Enterprise Irina
and K have until Aug. 8 to submit written proofs of claim to:

         Oleg Stupak
         Liquidator
         Apartment 82
         Shevchenko Str. 102
         10024 Zhytomir
         Ukraine

The Economic Court of Zhytomir commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 4/232-b.

The Court is located at:

         The Economic Court of Zhytomir
         Putiatinskiy Square 3/65
         10014 Zhytomir
         Ukraine

The Debtor can be reached at:

         LLC Joint Ukrainian-Belorussian Enterprise Irina and K
         Balzakovskaya Str. 12 Apartment 65
         Zhytomir
         Ukraine


KHADZHYBEYEVSKOE OJSC: Creditors Must File Claims by Aug. 8
-----------------------------------------------------------
Creditors of OJSC Khadzhybeyevskoe (code EDRPOU 00855270) have
until Aug. 8 to submit written proofs of claim to:

         The Economic Court of Odessa
         Shevchenko Avenue 4
         65032 Odessa
         Ukraine

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 32/127-07-4376.

The Debtor can be reached at:

         OJSC Khadzhybeyevskoe
         Burdovka
         Rozdolniansky District
         Odessa
         Ukraine


ODESSABUILDING OJSC: Proofs of Claim Filing Deadline Set Aug. 8
---------------------------------------------------------------
Creditors of OJSC Odessabuilding (code EDRPOU 01271988) have
until Aug. 8 to submit written proofs of claim to:

         The Economic Court of Odessa
         Shevchenko Avenue 4
         65032 Odessa
         Ukraine

The Economic Court of Odessa commenced bankruptcy supervision
procedure on the company on June 18.  The case is docketed under
Case No. 24/140-05-5498.

The Debtor can be reached at:

         OJSC Odessabuilding
         Tserkovnaya Str. 29
         Odessa
         Ukraine


ORYSCHI LLC: Creditors Must File Claims by Aug. 8
-------------------------------------------------
Creditors of LLC Oryschi (code EDRPOU 20131017) have until
Aug. 8 to submit written proofs of claim to:

         The Economic Court of Volin
         Volia Avenue 54-a
         43010 Lutsk
         Volin
         Ukraine

The Economic Court of Volin commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 4/86-B.

The Debtor can be reached at:

         LLC Oryschi
         Oryschi
         Ivanichevsky District
         Volin
         Ukraine


TRADE-ZAPOROZHJE: Creditors Must File Claims by Aug. 8
------------------------------------------------------
The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. 25/147/07.

Creditors of LLC Industrial Trade-Zaporozhje have until Aug. 8
to submit written proofs of claim to:

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

The Debtor can be reached at:

         LLC Industrial Trade-Zaporozhje
         Istomin Str. 15
         69089 Zaporozhje
         Ukraine


UKRAINE LLC: Creditors Must File Claims by Aug. 8
-------------------------------------------------
Creditors of Agricultural LLC Ukraine (code EDRPOU 31883144)
have until Aug. 8 to submit written proofs of claim to:

         Stalina Ratinskaya
         Sadovaya Str. 1-a
         54001 Nikolaev
         Ukraine

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 2/439/07.

The Court is located at:

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

The Debtor can be reached at:

         Agricultural LLC Ukraine
         Nikolaevka
         Bratsky District
         Nikolaev
         Ukraine


VELSOFT LLC: Creditors Must File Claims by Aug. 8
-------------------------------------------------
Creditors of LLC Velsoft (code EDRPOU 34440991) have until
Aug. 8 to submit written proofs of claim to:

         Vitaly Mishchenko
         Liquidator
         Apartment 62
         40 Years of Soviet Ukraine Str. 45-B
         69037 Zaporozhje
         Ukraine

The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. 21/132/07.

The Court is located at:

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

The Debtor can be reached at:

         LLC Velsoft
         Apartment 93
         Mikhaylov Str. 13
         69015 Zaporozhje
         Ukraine


VYSHNIVCHIK AGRICULTURAL: Creditors Must File Claims by Aug. 8
--------------------------------------------------------------
Creditors of Vyshnivchik Agricultural LLC have until Aug. 8 to
submit written proofs of claim to:

         Irina Gerasimenko
         Liquidator
         Apartment 63
         Mir Str. 8
         Kamianets-Podolsky
         32300 Hmelnitsky
         Ukraine

The Economic Court of Hmelnitskij commenced bankruptcy
proceedings against the company after finding it insolvent.

The Court is located at:

         The Economic Court of Hmelnitskiy
         Nezalezhnosti Square 1
         29000 Hmelnitskiy
         Ukraine

The Debtor can be reached at:

         Vyshnivchik Agricultural LLC
         Vyshnivchik
         Tchemerovetsky District
         Hmelnitskiy
         Ukraine


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


ALLIANCE BOOTS: Banks Defers Sale of Second-Lien Loans
------------------------------------------------------
Banks financing Kohlberg Kravis Roberts & Co.'s GBP11 billion
leveraged buyout of Alliance Boots Plc have postponed the sale
of a GBP1 billion second-lien loan, various reports say.

"The second lien is on hold.  We have a bunch of orders but it
is not fair to allocate it until market conditions stabilize," a
banker familiar with the deal told Reuters.

As reported in the TCR-Europe on July 30, 2007, the banks --
Deutsche Bank AG, JPMorgan Chase & Co., UniCredit S.p.A. and
three other financial institutions -- deferred the sale of a
GBP5.05 billion senior loan tranche because of market turbulence
caused by problems in the U.S. sub-prime mortgage market.
According to the Wall Street Journal, the banks had pitched
investors a number of sweeteners, including higher interest
payments, but failed to secure a deal.

Following the cancellation, the banks will continue to try
selling the third tranche -- a GBP750 million in mezzanine debt
at 95% of face value with 650 basis points interest margin.

"The mezzanine tranche has lots of orders and we will continue
to work it.  It is almost done and we will finish it off through
August although we have no set deadline," a banker close to the
deal said.

A spokesman for Alliance Boots told WSJ that the postponement of
the second-lien loans doesn't affect its financial situation
position.

Reuters notes that the postponement does not affect KKR's
takeover or Alliance Boots directly, since the U.K. firm has
been delisted and the initial funding had already been raised.

Headquartered in London, United Kingdom, Alliance Boots Plc --
http://www.allianceboots.com/-- operates as a high street
retailer, pharmacist and pharmaceuticals wholesaler.

The company operates in the U.K., Norway, The Netherlands,
Ireland, Italy Switzerland, Czech Republic, France, Russia,
Spain, Germany and Thailand.

                            *   *   *

As reported in the TCR-Europe on July 19, 2007, Moody's
Investors Service downgraded the long term unsecured rating of
Alliance Boots plc to B2 from Baa2.  The rating remains on
review for possible downgrade, where it was placed on March 13,
2007.  A Corporate Family Rating for Alliance Boots has been
assigned at B1 and is also on review for possible downgrade.

The TCR-Europe reported on July 10, 2007, that Standard & Poor's
Ratings Services lowered its long-term corporate credit rating
on Alliance Boots PLC to 'BB-' from 'BBB', reflecting a dramatic
change of financial structure for the expanded group.

The ratings remain on CreditWatch with negative implications
where they were placed on March 12, 2007, following the
announcement that Kohlberg Kravis Roberts & Co., a private-
equity firm, and Stefano Pessina, the executive deputy chairman
of Alliance Boots, had made a friendly approach to buy the
group.


BAA LTD: Ferrovial to Complete Refinancing by Year-End
------------------------------------------------------
Grupo Ferrovial SA, the owner of BAA Ltd. (fka BAA plc), is
unlikely to refinance its GBP9 billion debt used to acquire the
British airports operator in June 2006 after yields on the bonds
have widened as credit markets crashed, Josephine Moulds writes
for The Telegraph, citing traders.

According to the report, the situation has been worsened by
relentless negative publicity about Heathrow airport.

Ferrovial failed to refinance the existing GBP4.5 billion debt
"shortly after the acquisition" as it promised during the
takeover process despite the benign credit markets at that time,
The Telegraph relates.

"They've waited so long now that there is some doubt in the
market that the refinancing will get done," a bondholder told
The Telegraph.

However, Nicolas Villen, Ferrovial's finance director, said the
refinancing is "making progress, slowly but surely."

Mr. Villen expects to close the refinancing before the end of
the year, Reuters says.

As previously reported in the TCR-Europe on Aug. 2, 2007,
Ferrovial is considering selling BAA's World Duty Free franchise
to help pay down the debt.

                     Financial Performance

Ferrovial attained a sizeable increase in all income statement
line items in the first half of 2007, basically as a result of
integrating airport manager BAA, which has helped transform the
company's profile.

Net profit in the first half of 2007 amounted to EUR756 million,
219% more than in the same period of 2006.  This rapid growth
was underpinned by recurring businesses and enhanced by capital
gains on the sale of Sydney and Budapest airports.

EBITDA increased by 132.1% to EUR1.5 billion.  About 80% of
EBITDA was obtained in other countries, with only 20% coming
from activities in Spain.  The U.K. is Ferrovial's second
"domestic" market, having contributed 59% of EBITDA in the first
half.  BAA contributed EUR767.7 million in EBITDA, 52% of the
total.

EBIT amounted to EUR916.8 million, a 112.4% increase.

Net sales totaled EUR7.1 billion, 44.8% more, due to BAA's
contribution of EUR1.9 billion.  Revenues increased by 23.8% in
Toll Roads and Car Parks, 9.7% in Services and 3.5% in
Construction.  The latter area is still the Group's largest
source of revenues -- EUR2.5 billion in the first half.

                           About BAA

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

In June 2006, BAA was bought by a consortium led by Grupo
Ferrovial SA, the Spanish construction company.  Ferrovial is
one of the world's leading construction groups, specializing in
four strategic lines of business - airports, construction,
transport infrastructure and services - throughout Spain, the
U.K., Portugal and nine other countries in Europe and the rest
of the world. The company has around 89,000 employees and a net
revenue of EUR12.4 billion.

                           *   *   *

As of July 20, 2007, BAA Ltd. (fka BAA plc) carries an issuer
rating of Ba1 from Moody's.


BALLY TOTAL: Moody's Withdraws Ratings After Bankruptcy Filing
--------------------------------------------------------------
Moody's Investors Service withdrew all the credit ratings of
Bally Total Fitness Holding Corporation after the announcement
that Bally commenced voluntary reorganization proceedings under
Chapter 11 of the U.S. Bankruptcy Code.  The proceedings seek to
confirm a "prepackaged" plan of reorganization the company's
bondholders have voted to support.

Moody's withdrew these ratings:

   -- US$235 million 10.5% senior unsecured notes (guaranteed)
      due 2011, Ca (LGD4, 51%)

   -- US$300 million 9.875% senior subordinated notes due 2007,
      C (LGD5, 88%)

   -- Corporate family rating, Ca

   -- Probability of default rating, D

Bally is among the largest commercial operators of fitness
centers in the U.S., with over 375 facilities located in 26
states, Mexico, Korea, China, the United Kingdom, and the
Caribbean under the Bally Total Fitness and Bally Sports Clubs
brands.


BAXALL LTD: Brings In Joint Administrators from KPMG
----------------------------------------------------
Paul Andrew Flint and Brian Green of KPMG LLP were appointed
joint administrators of Baxall Ltd. (Company Number 2733875) on
July 19.

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

The company can be reached at:

         Baxall Ltd.
         Unit 1 Castlehill
         Horsfield Way
         Bredbury
         Stockport
         SK6 2SU
         England
         Tel: 0161 406 6611
         Fax: 0161 406 8828


BOMFORDS LTD: Administrators Complete Business & Assets Sale
------------------------------------------------------------
The joint administrators of Bomfords Ltd., Dominic Wong, Andrew
Peters and David Langton of Deloitte, disclosed that the sale of
the business and assets was completed on July 31, 2007.

The farming business, including the pack house at Salford
Priors, was sold as a going concern to Sandfields Farms Limited,
and the pack house at Atherstone was sold as a going concern to
The Veg Table Limited, part of the Wealmoor Group, for an
undisclosed amount.

The joint administrators were appointed over MBN Bomford
Limited, Bomfords Limited and W Bailey Limited on June 22, 2007.
Since then, Deloitte's Reorganization Services team has
continued to trade the business while negotiations for a sale
were conducted.

"We are pleased to announce that these transactions will
safeguard at least 1350 jobs.  Customers, suppliers and
employees of the companies have been extremely supportive during
the period of administration trading.  This successful outcome
is a testament to the hard work of the workforce and our team
under very difficult circumstances," said Mr. Wong, who is also
a partner in Deloitte's Birmingham office.

"Unfortunately, a purchaser could not be found for the business
of W Bailey Limited despite extensive marketing.  As a result,
this business is in the process of being wound down," Mr. Wong
added.

"This was one of the most complex and demanding insolvency
assignments we have dealt with in recent years, which involved
balancing the interests of several stakeholders and maintaining
the confidence of the company's major supermarket customers and
its U.K. and overseas supply chain.  I am delighted that after 6
weeks, we have managed to find a solution that safeguards the
majority of the business and preserves most of the jobs," Joint
Administrator Andrew Peters commented

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


BRITISH AIRWAYS: Earns GBP269 Mln in Three Months Ended June 30
---------------------------------------------------------------
British Airways plc released unaudited financial results for the
three months ended June 30, 2007.

BA reported net profit of GBP269 million for the three months
ended June 30, 2007, compared with net profit of GBP154 million
for the three months ended June 30, 2006.

For the three months ended June 30, 2007, BA recorded operating
profit of GBP263 million, compared with GBP206 million for the
same period last year.  The operating margin for the quarter was
12%, compared with 9.2% in the prior year.

Revenue of the company for the three months ended June 30, 2007
was GBP2.19 billion, compared with revenue of GBP2.24 billion
for the same quarter in 2006.

Revenue excluding exchange was flat.

Passenger revenue fell to GBP1.9 billion on a flying program 0.3
percent bigger measured in available-seat-kilometers.  Traffic
measured in revenue-passenger-kilometers fell by 1.9 percent
delivering seat factors down to 76.8 percent.  Yields were flat
year on year with price and mix benefits offset by exchange.

Demand for First and Club World remains strong and traffic was
up 0.1 percent despite a very strong performance in the same
period last year and the impact of the baggage and security
restrictions on premium transfer traffic.  However, traffic in
non-premium cabins fell in the quarter by 2.3 percent driven by
the North Atlantic and domestic routes where the increase in air
passenger duty tax has dampened demand most significantly. The
weakness of the dollar has also affected our US business.

Cargo revenue fell to GBP146 million due to exchange, reductions
in capacity of 5.2 percent and operational disruptions.

Cost performance of BA was strong and benefited from the weak US
dollar.  Employee costs fell by 8.3% to GBP542 million largely
because of the changes to the NAPS pension scheme and severance
costs, which together were some GBP50 million lower than last
year.  Fuel fell 5.2 percent to GBP473 million mainly because of
favorable exchange.  Selling costs were down GBP15 million in
the quarter due to lower agency commissions and passenger
numbers.  Unit costs in the period were down 3.9 percent on an
ATK reduction of 1.6 per cent.

The profit before tax of GBP289 million benefited from financing
income from pensions following the company's one-off
contribution to the pension scheme and a reduction in provisions
for aircraft end of lease guarantees.

The financial position of the company remains strong.  This is
reflected by the Standard and Poors upgrade of the company's
credit rating to investment grade that will support its
investment program

At June 30, 2007, BA had net assets of GBP2.7 billion and net
debt of GBP1.2 billion.

"These are very good results despite operational difficulties at
Heathrow," British Airways CEO Willie Walsh said.  "Profits are
up as a result of the steps we took last year to control costs
and strengthen our business."

"Revenue is flat before exchange and reflects the continued
impact of security and baggage restrictions on short-haul and
premium transfer traffic, which Heathrow has been struggling to
cope with.  We appreciate how frustrating this has been for our
customers and I am pleased the Government has also recognized
this and set up a working group to see how quickly the
restrictions on hand baggage can be eased.  In order for the
Government to remove the restrictions, the BAA must recruit
additional personnel and invest in the right equipment so we can
get back to offering good customer service," Mr. Walsh
continued.

"In the meantime we have taken all available steps to minimize
inconvenience to our customers and have increased manpower
levels in the terminals at Heathrow to an all time high.  The
opening of Terminal 5 is now just 236 days away and on Sept. 17
BAA hands over the terminal to us.  Trials with staff and 2,000
members of the public on all aspects of the new facility start
in November," Mr. Walsh added.

"I am delighted that ahead of our move we have agreed working
practice changes with all our Heathrow customer service and
operational staff and a two year pay deal with all our trade
union groups which takes us through to 2009," Mr. Walsh
concluded.

Trading Outlook

As the Heathrow terminals continue to operate above capacity
this will affect the ability of BA to recover quickly from any
unexpected events.  Combined with the continued weakness of the
US dollar, the company's revenue guidance is reduced by 1
percent to around 4 percent to reflect these risks.

The company's revised cost guidance year-on-year is flat,
excluding fuel, reflecting both expected exchange benefits from
the weaker dollar and strong performance in the first quarter.

Fuel costs are now expected to be up GBP120 million on last
year, GBP20 million worse than its previous guidance.

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular

British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                            *   *   *

In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the existing non-financial speculative-grade corporate
issuers in Europe, Middle East and Africa, Moody's Investors
Service's confirmed its Ba1 Corporate Family Rating for British
Airways Plc.

Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.

* Issuer: British Airways, Plc

                                                      Projected
                           Old      New      LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   GBP100-million 10.875%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2008                Ba2      Ba2      LGD5     84%

   GBP250-million 7.25%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2016                Ba2      Ba2      LGD5     84%


BRITISH AIRWAYS: Named Worst Performing Major Airline by AEA
------------------------------------------------------------
British Airways plc is the worst performing major European
operator with passengers more likely to experience flight
delays, BBC News says, citing a report by the Association of
European Airlines.

According to the report, in the three months between April and
June 2007, 35.7% of BA's short or medium haul flights did not
arrive on time and 32.7% departed later than scheduled, while
44% of its long haul flights did not arrive on time and 36.6%
departed later than scheduled.

In terms of baggage handling performance, the report revealed
that for every 1000 travelers, 28 bags were held up by the
carrier within the period, BBC relates.

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates international and
domestic scheduled and charter air services for the conveyance
of passengers, freight and mail, and provides ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular

British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                            *   *   *

In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the existing non-financial speculative-grade corporate
issuers in Europe, Middle East and Africa, Moody's Investors
Service's confirmed its Ba1 Corporate Family Rating for British
Airways Plc.

Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.

* Issuer: British Airways, Plc

                                                      Projected
                           Old      New      LGD      Loss-iven
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   GBP100-million 10.875%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2008                Ba2      Ba2      LGD5     84%

   GBP250-million 7.25%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2016                Ba2      Ba2      LGD5     84%


CHANGE UK: Creditors' Meeting Slated for August 10
--------------------------------------------------
Creditors of Change U.K. Ltd. (Company Number 05021797) will
meet at 11:00 a.m. on Aug. 10 at:

         MWB Business Exchange
         60 Cannon Street
         London
         EC4N 6JP
         England

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims at noon on Aug. 9 at:

         S. R. Thomas
         Joint Administrator
         Begbies Traynor (South) LLP
         32 Cornhill
         London
         EC3V 3BT
         England

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


DD HOME: Appoints KPMG LLP as Joint Administrators
--------------------------------------------------
Chris Laverty and Myles Halley of KPMG LLP were appointed joint
administrators of DD Home Entertainment Ltd. (Company Number
04423880) on July 26.

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

Headquartered in London, England, DD Home Entertainment Ltd. --
http://www.ddhe.co.uk/-- is engaged in motion picture and video
distribution services.


DECO 2005-UK: Interest Shortfall Cues S&P to Cut Rating to D
------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its rating on the
class E notes issued by DECO Series 2005-UK Conduit 1 PLC to 'D'
from 'CCC'.  The class D notes in this transaction remain on
CreditWatch with negative implications.  At the same time, the
ratings on the class A, B, and C notes were affirmed.

The rating action follows an interest shortfall to the class E
notes at the July interest payment date.  This shortfall
occurred because of the reduction in liquidity drawings
available to cover interest on the Kashani loan, thus directly
reducing the interest available to pay the class E noteholders.

The amount available was reduced due to the triggering of the
appraisal reduction mechanism associated with the decrease in
value of the Kashani assets.

The Kashani loan (which represented 1.4% of the outstanding pool
balance at the April 2007 IPD) was transferred to special
servicing on Dec. 5, 2006, following the nonpayment of interest
and principal at the October 2006 IPD.

The CreditWatch negative placement on the class D notes reflects
Standard & Poor's overall concern with possible interest
shortfalls in this transaction, and the class D notes' increased
exposure to possible adverse developments associated with the
Kashani loan, following the triggering of the appraisal
reduction mechanism.

                         Ratings List

DECO Series 2005-UK Conduit 1 PLC
   GBP236.057 Million Commercial Mortgage-Backed Floating-Rate
   Notes

           Class              Ratings
                      To                   From

                         Rating Lowered

           E          D                    CCC

   Rating Remaining On CreditWatch With Negative Implications

           D          BBB/Watch Neg

                        Ratings Affirmed

           A          AAA
           B          AA
           C          A


DEDICATE TRADING: C. B. Barrett Leads Liquidation Procedure
-----------------------------------------------------------
C. B. Barrett of Tenon Recovery was appointed liquidator of
Dedicate Trading Ltd. on July 25 for the creditors' voluntary
winding-up procedure.

The liquidator can be reached at:

         Tenon Recovery
         Clive House
         Clive Street
         Bolton
         BL1 1ET
         England


DEVON CIDER: Appoints Administrators from Smith & Williamson
------------------------------------------------------------
Anthony Murphy and Robert Horton of Smith & Williamson Ltd. were
appointed joint administrators of The Devon Cider Co. Ltd.
(Company Number 03694018) on July 23.

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

The company can be reached at:

         The Devon Cider Co. Ltd.
         North Park
         North Tawton
         EX20 2EB
         England
         Fax: 01837 828 40


DIGITAL POS: Joint Liquidators Take Over Operations
---------------------------------------------------
Stephen Robert Cork of Smith & Williamson Ltd. and Malcolm Cohen
of BDO Stoy Hayward LLP were appointed joint liquidators of
Digital Pos Ltd. (formerly Watford Electronics Ltd.) on July 25
for the creditors' voluntary winding-up proceeding.

Mr. Cork can be reached at:

         Smith & Williamson Ltd.
         Prospect House
         2 Athenaeum Road
         London
         N20 9YU
         England

Mr. Cohen can be reached at:

         BDO Stoy Hayward LLP
         8 Baker Street
         London
         W1U 3LL
         England


FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site
----------------------------------------------------------------
Freescale Semiconductor Inc. has acquired the service of real
estate adviser Collier International to help sell its East
Kilbride manufacturing site, The Scotsman reports.

As reported in the TCR-Europe on July 18, 2007, Freescale is
looking for a buyer for its East Kilbride factory in the United
Kingdom and has already informed the site's around 900 employees
of the sale plan.

The Scotsman notes that many electronics firms are transferring
to countries with lower overheads, which makes the hunt for East
Kilbride site's buyer more difficult.

Freescale is reportedly shifting its production to Texas,
U.S.A., but could retain a research and development operation at
East Kilbride, The Scotsman adds.

                         About Freescale

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


                            *   *   *

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


GETTY IMAGES: Earns US$33.7 Million in Quarter Ended June 30
------------------------------------------------------------
Getty Images Inc. reported net income of US$33.7 million for the
second quarter ended June 30, 2007, compared to net income of
US$23.2 million for the same period in 2006.  Results for the
second quarter of 2006 included a total of US$14.1 million after
taxes for a restructuring charge and a loss on the sale of
short-term investments.  Excluding these items, net income for
the second quarter of 2006 was US$37.3 million or US$0.59 per
diluted share.

"Soon after we founded Getty Images in 1995, we recognized that
the breadth of creators and users of digital imagery would
expand.  This trend continues and we remain the leader in all
areas and categories of the visual content industry from
traditional stock photography to microstock.  Furthermore, we
are extending our leadership position in editorial imagery,
footage and our imagery-related products and services, all of
which have excellent growth potential," said Jonathan Klein, co-
founder and chief executive officer.  "We are making wonderful
strides with some of our newer businesses, including commercial
music licensing and the opportunity for growth in the consumer
market while remaining focused on stabilizing our traditional
creative stills business."

The company disclosed that revenue increased 6.5 percent to
US$218.0 million from US$204.6 million in the second quarter of
2006.  Excluding the effects of changes in currency exchange
rates, revenue grew 2.4 percent.  Growth in almost all areas of
the business was partly offset by a decline in traditional
creative stills imagery revenue.

As a percentage of revenue, cost of revenue was 26.7 percent,
compared to 24.8 percent in the prior year due primarily to
revenue growth in certain of the company's product lines with
average royalties that are higher than traditional creative
stills imagery, in particular in editorial and microstock
imagery.

Selling, general and administrative expenses (SG&A) totaled
US$84.1 million or 38.6 percent of revenue for the second
quarter of 2007, compared to US$77.9 million or 38.1 percent of
revenue in the second quarter of 2006.

Excluding US$1.3 million of non-recurring professional fees, the
effects of changes in currency exchange rates, and SG&A
associated with acquired companies, SG&A declined on a year over
year basis.

Income from operations was US$53.1 million or 24.4 percent of
revenue in the second quarter of 2007 compared to US$41.2
million in the second quarter of 2006.  Results for the second
quarter of 2006 included a restructuring charge of approximately
US$16.5 million.  Excluding this charge, income from operations
for the second quarter of 2006 was US$57.7 million, or 28.2
percent of revenue.

Cash balances were US$288.6 million at June 30, 2007.  Net cash
provided by operating activities during the second quarter of
2007 was US$48.8 million.  During the quarter, the company spent
a total of US$248 million for acquired businesses, of which
US$120 million was financed through the company's senior credit
facility and the remaining US$128 million paid from existing
cash balances.

                     Business Outlook

The following forward-looking statements reflect Getty Images'
expectations as of Aug. 1, 2007.  The company currently does not
intend to update these forward-looking statements until the next
quarterly results announcement.

The company has announced a restructuring and related reduction
in workforce of about 100 employees that will result in a charge
of approximately US$4.0 million in the third quarter of 2007 and
is expected to result in annualized savings of approximately
US$20 million in staff and staff related costs.  The company
continues to focus on managing costs effectively while investing
in the areas of the business that provide the best opportunities
for growth.

For the third quarter of 2007, the company expects revenue of
approximately US$210 million and diluted earnings per share of
US$0.43.  Excluding approximately US$0.04 for restructuring
costs, diluted earnings per share would be US$0.47.

For full year 2007, the company expects revenue of approximately
US$855 million and earnings per share of approximately US$2.18.
Excluding approximately US$0.04 for restructuring costs in the
third quarter of 2007, diluted earnings per share would be
US$2.22.

Guidance for 2007 assumes just over 60 million fully diluted
shares for both the third quarter and for the full year.


Headquartered in Seattle, Washington, Getty Images, Inc. --
http://corporate.gettyimages.com/-- creates and distributes
visual content.  The company has corporate offices in Australia,
the United Kingdom, and Argentina.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 18, 2007, Standard & Poor's Ratings Services said revised
its CreditWatch implications on Getty Images Inc. to positive
from developing, following the company's filing of its SEC 10-Q
forms for its first and third quarters, and its 2006 Form 10-K.
The corporate credit rating on the company remains at 'B+'.

As reported in the Troubled Company Reporter-Latin America on
March 30, 2007, Moody's Investors Service affirmed the Ba1
Corporate Family Rating and Ba2 rating on the USUS$265-million
of convertible subordinated debentures of Getty Images, Inc.
The rating outlook remains stable.

Moody's affirmed these ratings:

  -- US$265-million series B convertible subordinated notes
     due 2023, Ba2 (LGD 5, 77% from LGD 5, 71%);

  -- Corporate family rating, Ba1; and

  -- Probability of default rating, Ba1.


HILTON HOTELS: Reports US$165 Mil. Net Income in Second Quarter
---------------------------------------------------------------
Hilton Hotels Corporation Hilton has recorded second quarter
2007 net income of US$165 million compared with US$144 million
in the 2006 quarter.  Diluted net income per share was US$0.40
in the 2007 second quarter, versus US$0.35 in the 2006 quarter.
Excluding non-recurring items in both periods, diluted EPS
totaled US$0.38 per share in the 2007 quarter, a 19 percent
increase from US$0.32 per share in the 2006 quarter.

Net income from the Scandic hotel system, the sale of which was
disclosed on March 2, 2007, and completed on April 26, 2007, is
reflected as discontinued operations.

The company reported second quarter 2007 total operating income
of US$345 million (a 1 percent decrease from the 2006 quarter),
on total revenue of US$2.085 billion (a 4 percent increase from
US$2.005 billion in the 2006 quarter).  Total company earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA) were US$468 million, a decrease of 4 percent from US$489
million in the 2006 quarter.  Revenue, operating income and
Adjusted EBITDA growth in the quarter were impacted by asset
sales completed within the last twelve months.

                       Owned Hotel Results

Continued strong demand trends resulted in high single digit or
double digit ADR increases at many of the company's gateway
hotels around the world.  Business transient, group and leisure
segments all showed solid ADR gains.

Across all brands, revenue from the company's owned hotels
(majority owned and controlled hotels) was US$636 million in the
second quarter 2007, a 6 percent decrease from US$678 million in
the 2006 quarter.  Total owned hotel expenses declined 8 percent
in the quarter to US$435 million.  The decreases reflect the
sale of owned assets over the last year.

Comparable North America (N.A.) owned revenue and expenses
increased 8.5 percent and 4.3 percent, respectively.

RevPAR from comparable N.A. owned hotels increased 9.8 percent.
Comparable owned N.A. hotel occupancy increased 2.0 points to
82.0 percent, while ADR increased 7.1 percent to US$211.29.
Particularly strong RevPAR growth was reported at the company's
owned hotels in New York and San Francisco, while the Hawaii
market was soft during the quarter.  Comparable N.A. owned hotel
margins in the second quarter increased 270 basis points to 32.9
percent.

Comparatively lower renovation disruption activity at the Hilton
New York, the Waldorf=Astoria, and the Hilton Hawaiian Village
in the 2007 second quarter benefited comparable N.A. owned hotel
RevPAR and margin growth.

Comparable international owned revenue and expenses increased
9.3 percent and 7.7 percent, respectively. RevPAR from
international comparable owned hotels increased 9.4 percent.
Occupancy decreased 1.3 points to 73.0 percent, while ADR
increased 11.3 percent to US$162.35.  Particularly strong
results were reported in Barcelona, Zurich, Sydney and Sao
Paulo.

Adjusting for the impact of foreign exchange, RevPAR from
international comparable owned hotels increased 3.2 percent.
Comparable international owned margins improved 110 basis points
to 26.8 percent.

On a worldwide basis, comparable owned RevPAR increased 9.7
percent, with margins improving 230 basis points to 31.3
percent.  Excluding the impact of foreign exchange, worldwide
comparable owned RevPAR increased 8.2 percent.

                          Leased Hotels

Revenue from leased hotels was US$530 million in the second
quarter 2007 compared to US$476 million in the 2006 quarter,
while leased expenses (including rents) were US$459 million in
the current quarter versus US$415 million last year.  The
EBITDAR-to-rent coverage ratio was 1.6 times in the quarter.
Leased results exclude hotels that have been classified as
discontinued operations in connection with the Scandic sale.

Comparable leased revenue increased 12.0 percent, leased
expenses increased 10.7 percent and margins increased 100 basis
points to 13.6 percent.  RevPAR from comparable leased
properties increased 14.6 percent.  Adjusting for the impact of
foreign exchange, RevPAR from comparable leased hotels increased
9.3 percent, reflective of business strength in the U.K.
(primarily London) and continental Europe.

                      Hilton Grand Vacations

Hilton Grand Vacations Company (HGVC), the company's vacation
ownership business, reported a 21 percent decline in
profitability in the second quarter, due to percentage-of-
completion accounting associated with new projects.  Revenue and
expenses associated with projects in development are deferred to
correspond with the pace of construction.  Unit sales declined 9
percent, however average unit sales prices increased 35 percent
over last year, with the increase driven by new projects in
Hawaii.

HGVC had second quarter revenue of US$159 million, an 8 percent
decrease from US$173 million in the 2006 quarter.  Expenses were
US$121 million in the second quarter, compared with US$125
million in the 2006 period.

                  Brand Development/Unit Growth

In the second quarter, the company added 71 properties and 9,436
rooms to its system as follows: Hampton Inn, 32 hotels and 2,919
rooms; Hilton Garden Inn, 18 hotels and 2,359 rooms; Hilton, 8
hotels and 1,918 rooms; Doubletree, 7 hotels and 1,591 rooms;
Homewood Suites by Hilton, 5 hotels and 493 rooms; Embassy
Suites, 1 hotel and 156 rooms.

Thirteen hotels and 2,088 rooms were removed from the system
during the quarter.

During the second quarter, the company added new Hilton hotels
in Dallas; New Orleans; Limerick, Ireland; Venice, Italy and
Valencia, Spain.  The company added new Doubletree hotels in
Milwaukee, Columbus, Boston, and Richmond.  Additionally, during
the quarter, the company signed over 15 management agreements,
including the Conrad Buenos Aires, Argentina scheduled to open
in 2010, the Hilton Forbidden City, Beijing, China scheduled to
open in 2008, and the Hilton Mina Al Arab, U.A.E., scheduled
to open in 2010.

During the second quarter, the company announced four new
agreements as:

  -- A strategic alliance with the Caribbean Property
     Development Group to develop approximately 15 franchised
     hotels in Central America and the Caribbean under the
     Hilton Garden Inn, Hampton by Hilton and Homewood Suites
     by Hilton brands over the next five years.

  -- A strategic development alliance with London and Regional
     Properties to develop approximately 25 franchised or
     managed hotels in Russia under the Conrad, Hilton,
     Doubletree by Hilton, Hilton Garden Inn and Hampton by
     Hilton brands over the next five years.

  -- A strategic development alliance with Shiva Hotels Limited
     to develop approximately 15 franchised or managed hotels
     in the U.K. and Ireland under the Hilton, Doubletree by
     Hilton, Hilton Garden Inn and Hampton by Hilton brands
     over the next five years.

  -- A letter of understanding for a development alliance with
     Somerston Hotels U.K. Limited to develop approximately 25
     franchised hotels in the U.K. under the Hampton by Hilton
     brand over the next five years.

At June 30, 2007, the Hilton worldwide system consisted of 2,896
properties and 490,438 rooms.

In July, the company received three highest-ranking awards in
the J.D. Power and Associates 2007 North American Hotel Guest
Satisfaction Index Study, outperforming all other hospitality
companies within their respective segments.  Hilton Garden Inn
received the highest ranking (for the sixth consecutive year) in
the mid-scale full service segment.
Embassy Suites received the highest ranking (for the sixth time)
in the upscale segment. Homewood Suites by Hilton received the
highest ranking (for the fifth time) in the extended-stay
segment.

Matthew J. Hart, Hilton President & COO, said: "Our operations
continue to be very strong across the board.  Our brand
management and development businesses are experiencing strong
RevPAR gains and unit growth both domestically and
internationally.  We are seeing significant RevPAR increases and
improvement in margins across owned hotels, and our timeshare
business continues to perform in-line with our expectations.
Our development pipeline is larger than it has ever been and our
four new strategic agreements add further momentum to our
growth."

                        Asset Dispositions

During the second quarter, the company completed the sale of the
Scandic chain for EUR833 million or approximately US$1.1 billion
as of the transaction date.  Additionally, during the second
quarter the company sold the Hilton Washington for approximately
US$290 million.

The company also entered into an agreement to sell up to 10
hotels in Continental Europe for EUR566 million or approximately
US$770 million.  Early in the third quarter, the company
announced that it has completed the sale of eight of the ten
hotels and expects to complete the sale of the remaining two by
the end of the third quarter 2007.  The company will retain
management agreements on nine of the ten hotels.

                       Corporate Finance

At June 30, 2007, Hilton had total debt of approximately US$5.68
billion (net of approximately US$499 million of debt and capital
lease obligations resulting from the consolidation of certain
joint venture entities and a managed hotel, which are non-
recourse to Hilton), a reduction of nearly US$1.4 billion during
the quarter. Of the US$5.68 billion, approximately 42 percent is
floating rate debt.  Total cash and equivalents (including
restricted cash of approximately US$376 million) were
approximately US$546 million at June 30, 2007.

The company's average basic and diluted share counts for the
second quarter were 390 million and 424 million, respectively.

Hilton's effective tax rate for continuing operations in the
second quarter 2007 was approximately 35 percent.

Total capital expenditures in the second quarter were
approximately US$194 million, including approximately US$76
million expended for timeshare development.

                          2007 Outlook

The company's prior guidance regarding the outlook for 2007 has
been withdrawn and no new guidance is being issued due to the
pending transaction.

                    Update on Blackstone Deal

It is anticipated that the proposed acquisition of the company
by BH Hotels LLC, an entity controlled by investment funds
affiliated with the Blackstone Group L.P., will close during the
fourth quarter 2007; completion is subject to the approval of
Hilton's shareholders, as well as other customary closing
conditions.  Further details regarding the transaction can be
found in the preliminary proxy statement that was filed
with the Securities and Exchange Commission last week.

Stephen F. Bollenbach, Hilton co-chairman and chief executive
officer, said: "The proposed sale of our company is proceeding
on track with an anticipated closing in the fourth quarter of
this year.  As we stated when we announced the deal, this
transaction brings tremendous value to our shareholders and we
look forward to bringing it to completion in the next several
months."

                      About Hilton Hotels

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad, and Tobago, Philippines and Vietnam.

                          *     *     *

As reported on May 1, 2007, Standard & Poor's Ratings Services
said its rating and outlook on Hilton Hotels Corp.
(BB+/Stable/--) would not be affected by the company's
announcement that it has entered into an agreement with Morgan
Stanley Real Estate to sell up to 10 hotels for approximately
US$612 million in proceeds (net of property level debt
repayment, taxes, and transaction costs).  Upon the
close of the transactions, Hilton Hotels plans to use the net
proceeds to repay debt.

Standard & Poor's rating upgrade for Hilton Hotels in March 2007
incorporated the expectation that the company would sell a
meaningful level of additional assets over the near term, which
would likely lead to additional debt reduction.  Still, Standard
& Poor's is encouraged by the expected transaction multiple
related to today's announcement.  If the lodging transaction
market remains strong, enabling Hilton Hotels to generate
substantial proceeds from remaining asset sales, if these
proceeds are used for debt reduction, and if the lodging
environment remains strong, an outlook revision to positive
could be considered as 2007 progresses.  Any movement signaling
the potential for a higher rating will depend on Hilton Hotels's
commitment to maintaining credit measures aligned with higher
ratings over the lodging cycle.

In February 2007, Moody's Investors Service upgraded Hilton
Hotels Corporation's corporate family rating to Ba1 from Ba2
reflecting a reduction in leverage from a faster than expected
pace of asset sales and strong earnings during 2006.  Adjusted
debt to EBITDAR has improved to around 5.0x from 6.0x in January
2006.


HOTHOUSE TRADING: Taps J. M. Titley to Liquidate Assets
-------------------------------------------------------
J. M. Titley of DTE Leonard Curtis was appointed liquidator of
Hothouse Trading Co. Ltd. on July 27 for the creditors'
voluntary winding-up procedure.

The liquidator can be reached at:

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


INCO LTD: Sales Up 232% to US$859 Million in 2nd Qtr. FY 2007
-------------------------------------------------------------
PT International Nickel Indonesia Tbk, Canada Inco Ltd.'s
Indonesian unit reported second quarter 2007 unaudited sales of
US$859.0 million, a 232% increase from US$258.6 million in the
same quarter last year.

Net earnings in the quarter ended June 30, 2007 were US$479.2
million, or US$0.48 per share, up 501% from net earnings of
US$79.7 million, or US$0.08 per share, in the same quarter of
2006.

Sales rose 196% to US$1,305.7 million in the first six months of
2007 from US$440.5 million in the same period in 2006.  Net
earnings in the first half of 2007 increased 473% to US$707.0
million, or US$0.71 per share, from US$123.3 million, or US$0.12
per share, in the first half of 2006.

"PT Inco's balance sheet improved further during the second
quarter 2007.  Despite increased dividend payments of US$497.1
million in the first quarter of 2007, our cash balance at the
end of the second quarter 2007 stood at US$683.2 million
compared with US$170.4 million at the end of the second quarter
of 2006," said Arif Siregar, Presiden and Chief Executive
Officer.

The Company's realized price for nickel in matte averaged
US$38,926 per tonne in the second quarter of 2007, compared with
US$14,326 per tonne in the corresponding 2006 period and
US$29,149 per tonne in the first quarter of 2007.  Under PT
Inco's long-term, must-take US dollar-denominated sales
contracts, the selling price of our nickel in matte is
determined by a formula based on the London Metal Exchange cash
price for nickel, and CVRD Inco Limited's net average realized
price for nickel.

Production of nickel in matte for the second quarter of 2007 was
21,100 tonnes, an increase of 33% from 15,900 tonnes in the
corresponding 2006 period.  Production of nickel in matte in the
first half of 2007 increased 18% to 39,100 tonnes from 33,200
tonnes in the first six months of 2006.  During the 2007 second
quarter, PT Inco also provided approximately 225,000 tonnes of
ore from its Pomalaa operation to PT Antam Tbk.

"Above average levels of rainfall since the end of February 2007
have raised the level of our water reservoirs slightly,
permitting the Company to operate its hydroelectric generators
at normal levels.  The improved water situation and strong
production during the first half of 2007 positions the Company
well to meet our previously announced 2007 production target of
160-to-165 million pounds of nickel in matte.  Furthermore, new
diesel generators have been installed providing the Company with
additional power.  These diesel generators allowed us to
maintain production when the steam boiler was shut down for
inspection in the second quarter.  This extra power supply will
also help when the steam boiler is refurbished later this year,"
Mr. Siregar said.

"We believe that we are making progress toward obtaining a final
forestry permit from the Indonesian Government in relation to
the construction of a new dam and generating facility at Karebbe
on the Larona River.  Obtaining final forestry permit on
acceptable terms is necessary for the Company to recommence
construction on this important facility.  As well, during the
quarter, the Company launched an important initiative to
increase the capacity of local contractors to participate in
business opportunities associated with our Sorowako operations",
continued Mr. Siregar.

Unit cash cost of production in the second quarter of 2007
increased 6% to US$3.30 per pound from US$3.11 per pound in the
same period last year.  The increase in unit cast costs resulted
from rising employment costs, increased consumption of high
sulphur fuel oil, and the use of greater amounts of more
expensive diesel.  The diesel price climbed to an average of
US$0.56 per liter in the second quarter of 2007 from US$0.53 per
liter in the prior year period.  The Company's operations
consumed 33.5 million liters of diesel in the second quarter of
2007, compared to 29.0 million liters in the first quarter of
2007.  High LME prices for nickel increases royalties and water
levies paid to the Indonesian Government in the second quarter
of 2007 compared to the first quarter of 2007.  Notwithstanding
the increased diesel use and increased payments to the
Indonesian Government, unit cash cost of production in the
second quarter fell slightly when compared with the first
quarter 2007, mainly due to increased production.  In order to
maximize the production in the current high nickel price
environment, the Company will continue to use expensive fuel-
fired power in order to supplement its low-cost hydroelectric
power.

In the first half of 2007, cash provided by operating
activities, but before capital expenditures, increased to
US$763.1 million from US$103.8 million for the same period last
year, primarily due to increased receipts from customers of
US$1,220,6 million, partly offset by higher tax payments of
US$212.8 million and higher payments to employees of US$44.2
million.  Cash used in relation to capital expenditures in the
first six months of 2007 rose to US$55.5 million from US$50.8
million in the corresponding 2006 period.  Cash used for
dividend payments in the first half of 2007 increased to
US$497.1 million from US$85.4 million in the first half of 2006.
As a result there was a net cash inflow of US$205.3 million in
the first half of 2007 compared with an outflow of US$78.7
million for the corresponding period in 2006.

At June 30, 2007, the Company's inventories of nickel in matte
were 2,902 tonnes, compared with 3,544 tonnes at March 31, 2007
and 128 tonnes, at June 30, 2006.  Variations in inventories and
deliveries are largerly due to shipment scheduling.

                       About Inco Limited

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

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


ISLE OF CAPRI: Posts US$4.6 Million Net Loss in 2007
----------------------------------------------------
Isle of Capri Casinos Inc. provided Thursday its financial
results for the fourth fiscal quarter and fiscal year ended
April 29, 2007.

The company reported a net loss of US$14.6 million for the
fourth quarter ended April 29, 2007, compared with net income of
US$16.5 million for the fourth quarter ended April 30, 2006.
For the fiscal year ended April 29, 2007, the company reported a
net loss of US$4.6 million, compared with net income of US$18.9
million for the fiscal year ended April 30, 2006.

The company reported a 17.3% decrease in net revenues from
continuing operations to US$255.6 million for the fourth quarter
compared to net revenues from continuing operations of
US$309.1 million for the same quarter in fiscal 2006.  Loss from
continuing operations was US$13.1 million during the fourth
quarter of fiscal 2007 compared to income of US$10.5 million for
the fourth quarter of fiscal 2006.   Adjusted EBITDA from
continuing operations for the fourth quarter of fiscal 2007
decreased 22.9% to US$57.3 million compared to Adjusted EBITDA
from continuing operations of US$74.3 million for the same
quarter in fiscal 2006.

The fourth quarter ended April 29, 2007, included thirteen weeks
of operating results compared to the fourth quarter ended
April 30, 2006, which included fourteen weeks of operating
results.  This accounts for approximately 7.5% of the year over
year decrease in revenues and Adjusted EBITDA.  Other factors
contributing to the year over year declines include increased
competition in several of the company's markets, most
significantly Biloxi, Mississippi and severe weather in several
markets in the first period of the fourth quarter of fiscal
2007.

For the twelve months ended April 29, 2007, the company reported
a 1.4% increase in net revenues from continuing operations to
US$1.0 billion, compared to US$987.4 million for the comparable
period in the prior year.  For the twelve months of fiscal 2007,
the company reported a loss from continuing operations of
US$21.3 million, compared to income of US$8.6 million for the
same period in fiscal 2006.  Adjusted EBITDA from continuing
operations in the twelve-month period reported a 4.5% decrease
to US$194.6 million, compared to US$203.7 million for the
comparable twelve-month period in fiscal 2006.

During the twelve months ended April 29, 2007, the company
recognized a pretax gain of US$23.2 million related to the sale
of its Isle-Bossier City and Isle-Vicksburg properties.  This
gain on sale is included in income from discontinued operations.

Isle-Bossier City, Isle-Vicksburg and Colorado Grande-Cripple
Creek are reflected as discontinued operations for all periods
presented.  Accordingly, the operating results for these
properties are not included in the net revenue, income from
continuing operations and Adjusted EBITDA results.  The sale of
Isle-Bossier City and Isle-Vicksburg closed on July 31, 2006.

"Fiscal 2007 was a transitional year for the company, as we
prepared for the opening of three properties under our new brand
'the isle(R),' in addition to opening a new hotel and acquiring
a new property.  The response from our guests has been very
positive, and we look forward to growing our database and
elevating the gaming experience for our customers.  In addition,
we implemented new technology initiatives that will help us
operate and market more efficiently, and introduced additional
programs across the Company to improve margins," said Bernard
Goldstein, president and chief executive officer.

"Our search for a new president and chief operating officer has
come to a close and we are pleased to welcome Virginia McDowell
to the Isle of Capri family.  We believe that we have selected
the ideal candidate as Virginia brings just the right mix of
gaming expertise and leadership capabilities to her new role.
Everyone has eagerly welcomed Virginia to the Isle of Capri
family," Mr. Goldstein noted.

            Operational Review for the Fourth Quarter

The operating results for the fourth quarter of fiscal 2007
include some significant additional expenses, as compared to the
fourth quarter of fiscal 2006.  These include an increase of
approximately US$4.5 million in property insurance expense over
the prior year's fourth quarter, for a twelve-month total
increase of approximately US$18.0 million over the prior fiscal
year, which was allocated across all operating properties.  The
company also recorded approximately US$1.6 million of stock
compensation expense in the fourth quarter of fiscal 2007, for a
twelve-month total increase of approximately US$7.2 million over
the prior fiscal year.  Pre-opening costs increased US$10.4
million compared to the fourth quarter of fiscal 2006 primarily
due to costs related to the company's casino developments in
Pompano Beach, Florida; Waterloo, Iowa and Coventry, England.

In Mississippi, the company's three continuing operations
contributed 24.3% of net revenues.  Isle-Biloxi's net revenues
and Adjusted EBITDA decreased significantly from abnormally high
prior year operating results due to increased competition in the
market as competitors have re-opened after closures caused by
Hurricane Katrina and while the Isle-Biloxi remains negatively
impacted by the destruction of the Biloxi/Ocean Springs bridge,
which is the primary thoroughfare for travelers from Florida to
east Biloxi where Isle-Biloxi is located.  Two lanes of the
Biloxi/Ocean Springs bridge are scheduled to re-open in November
and the complete new bridge with six lanes is scheduled to re-
open in June 2008.  Isle-Natchez continues to experience
decreases in both net revenues and Adjusted EBITDA primarily
resulting from the re-opening of casinos along the Gulf Coast.
Isle-Lula's net revenues and Adjusted EBITDA decreased slightly
due to increased competition impacting certain of the property's
outlying feeder markets and disruption due to renovations of the
casino floor.

In Louisiana, Isle-Lake Charles contributed 16.8% of net
revenues. Isle-Lake Charles experienced a decrease in net
revenues and Adjusted EBITDA due to increased competition in the
market as competitors have fully re-opened following closures
caused by Hurricane Rita and post hurricane normalization of
population levels in the property's feeder markets.

In Missouri, the company's two properties contributed 17.2% of
net revenues.  The company's Missouri operations were impacted
by severe winter weather in the first period of the fourth
quarter. Isle-Kansas City's net revenues and Adjusted EBITDA
were down due to increased competition related to the completion
of competitors' expansion projects in the market.  Isle-
Boonville's net revenues and Adjusted EBITDA increased due to
the opening of the company's new hotel and an increase in
marketing efforts.

In Iowa, the company's three casinos contributed 17.7% of net
revenues.  Combined, the company's three Iowa properties, the
Isle-Bettendorf, Rhythm City-Davenport, and Isle-Marquette
showed a decrease in both net revenues and Adjusted EBITDA due
to increased competition in certain of the company's feeder
markets in which it operates, including new and expanded gaming
product by several of its competitors, as well as severe winter
weather in the first period of the fourth quarter.

In Colorado, the company's two Black Hawk casino operations
contributed 15.7% of net revenues.  The Black Hawk properties
experienced a decrease in net revenues and Adjusted EBITDA as
compared to the prior year period primarily due to severe
weather in the first period of the quarter and disruption at the
Colorado Central Station gaming floor as it was redesigned for
wider aisles and the implementation of 100% ticketing
capabilities on slots.

In International operations, Isle-Our Lucaya recorded a reversal
of approximately US$9.4 million in certain prior year expenses
related to the company's agreement with the Bahamian government
and the company's landlord to keep the casino open.
Additionally, the company reversed its US$2.2 million lease
termination fee paid in the first quarter of fiscal 2007, which
has now been recorded as pre-paid rent.

Corporate and other includes the company's corporate office
operations, new development costs and the operating results of
Pompano Park.  The decrease in corporate and other compared to
the fourth quarter of fiscal 2006 is primarily due to a US$6.2
million decrease in new development costs primarily due to costs
incurred in the prior year fiscal quarter related to the pursuit
of gaming licenses in Pittsburgh, Pennsylvania and Singapore.
In December 2006, the company was notified that it was not
awarded either gaming license.  The operating results of Pompano
Park reflected a US$3.6 million decrease in Adjusted EBITDA,
which relates primarily to construction disruption, increased
property insurance premiums and increased repairs and
maintenance costs incurred on the existing track facility prior
to the opening of the Isle-Pompano casino facility.  The Isle
Pompano was only opened for the last two weeks of the fourth
quarter of fiscal 2007.  Also, the increase in corporate and
other expenses includes approximately US$2.0 million in costs
incurred related to the completion of the restatement of the
company's historical financial statements. These increased costs
are partially offset by lower bonus, franchise taxes and other
legal costs.

The company recorded a US$7.8 million valuation charge during
the fourth quarter of fiscal 2007 related to the Isle-Lula,
based on lower projected cash flows going forward.
Comparatively, the company recorded a US$13.4 million valuation
charge in the fourth quarter of fiscal 2006 related to its Blue
Chip, plc operations in the United Kingdom and the Isle-Our
Lucaya.

At April 29, 2007, the company's consolidated balance sheet
showed US$2.08 billion in total assets, US$1.77 billion in total
liabilities, US$27.8 million in minority interest, and US$281.8
million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended April 29, 2007, are available for
free at http://researcharchives.com/t/s?2210

                   About Isle of Capri Casinos

Based in Biloxi, Missippi and founded in 1992, Isle of Capri
Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns
and operates casinos in Biloxi, Lula and Natchez, Mississippi;
Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and
Waterloo, Iowa; Boonville, Caruthersville and Kansas City,
Missouri and a casino and harness track in Pompano Beach,
Florida. The company also operates and has a 57 percent
ownership interest in two casinos in Black Hawk, Colorado.  Isle
of Capri Casinos' international gaming interests include a
casino that it operates in Freeport, Grand Bahama, a casino in
Coventry, England, and a two-thirds ownership interest in
casinos in Dudley and Wolverhampton, England.

There are four Isle of Capri Casinos brands including "the
isle," Isle of Capri, Colorado Central Station and Rhythm City,
providing over 16,000 slot machines, 550 table games and 3000
hotel rooms for our guests' enjoyment.

                           *     *     *

As reported in the Troubled Company Reporter on June 21, 2007,
Standard & Poor's Ratings Services revised its rating outlook on
Isle of Capri Casinos Inc. to negative from stable.  Ratings on
the company, including the 'BB-' corporate credit rating, were
affirmed.


KRISPY KREME: S&P Puts B- Rating on Corp. Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services has assigned its ratings,
including its corporate credit rating of 'B-', to Winston Salem,
N.C.-based Krispy Kreme Doughnuts Inc.  The outlook is negative.

At the same time, Standard & Poor's assigned its bank loan and
recovery ratings to the US$160 million senior secured credit
facility borrowed by Krispy Kreme Doughnut Corp., a subsidiary
of Krispy Kreme.  The facility is rated 'B', one notch above the
corporate credit rating on Krispy Kreme, and assigned a '2'
recovery rating, indicating the expectation for substantial
(70%-90%) recovery of principal in the event of default.  The
facility consists of a US$50 million revolving credit facility
and a $110 million first-lien term loan, of which US$101 million
was outstanding as of April 29, 2007.  Krispy Kreme guarantees
the debt of its subsidiary.

"The negative outlook reflects the company's material weaknesses
over reporting controls, which may cause errors or delays in the
company's filing of its financial statements," explained
Standard & Poor's credit analyst Charles Pinson-Rose.
Furthermore, we believe that the company's U.S. operations are
vulnerable to competitive inroads.  "If the company cannot file
its financial statements in a timely fashion," added Mr. Pinson-
Rose, "the rating will likely be downgraded."

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating system wide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.


MEDAL ENTERTAINMENT: Taps Joint Administrators from KPMG
--------------------------------------------------------
Chris Laverty and Myles Halley of KPMG LLP were appointed joint
administrators of Medal Entertainment & Media Plc (Company
Number 04174013) on July 26.

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

Headquartered in Wembley, England, Medal Entertainment & Media
Plc -- http://www.mem-plc.co.uk/-- is a group of companies
engaged in the production and distribution of programs for
television and home entertainment, as well as the specialist
publishing of factual programs and classic entertainment for the
worldwide DVD and video market.


NORTEL NETWORKS: Posts US$37 Mln Net Loss in Qtr. Ended June 30
---------------------------------------------------------------
Nortel Networks Corp. reported on Thursday its results for the
second quarter ended June 30, 2007.

The company reported a net loss of US$37 million in the second
quarter of 2007, compared with net income of US$342 million for
the same period last a year ago.

The net loss of US$37 million in the quarter ended June 30,
2007, included special charges of US$36 million for
restructuring, a US$35 million provision related to ongoing
discussions with the SEC, a gain of US$69 million due to
favourable effects of changes in foreign exchange rates and a
gain of US$10 million on the sale of assets.

The net earnings in the second quarter of 2006 of US$342 million
included a shareholder litigation recovery of US$510 million
reflecting a mark-to-market adjustment of the share portion of
the global class action settlement, special charges of US$49
million for restructuring and a loss of US$12 million on the
sale of assets.

"Good progress is being made in our effort to reshape Nortel to
deliver sustained value to shareholders.  On balance, the key
indicators of our financial health moved in a positive direction
in the quarter," said Nortel President and CEO Mike Zafirovski.
"Gross margin of 41.1% was the highest in eight quarters and the
operating margin expanded significantly on a year-over-year
basis for the fourth consecutive quarter.  Revenues were down 8%
this quarter, principally as a result of the UMTS divestiture
and the timing of contract completion.  Revenues were up 3%
sequentially and we are confident that the traction we are
seeing with customers will translate into much higher sequential
growth for the remainder of the year."

Revenues were US$2.56 billion for the second quarter of 2007
compared to US$2.78 billion for the second quarter of 2006.

Deferred revenues decreased sequentially by US$29 million from
the first quarter of 2007.  Order input for the quarter was
US$2.68 billion, down from US$2.81 billion in the second quarter
of 2006 (note that second quarter of 2006 UMTS Access orders
associated with the assets sold were approximately US$184
million), and up from US$2.59 billion in the first quarter of
2007.

Carrier Networks revenues in the second quarter of 2007 were
US$1.06 billion, a decrease of 16% compared with the year-ago
quarter and an increase of 5% sequentially.  In the second
quarter, CN revenues were impacted by the UMTS Access
divestiture and decreases in legacy products, partially offset
by growth in VoIP and GSM compared with the year-ago quarter.
Excluding the impact of the UMTS Access divestiture, CN revenues
decreased by 5% in the second quarter of 2007 compared with the
year-ago quarter.

Enterprise Solutions revenues in the second quarter of 2007 were
US$590 million, an increase of 23% compared with the year-ago
quarter and a decrease of 1% sequentially.  ES recorded the
fourth consecutive quarter of year over year growth, driven by
strong increases in the voice, data and applications businesses,
which was positively impacted by the timing of contract
completions.

Global Services revenues in the second quarter of 2007 were
US$494 million, a decrease of 9% compared with the year-ago
quarter, and an increase of 10% sequentially.  The year over
year decrease was largely due to a decrease in network
implementation services primarily due to the UMTS Access
divestiture and lower GSM services revenues, partially offset by
growth in network  management and support services.  Excluding
the impact of the UMTS Access divestiture, GS revenues decreased
by 3% in the second quarter of 2007 compared with the year-ago
quarter.

Metro Ethernet Networks revenues in the second quarter of 2007
were US$363 million, a decrease of 16% compared with the year-
ago quarter and a decrease of 3% sequentially.  The year over
year decrease in revenues was primarily due to decreases in
long-haul optical revenues not repeated in the second quarter of
2007 (due to the completion of large optical contracts in the
second quarter of 2006) and in legacy data, partially offset by
increases in metro optical and carrier ethernet revenues.

Cash balance at the end of the second quarter of 2007 was
US$4.47 billion, down slightly from US$4.56 billion at the end
of the first quarter of 2007.  This decrease was primarily
driven by a cash outflow from operations of US$120 million.  The
cash balance includes net proceeds from the US$1.15 billion
convertible notes offering in March 2007.  In September 2007,
Nortel will redeem, at par, US$1.125 billion principal amount of
4.25% convertible notes plus accrued and unpaid interest.

                    Regulatory Investigations

As previously announced, in May 2007 the Ontario Securities
Commission approved a Settlement Agreement reached by the Staff
of the OSC and Nortel, which settlement fully resolved all
issues between Nortel and the OSC.  The decision recognized the
extensive efforts made by Nortel's senior management and Board
of Directors to be forthcoming and transparent in reporting
significant accounting and internal control issues, and then
solving them.

Nortel has been under investigation by the SEC since April 2004
in connection with previous restatements of its financial
statements.  As a result of discussions with the Enforcement
Staff of the SEC for purposes of resolving the investigation,
Nortel concluded that a reserve should be provided.
Accordingly, an accrual was recorded in the second quarter of
2007 in the amount of US$35 million, which Nortel believes
represents its current best estimate for the liability
associated with this matter.  However, this matter is ongoing
and the ultimate outcome is still uncertain.

                             Outlook

Commenting on the company's financial expectations, David
Drinkwater, interim chief financial officer, Nortel said, "For
the full year 2007, we continue to expect revenues to be flat to
down slightly compared to 2006, reflecting a decrease in
revenues as a result of the UMTS Access disposition (note that
2006 UMTS Access revenues associated with the assets sold were
approximately US$660 million).  We continue to expect full year
2007 gross margin to be in the low 40's, as a percentage of
revenues, and we now expect operating margin to be around 5
percent, of revenues).  For the third quarter of 2007, we expect
revenues to be down in the mid single digits compared to the
year ago quarter (note that third quarter 2006 UMTS Access
revenues associated with the assets sold were approximately
US$156 million).  We expect third quarter 2007 gross margin to
be around 40, as a percentage of revenue, and operating expenses
(SG&A and R&D) to be down slightly, compared to the year ago
quarter."

At June 30, 2007, the company's consolidated balance sheet
showed US$18.95 billion in total assets, US$15.35 billion in
total liabilities, US$788 million in minority interests in
subsidiary companies, and US$2.81 billion in total stockholders'
equity.

                      About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.

Nortel does business in more than 150 countries around the world
including the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.

                          *     *     *

On March 27, 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed USUS$1 billion
convertible senior unsecured notes offering.  Moody's said the
outlook remains stable.


NOVAGEN LTD: Brings In Liquidators from Tenon Recovery
------------------------------------------------------
Steven Philip Ross and Ian William Kings of Tenon Recovery were
appointed joint liquidators of Novagen Ltd. on July 25 for the
creditors' voluntary winding-up proceeding.

The joint liquidators can be reached at:

         Tenon Recovery
         Tenon House
         Ferryboat Lane
         Sunderland
         Tyne and Wear
         SR5 3JN
         England


ODYSSEY RE: Earns US$145.5 Million in Second Qtr. 2007
------------------------------------------------------
Odyssey Re Holdings Corp. reported net income available to
common shareholders of US$145.5 million, or US$2.02 per diluted
share, for the quarter ended June 30, 2007, compared to US$207.6
million, or US$2.87 per diluted share, for the quarter ended
June 30, 2006.  Operating income after tax was US$66.8 million,
or US$0.93 per diluted share, for the second quarter of 2007,
compared to US$88.2 million, or US$1.22 per diluted share, for
the second quarter of 2006; results for the second quarter of
2006 include a one-time tax benefit of US$16.5 million, or
US$0.23 per diluted share.  Included in second quarter 2007 net
income available to common shareholders were after tax net
realized capital gains of US$78.7 million, or US$1.09 per
diluted share, compared to after tax net realized capital gains
of US$119.6 million, or US$1.65 per diluted share, for the
second quarter of 2006, which included capital gains of an
equity investee that were included in net investment income for
that quarter.  For the six months ended June 30, 2007, net
income available to common shareholders was US$232.1 million, or
US$3.22 per diluted share, compared to US$358.0 million, or
US$4.95 per diluted share, for the comparable period of 2006.

Book value per common share was US$30.27 at June 30, 2007, an
increase of US$2.35 per share, or 8.4%, compared to US$27.92 at
Dec. 31, 2006.  Total shareholders' equity was US$2.28 billion
at June 30, 2007, an increase of US$200.5 million compared to
total shareholders' equity of US$2.08 billion at Dec. 31, 2006.

Gross premiums written for the quarter ended June 30, 2007 were
US$553.3 million, a decrease of 5.3% compared to US$584.1
million for the quarter ended June 30, 2006.  The change was
attributable to a 12.4% decrease in the Company's worldwide
reinsurance business, reflecting increased competitive market
conditions, which was partially offset by a 14.4% increase in
the Company's insurance business, primarily related to new
business opportunities within U.S. specialty insurance.  Net
premiums written for the second quarter of 2007 were US$505.1
million, a decrease of 7.0% compared to second quarter 2006 net
premiums written of US$542.8 million.

The combined ratio for the second quarter of 2007 was 93.9%,
compared to 95.3% for the second quarter of 2006.  Results for
the three months ended June 30, 2007 reflect net catastrophe
losses, including net catastrophe losses from prior periods, of
US$13.0 million, after tax, or US$0.18 per diluted share,
compared to US$19.8 million, or US$0.27 per diluted share, for
the second quarter of 2006.  For the six months ended
June 30, 2007 and 2006, the combined ratio was 95.1% and 93.6%,
respectively.

Net investment income, which for 2006 excludes realized capital
gains of an equity investee included in net investment income,
amounted to US$84.5 million for the second quarter of 2007,
compared to US$92.3 million for the second quarter of 2006.  Net
pre-tax realized capital gains were US$121.1 million for the
second quarter of 2007, compared to US$184.1 million for the
second quarter of 2006.  Included in net pre-tax realized
capital gains for the second quarter of 2007 is US$119.2 million
related to the sale of the Company's 13.2% ownership of Hub
International Limited.  The second quarter of 2006 includes
realized capital gains of an equity investee included in net
investment income of US$103.3 million.  For the three months
ended June 30, 2007, net cash flow from operations was US$28.6
million, an increase of 6.3% from US$26.9 million for the three
months ended June 30, 2006.

At June 30, 2007, total investments and cash were US$7.3
billion, an increase of US$220.1 million, or 3.1%, over
Dec. 31, 2006.  Net unrealized losses, after tax, were US$37.4
million at June 30, 2007, compared to net unrealized gains,
after tax, of US$23.4 million at Dec. 31, 2006.  In the second
quarter of 2007, OdysseyRe paid a cash dividend of US$0.0625 per
common share on June 29, 2007, to common shareholders of record
as of June 15, 2007.

Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of
property and casualty treaty and facultative reinsurance, as
well as specialty insurance.  Odyssey Re operates through its
subsidiaries, Odyssey America Reinsurance Corp., Hudson
Insurance Co., Hudson Specialty Insurance Co.  Clearwater
Insurance Co., Newline Underwriting Management Limited and
Newline Insurance Co. Ltd.  The Company underwrites through
offices in the United States, London, Paris, Singapore, Toronto
and Mexico City.  Odyssey Re Holdings Corp. is listed on the New
York Stock Exchange under the symbol ORH.

                       *     *     *

As reported in the Troubled Company Reporter on Nov. 15, 2006,
Standard & Poor's affirmed its 'BBB-' counterparty credit and
'BB' preferred stock ratings on Odyssey Re Holdings Corp. and
removed them from CreditWatch negative.


SADLER UTILITIES: Calls In Liquidators from Vantis
--------------------------------------------------
Alpa Raja and G. Mummery of Vantis Business Recovery Services
were appointed joint liquidators of Sadler Utilities Ltd. on
July 25 for the creditors' voluntary winding-up proceeding.

The joint liquidators can be reached at:

         Vantis Business Recovery Services
         43-45 Butts Green Road
         Hornchurch
         Essex
         RM11 2JX
         England


SERVICEMASTER: Amended Credit Pact Cues S&P to Watch B+ Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B+' bank loan
rating on Memphis, Tenn.-based The ServiceMaster Co. on
CreditWatch with developing implications.  ServiceMaster's other
ratings, including its 'B' corporate credit rating, have been
affirmed.  The outlook remains negative.

"The CreditWatch listing follows the company's execution of an
amendment to its new senior secured credit agreement," said
Standard & Poor's credit analyst Jean Stout.  The amendment
provides the holders of the bank loan the right to parcel the
existing US$2.65 billion term loan into two tranches, Tranche
B-1 Term Loan and Tranche B-2 Term Loan, up to 90 days from the
closing date.  These loans shall have the same terms and be pari
passu in all respects, except that proceeds from collateral in
connection with the exercise of secured creditor remedies shall
be allocated to repay Tranche B-1 Term Loan in full prior to any
allocation of such proceeds to repay Tranche B-2 Term Loan.
Tranche B-1 Term loan holders would enjoy added protection
provided by their enhanced position in the recovery process
relative to the holders of the Tranche B-2 Term Loan.

The corporate credit rating is unaffected by this amendment as
overall leverage will not change following a potential split of
the term loan into two tranches.

To resolve the CreditWatch listing for the bank loan rating,
Standard & Poor's will monitor developments, including the
ultimate allocation between the term loan tranches, and assess
the recovery prospects of each loan tranche.  If the existing
term loan is split into two tranches, it is possible that both
the bank loan and recovery ratings would differ for each
tranche.

ServiceMaster Co. -- http://www.servicemaster.com/-- (NYSE:SVM)
currently serves residential and commercial customers through a
network of over 5,500 company-owned locations and franchised
licenses.  The company's brands include TruGreen, TruGreen
LandCare, Terminix, American Home Shield, InStar Services Group,
ServiceMaster Clean, Merry Maids, Furniture Medic, and
AmeriSpec.  The core services of the company include lawn care
and landscape maintenance, termite and pest control, home
warranties, disaster response and reconstruction, cleaning and
disaster restoration, house cleaning, furniture repair, and home
inspection.  The company has operations in Australia, Chile,
China, Dominican Republic, Hong Kong, Indonesia, Japan, and the
United Kingdom, among others.


TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer
--------------------------------------------------------------
Tecumseh Products Company has appointed Edwin "Ed" L. Buker as
its chief executive officer.

Mr. Buker, whose appointment is effective Aug. 13, 2007, joins
Tecumseh from Citation Corporation, a supplier of metal
components based in Birmingham, Alabama, where he had served as
president and chief executive officer since March 2002.

Prior to joining Citation, Mr. Buker, 54, served as vice
president and general manager of the Chassis Systems Division at
Visteon Automotive; as president, Electrical Systems-The
Americas, for United Technologies Automotive; and as vice
president of new model development for BMW Manufacturing
Corporation in Munich, Germany.

He also held leadership positions at BMW's Spartanburg, South
Carolina, facility and at Honda's East Liberty, Ohio,
manufacturing plant.  Among other accomplishments, Mr. Buker was
co-leader of the design, building and operations management of
Honda's East Liberty facility and of BMW's Spartanburg plant.
Mr. Buker holds a bachelor's degree in mechanical engineering
from Tri-State University in Angola, Indiana, and an MBA from
Ohio University in Athens, Ohio.

"The appointment of Ed Buker as chief executive officer adds a
seasoned, proven, highly successful executive to Tecumseh,"
David M. Risley, chairman of Tecumseh, said.  ''His
manufacturing expertise, customer orientation and overall
management and strategic acumen make him an ideal choice to lead
Tecumseh's continuing efforts to improve its operational and
financial performance."

Mr. Buker will become a member of Tecumseh's board of directors
when he joins the company this month, and will eventually
succeed Mr. Risley as chairman.

Since January 2007, the company has been functioning under the
leadership of interim president and chief operating officer
James J. Bonsall, who will provide transition services to
Mr. Buker before returning to his ongoing role as a managing
director of AlixPartners LLP.

"Jim Bonsall provided capable leadership at a challenging time
for the company," Mr. Risley said.  I want to thank Jim for his
outstanding work at Tecumseh in our continuing efforts to place
the company on a solid strategic, operational and financial
footing.  Tecumseh has a long and proud history of serving
customers around the world.  We look forward to Ed's role as a
team builder and team leader as Tecumseh continues to serve its
customers and drive for improved performance and market
position."

                  About Tecumseh Products Company

Headquartered in Tecumseh, Mich., Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors.  The company has offices in Italy,
United Kingdom, Brazil, France, and India.

At March 31, 2007, the company's balance sheet showed total
assets of US$97.3 million, total liabilities of US$101.4
million, resulting to a shareholders' deficit of US$4.1 million.


THERMOMAX LTD: Names Joint Administrators from PwC
--------------------------------------------------
Garth Calow and Robert Lewis of PricewaterhouseCoopers LLP were
appointed joint administrators of Thermomax Ltd. (Company Number
01537121) and Thermomax (Great Britain) Ltd. (Company Number
02664234) on July 19.

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

The company can be reached at:

         Thermomax Ltd.
         Balloo Indstl Est
         Balloo Crescent
         Bangor
         BT19 7UP
         Northern Ireland
         Tel: 028 9127 0411
         Fax: 028 9127 0572


* 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 * * *