TCREUR_Public/080725.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, July 25, 2008, Vol. 9, No. 147

                            Headlines


A U S T R I A

ALC-AUTOLACKIERCENTER: Claims Registration Period Ends August 5
HABERL TRANSPORTE: Claims Registration Period Ends August 6
KNG LEASING: Claims Registration Period Ends August 4
LEBENBAUER SPEZIALTROCKENBAU: Claims Registration Ends August 14
QUARKS LLC: Claims Registration Period Ends August 11

XERIUM TECH: Names CEO Stephen R. Light as Chairman of the Board


B U L G A R I A

* Moody's Says Bulgarian Banking System is Stable


F R A N C E

BALLY TECHNOLOGIES: S&P Raises Rating to BB; Off CreditWatch
SPCM SA: S&P Puts BB Rating on US$315 Million Sr. Debt Issue


G E R M A N Y

ACHENBACH GMBH: Claims Registration Period Ends August 1
ARENA TRANS: Claims Registration Period Ends August 4
ASS WELLNESS: Claims Registration Period Ends August 4
ATEX AUTOMOTIVE: Claims Registration Period Ends August 20
BRILLENSCHMIEDE GMBH: Claims Registration Period Ends August 1

CREATIV CONCEPT: Claims Registration Period Ends July 30
DTE GMBH: Claims Registration Period Ends August 4
ENWA CONSULT: Claims Registration Period Ends August 4
FRITZ DINING: Claims Registration Period Ends August 4
HAGRO AUTOMOBILE: Claims Registration Period Ends August 4

HIGHSENSE GMBH: Claims Registration Period Ends August 1
HYBRID GMBH: Claims Registration Period Ends August 4
KNABE-DER REINIGUNGSPROFI: Claims Registration Ends August 1
METALLBAU PILZ: Claims Registration Period Ends August 1
MULTIMATIC STEUERUNGSBAU: Claims Registration Period Ends Aug. 1

OMEGA INTERNATIONAL: Claims Registration Period Ends August 4
PARKETT-TRAUTWEIN GMBH: Claims Registration Period Ends Aug. 4
STADTPARK HOTEL: Claims Registration Period Ends August 1
TMG REISETEAM: Claims Registration Period Ends August 1
UMI GMBH: Claims Registration Period Ends August 1


I T A L Y

ARES FINANCE: Fitch Affirms 'B+' Rating on EUR15MM Class F Notes


K A Z A K H S T A N

AGRARNO STROITELNO: Creditors Must File Claims by September 4
AISBERG-LES LLP: Claims Deadline Slated for September 9
AISK ALMATY: Claims Filing Period Ends September 4
BTA Bank: Repays Second Part of US$63 Million Islamic Loan
INCOMTYRE JSC: Creditors' Claims Due on September 9

KAZ INTER: Claims Registration Ends September 9
OTANDASTAR KAPCHAGAI: Creditors Must File Claims by September 4
SK & F OJSC: Claims Deadline Slated for September 9


K Y R G Y Z S T A N

PLAST CITY: Creditors Must File Proofs Claim by September 2


L U X E M B O U R G

EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass
MILLICOM INT'L: Acquires Amnet Telecoms for US$510 Million
MILLICOM INT'L: S&P's Outlook Unchanged on Amnet Acquisition


N E T H E R L A N D S

ICTS INTERNATIONAL Mahoney Cohen Expresses Going Concern Doubt
NXP B.V.: Moody's Lowers Corporate Family Rating to B2 from B1


R U S S I A

AOEIE IRKUTSKENERGO: Unit's Restructuring Cues S&P's Neg. Watch
BALTIC DAIRI: Creditors Must File Claims by August 28
DINAMO LLC: Creditors Must File Claims by August 21
EAST LLC: Bashkortostan Bankruptcy Hearing Slated for October 20
EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass

FINDER CJSC: Creditors Must File Claims by August 21
LEADER LLC: St. Petersburg Bankruptcy Hearing Set August 25
MEGA-STROY-PROM: Creditors Must File Claims by August 21
METAL-SERVICE LLC: Creditors Must File Claims by August 21
MOBILE TELESYSTEMS: Faces US$50 Million Back-Tax Claim

NIKOLAEVSKAYA FISHING: Creditors Must File Claims by July 28
NIVA CRYSTAL: Creditors Must File Claims by August 21
NOVOBEZGINSKOE CJSC: Creditors Must File Claims by August 21
OGK-5 OAO: Inks Deal for Cycle Gas Turbine Plant Construction
OIL-BITUMEN OJSC: Creditors Must File Claims by July 28

OPIN JSC: Fitch Assigns 'B' Long-Term and Short-Term ID Ratings
STILE LLC: Court Starts Bankruptcy Supervision Procedure
VIMPEL-COMMUNICATIONS: OJSC Faces US$54 Million Back Tax Claim
VOLGA-SPIRIT LLC: Creditors Must File Claims by August 21
WEST LLC: Creditors Must File Claims by August 21

YARSKOE CJSC: Creditors Must File Claims by August 21


S P A I N

AYT COLATERALES: Fitch Assign BB- Rating on EUR6MM Class D Notes
AYT GOYA: Fitch Rates EUR3.25 Million Class D Notes at BB
SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses
SAS AB: Spanair Sells Club Vacaciones Tour Unit


S W E D E N

SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses
SAS AB: Spanair Sells Club Vacaciones Tour Unit


S W I T Z E R L A N D

DIVE ADVENTURE: Creditors Must File Proofs of Claim by Sept. 13
DUFT KLINIK: Creditors Have Until August 14 to File Claims
FASSAG JSC: Court Commences Bankruptcy Proceedings
FITMACHER LLC: Sets Aug. 15 Deadline for Filing Proofs of Claim
GENERAL MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy

HARE LLC: Deadline to File Proofs of Claim Set August 7
HB-TECH FUR PROJEKTIERUNG: Creditors' Claim Due by August 7
INSPIRING SYSTEM: Creditors Have Until Sept. 20 to File Claims
IMMOPACK LLC: Deadline to File Proofs of Claim Set August 21
MARKUS WILLI: Creditors Must File Proofs of Claim by Aug. 29

MIV-IMMOBILIEN LLC: Claims Filing Deadline Set August 7
RH HUMANITAS: Sept. 30 Set as Deadline to File Proofs of Claim


U K R A I N E

CENTER MEGANOM: Creditors Must File Claims by August 8
ETALON-LIS: Proofs of Claim Filing Deadline Set August 9
EXPERIMENTAL WINERY: Proofs of Claim Filing Deadline Set Aug. 9
EXPRESSBUILDING BF: Creditors Must File Claims by August 8
INDUSTRIAL ASSEMBLY: Proofs of Claim Filing Deadline Set Aug. 9

MILKA LLC: Proofs of Claim Filing Deadline Set August 9
MINE BUILDING: Creditors Must File Claims by August 9
PAVLOGRAD MILK: Creditors Must File Claims by August 8
TISA-95 LLC: Creditors Must File Claims by August 8
UKRAINIAN MTN: Fitch Rates US$2BB LPN Program for Notes 'BB-'

VSEUKRAINSKY AKTSIONERNY: Fitch Holds 'B-' Issuer Default Rating


U N I T E D   K I N G D O M

C REALISATIONS: Calls In Liquidators from PricewaterhouseCoopers
DALECLASS LTD:  Bank of Scotland Taps Receivers from Kroll
FORD MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy
HORNERS MOTOR: Bank of Scotland Taps Receivers from BDO Stoy
INTERPUBLIC GROUP: Secures US$335 Mln Revolving Credit Facility

INTERPUBLIC GROUP: Fitch Rates US$335 Mln Credit Facility at BB+
MG ROVER: Creditors May Receive Final Payouts in 2010
MOBILE MATTERS: Manchester Court Orders Winding Up Proceedings
NEWARK GROUP: Brings In Liquidators from Ernst & Young
NORTHERN ROCK: Names Gary Hoffman as CEO Effective October 1

PROFESSIONAL RECRUITMENT: Court Orders Closure of Business
SIMSHU 2: Claims Filing Period Ends August 20
SPICE INNS: Brings In Joint Administrators from BDO Stoy Hayward
TALISMAN-6 FINANCE: Fitch Junks Rating on EUR15.48MM Notes
TRUSTGUARD CREDIT: Credit Crunch Spurs Administration

* Fitch Holds Low-B Support Floor Ratings on Bldg. Societies
* Fitch: Some UK Homebuilders Face Default Risk in 12 Months
* Fitch: UK Credit Cards ABS Deal Delay Won't Affect Ratings
* Fitch Says Negative Rating Trend in Global Banks Persists
* Fitch Says EC's Proposed Restrictions Need More Definition
* Ernst & Young ITEM Expects UK Economy Inflation to Remain High
* Credit Crunch Hits UK Companies Harder, a KPMG Survey Says

* BOOK REVIEW: Corporate Players: Designs for Working


                            *********


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


ALC-AUTOLACKIERCENTER: Claims Registration Period Ends August 5
---------------------------------------------------------------
Creditors owed money by LLC ALC-Autolackiercenter have until
Aug. 5, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr.iur. M.B.L. Guenther Grassner
         Suedtirolerstrasse 4-6
         4020 Linz
         Austria
         Tel: +43 7077 0815
         Fax: +43 7077 0816
         E-mail: lawfirm@gltp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Aug. 19, 2008, for the
examination of claims at:

         The Land Court of Linz
         Room 522
         5th Floor
         Linz
         Austria

Headquartered in Ansfelden, Austria, the Debtor declared
bankruptcy on June 20, 2008, (Bankr. Case No. 17 S 26/08k).


HABERL TRANSPORTE: Claims Registration Period Ends August 6
-----------------------------------------------------------
Creditors owed money by LLC Haberl Transporte have until
Aug. 6, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Thomas Boechzelt
         Krottendorfer Gasse 4
         8700 Leoben
         Austria
         Tel: 03842-48117
         Fax: 03842-48117-11
         E-mail: office@ra-ahb.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 1:30 p.m. on Aug. 20, 2008, for the
examination of claims at:

         The Land Court of Leoben
         Hall IV
         1st Floor
         Leoben
         Austria


KNG LEASING: Claims Registration Period Ends August 4
-----------------------------------------------------
Creditors owed money by LLC KNG Leasing have until Aug. 4, 2008,
to file written proofs of claim to the court-appointed estate
administrator:
         
         Thomas Steiner
         Weihburggasse 18-20/50
         1010 Vienna
         Tel: 513 5363
         Fax: 513 5363-17
         E-mail: steiner.steiner@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Aug. 18, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1705
         Vienna

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 20, 2008, (Bankr. Case No. 3 S 67/08k).


LEBENBAUER SPEZIALTROCKENBAU: Claims Registration Ends August 14
----------------------------------------------------------------
Creditors owed money by KG Lebenbauer Spezialtrockenbau have
until Aug. 14, 2008, to file written proofs of claim to the
court-appointed estate administrator:

         Michael Schnalzer
         Bismarkstr. 5
         8280 Fuerstenfeld
         Austria
         Tel: 03382/52610
         Fax: 03382/52331-16
         E-mail: kbs@recht-so.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on Aug. 21, 2008, for the
examination of claims at:

         The Land Court of Graz
         Room 222
         2nd Floor
         Graz
         Austria

Headquartered in Fuerstenfeld, Austria, the Debtor declared
bankruptcy on June 20, 2008, (Bankr. Case No. 26 S 71/08y).


QUARKS LLC: Claims Registration Period Ends August 11
-----------------------------------------------------
Creditors owed money by LLC Quarks have until Aug. 11, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Dr. Erhard Hackl
         Hofgasse 7
         4020 Linz
         Austria
         Tel: 0732/776234, 776235
         Fax: 0732/776234 22
         E-mail: hackl.hatak@aon.at

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

         The Land Court of Linz
         Room 522
         5th Floor
         Linz
         Austria

Headquartered in Linz, Austria, the Debtor declared bankruptcy
on June 18, 2008, (Bankr. Case No. 12 S 51/08z).


XERIUM TECH: Names CEO Stephen R. Light as Chairman of the Board
----------------------------------------------------------------
Xerium Technologies Inc.'s board of directors has appointed
Stephen R. Light, Xerium's president and chief executive
officer, as its chairman of the board of directors.  

The board also has appointed Michael Phillips, who has served as
a director since December 1999, to the new position of vice
chairman of the board.  John S. Thompson, who stepped down after
serving as board chairman since July 2004, will continue to
serve as a director.

"The entire board and I are very grateful to [Mr. Thompson] for
his stewardship during times of momentous change and progress,
including the IPO, a major debt refinancing, and a smooth
transitioning to new leadership," Mr. Light commented.  "We look
forward to continuing to benefit from [[Mr. Thompson's] wisdom
and experience as an active member of our board.  All of us at
Xerium are fully committed to moving forward with our recently
announced strategic repositioning, which calls for us to improve
this company's financial strength and operational efficiency to
the benefit of our numerous stakeholders, which includes all of
our employees, suppliers, customers, and shareholders."

Mr. Light joined Xerium as president and CEO, well as a
director, in February 2008.  Prior to joining Xerium, he
completed the turnaround of Flow International Corp., a producer
of industrial waterjet cutting and cleaning equipment.  Mr.
Light also served as president and CEO of OmniQuip Textron, and
held senior level management positions at General Electric,
Emerson Electric and N.V. Phillips.

Mr. Phillips is a partner with private equity firm Apax Partners
Beteiligungsberatung GmbH, which is an affiliate of Apax Europe
IV GP Co. Ltd., the beneficial owner of approximately 54.3% of
the outstanding shares of common stock of Xerium Technologies.

Mr. Phillips joined Apax Partners in 1992, he is a member of the
Executive Committee and Apax Approval, Investment and Exit
Committees and he leads the Munich office.

Mr. Thompson has served as a director and chairman of the board
since July 2004.  He served as chief executive officer of SPS
Technologies Inc., a manufacturer of specialty fasteners,
assemblies, precision components, metalworking, magnetic
products and superalloys listed on the New York Stock Exchange,
from April 2002 to December 2003, when he retired.  He also
served as its president and chief operating officer from October
1999 to March 2002, and as a director from April 2000 to
December 2003.

                    About Xerium Technologies

Based on Youngsville, North Carolina, Xerium Technologies Inc.
(NYSE: XRM) -- http://www.xerium.com/-- manufactures and  
supplies  consumable products used in the production of paper:
clothing and roll covers.  With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.

                        *     *     *

As disclosed in the Troubled Company Reporter on June 9, 2008,
Moody's Investors Service revised Xerium Technologies, Inc.'s
outlook to positive from negative, upgraded its speculative
grade liquidity rating to SGL-3 from SGL-4, and upgraded its
probability of default rating to Caa1 from Caa2.

As related in the Troubled Company Reporter on June 5, 2008,
Standard & Poor's Ratings Services affirmed its ratings on
Xerium Technologies Inc., including the 'CCC+' corporate credit
rating, and removed them from CreditWatch, where they were
originally placed with negative implications on March 19, 2008.  
At the same time, S&P assigned a positive outlook.


===============
B U L G A R I A
===============


* Moody's Says Bulgarian Banking System is Stable
-------------------------------------------------
The fundamental credit outlook for the Bulgarian banking system
remains stable, although there are concerns over future asset
quality as a result of past rapid credit growth and increasingly
challenging funding conditions, which are likely to pressure
interest rate margins further, says Moody's Investors Service in
its new Banking System Outlook for Bulgaria.  Most of the banks
display generally good domestic franchises, solid profitability
levels underpinned by elevated business volumes and healthy,
although tightening, interest margins and comfortable capital
levels.

Moody's stable outlook for the Bulgarian banking system
expresses the rating agency's view on the likely future
direction of fundamental credit conditions in the industry over
the next 12 to 18 months.  It does not represent a projection of
rating upgrades versus downgrades.

In addition to the 'Banking System Outlook', which focuses on
performance measures and forward-looking rating drivers for the
Bulgarian banking system, Moody's has also published a 'Banking
System Profile' report for Bulgaria.  The Profile forms part of
a new series of reports on banking systems throughout the world,
which are designed to complement Moody's Banking System Outlook
reports by serving as descriptive reference guides to key
structural factors that are reflected in Moody's bank credit
ratings.

"Bulgaria's improving regulatory and supervisory environment and
the positive economic cycle are supportive for the franchise
development of the country's banks.  However, the banks
increasingly face challenging funding conditions due to both
intense competition domestically and the rising uncertainty in
the global financial markets, which has had an adverse impact on
their foreign parents' financial standing and ability to
continue channeling funds to their Bulgarian subsidiaries at
very low costs," explains Elena Panayiotou, a Moody's Analyst
and author of the reports.

Although credit demand is likely to remain at strong levels and
continue to support banks' franchise growth, Moody's cautions
that the rapid credit expansion could result in a high level of
non-performing loans in the system in an economic downturn and
that rising consumer indebtedness raises concerns about the
future performance of these borrowers, particularly in the
context of a relatively unseasoned credit portfolio.

"The Bulgarian banking system is highly fragmented, with the
majority of the system's assets being concentrated in the hands
of large Western European institutions with a strong presence in
South Eastern Europe.  Competition in the market is fierce, with
all banks aiming to build market shares not only in the
corporate segment but also in the high-yielding retail segment
through their fast-expanding distribution networks," says Ms.
Panayiotou.

The active involvement of foreign banks in the Bulgarian banking
system has resulted in greater expertise, improved risk
management processes, better quality of service and greater
product innovation.  However, there remains room for further
improvement in corporate governance practices and transparency,
in Moody's opinion.  Bulgarian banks are likely to continue to
generate good returns on their high business volumes and
maintain adequate comfortable capital positions.

Moody's views Bulgaria as a low-support country.  Despite the
increasing importance of the banking sector to the payment
system, the currency board that has been in place since 1997
limits the ability of the central bank to provide direct support
to a financial institution in case of distress.  Bulgaria has a
deposit insurance guarantee scheme, which provides coverage to
private sector customer deposits.

The regulatory and supervisory framework is still evolving but,
in Moody's view, is currently of good quality with prudent
measures in place and good level of formalization of procedures
and rules.  Further improvements in transparency would raise
further the confidence in the country's financial and banking
system.  Moody's regards positively the continuous steps taken
by the central bank to enhance its supervisory techniques and
oversight, and its openness in adapting to EU regulations and
standards.


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


BALLY TECHNOLOGIES: S&P Raises Rating to BB; Off CreditWatch
------------------------------------------------------------
Standard & Poor's Ratings Services has raised its ratings on Las
Vegas, Nev.-based Bally Technologies Inc.; the corporate credit
rating was raised to 'BB' from 'B+'.  The ratings were removed
from CreditWatch, where they were placed with positive
implications Nov. 5, 2007. The rating outlook is stable.

At the same time, we raised the issue-level rating on Bally's
senior secured credit facilities to 'BB+' (one notch higher than
the 'BB' corporate credit rating) and assigned a recovery rating
of '2' to the loans, indicating that lenders can expect
substantial (70% to 90%) recovery in the event of a payment
default.

"The rating upgrade is based on continuing robust operating
performance demonstrated over the past several quarters, coupled
with a significant improvement in credit metrics, which we
believe is sustainable," explained Standard & Poor's credit
analyst Melissa Long.  "We expect Bally to continue to post
relatively good operating results over the intermediate term,
although that growth will moderate somewhat in the coming
quarters, given economic weakness, which is affecting the U.S.
gaming industry."

The rating on Bally reflects the company's exposure to product
sales volatility, the existence of a much larger and well-
established competitor (International Game Technology), and the
expectation for a moderation in the operating environment during
the next few quarters as a result of slower replacement sales
and economic weakness.  These factors are tempered by the
company's No. 2 position in the North American gaming equipment
market, its expanding base of gaming devices and systems, and
strong credit measures for the rating, which we expect provide
ample cushion in a slowdown.

For the nine months ended March 31, 2008, Bally reported EBITDA
of US$188.2 million, up about 142% year over year.  The EBITDA
improvements, along with modest debt repayment, have resulted in
total debt to EBITDA (adjusted for operating leases) and EBITDA
coverage of interest for the 12 months ended March 31, 2008,
improving to 1.2x and 8.9x, respectively.  This compares with
3.3x and 3.2x, respectively, for the previous 12-month period.

The credit measures are currently strong for the rating and
afford some flexibility for share repurchases, acquisitions, or
a weakening operating environment.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Mississippi.  The company's South
American operations are located in Argentina.  The company also
has operations in France, Germany, Macau, China, India, and the
United Kingdom.


SPCM SA: S&P Puts BB Rating on US$315 Million Sr. Debt Issue
------------------------------------------------------------
Standard & Poor's Ratings Services has assigned an issue-level
rating of 'BB' to the US$315 million senior secured debt issues
of French chemicals group SPCM S.A. (BB-/Stable/--), one notch
above the 'BB-' corporate credit rating on the company.  At the
same time, S&P assigned a recovery rating of '2' to this debt,
indicating its expectation of substantial (70%-90%) recovery for
secured creditors in the event of a payment default.
     
S&P has also withdrawn the 'BB' issue and '2' recovery ratings
on the group's former EUR150 million secured facilities
following refinancing.  
     
The issue rating on the EUR210 million senior unsecured notes
due 2013 remains at 'BB-', in line with the corporate credit
rating, with a recovery rating of '3', indicating S&P's
expectation of meaningful (50%-70%) recovery for unsecured
creditors in the event of a payment default.
     
The long-term corporate credit rating on SPCM reflects the
group's somewhat weak cash flow metrics and thin free operating
cash flow, limited product diversification, and industry
competition.  Partially offsetting these negative factors are
main unit SNF's world market leadership in specialty and
intermediate water treatment polymers, adequate liquidity, and
growth prospects.


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


ACHENBACH GMBH: Claims Registration Period Ends August 1
--------------------------------------------------------
Creditors of Achenbach GmbH have until Aug. 1, 2008, to register
their claims with court-appointed insolvency manager Dr. Martin
Heidrich.

The District Court of Hof will verify the claims set out in the
insolvency manager's report at 1:00 p.m. on Aug. 27, 2008, at:

         The District Court of Hof
         Meeting Hall 012
         Ground Floor
         Berliner Platz 1
         95030 Hof
         Germany

Creditors may constitute a creditors' committee or opt to
appoint a new insolvency manager.

The insolvency manager can be reached at:

         Dr. Martin Heidrich
         Grillparzer Str. 16
         c/o Rechtsanwalte Dr. Pannen
         81675 Munich
         Germany
         Tel: 089/41619340
         Fax: 089/4161934180

The District Court of Hof opened bankruptcy proceedings against
Achenbach GmbH on May 30, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Achenbach GmbH
         Reinersreuther Str. 10
         95239 Zell
         Germany

         Attn: Hans-Joachim Achenbach, Manager
         Winholzstr. 11
         95239 Zell
         Germany


ARENA TRANS: Claims Registration Period Ends August 4
-----------------------------------------------------
Creditors of Arena Trans GmbH have until Aug. 4, 2008, to
register their claims with court-appointed insolvency manager
Dr. Michael Jaffe.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 Munich
         Meeting Hall 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. Michael Jaffe
         Franz-Joseph-Str. 8
         80801 Munich
         Germany
         Tel: 089/255487-00
         Fax: 255487-10

The District Court of Munich opened bankruptcy proceedings
against Arena Trans GmbH on June 18, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Arena Trans GmbH
         Attn: Halil Koesem, Manager
         Lerchenauerstr. 7
         80809 Munich
         Germany


ASS WELLNESS: Claims Registration Period Ends August 4
------------------------------------------------------
Creditors of ASS Wellness GmbH, Sport & Fitness have until
Aug. 4, 2008, to register their claims with court-appointed
insolvency manager Karl-Heinz Trebing.

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 Hanau
         Room 111
         Engelhardstrasse 21
         63450 Hanau
         Germany

The Court will also verify the claims set out in the insolvency
manager's report at 10:10 a.m. on the same date at the same
venue, while creditors may constitute a creditors' committee or
opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Karl-Heinz Trebing
         Hanauer Landstr. 287-289
         60314 Frankfurt/M
         Germany
         Tel: 069/15051530
         Fax: 069/15051400

The District Court of Hanau opened bankruptcy proceedings
against ASS Wellness GmbH, Sport & Fitness on May 26, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         ASS Wellness GmbH, Sport & Fitness
         Lise Meitner Str. 20
         63457 Hanau
         Germany

         Attn: Uwe Schwarzkopf and Antonio Garcia, Managers
         Friedhofstr. 40
         63796 Kahl
         Germany


ATEX AUTOMOTIVE: Claims Registration Period Ends August 20
----------------------------------------------------------
Creditors of ATEX AUTOMOTIVE GmbH & Co. KG have until
Aug. 20, 2008, to register their claims with court-appointed
insolvency manager Albert Hirt.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on Sept. 17, 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 Rottweil
         Room 0.05
         Branch Office
         Koernerstr. 29
         78628 Rottweil
         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:

         Albert Hirt
         Berner Feld 74
         78628 Rottweil
         Germany
         Tel: 0741-1754050
         Fax: 0741-1754020

The District Court of Rottweil opened bankruptcy proceedings
against ATEX AUTOMOTIVE GmbH & Co. KG on July 1, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         ATEX AUTOMOTIVE GmbH & Co. KG
         Attn: Knut Leube, Manager  
         Heerstr. 85
         78628 Rottweil
         Germany


BRILLENSCHMIEDE GMBH: Claims Registration Period Ends August 1
--------------------------------------------------------------
Creditors of Brillenschmiede GmbH have until Aug. 1, 2008, to
register their claims with court-appointed insolvency manager  
Uwe Bendig.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 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 Niebuell
         Hall 1        
         Sylter Bogen 1 A
         25899 Niebuell
         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 Bendig
         Dockenhudener Strasse 20
         22587 Hamburg
         Germany

The District Court of Niebuell opened bankruptcy proceedings
against Brillenschmiede GmbH on June 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

        Brillenschmiede GmbH
        Attn: Frau Silke Jepsen-Quednau, Manager
        Schafmarkt 2
        25917 Leck
        Germany


CREATIV CONCEPT: Claims Registration Period Ends July 30
--------------------------------------------------------
Creditors of Creativ Concept Bau GmbH have until July 30, 2008,
to register their claims with court-appointed insolvency manager
Natascha Habura.

Creditors and other interested parties are encouraged to attend
the meeting at noon 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 Kleve
         Meeting Hall C 58
         Ground Floor
         Schlossberg 1
         47533 Kleve
         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:

         Natascha Habura
         Eichendorffstrasse 25
         47800 Krefeld
         Germany
         Tel: 0215180580
         Fax: 02151805858

The District Court of Kleve opened bankruptcy proceedings
against Creativ Concept Bau GmbH on July 8, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Creativ Concept Bau GmbH
         Empeler Strasse 122
         46459 Rees
         Germany


DTE GMBH: Claims Registration Period Ends August 4
--------------------------------------------------
Creditors of DTE GmbH have until Aug. 4, 2008, to register their
claims with court-appointed insolvency manager Ulrich Luppe.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on Sept. 1, 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 Halle-Saalkreis
         Hall 1.043
         Judicial Center
         Thueringer Str. 16
         06112 Halle
         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:

         Ulrich Luppe
         Hansering 9/10
         06108 Halle
         Germany
         Tel: 0345/614070
         Fax: 0345/6140710

The District Court of Halle-Saalkreis opened bankruptcy
proceedings against DTE GmbH on June 5, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         DTE GmbH
         Attn: Dr. Heiko Tauchnitz, Manager
         Fritz-Haber-Str. 9
         06217 Merseburg
         Germany


ENWA CONSULT: Claims Registration Period Ends August 4
------------------------------------------------------
Creditors of ENWA Consult Ingenieurgesellschaft mbH have until
Aug. 4, 2008, to register their claims with court-appointed
insolvency manager Petra Fuchs.

Creditors and other interested parties are encouraged to attend
the meeting at 11:50 a.m. on Aug. 21, 2008, at which time the
insolvency manager will present her first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Hanau
         Area E03
         Engelhardstrasse 21
         63450 Hanau
         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:

         Petra Fuchs
         Schafergasse 17
         D 60313 Frankfurt
         Germany
         Tel: 069 / 138107-0
         Fax: 069 / 138107-10

The District Court of Hanau opened bankruptcy proceedings
against ENWA Consult Ingenieurgesellschaft mbH on June 3, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         ENWA Consult Ingenieurgesellschaft mbH
         Kilianstadter Str. 36
         61137 Schoeneck-Buedesheim
         Germany

         Attn: Volker Schafer, Manager
         Tannenweg 19
         78713 Schramberg
         Germany


FRITZ DINING: Claims Registration Period Ends August 4
------------------------------------------------------
Creditors of Fritz Dining Verwaltungsgesellschaft mbH have until
Aug. 4, 2008, to register their claims with court-appointed
insolvency manager Manuel Sack.

Creditors and other interested parties are encouraged to attend
the meeting at 11:20 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 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:

         Manuel Sack
         Schiffgraben 30
         30175 Hannover
         Germany
         Tel: 0511 36602-0
         Fax: 0511 36602-55

The District Court of Hannover opened bankruptcy proceedings
against Fritz Dining Verwaltungsgesellschaft mbH on June 20,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Fritz Dining Verwaltungsgesellschaft mbH
         Podbielskistr. 44
         30177 Hannover
         Germany

         Attn: Dr. Olaf Buechler, Manager
         Herrengraben 3
         20459 Hamburg
         Germany


HAGRO AUTOMOBILE: Claims Registration Period Ends August 4
----------------------------------------------------------
Creditors of Hagro automobile GmbH have until Aug. 4, 2008, to
register their claims with court-appointed insolvency manager
Herbert Feigl.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 1, 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 Halle-Saalkreis
         Hall 1.043
         Judicial Center
         Thueringer Str. 16
         06112 Halle
         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:

         Herbert Feigl
         Hansering 1
         D 06108 Halle
         Germany
         Tel: 0345/212220
         Fax: 0345/2122222

The District Court of Halle-Saalkreis opened bankruptcy
proceedings against Hagro automobile GmbH on June 3, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Hagro automobile GmbH
         C/o Autohaus Hora GmbH
         Attn: Hartmut Gross, Liquidator
         Weissenfelser Strasse
         06667 Langendorf
         Germany


HIGHSENSE GMBH: Claims Registration Period Ends August 1
--------------------------------------------------------
Creditors of HighSense GmbH have until Aug. 1, 2008, to register
their claims with court-appointed insolvency manager Oliver
Schartl.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 8, 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 Hall 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:

         Oliver Schartl
         Schwanthalerstr. 32
         80336 Munich
         Germany
         Tel: 089-545110
         Fax: 089-54511-444

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

The Debtor can be reached at:

         HighSense GmbH
         Leopoldstr. 250
         80807 Munich
         Germany


HYBRID GMBH: Claims Registration Period Ends August 4
-----------------------------------------------------
Creditors of HYBRID GmbH have until Aug. 4, 2008, to register
their claims with court-appointed insolvency manager Sven Bader.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Aug. 21, 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 Wuppertal
         Meeting Room A234
         Second Floor
         Isle 2
         42103 Wuppertal
         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:

         Sven Bader
         Carl-Grueber-Weg 14
         42853 Remscheid
         Germany
         Tel: 02191/421010
         Fax: 02191/421070

The District Court of Wuppertal opened bankruptcy proceedings
against HYBRID GmbH on June 27, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         HYBRID GmbH
         Attn: Oezden Yilmaz, Manager
         Berghauser Str. 62
         42859 Remscheid
         Germany


KNABE-DER REINIGUNGSPROFI: Claims Registration Ends August 1
------------------------------------------------------------
Creditors of Knabe-Der Reinigungsprofi GmbH have until
Aug. 1, 2008, to register their claims with court-appointed
insolvency manager Christian Hellmich.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 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 Ludwigsburg
         Hall 2008
         Palace Schuetz
         Schorndorfer Str. 28
         Ludwigsburg
         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 Hellmich
         Koenigstr. 20
         70173 Stuttgart
         Germany
         Tel. (0711) 223320
         Fax. (0711) 22332-516

The District Court of Ludwigsburg opened bankruptcy proceedings
against Knabe-Der Reinigungsprofi GmbH on July 8, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

        Knabe-Der Reinigungsprofi GmbH
        Marktstr. 34
        71522 Backnang
        Germany


METALLBAU PILZ: Claims Registration Period Ends August 1
--------------------------------------------------------
Creditors of Metallbau Pilz GmbH have until Aug. 1, 2008, to
register their claims with court-appointed insolvency manager
Joachim Klein II.

Creditors and other interested parties are encouraged to attend
the meeting at 11:07 a.m. on Aug. 29, 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 Cologne
         Meeting Hall 142
         First Floor
         Luxemburger Strasse 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Joachim Klein II
         Hansaring 79-81
         50670 Cologne
         Germany

The District Court of Cologne opened bankruptcy proceedings
against Metallbau Pilz GmbH on June 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Metallbau Pilz GmbH
         Girlitzweg 28
         50829 Cologne
         Germany


MULTIMATIC STEUERUNGSBAU: Claims Registration Period Ends Aug. 1
----------------------------------------------------------------
Creditors of Multimatic Steuerungsbau GmbH have until
Aug. 1, 2008, to register their claims with court-appointed
insolvency manager Klaus Knetter.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Aug. 22, 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 Bielefeld
         Hall 4065
         Fourth Floor
         Gerichtstrasse 66
         33602 Bielefeld
         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:

         Klaus Knetter
         Otto-Brenner-Str. 186
         33604 Bielefeld
         Germany

The District Court of Bielefeld opened bankruptcy proceedings
against Multimatic Steuerungsbau GmbH on July 1, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Multimatic Steuerungsbau GmbH
         Fabrikstr. 24
         33659 Bielefeld
         Germany


OMEGA INTERNATIONAL: Claims Registration Period Ends August 4
-------------------------------------------------------------
Creditors of Omega International Verwaltungsservice GmbH have
until Aug. 4, 2008, to register their claims with court-
appointed insolvency manager Alfred Ponzer.

Creditors and other interested parties are encouraged to attend
the meeting at 8:50 a.m. on Aug. 28, 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 Wolfratshausen
         Meeting Room 3/I         
         Station Route 18
         Wolfratshausen
         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:

         Alfred Ponzer
         Marktplatz 18
         83607 Holzkirchen
         Germany
         Tel: 08024/30580
         Fax: 08024/305820

The District Court of Wolfratshausen opened bankruptcy
proceedings against Omega International Verwaltungsservice GmbH
on June 30, 2008.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be reached at:

         Omega International Verwaltungsservice GmbH
         Schmied-Kochel-Weg 12
         83700 Rottach-Egern
         Germany


PARKETT-TRAUTWEIN GMBH: Claims Registration Period Ends Aug. 4
--------------------------------------------------------------
Creditors of Parkett-Trautwein GmbH have until Aug. 4, 2008, to
register their claims with court-appointed insolvency manager
Kaufmann Joachim Schmitz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 3, 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 Braunschweig
         E 01
         Martinikirche 8
         38100 Braunschweig
         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:

         Kaufmann Joachim Schmitz
         Immengarten 2
         D 38104 Braunschweig
         Germany
         Tel: (0531) 23 64 60
         Fax: (0531) 23 64 69 9

The District Court of Braunschweig opened bankruptcy proceedings
against Parkett-Trautwein GmbH on June 10, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Parkett-Trautwein GmbH
         Attn: Manfred Dube, Manager
         Engelsstrasse 24
         38126 Braunschweig
         Germany


STADTPARK HOTEL: Claims Registration Period Ends August 1
---------------------------------------------------------
Creditors of Stadtpark Hotel GmbH have until Aug. 1, 2008, to
register their claims with court-appointed insolvency manager
Dr. Hans-Joerg Laudenbach.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 1, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         District Court of Fritzlar
         Room 17
         Building A
         Schladenweg 1
         34560 Fritzlar
         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-Joerg Laudenbach
         Carlo-Mierendorff-Str. 15
         35398 Giessen
         Germany
         Tel: 0641/98292-15
         Fax: 0641/98292-16

The District Court of Fritzlar opened bankruptcy proceedings
against Stadtpark Hotel GmbH on May 2, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Stadtpark Hotel GmbH
         Europaplatz 3
         34582 Borken
         Germany


TMG REISETEAM: Claims Registration Period Ends August 1
-------------------------------------------------------
Creditors of TMG Reiseteam GmbH have until Aug. 1, 2008, to
register their claims with court-appointed insolvency manager
Dr. Marc d'Avoine.

Creditors and other interested parties are encouraged to attend
the meeting at 8:45 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 Wuppertal
         Meeting Hall A234
         Second Floor
         Eiland 2
         42103 Wuppertal
         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. Marc d`Avoine
         Doeppersberg 19
         42103 Wuppertal
         Germany
         Tel: 0202-245070
         Fax: 0202-2450777

The District Court of Wuppertal opened bankruptcy proceedings
against TMG Reiseteam GmbH on June 24, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

        TMG Reiseteam GmbH
        Steinbeck 54
        42119 Wuppertal
        Germany


UMI GMBH: Claims Registration Period Ends August 1
--------------------------------------------------
Creditors of UMI GmbH i.L. have until Aug. 1, 2008, to register
their claims with court-appointed insolvency manager Eberhard
Stock.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Aug. 8, 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 Krefeld
         Meeting Hall H 131
         First Floor         
         Nordwall 131
         47798 Krefeld
         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:

         Eberhard Stock
         Wilhelmshofallee 75
         47800 Krefeld
         Germany
         Tel: (02151) 5813-0
         Fax: +4921515813134

The District Court of Krefeld opened bankruptcy proceedings
against UMI GmbH i.L. on May 15, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         UMI GmbH i.L.
         Untergath 49
         47805 Krefeld
         Germany


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


ARES FINANCE: Fitch Affirms 'B+' Rating on EUR15MM Class F Notes
----------------------------------------------------------------
Fitch Ratings has upgraded Ares Finance S.r.l.'s Class D
floating-rate notes due March 2011 and revised the Outlook for
the Class F notes, as:

  -- EUR49 million Class C (XS0134905032): affirmed at 'AAA';
     Outlook Stable

  -- EUR45 million Class D (XS0134905206): upgraded to 'AAA'
     from 'A+'; Outlook Stable

  -- EUR30 million Class E (XS0134905388): affirmed at 'BB';
     Outlook Stable

  -- EUR15 million Class F (XS0134905545): affirmed at 'B+';
     Outlook revised to Negative from Stable

The upgrade is mainly due to the limited size of the notes still
outstanding compared with the remaining portfolio of non-
performing loans to be resolved.  It also reflects the expected
recoveries of EUR37.5 million from 1,042 positions with full
court resolution, which are likely to considerably reduce the
outstanding balance of the Class D Notes on the next payment
dates.  However, the collections performance remains below
Fitch's revised base case and, in the six months between
September 2007 and March 2008, gross recoveries were stable at
EUR28.7 million (compared to the EUR24.6 million for the six-
month period to September 2007 and the EUR34.7 million reported
in March 2007). Total cumulative gross collections in March 2008
were at EUR666.3 million, some EUR97 million below Fitch's
revised base case.  After the first three months of the current
semester, gross recoveries of the period have reached EUR13.2
million (as of 30 June 2008).

The continuously disappointing collections performance and the
reducing credit quality of the portfolio outstanding are still
exposing the most junior class, Class F, to the risk of missed
principal payment by their final legal maturity.  Therefore,
this class has been affirmed at its current rating, but the
Outlook has been revised to Negative.

Ares Finance S.r.l. is a securitization of a portfolio of
Italian NPL principled by Whitehall 2001 and Goldman Sachs
International and serviced by Societa Gestione Crediti and
Archon Group Italian Srl (rated 'RSS2+IT'/'CSS2+IT').  At
closing in 2001, the GBV of the pool was EUR1,540.5 million.

As of June 30, 2008, the outstanding portfolio accounts for
4,203 unresolved claims, for a total GBV of EUR878 million.  The
pool is mainly located in central (41% by GBV) and southern
Italy (27.8% by GBV).  Although 17% by GBV is in the
distribution phase, 73% by GBV consists of bankrupted claims,
for which the recovery timing is generally longer than for
claims whose borrower is solvent.


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


AGRARNO STROITELNO: Creditors Must File Claims by September 4
-------------------------------------------------------------  
The Specialized Inter-Regional Economic Court of North
Kazakhstan has declared LLP Agrarian Construction-Mounting
Company Agrarno Stroitelno-Montajnaya Kompaniya insolvent.

Creditors have until Sept. 4, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Jumabaev Str. 109-301
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


AISBERG-LES LLP: Claims Deadline Slated for September 9
-------------------------------------------------------  
LLP Georgian-Kazakh Joint Enterprise Aisberg-Les has declared
insolvency.  Creditors have until Sept. 9, 2008, to submit
written proofs of claims to:

         LLP Georgian-Kazakh Joint
         Enterprise Aisberg-Les
         Valihanov Str. 84-60
         Almaty
         Kazakhstan


AISK ALMATY: Claims Filing Period Ends September 4
--------------------------------------------------  
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Aisk Almaty Auyl Kurylysy insolvent.

Creditors have until Sept. 4, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Almatinskaya Str. 35
         Pokrovka
         Ilyisky
         Almaty
         Kazakhstan
         Tel: 8 777 226 20-31


BTA Bank: Repays Second Part of US$63 Million Islamic Loan
----------------------------------------------------------
BTA Bank has paid off a US$63 million second piece of Islamic
loan as scheduled.  The two-year Islamic loan was raised in
2006.  The margin for the second tranche was set at 70 b.p.

Calyon Bank and Abu Dhabi Islamic Bank acted as mandated lead
arrangers of the deal and consulted BTA Bank on Shariah and
Mudarabah principles.

The total loan amount was US$200 million.  The first tranche of
US$137 million with a margin of 40 b.p. was repaid in July 2007.

The borrowed funds were used to finance BTA clients according to
the Shariah law.

So far in 2008, BTA Bank has repaid US$623.9 million foreign
debts and still has US$74.4 million due by the end of the year,
which accounts for 2.3% of its assets.

                         About BTA Bank

Headquartered in Almaty, Kazakhstan, JSC BTA Bank --
http://bta.kz/en/-- is among biggest banks and leader in
creation of banking network in CIS.

BTA operating in the CIS and far-abroad countries is expanding
into the CIS countries.  Activities of its strategic bank
partners cover Ukraine, 4 regions in Russia, Belarus, Georgia,
Armenia, Kyrgyzstan and Turkey.  BTA runs its representative
offices in Russia, Ukraine, China and the United Arab Emirates.

In Kazakhstan, BTA's network consists of 22 branches and 256
cash settlement units.

                          *     *     *

Bank TuranAlem carries Long-term foreign currency IDR at BB+
from Fitch Ratings, which said the Outlook was Stable.

The company also carries Ba1 Foreign Currency Subordinate Debt
Ratings, Ba2 Foreign Currency Junior Subordinate Debt Rating and
D- Bank Financial Strength Rating from Moody's Investor Service.


INCOMTYRE JSC: Creditors' Claims Due on September 9
---------------------------------------------------  
JSC Incomtyre has declared insolvency.  Creditors have until
Sept. 9, 2008, to submit written proofs of claims to:

         JSC Incomtyre
         Kapal batyr Str.
         Shymkent
         South Kazakhstan
         Kazakhstan


KAZ INTER: Claims Registration Ends September 9
-----------------------------------------------  
The Specialized Inter-Regional Economic Court of Almaty has
declared JSC Kaz Inter Etno Spatrul insolvent on June 13, 2008.

Creditors have until Sept. 9, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Makataev Str. 196-36
         Almaty
         Kazakhstan
         Tel: 8 (7272) 79-86-66
              8 (7272) 79-86-76
              8 701 795 30-25


OTANDASTAR KAPCHAGAI: Creditors Must File Claims by September 4
---------------------------------------------------------------  
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Otandastar Kapchagai insolvent.

Creditors have until Sept. 4, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Almatinskaya Str. 35
         Pokrovka
         Ilyisky
         Almaty
         Kazakhstan
         Tel: 8 777 226 20-31


SK & F OJSC: Claims Deadline Slated for September 9
---------------------------------------------------  
The Specialized Inter-Regional Economic Court of Almaty has
declared OJSC Corporation SK & F insolvent on June 13, 2008.

Creditors have until Sept. 9, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Makataev Str. 196-36
         Almaty
         Kazakhstan
         Tel: 8 (7272) 79-86-66
              8 (7272) 79-86-76
              8 701 795 30-25


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


PLAST CITY: Creditors Must File Proofs Claim by September 2
-----------------------------------------------------------
LLC Plast City has declared insolvency.  Creditors have until
Sept. 2, 2008, to submit written proofs of claim to:

         LLC Plast City
         Bakayev Str. 57/2
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 59-58-45


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


EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass
--------------------------------------------------
Evraz Group S.A. is holding final talks to acquire Industrial
Union of Donbass Corporation, Bradley Cook writes Bloomberg
News, citing a sourced Kommersant report.

According to Bloomberg News, the acquisition would create a
combined company with over US$50 billion in market value, which
would be the world's fifth-biggest steelmaker.

Credit Suisse Group AG is advising the companies in the deal.

                         About Evraz

Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) --
http://www.evraz.com/-- manufactures and distributes steel and
related products.  In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in the Sverdlovsk
region and two mills in the Kemerovo region.

                         *     *     *

Evraz Group S.A. continues to carry Ba2 corporate family rating,
Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior
Notes due 2015 from Moody's Investors Service, which placed
them on review in March 2008 for possible downgrade.

The company also carries BB- long-term corporate credit and
senior unsecured debt ratings from Standard & Poor's Ratings
Services, with positive outlook.  The ratings were affirmed in
March 2008.

Evraz carries BB long-term Issuer Default and senior unsecured
ratings and B Short-term Issuer Default rating from Fitch
Ratings, with stable outlook.  The ratings were affirmed in
March 2008.


MILLICOM INT'L: Acquires Amnet Telecoms for US$510 Million
----------------------------------------------------------
Millicom International Cellular S.A. has agreed to acquire 100%
of Amnet Telecommunications Holding Limited for an enterprise
value of US$510 million.  Completion of the acquisition, which
is subject to customary approvals, is expected within three
months.

Amnet began operations in Central America in 1997 and is owned
by private investors.  It is the leading provider of broadband
and cable television services in Costa Rica, Honduras and El
Salvador, provides fixed telephony in El Salvador and Honduras,
and provides corporate data services in the above countries as
well as Guatemala and Nicaragua.  Acros its various markets and
product offerings, it has in excess of 350,000 corporate and
residential customers.  In the 12 months ended December 2007, it
reported revenue of US$143 million and EBITDA of US$56 million.

Central America is Millicom's most important region, accounting
for 43% of the group's worldwide revenue, 55% of EBITDA and 38%
of subscribers.  At Dec. 31, 2007, Millicom's business in
Central America had 8.8 million subscribers contributing
US$1.2 billion in revenue and US$608 million in EBITDA for the
year.  Millicom operates under the Tigo brand across Central
America and is the number one mobile operator in Guatemala, El
Salvador and Honduras.

"This transaction is an important step in the development of our
strategy for Central America," Marc Beuls, President and CEO of
Millicom, commented.  There is today a lack of fixed line
infrastructure to carry broadband services but customers in
these markets are increasingly demanding access to broadband
services, and in order to satisfy this demand we are launching
3G services across the region in the second half of 2008.  the
acquisition of Amnet will bring us in excess of 350,000 high
ARPU customers, and also dramatically extend our IP network,
thereby enabling us to provide enhanced broadband and cable
television in conjunction with our new 3G mobile service."

"In recent years, Amnet has established a leading franchise in
Central America due to the tremendous effort of its employees
and the support of its customers," Mike Kazma, a founder of
Amnet, who will continue to support the company as a consultant,
stated.  Millicom is ideally placed to take this company to the
next stage and to take advantage of the exciting growth
opportunities in these markets for broadband and cable TV
services."

                  About Millicom International

Headquartered in Bertrange, Luxembourg, and controlled by
Sweden's AB Kinnevik, Millicom International Cellular S.A.
-- http://www.millicom.com/-- is a global telecommunications        
investor with cellular operations in Asia, Latin America and
Africa.  It currently has cellular operations and licenses in 16
countries.  The Group's cellular operations have a combined
population under license of around 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.


                            *     *     *

Millicom International Cellular S.A. continues to carry Moody's
Investors Service's Ba2 corporate family rating.  The rating was
previously at Ba3 and was upgraded by Moody's to its current
level in November 2007.  The company also carries B1 rating on
its existing senior notes from Moody's.  Moody's said the
outlook on the ratings is stable.


MILLICOM INT'L: S&P's Outlook Unchanged on Amnet Acquisition
------------------------------------------------------------
Standard & Poor's Ratings Services said its ratings and outlook
on Millicom International Cellular S.A. (BB/Stable/--) were
unchanged following the company's agreement to acquire 100%
of Central American broadband and cable TV operator, Amnet
Telecommunications Holding Ltd. (not rated) for US$510 million.

The Amnet purchase will accelerate Millicom's strategy of
providing broadband offerings on top of its mobile telephony
services in the region.  With about US$900 million in cash at
the end of June 2008, S&P expects Millicom to maintain
sufficient cash and liquidity over the medium term, despite its
intention to repay about US$460 million of bonds in December
2008 and to fund 50% of the Amnet acquisition with cash. The
remaining 50% will be funded through debt at the operating
company level.  S&P expects the transaction to close in the next
three months.

Amnet Telecommunications Holding Ltd. is the leading provider of
broadband and cable services in Costa Rica, Honduras, and El
Salvador, and also provides fixed telephony services and
corporate data services in selected Central American countries.  


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


ICTS INTERNATIONAL Mahoney Cohen Expresses Going Concern Doubt
---------------------------------------------------------------
Mahoney Cohen & Company, CPA, P.C., raised substantial doubt
about the ability of ICTS International N.V. to continue as a
going concern after auditing the company's financial statements
for the year ended Dec. 31, 2007.  

Mahoney Cohen pointed out that the company has suffered
recurring losses from operations, net working capital and
stockholders' deficit.  The auditing firm also added that the
company's U.S. subsidiary is in default of its loan covenants
and is subject to potential contingencies.

Mahoney Cohen also stated that the company's significant
litigation relates to the Sept. 11, 2001, terrorist attacks in
the United States, and the company's insurance carriers have
canceled all its war risk policies.  In addition, the company is
involved in other potential contingencies including a dispute
between the company and the United States Transportation
Security Administration, with respect to the basis of
calculation of payments for security services rendered by the
company in 2002, in respect of which, the TSA might be claiming
refund of material amounts.

The company posted a total comprehensive loss of US$1,981,000 on
total revenues of US$64,780,000 for the year ended Dec. 31,
2007, as compared with a total comprehensive loss of
US$14,365,000 on total revenues of US$60,791,000 in the prior
year.

                 Losses of Associated Companies

The company's share in losses of associated companies during
2007 totaled US$2,500,000 compared with US$132,000 in 2006.  The
company had 50% in the partnership ICTS Netherlands Airport
Services VOF.  The partnership had one contract with Schiphol
airport in Amsterdam, which was to terminate on Feb. 1, 2008.  
The partnership is in the process of liquidation during 2008.  
During 2007, ICTS recognized losses of US$2,200,000, which
included an impairment of US$332,000, compared with profit of
US$1,300,000 in 2006.  The company recognized losses of
US$284,000 in 2007 from its investment in Inksure Technologies,
Inc., compared with the US$1,400,000 losses in 2006.

ICTS's loss from continuing operations in 2007 was US$8,000,000
compared with US$9,800,000 in 2006.  ICTS's profit from
discontinued operations in 2007 totaled US$5,400,000 compared
with a loss of US$4,200,000 in 2006.

The company had net cash used in operating activities of
US$3,600,000 and US$7,600,000 in 2007 and 2006, respectively.  
At Dec. 31, 2007, the company had negative equity and a working
capital deficit of US$11,700,000.  If the company does not
achieve new service contracts and profitability, its viability
will be in question and its share price will likely decline.

                           Balance sheet

At Dec. 31, 2007, the company's balance sheet showed
US$27,103,000 in total assets and US$47,713,000 in total
liabilities, resulting in a US$20,610,000 stockholders' deficit.  

The company's consolidated balance sheet at Dec. 31, 2007, also
showed strained liquidity with US$18,644,000 in total current
assets available to pay US$30,305,000 in total current
liabilities.

A full-text copy of the company's 2007 annual report is
available for free at http://ResearchArchives.com/t/s?2fc0/  

                 Significant Events in Operations

One major event in 2001 and early 2002 significantly changed the
company's business operations: the passage of the Aviation and
Transportation Security Act, or TSA, by the United States
Congress in response to the terrorist attacks on September 11,
2001, pursuant to which the Federal Government through the TSA
took over aviation security services in the U.S. in November
2002.  As a result of this event, the company had limited
aviation security operations in the U.S.

In February 2002, the company entered into an aviation security
services contract with the TSA to continue to provide aviation
security services in all of the company's current airport
locations until the earlier of either the completed transition
of these security services on an airport by airport basis to the
U.S. Federal Government or November 2002.

In connection with payments made by the TSA to Huntleigh USA
Corporation, a wholly owned subsidiary of the company, for
aviation security services provided in 2002, the Defense
Contract Management Agency has indicated that it believed that
Huntleigh should not have been paid on a fixed price basis as
believed by Huntleigh, but on an actual costs plus, what the TSA
would consider a reasonable profit.  On that later basis,
Huntleigh may be required to repay to the TSA the difference
between such amount and the actual amounts paid to it.  
Huntleigh, however, has various claims for additional amounts it
considers are due to it for the services provided to the TSA.

If the TSA will claim such difference from Huntleigh and will
prevail in all of its contentions, and none of Huntleigh's
claims will be recognized, then the company may suffer a loss in
an amount of about US$59,000,000.  The company is engaged in
litigation with the FAA/TSA.  The company has made no provisions
with respect to these potential claims.

Huntleigh USA's main business was providing airport security
services to airlines and airports but as a result of the
creation of the TSA and the requirement that the TSA take over
airport security, Huntleigh has lost its principal business.  
Huntleigh has sued the U.S. Government for the "Taking" of its
business and to protect its rights under the Fifth Amendment of
the U.S. Constitution.  Huntleigh sought to recover the going
concern value of the lost business.  The suit was brought in the
U.S. Court of Federal Claims.  The Court has decided against the
company.  The company appealed this decision, and the U.S. Court
of Appeals for the Federal Circuit affirmed the lower court's
ruling against the company.

                    Potential Liability Claims

As a result of the September 11 terrorist attacks, numerous
lawsuits also have been commenced against the company and the
company's U.S. subsidiary.  The cases arise out of airport
security services provided for United Flight 175 out of Logan
Airport in Boston, Mass., which crashed into the World Trade
Center.  In addition to the present claims, additional claims
may be asserted.  The outcome of these or additional cases is
uncertain.  If there is an adverse outcome with respect to any
of these claims, which is not covered by insurance, then there
may be a significant adverse impact on the company.

                         Company Strategy

The company's success will be dependent upon its ability to
change its business strategy.  As part of its new business
strategy, the company intends to develop technological solutions
and systems for the aviation security industry, develop or
acquire security activities other than aviation security, and
seek other revenue producing businesses and business
opportunities.

                     About ICTS International

Headquartered in Amstelveen, The Netherlands, ICTS International
N.V. -- http://www.icts-tech.com/-- has interests in a variety  
of businesses and ventures.  Its current principal activity
consists of providing manpower-based aviation security services
in the Netherlands and non-security related manpower-based
general aviation services in the U.S.A.  Its other activities
consist primarily of the development of integrated technological
solutions designed for enhancing processing time of passengers
at airports and other gateways and the establishment and
operation of motion-based entertainment theaters in the U.S.A.


NXP B.V.: Moody's Lowers Corporate Family Rating to B2 from B1
--------------------------------------------------------------
Moody's Investors Service downgraded NXP Semiconductors'
corporate family rating to B2 from B1, its senior secured notes
to B2 from Ba3 and senior unsecured notes to Caa1 from B3.  The
ratings have been placed on review for possible further
downgrade in which case the LGD assessments and point estimates
are also subject to change.

The rating action reflects NXP's very disappointing second
results indicating a reversal of its improving profitability
trend and increasing cash consumption against an eroding cash
position.

In its earnings release, NXP reported:

  (i) a factory load declining to 78% from 87% in the previous
      quarter;

(ii) an EBIT loss, as adjusted by the company, as the impact of
      the weakening US dollar more than offset internal cost
      saving measures; and

(iii) net cash consumption of about US$830 million for the first
      half 2008 which reduced the liquidity buffer (cash
      balances net of cash held at non-guarantors plus the
      undrawn portion of a EUR500 million credit facility) to
      about US$630 million from US$930 million at the end of
      March 2008.  

In July 2008, a special dividend of about US$120 million
received from subsidiary Silicon Manufacturing Co. Pte. Ltd.
(SSMC) added to the liquidity position.  Still, the company's
liquidity profile is increasingly reliant on the completion of
the wireless joint venture with STMicroelectronics (Baa1) and
receipt of the US$1.55 billion compensation payment and
achievement of solid free cash flows.

Moody's noted, that the downgrade of the CFR to B2 led to a two-
notch downgrade of the senior secured notes (to B2, LGD3 (46%))
due to an increasing level of accounts payable compared to June
2007 and the drawdown of the secured credit facility, which
Moody's has ranked ahead of the NXP's bond obligations.

The B2 CFR for NXP still expects:

  (i) no further decline in revenues or load factors as
      indicated by the reported book-to-bill ratio above one;

(ii) execution of measures to reduce working capital and
      substantially curb the trend of high cash consumption in
      the second half of the fiscal year; and

(iii) conclusion of the wireless joint venture with
      STMicroelectronics in third quarter 2008 with receipt of
      the full initial payment payment (US$1.55 billion).

The review of the B2 rating will focus on management's measures
to mitigate the unfavorable impact of the US$ exposure and to
reverse cash consumption as well as on the closing of the
wireless joint venture, including receipt and planned use of the
cash proceeds.  Moody's review period may by extended in this
case to include the 3rd quarter cash flow performance of NXP
into the analysis.

Downgrades:

  Issuer: NXP B.V.

    * Probability of Default Rating, Downgraded to B2 from B1

    * Corporate Family Rating, Downgraded to B2 from B1

    * Senior Secured Regular Bond/Debenture, Downgraded to B2,
      LGD3, 46% from Ba3, LGD3, 42%

    * Senior Unsecured Regular Bond/Debenture, Downgraded to
      Caa1, LGD5, 88% from B3, LGD5, 87%

Outlook Actions:

  Issuer: NXP B.V.

    * Outlook, Changed To Rating Under Review From Negative

                   About NXP Semiconductors

NXP Semiconductors, headquartered in Eindhoven, Netherlands, is
one of the largest semiconductor companies worldwide, focusing
on the designs and manufacture of application-specific
integrated circuits for the home electronics, mobile
communications, automotive and identification technology
application markets.  Revenues were EUR4.6 billion in 2007.  


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


AOEIE IRKUTSKENERGO: Unit's Restructuring Cues S&P's Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B+' long-term
corporate credit and 'ruA' Russia national scale ratings on
Russian regional power and heat utility Irkutskenergo, AO EiE on
CreditWatch with negative implications.
     
"The CreditWatch placement reflects potential weakening of the
company's credit quality after the demerger of its 100%
subsidiary, Irkutsk Electricity Grid Co., expected by year-end
2008," said S&P's credit analyst Eugene Korovin.  
Irkutskenergo's weak liquidity, which is further pressured by
potential liquidity claims triggered by Irkutsk Electricity's
unbundling is also a major factor in the CreditWatch placement."
     
In June 2008, Irkutskenergo's board approved the company's
restructuring through the spin-off of Irkutsk Electricity.  If
Irkutskenergo's shareholders vote in support of the plan on
Sept. 5, 2008, the restructuring should be complete by year-end
2008.
     
The restructuring will likely weaken Irkutskenergo's business
and financial profiles, as Irkutskenergo is spinning off the
grid operations, but retaining most of the consolidated debt,
and the regulated grid operations provide more stable cash flow
than the generation operations.  Moreover, the financial profile
could weaken even further if Irkutskenergo has to finance the
obligatory share buyback from minority shareholders who abstain
or vote against the restructuring plan.
     
Although the current ratings incorporate some weakening in the
company's credit quality, the ratings assume that Irkutskenergo
would retain adequate cash flow protection.  Depending on the
results of Irkutskenergo's plan for partial debt transfer to
Irkutsk Electricity, the amount of the buy-back claims, and the
planned refinancing of the company's short-term debt with a RUR5
billion bond issue in September 2008, the company's financial
profile may not remain adequate for the current ratings.
     
The current ratings reflect Irkutskenergo's controlling
shareholders' strong interest in access to Irkutskenergo's cheap
electricity production, the absence of efficient corporate
governance mechanisms, restructuring risk, Russia's evolving
industry regulatory regime, high customer concentration, and
weak liquidity.
     
Irkutskenergo has weak liquidity.  The company's 2008 investment
program exceeds its projected operating cash flow, and its
financing relies on new borrowing.  Irkutskenergo's terms of
access to capital markets has worsened due to general market
conditions, as well.
     
The obligatory share buyback, which must be completed within 75
days of the vote on restructuring, may put further pressure on
liquidity.  The company plans to manage its liquidity risk by
securing committed bank lines and refinancing most of its
short-term debt with long-term debt before the restructuring is
complete.
     
S&P plans to resolve the CreditWatch listing after the company's
postrestructuring debt leverage and structure have been
clarified.  The ratings could be affirmed if Irkutskenergo
manages its financial risk, with FFO to debt of more than 25%.
     
"However, if the company ends up with more aggressive cash flow
protection measures, coupled with continued weak debt structure
and liquidity, the ratings could be lowered," said Mr. Korovin.


BALTIC DAIRI: Creditors Must File Claims by August 28
-----------------------------------------------------
Creditors of CJSC Baltic Dairi Group have until Aug. 28, 2008,
to submit proofs of claim to:

         P. Tarasov
         Insolvency Manager
         Post User Box 19
         OPS-100
         170100 Tver
         Russia

The Arbitration Court of St. Petersburg and Leningrad commenced
bankruptcy proceedings against the company after finding it
insolvent.  The case is docketed under Case No. A56-53567/2005.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Baltic Dairi Group
         Trudyashikhsya Str. 27
         Kolpino
         196657 St. Petersburg
         Russia


DINAMO LLC: Creditors Must File Claims by August 21
---------------------------------------------------
Creditors of LLC Sport Club Dinamo have until Aug. 21, 2008, to
submit proofs of claim to:

         A. Savin
         Insolvency Manager
         214018 Smolensk
         Post User Box 11
         Russia

The Arbitration Court of Bryansk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A-09-6916/07-34.

The Court is located at:

         The Arbitration Court of Bryansk
         Room 602
         Trudovoy Per. 5
         Bryansk
         Russia

The Debtor can be reached at:

         LLC Sport Club Dinamo
         2nd Sovetskiy Per. 9a
         241000 Bryansk
         Russia


EAST LLC: Bashkortostan Bankruptcy Hearing Slated for October 20
----------------------------------------------------------------
The Arbitration Court of Bashkortostan will convene at
10:30 a.m. on Oct. 20, 2008, to hear the bankruptcy supervision
procedure on LLC Mine-Ore Company East (TIN 0201005577).  The
case is docketed under Case No. 07-3898/2008-G-GIA.

The Temporary Insolvency Manager is:

         E. Koptilov
         Post User Box 75
         Ufa
         450038 Bashkortostan
         Russia

The Court is located at:

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

The Debtor can be reached at:

         LLC Mine-Ore Company East
         Kommunisticheskaya Str. 8
         Askarovo
         Abzelilovskiy
         453620 Bashkortostan
         Russia


EVRAZ GROUP: In Talks to Acquire Ukraine's Donbass
--------------------------------------------------
Evraz Group S.A. is holding final talks to acquire Industrial
Union of Donbass Corporation, Bradley Cook writes Bloomberg
News, citing a sourced Kommersant report.

According to Bloomberg News, the acquisition would create a
combined company with over US$50 billion in market value, which
would be the world's fifth-biggest steelmaker.

Credit Suisse Group AG is advising the companies in the deal.

                         About Evraz

Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) --
http://www.evraz.com/-- manufactures and distributes steel and
related products.  In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in the Sverdlovsk
region and two mills in the Kemerovo region.

                         *     *     *

Evraz Group S.A. continues to carry Ba2 corporate family rating,
Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior
Notes due 2015 from Moody's Investors Service, which placed
them on review in March 2008 for possible downgrade.

The company also carries BB- long-term corporate credit and
senior unsecured debt ratings from Standard & Poor's Ratings
Services, with positive outlook.  The ratings were affirmed in
March 2008.

Evraz carries BB long-term Issuer Default and senior unsecured
ratings and B Short-term Issuer Default rating from Fitch
Ratings, with stable outlook.  The ratings were affirmed in
March 2008.


FINDER CJSC: Creditors Must File Claims by August 21
----------------------------------------------------
Creditors of CJSC Finder have until Aug. 21, 2008, to submit
proofs of claim to:

         V. Fedoseev
         Insolvency Manager
         Room 2
         Konno-Lakhtinskiy Pr. 12
         Olgino
         St. Petersburg
         Russia

The Arbitration Court of St. Petersburg and Leningrad commenced
bankruptcy proceedings against the company after finding it
insolvent.  The case is docketed under Case No. A56-33390/2006.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Finder
         Room 2
         Konno-Lakhtinskiy Pr. 12
         Olgino
         St. Petersburg
         Russia


LEADER LLC: St. Petersburg Bankruptcy Hearing Set August 25
-----------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad will
convene at 10:00 a.m. on Aug. 25, 2008, to hear the bankruptcy
supervision procedure on LLC Leader (TIN 7811316872).  The case
is docketed under Case No. A56-5652/2008.

The Temporary Insolvency Manager is:

         E. Kubakhov
         Post User Box 12
         394038 Voronezh
         Russia

The Court is located at:

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

The Debtor can be reached at:

         LLC Leader
         Letter A
         Narodnaya Str. 59, 1
         St. Petersburg
         Russia


MEGA-STROY-PROM: Creditors Must File Claims by August 21
--------------------------------------------------------
Creditors of CJSC Mega-Stroy-Prom (TIN 6319084091) have until
Aug. 21, 2008, to submit proofs of claim to:

         M. Igoshin
         Insolvency Manager
         Office 313
         Zaporozhskaya Str. 19
         443066 Samara
         Russia

The Arbitration Court of Samara commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A55-14663/2007-36.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Mega-Stroy-Prom
         Room 27
         Kirova Pr. 2A
         Samara
         Russia


METAL-SERVICE LLC: Creditors Must File Claims by August 21
----------------------------------------------------------
Creditors of LLC Metal-Service have until Aug. 21, 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. A55-2567/2008.

The Court is located at:

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

The Debtor can be reached at:

         LLC Metal-Service
         Rodiny Str. 4-2
         Tolyatti
         Samara
         Russia


MOBILE TELESYSTEMS: Faces US$50 Million Back-Tax Claim
------------------------------------------------------
Mobile TeleSystems OJSC has received a RUR1.19 billion back tax
claim from the Russian Federal Tax Service for years 2005 and
2006, RIA Novosti reports.

According to MTS, RIA Novosti relates, the tax claim includes
penalties and fines, related mostly to inter-operator  
settlements.

MTS plans to challenge the tax claim in a court of law.

                    About Mobile TeleSystems

Headquartered in Moscow, Russia, OJSC Mobile TeleSystems
(NYSE:MBT) -- http://www.mtsgsm.com/-- provides wireless
telecommunications services operator in Russia, Ukraine,
Uzbekistan, Turkmenistan, Armenia, and Belarus.

                         *      *      *

Mobile TeleSystems continues to carry a Long-term Issuer
Default rating of 'BB+', National Long-term rating of 'AA(rus)'
and Short-term IDR of B from Fitch Ratings, with stable outlook.
The ratings were assigned April 2008.

Mobile TeleSystems also carries Ba2 Corporate Family and
Probability-of-Default ratings from Moody's Investors
Service, which says the outlook is positive.


NIKOLAEVSKAYA FISHING: Creditors Must File Claims by July 28
------------------------------------------------------------
Creditors of OJSC Nikolaevskaya Fishing-Reclamation Station have
until July 28, 2008, to submit proofs of claim to:

         V. Goryachkin
         Temporary Insolvency Manager
         Post User Box 345
         115230 Moscow-230
         Russia

The Arbitration Court of Volgograd will convene at 9:30 a.m. on
Sept. 22, 2008, to hear the company's bankruptcy supervision
procedure.  The case is docketed under Case No. A12-4496/08-s58.

The Debtor can be reached at:

         OJSC Nikolaevskaya Fishing-Reclamation Station
         Leninskogo Komsomola Pr. 11-47
         Kodinsk
         Kezhemskiy
         663491 Volgograd
         Russia


NIVA CRYSTAL: Creditors Must File Claims by August 21
-----------------------------------------------------
Creditors of CJSC Niva Crystal have until Aug. 21, 2008, to
submit proofs of claim to:

         B. Borisevich
         Insolvency Manager
         Office 509
         B. Khmelnitskogo Pr. 133zh
         Belgorod
         Russia

The Arbitration Court of Belgorod commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A08-171/08-14B.

The Court is located at:

         The Arbitration Court of Belgorod
         Narodnyj Avenue 135
         308600 Belgorod
         Russia

The Debtor can be reached at:

         CJSC Niva Crystal
         Vasil Dol
         Novooskolskiy
         Belgorod
         Russia


NOVOBEZGINSKOE CJSC: Creditors Must File Claims by August 21
------------------------------------------------------------
Creditors of CJSC Novobezginskoe have until Aug. 21, 2008, to
submit proofs of claim to:

         V. Petrochenko
         Insolvency Manager
         Office 509
         B. Khmelnitskogo Pr. 133zh
         Belgorod
         Russia

The Arbitration Court of Belgorod commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A08-172/08-11-14B.

The Court is located at:

         The Arbitration Court of Belgorod
         Narodnyj Avenue 135
         308600 Belgorod
         Russia

The Debtor can be reached at:

         CJSC Novobezginskoe
         Novaya Bezginka
         Novooskolskiy
         Belgorod
         Russia


OGK-5 OAO: Inks Deal for Cycle Gas Turbine Plant Construction
-------------------------------------------------------------
A.Y. Kopsov, JSC OGK-5 Director General, Livio Vidon, Executive
Director of Enel Produzione S.p.A. and T.V. Ivanov, Vice-
President of ZAO Atomstroyexport, signed the contract for the
engineering, procurement and construction of the 410 MW CCGT
power unit on the site of the Nevinomysskaya GRES.

The new combined cycle gas turbine plant is going to be
commissioned at the end of 2010, in line with the investment
program that OGK-5 had previously announced.

This contract follows the procurement of the main equipment for
the plant, that will be supplied by OAO Power Machines by the
end of 2009, and that includes a 277.2 MW gas turbine with
Siemens 1xSGT5- PAC 4000F generator, a 134.55 MW steam turbine
with Siemens SST-900-RH generator and a CMI boiler.

The plant will employ the latest technology with an efficiency
rate of 57%.  By replacing300 MW of older, low-efficiency units,
this plant will allow a reduction in specific consumption of
natural gas, increase the installed capacity and the reliability
of the plant in one of the highest growth region in the country,
and make the plant compatible with NOREM.


                           About OGK-5

Headquartered in Ekaterinburg, Russia, OAO OGK-5 --
http://www.ogk-5.com/-- generates electricity and heat energy.
The Company owns and operates four power plants: Konakovskaya
GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and
Sredneuralskaya GRES.

                          *     *     *

OAO OGK-5 continues to carry Ba3 Corporate Family and
Probability-of-Default ratings from Moody's Investors Service.
Moody's said the Outlook is Stable


OIL-BITUMEN OJSC: Creditors Must File Claims by July 28
-------------------------------------------------------
Creditors of OJSC Oil-Bitumen (TIN 2348004784) have until
July 28, 2008, to submit proofs of claim to:

         E. Rebgun
         Temporary Insolvency Manager:
         Zvenigorodskoe Shosse 3
         123022 Moscow
         Russia

The Arbitration Court of Krasnodar will convene at 11:00 a.m. on
Dec. 8, 2008, to hear the company's bankruptcy supervision
procedure.  The case is docketed under Case No. A32-8099/
2008-38/237B.

The Court is located at:

         The Arbitration Court of Krasnodar
         Krasnaya Str. 6
         Krasnodar
         Russia

The Debtor can be reached at:

         OJSC Oil-Bitumen
         50 Let Oktyabray Str. 125
         Ilskiy
         Severskiy
         353242 Krasnodar
         Russia


OPIN JSC: Fitch Assigns 'B' Long-Term and Short-Term ID Ratings
---------------------------------------------------------------
Fitch Ratings has assigned Russian property developer JSC OPIN
ratings of Long-term Issuer Default, Short-term IDR and senior
unsecured 'B'.  A National Long-term rating of 'BBB+(rus)' is
assigned.  Both the Long-term IDR and National Long-term rating
are on Positive Outlook.  OPIN is a Moscow-based property
developer focusing on suburban housing and Class A offices with
assets of US$3.5 billion as of FYE07.

The Positive Outlook reflects Fitch's expectation that OPIN's
credit profile will improve if the company successfully executes
its planned expansion strategy.  A one-notch upgrade would
likely occur within the next 12-18 months should OPIN
demonstrate an ability to successfully achieve its expected
step-up in volumes, including a re-zoning of land and achieving
its financial forecasts.

OPIN's ratings are supported by its good position in a currently
buoyant Moscow real estate market.  In Fitch's opinion, strong
underlying fundamentals, such as rising income levels,
suburbanization and corporate growth will support OPIN's
suburban housing and Class A office developments.

OPIN's ratings are also supported by the company's large free-
hold land bank, totaling 121 million sq m as of July 2008; by
comparison, OPIN consumed only 1 million sq m of land in 2007.
Much of the land has been acquired at low cost, funded by equity
rather than debt, and is well-located, often adjacent to key
transport routes into Moscow.  This, along with OPIN's proven
expertise in navigating through a complex planning & approvals
process, should support the company's plans to significantly
grow volumes.  Other positive rating factors include a strong
equity base (boosted by a US$491 million rights issue in June
2008), an experienced management team, cost savings through new
pre-fabricated production, and moderate forecast leverage (below
2.5x) during 2009-2011 (despite a temporary peak in 2008).

In addition, OPIN currently has moderate liquidity given, as of
Fiscal Year Ended 07, its access to cash of USD427 million
(further boosted in H108 by US$491 million of equity proceeds)
and long-term undrawn credit lines of US92 million (which were
further increased during first half 2008), sufficiently covering
short-term debt of US$104 million and an expected negative FCF
in FY08.

The ratings are restricted by inherent risks in the Russian real
estate market, notably an evolving legal regime, a bureaucratic
planning & approvals system, potentially volatile demand, the
risk of project delays and cost overruns, and shortages in
skilled labor and building materials.  Rising inflation in
Russia is also a risk, as this could dampen demand for OPIN's
developments and increase input costs, although Fitch expects
the company would be able to pass on a large portion of any cost
increases to its customers.  The ratings are also limited by the
geographic concentration of the land bank, situated largely in
regions north and west of Moscow.  Negative socio-economic
developments in these regions, such as delays in rolling out
planned infrastructure, could harm demand, although this is
partially mitigated by OPIN's phasing of larger projects.  Fitch
also takes comfort from the considerable political momentum
behind key infrastructure projects in the Moscow regions, such
as the new Moscow-St Petersburg highway.

OPIN also faces significant execution risks, especially given
its lack of track-record in delivering volumes on the scale
forecasted.  This risk is amplified by the fact that about 83%
of OPIN's land bank is currently zoned as agricultural land and
must go through a costly and time-consuming re-zoning process.  
However, OPIN has a good track record of re-zoning, which has
provided enough zoned land (21 million sq m) to support near
term operations.  Fitch also has concerns about the ongoing
split of joint assets owned by Vladimir Potanin and Mikhail
Prokhorov, the majority shareholders of OPIN (with 35% and 25%
ownership respectively), which could lead to corporate
governance changes or protracted legal challenges.  Other
factors limiting the ratings include a lack of stabilizing
rental income until at least 2010, a shift in strategy away from
lower-risk pre-sales towards speculative development, forecast
negative free cash flow in 2008/2009, and thin forecast interest
coverage of 2.5x-2.7x during 2008-2010.


STILE LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------
The Arbitration Court of Tambov has commenced bankruptcy
supervision procedure on LLC Stile (6827009473).  The case is
docketed under Case No. A64-2089/08-25.

The Temporary Insolvency Manager is:

         V. Sutormin
         Sovetskaya Str. 71
         Krasivoe
         Michurinskiy
         393760 Tambov
         Russia

The Court is located at:

         The Arbitration Court of Tambov
         Penzenskaya Str. 67/12
         392020 Tambov
         Russia

The Debtor can be reached at:

         LLC Stile
         Room 2
         Internatsionalnaya Str. 134a
         Michurinsk
         Tambov
         Russia


VIMPEL-COMMUNICATIONS: OJSC Faces US$54 Million Back Tax Claim
--------------------------------------------------------------
OJSC Vimpel-Communications has received a US$54 million back tax
claim from the Russian Federal Tax Service for years 2005 and
2006, RIA Novosti reports.

According to RIA Novosti, the tax claim excludes penalties and
fines.

Vimpelcom plans to challenge the tax claim in a court of law.

                         About VimpelCom

Headquartered in Moscow, Russia, OJSC Vimpel-Communications
(NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile
telecommunications services in Russia and Kazakhstan with newly
acquired operations in Ukraine, Tajikistan and Uzbekistan.  The
Company operates under the 'Beeline' brand in Russia and
Kazakhstan.  In addition, VimpelCom is continuing to use 'K-
mobile' and 'EXCESS' brands in Kazakhstan.  The group wholly
owns Mobitel in Georgia.

                          *     *     *

OJSC Vimpel-Communications continues to carry Ba2 Corporate
Family, Probability-of-Default and Senior Unsecured Debt Ratings
with stable outlook from Moody's Investors Service.  The agency
affirmed the ratings in April 2008.

The company also continues to carry BB+ long-term corporate
credit and unsecured senior debt ratings with stable outlook
from Standard & Poor's Ratings Services.


VOLGA-SPIRIT LLC: Creditors Must File Claims by August 21
---------------------------------------------------------
Creditors of LLC Volga-Spirit (TIN 7709568406) have until
Aug. 21, 2008, to submit proofs of claim to:

         I. Kostina
         Insolvency Manager
         Apt. 52
         Zhukova Str. 20
         394077 Voronezh
         Russia

The Arbitration Court of Tula commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A68-9636/07-383/B.

The Court is located at:

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

The Debtor can be reached at:

         LLC Volga-Spirit
         Stroiteley Str. 2
         Efremov
         301840 Tula
         Russia


WEST LLC: Creditors Must File Claims by August 21
-------------------------------------------------
Creditors of LLC Transport Company West have until
Aug. 21, 2008, to submit proofs of claim to:

         M. Starkov
         Insolvency Manager
         Borovaya 11
         Ulan-Ude
         670045 Buryatiya
         Russia

The Arbitration Court of Buryatiya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A10-778/08.

The Debtor can be reached at:

         LLC Transport Company West
         Magistralnaya Str. 4a
         Taksimo
         Muyskiy
         671561 Buryatiya
         Russia


YARSKOE CJSC: Creditors Must File Claims by August 21
-----------------------------------------------------
Creditors of CJSC Yarskoe have until Aug. 21, 2008, to submit
proofs of claim to:

         B. Borisevich
         Insolvency Manager
         Office 509
         B. Khmelnitskogo Pr. 133zh
         Belgorod
         Russia

The Arbitration Court of Belgorod commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A08-174/08-14B.

The Court is located at:

         The Arbitration Court of Belgorod
         Narodnyj Avenue 135
         308600 Belgorod
         Russia

The Debtor can be reached at:

         CJSC Yarskoe
         Yarskoe
         Novooskolskiy
         Belgorod
         Russia


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


AYT COLATERALES: Fitch Assign BB- Rating on EUR6MM Class D Notes
----------------------------------------------------------------
Fitch Ratings has assigned AyT Colaterales Global Hipotecario,
FTA Serie AyT Colaterales Global Hipotecario Caixa Laietana I's  
EUR170 million mortgage-backed floating-rate notes due in March
2048 final ratings, as:

  -- EUR145.4 million Class A: 'AAA'; Outlook Stable
  -- EUR13.5 million Class B: 'A'; Outlook Stable
  -- EUR5.1 million Class C: 'BBB-'; Outlook Stable
  -- EUR6 million Class D: 'BB-'; Outlook Stable

This transaction is a cash flow securitization of a EUR170
million static pool of first-ranking Spanish mortgage loans
originated and serviced by Caixa d'Estalvis Laietana (Caixa
Laietana, rated 'BBB+'/'F2'/Outlook Stable).

The final ratings are based on the quality of the collateral,
the underwriting and servicing of the mortgage loans, available
credit enhancement, the integrity of the transaction's legal and
financial structure and Ahorro y Titulizacion S.A., S.G.F.T.'s
administrative capabilities.

Initial CE for the Class A to D notes is provided by
subordination and a reserve fund, which has been fully funded at
closing using a subordinated loan.

The final ratings address the payment of interest on the notes
according to the terms and conditions of the documentation,
subject to a deferral trigger on the Class B, C and D notes, as
well as the repayment of principal by legal final maturity.  
Should the deferral trigger on the Class B, C and D notes be
hit, interest on these notes will be deferred in the priority of
payments.  In this instance, interest payments might not be
received for a period of time, but will be received by legal
final maturity.

The fund is regulated by Spanish Securitization Law 19/1992 and
Royal Decree 926/1998.  Its sole purpose is to transform into
fixed-income securities a portfolio of mortgages certificates
acquired from Caixa Laietana.  The CTHs are subscribed by Ahorro
y Titulizacion S.A., S.G.F.T., whose sole function is to manage
asset-backed notes on behalf of the fund.


AYT GOYA: Fitch Rates EUR3.25 Million Class D Notes at BB
---------------------------------------------------------
Fitch Ratings has assigned expected ratings to AyT Goya
Hipotecario II, Fondo de Titulizacion de Activos' notes,
totalling EUR1300 million, due in Feb. 2051, as:

  -- EUR1238.25 million Class A: 'AAA'; Outlook Stable
  -- EUR39 million Class B: 'A'; Outlook Stable
  -- EUR19.5 million Class C: 'BBB'; Outlook Stable
  -- EUR3.25 million Class D: 'BB'; Outlook Stable

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

This transaction is a cash-flow securitization of a EUR1300
million static pool of residential mortgage loans granted by
Barclays Bank, S.A. (BBSA), an entity 99.7%-owned by Barclays
Bank PLC (rated 'AA'/'F1+'/Outlook Stable).

The expected ratings are based on the quality of the collateral,
the underwriting and servicing of the mortgage loans, available
credit enhancement, the integrity of the transaction's legal and
financial structures and Ahorro y Titulizacion S.G.F.T, S.A's
administrative capabilities

Initial CE for the Class A to D notes is provided by
subordination and a reserve fund, which has been fully funded at
closing using a subordinated loan.

The expected ratings address the payment of interest on the
notes according to the terms and conditions of the
documentation, subject to a deferral trigger on the Class B, C
and D notes, as well as the repayment of principal at legal
final maturity.  Should the deferral trigger on the Class B, C
and D notes be hit, interest on these notes will be deferred in
the priority of payments.  In this instance, interest payments
might not be received for a period of time, but will be received
by legal final maturity.

The fund will be regulated by Spanish Securitization Law 19/1992
and Royal Decree 926/1998.  Its sole purpose will be to convert
mortgage transmission certificates from the seller into fixed-
income securities.  The fund will be legally represented and
managed by Ahorro y Titulizacion S.G.F.T, S.A, a limited
liability company incorporated under Spanish law, whose
activities are limited to the management of securitization
funds.


SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses
------------------------------------------------------------
Spanair S.A. has disclosed a Feasibility Plan to face the
current crisis that the airline industry is going through as a
consequence of the high fuel prices and the decrease of demand.
In order to ensure the future profitability of the Company, the
plan implies reduction of capacity and staff.

The Feasibility Plan is based on four strategic pillars:

    * re-dimensioning of the aircraft capacity;
    * cost reductions,
    * improvement of efficiency; and
    * revenue improvement measures.

As a necessary measure to stop the company losses, worsened by
the record high fuel prices, Spanair will ground an estimated
number of 15 aircraft during September and October.  The total
earnings effect in 2009 from all the measures is estimated to
EUR90 million.

Spanair will cancel nine unprofitable routes:

    * Madrid-Viena,
    * Madrid-Munich,
    * Madrid-Girona,
    * Madrid-San Sebastian,
    * Madrid-Granada,
    * Madrid-Oviedo,
    * Barcelona-Zurich,
    * Bilbao-Malaga, and
    * Bilbao-Jerez

as the present and future demand does not justify their
continuity.

Following the capacity reduction, Spanair will operate over 80%
of its network and will continue as the second largest operator
in the market with 260 daily flights to 48 destinations.

"I am proud to see that in this challenging environment Spanair
can lead the process to normalize capacity in the Spanish market
and still maintain its position as the number one full service
airline out of Barcelona, and as the second largest airline out
of Madrid." said Marcus Hedblom, Spanair CEO.

The implementation of the Feasibility Plan, whose main
guidelines have been presented today to all personnel and the
Union representatives, will also imply the reduction of
approximately 900 full-time positions.

The Company will continue working on the definition of concrete
measures included in this Feasibility Plan to start negotiating
with the Union representatives in order to place it in force
during the month of September.

                          About Spanair

Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an
airline subsidiary of SAS AB.  It provides a scheduled passenger
network within Spain and Europe, with an extension to West
Africa.

                            About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- owns SAS Group, which engages in the
provision of air transport and related services.  The
governments of Sweden, Denmark and Norway own 50% of the
company.

                            *    *    *

SAS AB currently carries Moody's Investors Service's B1
Corporate Family and Senior Secured Debt Rating.


SAS AB: Spanair Sells Club Vacaciones Tour Unit
-----------------------------------------------
Spanair S.A. has made the decision to sell Club Vacaciones TTOO
linked to the airline company for more than 20 years.

This sale is part of the business strategy implemented by
Spanair and SAS Group, to focus on the airline industry.
Spanair owns at present 100% Club Vacaciones share capital.

After 45 years Club Vacaciones is one of the most dynamic and
powerful Spanish Tour Operators.  This company is focused on
charter and scheduled flights, mainly operated by Spanair, and
the launch of new touristic destinations.  

This TTOO has eight branch companies and 104 employees.

                          About Spanair

Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an
airline subsidiary of SAS AB.  It provides a scheduled passenger
network within Spain and Europe, with an extension to West
Africa.

                            About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- owns SAS Group, which engages in the
provision of air transport and related services.  The
governments of Sweden, Denmark and Norway own 50% of the
company.

                            *    *    *

SAS AB currently carries Moody's Investors Service's B1
Corporate Family and Senior Secured Debt Rating.


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


SAS AB: Spanair Unit Unveils Feasibility Plan to Halt Losses
------------------------------------------------------------
Spanair S.A. has disclosed a Feasibility Plan to face the
current crisis that the airline industry is going through as a
consequence of the high fuel prices and the decrease of demand.
In order to ensure the future profitability of the Company, the
plan implies reduction of capacity and staff.

The Feasibility Plan is based on four strategic pillars:

    * re-dimensioning of the aircraft capacity;
    * cost reductions,
    * improvement of efficiency; and
    * revenue improvement measures.

As a necessary measure to stop the company losses, worsened by
the record high fuel prices, Spanair will ground an estimated
number of 15 aircraft during September and October.  The total
earnings effect in 2009 from all the measures is estimated to
EUR90 million.

Spanair will cancel nine unprofitable routes:

    * Madrid-Viena,
    * Madrid-Munich,
    * Madrid-Girona,
    * Madrid-San Sebastian,
    * Madrid-Granada,
    * Madrid-Oviedo,
    * Barcelona-Zurich,
    * Bilbao-Malaga, and
    * Bilbao-Jerez

as the present and future demand does not justify their
continuity.

Following the capacity reduction, Spanair will operate over 80%
of its network and will continue as the second largest operator
in the market with 260 daily flights to 48 destinations.

"I am proud to see that in this challenging environment Spanair
can lead the process to normalize capacity in the Spanish market
and still maintain its position as the number one full service
airline out of Barcelona, and as the second largest airline out
of Madrid." said Marcus Hedblom, Spanair CEO.

The implementation of the Feasibility Plan, whose main
guidelines have been presented today to all personnel and the
Union representatives, will also imply the reduction of
approximately 900 full-time positions.

The Company will continue working on the definition of concrete
measures included in this Feasibility Plan to start negotiating
with the Union representatives in order to place it in force
during the month of September.

                          About Spanair

Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an
airline subsidiary of SAS AB.  It provides a scheduled passenger
network within Spain and Europe, with an extension to West
Africa.

                            About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- owns SAS Group, which engages in the
provision of air transport and related services.  The
governments of Sweden, Denmark and Norway own 50% of the
company.

                            *    *    *

SAS AB currently carries Moody's Investors Service's B1
Corporate Family and Senior Secured Debt Rating.


SAS AB: Spanair Sells Club Vacaciones Tour Unit
-----------------------------------------------
Spanair S.A. has made the decision to sell Club Vacaciones TTOO
linked to the airline company for more than 20 years.

This sale is part of the business strategy implemented by
Spanair and SAS Group, to focus on the airline industry.
Spanair owns at present 100% Club Vacaciones share capital.

After 45 years Club Vacaciones is one of the most dynamic and
powerful Spanish Tour Operators.  This company is focused on
charter and scheduled flights, mainly operated by Spanair, and
the launch of new touristic destinations.  

This TTOO has eight branch companies and 104 employees.

                          About Spanair

Headquartered in Palma de Mallorca, Spain, Spanair S.A. is an
airline subsidiary of SAS AB.  It provides a scheduled passenger
network within Spain and Europe, with an extension to West
Africa.

                            About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- owns SAS Group, which engages in the
provision of air transport and related services.  The
governments of Sweden, Denmark and Norway own 50% of the
company.

                            *    *    *

SAS AB currently carries Moody's Investors Service's B1
Corporate Family and Senior Secured Debt Rating.


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


DIVE ADVENTURE: Creditors Must File Proofs of Claim by Sept. 13
---------------------------------------------------------------
Creditors owed money by LLC Dive Adventure are requested to file
their proofs of claim by Sept. 13, 2008, to:

         Carmen Meyer
         Tosstalstrasse 361a
         8482 Sennhof
         Switzerland

The company is currently undergoing liquidation in Winterthur.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 21, 2007.


DUFT KLINIK: Creditors Have Until August 14 to File Claims
----------------------------------------------------------
Creditors owed money by LLC Duft Klinik are requested to file
their proofs of claim by Aug. 14, 2008, to:

         Baarerstrasse 53
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 14, 2008.


FASSAG JSC: Court Commences Bankruptcy Proceedings
--------------------------------------------------
The Bankruptcy Service of Altstetten-Zurich commenced bankruptcy
proceedings against JSC Fassag on April 23, 2008.

Deadline for the submission of proofs of claim is on Aug. 4,
2008.

The Bankruptcy Service of Altstetten-Zurich can be reached at:

         Bankruptcy Service of Altstetten-Zurich
         8048 Zurich
         Switzerland

The company can be reached at:

         JSC Fassag
         Bielweg 4
         5107 Schinznach
         Switzerland


FITMACHER LLC: Sets Aug. 15 Deadline for Filing Proofs of Claim
---------------------------------------------------------------
Creditors owed money by LLC Fitmacher are requested to file
their proofs of claim by Aug. 15, 2008, to:

         Tobias Koster
         Pilatusstrasse 11
         4663 Aarburg
         Switzerland

The company is currently undergoing liquidation in Aarburg.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 15, 2008.


GENERAL MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy
----------------------------------------------------------------
Edward Altman, a finance professor at New York University's
Stern School of Business, sees a 46% chance that General Motors
Corp. and Ford Motor Co. will default within five years,
Bloomberg News' Greg Miles and Caroline Salas report.  
Mr. Altman, in 2005, had said GM had a 47 percent chance of
default within five years.

Mr. Altman, who created the Z-score mathematical formula that
measures bankruptcy risk, said in an interview with Bloomberg
Television that his model shows that these companies are "on the
verge of bankruptcy."  Basing on the companies' finances at the
end of the first quarter, the Z-scores for GM and Ford give both
a bond rating equivalent to a CCC ranking, he said, according to
the report.  

"Both are in very serious shape and the markets reflect that,"
Mr. Altman said.  GM, though, is in slightly worse condition
than Ford, according to him.  Ford has said it had access to
US$40.6 billion in funds as of March 31, including credit lines,
the report noted.

But still, according to Mr. Altman, he "would not put money with
GM right now because the downside is so great relative to the
upside, relative to the yield," according to the report.

"Your downside is probably 60 percent on the debt.  The risk
reward ratio is pretty poor," Mr. Altman said referring to GM.  
The report noted that GM posted a US$38.7 billion loss in 2007,
the biggest in its 100-year history, and hasn't posted a profit
since 2004.  

GM is fending off rumors that it could file for bankruptcy.  GM
Chief Executive Officer Rick Wagoner has assured that the
company has the ability to raise cash.

                      About Ford Motor Co.

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

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin-American regions, including Argentina and Brazil.

                    About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in
Miramar, Florida.


At March 31, 2008, GM's balance sheet showed total assets of
US$145,741,000,000 and total debts of US$186,784,000,000,
resulting in a stockholders' deficit of US$41,043,000,000.
Deficit, at Dec. 31, 2007, and March 31, 2007, was
US$37,094,000,000 and US$4,558,000,000, respectively.

                          *     *     *

As reported in the Troubled Company Reporter on June 27, 2008,
Fitch has downgraded the Issuer Default Rating of General Motors
Corporation to 'B-' from 'B', and assigned a Rating Outlook
Negative.

TCR also reported on June 24, 2008, that DBRS has placed the
ratings of General Motors and General Motors of Canada Limited
Under Review with Negative Implications.

At the same time, Standard & Poor's Ratings Services has placed
its corporate credit ratings on the three U.S. automakers,
General Motors Corp., Ford Motor Co., and Chrysler LLC, on
CreditWatch with negative implications.   GM and its senior
unsecured notes continues to carry S&P's B corporate credit
ratings.


HARE LLC: Deadline to File Proofs of Claim Set August 7
-------------------------------------------------------
Creditors owed money by LLC Hare are requested to file their
proofs of claim by Aug. 7, 2008, to:

         Leimackerstrasse 6
         8355 Aadorf
         Switzerland

The company is currently undergoing liquidation in Aadorf.  The
decision about liquidation was accepted at an extraordinary
shareholder's meeting held on June 18, 2008.


HB-TECH FUR PROJEKTIERUNG: Creditors' Claim Due by August 7
-----------------------------------------------------------
Creditors owed money by LLC HB-Tech für Projektierung are
requested to file their proofs of claim by Aug. 7, 2008, to:

         Andre Hirsch
         Birchweg 51
         8200 Schaffhausen
         Switzerland

The company is currently undergoing liquidation in Neuhausen am
Rheinfall.  The decision about liquidation was accepted at an
extraordinary shareholders' meeting held on June 23, 2008.


INSPIRING SYSTEM: Creditors Have Until Sept. 20 to File Claims
--------------------------------------------------------------  
Creditors owed money by LLC inspiring system integration are
requested to file their proofs of claim by Sept. 20, 2008, to:

         LLC Eureva Treuhand
         Liquidator
         Achslenstrasse 4
         9000 St. Gallen
         Switzerland

The company is currently undergoing liquidation in Buchs SG.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 18, 2007.


IMMOPACK LLC: Deadline to File Proofs of Claim Set August 21
------------------------------------------------------------
Creditors owed money by LLC immopack are requested to file their
proofs of claim by Aug. 21, 2008, to:

         Ulrich Pack
         Liquidator
         Via Val Serris 1
         7019 Fidaz
         Switzerland

The company is currently undergoing liquidation in Flims.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 16, 2008.


MARKUS WILLI: Creditors Must File Proofs of Claim by Aug. 29
------------------------------------------------------------
Creditors owed money by LC Markus Willi are requested to file
their proofs of claim by Aug. 29, 2008, to:

         Hauptstrasse 43
         9552 Bronchhofen
         Switzerland

The company is currently undergoing liquidation in Bronschhofen.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 5, 2008.


MIV-IMMOBILIEN LLC: Claims Filing Deadline Set August 7
-------------------------------------------------------
Creditors owed money by LLC MIV-Immobilien are requested to file
their proofs of claim by Aug. 7, 2008, to:

         JSC Treuhand - Fassler & Partner Appenzell
         Weissbadstrasse 14
         9050 Appenzell
         Switzerland

The company is currently undergoing liquidation in Schwende AI.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 23, 2008.


RH HUMANITAS: Sept. 30 Set as Deadline to File Proofs of Claim
---------------------------------------------------------------
Creditors owed money by LLC RH Humanitas are requested to file
their proofs of claim by Sept. 30, 2008, to:

         Burhan Suna
         Liquidator
         Flurweg 9
         5034 Suhr
         Switzerland

The company is currently undergoing liquidation in Appenzell.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 7, 2007.


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


CENTER MEGANOM: Creditors Must File Claims by August 8
------------------------------------------------------
Creditors of LLC Science-Production Center Meganom (code EDRPOU
24089832) have until Aug. 8, 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 May 19, 2008.
The case is docketed as 15/99-b.

The Debtor can be reached at:

         LLC Science-Production Center Meganom
         Novokonstantinovskaya Str. 18
         04080 Kiev
         Ukraine


ETALON-LIS: Proofs of Claim Filing Deadline Set August 9
--------------------------------------------------------
Creditors of LLC Etalon-LIS (code EDRPOU 31512062) have until
Aug. 9, 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 March 26, 2008.  The case is
docketed as 28/118-b.

The Debtor can be reached at:

         LLC Etalon-LIS
         Proreznaya Str. 4
         01034 Kiev
         Ukraine


EXPERIMENTAL WINERY: Proofs of Claim Filing Deadline Set Aug. 9
---------------------------------------------------------------
Creditors of State Enterprise Dniepropetrovsk Experimental
Winery Plant (code EDRPOU 00412174) have until Aug. 9, 2008, to
submit proofs of claim to:

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

The Economic Court of Dnipropetrovsk has commenced bankruptcy
supervision procedure on the company.  The case is docketed as
B 26/125-08.

The Debtor can be reached at:

         State Enterprise Dniepropetrovsk
         Experimental Winery Plant
         Kisnev Str. 47
         49074 Dnipropetrovsk
         Ukraine


EXPRESSBUILDING BF: Creditors Must File Claims by August 8
----------------------------------------------------------
Creditors of LLC Expressbuilding BF (code EDRPOU 34929584) have
until Aug. 8, 2008, to submit proofs of claim to:

         The Economic Court of Odessa
         Shevchenko Avenue 4
         65032 Odessa
         Ukraine

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent on June 17, 2008.
The case is docketed as 2/110-08-2344.

The Debtor can be reached at:

         LLC Expressbuilding BF
         Zooparkovaya Str. 25
         65009 Odessa
         Ukraine


INDUSTRIAL ASSEMBLY: Proofs of Claim Filing Deadline Set Aug. 9
---------------------------------------------------------------
Creditors of LLC Industrial Assembly (code EDRPOU 31339997) have
until Aug. 9, 2008, to submit proofs of claim to:

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

The Economic Court of Kharkov commenced bankruptcy supervision
procedure on the company on April 14, 2008.  The case is
docketed as B-50/53-08.

The Debtor can be reached at:

         LLC Industrial Assembly
         Vorobyov Str. 4a
         61057 Kharkov
         Ukraine


MILKA LLC: Proofs of Claim Filing Deadline Set August 9
-------------------------------------------------------
Creditors of LLC Milka (code EDRPOU 38264819) have until
Aug. 9, 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
supervision procedure on the company.  The case is docketed as B
24/179-08.

The Debtor can be reached at:

         LLC Milka
         Kirilenko Str. 8
         Krivoy Rog
         Dnipropetrovsk
         Ukraine


MINE BUILDING: Creditors Must File Claims by August 9
-----------------------------------------------------
Creditors of LLC Mine Building Assembly (code EDRPOU 24166969)
have until Aug. 9, 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 17, 2008.
The case is docketed as 27/23-b.

The Debtor can be reached at:

         LLC Mine Building Assembly
         Kalinin Str. 51
         83087 Donetsk
         Ukraine


PAVLOGRAD MILK: Creditors Must File Claims by August 8
------------------------------------------------------
Creditors of OJSC Pavlograd Milk Complex (code EDRPOU 0044499)
have until Aug. 8, 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 insolven on
June 20, 2008.  The case is docketed as B 26/128-08.

The Debtor can be reached at:

         OJSC Pavlograd Milk Complex
         Kharkov Str. 1-v
         Pavlograd
         51400 Dnipropetrovsk
         Ukraine



TISA-95 LLC: Creditors Must File Claims by August 8
---------------------------------------------------
Creditors of LLC Tisa-95 (code EDRPOU 19358738) have until
Aug. 8, 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 10, 2008.
The case is docketed as 15/787-b.

The Debtor can be reached at:

         LLC Tisa-95
         Lomonosov Str. 71-a
         03022 Kiev
         Ukraine


UKRAINIAN MTN: Fitch Rates US$2BB LPN Program for Notes 'BB-'
-------------------------------------------------------------
Fitch Ratings has assigned Ukrainian MTN Finance Plc's US$2
billion LPN program a final Long-term 'BB-' rating for notes
with maturities in excess of one year and a final Short-term 'B'
rating for notes with maturities of less than one year.  

The notes are to be used solely for financing loans to Ukraine's
Joint-Stock Commercial Innovation Bank UkrSibbank (UkrSib, Long-
term foreign currency Issuer Default 'BB-' with Stable Outlook,
Short-term IDR 'B', Long-term local currency IDR 'BB' with
Stable Outlook, Individual 'D', Support '3' and National Long-
term 'AAA(ukr)' with Stable Outlook).  Ukrainian MTN Finance Plc
will only pay noteholders principal and interest received from
UkrSib.

At the same time, Fitch has assigned the program's US$250
million 9.25% Series 1 issue with final maturity in August 2011
a final 'BB-' rating.

UkrSib was the third-largest bank in Ukraine by assets at end-
first quarter 2008.  UkrSib is a universal bank, focusing on
corporate, retail and investment banking. The bank operates the
fourth-largest nationwide branch network, consisting of over
1,000 banking units and outlets.  A controlling 51% stake is
held by France-based BNP Paribas (Long-term IDR 'AA' with Stable
Outlook, Short-term IDR 'F1+', Individual 'A/B', Support '1' and
Support Rating Floor 'A-'), with the remaining 49% controlled by
two Ukrainian shareholders, Oleksandr Yaroslavskyy and Ernest
Galiyev, who also own several large industrial enterprises in
the country.


VSEUKRAINSKY AKTSIONERNY: Fitch Holds 'B-' Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Ukraine-based Vseukrainsky
Aktsionerny Bank's ratings at Long-term Issuer Default 'B-',
Short-term IDR 'B', Support '5', Individual 'D/E' and National
Long-term 'BBB-(ukr)'.  The Outlooks for the Long-term IDR and
National Long-term rating are Stable.

At the same time, Fitch has affirmed the ratings of Credit
Suisse International's US$125 million 10.125% issue of limited
recourse loan participation notes due 2010 at Recovery 'RR4' and
Long-term 'B-'.  The notes were issued solely to finance a loan
to VAB.

VAB's ratings reflect its small size by international standards,
the risks associated with its rapid loan book growth, its still
high, albeit declining, business concentrations, significant
liquidity risk exposure and weak performance.  The ratings also
acknowledge the bank's currently reasonable asset quality.

VAB's bottom-line performance was negative in 2007, reflecting
high operating costs due to the ongoing dynamic retail franchise
growth and branch network expansion.  The H108 results for local
accounts suggest improvement in operating performance, mainly as
a result of increased interest rates on new lending, reflecting
the general market trends.

The loan book has been growing rapidly yoy, reflecting the
general sector trend.  In H108, the pace of growth slowed down,
given recent funding restrictions in the capital and local money
markets.  Since 2006, VAB's focus has been on expanding its
retail lending operations and by end-H108, retail lending
comprised about 30% of the loan book.  Also, reflecting the
bank's aggressive retail deposit collection in the last years,
the retail funding share outstripped the share of corporate
funding for the first time in 2007.

VAB's capitalization has been supported by timely equity
injections.  At end-H108, the Tier 1 ratio recovered to 14%,
mainly reflecting a US$40 million equity injection.  Overall,
Fitch views VAB's capitalization as only adequate, given its
weak internal revenue-generating ability, loan concentrations
and potential risks arising from rapid asset growth.

VAB ranked 23rd by assets in Ukraine at end-March 2008.  The
main shareholders are TBIF, a Dutch-based investment company
with operations in eastern Europe (48.82%), and a local
entrepreneur, Sergei Maximov, and his family (48.65%).


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


C REALISATIONS: Calls In Liquidators from PricewaterhouseCoopers
----------------------------------------------------------------
Ian Christopher Oakley Smith and Michael John Andrew Jervis of
PricewaterhouseCoopers LLP were appointed joint liquidators of
C Realisations Ltd. (formerly Chesterton Ltd.) on July 8, 2008,
for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         PricewaterhouseCoopers LLP
         Hill House
         Richmond Hill
         Bournemouth
         BH2 6HR
         England


DALECLASS LTD:  Bank of Scotland Taps Receivers from Kroll
----------------------------------------------------------
Bank of Scotland Plc appointed Fraser J. Gray and Elizabeth G.
Mackay  of Kroll Ltd. joint administrative receivers of
Daleclass Ltd. (Company Number 03107063) on July 14, 2008.

Kroll Limited -- http://www.krollworldwide.com/-- offers risk-
consulting services worldwide.  The firm is an operating unit of
Marsh & McLennan Companies, Inc., the global professional
services firm.  Kroll's services include corporate advisory and
restructuring, financial accounting, valuation and litigation,
electronic evidence and data recovery, business intelligence and
investigations, background screening, and security services.


FORD MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy
-------------------------------------------------------------
Edward Altman, a finance professor at New York University's
Stern School of Business, sees a 46% chance that General Motors
Corp. and Ford Motor Co. will default within five years,
Bloomberg News' Greg Miles and Caroline Salas report.  
Mr. Altman, in 2005, had said GM had a 47 percent chance of
default within five years.

Mr. Altman, who created the Z-score mathematical formula that
measures bankruptcy risk, said in an interview with Bloomberg
Television that his model shows that these companies are "on the
verge of bankruptcy."  Basing on the companies' finances at the
end of the first quarter, the Z-scores for GM and Ford give both
a bond rating equivalent to a CCC ranking, he said, according to
the report.  

"Both are in very serious shape and the markets reflect that,"
Mr. Altman said.  GM, though, is in slightly worse condition
than Ford, according to him.  Ford has said it had access to
US$40.6 billion in funds as of March 31, including credit lines,
the report noted.

But still, according to Mr. Altman, he "would not put money with
GM right now because the downside is so great relative to the
upside, relative to the yield," according to the report.

"Your downside is probably 60 percent on the debt.  The risk
reward ratio is pretty poor," Mr. Altman said referring to GM.  
The report noted that GM posted a US$38.7 billion loss in 2007,
the biggest in its 100-year history, and hasn't posted a profit
since 2004.  

GM is fending off rumors that it could file for bankruptcy.  GM
Chief Executive Officer Rick Wagoner has assured that the
company has the ability to raise cash.  

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs       
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                      About Ford Motor Co.

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

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin-American regions, including Argentina and Brazil.

                         *     *     *

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

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

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


HORNERS MOTOR: Bank of Scotland Taps Receivers from BDO Stoy
------------------------------------------------------------
Bank of Scotland, on July 11, 2008, appointed Dermot Justin
Power and Matthew Dunham of BDO Stoy Hayward LLP joint
administrative receivers of:

   -- Horners Motor Group Ltd. (Company Number 03693955);
   -- Horners Manchester Ltd. (Company Number 00636398); and
   -- HMG Commercial Ltd. (Company Number 02373171).

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.


INTERPUBLIC GROUP: Secures US$335 Mln Revolving Credit Facility
---------------------------------------------------------------
The Interpublic Group of Companies Inc. entered into a three-
year revolving credit facility with a syndicate of banks.  The
facility provides for borrowings of up to US$335 million, of
which US$200 million is available for the issuance of letters of
credit.

The facility allows Interpublic to increase the aggregate
commitment to a maximum amount of US$485 million if lenders
agree to the additional commitments.  Interpublic may borrow and
may request the issuance of letters of credit in U.S. Dollars
and other currencies.  Interpublic may use the proceeds of
advances under the credit facility for general corporate
purposes.  The credit agreement will expire on July 18, 2011.

Citibank N.A., acted as administrative agent for the lenders,
JPMorgan Chase Bank N.A., acted as syndication agent, HSBC Bank
USA, National Association and ING Capital LLC acted as co-
documentation agents, and Citigroup Global Markets Inc. and J.P.
Morgan Securities Inc. acted as joint lead arrangers and joint
book managers.

A full-text copy of of the credit agreement is available for
free at http://ResearchArchives.com/t/s?2fdc

           About Interpublic Group of Companies Inc.

New York-based, Interpublic Group of Companies Inc. (NYSE: IPG)
-- http://www.interpublic.com/-- is one of the world's leading       
organizations of advertising agencies and marketing services
companies.  Major global brands include Draftfcb, FutureBrand,
GolinHarris International, Initiative, Jack Morton Worldwide,
Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM
Worldwide, Octagon, Universal McCann and Weber Shandwick.  
Leading domestic brands include Campbell-Ewald, Carmichael
Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and
R/GA.  The company has a regional office in England.

                         *     *     *

As reported in the Troubled Company Reporter on July 23, 2008,
Fitch Ratings assigned a 'BB+' rating to the Interpublic Group
of Companies' US$335 million three year revolving credit
facility.  The rating outlook remains Positive.


INTERPUBLIC GROUP: Fitch Rates US$335 Mln Credit Facility at BB+
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to the Interpublic
Group of Companies' US$335 million three year revolving credit
facility.  The Rating Outlook remains Positive.

Fitch's rates IPG as:

  -- Issuer Default Rating 'BB+';
  -- Enhanced Liquidity Facility 'BB+';
  -- Credit Facility 'BB+';
  -- Senior unsecured notes (including convertibles) 'BB+';
  -- Cumulative convertible perpetual preferred stock 'BB-';

Fitch has rated the US$335 million credit facility, due in 2011,
'BB+' as this facility is pari pasu with the existing US$750
million ELF and other unsecured indebtedness.  The ELF is
expected to remain in place through its expiration in June 2009.  
In the past five years IPG has only used bank and ELF capacity
for letters of credit.  The new facility will provide US$200
million in LOC capacity.  The establishment of the credit
facility is in line with Fitch's expectations that IPG would be
proactive in addressing its backup liquidity position in advance
of the ELF expiration.

The credit facility contains three key covenants which provide
limited room for deterioration in operating performance.  First,
the facility includes a minimum Last Twelve Months EBITDA of
$600 million, which excludes up to US$75 million of non-cash
impairments.  On a last 12 month basis, this covenant is
relatively tight (Fitch estimates that all else equal, a 15%
decline in EBITDA could position the company to violate the
covenant), however Fitch expects further growth in EBITDA
through 2008 and 2009 from cost rationalization and operating
leverage even amid a weakening economy.  The second covenant is
a maximum total debt to last 12 month EBITDA of 3.5times in
2008, stepping down to 3.25x in 2009 and to 3.0x in 2010.  Based
on Fitch calculations, leverage for the last 12 months ended
March 31, 2008, was 3.25x.

The company should have the flexibility to meet the step downs
through EBITDA growth and some modest debt repayment.  The third
covenant is minimum last 12 month EBITDA to interest coverage of
4.5x.  
Fitch notes the ratio is calculated on a net basis and includes
preferred dividends.  Fitch's current estimate is approximately
4.8x, also providing limited room for deterioration.  The
facility also allows for a restricted payments basket of US$600
million that can be used for capital expenditures, cash
acquisitions, share repurchases and dividends on common stock.  
If leverage is below 2.75x the company has the ability to roll
US$200 million of the unused balance to the subsequent year.

As of March 31, 2008, IPG's liquidity position is supported by
US$1.5 billion in cash and equivalents.  Net of US$223 million
in LOC, the company had approximately US$527 million available
under its US$750 million ELF.  Near-term maturities include
US$250 million notes due November 2009, and the ELF facility,
which expires in June 2009.

Separately, Fitch also reiterates that while IPG's 2008 goals of
peer level organic growth and operating margin above 8.5% could
be attainable, Fitch recognize that there could be some slowdown
in client spending in the current economic environment.  Taking
on low-margin business or cutting staff costs imprudently to
meet growth or margin targets may not be best for the longer
term health of the company.  Fitch is satisfied with the
trajectory of progress even if IPG were to fall short of meeting
its 2008 goals.   The prospect of an economic downturn is
factored into our current rating and outlook.


MG ROVER: Creditors May Receive Final Payouts in 2010
-----------------------------------------------------
Creditors of MG Rover Group Limited may have to wait until 2010
for final payouts worth up to 6.5 pence in the pound, Jon
Griffin of Birmingham Mail reports, citing PWC joint liquidator
Rob Hunt.

According to Mr. Hunt, Birmingham relates, an additional GBP30
million awaits creditors.  He, however, disclosed claims
totaling up to GBP500 million remain unresolved.

"Significant claims in excess of the values listed in the
directors' Statement of Affairs have been received and are still
being adjudicated upon, and many potential claims from the U.K.
and overseas have not been received,"  Mr. Hunt was quoted by
Birmingham Mail as saying.  "I do not expect all asset
realisations to be concluded and all claims in the liquidation
to be agreed for another 18 months to two years and it might be
considerably longer."

Meanwhile, Mr. Hunt told Birmingham Mail they have declared a
first interim dividend for unsecured creditor claims at a rate
of 4.5 pence in the pound, the largest so far, adding "the next,
perhaps final, dividend will not be declared for at least
another 12 to 18 months."

                         About MG Rover

Headquartered at Birmingham, U.K., MG Rover Group Limited --
http://www1.mg-rover.com/-- produced automobiles under the  
Rover and MG brands, together with engine maker Powertrain Ltd.  
Previously owned by Phoenix Venture Holdings,
the company faced huge losses in recent years, reaching GBP64.1
million in 2004, which were blamed on reduced sales.

MG Rover collapsed on April 8, 2005, after a tie-up with China's
largest carmaker, Shanghai Automotive Industry Corp., failed to
materialize.  It appointed Ian Powell, Tony Lomas and Rob Hunt,
partners in PricewaterhouseCoopers, as joint administrators.

The crisis left 6,000 people jobless, and caused a domino effect
on related businesses, particularly in the West Midlands.

Days later, eight European subsidiaries -- MG Rover Deutschland
GmbH; MG Rover Nederland B.V.; MG. Rover Belux S.A./N.V.; MG
Rover Espana S.A.; MG Rover Italia S.p.A.; MG Rover Portugal-
Veiculos e Pecas LDA; Rover France S.A.S., and Rover Ireland
Limited -- also fell into administration.


MOBILE MATTERS: Manchester Court Orders Winding Up Proceedings
--------------------------------------------------------------
The High Court in Manchester has ordered the winding up of
Mobile Matters (U.K.) Limited on June 30, 2008.  The order came
following an investigation by the Companies Investigation Branch
of the Insolvency Service.

Messrs Gerald Krasner and Julian Pitts of Begbies Traynor of
Leeds were appointed Administrators on Feb. 15, 2008.  As a
result of the Winding-up Order, the Court appointed them as
Liquidators.

All public inquiries concerning any other affairs of the company
should be addressed to:

         The Official Receiver
         Public Interest Unit
         PO Box 326
         17 - 21 Chorlton Street
         Manchester, M60 3ZZ
         Tel: 0161 934 4182
         E-mail: piu.north@insolvency.gsi.gov.uk

Mobile Matters (U.K.) Limited in based in Bradford. It operates
as  an Internet retailer selling mobile phones and airtime
contracts.  The company offered cashback deals as an incentive
to encourage sales to members of the public.


NEWARK GROUP: Brings In Liquidators from Ernst & Young
------------------------------------------------------
Elizabeth Anne Bingham and Patrick Joseph Brazzill of Ernst &
Young LLP were appointed joint liquidators of Newark Group Ltd.
(formerly Foodgarden Ltd.) on July 8, 2008, for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         Newark Group Ltd.
         c/o Ernst & Young LLP
         1 More London Place
         London
         SE1 2AF
         England


NORTHERN ROCK: Names Gary Hoffman as CEO Effective October 1
------------------------------------------------------------
The Board of Northern Rock plc has appointed Gary Hoffman, Group
Vice-Chairman of Barclays plc, as new Chief Executive Officer.  
He will join the Company on Oct. 1, 2008.

Gary Hoffman has been with Barclays plc since 1982 and has held
a number of senior roles during this time including Barclaycard
Chief Executive, Chairman of U.K. Banking and Chairman of
Barclaycard.  He has been an Executive Director of Barclays plc
for the last four years and became Group Vice Chairman in 2006.
Further details of his biography are included in the Notes to
Editors at the end of this release.

Ron Sandler will remain Executive Chairman of the Company until
Oct. 1, 2008, at which point he will become Non Executive
Chairman.

"This is a major step forward for Northern Rock and I am
delighted that Gary will join the Board as CEO," Mr. Sandler
said.  "His skills, experience and overall track record make him
an outstanding candidate for the role.  Gary further strengthens
our Executive team and he will provide the leadership to deliver
our business plan and take the Company forward.  I very much
look forward to working with him."

"This is an exciting opportunity for me," Mr. Hoffman said.
"Northern Rock enjoys strong local roots and community support,
an extensive customer base, and an extremely loyal set of
employees who have been through a great deal recently.  I am
excited by the prospect of leading the Company back to a
position of strength, delivering our plan and returning Northern
Rock to private ownership as a thriving, stable business."

The Board also announces that Andy Kuipers, current CEO, will
leave the Company on Aug. 31, 2008.

Mr. Sandler said: "Andy became CEO in extremely difficult
circumstances and he has performed the role admirably during his
time in office.  On behalf of all at Northern Rock, I would like
to thank him for his outstanding contribution to the Company
over 20 years of service.  He has my very best wishes for the
future."

                        About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/mortgages/-- deals with
mortgages, savings accounts, loans and insurance.  The company
also promotes secured loans to its existing mortgage customers.
The company had more than US$200 billion in assets at the end of
June 2007.

                          *     *     *


As reported by the Troubled Company Reporter-Europe on
July 8, 2008, Fitch Ratings has withdrawn the ratings of
Northern Rock's GBP400 million preference shares.  Fitch has
also affirmed the 'BB-' ratings of NR's other hybrid Tier 1 and
Upper Tier 2 issues and removed the Rating Watch Evolving, where
they were originally placed on Feb. 19.

On July 7, 2008, TCR-Europe reported that Standard & Poor's
Ratings Services lowered its rating on the GBP400 million
6.8509% Tier 1 preference shares to 'D' from 'C'.  The rating on
the GBP400 million notes issued by Saphir Finance PLC and
secured over the Northern Rock preference shares was similarly
lowered to 'D' from 'C'.

       
PROFESSIONAL RECRUITMENT: Court Orders Closure of Business
----------------------------------------------------------
The High Court in Manchester has ordered the winding up of
Professional Recruitment Direct Limited on June 30, 2008.  The
order came following an investigation by the Companies
Investigation Branch of the Insolvency Service.

The Official Receiver was appointed provisional liquidator of
the company

All public inquiries concerning the affairs of the company
should be addressed to:

         The Official Receiver
         Public Interest Unit
         PO Box 326
         17 - 21 Chorlton Street
         Manchester, M60 3ZZ
         Tel: 0161 934 4182
         Email: piu.north@insolvency.gsi.gov.uk

Professional Recruitment Direct Limited operates as a publisher
of a medical recruitment journal called Professional Recruitment
Direct and Midland Recruitment.


SIMSHU 2: Claims Filing Period Ends August 20
---------------------------------------------
Creditors of Simshu 2 Ltd. have until Aug. 20, 2008, to send in
their full names, their addresses and descriptions, full
particulars of their debts or claims, and the names and
addresses of their solicitors (if any) to:

         Edward T. Kerr
         Joint Liquidator
         PKF (U.K.) LLP
         Pannell House
         159 Charles Street
         Leicester
         LE1 1LD
         England

Edward T. Kerr and Ian J. Gould of PKF (U.K.) LLP were appointed
joint liquidators of the company by resolutions of members and
creditors on July 9, 2008.


SPICE INNS: Brings In Joint Administrators from BDO Stoy Hayward
----------------------------------------------------------------
Malcolm Cohen and Geoffrey Stuart Kinlan of BDO Stoy Hayward LLP
were appointed joint administrators of Spice Inns Ltd. (Company
Number 04616487) on July 11, 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.


TALISMAN-6 FINANCE: Fitch Junks Rating on EUR15.48MM Notes
----------------------------------------------------------
Fitch Ratings has downgraded Talisman-6 Finance Plc's Class D, E
and F notes due 2016 and affirmed the other classes, as:

  -- EUR815.41 million Class A (XS0294187306): affirmed at
     'AAA'; Outlook Stable

  -- EUR10,000 Class X (XS0294187645): affirmed at 'AAA';
     Outlook Stable

  -- EUR79.91 million Class B (XS0294187991): affirmed at 'AA';
     Outlook Stable

  -- EUR83.26 million Class C (XS0294188882): affirmed at 'A';
     Outlook revised to Negative from Stable

  -- EUR59.93 million Class D (XS0294189005): downgraded to
     'BBB-' from 'BBB'; Outlook Negative

  -- EUR12.49 million Class E (XS0294189427): downgraded to 'BB'
     from 'BBB-'; removed from Rating Watch Negative; Negative
     Outlook assigned

  -- EUR15.48 million Class F (XS0294189690): downgraded to 'CC'
     from 'B'; removed from RWN; 'DR5' rating and Negative
     Outlook assigned

The downgrades reflect the latest information received on the
defaulted/specially serviced Cherry loan and incorporates
Fitch's DR rating approach for tranches downgraded to below 'B'.  
The 'DR5' rating reflects the expected "below average" recovery
prospects on Class F.

Following the transfer of the EUR59.3 million Cherry loan into
special servicing in May 2008, a new valuation has been
conducted for the 11 residential properties located across
former East Germany that form the collateral for the loan.  The
new valuation of EUR50 million is almost 30% lower than the
original valuation (EUR70.8 million), resulting in a loan-to-
value ratio of approximately 120%, up from 84% at closing.  As
at April 2008, the liquidity facility has been drawn on the July
2008 interest payment date to ensure full interest payments on
the notes The increase of the LTV above 95% triggered an
appraisal reduction, limiting the availability of the LF for
drawings caused by the Cherry loan.  The transaction documents
already limit "loan drawings" for Class F to EUR950,000.  
Although the lower valuation and resulting appraisal reduction
have been communicated to the market, Fitch does not expect to
receive the requested valuation report.

Fitch assumed that the Cherry assets will be sold by final
maturity of the loan in October 2013.  No credit has been given
to potential future rent/value increased as a result of special
servicing or market improvements.  The expected resolution in
Fitch's analysis is a bulk sale of all 11 assets for the current
values, with a 5% haircut to address sales costs and certain
other expenses.  Due to the unavailability of current rent
rolls, a EUR0.5 million borrower income has been projected going
forward for debt service payments, subject to payment of
operating costs and borrower expenses.  The restraints for LF
drawings have been taken into consideration.

The result is an expected EUR13 million loss on the Class F
notes.  The resulting loss in subordination exposes the Class D
and E notes to potential futures deteriorations in the Talisman
6 portfolio which contributed to the downgrade of these two
tranches.  As mentioned in previous Fitch announcements, two
other loans are currently performing below Fitch's expectations:
EUR147.2 million Coconut and EUR87.6 million Mango.

The transaction remains on priority review and will be reviewed
quarterly or upon receipt of relevant information.  Any further
relevant changes with regard to the pool in general or the
Cherry loan in particular will likely result in further
announcements.  


TRUSTGUARD CREDIT: Credit Crunch Spurs Administration
-----------------------------------------------------
The directors of Trustguard Credit Services has decided to place
the company administration after being hit by the credit crunch,
Laura Stavro-Beauchamp writes for Mortgage Strategy.

Trustguard, Mortgate Strategy relates, will go into creditor
voluntary liquidation.  The directors called in Ernst & Young to
assist with the liquidation process.

Mortgage Strategy adds all of the company's staff have been made
redundant.

Meanwhile, Trustguard will no longer be accepting any more new
business.  Em-financial, however, is offering its resources to
brokers who have pending business with the company, Mortgage
Strategy discloses.

Trustguard Credit Services -- http://www.trustguard.co.uk/--  
offers a very comprehensive range of mortgage, loan and
commercial mortgage products, all of which are fully packaged by
the company with full delegated authority from the lender. Its
product portfolio covers the entire market, from the blue chip
prime end of the market, through to self certification and sub-
prime.


* Fitch Holds Low-B Support Floor Ratings on Bldg. Societies
------------------------------------------------------------
Fitch Ratings has downgraded Principality Building Society's and
West Bromwich Building Society's Long-term Issuer Default
ratings to 'A-' from 'A' and Individual ratings to 'B/C' from
'B'.  The agency has also downgraded Yorkshire Building
Society's Long-term IDR to 'A' from 'A+'.  

This rating action has no impact on the 'AAA' rating of the
covered bonds of YBS.  Fitch has also downgraded Britannia
Building Society's Individual rating to 'B/C' from 'B' and
revised the Outlook of its Long-term IDR of 'A' to Negative from
Stable.  The Short-term ratings of these four societies are
affirmed at 'F1'.  Fitch has also affirmed the ratings of
Chelsea Building Society, Coventry Building Society, Leeds
Building Society, Newcastle Building Society and Skipton
Building Society.  The ratings are detailed below.

The rating actions reflect Fitch's view that the fall in U.K.
house prices and slowing domestic economy are likely to lead to
a tougher operating environment for building societies.  Fitch
considers that, from an unsustainably low level, loan impairment
charges will rise, dampening operating profit.  Fitch believes
the most vulnerable building societies are those that have the
greatest exposure to specialist mortgages, high LTV residential
mortgage loans, concentration in commercial mortgage lending and
recent rapid loan growth.  The agency acknowledges that building
societies' loan portfolios benefit from being secured on
residential housing, a traditionally safe form of lending.  The
majority of building society funding comes from retail savers, a
traditionally stable form of funding.  In most of the building
societies included in this review, capital is at least
reasonably strong and is not a cause of concern in any.

The downgrade of PBS reflects the greater risks inherent in its
second charge lending business, as well as a decline in
opportunities to generate non-interest income from new lending
or its small estate agency subsidiary.  Although arrears to date
have not deteriorated significantly in the second charge
mortgage loan portfolio, Fitch considers that the probability of
a significant slowdown in the U.K. housing market has risen.  
Therefore, in addition to the risk of increased defaults arising
from the wider economic slowdown, loss severities are also
likely to be worse than previously expected. Some concentration
in the commercial book continues, which increases the society's
credit risk.  The Short-term 'F1' rating is supported by PBS's
strong retail funding franchise.

The downgrade of WBBS reflects the rapid growth in the group's
buy to let and commercial lending portfolios over the past three
years.  Combined with strong loan growth in WBBS's overall
mortgage book, as well as a weakening U.K. economy and housing
market, Fitch considers that risks in the society have risen.  
The ratings also reflect the society's good record of
profitability. However, Fitch believes that this profitability
is likely to come under pressure if impairment charges increase,
while income generation from commercial lending is likely to be
limited and the fair value of the group's housing portfolio
could suffer if house prices suffer a further material decline.  
The Short-term 'F1' rating is supported by WBBS's strong retail
funding franchise.

The downgrade of YBS reflects the increased risks represented by
higher loan-to-value lending and recent growth in their higher
risk broker-introduced business.  Probable growth in the group's
loan impairment charge, in addition to possible further write-
downs of structured investments, are likely to result in
profitability that would be small for an institution of this
size.  The Stable Outlook reflects its good wholesale funding
franchise and strong capital, which, although not enough to
justify a higher rating on their own, should enable YBS to
withstand a moderate deterioration in performance.

The Negative Outlook for BBS's Long-term IDR and the downgrade
of the society's Individual rating reflect deteriorating asset
quality in its subsidiary Britannia Capital Investment Group's
mortgage book.  The group's acquired residential mortgage books
are also demonstrating higher levels of arrears, but these
levels fall within projections made by management at the time of
purchase.  The larger proportion of first time buyers and higher
LTV lending in BCIG also contribute to higher credit risk.
Although the society expects to report improvement in its pre-
impairment operating profit for 2008, operating profit is likely
to be weakened by larger loan impairment charges.  

Management tightened underwriting criteria considerably in H107
and therefore expects the negative impact of higher impairment
charges to be contained.  The ratings also consider BBS's good
liquidity and funding position and its franchise.  BBS could
suffer a downgrade of its Long-term IDR if, in approximately the
next 18 to 24 months, asset quality deteriorates and loan
impairment charges erode operating profit to a level weaker than
its 'A' rated peers.

The rating actions are:

Principality Building Society:
  -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: downgraded to 'B/C' from 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: downgraded to 'A' from 'A+'
  -- Subordinated notes and permanent interest bearing shares:
     downgraded to 'BBB+' from 'A-'

West Bromwich Building Society:
  -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: downgraded to 'B/C' from 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: downgraded to 'A' from 'A+'
  -- Subordinated notes and permanent interest bearing shares:   
     downgraded to 'BBB+' from 'A-'

Yorkshire Building Society:
  -- Long-term IDR: downgraded to 'A' from 'A+'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: affirmed at 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- Senior unsecured notes: downgraded to 'A+' from 'AA-'
  -- Subordinated notes and permanent interest bearing shares:
     downgraded to 'A-' from 'A'

Britannia Building Society:
  -- Long-term IDR: affirmed at 'A'; Outlook revised to Negative
     from Stable

  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: downgraded to 'B/C' from 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- Senior unsecured notes: affirmed at 'A+'
  -- Subordinated notes and permanent interest bearing shares:
     affirmed at 'A-'

Chelsea Building Society:
  -- Long-term IDR: affirmed at 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: affirmed at 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: affirmed at 'A+'
  -- Subordinated notes: affirmed at 'A-'

Coventry Building Society:
  -- Long-term IDR: affirmed at 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: affirmed at 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: affirmed at 'A+'
  -- Subordinated notes and permanent interest bearing shares:
     affirmed at 'A-'

Leeds Building Society:
  -- Long-term IDR: affirmed at 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: affirmed at 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: affirmed at 'A+'
  -- Subordinated notes and permanent interest bearing shares:
     affirmed at 'A-'

Newcastle Building Society:
  -- Long-term IDR: affirmed at 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: affirmed at 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: affirmed at 'A+'
  -- Subordinated notes and permanent interest bearing shares:
     affirmed at 'A-'

Skipton Building Society:
  -- Long-term IDR: affirmed at 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- Individual rating: affirmed at 'B'
  -- Support rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: affirmed at 'A+'
  -- Subordinated notes and permanent interest bearing shares:
     affirmed at 'A-'


* Fitch: Some UK Homebuilders Face Default Risk in 12 Months
------------------------------------------------------------
Fitch Ratings says it believes a significant proportion of U.K.
leveraged buy-out house-builders face considerable default risk
in the next 12 months, as a result of the sharp downturn in the
U.K. housing market.

"While much media attention has focused on the recent
difficulties of large, high-profile builders, such as Barratt
Developments plc and Taylor Wimpey plc, we believe the most at
risk are LBO house-builders that tend to be privately-owned mid-
tier players operating in regional or niche markets, with high
levels of debt," says Ewan Macaulay, Associate Director in
Fitch's Corporates team.

Like the rest of the U.K. house-building industry, these
builders are suffering from an unprecedented drop in U.K.
mortgage lending and a weakening economy.  This has led to a
severe drop in sales and earnings, with some LBOs now more than
50% below their FY08 base case forecasts for EBITDA generation.

Generally, most house-builders tend to benefit from a reasonably
flexible business model, which allows them to generate cash
during a downturn by halting land-buying - often a house-
builder's single-largest cost - and mothballing new projects and
reducing build costs on current projects.  However, LBOs tend to
have less flexibility than their peers.  Unlike non-leveraged
builders, the high level of debt at LBOs significantly reduces
financial flexibility due to onerous interest payments and debt
amortizations, although more recent LBOs benefit from back-ended
debt schedules.

Furthermore, LBOs often have more restricted access to their
revolving credit facilities than non-leveraged builders.  These
RCFs are core to a house-builder's operations, given that they
are used to fund day-to-day operational costs.  Restrictions on
these RCFs may come in the form of clean-down provisions, which
force the company to repay drawings within a short period of
time, or contractual clauses that limit the amount of debt that
can be drawn relative to the underlying value of the company's
assets. However, the value of builders' land banks - normally
their single-largest asset - has been decreasing as land prices
fall and builders choose not to replace consumed land with new
land.  As a result, some LBOs are now facing the prospect of
severely reduced limits on their RCFs, which in turn reduces the
company's access to all-important liquidity at a time when they
need this liquidity to offset weaker operational cash flows.  
This therefore leaves some LBOs with the prospect of running out
of cash.

In addition, some LBOs have either recently breached - or will
soon breach - covenants on their debt.  This will likely trigger
the re-negotiation of the problematic covenants with their
lenders, maybe facilitated by a cash injection from private
equity sponsors, or possibly consensual debt-for-equity swaps.  
However, this may only materialize for those credits that are
deemed robust enough to survive a prolonged downturn.  It is
also possible that lenders -- particularly those who are already
highly exposed to the U.K. housing market -- will attempt to
recover their investment by forcing the company into
liquidation.

From a broader perspective, the difficulties being faced by
highly-leveraged house-builders are likely to have a negative
knock-on effect on the wider U.K. house-building market.  
Struggling LBOs may choose to aggressively discount their
properties for-sale in an effort to improve short-term cash
flows, forcing competitors to follow suit and therefore
compounding price falls. Additionally, the lack of land buying
and the possibility of distressed land sales by LBOs will
further dampen land prices, in turn causing further erosion in
the value of land banks across the sector.

Fitch currently rates four leveraged U.K. house-builders on a
non-public 'shadow' basis.  Based on the latest set of private
information, these builders have combined sales of GBP4.4
billion, EBITDA of GBP0.8 billion and total debt of GBP3.3
billion.


* Fitch: UK Credit Cards ABS Deal Delay Won't Affect Ratings
------------------------------------------------------------
Fitch Ratings says a delay by U.K. credit card ABS transactions
to the start of their principal accumulation periods will not
typically impact the notes' ratings.

An accumulation period is designed to allow the build-up of a
principal reserve to redeem the notes on their scheduled
redemption date.  In a typical 12-month controlled accumulation
period, one twelfth of the corresponding note amount is trapped
each month from principal collections.  Most notes issued from
U.K. credit card ABS transactions are structured with a
revolving period followed by a controlled accumulation period,
lasting until the scheduled redemption date.  The scheduled
redemption date is then followed by the legal final maturity
date (usually after a further two years).

Fitch notes that because its ratings of U.K. credit card ABS
notes address the likelihood of payment of interest on a timely
basis and principal by the legal final maturity date, a failure
to redeem the notes on the scheduled amortization date in itself
will not necessarily affect the ratings, provided that Fitch is
confident the notes will be repaid by the final legal maturity
date.

A number of Fitch-rated transactions are currently in, or
approaching, a scheduled accumulation period and the agency has
taken this opportunity to highlight the above structural feature
in response to market interest.  Based on the current monthly
payment rate performance, most trusts are in a position where
they have the option to delay the commencement of controlled
accumulation periods as the principal required to repay the
notes is expected to be accumulated in a shorter time period
than that originally scheduled.

Fitch also highlights that, in addition to utilizing its own
share of principal collections, a series may, to redeem its
notes, use principal collections allocated to the notes of other
series within a master trust, to the extent that such series are
not in an accumulation or amortization period themselves.

In the event that the accumulation period generates insufficient
principal collections to redeem the relevant notes on the
scheduled redemption date, then the series switches into a rapid
amortization.  During this rapid amortization phase, all amounts
previously accumulated plus additional principal collections are
utilized on a pass- through basis to redeem the notes
sequentially.

Given current levels of MPR, Fitch does not expect any series to
miss their scheduled redemption dates.  Although, Fitch believes
MPR levels could come under pressure from any further
deterioration in the UK economic environment, the agency does
not anticipate rating actions as a result of issuers electing to
delay the commencement of accumulation periods.


* Fitch Says Negative Rating Trend in Global Banks Persists
-----------------------------------------------------------
Fitch Ratings expects further negative rating actions on banks
in the coming months, as the operating environment remains tough
and the global economy continues to slow.  There were more than
twice as many negative rating actions taken during Q208 than
positive actions, intensifying the negative trend already
experienced in the previous two quarters.

In its latest quarterly report on "Global Bank Rating Trends",
Fitch says the number of Positive Outlooks compared to Negative
Outlooks assigned to bank ratings has steadily fallen over the
past 15 months, with the number of Negative Outlooks surpassing
that of Positive Outlooks at end-June 2008.

Although the immediate liquidity risks in the global banking
system have been partly alleviated by measures taken by central
banks, wider concerns about the extent to which global credit
market conditions are likely to feed through to the real
economies of developed countries intensified in second quarter
2008.  "Banks in developed markets now face the prospect of
increased credit costs on top of higher funding costs," says
Gerry Rawcliffe, Managing Director and Group Credit Officer in
Fitch's Financial Institutions Group. "Furthermore, Fitch does
not rule out further write-downs of structured products,
including write-downs related to financial guarantors."

During Q208 there were 69 negative rating actions on banks as
opposed to 31 positive actions.  Although there were still more
positive actions in emerging markets than negative, there were
significantly more negative actions than positive actions in
developed markets.  Rating downgrades during the quarter were
predominantly in Europe, although there were some further
downgrades in the developed Americas as well.

Having peaked in Q107 at five to one, at end-second quarter 2008
the number of Positive Outlooks was surpassed by the number of
Negative Outlooks for the first time since the Global Bank
Rating Trends report series began in 2006.  The increase in
Negative Outlooks largely related to banks in developed Europe
and developed Americas. Despite this negative shift in Outlooks,
around 80% of Fitch's bank ratings still have Stable Outlooks.


* Fitch Says EC's Proposed Restrictions Need More Definition
------------------------------------------------------------
Fitch Ratings has proposed investment restrictions for European
banks in relation to structured finance have the potential to
resolve concerns regarding an apparent misalignment of interests
between originators and bank investors.  However, the agency
believes the European Commission's proposals need further
development to effectively address this perceived market
failing. Moreover, in addressing this single issue, other
unintended problems for financial markets could be created.

On April 16, 2008, the EC published a consultation paper with a
number of proposed changes to the Capital Requirements
Directive, some of which are intended to address perceived
failings in the structured finance markets.  Specifically, the
EC has proposed restricting European banks from investing in
tranches of transferred credit risk unless the relevant
originator, arranger or manager/servicer has retained at least a
10% interest in those tranches.

"Enhanced transparency regarding originator/sponsor retained
interests could allow for better evaluation of this risk by
investors," says Stuart Jennings, Risk Officer for EMEA
structured finance at Fitch.  "However, the EC's proposals in
their current form could prove overly prescriptive and have the
potential to put European banks at a competitive disadvantage as
investors.  Furthermore, if implemented in their current form,
the cost of the proposals could render the economics of some
European structured finance transactions unviable.  This could
limit available funding options for European originators."

Fitch believes the practical aspects of application also require
further definition, particularly with regard to how retained
interests would be monitored, as well as the remedies for breach
and the extent of intended reach.  "Should these proposals
become law, it could encourage European banks to seek new off
balance sheet investment techniques to circumvent the rule.  Off
balance sheet investment structures were widely believed to have
amplified the impact of the U.S. subprime performance issues,"
says Mr. Jennings.

In a report, Fitch outlines the potential impact of these
proposals and the questions that might arise upon practical
application.  The report, entitled "A Review of Proposed Changes
to the European Capital Requirements Directive".

The agency also recently published its own consultation paper
focusing on increased transparency in this area, with respect to
retained securitization positions by key transaction parties.  
The report, entitled "Exposure Draft: Retaining Equity Piece
Risk - Enhancing Transparency".


* Ernst & Young ITEM Expects UK Economy Inflation to Remain High
----------------------------------------------------------------
The Ernst & Young ITEM Club summer forecast released sees an
economy that will struggle to avoid recession in 2009 with
predicted GDP growth of 1.0%.  ITEM expects inflation to remain
above the target range of 1 to 3% for the next 12 months and
there will also be a substantial increase in the numbers of
unemployed.

"Both on the high street and in the housing market it is going
to get a great deal worse before it gets better," Peter Spencer,
Chief Economist to the Ernst & Young ITEM Club says.  We have
already seen a housing crisis that has morphed from a credit
crunch to a general collapse in confidence as prices have
tumbled.  Our worry is that without the usual medication from
the Bank of England - which would have nasty inflationary side
effects in this environment - the consumer will follow suit,
moving from their current state of denial into a state of
despair."

Consumers can no longer defy gravity

As ITEM has consistently warned, both consumer and the
Government have been living beyond their means for the last few
years, overborrowing on credit.  Against the current bleak
background, consumer spending is unlikely to defy gravity for
any longer, while the public finances face a similar strain.

"Households will be lucky to see real disposable income growth
of 1% this year, with perhaps 1˝% in 2009," Spencer explains.
With credit repayments becoming more onerous, the forecast shows
consumer spending growing by just 0.2% next year.  Rising
inflation, the limited availability of credit and sharp
reversals in the housing and equity markets mean that consumers
are coming under increasing pressure."

ITEM predicts some tough months ahead even if the oil price
comes off its record highs.  The summer forecast expects oil
prices to peak at US$150 a barrel this summer, before easing
back towards US$100 over the next two years.  

"Consumers will inevitably cut back on non-essential spending in
the face of the impact of rising food and energy prices on their
discretionary incomes," Spencer elaborates.  Many parts of the
leisure sector will be particularly hard hit."

Nor is there likely to be much relief for the consumer from an
increasingly squeezed public purse.  

"The GBP2.7 billion the Chancellor provided for those losing out
from the removal of the 10p tax band is surely the last pain
relief he can afford," Spencer explains.

And the free fall in housing market will continue

Credit markets in the developed financial markets are still
showing little sign of loosening and continue to impact on the
increased cost and restricted availability of mortgage finance.
In light of the deteriorating economic environment, ITEM expects
that house prices have significantly further to fall.

"We expect prices to drop by about 10% through 2008 and a
further 6% through 2009," Spencer says.  At the same time, we
expect housing turnover to fall by about 35% this year and a
further 10% in 2010, with all the usual effects on the
associated expenditures.  It is worth emphasizing, however, that
the correction in house prices is likely to be far greater
outside London."

But the slowdown could pave the way for a rate cut this winter

Although the risk of a technical recession in the U.K. has risen
significantly, the financial pressures facing households and
companies are still not as severe as those that preceded the
early-1990s recession.  This is partly because interest rates
remain historically low; but also because the labor market is
more flexible and companies are generally in a stronger
position.

With consumer spending falling off sharply, ITEM expects a
slowdown in the high street to pave the way for a rate cut,
possibly as early as November.  

"The weakening economy should allow the MPC to cut base rates
this winter without running the risk of inflationary second-
round effects," Spencer explains.  We expect base rates to fall
to 4% by the end of 2009.  This will help to put a cushion under
the level of demand in the economy and set the scene for a
recovery in 2010."

Government must keep a lid on public sector pay rises

ITEM is urging the Government to stand firm on excessive public
sector pay demands, which could put severe pressure on any
attempts to dampen down inflation and potentially blow any hopes
of a medium term recovery out of the water.

"Inflationary expectations are rising in line with the headline
inflation figures and there is an increasing risk of a
significant push for higher wages to offset the price increases
that families are facing," Spencer explains.  This risk is most
acute in the public sector, where wage increases have been held
below those in the private sector and the cost of living for
nearly two years now.  But we don't think the Government will
cave in to the public sector unions. That would mean higher
interest rates and a recession, which could cost them the
election."

Decline in immigration will ease unemployment but still
substantial rises

ITEM is forecasting a rise in the overall numbers of unemployed
but it remains a modest jump particularly in comparison with
previous downturns.  A major contributory factor is that poorer
U.K. employment and economic prospects as well as a weaker
exchange rate are already causing reversals in migration flows.

"The recent immigration flows will reverse as employment
prospects deteriorate -- indeed there are already signs of that
happening -– helping to reduce the impact of job losses on the
unemployment figures," Spencer explains.  Nevertheless, we
expect unemployment (on the Labour Force Survey measure) to
increase from the low point of 1.6 million reached at the end of
last year, topping the 2 million mark by 2010."

Company finances robust and exporters relatively strong

Whilst the consumer will feel the pain over the next 18 months,
corporate Britain is better placed to weather the downturn.
According to ITEM there is unlikely to be anything like the
degree of retrenchment by the company sector that triggered the
recessions of the early 1980s and 1990s.  While some sectors -
most obviously housebuilding- are facing a sharp downturn, ITEM
expects export growth to pick up from 2% this year to over 5%
next year in response to the recent fall in the exchange rate,
offering plenty of opportunities for others.

Leading the way in energy efficiency?

Longer term the recent high oil price does have a silver lining
even if it is causing immediate pain.  Britain is relatively
energy rich and efficient.

"The demand for oil will moderate over the next year as fuel and
oil prices remain high," Spencer concludes.  As a result, the
average UK household will look to reduce its energy consumption
and will unlock savings from energy and petrol bills if they are
prepared to do so.  The Friday night treat will no longer entail
a drive to the chippie but perhaps, a leisurely walk to an up-
market Chinese take-away."


* Credit Crunch Hits UK Companies Harder, a KPMG Survey Says
------------------------------------------------------------
The impact of the credit crunch is hitting U.K.-headquartered
companies much harder than their U.S. peers, according a new
survey by professional services firm KPMG.

Far more U.K. companies are experiencing delayed payments from
customers, reduced access to credit, increased financing costs
and suppliers demanding earlier payment, compared to their US
counterparts.

"Given that the credit crunch began in the U.S., it is
interesting - and perhaps surprising - to see that U.K.
companies are feeling the pinch more than their transatlantic
counterparts," said Andrew Ashby, Director in KPMG Advisory.

"This may be because stakeholders such as banks, shareholders
and non-executive directors are being more proactive forcing
U.K. companies to take action before they get into difficulty."

In conjunction with CFO Research Services, KPMG asked 342
companies with revenues ranging from GBP250 million to more than
GBP20 billion about how the credit crisis was affecting their
management of working capital.

When asked how companies plan to address these cash flow
challenges, 49 per cent said they plan to negotiate longer
supplier payment terms, while 46 per cent said they would
tighten credit lines to customers.

But such traditional, knee-jerk responses will only make matters
worse for all but a handful of firms.

"Adopting the same old blinkered approach of squeezing your
suppliers and delaying payments is a zero sum game where only
few winners will emerge," warned Andrew Ashby.

"Companies need to be more focused on gaining improved
visibility and control of cash and to work smarter across the
supply chain to create win-win opportunities that reduce the
cash cycle for all participants."

The survey found that increased pressure from stakeholders such
as lenders, investors and analysts was seen as the greatest
impact of the current credit environment with 76 percent of U.K.
respondents saying its impact was high, compared to just 23
percent among US companies.

Similarly, far more U.K. companies (75 percent) are experiencing
delayed payment from customers than their U.S. peers (23
percent); reduced access to credit -– 75 percent in the U.K.,
only 14 percent in the U.S.; and increased cost of credit – 71
percent in the U.K., versus 19 percent in the U.S.

Suppliers are also demanding early payment, according to 73 per
cent of U.K. respondents, compared to just 12 per cent of
respondents in the U.S.

And although 96 percent of companies use some form of cash flow
forecasting, only 10 percent say they are accurate.  The news is
worse for U.K. companies, with only a quarter of companies
achieving plus/minus ten percent forecast accuracy compared to
64 percent of U.S. companies.

"In the current environment of high debt multiples and
restricted access to new credit, accurate visibility of when and
how much cash the business will generate is critical," Andrew
Ashby added.

Other key findings include:

    * 88 percent of U.K. companies expect having to delay or
      revisit refinancing plans in the next 24 months.

    * 46 percent of respondents are worried the economic
      environment will result in increased exposure to bad debt.

    * Working capital performance at UK companies has faired
      much better over the last three years and is forecast to
      maintain the same trend of flat or improving.  This
      compares with 51 percent of US companies that forecast a
      deteriorating over the next three years in their working
      capital performance.

    * 84 percent describe cash management as a top tier priority
      but 25 percent still don't link executive compensation to
      cash flow targets.

One bright spot from the survey is that just four per cent of UK
firms plan to reduce capital expenditure over the next two years
as a result of tightening credit market – in the US the figure
is 50 percent.

"By gaining visibility and control of cash flows, companies will
be able to identify the areas where they can generate more
cash," Andrew Ashby concluded.  While working capital tends to
be a large area of opportunity companies should also look at
cash generation from tax, treasury and other assets on the
balance sheet.  To drive sustainable improvement, leading
companies embed cash management into the strategic decision-
making process."

"One way to do this is for companies to incentivize executives
to manage cash flow better.  Those that do have fared better
over the past three years and expect to suffer less in the
future."


* BOOK REVIEW: Corporate Players: Designs for Working
-----------------------------------------------------
Author:     Robert W. Keidel
Publisher:  Beard Books
Paperback:  276 pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1587982587/internetbankrupt   

In American business, the metaphor of the sports team is
commonly used for business groups of all sizes -- from ad hoc
teams of a few members that deal with temporary problems to
groups of executive managers who are responsible for long-term
corporate survival and the profitability of an entire
organization.

The sports team is a favored metaphor because sports bring
individuals with different talents and different
responsibilities together to perform a particular activity and
pursue a common objective.  Within its framework, sports also
allow for the outstanding performance of particular individuals
and recognition of that performance.  The sports tem metaphor
has become so common in business and so routinely applied to
business teams of all sorts and sizes that little thought is
usually given to its specifics.

Corporate Players -- Designs for Working and Winning Together
takes a close look at what makes a sports team function
effectively and win.  The author then applies these observations
to develop a plan for those in the corporate world to be as
successful as those in the sports world.  While a reprint of a
1988 book, the lessons in this book are timeless.

Keidel identifies three main types of teams found in business:
autonomy, control and cooperation.  The author relates each to a
particular type of sports team: autonomy for baseball, control
for football and cooperation for basketball.  A chart compares
differences among the three with respect to organizational
strategy, organizational structure, and organizational style.  

For instance, the organizational strategy for autonomy in base
ball is "adding value through star performers"; while the
organizational strategy for cooperation in basketball is
"innovating by combining resources in novel ways."

With a sharp analytic eye and decades of experience in different
aspects of business, including academic and government
positions, Keidel delves into the specifics of business groups
as sports teams.  

A fundamental point often overlooked by businesspersons is that
teams in different sports are different in significant ways.  An
understanding of these differences is crucial for executives,
managers, and consultants who are responsible for
conceptualizing a team in relation to a particular business
matter and then bringing together a team of individuals.  

As such, executives, managers and consultants have roles similar
to a general manager and coach of a sports team.  In some case,
they may also have the role of a player on the team.

This chart and other aids, together with the author's engaging
commentary and enlightening analyses, will help business leaders
select the right personnel, assemble a team capable of
performing the task at hand, and then coordinate all of the
players to accomplish the desired objective.

Robert W. Keidel has a Ph.D. from Wharton, and has also been a
Senior Fellow at this top business school.  An author of three
other books and many articles, he teaches courses in business
strategy, technology, and organization at Drexel University's
Lebow College of Business.  Robert Keidel Associates is his
business consulting firm.


                            *********

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 V. Tovilla,
Joy A. Agravante, Julybien D. Atadero and Peter A. Chapman,
Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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members of the same firm for the term of the initial
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information, contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *