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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, July 18, 2008, Vol. 9, No. 142

                            Headlines


A U S T R I A

COLOR LASER: Claims Registration Period Ends September 10
H. D. V. LLC: Claims Registration Period Ends July 22
WALTER HOFBAUER: Claims Registration Period Ends September 10


D E N M A R K

MCDERMOTT INTL: Moody's Hikes Corporate Family Rating to Ba2


F R A N C E

MECACHROME INTERNATIONAL: Expects EUR45 Million EBITDA for 2008
MECACHROME INTERNATIONAL: Forms Committee Following CEO's Exit
MECACHROME INTL: Commences Profitability Improvement Plan
MECACHROME INT'L: Moody's Might Cut Ratings on Program Delays
THOMSON SA: Expects EUR220 Million Net Loss for First Half 2008

THOMSON SA: Moody's Investor Might Downgrade on Loss Situation
* Fitch Says Derivative Use Exposes French Gov't to High Risk


G E R M A N Y

AUTOHAUS DEUTSCHMANN: Claims Registration Period Ends July 28
BERAK WOHNBAU: Claims Registration Period Ends July 28
CIT GROUP: Board Declares US$0.10 per Share Dividend
CIT GROUP: Completes Sale of Home Lending Assets for US$1.8 Bln
EPICEPT CORP: Prices Public Offering of 2 Million Shares

H & T TEXTILIEN: Claims Registration Period Ends July 30
HCV - BRANDSCHUTZ: Claims Registration Period Ends July 30
HI-ELEKTRONIK GMBH: Claims Registration Period Ends July 30
MEDIENKOMMUNIKATION GMBH: Claims Registration Ends July 30
OCEAN ZONE: Claims Registration Period Ends July 30

PFLEIDERER AG: Completes EUR165 Million Bond Issue
PFLEIDERER AG: To Build EUR144 Million Plant in Russia
SONNENBACKER GMBH: Claims Registration Period Ends July 29
SPECTAVOLA GMBH: Claims Registration Period Ends July 29
STRIKE SPORT: Claims Registration Period Ends July 29


I T A L Y

ALITALIA SPA: Italy Submits Response to Commission over Loan


K A Z A K H S T A N

BK BUSINESS: Creditors Must File Claims by September 2
DELDAL LLP: Claims Deadline Slated for August 22
INTER LES: Claims Filing Period Ends August 22
KYZYLORDA AGRO: Creditors' Claims Due on September 2
LABEAN LLP: Claims Registration Ends August 22

MET PROM: Creditors Must File Claims by September 2
PETRO TRANS: Claims Deadline Slated for August 26
STROY ALLIANCE-1: Claims Filing Period Ends September 2
TSERERA 2030: Creditors' Claims Due on August 22
UJDOR SERVICE: Claims Registration Ends September 2

K Y R G Y Z S T A N

ALA-TOO TRANS LLC: Creditors' Proofs of Claim Due by Sept. 2


N E T H E R L A N D S

TEXNIKA FINANCE: Fitch Rates US$26MM 12.75% Unsecured Loan 'B-'


R U S S I A

ARCTIC FOOD: Court Names A. Starichkov as Insolvency Manager
DORA OJSC: Creditors Must File Claims by August 17
MOL-PRODUCT-VOLOGDA: Creditors Must File Claims by August 17
NEO-KHIM LLC: Creditors Must File Claims by August 17
NOMOS-BANK: Fitch Affirms Ratings; Changes Outlook to Positive

OTECHESTVENNYE OAO: Fitch Assigns 'B-' LT Issuer Default Rating
PFLEIDERER AG: To Build EUR144 Million Plant in Russia
ROSTEK LLC: Creditors Must File Claims by August 17
STROY-MONTAZH: Creditors Must File Claims by August 14
TRANS-STROY-MEKHANIZATSIYA: Claims Filing Period Ends Aug. 17


S W I T Z E R L A N D

AGIA INFORMATIK: Proofs of Claim Filing Deadline August 7
JURSERVICE JSC: Creditors' Proofs of Claim Due by Aug. 15
PDX LLC: July 31 Set as Deadline to File Proofs of Claim
PERSONALPOINT LLC: Deadline to File Proofs of Claim Set Aug. 4
PROTEKTA ALLGEMEINE: Creditors' Proofs of Claim Due by Aug. 15

R HUBER: July 31 Set as Deadline to File Proofs of Claim
RELAAX LLC: Creditors Must File Proofs of Claim by Aug. 13
SHALIMAR TANDOORI: Proofs of Claim Filing Deadline Set July 31
STEFEM JSC: Deadline to File Proofs of Claim Set Sept. 5
TRAVEL IN: Creditors Have Until July 31 to File Proofs of Claim


U K R A I N E

AUTO-TEMA LLC: Creditors Must File Claims by August 2
CRONOS-INVEST LLC: Claims Filing Deadline Set August 2
CONCENTRATING EQUIPMENT: Creditors Must File Claims by August 2
DNIPRO: Creditors Must File Claims by August 2
MARINORD: Creditors Must File Claims by August 2

PROGRESS LLC: Claims Filing Deadline Set August 2
TRADE BUILDING: Creditors Must File Claims by August 2
URA-BOOK CJSC: Claims Filing Deadline Set August 2
VEL LLC: Claims Filing Deadline Set August 2


U N I T E D   K I N G D O M

BAA LIMITED: Proposes to Offer Debt Secured on Airports
CASTLE BUILDING: Cash Flow Hit Sends Firm into Administration
CLAIMTEC LTD: Brings In Joint Administrators from BDO Stoy
ENRON CORP: Court Approves US$13 Million Abbey Claim Compromise
ENRON CORP: EPMI Inks Pact Resolving CalPex Claim

ENRON CORP: Resolves US$15 Mln MARAD Claim Through Stipulation
ENRON CORP: Appeals Court Affirms Dismissal of 10 Investor Cases
EOS AIRLINES: Taps Bouchier, Stoneman as Administrators
INTELSAT CORP: S&P Rates US$658 Mln 9.25% Senior Notes at BB-
J RAY MCDERMOTT: Moody's Hikes Corporate Family Rating to Ba2

L G D LTD:  Appoints Andrew Appleyard as Administrator
LUCITE INT'L: S&P Cuts Long-Term Corporate Credit Rating to B
PENDRAGON PLC: Joint Venture Breaches Loan Convenants with RBS    
REMBRANDT I: Fitch Puts 'BB-' Notes Ratings Under Negative Watch
SEA CONTAINERS: Employees Have Until August 25 to File Claims

SEA CONTAINERS: SCL Panel Still Not Convinced of Pension Pact OK
* BOOK REVIEW: Leveraged Management Buyouts


                            *********



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


COLOR LASER: Claims Registration Period Ends September 10
---------------------------------------------------------
Creditors owed money by LLC Color Lazer Print have until Sept.
10, 2008, to file written proofs of claim to court-appointed
estate administrator:

         Dr. Walter Kainz
         Gusshausstrasse 23
         1040 Vienna
         Austria
         Tel: 01/505 88 31
         Fax: 01/505 94 64
         E-mail: kanzlei@kainz-wexberg.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Sept. 25, 2008, for the
examination of claims at:

         The Land Court of Korneuburg
         Room 204
         2nd floor
         Korneuburg
         Austria

Headquartered in Schwechat, Austria the Debtor declared
bankruptcy on June 6, 2008, (Bankr. Case No. 36 S 70/08y).


H. D. V. LLC: Claims Registration Period Ends July 22
-----------------------------------------------------
Creditors owed money by LLC H. D. V. have until July 22, 2008,
to file written proofs of claim to the court-appointed estate
administrator:

         Dr. Ute Toifl
         Tuchlauben 12/20
         1010 Vienna
         Austria
         Tel: 535 46 11-0
         Fax: 535 46 11-11
         E-mail: office@thr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Aug. 5, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria the Debtor declared bankruptcy
on June 6, 2008, (Bankr. Case No. 4 S 81/08a).


WALTER HOFBAUER: Claims Registration Period Ends September 10
-------------------------------------------------------------
Creditors owed money by LLC Walter Hofbauer have until Sept. 10,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Kristina Koeck
         Hauptplatz 6
         2020 Hollabrunn
         Austria
         Tel.: 02952/306 15
         Fax: 02952/306 1515
         E-mail: office@koeck-heck.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Sept. 25, 2008, for the
examination of claims at:

         The Land Court of Wiener Neustadt
         Room 204
         2nd Floor
         Wiener Neustadt
         Austria

Headquartered in Wetzleinsdorf, Austria the Debtor declared
bankruptcy on June 9, 2008, (Bankr. Case No. 36 S 72/08t).


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


MCDERMOTT INTL: Moody's Hikes Corporate Family Rating to Ba2
------------------------------------------------------------
Moody's Investors Service upgraded the corporate family ratings
of both McDermott International Inc. and J Ray McDermott S.A. to
Ba2 from Ba3 and upgraded their probability of default ratings
to Ba3 from B1.

At the same time, Moody's upgraded the universal shelf rating of
McDermott International to B2 from B3 and upgraded the senior
unsecured revenue bonds backed by McDermott Inc. to B1 from B2.

Finally, Moody's confirmed the Ba2 senior secured debt rating of
J Ray McDermott and the Baa3 senior secured rating of Babcock
and Wilcox Power Generation Group, Inc.  The outlook for all
companies is positive.  This concludes the review for upgrade
initiated on June 12, 2008.

The upgrade of McDermott International and J Ray McDermott's
corporate family ratings with positive outlooks reflects Moody's
expectation that end market demand for the companies' respective
business segments are likely to remain favorable into the medium
term.

Moody's believes McDermott International and J Ray McDermott are
likely to produce continued strong operating results and sustain
key credit metrics at levels supportive of the outlook
direction.  
Ratings could be moved higher should the companies continue to
execute on their strong backlogs and maintain ample amounts of
liquidity and conservative balance sheets as they any pursue
strategic growth initiatives.

The confirmation of the facility ratings at Babcock and Wilcox
and J Ray McDermott considers the increase in size of the
revolving credit facilities for borrowing purposes which has
occurred at each of these entities within the past year, while
junior ranking unfunded pension liabilities have been reduced.

Upgrades:

  Issuer: J. Ray McDermott, S.A.

   -- Corporate Family Rating, Upgraded to Ba2 from Ba3
   -- Probability of Default Rating, Upgraded to Ba3 from B1

  Issuer: McDermott International Inc.

   -- Corporate Family Rating, Upgraded to Ba2 from Ba3
   -- Probability of Default Rating, Upgraded to Ba3 from B1
   -- Multiple Seniority Shelf, Upgraded to (P)B2, LGD 5, 88%
      from (P)B3, LGD 5, 88%

Issuer: Beaver (County of) PA, Industrial Devel Auth

   -- Senior Unsecured Revenue Bonds, Upgraded to B1, LGD 5, 75%
      from B2, LGD 5, 72%

Confirmations:

  Issuer: Babcock & Wilcox Power Generation Gr, Inc.

   -- Senior Secured Bank Credit Facility, Confirmed at Baa3 (to
      LGD 2, 12% from LGD 1, 6%)

  Issuer: J. Ray McDermott, S.A.

   -- Senior Secured Bank Credit Facility, Confirmed at Ba2 (to
      LGD 3, 30% from LGD 2, 22%)

Outlook Actions:

  Issuer: Babcock & Wilcox Power Generation Gr, Inc.

   -- Outlook, Changed To Positive From Rating Under Review

  Issuer: J. Ray McDermott, S.A.

   -- Outlook, Changed To Positive From Rating Under Review

  Issuer: McDermott International Inc.

   -- Outlook, Changed To Positive From Rating Under Review

Moody's assesses the ratings for McDermott International and J
Ray McDermott using two separate corporate family ratings given
the distinct financing arrangements the company has established
for its operating entities.  McDermott International's credit
profile is assessed based on its consolidated results excluding
J Ray McDermott, which is considered stand alone and has its own
corporate family rating (Ba2).

Moody's said it would review its two corporate family rating
construct should the company alter its financing arrangements in
a way that consolidated bank lines at the parent and promoted
the fluid availability of financial resources between the
various entities.

J Ray McDermott's backlog continues to rise as it benefits from
its leading market position and strong demand for offshore oil
and gas infrastructure.  Moody's expects industry fundamentals
are likely to remain solid into the medium term supporting the
company's prospects for ongoing revenue growth.  As well, J Ray
McDermott continues to demonstrate a disciplined bidding process
evidenced by its favorable operating margins and improving mix
of contracts in its backlog.

The expected growth in operating cash flow supports the ratings
upgrade and maintenance of positive rating momentum.  J Ray
McDermott's good liquidity profile and conservative capital
structure provides further ratings support and mitigates the
downside risk associated with project execution risks and its
concentration of activity in cyclical end markets.

While a portion of J Ray McDermott's growing cash balances and
debt capacity may be used to pursue strategic growth
initiatives, including acquisition activity, Moody's believes J
Ray McDermott has capacity to absorb reasonable amounts of
integration and execution risks within context of its current
rating and outlook.

McDermott International's corporate family rating principally
reflects the operations of Babcock and Wilcox and BWX
Technologies Inc., and includes their intermediate holding
company, McDermott Inc.  Profitability and cash flows have
continued to improve following Babcock and Wilcox's emergence
from an asbestos-related bankruptcy in early 2006 as periodic
restructuring charges and asbestos claims have receded (pro-
forma consolidation of Babcock and Wilcox before Feb 2006).

Moody's expects demand for the company's services are likely to
remain firm through the near term.  Good visibility into this
time horizon is provided by the company's strong market
position, large installed base of equipment and recurring nature
of much of its revenue base as well as current backlog levels.  

Moreover, Moody's believes Babcock and Wilcox's growth prospects
may strengthen into the medium term driven by demand for new
power generation and increased customer environmental spending
requirements.  The rating remains tempered by the company's
relatively small size, geographic concentration, and project
execution risk.

Currently strong levels of liquidity and relatively low levels
of leverage provide key offsets to these risks.  Similar to J
Ray McDermott, McDermott International's rating also considers
the potential that it may pursue strategic growth initiatives
through Babcock and Wilcox and BWXT, although Moody's expects
any related expenditures would be undertaken while preserving
its liquidity and capital strengths.

Headquartered in Houston, Texas, McDermott International Inc. is
an international energy services company that provides
engineering, fabrication, installation and facilities management
services to energy and power companies and to the U.S.
government.


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


MECACHROME INTERNATIONAL: Expects EUR45 Million EBITDA for 2008
---------------------------------------------------------------
Mecachrome International Inc. has provided an update to its
fiscal 2008 financial results.

While long-term fundamentals in the aerospace industry remain
positive and Mecachrome's backlog remains strong, continued
delays to key aerospace programs and the Formula 1 engine
development freeze are currently negatively impacting
Mecachrome's results.

Since the company's release of its first quarter 2008 results,
in response to the continued delays affecting certain key
aerospace programs, such as the Airbus A380, the Airbus A400M
and the Boeing 787, certain of the company's customers have
announced longer and more pronounced production delays than
expected.  Furthermore, the Formula 1 freeze in engine
development and the technical regulatory changes announced in
the fall of 2006 continue to impact the company. These measures
have resulted in a lower number of engine deliveries and less
developmental work than initially expected.

In light of these events, for the fiscal year 2008, the company
currently anticipates to achieve revenues of approximately
EUR290 million to EUR310 million and adjusted EBITDA of
approximately EUR40 million to EUR45 million, excluding the
expected one-time restructuring charges associated with the
Phase 1 of the Profitability Improvement Plan (as defined
hereunder).

"In spite of current headwinds affecting our results and growth
plans, I am confident that the fundamentals of our core
businesses are sound," said Gerard Casella, Chairman of the
Board of Directors. "We believe that we have the people, know-
how, technological expertise and strong customer relationships
to respond to these challenges."

While Mecachrome believes that these challenges are temporary,
the deterioration in profitability warrants a right-sizing of
its near-term production capacity and an improvement to its cost
profile.  Within this context, the company is preparing a
corrective action plan aimed at addressing cash flow generation
in both the short and long-term.

The company will discuss its second quarter results in further
detail at the earnings release call on Aug. 13, 2008.

                 About Mecachrome International

Headquartered in Quebec, Canada, Mecachrome International Inc.
-- http://www.mecachrome.com/-- designs, engineers,  
manufactures and assembles complex precision-engineered
components for aircraft and automotive applications, including
aerostructural and aircraft engine components, high-end
automobile engine components and motor racing engines.
The company currently operates 11 state-of-the-art facilities,
principally in France and Canada, and employs over 2,000
employees.

                         *     *     *

Mecachrome International Inc. continues to carry Moody's
Investor Service's B2 Corporate Family and Probability-of-
Default ratings; The company's senior secured credit facilities
carries Ba2 rating while its senior subordinated notes carries
B3 rating.  Moody's said the outlook is negative.

Mecachrome also continues to carry Standard & Poor's Rating
Services B Issuer Default Rating with negative outlook.


MECACHROME INTERNATIONAL: Forms Committee Following CEO's Exit
--------------------------------------------------------------
Mecachrome International Inc.'s Board of Directors has
established a Management Committee to lead the company following
the resignation of Guillaume Casella as President and Chief
Executive Officer.

Mr. Casella is resigning as President and Chief Executive
Officer, as of July 15, 2008, in agreement with the Board
of Directors, in order to pursue other business interests in
Europe.

Gerard Casella, Chairman of the Board of Directors, thanks
Mr. Guillaume Casella for his accomplishments over the last six
years during which he focused his energy and dedication into
Mecachrome's international expansion, from the buildup of its  
manufacturing facilities to its design and engineering offices,
while leading the transition of the head office to Montreal.

In the interim, the Board of Directors has established a
Management Committee, consisting of Arnaud Casella, President of
Mecachrome France, Julio De Sousa, Managing Director and Vice-
President Operations, Mecachrome France and Stephan Yazedjian,
Executive Vice-President and Chief Financial Officer, which will
assume the operational leadership of the company.

The Management Committee, which will report to Mr. Casella,
Chairman, and to the Board of Directors, will provide continuity
of leadership while the company assesses and implements the
Profitability Improvement Plan.

Arnaud Casella has been president of Mecachrome France since
January 2004.  From 1997 through 2003, Mr. Casella was Managing
Director of Mecachrome, with responsibilities that included,
amongst others, managing the Aubigny plant.  Julio De Sousa has
been the Managing Director and Vice-President Operations for
Mecachrome since 1994.  Since joining Mecachrome in 1980,
Mr. De Sousa has held various positions of increasing
responsibility with the company.  

Throughout his tenure at Mecachrome, Mr. De Sousa's
accomplishments include the launch of facilities in Amboise and
Sable-sur-Sarthe, as well as the expansion of the Aubigny plant.
Mr. Yazedjian joined Mecachrome as Executive Vice-President and
Chief Financial Officer in October 2003.

With the extensive experience of theses individuals and their
history in senior positions with Mecachrome, the Board of
Directors firmly believes that the Management Committee has the
operational and financial experience to lead the company on an
interim basis, until a new Chief Executive Officer is appointed.

The Board of Directors, with the support of a renewed management
team, is committed to building a strong platform for continued
growth and delivery of improved free cash flow and shareholder
value over the long-term.

The Board of Directors of Mecachrome will make additional
announcements regarding leadership at Mecachrome in due course.

                 About Mecachrome International

Headquartered in Quebec, Canada, Mecachrome International Inc.
-- http://www.mecachrome.com/-- designs, engineers,  
manufactures and assembles complex precision-engineered
components for aircraft and automotive applications, including
aerostructural and aircraft engine components, high-end
automobile engine components and motor racing engines.
The company currently operates 11 state-of-the-art facilities,
principally in France and Canada, and employs over 2,000
employees.

                         *     *     *

Mecachrome International Inc. continues to carry Moody's
Investor Service's B2 Corporate Family and Probability-of-
Default ratings; The company's senior secured credit facilities
carries Ba2 rating while its senior subordinated notes carries
B3 rating.  Moody's said the outlook is negative.

Mecachrome also continues to carry Standard & Poor's Rating
Services B Issuer Default Rating with negative outlook.


MECACHROME INTL: Commences Profitability Improvement Plan
---------------------------------------------------------
Mecachrome International Inc. has established an action plan
aimed at improving the company's profitability and cash
generation.

The Profitability Improvement Plan will be implemented in two
phases.

The implementation of Phase 1 measures is expected to be
completed by Sept. 30, 2008.  Mecachrome's objective is that
Phase 1 results in recurring annual cost savings of around
EUR10 million on a run-rate basis, starting in the first
quarter of 2009.  Phase 1 measures, which have already been
identified and are currently being implemented, will consist of
selected workforce reductions, tightened expense control and
focused capital expenditures reductions.

Under Phase 2 of the Profitability Improvement Plan, the company
will conduct a thorough review of its business activities with
the objective of repositioning the company to remain competitive
in a challenging market environment, generate positive free cash
flow in a sustainable manner and increase the financial returns
of its activities.  The company expects the Operational Review
to be completed by the end of September 2008, while the measures
to be identified are expected to be implemented beginning in the
fourth quarter of this year. Mecachrome's objective is to
achieve break-even free cash flow in full-year 2009 and to
generate positive free cash flow in a sustainable manner
thereafter.

Mecachrome has requested and received lender commitments for
certain amendments to its Credit Agreement, dated as of
May 17, 2006, that modify the interest coverage ratio and the
fixed charge coverage ratio financial covenants as of
June 30, 2008, and until Dec. 31, 2008, inclusively and
that permit a sale-and-leaseback transaction.

Mecachrome therefore maintains access to the full amount of
EUR75 million available under its revolving credit facility,
which is undrawn at present.  These amendments are not
required in respect of Mecachrome's Senior Subordinated Notes
due 2014.

Mecachrome is pleased of its lenders' support and believes these
amendments will provide the necessary financial flexibility
while it assesses and implements the Profitability Improvement
Plan.

                 About Mecachrome International

Headquartered in Quebec, Canada, Mecachrome International Inc.
-- http://www.mecachrome.com/-- designs, engineers,  
manufactures and assembles complex precision-engineered
components for aircraft and automotive applications, including
aerostructural and aircraft engine components, high-end
automobile engine components and motor racing engines.
The company currently operates 11 state-of-the-art facilities,
principally in France and Canada, and employs over 2,000
employees.

                         *     *     *

Mecachrome International Inc. continues to carry Moody's
Investor Service's B2 Corporate Family and Probability-of-
Default ratings; The company's senior secured credit facilities
carries Ba2 rating while its senior subordinated notes carries
B3 rating.  Moody's said the outlook is negative.

Mecachrome also continues to carry Standard & Poor's Rating
Services B Issuer Default Rating with negative outlook.


MECACHROME INT'L: Moody's Might Cut Ratings on Program Delays
-------------------------------------------------------------
Moody's Investors Service placed all long term ratings of
Mecachrome International Inc under review for possible
downgrade, including the company's B2 corporate family, Ba2
senior secured and B3 senior subordinate ratings.  At the same
time, Moody's affirmed Mecachrome's SGL-4 liquidity rating,
indicating weak liquidity.  

The ratings review follows Mecachrome's announcement that
continued delays in certain of its aerospace programs would
contribute to a shortfall in fiscal 2008 revenues and earnings
at levels meaningfully below Moody's prior expectations.  

While the company believes the challenges are temporary, and
amendments from its lenders over potential covenant violations
have been obtained through 2008, the earnings warning follows
Moody's pre-existing concerns over Mecachrome's liquidity
position and its ability to stem its cash consumptiveness.

The ratings review will focus on

   1) the adequacy of Mecachrome's liquidity profile, including
      an assessment of the company's recently obtained covenant
      amendments;

   2) to what extent the various key aerospace and engine
      programs have each contributed to the shortfall in
      results;

   3) the potential for the company's revenues and earnings to
      rebound into 2009;

   4) the company's plans to achieve targeted costs savings and
      to what degree any reduction in discretionary capex
      amounts may help the company to reach its goal of
      break-even free cash flow in fiscal 2009; and

   5) the company's plans to permanently replace its CEO, who
      resigned in conjunction with the earnings pre-
announcement.

On Review for Possible Downgrade:

Issuer: Mecachrome International Inc.

    * Probability of Default Rating, Placed on Review for
      Possible Downgrade, currently B2

    * Corporate Family Rating, Placed on Review for Possible
      Downgrade, currently B2

    * Senior Subordinated Regular Bond/Debenture, Placed on
      Review for Possible Downgrade, currently B3, 64 - LGD4

    * Senior Secured Bank Credit Facility, Placed on Review for
      Possible Downgrade, currently Ba2, 09 - LGD1

Outlook Actions:

  Issuer: Mecachrome International Inc.

    * Outlook, Changed To Rating Under Review From Negative

              About Mecachrome International

Mecachrome International Inc., headquartered in Montreal Canada,
is a leading designer, manufacturer and assembler of precision-
engineered industrial components and systems, including aircraft
engine components and structural components, and motor racing
engines.   The company has operations in France.


THOMSON SA: Expects EUR220 Million Net Loss for First Half 2008
---------------------------------------------------------------
Thomson SA has disclosed that revenues for the second quarter of
2008 are expected to show a year-on-year decline at constant
currency in the range of 5%-6%, slightly better than the
previously announced guidance of a 6%-8% decline.

The seasonal increase in net debt during the first half is
expected to be lower than during the first half of last year,
reflecting the Group's satisfactory cash-flow performance in the
half. The second half of the year is traditionally Thomson's
stronger cash generation period.

The Group has continued to progress its cost reduction and
simplification measures. The decision to exit the Silicon
Solutions business unit has been implemented. The business will
be treated as a discontinued operation as at 30 June 2008,
contributing to a Group net loss for the first half of 2008
which is expected to be around EUR220 million (of which a loss
of approaching EUR100 million will relate to all discontinued
operations).

As a result, Thomson is re-confirming today that as at 30 June
it expects to meet the terms of the financial covenants
contained in its outstanding privately placed debt instruments,
both in terms of the debt/equity ratio and interest cover. As
expected, covenant headroom as at 30 June 2008 will be lower
than at 31 December 2007. The Group is confident it will rebuild
covenant headroom going forward.

Recent months have also brought a number of important wins with
high profile customers that will generate future revenues,
including the extension of the relationships with Comcast and
NBC Universal announced over the last few days. These wins
underline the strong positions of each of the Group's businesses
in their respective markets.

The Group's results for the first half of 2008 will be reported
in full on July 24, 2008.

Headquartered in Boulogne-Billancourt, France, Thomson SA (NYSE:
TMS, Euronext: TMS) -- http://www.thomson.net/-- provides  
solutions for the creation, management, delivery and access of
video, for the Communication, Media and Entertainment
industries.  The has main offices in Indianapolis, Burbank,
Princeton, London, Rennes, Bangalore and Beijing.
                     

THOMSON SA: Moody's Investor Might Downgrade on Loss Situation
--------------------------------------------------------------
Moody's Investor's Service placed the Ba2 Corporate Family
rating for Thomson S.A. and the B2 rating for Thomson's
perpetual junior subordinated bonds under review for possible
downgrade following the company's publication of a trading
statement on July 10, 2008.

Oliver Giani, Senior Analyst at Moody's said: "Thomson issued a
trading update two weeks prior to the announcement of its
results for the first half of 2008 commenting inter alia on its
financial covenants.  The company clearly stated the expectation
to meet the terms of the financial covenants contained in its
outstanding privately placed debt instruments at its next
computation date and noted a marginally better than expected
sales trend in the second quarter 2008, which Moody's views
positively."  

"However, considering that the loss situation at Thomson
accelerated -- net loss for the first semester of 2008 is
expected to be approximately EUR220 million - when factoring
larger than anticipated exceptional losses - compared to EUR20
million a year ago -- Moody's is concerned that the headroom may
have materially reduced beyond the agency's previous
expectations.  Moody's is also of the opinion that such a  
situation may increase the pressure on the company's decision on
a possible interest deferral on its EUR500 million hybrid to be
paid on Sept. 25."

The review process will focus on the sustainability of Thomson's
business model in the light of adverse market conditions and
consequently on the company's ability to stop and reverse the
negative trend and to deliver a sustained increase in cash-flow
and debt reduction to bring the core credit metrics more in line
with Moody's expectation for the Ba2 rating category.  It will
also consider management's strategy to restructure and simplify
the business in order to improve profitability.

On Review for Possible Downgrade:

  Issuer: Thomson S.A.

    * Probability of Default Rating, Placed on Review for
      Possible Downgrade, currently Ba2

    * Corporate Family Rating, Placed on Review for Possible
      Downgrade, currently Ba2

    * Junior Subordinated Regular Bond/Debenture, Placed on
      Review for Possible Downgrade, currently B2

Outlook Actions:

Issuer: Thomson S.A.

    * Outlook, Changed To Rating Under Review From Negative

The last rating action for Thomson was on April 18, 2008, when
Moody's downgraded the Corporate Family rating for Thomson S.A.
to Ba2 from Ba1 and downgraded the junior subordinated rating
for Thomson's perpetual junior subordinated bonds to B2 from
Ba3.

                      About Thomson S.A.

Headquartered in Paris, France, Thomson provides technology,
systems and service solutions for integrated media and
entertainment companies operating in three business segments.  
In fiscal year 2007 the company generated revenues from
continuing operations of EUR5.6 billion.


* Fitch Says Derivative Use Exposes French Gov't to High Risk
-------------------------------------------------------------
Fitch Ratings says in a special report that the use of
derivative products by French local and regional governments
exposes them to significant risk and could eventually lead the
weakest borrowers to default.

"Although the French regulatory environment is generally strong
for budgetary control and oversight mechanisms, it is
surprisingly weak with respect to derivatives products," says
David Diano, Director in Fitch's International Public Finance
team.  "French regulation has failed to keep pace with market
developments, with the result that, paradoxically, it is easier
for a local government to invest in speculative products than to
buy hedging products."

This report shows how the local government finance market has
evolved from plain vanilla bank products to increasingly complex
financing solutions.  Structured loans, that usually include
highly risky option contracts, have developed over the last few
years and the use of such products by French LRG has grown
rapidly, with an estimated outstanding amount of EUR20 billion-
25 billion.  Although they appear to offer considerably lower
interest cost; the analysis of two examples shows these products
entail significant risks for the borrowers.

The report notes French public accounting standards have yet to
adopt the latest developments in International Accounting
Standards. Local governments are neither required to evaluate
the overall cost of structured products, nor make provisions for
potential losses.  "This has allowed some local governments to
conceal potential losses by taking on new and increasingly risky
funding solutions, creating a downward spiral."

Fitch says the French government could draw lessons from its
immediate neighbors by adopting a more prudent policy.  In
Italy, increasingly restrictive regulations have been put in
place in response to concerns about uncontrolled growth in the
use of derivatives.  In Germany, by contrast, where regulations
are more lax, losses have been uncovered and operators are
awaiting the final outcome of a number of court cases with great
interest.


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


AUTOHAUS DEUTSCHMANN: Claims Registration Period Ends July 28
-------------------------------------------------------------
Creditors of Autohaus Deutschmann GmbH have until July 28, 2008,
to register their claims with court-appointed insolvency manager
Dr. Christian Willmer.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Sept. 2, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Hannover
         Hall 226
         Second Upper Floor
         Service Bldg.
         Hamburger Allee 26
         30161 Hannover
         Germany

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

The insolvency manager can be reached at:

         Dr. Christian Willmer
         Am Walle 5
         31535 Neustadt
         Germany
         Tel: 05032 9831030
         Fax: 05032 9831072

The District Court of Hannover opened bankruptcy proceedings
against Autohaus Deutschmann GmbH on June 2, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Autohaus Deutschmann GmbH
         Hannoversche Strasse 35
         31535 Neustadt
         Germany


BERAK WOHNBAU: Claims Registration Period Ends July 28
------------------------------------------------------
Creditors of Berak Wohnbau GmbH have until July 28, 2008, to
register their claims with court-appointed insolvency manager
Dr. jur. Reinhard Th. Schmid.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Aug. 15, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Aalen
         Hall 0.11
         Ground Floor
         Stuttgarter Strasse 7
         73430 Aalen
         Germany

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

The insolvency manager can be reached at:

         Dr. jur. Reinhard Th. Schmid
         Hasenbergsteige 5
         70178 Stuttgart
         Germany
         Tel: 0711/6690791
         Fax: 0711/6645068
         E-mail: schmid@schiefer-schmid.de  

The District Court of Aalen opened bankruptcy proceedings
against Berak Wohnbau GmbH on June 17, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Berak Wohnbau GmbH
         Koenigsturmstr. 21
         73525 Schwabisch Gmuend
         Germany


CIT GROUP: Board Declares US$0.10 per Share Dividend
----------------------------------------------------
Group Inc.'s Board of Directors has declared a regular quarterly
cash dividend of US$0.10 per share on its outstanding common
stock.  

The common stock dividend is payable on Aug. 29, 2008 to
shareholders of record on August 15, 2008.

CIT's Board of Directors also declared quarterly cash dividends
of:

    * US$0.396875 per share on the Company's Series A preferred
      stock;

    * US$1.297250 per share on the Company's Series B preferred
      stock; and

    * US$1.093750 per share on the Company's Series C preferred
      stock.

The preferred stock dividends are payable on Sept. 15, 2008, to
holders of record on Aug. 29, 2008.

                        About CIT Group

Headquartered in New York City, CIT Group Inc. (NYSE: CIT) --
http://www.cit.com/-- provides financial products and advisory  
services to more than one million customers in over 50 countries
across 30 industries.  A leader in middle market financing, CIT
has more than US$80 billion in managed assets and provides
financial solutions for more than half of the Fortune 1000.  

In March 2008, CIT Group drew upon its US$7.3 billion in
unsecured U.S. bank credit facilities to repay debt maturing in
2008, including commercial paper, and to provide financing to
its core commercial franchises.

The company failed to draw from its normal operational funding
after ratings firms downgraded the bank's debt.


CIT GROUP: Completes Sale of Home Lending Assets for US$1.8 Bln
---------------------------------------------------------------
CIT Group Inc. also announced that it completed the sale of its
Home Lending assets on July 8 and has received substantially all
of the US$1.8 billion of cash proceeds.  

The servicing operation and final cash payment remain on
schedule to close in the first quarter of 2009.

On July 1, 2008, CIT announced its agreement to sell its Home
Lending business, consisting of US$9.3 billion in assets and
related servicing operations, to Lone Star Funds for
US$1.5 billion in cash and the assumption of US$4.4 billion of
outstanding debt and other related liabilities, as well its
approximately US$470 million manufactured housing portfolio to
Vanderbilt Mortgage and Finance, Inc. for approximately
US$300 million.

                        About CIT Group

Headquartered in New York City, CIT Group Inc. (NYSE: CIT) --
http://www.cit.com/-- provides financial products and advisory  
services to more than one million customers in over 50 countries
across 30 industries.  A leader in middle market financing, CIT
has more than US$80 billion in managed assets and provides
financial solutions for more than half of the Fortune 1000.  

In March 2008, CIT Group drew upon its US$7.3 billion in
unsecured U.S. bank credit facilities to repay debt maturing in
2008, including commercial paper, and to provide financing to
its core commercial franchises.

The company failed to draw from its normal operational funding
after ratings firms downgraded the bank's debt.


EPICEPT CORP: Prices Public Offering of 2 Million Shares
--------------------------------------------------------
EpiCept Corporation priced the public offering of 2 million
shares of its common stock at US$0.25 per share and five-year
warrants to purchase up to 2 million shares of common stock at
an exercise price of US$0.39 per share.  EpiCept will receive
approximately
US$0.5 million in net proceeds from the offering.

As reported in the Troubled Company Reporter on June 30, 2008,
EpiCept disclosed a public offering of up to 10 million shares
of its common stock, par value US$0.0001 per share, warrants to
purchase up to 10 million shares of its common stock and the
issuance of such shares upon exercise of the warrants.  EpiCept
intends to use the net proceeds it receives to meet its working
capital needs and general corporate purposes through July 2008
and to pay certain fees owed to Hercules Technology Growth
Capital Inc.

In July 8, 2008, TCR  said that EpiCept Corporation priced a
public offering of approximately 8 million shares of its common
stock at US$.25 per share and five-year warrants to purchase up
to approximately 8 million shares of common stock at an exercise
price of US$.39 per share.  EpiCept will receive approximately
US$1.9 million in net proceeds from the offering.

Rodman & Renshaw LLC, a subsidiary of Rodman & Renshaw Capital
Group Inc. acted as the exclusive placement agent for the
offering.

The proposed public offering is being made pursuant to an
effective registration statement, and may be made only by means
of a prospectus and prospectus supplement.  A copy of the
prospectus supplement relating to the common stock and warrants
can be obtained from:

    Rodman & Renshaw LLC
    1270 Avenue of the Americas
    New York, NY 10020
    Tel (212) 356-0549

                    About EpiCept Corporation

Based in Tarrytown, New York, EpiCept Corporation (NASDAQ:EPCT)
-- http://www.epicept.com/-- is a specialty pharmaceutical  
company focused on the development of pharmaceutical products
for the treatment of cancer and pain.  The company has a
portfolio of five product candidates in active stages of
development.  It includes an oncology product candidate
submitted for European registration, two oncology compounds, a
pain product candidate for the treatment of peripheral
neuropathies and another pain product candidate for
the treatment of acute back pain.  The two wholly owned
subsidiaries of the company are Maxim, based in San Diego,
California, and EpiCept GmbH, based in Munich, Germany, which
are engaged in research and development activities.

EpiCept Corp.'s consolidated balance sheet at March 31, 2008,
showed a stockholders' deficit of US$15,570,000, compared to a
deficit of US$14.1 million at Dec. 31, 2007.

                      Going Concern Doubt

Deloitte & Touche LLP, in Parsippany, New Jersey, expressed
substantial doubt about EpiCept Corp.'s ability to continue as a
going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2007.  The
auditing firm pointed to the company's recurring losses from
operations and stockholders' deficit.

The company disclosed in its Form 10-Q for the first quarter
ended March 31, 2008, that to date it has not generated any
meaningful revenues from the sale of products and may not
generate any such revenues for a number of years, if at all.  As
a result, the company has an accumulated deficit of
US$176,926,000 as of March 31, 2008, and may incur operating
losses for a number of years.


H & T TEXTILIEN: Claims Registration Period Ends July 30
--------------------------------------------------------
Creditors of H & T Textilien GmbH have until July 30, 22008, to
register their claims with court-appointed insolvency manager
Jan H. Wilhelm.

Creditors and other interested parties are encouraged to attend
the meeting at 9:40 a.m. on Aug. 27, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         Fourth Floor Annex
         Civil Justice Bldg.
         Sievkingplatz 1
         20355 Hamburg
         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:

         Jan H. Wilhelm
         Albert-Einstein-Ring 11/15
         22761 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against H & T Textilien GmbH on July 6, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         H & T Textilien GmbH
         Attn: Dr. Hans-Wilhelm Tiemeyer, Manager
         Hoelertwiete 3
         21073 Hamburg
         Germany


HCV - BRANDSCHUTZ: Claims Registration Period Ends July 30
----------------------------------------------------------
Creditors of HCV - Brandschutz GmbH have until July 30, 2008, to
register their claims with court-appointed insolvency manager
Dr. Paul Fink .

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 13, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Duesseldorf
         Meeting Hall A 341
         Fourth Floor
         Muehlenstrasse 34
         40213 Duesseldorf
         Germany

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

The insolvency manager can be reached at:

         Dr. Paul Fink
         Koenigsallee 33
         40212 Duesseldorf.Forderungen
         Germany

The District Court of Duesseldorf opened bankruptcy proceedings
against HCV - Brandschutz GmbH on June 26, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         HCV - Brandschutz GmbH
         Glashuettenstrasse 33
         40627 Duesseldorf
         Germany

         Attn: Ludger Verhuelsdonk
         Glockenspitz 288
         47809 Krefeld
         Germany


HI-ELEKTRONIK GMBH: Claims Registration Period Ends July 30
-----------------------------------------------------------
Creditors of HI-Elektronik GmbH have until July 30, 2008, to
register their claims with court-appointed insolvency manager
Dr. Jan Markus Plathner.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Sept. 10, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Darmstadt
         Hall 4.310
         Building D
         Mathildenplatz 15
         64283 Darmstadt
         Germany

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

The insolvency manager can be reached at:

         Dr. Jan Markus Plathner
         Lyoner Strasse 14
         60528 Frankfurt
         Germany
         Tel: 069/962334-0
         Fax: 069/962334-22
         E-mail: m.plathner@brinkmann-partner.de

The District Court of Darmstadt opened bankruptcy proceedings
against HI-Elektronik GmbH on June 15, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         HI-Elektronik GmbH
         Attn: Stefan Schwinn, Manager
         Birkenrain 10-12
         64756 Mossautal
         Germany


MEDIENKOMMUNIKATION GMBH: Claims Registration Ends July 30
----------------------------------------------------------
Creditors of Medienkommunikation GmbH & Co. KG have until
July 30, 2008, to register their claims with court-appointed
insolvency manager Dr. Christoph Munz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Sept. 9, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Dresden
         Hall D132
         Olbrichtplatz 1
         01099 Dresden
         Germany

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

The insolvency manager can be reached at:

         Dr. Christoph Munz
         Gustav-Adolf-Strasse 6b
         01219 Dresden
         Germany
         Web site: http://ww.munz-anwaelte.de/

The District Court of Dresden opened bankruptcy proceedings
against Medienkommunikation GmbH & Co. KG on July 2, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Medienkommunikation GmbH & Co. KG
         Lingnerallee 3
         01069 Dresden
         Germany

         Attn: Dieter Teraske, Manager
         Neue Marktstrasse 3
         31785 Hameln
         Germany


OCEAN ZONE: Claims Registration Period Ends July 30
---------------------------------------------------
Creditors of Ocean Zone Dive Store GmbH have until July 30,
2008, to register their claims with court-appointed insolvency
manager Dr. Hans von Gleichenstein.

Creditors and other interested parties are encouraged to attend
the meeting at 9:25 a.m. on Aug. 20, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich
         Germany

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

The insolvency manager can be reached at:

         Dr. Hans von Gleichenstein
         Rottmannstr. 11a
         80333 Muenchen
         Germany               
         Tel: 089/5427300
         Fax: 089/54273015

The District Court of Munich opened bankruptcy proceedings
against Ocean Zone Dive Store GmbH on June 25, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Ocean Zone Dive Store GmbH
         Attn: Klaus Dieter Stachs, Manager
         Auenstr. 11a
         85244 Roehrmoos
         Germany


PFLEIDERER AG: Completes EUR165 Million Bond Issue
--------------------------------------------------
Pfleiderer AG disclosed that the placement of a
EUR165 million corporate bond through a banking consortium
managed by WestLB and HSBC Trinkhaus & Burkhardt and was
recently closed. With the successful placement, the company is
optimizing its financial liabilities through a prolongation of
maturity.

The funds resulting from the bond are to be primarily applied to
improve the Group's liquidity and financial flexibility
supporting Pfleiderer's growth strategy. They will be used to
finance investments in Russian and the USA. The proceeds will
also be partially used to reduce Pfleiderer's liabilities from
the syndicated credit.

            Balance Sheet Quality to Improve in 2008

At the end of the first quarter, the Group had an equity ratio
of 41.1%.  The ratio of net financial debt to equity, often
referred to as gearing, was 81% at the end of March 2008.  The
Group plans to improve its balance sheet quality by the end of
this year.  The equity ratio is to surpass its level of the end
of 2007 (41.7%) and net debt is to be reduced.

                         About Pfleiderer

Headquartered in Neumarkt, Germany, Pfleiderer AG --
http://www.pfleiderer.com/-- manufactures engineered woods and
infrastructure products through its subsidiaries.  The Company
produces wood-based panels for furniture and interior fittings,
track systems for urban and intercity rail networks, and a range
of poles and towers for energy and commercial infrastructures.

                          *     *     *

Pfleiderer AG continues to carry Ba2 Corporate Family rating
with stable outlook from Moody's Investor Service.

The company also continues to carry BB+ Issuer Default and B
short-term ratings from Standard & Poor's.


PFLEIDERER AG: To Build EUR144 Million Plant in Russia
------------------------------------------------------
Pfleiderer AG will invest EUR144 million to construct a
fiberboard manufacturing plant in Veliky Novgorod, Russia, RIA
Novosti reports citing a source privy to the company.

The new site will be close to Pfleiderer's particleboards
manufacturing site in the area, RIA Novosti relates.

According to the source, the first stage of the plant will   
commissioned in the third quarter of 2009.  It would have an
initial capacity of around 500,000 cubic meters of raw
fiberboards for the furniture industry and the construction
sector.

                         About Pfleiderer

Headquartered in Neumarkt, Germany, Pfleiderer AG --
http://www.pfleiderer.com/-- manufactures engineered woods and
infrastructure products through its subsidiaries.  The Company
produces wood-based panels for furniture and interior fittings,
track systems for urban and intercity rail networks, and a range
of poles and towers for energy and commercial infrastructures.

                          *     *     *

Pfleiderer AG continues to carry Ba2 Corporate Family rating
with stable outlook from Moody's Investor Service.

The company also continues to carry BB+ Issuer Default and B
short-term ratings from Standard & Poor's.


SONNENBACKER GMBH: Claims Registration Period Ends July 29
----------------------------------------------------------
Creditors of Sonnenbacker GmbH & Co. KG have until July 29,
2008, to register their claims with court-appointed insolvency
manager Uwe Kuhmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 13, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Essen
         Meeting Hall 293
         Second Floor
         Zweigertstr. 52
         45130 Essen
         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:

         Uwe Kuhmann
         Friedrich-List-Str. 20
         45128 Essen
         Germany

The District Court of Essen opened bankruptcy proceedings
against Sonnenbacker GmbH & Co. KG on June 1, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Sonnenbacker GmbH & Co. KG
         Braukamperstr. 107
         45899 Gelsenkirchen
         Germany


SPECTAVOLA GMBH: Claims Registration Period Ends July 29
--------------------------------------------------------
Creditors of Spectavola GmbH & Co. KG have until July 29, 2008,
to register their claims with court-appointed insolvency manager
Dr. J. Blersch.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Aug. 19, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Wiesbaden
         Hall E 36 A
         Third Floor
         Building E
         Moritzstrasse 5
         65185 Wiesbaden
         Germany

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

The insolvency manager can be reached at:

         Dr. J. Blersch
         c/o Blersch/Goetsch/Partner Insolvenzverwaltungen
         Taunusstrasse 7a
         65183 Wiesbaden
         Germany
         Tel: 0611/180 89-100
         Fax: 0611/180 89 -189
         E-mail: mail@bgp-insol.de

The District Court of Wiesbaden opened bankruptcy proceedings
against Spectavola GmbH & Co. KG on May 19, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Spectavola GmbH & Co. KG
         Steinbachstr. 1A
         65510 Huenstetten
         Germany


STRIKE SPORT: Claims Registration Period Ends July 29
-----------------------------------------------------
Creditors of Strike Sport- & Freizeitbowling GmbH have until
July 29, 2008, to register their claims with court-appointed
insolvency manager Christian Graf Brockdorff.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 2, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt (Oder)
         Hall 401
         Muellroser Chaussee 55
         15236 Frankfurt (Oder)
         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:

         Christian Graf Brockdorff
         Friedrich-Ebert-Strasse 36
         14469 Potsdam
         Germany

The District Court of Frankfurt (Oder) opened bankruptcy
proceedings against Strike Sport- & Freizeitbowling GmbH on June
2, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Strike Sport- & Freizeitbowling GmbH
         Berliner Strasse 8
         15537 Erkner
         Germany


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


ALITALIA SPA: Italy Submits Response to Commission over Loan
------------------------------------------------------------
The Italian government has submitted its response on the
European Commission's inquiry into its EUR300 million loan grant
to Alitalia S.p.A., Thomson Financial News reports.

The Commission launched an investigation on June 11, 2008, as to
the legality of Italy's EUR300 million loan grant to Alitalia in
aid to avert bankruptcy.  Under European rules, Alitalia is not
allowed another aid until 2011 as it has already benefited from
rescue and restructuring aid.

The Commission declines to comment on the response until it has
concluded the investigation.

                          About Alitalia

Based in Rome, 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,
including United States, Canada, Japan and Argentina.  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 posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.



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


BK BUSINESS: Creditors Must File Claims by September 2
------------------------------------------------------  
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP BK Business Service insolvent.

Creditors have until Sept. 2, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda
         Aiteke bi Str. 29
         Kyzylorda
         Kazakhstan


DELDAL LLP: Claims Deadline Slated for August 22
------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Deldal insolvent.

Creditors have until Aug. 22, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Room 228
         Auelbekov Str. 139a
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (7162) 25-79-32


INTER LES: Claims Filing Period Ends August 22
----------------------------------------------  
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Inter Les insolvent.

Creditors have until Aug. 22, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Room 228
         Auelbekov Str. 139a
         Kokshetau
         Akmola
         Kazakhstan
         Tel: 8 (7162) 25-79-32


KYZYLORDA AGRO: Creditors' Claims Due on September 2
----------------------------------------------------  
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP Kyzylorda Agro Prom Technika insolvent.

Creditors have until Sept. 2, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kyzylorda
         Aiteke bi Str. 29
         Kyzylorda
         Kazakhstan


LABEAN LLP: Claims Registration Ends August 22
----------------------------------------------  
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Labean insolvent.

Creditors have until Aug. 22, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Office 203
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 57-83-69


MET PROM: Creditors Must File Claims by September 2
---------------------------------------------------  
LLP Met Prom Torg has declared insolvency.  Creditors have until
Sept. 2, 2008, to submit written proofs of claims to:

         LLP Met Prom Torg
         Abdirov ave. 36/3
         Karaganda
         Kazakhstan


PETRO TRANS: Claims Deadline Slated for August 26
-------------------------------------------------  
LLP Petro Trans Com Limited has declared insolvency.  Creditors
have until Aug. 26, 2008, to submit written proofs of claims to:

         LLP Petro Trans Com Limited
         Marechek Str. 14a
         Almaty
         Kazakhstan


STROY ALLIANCE-1: Claims Filing Period Ends September 2
-------------------------------------------------------

The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Construction Company Stroy Alliance-1 insolvent.

Creditors have until Sept. 2, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Shelehov Str. 187a-32
         Almaty
         Tel: 8 (7272) 32-83-39
              8 701 460 17-71


TSERERA 2030: Creditors' Claims Due on August 22
------------------------------------------------  
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Tserera 2030 insolvent.

Creditors have until Aug. 22, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Office 203
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 57-83-69


UJDOR SERVICE: Claims Registration Ends September 2
---------------------------------------------------  
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Ujdor Service insolvent.

Creditors have until Sept. 2, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Shelehov Str. 187a-32
         Almaty
         Tel: 8 (7272) 32-83-39
              8 701 460 17-71


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


ALA-TOO TRANS LLC: Creditors' Proofs of Claim Due by Sept. 2
------------------------------------------------------------
LLC Ala-too Trans has declared insolvency.  Creditors have until
Sept. 2, 2008 to submit written proofs of claim to:

         LLC Ala-too Trans
         Micro District 1, 12-29
         Tokmok
         Chui
         Kyrgyzstan


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


TEXNIKA FINANCE: Fitch Rates US$26MM 12.75% Unsecured Loan 'B-'
---------------------------------------------------------------
Fitch Ratings has assigned Texnika Finance B.V.'s US$26 million
12.75% privately placed senior unsecured loan participation
notes due 2009 a Long-term 'B-' rating and a Recovery Rating of
'RR4'.

The notes are to be used solely for financing a loan to
Azerbaijan's Technikabank, rated Long-term Issuer Default 'B-'
with Stable Outlook, Short-term IDR 'B', Individual 'D/E',
Support '5' and Support Rating Floor 'No Floor'.

The notes have the same terms and conditions as a eurobond
issue, which the bank had initially intended to place in May-
June 2008.

At end of first quarter 2008, TB was the fourth-largest bank in
Azerbaijan by assets, with a 6% market share in banking system
assets.  TB is currently majority-owned (75%) by World Wines,
with Etibar Aliyev and Kazimir Investment Caspian Fund holding
the remaining 15% and 10%, respectively.  Fitch notes the
shareholder structure of the bank changed frequently during 2007
and that further changes are likely.


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


ARCTIC FOOD: Court Names A. Starichkov as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Murmansk appointed A. Starichkov as
Insolvency Manager for CJSC Arctic Food Company.  He can be
reached at:

         A. Starichkov
         Post User Box 39
         183038 Murmansk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A42-451/2008.

The Court is located at:

         The Arbitration Court of Murmansk
         Knipovicha Str. 20
         Murmansk
         Russia

The Debtor can be reached at:

         CJSC Arctic Food Company
         Rybnyj Port
         Murmansk
         Russia


DORA OJSC: Creditors Must File Claims by August 17
--------------------------------------------------
Creditors of OJSC Dora have until Aug. 17, 2008, to submit
proofs of claim to:

         E. Murashkina
         Insolvency Manager
         Promyshlennyj Proezd 1
         Saransk
         Mordoviya
         Russia

The Arbitration Court of Mordoviya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A39-3731/2007-139/7.

The Court is located at:

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

The Debtor can be reached at:

         OJSC Dora
         Kirzavoda Str. 23
         Saransk
         Mordoviya
         Russia


MOL-PRODUCT-VOLOGDA: Creditors Must File Claims by August 17
------------------------------------------------------------
Creditors of LLC Mol-Product-Vologda have until Aug. 17, 2008,
to submit proofs of claim to:

         S. Chernyaev
         Insolvency Manager
         Post User Box 45
         191015 St. Petersburg
         Russia

The Arbitration Court of Vologda commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A13-10769/2007.

The Court is located at:

         The Arbitration Court of Vologda
         Hall 4
         Gertsena Str. 1a
         Vologda
         Russia

The Debtor can be reached at:

         LLC Mol-Product-Vologda
         Room 421
         Chelyuskintsev Str. 9
         166001 Vologda
         Russia


NEO-KHIM LLC: Creditors Must File Claims by August 17
-----------------------------------------------------
Creditors of LLC Neo-Khim have until Aug. 17, 2008, to submit
proofs of claim to:

         E. Kasatkin
         Insolvency Manager
         Post User Box 15626
         443016 Samara
         Russia

The Arbitration Court of Samara commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A55-17843/2007.

The Court is located at:

         The Arbitration Court of Samara
         Avrory Str. 148
         443045 Samara
         Russia

The Debtor can be reached at:

         LLC Neo-Khim
         Dzerzhinskogo Str. 98a
         Tolyatii
         Russia


NOMOS-BANK: Fitch Affirms Ratings; Changes Outlook to Positive
--------------------------------------------------------------
Fitch Ratings has changed the Outlooks on Russia-based Nomos
Bank's Long-term Issuer Default rating and National Long-term
rating to Positive from Stable.  In addition, the bank's
National Long-term rating is upgraded to 'A(rus)' from 'A-
(rus)'.  Nomos' other ratings are affirmed at Long-term IDR
'B+', Short-term IDR 'B', Individual 'D' and Support '5'.  Fitch
has also revised the Support Rating Floor to 'B-' from 'No
Floor'.

"The Positive Outlook reflects the continued broadening and
regional diversification of the bank's customer franchise, as
well as its extended track record of sound performance and
acceptable asset quality.  The new Outlook also reflects the
gradually improving operating environment and prospects for
larger Russian banks," say Vladimir Markelov, Associate Director
of Fitch's financial institutions team in Moscow.

The recent entry of foreign shareholders might also bring
technical expertise, particularly in retail lending.  
Furthermore, the burden of capital and, potentially, liquidity
support could be shared among a wider shareholder group.

On the other hand, the ratings remain constrained by refinancing
risk stemming from the bank's dependence on short-term domestic
funding.  The ratings also consider Nomos's loan concentration,
market risks arising from its sizable trading portfolio, and
risks associated with rapid asset growth, including potential
worsening of asset quality and pressure on capital.  There is
also some uncertainty over the future scope and nature of the
business relationship between the foreign and Russian
shareholders, both in respect to Nomos and other assets.

A lengthening of the bank's funding maturity profile and further
franchise expansion, while maintaining its good asset quality
and adequate capitalisation could result in an upgrade.  A
revision of the Outlook back to Stable or downward pressure on
the ratings might arise from either a weakening of the liquidity
profile or asset quality problems.

The revision of the Support Rating Floor reflects Fitch's view
that, in case of need, there should be a greater probability of
support from the Russian authorities in the light of the bank's
increased size and strengthened regional franchise.  However,
the Support Rating Floor remains below the 'B' Support Rating
Floors of other Russian banks - OJSC Alfa-Bank ('BB'/Stable),
MDM Bank ('BB'/Stable), Promsvyazbank ('B+'/Positive) and Bank
Uralsib ('B+'/Stable) - given their somewhat greater franchise
and systemic importance.

At end of first quarter 2008, Nomos ranked 14th by assets among
Russian banks (fifth among privately, domestically owned
institutions) with a 1% market share (0.4% in retail deposits).  
Its existing network comprises 18 branches, around 30 outlets
and one regional bank.  Nomos is 50.1%- controlled by six local
individuals with long-standing business ties, with the rest
owned by two foreign shareholders, the Czech-based PPF and
Slovakia-based J&T group.  It is primarily a corporate bank that
has close relationships with some of Russia's large and mid-
sized companies in the mining and energy sectors.  A broadening
of the corporate customer base and retail lending expansion are
being pursued, particularly with the assistance of foreign
shareholders.


OTECHESTVENNYE OAO: Fitch Assigns 'B-' LT Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has assigned Moscow-based generic drug
manufacturer, OAO Otechestvennye Lekarstva, a Long-term Issuer
Default rating of 'B-' and a National Long-term rating of 'BB-
(rus)'.  The Outlooks for both ratings are Negative.

The ratings reflect OL's positioning as a small-sized
pharmaceutical company in the Russian pharmaceutical industry,
which shows strong underlying fundamentals.  The ratings are
supported by the group's diversified product portfolio, with no
significant expiry of substance patents before 2011.  Negative
rating factors are the company's over-reliance on the Russian
healthcare system, where about 80% of fiscal year 2008 revenues
were generated, a relatively small R&D budget, which makes it
difficult for the company to compete with large originator drug
companies, as well as the group's relatively low profitability.

In financial year 2007 management accounts, OL's operating
EBITDA margin was 13.2% (financial yea 2006: 14.4%).  Like many
of its peers, OL aims to modernize its production facilities
through the construction of a new plant (for RUR1.5 billion) to
enhance the export potential and quality of production, as well
as to increase cost effectiveness.

The Negative Outlook reflects significant uncertainty regarding
the company's ability to predict its working capital.  Fitch
notes calculated debt protection measures in OL's fiscal year
2008 management accounts differed significantly from
management's fiscal year 2008 projections provided to the agency
in December 2007.  The main driver was unforeseen working
capital outflows, some of which appeared to be outside
management's control.  This has resulted in a total debt/EBITDA
of 5.3x for fiscal year 2008, significantly higher than the 3.6x
projected by the company.  

The Negative Outlook could be reversed to Stable and the
National Long-term rating upgraded to 'BB' if the company meets
its leverage targets and makes tangible progress towards break-
even cash flow from operations.  The rating might be downgraded
in the event of refinancing problems, signaling heightened
liquidity risk.

To fund the new plant, OL plans to get a seven-year RUR1.2
billion loan from Sberbank in 2009.  Additionally, the group is
looking at options to refinance the outstanding RUR271 million
of a RUR1.3 billion bond (of which RUR1.021 billion is repaid),
due in February 2009, and to refinance existing short-term debt.

According to management accounts at FYE07, OL's net debt/EBITDA
coverage was 5x (FY06: 3.6x); the company expects it to decrease
to below 4x at FYE08.  The group's EBITDA net interest cover was
2.9x (FY06: 3.4x).


PFLEIDERER AG: To Build EUR144 Million Plant in Russia
------------------------------------------------------
Pfleiderer AG will invest EUR144 million to construct a
fiberboard manufacturing plant in Veliky Novgorod, Russia, RIA
Novosti reports citing a source privy to the company.

The new site will be close to Pfleiderer's particleboards
manufacturing site in the area, RIA Novosti relates.

According to the source, the first stage of the plant will   
commissioned in the third quarter of 2009.  It would have an
initial capacity of around 500,000 cubic meters of raw
fiberboards for the furniture industry and the construction
sector.

                        About Pfleiderer

Headquartered in Neumarkt, Germany, Pfleiderer AG --
http://www.pfleiderer.com/-- manufactures engineered woods and
infrastructure products through its subsidiaries.  The Company
produces wood-based panels for furniture and interior fittings,
track systems for urban and intercity rail networks, and a range
of poles and towers for energy and commercial infrastructures.

                          *     *     *

Pfleiderer AG continues to carry Ba2 Corporate Family rating
with stable outlook from Moody's Investor Service.

The company also continues to carry BB+ Issuer Default and B
short-term ratings from Standard & Poor's.


ROSTEK LLC: Creditors Must File Claims by August 17
---------------------------------------------------
Creditors of LLC Rostek have until Aug. 17, 2008, to submit
proofs of claim to:

         D. Myzalin
         Insolvency Manager
         Office 8036
         Nesterova Str. 9
         603005 Nizhniy Novgorod
         Russia

The Arbitration Court of Nizhniy Novgorod commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A43-5472/2008, 36-75.

The Court is located at:

         The Arbitration Court of Nizhniy Novgorod
         Kremlin 9
         603082 Nizhniy Novgorod
         Russia

The Debtor can be reached at:

         LLC Rostek
         Gagarina Pr. 40
         603057 Nizhniy Novgorod
         Russia


STROY-MONTAZH: Creditors Must File Claims by August 14
------------------------------------------------------
Creditors of LLC Stroy-Montazh have until Aug. 14, 2008, to
submit proofs of claim to:

         M. Shatskiy
         Insolvency Manager
         Br. Korostylevykh Str. 139-4
         443001 Samara
         Russia

The Arbitration Court of Samara commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A55-2538/2007.

The Court is located at:

         The Arbitration Court of Samara
         Avrory Str. 148
         443045 Samara
         Russia

The Debtor can be reached at:

         LLC Stroy-Montazh
         Sovetskoy Armii Str. 126
         443090 Samara
         Russia


TRANS-STROY-MEKHANIZATSIYA: Claims Filing Period Ends Aug. 17
-------------------------------------------------------------
Creditors of OJSC Trans-Stroy-Mekhanizatsiya have until
Aug. 17, 2008, to submit proofs of claim to:

         D. Guzeev
         Insolvency Manager
         Post User Box 5021
         656052 Barnaul-52
         Russia

The Arbitration Court of Novosibirsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A45-13237/07-4/53.

The Court is located at:

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

The Debtor can be reached at:

         OJSC Trans-Stroy-Mekhanizatsiya
         Vokzalnaya Magistral Str. 15
         630099 Novosibirsk
         Russia


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


AGIA INFORMATIK: Proofs of Claim Filing Deadline August 7
---------------------------------------------------------  
Creditors owed money by LLC Agia Informatik are requested to
file their proofs of claim by Aug. 7, 2008, to:

         Marc Winzap, Liquidator
         JSC Bellerive Financial Services
         Dufourstr. 101
         8034 Zurich
         Switzerland
         Tel: 043 488 51 13

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on April 24, 2008.


JURSERVICE JSC: Creditors' Proofs of Claim Due by Aug. 15
---------------------------------------------------------  
Creditors owed money by JSC Jurservice are requested to file
their proofs of claim by Aug. 15, 2008, to:

         Christoph Leemann, Liquidator
         JSC Schweizerische Mobiliar Holding
         Bundesgasse 35
         3011 Bern
         Switzerland

The company is currently undergoing liquidation in Bern.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on May 9, 2008.


PDX LLC: July 31 Set as Deadline to File Proofs of Claim
--------------------------------------------------------
Creditors owed money by LLC PDX are requested to file their
proofs of claim by July 31, 2008, to:

         JSC Controlla Treuhand
         Bahnhofplatz 65
         8501 Frauenfeld
         Switzerland

The company is currently undergoing liquidation in Zell.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on April 16, 2008.


PERSONALPOINT LLC: Deadline to File Proofs of Claim Set Aug. 4
--------------------------------------------------------------  
Creditors owed money by LLC PersonalPoint are requested to file
their proofs of claim by Aug. 4, 2008, to:

         JSC Provida Management Services
         Thurgauerstrasse 66
         8050 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on May 13, 2008.


PROTEKTA ALLGEMEINE: Creditors' Proofs of Claim Due by Aug. 15
--------------------------------------------------------------
Creditors owed money by JSC Protekta Allgemeine are requested to
file their proofs of claim by Aug. 15, 2008, to:

         Mr. Christoph Leemann
         Liquidator
         Bundesgasse 35
         3011 Bern
         Switzerland


The company is currently undergoing liquidation in Bern.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on May 9, 2008.


R HUBER: July 31 Set as Deadline to File Proofs of Claim
--------------------------------------------------------  
Creditors owed money by JSC R. Huber are requested to file their
proofs of claim by July 31, 2008, to:

         Trust Company Graf Treuhand
         8494 Bauma
         Switzerland

The company is currently undergoing liquidation in Uster.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on Aug. 29, 1997.

The Debtor can be reached at:

         JSC Rene Huber
         Florastrasse 15
         8620 Wetzikon
         Switzerland


RELAAX LLC: Creditors Must File Proofs of Claim by Aug. 13
----------------------------------------------------------
Creditors owed money by LLC Relaax are requested to file their
proofs of claim by Aug. 13, 2008, to:

         Mr. Markus Vesti
         Liquidator
         via Maistra
         7552 Vulpera
         Switzerland

The company is currently undergoing liquidation in Laax.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on May 13, 2008.


SHALIMAR TANDOORI: Proofs of Claim Filing Deadline Set July 31
--------------------------------------------------------------  
Creditors owed money by LLC Shalimar Tandoori are requested to
file their proofs of claim by July 31, 2008, to:

         LLC Shalimar Tandoori
         Kantonsstrasse 74
         6048 Horw
         Switzerland

The company is currently undergoing liquidation in Horw.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on May 5, 2008.


STEFEM JSC: Deadline to File Proofs of Claim Set Sept. 5
--------------------------------------------------------
Creditors owed money by JSC STEFEM are requested to file their
proofs of claim by Sept. 5, 2008, to:

         JSC STEFEM
         Baarerstrasse 43
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on April 30, 2008.


TRAVEL IN: Creditors Have Until July 31 to File Proofs of Claim
---------------------------------------------------------------  
Creditors owed money by JSC Travel In are requested to file
their proofs of claim by July 31, 2008, to:

         Trust Company Graf Treuhand
         Mail Box 181
         8494 Bauma
         Switzerland

The company is currently undergoing liquidation in Kilchberg.  
The decision about liquidation was accepted at an extraordinary
shareholder's meeting held on April 11, 2008.


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


AUTO-TEMA LLC: Creditors Must File Claims by August 2
-----------------------------------------------------
Creditors of LLC Auto-Tema (code EDRPOU 32769443) have until
Aug. 2, 2008, to submit 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 on June 18, 2008.
The case is docketed as 49/104-b.

The Debtor can be reached at:

         LLC Auto-Tema
         Borispol St. 9 b. 61
         02099 Kiev
         Ukraine


CRONOS-INVEST LLC: Claims Filing Deadline Set August 2
------------------------------------------------------
Creditors of LLC Cronos-Invest (code EDRPOU 30505761) have until
Aug. 6, 2008, to submit proofs of claim to:

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

The Economic Court of Zaporozhje commenced bankruptcy
supervision procedure on the company on June 18, 2008.  The case
is docketed as 16/138/08.

The Debtor can be reached at:

         LLC Cronos-Invest
         Pravda Avenue 53
         69000 Zaporozhje
         Ukraine


CONCENTRATING EQUIPMENT: Creditors Must File Claims by August 2
---------------------------------------------------------------
Creditors of State Enterprise State Development Establishment of
Concentrating Equipment (code EDRPOU 04816112) have until
Aug. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
June 9, 2008.  The case is docketed as B 29/86-08.

The Debtor can be reached at:

         State Enterprise State Development Establishment of
         Concentrating Equipment
         Chkalov St. 11
         49029 Dnipropetrovsk
         Ukraine


DNIPRO: Creditors Must File Claims by August 2
----------------------------------------------
Creditors of State Enterprise State Kiev Research Plant Dnipro
have until Aug. 2, 2008, to submit proofs of claim to:

         S. Ilnitsky
         Liquidator
         Surikov St. 3
         Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on July 2, 2008.
The case is docketed as 43/517.

The court is located at:

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


MARINORD: Creditors Must File Claims by August 2
------------------------------------------------
Creditors of Marinord (code EDRPOU 20344368) have until
Aug. 2, 2008, to submit proofs of claim to:

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on June 10, 2008.
The case is docketed as 27/297b.

The Debtor can be reached at:

         Marinord
         Lunin Avenue 99
         Admiral Mariupol
         87510 Donetsk
         Ukraine


PROGRESS LLC: Claims Filing Deadline Set August 2
-------------------------------------------------
Creditors of Agricultural LLC Progress (code EDRPOU 30868806)
have until Aug. 2, 2008, to submit proofs of claim to:

         The Economic Court of Hmelnitskij
         Nezalezhnosti Square 1
         29000 Hmelnitskij
         Ukraine

The Economic Court of Hmelnitskiy commenced bankruptcy
supervision procedure on the company on June 13, 2008.  The case
is docketed as 3/135-B.

The Debtor can be reached at:

         Agricultural LLC Progress
         District Hristovka
         Iziaslavsky
         Hmelnitskij
         Ukraine


TRADE BUILDING: Creditors Must File Claims by August 2
------------------------------------------------------
Creditors of LLC Firm Industrial Trade Building (code EDRPOU
32069676) have until Aug. 2, 2008, to submit 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 on June 18, 2008.
The case is docketed as 49/103-b.

The Debtor can be reached at:

         LLC Firm Industrial Trade Building
         Borispol St. 9 b. 61
         02099 Kiev
         Ukraine


URA-BOOK CJSC: Claims Filing Deadline Set August 2
--------------------------------------------------
Creditors of CJSC Ura-Book (code EDRPOU 32205883) have until
Aug. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced the bankruptcy supervision
procedure on the company on May 28, 2008.  The case is docketed
as 23/187-b.

The Debtor can be reached at:

         CJSC Ura-Book
         Moscow Avenue 6
         04073 Kiev
         Ukraine


VEL LLC: Claims Filing Deadline Set August 2
--------------------------------------------
Creditors of LLC Vel (code EDRPOU 32348541) have until
Aug. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced the bankruptcy supervision
procedure on the company on May 12, 2008.  The case is docketed
as 44/15-b.

The Debtor can be reached at:

         LLC Vel
         Reuters St. 35A
         01034 Kiev
         Ukraine


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


BAA LIMITED: Proposes to Offer Debt Secured on Airports
-------------------------------------------------------
BAA Limited has made further significant progress in its
refinancing through the launch of Proposals relating to the
migration of existing bondholders into an investment grade,
ring-fenced structure backed by Heathrow, Gatwick and Stansted
airports and Heathrow Express.

    * a Special Committee of the ABI has informed BAA Limited
      that it finds the Proposals acceptable, that the six
      members of the Special Committee intend to vote all of
      their holdings in favor of the Extraordinary Resolutions
      and that they will be inviting other members of the ABI to
      consider a similar course of action;

    * the migration of existing holders into the new structure
      will be achieved by exchanging Existing Securities for New
      Securities of the relevant class that will be issued by
      BAA Limited's affiliate BAA Funding Limited.  BAA is
      seeking consent from Existing Holders to allow BAA Limited
      to effect this exchange.  Separate meetings for each
      series of Existing Securities will be held to enable
      bondholders to vote on these Proposals;

    * bondholders who decide to participate in the refinancing
      will benefit from a comprehensive security package,
      operational covenants, financial protections and enhanced
      transparency in terms of investor disclosure and
      forecasting.

The Proposals are made upon the terms and subject to the
conditions contained in the consent solicitation document
prepared in connection with the Proposals, which includes the
Prospectus for the new debt issuance program.

                           Background

Airport Development & Investment Limited effectively completed
its acquisition of BAA Limited on June 26, 2006, when its offer
for BAA was announced to be unconditional.

At the time of the acquisition, ADIL put in place a term
financing facility that did not involve the immediate repayment
of any of the Existing Securities.  However, since the
acquisition, ADIL and BAA Limited have made clear that they were
evaluating alternatives for the efficient long term financing of
the business.

Since the acquisition in June 2006, BAA Limited has developed a
financing structure for the efficient long term financing of the
whole designated business and has stated its intention to
migrate existing bondholders into an investment grade, ring-
fenced entity backed by the designated assets of the BAA Group,
namely, Heathrow, Gatwick and Stansted airports and Heathrow
Express.  The design of this structure has required detailed
consultation with a number of parties, as well as a business
restructuring to segregate the designated assets from the non-
designated assets.  

BAA Limited has consistently stated since the time of
acquisition its intention to consult with leading bondholders
under the auspices of the Association of British Insurers.  On  
June 3, 2008, BAA Limited requested that the ABI convene a
Special Committee and has been in detailed consultation with a
committee comprised of six leading holders of the Existing
Securities over the last few weeks.  As a result of these
discussions, the Special Committee of the ABI has informed BAA
Limited that it finds the Proposals acceptable and BAA Limited
is now in a position to announce these Proposals.

While BAA Limited has made good progress with the plans to
implement its permanent financing structure, in order for the
proposals to proceed, however, other aspects of the
implementation of the permanent financing structure (including
the completion of new and amended financing arrangements) remain
to be completed on terms acceptable to BAA Limited.  

                          The Proposals

BAA Limited wishes to effect a refinancing consistent with other
regulated financing platforms in the U.K. which involves the
migration of Existing Holders into an investment grade, ring
fenced structure secured by the designated assets of the BAA
Group.  

This will be achieved by exchanging Existing Securities for New
Securities of the relevant class to be issued by BAA Limited's
affiliate BAA Funding Limited.  In order to effect this, BAA
Limited is seeking consent from the Existing Holders to allow
BAA Limited to effect the exchange of their Existing Securities
for the relevant Class of New Securities (or, for Existing
Holders not eligible to receive New Securities, a cash amount).  
Separate Meetings to consider the applicable Extraordinary
Resolution have been convened for each series of Existing
Securities.

If the applicable Extraordinary Resolution is passed at a
meeting of the holders of a Series of Existing Securities and
becomes unconditional, it would sanction the exchange of the
relevant Series of Existing Securities for the relevant Class of
New Securities (or, for Existing Holders not eligible to receive
New Securities, a cash amount).

In the event that the Extraordinary Resolutions in respect of
all the Series of Pre-2002 Securities are approved, but the
Extraordinary Resolution relating to any Series of Post-2002
Securities is not approved, holders of Post-2002 Securities of
that Series who have voted in favour of the relevant
Extraordinary Resolution will be deemed to have offered to
exchange all of their Post-2002 Securities for an equivalent
principal amount of New Securities of the relevant Class (or,
for Existing Holders not eligible to receive New Securities, a
cash amount) which BAA, at its discretion, may choose to accept.  

In the event that the Extraordinary Resolutions in respect of
all the Series of Pre-2002 Securities are approved, but the
Extraordinary Resolution relating to any Series of Post-2002
Securities is not approved, the Post-2002 Securities of that
Series, the holders of which voted against, delivered an
Instruction that was invalid or later revoked, voted other than
by an Instruction or took no action at all in respect of the
Extraordinary Resolution or are not legally eligible to
participate in the Exchange Offer will be left outstanding and
treated as Non-Migrated Bonds.

                   Benefits to Existing Holders

Bondholders have the opportunity to participate in the new
financing program by exchanging their existing corporate bonds
for the equivalent nominal amount of senior secured New
Securities with the same expected maturity (although the legal
final maturity of the New Securities will be two years longer
than the Existing Securities that are being exchanged).

Bondholders will thereby benefit from a comprehensive security
package, operational covenants, financial protections and a
higher level of transparency through investor disclosure and
forecasting.  Such benefits include:

    * a stable and long term financing structure which provides
      a platform to finance the investment needs of the three
      London Airports thereby reducing future financing
      uncertainty;

    * a "Class A" seniority position in the new structure, in
      contrast to the current position as unsecured creditors;

    * the New Securities are expected to be assigned the
      improved credit ratings positioned in the single-A
      category from the Rating Agencies;

    * Security over the assets of Heathrow, Gatwick, Stansted
      and Heathrow Express instead of the unsecured guarantees
      from the three companies owning such assets A much more
      comprehensive covenant package, including both cashflow
      and debt/RAB-based financial triggers and tighter
      operational covenants;

    * improved reporting and disclosure via a six-monthly
      investor report to bondholders (including affirmation that
      key ratios are being met on a backward and forward-looking
      basis).

The terms and conditions of the New Securities include, among
other things, an increased coupon which is higher than the
coupon for the equivalent series of Existing Securities.

Existing Holders who deliver a valid Instruction and vote in
favour of the relevant Extraordinary Resolution on or before the
Early Incentive Deadline will be entitled to receive the
relevant Early Incentive Fee in cash if the relevant
Extraordinary Resolution is passed and becomes unconditional or
BAA Limited elects to accept the Exchange Offer deemed made by
Existing Holders and, in either case, the relevant Proposal is
completed.

The terms of the Proposals are summarized in the table below:

Existing    Rating  New         New     Coupon  New    Early
Securities (Moody's Securities  Rating  Hike    Coupon Incentive
           /S&P/               (S&P/                     %*
            Fitch)              Fitch)

GBP300MM    Baa2/   New
11.75%      BBB-/   2016
due 2016**  A-      Bonds       A-/A-   0.70%   12.45%   0.25%

GBP250MM    Baa2/   New
8.5%        BBB-/   2021
due 2021**  A-      Bonds       A-/A-   0.70%    9.20%   0.25%

GBP200MM    Baa2/   New
6.375%      BBB-/   2028
due 2028**  A-      Bonds       A-/A-   0.70%    7.075%  0.25%

GBP900MM    Baa2/   New
5.75%       BBB-/   2031
due 2031**  A-      Bonds       A-/A-   0.70%    6.45%   0.25%

EUR1BB      Baa2/   New
3.875%      BBB-/   2012
due 2012*** A-      Bonds       A-/A-   0.10%    3.975%  0.25%

EUR400MM    Baa2/   New
5.75%       BBB-/   2013
due 2013*** A-      Bonds       A-/A-   0.10%   5.85%    0.25%

EUR750MM    Baa2/   New
4.50%       BBB-/   2014
due 2014*** A-      Bonds       A-/A-   0.10%   4.6%    0.25%

EUR750MM    Baa2/   New
4.5%        BBB-/   2018
due 2018*** A-      Bonds       A-/A-   0.10%  4.6%   0.25%

GBP750MM    Baa2/   New
5.125%      BBB-/   2023
due 2023*** A-      Bonds       A-/A-   0.10%   5.225%    0.25%

   * Early Incentive Percentage calculated by reference to
     nominal value of Existing Securities and payable to all
     holders voting in favor of the Proposal by 4:00 p.m.
     (London time) Tuesday, July 29, 2008.

  ** Pre-2002 Securities

*** Post-2002 Securities

                     Transaction Conditions
The Proposals are subject to certain transaction conditions as
detailed below and in the Consent Solicitation Document.  The
following Transaction Conditions are conditions to each
Extraordinary Resolution:


   1. The passing of each of the other Extraordinary Resolutions

   2. The total amount which would be payable by BAA Limited to
      the Existing Holders in cash on the Completion Date in
      respect of

      (i) the cash amounts;
     (ii) the Early Incentive Fee; and
    (iii) Accrued Interest not being in excess of the Cash Cap

   3. Confirmation of expected ratings of the New Securities

   4. The UKLA confirming that the New Securities will be
      admitted to listing on the Official List of the UKLA and
      to trading on the regulated market of the London Stock
      Exchange on or shortly after the Completion Date

   5. BAA Limited confirming that it will proceed with the
      Proposal, which will be dependent, among other things, on
      the completion of the new and amended financing
      arrangement referred to above on terms acceptable to BAA
      Limited in its sole discretion.

Conditions (1) and (2) above, may be waived in whole or in part
by BAA Limited at its sole discretion in respect of any one or
more of the Extraordinary Resolutions.

The Exchange Offer in respect of any Series of Post-2002
Securities is conditional upon:

  (i) the passing of the Extraordinary Resolutions in respect
      of all the Series of Pre-2002 Securities and the non-
      passing of the Extraordinary Resolution in respect of such
      Series of Post-2002 Securities; and

(ii) the Transaction Conditions being satisfied or (if
      applicable) waived by BAA Limited.

                           ABI Approval

The Proposals have been considered by the Special Committee of
the ABI and its six members have informed BAA Limited that they
find the Proposals acceptable, that they intend to vote all of
their holdings in favor of the Extraordinary Resolutions and
that they will be inviting other members of the ABI to consider
a similar course of action.  The six members of the Special
Committee have holdings in each Series of the sterling-
denominated Existing Securities and five of the six members have
holdings in the euro-denominated Existing Securities.  They
account, in aggregate, for approximately 38% of the total
principal outstanding amount of the sterling-denominated
Existing Securities.

                           Eligibility

Existing Holders may participate in the Proposals by submitting
a valid Instruction to the Clearing Systems within the
stipulated time.  In order to be valid, an Instruction must,
among other things, contain a certification from the Existing
Holder as to whether or not it is a Qualified Holder and
complies with certain applicable laws, as more fully set out in
the Consent Solicitation Document.

                      Proposal Restrictions

The making of the Proposals and the offer of the New Securities
in, or to certain persons who are resident in, or citizens or
nationals of certain jurisdictions, including but not limited to
the jurisdictions listed in the Consent Solicitation Document or
to custodians, nominees and trustees for such persons, may be
affected by the laws of the relevant jurisdictions.  Existing
Holders who are residents, citizens or nationals of such
jurisdictions are required to inform themselves about and
observe any applicable legal requirements.  It is the
responsibility of any such person wishing to accept the
Proposals to satisfy himself as to the full observance of the
laws of the relevant jurisdiction in connection therewith,
including the obtaining of any governmental, exchange control or
other consents which may be required and the compliance with any
other necessary formalities.

                            Guarantees

BAA is aware that some Existing Holders may have purchased
protection with regard to the Existing Securities under credit
default swap contracts where BAA Limited is specified as the
reference entity under such CDS Contracts.  Following the
exchange, in order to ensure that there remains a bond
obligation linked to BAA Limited under such CDS Contracts, BAA
Limited will guarantee, on the basis set out in the Consent
Solicitation Document, certain Classes of the New Securities
with a range of maturities up to and including the New 2018
Bonds.

                    Participating in the Offer

Existing Holders wishing to vote in relation to an Extraordinary
Resolution should deliver, or arrange to have delivered on its
behalf, at or before the Expiration Time, a duly completed
Instruction.  Existing Holders should check with the bank,
securities broker or any other intermediary through which they
hold their Existing Securities whether such intermediary will
apply different deadlines for participation to those set out in
the Consent Solicitation Document and, if so, should follow
those deadlines.

The Meetings will take place at 4:00 p.m. (London) on Aug. 5 at:

         Freshfields Bruckhaus Deringer LLP
         65 Fleet Street
         London
         EC4Y 1HS

                   Expected Timeline of Events


Date            Time      Event
               (London)   

July 14, 2008 Morning     Launch: Announcement of Proposal and
Monday                    Notice of Meetings given to Existing
                           Holders through the Clearing Systems

July 29, 2008 4:00 p.m.   Early Incentive Deadline: Latest time
Tuesday                   and date for delivery of valid
                           Instructions through the Clearing
                           Systems to be eligible to receive the
                           Early Incentive Fee.

Aug. 1, 2008  4:00 p.m.   Expiration Deadline and Revocation
Friday                    Deadline: Latest time and date for
                           submission or revocation of
                           Instructions, or where applicable, in
                           respect of each Series, 48 hours
                           prior to the time fixed for the
                           Meeting in accordance with the
                           relevant Trust Deed.

Aug. 5, 2008  At time     Meetings: If a quorum is not present
Tuesday       set in the  at a meeting, it will be necessary to
               Notice of   call an adjourned Meeting.
               Meeting of
               relevant
               Series
               (4:00 p.m.
               onwards)


Aug. 7, 2008  Morning     Morning Notice of Results: RIS
Thursday                  announcement of results of Meetings.   
                           RIS announcement advising whether BAA
                           Limited accepts the offers to
                           exchange Post-2002 Securities

Aug. 8, 2008  4:00 p.m.   Exchange Offer Expiration Deadline.  
Friday                    

Aug. 12, 2008*            Confirmation Date: Confirmation of
Tuesday                   whether and on what the basis in
                           accordance with the terms set out in
                           the Consent Solicitation Document BAA
                           Limited elects to proceed with the
                           Proposals.

Aug. 12, 2008*            Pricing Date
Tuesday

Aug. 14, 2008*            Completion Date: Issue of New
Thursday                  Securities

Dec. 31, 2008             Initial Long Stop Date
Wednesday

* Indicative date only.  Consent Solicitation Document sets out
   further details.

                       About BAA Ltd.

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.

                          *     *     *

BAA Ltd. continues to carry BB- long-term corporate credit
rating from Standard & Poor's Ratings Services, which said the
Outlook is negative.


CASTLE BUILDING: Cash Flow Hit Sends Firm into Administration
-------------------------------------------------------------
Castle Building Limited has gone into administration due to cash
flow problems and construction industry difficulties, Adam Uren
writes for Spaldingtoday.

Stuart David Maddison and Edward Mark Shires of
PricewaterhouseCoopers LLP were appointed as joint
administrators of the company.

Around 25 employees are likely to be affected, the report
relates.

Based in Linconshire, England, Castle Building Limited engages
in house building and designs.


CLAIMTEC LTD: Brings In Joint Administrators from BDO Stoy
----------------------------------------------------------
D. J. Power and M. Dunham of BDO Stoy Hayward LLP were appointed
joint administrators of Claimtec Ltd. (Company Number 02423633)
on July 8, 2008.

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

The company can be reached at:

         Claimtec Ltd.
         c/o BDO Stoy Hayward LLP
         Commercial Buildings
         11-15 Cross Street  
         Manchester  
         M2 1BD
         England


ENRON CORP: Court Approves US$13 Million Abbey Claim Compromise
---------------------------------------------------------------
At the behest of Enron Creditors Recovery Corp., the U.S.
Bankruptcy Court for the Southern District of New York approved
a compromise for Claim No. 25413 filed by Abbey National
Treasury Services.

Claim No. 25413 arose from the 6.31% senior secured notes
aggregating US$475,000,000 in principal amount and the 6.19%
senior secured notes aggregating EUR515,000,000 in principal
amount issued by Marlin Water Trust, and Marlin Water Capital
Corp.

Abbey purchased US$50,000,000 of the U.S. Dollar Notes and
EUR55,000,000 of the Euro Notes.  During the Petition Date,
Abbey sold its U.S. Dollar Notes for US$8,875,000 and
EUR25,000,000 of its Euro Notes for EUR4,250,000, and the
remaining EUR30,000,000 for EUR5,137,500.

Abbey filed Claim No. 13585 in October 2002 against the Debtors
alleging a claim in the amount of the Abbey-Marlin Notes plus
interest, less the amounts Abbey received for the sale of the
Notes.  Enron objected to the Claim on the grounds that the
Claim has no merit.

After filing the Claim, Enron and Abbey determined that Claim
No. 13585 did not conform with the Bankruptcy Code or the Bar
Date Order with respect to the Euro Notes, which were not
denominated in lawful currency of the United States as of the
Petition Date.  Additionally, they agreed that Claim No. 13585
included incorrect calculation dates.

In January 2007, the Court granted Abbey leave to amend Claim
No. 13585 to convert the amount asserted on the Euro Marlin
Notes into U.S. Dollars, reduce the amount of prepetition
interest asserted by Abbey, and file an amended claim.  Abbey
then filed Claim No. 25413 seeking recovery of US$84,349,437,
which includes US$2,311,643 of prepetition interest, plus
postpetition interest.

In a desire to resolve Claim No. 25413 and any causes of action
that may arise regarding the Abbey-Marlin Notes, the parties
engaged in extended arm's-length negotiations between Enron and
Abbey over several months.  As a result, the parties entered
into a settlement agreement, under which:

  (a) Claim No. 25413 will be allowed as a Class 4 General
      Unsecured Claim for US$13,000,000 against Enron; and

  (b) the parties will mutually release one another from all
      claims or causes of action related to the Abbey-Marlin
      Notes.

                       About Enron Corp.

Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.  

Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P.
Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges
LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert
L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark
C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represent the Debtors.  Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represent the Official
Committee of Unsecured Creditors.

The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003.  On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement.  On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004.  (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ENRON CORP: EPMI Inks Pact Resolving CalPex Claim
-------------------------------------------------
Enron Power Marketing, Inc., and American Electric Power Service
Corporation, et. al., ask the U.S. Bankruptcy Court for the
Southern District of New York to approve a settlement resolving
the allocation of funds with respect to Claim No. 9112, filed by
the California Power Exchange Corporation, for US$16,221, plus
certain unliquidated amounts.

Other parties to the settlement are:

  * Avista Energy, Inc.
  * Bonneville Power Administration
  * Chevron Energy Solutions, L.P.
  * Energy Services Ventures, Inc.
  * Constellation Energy Commodities Group, Inc.
  * Shell Energy North America (US), L.P.
  * CSW Energy Services, Inc.
  * FPL Power Marketing, Inc.
  * LSGT Gas Company LLC
  * Equilon Enterprises LLC
  * MIECO, Inc.
  * Mirant Energy Trading, LLC
  * Nevada Power Company
  * Powerex Corp.
  * Public Service Company of New Mexico
  * QST Enterprises
  * Reliant Energy Services, Inc.
  * Sacramento Municipal Utility District
  * Sempra Energy Trading LLC
  * Sierra Pacific Power Company
  * Western Area Power Administration - Sierra Nevada Region
  * Western Area Power Administration - Colorado River Storage
  * Williams Gas Marketing, Inc.

The Settlement Agreement specifically provides that:

  (1) the distributions on account of the Funds, in connection
      with Claim No. 9112, will be made by the Clerk of the
      Bankruptcy Court, in accordance with the Distribution
      Schedule;

  (2) future distributions on account of Claim No. 9112 will be
      made by EPMI, or its successor, in accordance with the
      Distribution Schedule; and

  (3) EPMI and the Defendant Parties will have limited mutual
      releases with respect to Claim No. 9112.

Enron's counsel, Michael S. Etkin, Esq., at Lowenstein Sandler,
PC, in New York, tells the Court that the creation of a steering
committee of three Defendant Parties lead to the negotiation
process and the vetting of various methods of allocation and
distribution of the Funds.

The Settlement Agreement is not intended to hinder the Defendant
Parties from becoming an opt-in participant to a Court-approved
settlement between the Debtors and the Federal Energy Regulatory
Commission in connection with Claim No. 9112, Mr. Etkin assures
the Court.  The Court had capped the maximum amount of Claim No.
9112 as an unsecured claim at US$17,500,000.

Mr. Etkin explains that if any Defendant Party becomes an Opt-In
Participant, and does not waive any right to payment in
connection with the Enron-FERC Settlement, that Defendant Party
is required to forfeit any payment received pursuant to the
Settlement Agreement, for redistribution to the other Defendant
Parties.

Mr. Etkin states that the Settlement Agreement clarifies that
the Distribution Schedule is intended solely for the resolution
of the adversary proceeding and the allocation of the Funds for
Claim No. 9112, and the compromise is solely for the
distribution on Claim No. 9112.  The Distribution Schedule will
not be considered as an admission, establishing precedent, or
applicable to any proceeding or agreement other than the
Settlement Agreement, Mr. Etkin clarifies.

With specific regard to the negotiations among the Defendant
Parties, the defendants invited to participate were those who
answered the complaint and:

  (a) did not default in connection with the complaint;

  (b) did not waive their right to participate in the allocation
      of Claim No. 9112; or

  (c) did not formally acknowledge that they were not entitled
      to any allocation.

Mr. Etkin relates that only one entity that answered the
complaint -- LG&E Energy Marketing, Inc. -- did not participate
in the negotiations.  Subsequent to the Defendant Parties
reaching a resolution, LG&E asked the Steering Committee for a
copy of the Settlement Agreement.  Aside from LG&E, the Steering
Committee is unaware of any other defendant who has not
defaulted, waived its right, or acknowledged that it has no
right to the allocation.

Mr. Etkin maintains that the Settlement Agreement falls within
the range of reasonableness, and represents a benefit to
creditors and all parties, and is in the best interests of the
estate.

                       About Enron Corp.

Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.  

Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P.
Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges
LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert
L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark
C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represent the Debtors.  Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represent the Official
Committee of Unsecured Creditors.

The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003.  On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement.  On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004.  (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ENRON CORP: Resolves US$15 Mln MARAD Claim Through Stipulation
--------------------------------------------------------------
Enron Creditors Recovery Corp., and the U.S. Department of
Transportation, Maritime Administration, entered into a
stipulation -- approved by the U.S. Bankruptcy Court for the
Southern District of New York -- that resolves a US$15 million-
claim.

The stipulation provides that Claim No. 24788 will be reduced,
with prejudice, to US$15,741,677, representing the outstanding
principal amount of the Corinto Bonds as of April 16, 2008, plus
the interest to accrue and become due under the amortization of
the Corinto Bonds.  The Claim will be further reduced, with
prejudice, upon payment on Oct. 15, 2008, to the Corinto
Bondholders of the principal and interest with respect to the
Corinto Bonds.  Following the verification of payment on
April 15, 2009, with respect to the Corinto Bonds, the Claim
will be deemed withdrawn, with prejudice.

If prior to the withdrawal of Claim No. 24788, (i) an event of
default occurs, and (ii) the amount contained in the Reserve
Fund is insufficient to reimburse MARAD for out-of-pocket
amounts, then, the amount of the Claim will be the amount of the
deficiency, and the Claim will be allowed in that amount.

No funds need to be reserved in the Disputed Claims Reserve on
account of Claim No. 24788 and MARAD will look solely to the Tax
Refund for recovery.  The Internal Revenue Service will pay
Enron an amount equal to (a) the sum of the Tax Refund and the
Reserve Fund, plus accrued interest, minus US$15,741,677.  The
IRS will also pay an amount equal to the October 2008 Payment
and an amount equal to the balance of the Tax Refund, plus
accrued interest, following April 15, 2009. Upon payment of the
Tax Refund, the IRS will be released from all obligations.

The Letter of Credit will be deemed withdrawn, without prejudice
to MARAD's limited right to a setoff against the Tax Refund.  
The Stipulation will have no effect on MARAD's rights in
connection with the Reserve Fund or against Empresa Energetica
Corinto, Ltd., or any other person not a party to the
Stipulation.  

Enron also withdraws its objection to Claim No. 24788.

                       About Enron Corp.

Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.  

Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P.
Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges
LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert
L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark
C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represent the Debtors.  Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represent the Official
Committee of Unsecured Creditors.

The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003.  On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement.  On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004.  (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ENRON CORP: Appeals Court Affirms Dismissal of 10 Investor Cases
----------------------------------------------------------------
The U.S. Court of Appeals for the Fifth Circuit affirmed the
U.S. District Court for the Southern District of Texas'
dismissal of 10 cases arising from the collapse of the Enron
Corporation, which cases were filed by former Enron Corp.
investors against former Enron management, Enron's former
accounting firm, as well as certain financial institutions.

The dismissed cases are:

  * Ahlich et al. v. Arthur Anderson LLP et al.,
  * Bullock et al. v. Arthur Anderson LLP et al.,
  * Adams et al. v. Anderson et al.,
  * Guy et al. v. Arthur Anderson LLP et al.,
  * Delgado et al. v. Fastow et al.,
  * Rosen et al. v. Fastow et al.,
  * Pearson et al. v. Fastow et al.,
  * Choucroun et al. v. Arthur Anderson LLP et al.,
  * Jose et al. v. Anderson et al., and
  * Odam et al. v. Enron et al.

Fleming & Associates LLP represents the plaintiffs in the
investor cases.  

District Judge Melinda Harmon dismissed the Fleming cases with
prejudice after finding that they were preempted by the
Securities Litigation Uniform Standards Act.  The Fleming
plaintiffs sought to bring claims under state securities law
only, and the District Court held that SLUSA preempts all those
state claims.

Fleming appealed Judge Harmon's order arguing that the District
Court had no authority to dismiss their cases with prejudice
because it lacked subject matter jurisdiction over them.  
Fleming pointed out that "related to" bankruptcy jurisdiction
was the sole basis for federal jurisdiction over its state law
claims, and thus, federal jurisdiction ceased to exist over them
upon the confirmation of Enron's Plan of Reorganization.

Appellate Court Judge Emilio M. Garza held that Section 1334
does not expressly limit bankruptcy jurisdiction upon plan
confirmation.  Other Circuit Courts agreed, holding that "if
'related to' jurisdiction actually existed at the time of . . .
removal" subsequent events "cannot divest the district court of
that subject matter jurisdiction."  Judge Garza pointed out that
Fleming cannot point to a single case in which the Fifth Circuit
have held that plan confirmation divests a District Court of
bankruptcy jurisdiction over pre-confirmation claims, based on
pre-confirmation activities that properly had been removed
pursuant to "related to" jurisdiction.  Thus, the Fifth Circuit
held that the District Court had bankruptcy jurisdiction over
the Fleming plaintiffs' claims at the time it dismissed them
with prejudice.

Judge Garza said that, applying the principles used in In re
WorldCom, 308 F. Supp. 2d at 238, the Fleming cases plainly fall
within the definition of a "covered class action," and therefore
SLUSA preempts their claims unless some other consideration
saves them from preemption.

In a last-ditch effort to salvage their preempted claims, the
Fleming plaintiffs argued that preempting their claims lead to
an "absurd result" that contravenes SLUSA's purposes and places
SLUSA on a collision course with the multi-district litigation,
Judge Garza notes.  "The Fleming plaintiffs are incorrect."

Judge Garza explained that the stated purpose of SLUSA is "to
prevent" not to preserve "certain State private securities class
action lawsuits alleging fraud from being used to frustrate the
objectives of the Private Securities Litigation Reform Act.  He
added that Fleming ignores the fact that 172 of their 196
plaintiffs are before the Southern District of Texas by virtue
of direct filing or direct removal, not the MDL.

Accordingly, the Fifth Circuit held that the District Court
properly dismissed the Fleming cases with prejudice.

"The Fleming firm purports to represent several hundred clients
with claims arising out of Enron's collapse, but, according to
Judge Garza, Fleming's performance "has been less than
exemplary."

A full-text copy of the Fifth Court Opinion is available at no
charge at http://researcharchives.com/t/s?2f80

                       About Enron Corp.

Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.  

Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P.
Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges
LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert
L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark
C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represent the Debtors.  Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represent the Official
Committee of Unsecured Creditors.

The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003.  On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement.  On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004.  (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


EOS AIRLINES: Taps Bouchier, Stoneman as Administrators
-------------------------------------------------------
The directors of EOS Airlines Inc. appointed Goeffrey Wayne
Bouchier and Andrew Gordon Stoneman of Menzies Corporate
Restructuring as joint administrators of EOS' U.K. business.

Members of EOS may obtain a copy of Form 2.18B, notice of
extension of time period and a copy of the joint administrator's
proposals from:

      Joint Administrators
      Menzies Corporate Restructuring
      43-45 Portman Square
      London
      W1H 6LY

Pursuant to Article 14(2)(a) of the UNCITRAL Model Law on Cross-
Border Insolvency as set out in the Cross-Border Insolvency
Regulations 2006, a court order dated July 2, 2008, has directed
the joint administrators of EOS Airlines to notify foreign
creditors that a copy of the joint administrators' proposals can
be obtained from http://www.kccllc.net/eosairlines

                       About EOS Airlines

Based in Purchase, New York, EOS Airlines, Inc. --
http://www.eosairlines.com/-- is a transatlantic airline. The     
company filed for Chapter 11 protection April 26, 2008 (Bankr.
S.D.N.Y. Case No.08-22581).  Stephen D. Lerner, Esq., at Squire
Sanders & Dempsey, LLP, represents the Debtor in its
restructuring efforts.  The Debtor selected Kurztman Carson
Consultants LLC as claims agent.  The U.S. Trustee for Region 2
appointed creditors to serve on an Official Committee of
Unsecured Creditors.  Joseph M. Vann, Esq., and Robert A.
Boghosian, Esq., at Cohen Tauber Spievack & Wagner P.C. in New
York, represent the Committee in this case.

Menzies Corporate Restructuring has been appointed as joint
administrators in the U.K.

When the Debtor filed for protection against it creditors, it
listed total assets of US$70,233,455 and total debts of
US$34,858,485.


INTELSAT CORP: S&P Rates US$658 Mln 9.25% Senior Notes at BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'BB-' issue-rating
and a '1' recovery rating to Intelsat, Corp.'s US$658 million
9.25% senior notes due 2014 and US$581 million 9.25% senior
notes due 2016.  

The '1' recovery rating indicates the expectation for very high
(90%-100%) recovery in the event of a payment default.  
Intelsat Corp. is an indirect subsidiary of Bermuda-based
Intelsat, Ltd.  The corporate credit rating on parent Intelsat,
Ltd. is 'B' and remains unchanged and the outlook is stable.  
Intelsat is the largest provider of fixed satellite
communications services worldwide, supplying voice, data, and
video connectivity globally through its fleet of 53 owned
satellites.

Proceeds from the new debt will be used to finance the repayment
of the issuer's outstanding US$658 million 9.25% term loan due
2014 and US$581 million 9.25% term loan due 2016 and pay related
fees and expenses.  The ratings are based on preliminary terms
and conditions and are subject to review of final documentation.
   
The ratings on Intelsat reflect a highly leveraged financial
profile that allows for limited financial flexibility in the
medium term and overwhelms very attractive business
characteristics.  A strong business risk profile reflects the
company's global scale, strong geographic diversification, and
strong revenue backlog that provides for significant cash flow
visibility.  This fundamentally sound business profile enables
the company to support such high levels of leverage at this
rating.


J RAY MCDERMOTT: Moody's Hikes Corporate Family Rating to Ba2
-------------------------------------------------------------
Moody's Investors Service upgraded the corporate family ratings
of both McDermott International Inc. and J Ray McDermott, S.A.
to Ba2 from Ba3 and upgraded their probability of default
ratings to Ba3 from B1.

At the same time, Moody's upgraded the universal shelf rating of
McDermott International to B2 from B3 and upgraded the senior
unsecured revenue bonds backed by McDermott Inc. to B1 from B2.

Finally, Moody's confirmed the Ba2 senior secured debt rating of
J Ray McDermott and the Baa3 senior secured rating of Babcock
and Wilcox Power Generation Group, Inc.  The outlook for all
companies is positive.  This concludes the review for upgrade
initiated on June 12, 2008.

The upgrade of McDermott International and J Ray McDermott's
corporate family ratings with positive outlooks reflects Moody's
expectation that end market demand for the companies' respective
business segments are likely to remain favorable into the medium
term.

Moody's believes McDermott International and J Ray McDermott are
likely to produce continued strong operating results and sustain
key credit metrics at levels supportive of the outlook
direction.  Ratings could be moved higher should the companies
continue to execute on their strong backlogs and maintain ample
amounts of liquidity and conservative balance sheets as they any
pursue strategic growth initiatives.

The confirmation of the facility ratings at Babcock and Wilcox
and J Ray McDermott considers the increase in size of the
revolving credit facilities for borrowing purposes which has
occurred at each of these entities within the past year, while
junior ranking unfunded pension liabilities have been reduced.

Upgrades:

  Issuer: J. Ray McDermott, S.A.

   -- Corporate Family Rating, Upgraded to Ba2 from Ba3
   -- Probability of Default Rating, Upgraded to Ba3 from B1

  Issuer: McDermott International Inc.

   -- Corporate Family Rating, Upgraded to Ba2 from Ba3
   -- Probability of Default Rating, Upgraded to Ba3 from B1
   -- Multiple Seniority Shelf, Upgraded to (P)B2, LGD 5, 88%
      from (P)B3, LGD 5, 88%

Issuer: Beaver (County of) PA, Industrial Devel Auth

   -- Senior Unsecured Revenue Bonds, Upgraded to B1, LGD 5, 75%
      from B2, LGD 5, 72%

Confirmations:

  Issuer: Babcock & Wilcox Power Generation Gr, Inc.

   -- Senior Secured Bank Credit Facility, Confirmed at Baa3 (to
      LGD 2, 12% from LGD 1, 6%)

  Issuer: J. Ray McDermott, S.A.

   -- Senior Secured Bank Credit Facility, Confirmed at Ba2 (to
      LGD 3, 30% from LGD 2, 22%)

Outlook Actions:

  Issuer: Babcock & Wilcox Power Generation Gr, Inc.

   -- Outlook, Changed To Positive From Rating Under Review

  Issuer: J. Ray McDermott, S.A.

   -- Outlook, Changed To Positive From Rating Under Review

  Issuer: McDermott International Inc.

   -- Outlook, Changed To Positive From Rating Under Review

Moody's assesses the ratings for McDermott International and J
Ray McDermott using two separate corporate family ratings given
the distinct financing arrangements the company has established
for its operating entities.  McDermott International's credit
profile is assessed based on its consolidated results excluding
J Ray McDermott, which is considered stand alone and has its own
corporate family rating (Ba2).

Moody's said it would review its two corporate family rating
construct should the company alter its financing arrangements in
a way that consolidated bank lines at the parent and promoted
the fluid availability of financial resources between the
various entities.

J Ray McDermott's backlog continues to rise as it benefits from
its leading market position and strong demand for offshore oil
and gas infrastructure.  Moody's expects industry fundamentals
are likely to remain solid into the medium term supporting the
company's prospects for ongoing revenue growth.  As well, J Ray
McDermott continues to demonstrate a disciplined bidding process
evidenced by its favorable operating margins and improving mix
of contracts in its backlog.

The expected growth in operating cash flow supports the ratings
upgrade and maintenance of positive rating momentum.  J Ray
McDermott's good liquidity profile and conservative capital
structure provides further ratings support and mitigates the
downside risk associated with project execution risks and its
concentration of activity in cyclical end markets.

While a portion of J Ray McDermott's growing cash balances and
debt capacity may be used to pursue strategic growth
initiatives, including acquisition activity, Moody's believes J
Ray McDermott has capacity to absorb reasonable amounts of
integration and execution risks within context of its current
rating and outlook.

McDermott International's corporate family rating principally
reflects the operations of Babcock and Wilcox and BWX
Technologies Inc., and includes their intermediate holding
company, McDermott Inc.  Profitability and cash flows have
continued to improve following Babcock and Wilcox's emergence
from an asbestos-related bankruptcy in early 2006 as periodic
restructuring charges and asbestos claims have receded (pro-
forma consolidation of Babcock and Wilcox before Feb 2006).

Moody's expects demand for the company's services are likely to
remain firm through the near term.  Good visibility into this
time horizon is provided by the company's strong market
position, large installed base of equipment and recurring nature
of much of its revenue base as well as current backlog levels.  

Moreover, Moody's believes Babcock and Wilcox's growth prospects
may strengthen into the medium term driven by demand for new
power generation and increased customer environmental spending
requirements.  The rating remains tempered by the company's
relatively small size, geographic concentration, and project
execution risk.

Currently strong levels of liquidity and relatively low levels
of leverage provide key offsets to these risks.  Similar to J
Ray McDermott, McDermott International's rating also considers
the potential that it may pursue strategic growth initiatives
through Babcock and Wilcox and BWXT, although Moody's expects
any related expenditures would be undertaken while preserving
its liquidity and capital strengths.

Headquartered in Houston, Texas, McDermott International Inc. is
an international energy services company that provides
engineering, fabrication, installation and facilities management
services to energy and power companies and to the U.S.
government.


L G D LTD:  Appoints Andrew Appleyard as Administrator
------------------------------------------------------
Andrew Appleyard of Tenon Recovery was appointed administrator
of L G D Ltd. (Company Number 05101325) on July 3, 2008.

Tenon Recovery -- http://www.tenongroup.com/-- provides  
accounting and business advice to owner-managed and private
business.

The company can be reached at:

         L G D Ltd.  
         Business Services Centre
         446-450 Kingstanding Road
         Birmingham  
         B44 9SA  
         England


LUCITE INT'L: S&P Cuts Long-Term Corporate Credit Rating to B
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered to 'B' from 'B+'
its long-term corporate credit rating on U.K.-based methyl
methacrylate monomers producer and distributor Lucite
International Group Holdings Ltd.  The outlook is stable.
     
At the same time, the senior secured debt ratings on the bank
loans issued by Lucite International Finco Ltd. and Lucite
International U.S. Finco LLC were lowered to 'B+' from 'BB-'.
The recovery rating on the bank loans remains unchanged at '2',
indicating S&P's expectation of substantial (70%-90%) recovery
for senior secured lenders in the event of a payment default.
     
"The downgrade reflects a deterioration in Lucite's operating
results, cash flows, and covenant leeway due to weaker demand
combined with rising input costs," said S&P's credit analyst
Sophia Dedemadis.
     
So far in 2008, the company has posted lower volume growth owing
to the economic slowdown in its markets, specifically the U.S.,
as well as softening in European markets.  Revenues are fairly
evenly split between Europe, the Americas, and Asia, and Lucite
has a large (above 40%) overall exposure to the softening
construction industry via its end markets.  Top-line revenue
growth in Asia was unexpectedly soft in the first quarter of
2008, which is of concern as the company is targeting
high-single-digit growth from this region.  Lucite's reported
revenues for the first quarter of 2008 were GBP211 million, a
4% reduction from the same quarter last year.
    
Raw material cost pressures have been significant, particularly
for acetone and methanol, the main raw materials, and are
expected to continue.  The downstream segment is particularly
affected.  In addition to record prices, volatility is a key
concern.  The time lag to pass on costs has been approximately
three to six months in the past few years -- although the
company is actively aiming to reduce this where feasible -- and
Lucite has not been fully successful in passing on all costs.
Lucite estimates cost savings with the new proprietary "Alpha"
production process of about 15%-20% (in comparison with an
average ACH or C4 plant) once the plant is fully on line, and
the plant will only cover 10% of the company's total capacity.
     
S&P expects that, despite the challenging market environment,
Lucite will maintain sufficient liquidity and covenant leeway to
weather the current weaker demand and raw material cost
pressures resulting in deteriorating funds from operations.  S&P
expects the ratio of funds from operations to adjusted debt
including payment-in-kind loans (7.5% as at March 31, 2008, on a
rolling-12-month basis) to remain in the low to mid single
digits over the next 12-18 months, which is below S&P's
expectation of 10% through the cycle.  
     
It is S&P's assumption that Lucite would be able to successfully
renegotiate and secure adequate liquidity in the event of a
covenant breach, in the form of committed credit facilities.  A
failure to maintain sufficient liquidity would result in
downward pressure on the ratings.
     
The ratings could also come under pressure if Lucite undertakes
additional shareholder-oriented measures, if it makes midsize or
large debt-funded acquisitions, or if it does not maintain
discipline on capital expenditures.  Upgrade potential remains
limited in the next few quarters, given thin deleveraging
capabilities.

Lucite is a world leading producer of methyl methacrylate with a
total annual production capacity of 700,000 tons and a market
share of 25%. Lucite reported revenues of GBP849 million and an
EBITDA of GBP114 million for the fiscal year ended
Dec. 31, 2007.


PENDRAGON PLC: Joint Venture Breaches Loan Convenants with RBS    
--------------------------------------------------------------
(rewrite/joy)

Pendragon plc's GBP375 million property joint venture with
property fund manager aAIM has breached loan-to-value covenants
on GBP330 million of debt with the Royal Bank of Scotland,
Jonathan Russell writes for the Daily Telegraph.

Pendragon and aAIM, the Daily Telegraph says, have been asked to
inject GBP20 million in cash into the joint venture, which was
set up in July 2007.

However, Pendragon, which owns the leases, may opt to get out of
the joint venture and extend the length of the leases on the
property instead to bolster their value, the Daily Telegraph
relates, citing people close to the company.

Pendragon earlier disclosed that it was planning to cut 500 jobs
as a result of the consumer downturn, the paper adds.

Pendragon plc -- http://www.pendragonplc.com/-- is engaged in  
automotive retail.  The automotive retail outlets trade as
Stratstone, Evans Halshaw and Chatfields offering a large
selection of new and used vehicles.  These brands represent over
30 franchises for passenger vehicles, motorcycles, commercials
and trucks operating from nearly 400 retail sites.


REMBRANDT I: Fitch Puts 'BB-' Notes Ratings Under Negative Watch
----------------------------------------------------------------
(uk)

Fitch has placed three classes of Rembrandt I Synthetic CDO
Limited's notes on Rating Watch Negative and affirmed the
remaining four classes, as listed below.

The rating actions reflect Fitch's view on the credit risk of
the rated tranches following the release of its new Corporate
CDO rating criteria.

  -- EUR7,800,000 Class I secured notes (ISIN XS0171178154):
     affirmed at 'AAA';

  -- EUR19,500,000 Class II secured notes (ISIN XS0171178238):
     affirmed at 'AA';

  -- EUR11,310,000 Class III secured notes (ISIN XS0171178311):
     affirmed at 'A';

  -- EUR17,550,000 Class IV secured notes (ISIN XS0171178584):
     'BBB-'; on RWN

  -- EUR3,250,000 Class V-A secured notes (ISIN XS0171178667):
     'BB-'; on RWN

  -- EUR1,820,000 Class V-B secured notes (ISIN XS0171179046):
     'BB-'; on RWN

  -- EUR65,000,000 combination notes (ISIN XS0172108317):
affirmed
     at 'A-'.

Key drivers of this transaction's credit risk include an
increase of the portfolio's credit risk, with 12.5% of the
portfolio now rated sub-investment grade, compared to 7.25% at
the review in April 2007.  In addition, portfolio migration risk
has increased, with 8.25% of the portfolio on RWN and 19% on
Negative Outlook.  Fitch also notes the industry concentration
of 41.75% in the three largest sectors, made up of 19% in
banking and finance, 11.5% in utilities and 11.25% in
telecommunications.

Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels of 2.85%
for Class IV, and 2.2% for Class V-A and V-B are not sufficient
to justify their current ratings.

The resolution of the RWN will incorporate any changes made to
the portfolio or the transaction along with additional portfolio
migration.  If there are no significant changes prior to the
resolution of the RWN, these classes will likely be downgraded
to the rating categories indicated below.

  -- Class IV: 'BB' category
  -- Class V-A: 'B' category
  -- Class V-B: 'B' category

For classes I, II and III, current credit enhancement levels are
deemed to be sufficient to justify their current ratings.  For
the combo notes, which are rated for the repayment of principal
only, the affirmation also takes into consideration that they
have repaid 37.2% of their initial rated balance using interest
paid to the notes making up the combo notes.

This transaction is a synthetic collateralized debt obligation
backed by collateral securities funded by the net issuance
proceeds of the Class I to V notes.  The reference portfolio is
subject to substitutions which are made by Fortis Investment
Management France S.A. as investment manager.  The notes have a
scheduled maturity in June 2011 and absorb the credit risk of a
credit default swap with Morgan Stanley Capital Services, Inc.
Additionally, Rembrandt, a special purpose vehicle incorporated
under the laws of Jersey, issued combination notes consisting of
the full notional balance of Class I, II, III, IV, V-A and
unrated Subordinated-A notes.  The combo notes have identical
rights to the underlying notes.

The ratings of the Class I to V-B notes address the full and
timely payment of interest and ultimate repayment of principal
by scheduled maturity in June 2011.  The rating of the combo
notes addresses ultimate repayment of initial investment by
scheduled maturity in June 2011.

Fitch released its updated criteria on 30 April 2008 for
Corporate CDOs and, at that time, noted it would be reviewing
its ratings accordingly to establish consistency for existing
and new transactions.  As part of this review, Fitch makes
standard adjustments for any names on RWN or Outlook Negative,
reducing such ratings for default analysis purposes by two
notches and one notch, respectively.  Fitch has noted its review
will be focused first on ratings most exposed to risks it has
highlighted in its updated criteria.  Committees are also
reviewing transactions that are least impacted by the new
criteria and/or portfolio migration.  Resolution of these Rating
Watches will depend on the plans managers/arrangers may choose
to execute and communicate to address these concerns.


SEA CONTAINERS: Employees Have Until August 25 to File Claims
-------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware, at Sea Containers Ltd. and its debtor-
affiliates' request, issued a supplemental order establishing
Aug. 25, 2008, as the bar date to file proofs of claim for
current or former employees holding, or wishing to assert claims
against the Debtors.  Judge Carey also approved the proposed
revised Bar Date Notice and Proof of Claim form.

With respect to any employee residing in Great Britain that is
subject to the jurisdiction of the Courts of England & Wales,
the Employee Bar Date will apply solely to these claim
categories:

  (a) claims set forth under Category 5 of Schedule 6 for the
      United Kingdom Insolvency Act 1986, which include certain
      claims for remuneration and holiday remuneration;

  (b) claims set forth under Sections 502(b)(7) and 507(a)(4) of
      the Bankruptcy Code, which include certain claims for
      damages resulting from termination of an employment
      contract, and wages, salaries or commissions, like
      vacation, severance and sick leave pay; and

  (c) any other claims for remuneration, wages, salaries,
      commissions, bonuses, overtime pay, vacation pay, holiday
      pay, severance, deferred compensation, medical or sick
      leave pay, health, insurance, savings and workers'
      compensation benefits, reimbursable expenses, relocation
      expenses, incentive payments, withholdings, deductions,
      and benefits or deferred compensation relating to any
      retirement or pension plan.

Judge Carey ruled that claims based solely on amounts, which are
or may be payable by the Debtors, the Sea Containers 1983
Pension Scheme or the Sea Containers 1990 Pension Scheme as a
result of, or in connection with, current or former
participation in either of the Pension Schemes, will not be
subject to the Employee Bar Date.

The Court noted that (i) pursuant to the original Bar Date
Order, the current order will not apply to the Pension Trustees,
which are subject to the General Bar Date with respect to all
claims under the Pension Schemes, and (ii) an employee need not
assert a claim against the Debtors solely on a participation
interest in the Pension Schemes.

Judge Carey also directed the Debtors to publish the Revised Bar
Date Notice in the English edition of The London Times, at least
once 30 days prior to the Employee Claims Bar Date.

                      About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 45;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEA CONTAINERS: SCL Panel Still Not Convinced of Pension Pact OK
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Ltd. and its debtor-affiliates' Chapter 11 cases tell the
Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware that it still does not want the pension
scheme agreements approved because the amounts involved are
"unreasonable."

                    Post-Trial Submission:
                 Evidentiary Record Supporting
                  Pension Settlement Approval

A. Debtors

At Judge Carey's direction, the Debtors filed with the Court a
summary of the evidentiary record that supports their request
for
approval of the Pension Settlement, specifically evidence
concerning:

   (1) the Debtors' exercise of their business judgment in
       analyzing and settling the Pension Claims;

   (2) the Pension Settlement being more favorable to the
       bankruptcy estates than various reasonable litigation
       outcomes;

   (3) the applicability of English Pensions Law to the Pension
       Claims;

   (4) Sea Containers Limited's present liability to the Pension
       Schemes in amounts exceeding the settlement amount;

   (5) the SCL Group's other participating employers' liability
       to the Pension Schemes and SCL's exposure to future
       Financial Support Directions, or FSDs, in connection with
       pension liabilities, defined as debt;

   (6) the liability of other entities in the SCL group under
       future FSDs;

   (7) the extent to which the Pension Settlement enables the
       Debtors to achieve key goals, and obtain important
       benefits that are unavailable absent settlement;

   (8) the reasonableness of Neville Hosegood's calculations of
       the debt under Section 75 of the Pensions Act 1995;

   (9) the Pension Schemes' investment allocation and rates of
       return, and their lack of relevance to the Debtors' buy-
       out liability;

  (10) the reasonableness of the equalization reserve component
       of the Pension Settlement;

  (11) the reasonableness of the administrative claim for
       postpetition expenses incurred by the Pension Schemes;

  (12) the FSDs' non-violation of the automatic stay and the
       Official Committee of Unsecured of Sea Containers
       Limited's awareness of the FSD proceedings; and

  (13) the Pension Settlement not constituting a sub rosa plan
       of reorganization.

The Debtors also pointed out that the Pension Settlement (i) is
the only realistic option for resolving the Pension Claims, (ii)
was the product of vigorous negotiations between the parties
over
a lengthy period of time, (iii) facilitates the Debtors'
objectives, and (iv) provides additional protections to the
Debtors.  They insist that rejection of the Pension Settlement
would put the bankruptcy estates at risk of severe consequences.

B. SCSL Committee and Pension Trustees

The Official Committee of Unsecured Creditors of Sea Containers
Services Limited, and the Trustees of the Pension Schemes also
submitted to the Court a summary of the evidentiary record that
supports the Debtors' request for approval of the Pension
Settlement, specifically evidence:

   (1) showing that U.K. has the most significant relationship
       to the valuation of the Pension Schemes' claims;

   (2) concerning applicable U.K. pensions law;

   (3) showing that the Pension Claims are reasonable, including
       grounds that:

       -- the buy-out basis is the appropriate measure for
          valuing pension scheme liabilities, where the employer
          is insolvent;

       -- whether a Section 75 trigger has occurred or not is
          irrelevant to the calculation of the Pension Claims;
          and

       -- the FSDs issued against SCL are based on the Pension
          Schemes' buy-out deficits;

   (4) showing the Pension Schemes' actuary's buy-out  
       calculations are reasonable because:

       -- the Pension Schemes' actuary's estimates are
          consistent with the U.K. buy-out market;

       -- the SCSL Committee's expert opined that the
          assumptions underlying the buy-out calculations are
          reasonable;

       -- the buy-out calculations performed by PwC are
          consistent with Mercer Human Resource
          Consulting, Ltd.'s calculations;

       -- the purported "proposal" from Lucida PLC provides no
          basis to conclude that the Pension Settlement is
          unreasonable; and

       -- of the SCL Committee's unsuccessful efforts to
          discredit Mr. Hosegood's calculations;

   (5) showing the 1983 Pension Scheme's December 31, 2005,
       actuarial valuation and December 31, 2006, actuarial
       report do not reflect the scheme's current funding
       position because:

       -- the 1983 Pension Scheme's statutory funding objective
          and technical provisions as reflected in the 2005
          Actuarial Valuation do not take into account the
          Debtors' insolvency; and

       -- the 1983 Pension Scheme's technical provisions as
          reflected in the 2006 Actuarial Report do not take
          into account the Debtors' insolvency;

   (6) concerning the inapplicability of the investment
       allocation and prudent investor rate proposed by the SCL
       Committee's experts:

       -- John Parks of Navigant Consulting, Inc., is not
          qualified to render an opinion concerning the proper
          investment allocation for U.K. pension schemes;

       -- Mr. Parks' proposed investment allocation for the
          Pension Schemes is neither prudent nor reasonable;

       -- the 2007 edition of the Purple Book, a joint
          publication of the Pensions Regulator and the Pension
          Protection Fund, does not provide any support for
          Mr. Parks' proposed investment allocation; and

       -- the prudent investor rate has no relevance to the
          valuation of the Pension Claims; and

   (7) showing that the FSDs were not procured through a
       violation of the automatic stay because:

       -- the Pensions Regulator focused on the Pension Schemes'
          financial condition prior to the Petition Date;

       -- issuance of the FSDs does not implicate the automatic
          stay;

       -- the Debtors did not then, and do not now, contend that
          issuance of the FSDs constitutes a violation of the
          automatic stay;

       -- the SCL Committee's awareness of, and involvement in
          the FSD process; and

       -- the SCSL Committee's actions before the Pensions
          Regulator were necessitated by the Debtors' opposition
          to the FSDs.

               SCL Committee Still Not Convinced
               on Pension Settlement's Approval

In its post-trial submission, the SCL Committee argues that the
Settlement Amount assumes a statutory entitlement that does not,
and may not exist, and that it was calculated using improper
methodology by an interested party.

The SCL Committee also asserts, among other things, that:

   (1) the Pension Trustees' contribution demands do not trigger
       a present Section 75 buy-out liability, and are invalid
       in any event;

   (2) Mr. Hosegood did not employ the methodology required by
       Section 75 and Regulation 5(12) of the Occupational
       Pension Schemes Regulations 2008 in calculating the
       buy-out debt;

   (3) even under English law, the Court is not bound by Mr.
       Hosegood's calculation of the Section 75 buy-out debt,
       and is free to consider the work of other actuaries in
       determining the Pension Claims;

   (3) allowing the Pension Schemes to establish the quantum of
       the Pension Claims through their own actuary violates
       U.S. policy;

   (4) where no Section 75 debt has been triggered, and the
       services agreement between SCL and SCSL, does not provide
       an indemnity for a Section 75 debt, the actual damage
       measure -- as calculated on the technical provisions or
       under the prudent investor rule -- is the proper measure
       of the Pension Claims;

   (5) if English law applies, Mr. Hosegood's calculation on the
       technical provisions is the proper measure of the scheme
       deficit;

   (6) Mr. Hosegood's technical provisions calculation assumed
       SCL's insolvency and status as a Chapter 11 debtor-in-
       possession;

   (7) the Pension Claims arise, and may be allowed only against
       Sea Containers Services, Limited;

   (  the FSDs were procured and issued in violation of the
       automatic stay, and should not be accorded comity;

   (9) the Pension Settlement's treatment of the Pension
       Schemes' expenses as administrative costs is
       unreasonable;

  (10) the Pension Settlement's proposed process for resolving
       the purported equalization claim is inappropriate, and
       the  equalization reserve is unreasonable;

  (11) the Pension Settlement must be rejected as a sub rosa
       plan of reorganization; and

  (12) the Pension Settlement's common-currency term restricts
       the plan, and violates the sub rosa rule.

           SCL Committee Ignores Court's Directions

At the close of the hearing held May 29, 2008, to consider the
approval of the Pension Settlement, parties were instructed to
submit "abbreviated" post-trial submissions, which were to
comprise basically of citations to the record that support the
various points they want to highlight to the Court.

In response to a question by counsel for the Debtors as to
whether the Court envisioned the submissions taking the form of
a "suggested set of findings and conclusions," the Court
clarified that the submissions should "not even [be] that
formal," though "more like that than a legal brief."  

The Debtors' counsel, Yosef Riemer, Esq., at Kirkland Ellis LLP,  
confirmed to the Court that the parties had obtained a copy of
the post-trial submission in the New Century bankruptcy case to
which the Court referred, and had agreed to submit their post-
trial submissions based on the New Century model on June 27.  No
party objected to Mr. Riemer's statement.

In compliance with the Court's direction, the SCSL Committee and
the Debtors filed their post-trial submissions based on the New
Century  model, relates David B. Stratton, Esq., at Pepper
Hamilton LLP, in Wilmington, Delaware.  The SCL Committee,
however, filed a "formal legal brief that contained substantive
legal arguments and citations to case law," Mr. Stratton says.

Although the SCSL Committee does not believe that the SCL
Committee's post-trial brief will have any impact on the outcome
of the Settlement Request, the extent to which the SCL Committee
has completely and unfairly disregarded the Court's directions
compels the SCSL Committee to bring the matter to Judge Carey's
attention, Mr. Stratton points out.

Mr. Stratton asserts that the SCSL Committee fully recognizes
that the added cost and delay of additional briefing at this
late stage would very likely outweigh any marginal benefit to
the Court.  Therefore, the SCSL Committee tells the Court, it is
not seeking an opportunity to submit a response to the SCL
Committee's post-trial brief.

"The [SCSL] Committee is confident that the Court will even the
playing field by disregarding arguments to which the [SCSL]
Committee has not had the opportunity to respond," Mr. Stratton
says.

                      About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 45;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


* BOOK REVIEW: Leveraged Management Buyouts
-------------------------------------------
Author:     Yakov Ahihud, editor
Publisher:  Beard Books
Softcover:  284 pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1587981386/internetbankrupt   

This book is the outcome of a 1988 conference organized by the
Salomon Brothers Center for the Study of Financial Institutions
at the Stern School of Business of New York University.  It
consists of 12 papers presented at that conference, papers that
represented the first ever in-depth study of leveraged
management buyouts (MBO).

MBOs were a hot topic in the late 1980s, as a rapidly growing
reorganization phenomenon closely tied to junk bonds.  Debate
over MBOs centered around two uncertainties: fairness to
shareholders and possible conflicts of interest between
management/acquirer and shareholders, and doubts about the
future performance of companies acquired through MBOs.

The authors' objective was to expand the understanding of
academics, practitioners, and policymakers of the causes and
consequences of MBOs and to contribute to data on appropriate
policies for legislation and regulation regarding them.

The first of three sections reviews characteristics and
consequences of MBOs.  The first chapter, by the editor, Yakov
Ahihud, surveys the empirical evidence on the effects of MBO
announcements on stock and bond prices.

He considers arguments for and against mandating an auction of
the MBO target firm and analyzes points of view about and
evidence on conflicts of interest between management and
shareholders.  He evaluates motivations for MBOs, such as tax
benefits and improved incentives.

The second chapter compares and contrasts the characteristics of
corporations subject to MBOs with other corporations.  Two
authors then look into performance of target firms before and
after buyouts.

One interviewed CEOs of corporations acquired by MBO about their
motivations for and changes in managerial strategy after the
MBO. Both authors found that buyouts were followed by
significant improvements in firms' performance.

The focal points of the second section were legal and tax
issues. The first chapter discusses the role of management in
MBOs, potential conflict with shareholder interests, and the
matter of fairness.  They analyzed court decisions and the
proposed remedies, and evaluated the legal consequences of
various business practices applied in MBOs.

The second chapter discusses the sources of tax benefits and
various financing methods, with a focus on employee stock option
plans.

The final chapter concluded that other reorganization strategies
could yield the same tax benefits as MBOs.

The final section presents a lively debate on policy and
legislative options to resolve issues that arise from MBOs.
Authors include a U.S. congressman, an SEC commissioner and
professors from Harvard Law School and the School of Law at
Stanford University.  Their viewpoints are discussed
compellingly and are often in opposition.  One author avowed
that MBOs were already over-regulated while another argued for
the need of an auction for the corporation once an MBO proposal
was announced.

Opinion on the two main questions addressed by the book was
varied.  With regard to fairness, while shareholders received an
average of 30-40 percent over market price for their shares,
some were prevented from reaping the benefits of shrewd post-
buyout strategies.

With regard to future performance clouded by heavy debt, some
MBOs failed, those that "may well have encountered difficulties
as a result of the financial pressures imposed by leveraged
transactions."  More were successful, however, becoming
"reinvigorated companies that have regained a sharp competitive
edge as a result of an MBO."

Anecdotal evidence suggested the successes were due to
management's desisting from "managing so they can get to the
country club by 3:00 p.m."

Yakov Amihud is the Ira Leon Rennert Professor of
Entrepreneurial Finance at the Stern School of Business, New
York University.

                            *********

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.  Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy
Agravante, Julybien Atadero and Peter A. Chapman, Editors.

Copyright 2008.  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 * * *