TCREUR_Public/080730.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

            Wednesday, July 30, 2008, Vol. 9, No. 150

                            Headlines


A R M E N I A

ARMECONOMBANK: Moody's Changes D- BFSR Outlook to Negative


A U S T R I A

E.S.D. EINKAUFSHILFEN: Claims Registration Period Ends August 20
ERNST EDLINGER: Claims Registration Period Ends August 20
LUCJA BARANOWSKI: Claims Registration Period Ends August 19
WALDDIELE GASTRONOMIE: Claims Registration Period Ends August 14


F I N L A N D

STORA ENSO: Fitch Chips Long-Term IDR to BB+ on Poor Performance
UPM KYMMENE: Rising Structural Weakness Cues Fitch's Rating Cuts


F R A N C E

ALCATEL-LUCENT SA: CEO & Chairman to Quit from Posts
DELPHI CORP: Appaloosa Balks at GM Joining Adversary Suit
DELPHI CORP: Allowed to Pursue US$2.55B Fraud Claim v Appaloosa
DELPHI CORP: Negotiating New/Amended Plan with GM and Committee
DELPHI CORP: WTC, Panel Wants Plan Confirmation Order Revoked

DELPHI CORP: Wants Plan-Filing Deadline Extended to October 31


G E R M A N Y

AGB PLANUNGSGRUPPE: Claims Registration Period Ends Aug. 8
AMERICAN AXLE: Posts US$644.3 Million Net Loss for 2nd Qtr 2008
ASST SICHERUNGSANLAGENVERTRIEBS: Claims Registration Ends Aug. 7
AUTODOM AUGSBURG: Claims Registration Period Ends August 7
DIES' PLAY: Claims Registration Period Ends August 6

ELKA TOYS: Claims Registration Period Ends August 6
ELTEGA GMBH: Claims Registration Period Ends August 6
HANITEK HANDELS: Claims Registration Period Ends August 6
HENRIKSEN TRANSPORT: Claims Registration Period Ends August 6
HR DIVITEC: Claims Registration Period Ends August 7

MAGDEBURGER PROJEKTENTWICKLUNGS: Claims Registration Ends Aug. 7
MASSWERK BAU: Claims Registration Period Ends August 7
POWER GETRANKE: Claims Registration Period Ends August 6
SABIM HANDEL: Claims Registration Period Ends August 7
SPECTRUM BRANDS: Moody's Holds B1 Rating to US$50MM LC Facility

TIMTEC INGENIEURHOLZBAU: Creditors Meeting Slated for August 8
TOX-EX FACILITY: Claims Registration Period Ends August 7


I R E L A N D

MAGNOLIA FINANCE II: Moody's Rates Class E US$6.4MM Notes Ba2


I T A L Y

DANA CORP: Appoints Keith Wandell as Board of Directors Member
DANA CORP: Visteon Insists on US$9.8MM Claim for Product Recall
PARMALAT SPA: Citigroup Trial to Proceed to Jury Verdict
TISCALI SPA: Unit Inks Partnership Agreement with Aastra Italia


K A Z A K H S T A N

ALDA VOSTOK: Creditors Must File Claims by September 10
EURO PLAST: Claims Deadline Slated for September 10
INTER CHANCE: Claims Filing Period Ends September 3
ITALYANSKY DOM: Creditors' Claims Due on September 3
KAZ EXPO: Claims Registration Ends September 3

KUAT GRADSTROY: Creditors Must File Claims by September 3
MAKSIMUM LLP: Claims Deadline Slated for September 11
OSSEK LLP: Claims Filing Period Ends September 11
REM SNUB: Creditors' Claims Due on September 3
SOUZ MET SERVICE: Claims Registration Ends September 10

* KAZAKHSTAN: S&P Affirms Bank Industry Country Risk Assessment


K Y R G Y Z S T A N

ALIP STROY: Creditors Must File Claims by September 4


N E T H E R L A N D S

ELM B.V.: S&P Corrects Series Number for US$10 Million Notes
SENSATA TECH: Moody's Rates US$2.8BB Subordinated Notes at Caa2


P O L A N D

CLAIRE STORES: Moody's Junks Probability of Default Rating


R U S S I A

GOFITSKOE OJSC: Court Names N. Zinchenko as Insolvency Manager
KUZNETS-REM-MONTAZH: Court Names E. Nevolina to Manage Assets
PSKOV-AUTO OJSC: Creditors Must File Claims by August 28
SEL-KHOZ-KHIMIYA: Belgorod Bankruptcy Hearing Set September 22
SEVERSTAL OAO: Hikes 2nd Qtr Steel Output to 5.3 Million Tons

SEVERSTAL OAO: UK FSA Okays US$1.25 Bln Debt Issuance Prospectus
SISTEMA-HALS: Board Okays Bond Issue Documents and Memorandum
SISTEMA JSFC: Unveils New Organizational Structure
SISTEMA JFSC: Shyam Telelink Unit Names Vsevolod Rozanov as CEO
SUROVIKINSKIY MEAT: Creditors Must File Claims by August 28

TMK OAO: Completes US$600 Million Eurobond Issue
TMK OAO: Oilfield Services Unit Hikes Production Capacities
VELES LLC: Stavropol Court Names L. Palyan as Insolvency Manager
VIMPEL-COMMUNICATIONS: Issues RUR10 Billion for Expansion Funds
VOLGATELECOM OJSC: Seeking Provider for RUR1.1 Billion Loan

YAMAL-SEVER-STROY: Court Starts Bankruptcy Supervision Procedure


S P A I N

AYT COLATERALES: Fitch Puts 'B' Rating on Class D Notes

* SPAIN: Banking & Real Estate Industries Plummeting, S&P Says


S W I T Z E R L A N D

GENERAL MOTORS: Appaloosa Balks at Participation on Delphi Suit
GENERAL MOTORS: Negotiating New or Amended Plan for Delphi Corp.
LOKDEPOT WINTERTHUR: Creditors' Proofs of Claim Due by Oct. 1
SEMGROUP ENERGY: March 31 Balance Sheet Upside-Down by US$54.6MM
SEMGROUP LP: Seeks Schedules and Statements Filing Extension

SEMGROUP LP: Has About US$13 Million Payable to Hiland Holdings
SEMGROUP LP: Various Entities Discloses Financial Exposure


T U R K E Y

* Turkey Ratings Remain Within Tolerable Range, Fitch Says


U K R A I N E

ALFA BANK: Moody's Assigns LT Foreign Currency Rating of Ba3
AT-OIL LLC: Proofs of Claim Deadline Set August 10
BMU-7 OJSC: Creditors Must File Proofs of Claim by August 10
CHEMPET LLC: Creditors Must File Proofs of Claim by August 10
HERMES PLUS: Creditors Must File Proofs of Claim by August 10

HERMES-SECONDARY METALS: Creditors Must File Claims by August 10
INTERREGIONAL RESOURCES: Creditors Must File Claims by August 10
INVEST-MARKET LLC: Creditors Must File Claims by August 10
KRASNODON COAL: Creditors Must File Proofs of Claim by August 10
NIK-INDUSTRIAL-BUILDING-INVESTMENT: Claims Due by August 10

UKRAINIAN INDUSTRY: Creditors Must File Claims by August 10

U N I T E D   K I N G D O M

BRITISH AIRWAYS: In Talks with Iberia SA over Possible Merger
BUILD ON: Colin Nicholls Leads Liquidation Procedure
COVENTRY FOOTBALL: Calls in Liquidators From Moore Stephens
CURTIS FINE: Goes Into Administration; 180 Jobs Affected
DECO SERIES: S&P Affirms BB Rating on Class H CMBS Notes

DIRECT ACCESS: Brings in Liquidators from KPMG
FLARETECH LTD: Joint Liquidators Take Over Operations
FISHERBAY LTD: Claims Filing Period Ends October 31
INTERPUBLIC GROUP: S&P Rates US$335MM Credit Facility at B+
PATIENTLINE PLC: Calls in Administrators; Sells Unit to Hospedia

RED CITY: Goes Into Administration; Stadium Project Pushes Ahead
SEVERSTAL OAO: UK FSA Okays US$1.25 Bln Debt Issuance Prospectus

* S&P Says Euro Cement & Building Materials Biz Face Downturn
* Chadbourne Elects Partners from London and New York Offices
* KPMG Survey Says More Than Half of UK Businesses Eye Job Cuts


                            *********


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A R M E N I A
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ARMECONOMBANK: Moody's Changes D- BFSR Outlook to Negative
----------------------------------------------------------
Moody's Investors Service changed the outlook on the D- bank
financial strength rating of Armenia's Armeconombank to negative
from stable.  Consequently, the outlook on the bank's Ba3 long-
term local and foreign currency deposit ratings was also changed
to negative.  The short-term ratings remain at Not Prime.

According to Moody's, the rating action reflects the impact on
AEB's business and funding franchise following the change to the
Armenian tax authority's practice of maintaining with AEB
customer tax dues collected by the bank.  AEB previously had the
exclusive privilege of collecting such dues, which were
subsequently maintained in a tax authority account with the
bank, but is no longer the only bank collecting these funds,
which now flow out of AEB, thus removing the funding
accumulation benefits it used to enjoy.  Given its ownership
structure, AEB carries political risk and was one of the few
banks in Armenia to be directly affected by political tension
both before and after the country's presidential elections
earlier this year.

Moody's acknowledges that the bank's relatively good domestic
franchise and strong financial metrics have enabled it to
survive the impact of the loss of tax authority funds as well as
a relative squeeze on customer deposits, which began in Q4 2007,
peaked in Q1 2008 and appear to have stabilized (and marginally
reversed) in Q2 2008.  Nevertheless, the rating agency believes
that AEB's deposit franchise has weakened as a result.

AEB's full-year 2007 results indicate that the bank was able to
record an 18% increase in pre-provision income on the back of a
17% balance sheet growth.  Nevertheless, these results obscure
the negative impact of Q4 2007 on the bank's operations.  In
particular, for the first three quarters of 2007 AEB's net
income was up an exceptional 90% on an annualized basis while
the balance sheet was up 60% to AR$68.5 billion.  The year-end
balance sheet contraction to AR$51.2 billion translates into a
sharp 25% decline from the end-Q3 highs, due to a large
withdrawal of sight deposits by the tax authority, in an amount
of close to AR$16 billion.

Moody's notes that, as this withdrawal took place during a much
contested presidential-election period, political considerations
may have played a part given that a major shareholder of AEB
(and a member of the controlling Sukiasyan family) is a
prominent opposition MP.  The bank was able to meet its
obligations partly due to the central bank's high liquidity
requirements, by drawing down on credit lines with international
financial institutions and through sizable repo funding.

In H1 2008, the combination of higher funding costs (driven by
price competition for deposits at a time the bank was trying to
re-establish its deposit base), realized losses on the sale of
trading securities, and a smaller loan book resulted in the bank
effectively breaking even, recording a small profit of ARD199
million.  Nonetheless, Q2 2008 bank data suggest that AEB may
have halted the drop in deposits as both sight and term deposits
are up on the end-Q1 figures (though still lower than at
YE2007).  At the same time, Moody's notes that in Q2 liquidity
ratios appear to have improved as AEB continued to grow liquid
assets at the expense of its loan portfolio.  The bank's ratio
of liquid assets to current liabilities (as defined by the
central bank) recovered to around 95% (central bank requirement
60%).

On the positive side, AEB's ratings take into consideration the
bank's adequate capitalization, which remains comfortably above
regulatory requirements and at levels considered adequate given
the operating environment risks.  The bank's asset quality also
remains good (despite some deterioration in H1 2008).

AEB's Ba3/Not Prime local and foreign currency deposit ratings
are based on Moody's assessment that the probability that the
bank would receive systemic support in the event of need is low.
As such, these ratings are at the same level as the bank's Ba3
Baseline Credit Assessment (which maps from the D- bank
financial strength rating).

Going forward, any evidence that:

(i)  the bank's franchise is taking time to recover,
(ii) AEB is facing difficulties in building up its customer
     deposit base at reasonable costs; (iii) profitability is
     failing to recover from its low H1 2008 levels;
(iv) asset quality is weakening significantly; or
(v)  capitalization has dropped to levels inconsistent with the
     operating environment risks in Armenia, could trigger a
     downward revision of the bank's ratings.

Moody's would change the rating outlook back to stable if the
bank is successful in overcoming the aforementioned challenges.

                     About Armeconombank

Headquartered in Yerevan, Armeconombank reported total assets of
AR$51.2 billion (US$169 million) as at June 2008.


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A U S T R I A
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E.S.D. EINKAUFSHILFEN: Claims Registration Period Ends August 20
----------------------------------------------------------------
Creditors owed money by LLC E.S.D. Einkaufshilfen Service have
until Aug. 20, 2008, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Georg Kahlig
         Siebensterngasse 42/3
         1070 Vienna
         Austria

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 3, 2008, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 23, 2008, (Bankr. Case No. 2 S 74/08g).


ERNST EDLINGER: Claims Registration Period Ends August 20
---------------------------------------------------------
Creditors owed money by LLC Ernst Edlinger & Co have until
Aug. 20, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Leopold Riess
         Zeltgasse 3/12
         1080 Vienna
         Austria
         Tel: 402 57 01
         Fax: DW 21
         E-mail: law@riess.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Sept. 3, 2008, for the
examination of claims at:

         Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 23, 2008, (Bankr. Case No. 2 S 73/08k).


LUCJA BARANOWSKI: Claims Registration Period Ends August 19
-----------------------------------------------------------
Creditors owed money by LLC Ehrenhoefer & Hausler have until
Aug. 19, 2008, to file written proofs of claim to the court-
appointed estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at [time] on [date] for the examination
of claims at:

         The Land Court of Wiener
         Room 15
         Wiener
         Austria

Headquartered in Wr. Neustadt, Austria, the Debtor declared
bankruptcy on June 23, 2008, (Bankr. Case No. 11 S 66/08d).


WALDDIELE GASTRONOMIE: Claims Registration Period Ends August 14
----------------------------------------------------------------
Creditors owed money by LLC Walddiele Gastronomie have until
Aug. 14, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Rainer Ebert
         Hauptplatz 16
         2020 Hollabrunn
         Austria
         Tel: 02952/25 26
         Fax: 02952/25 26 18
         E-mail: rainer.ebert@gmx.net

Creditors and other interested parties are encouraged to attend
the creditors' meeting at [time] on [date] for the examination
of claims at:

         The Land Court of Korneuburg
         Hall II
         Room 104
         1st Floor
         Korneuburg
         Austria

Headquartered in Guttenbrunn, Austria, the Debtor declared
bankruptcy on June 20, 2008, (Bankr. Case No. 32 S 17/08z).


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F I N L A N D
=============


STORA ENSO: Fitch Chips Long-Term IDR to BB+ on Poor Performance
----------------------------------------------------------------
Fitch Ratings has downgraded Finland-based Stora Enso Oyj's
Long-term Issuer Default and senior unsecured ratings to 'BB+'
from 'BBB-'.  The Short-term IDR is also downgraded to 'B' from
'F3'.  The Outlook on the LT IDR remains Negative.

The downgrade reflects material deterioration in Stora's
operating performance and cash flow generation in the 6 months
ended 30 June 2008, amid growing structural challenges within
the paper and pulp sector.  Revenues were down 4.8% y-o-y at
EUR5.7 billion and EBITDA margin declined to 9% from 15.5%, due
to the combined effects of general cost inflation and
unfavorable currency fluctuations.  Pricing momentum remains
poor in most paper grades despite the sector's restructuring
over the past three years, while savings derived from various
rationalization measures are insufficient to absorb rising raw
material and production costs.

In 2008, this has been compounded by a marked deterioration in
the company's wood product business after storms in Europe and
the housing downturn in the US led to an oversupply of sawn
timber on the market.  Stora's cash flow and coverage metrics
also deteriorated y-o-y in H108 on the back of lower
profitability.  Its funds from operations/net finance costs
coverage fell to 3.8x from 9.5x and negative free cash flow
trebled to EUR634 million.

The Negative Outlook reflects Fitch's view that the structural
challenges currently faced by Stora and its peers are likely to
intensify in the next 12 months, given softening macro-economic
conditions, an increasingly likely hike in Russian export duties
on wood (January 2009) and continued cost pressure from high
fiber and energy costs.  Fitch is concerned that many of these
factors remain outside of Stora's control.

Gross debt/EBITDA weakened to 3.5x, based on LTMQ208 EBITDA,
from 2.8x at FYE07.  Fitch regards this level as weak for the
rating, in view of further forecast earnings erosion.  The ratio
weakened despite a EUR460m debt reduction from the proceeds of
the Papyrus disposal in April.  Stora's management has
reiterated its commitment to strong financial ratios.  Fitch
notes, however, that in the absence of profitability
improvements, the company will rely heavily on asset disposals
and/or capital expenditure curtailments to preserve or improve
its debt protection measures in the near- to medium-term.  Stora
has revised its guidance for FY08 capital expenditure to EUR700
million-750 million from EUR900 million but Fitch notes that
this is not sustainable in the long run as it could translate
into under-investment and a loss of competitiveness.

The downgrade also recognizes the need for further remedial
actions in the near term.  Aside from new company-specific
restructuring measures, consolidation has been identified by
management as a necessary means to restore profitability and
pricing power to satisfactory levels.  Although this should help
to address the industry's structural weaknesses, it is difficult
to execute in the current market environment.  It could result
in either positive or negative developments from a credit
perspective, depending on the form and financial impact of the
acquisition/merger.

The ratings continue to be supported by Stora's strong
diversification, its integration into fiber and energy and its
solid liquidity.  At end June 30, 2008, it had EUR489 million
cash and a fully available EUR1.4 billion syndicated facility
maturing in 2012.  Short-term capital requirements are
manageable; at end June 30, 2008, these requirements included
debt maturities of EUR265 million and dividend payments.


UPM KYMMENE: Rising Structural Weakness Cues Fitch's Rating Cuts
----------------------------------------------------------------
Fitch Ratings has downgraded Finland-based UPM Kymmene Oyj's
Long-term Issuer Default and senior unsecured ratings to 'BB+'
from 'BBB-'.  The Short-term IDR is also downgraded to 'B' from
'F3'. The Outlook on the LT IDR remains Negative.

This rating action reflects intensifying structural weaknesses
within the European pulp and paper sector, as evidenced by the
deterioration in UPM's performance and cash flow generation in
the 6 months ended 30 June 2008.  The company posted a 5.3%
year-on-year reduction in sales to EUR4.8 billion, primarily due
to lower volumes and FX effects.  EBITDA margin contracted to
13.4% from 16.4% as cost inflation and the weakening of the USD
against the euro continued to put pressure on profitability in
most paper grades.  Performance in the magazine segment improved
year-on-year as capacity closures yielded some pricing power.
This was, however, offset by margin erosion in the group's wood
products, fine paper, labels and newsprint divisions.  Cost
rationalization measures implemented across the industry have
not had the anticipated positive effect as their benefits are
absorbed by raw material and production cost increases.

UPM's coverage metrics also came under pressure in H108.  Its
funds from operations/net finance costs coverage declined to
3.9x from 6.7x and free cash flow was negative at EUR598 million
compared to a negative EUR359m in H107.

The Negative Outlook reflects Fitch's view that the structural
challenges currently faced by UPM and its peers are likely to
intensify in the next 12 months, given softening demand, an
increasingly likely hike in Russian export duties on wood
(January 2009) and the continued cost pressure from high fiber
and energy costs.  Fitch is concerned that many of these factors
remain outside of UPM's control.

Against that backdrop, interest-bearing liabilities/LTM Q208
EBITDA of 3.8x (3x at FYE07) is considered high for the rating.
Based on LTMQ208 numbers, cash from operations and capital
expenditure/interest-bearing liabilities weakened to a negative
1.1%, down from 4.5% at FYE07 and 13.3% at FYE06.  Fitch expects
these ratios to come under further pressure in the coming 12
months, as profitability continues to be impacted by the factors
cited above.  UPM has resorted to curbing capital expenditure to
preserve its free cash flow generation and debt metrics, in the
absence of earnings recovery.  Capital expenditure guidance for
FY08 is EUR500 million (or 5.1% of LTMQ208 sales), down from
EUR673 million at FYE07 (6.7%).  Fitch notes that this is not
sustainable in the long run as it could translate into under-
investment and a loss of competitiveness.

The downgrade also recognizes the need for further remedial
actions in the sector in the near term.  Aside from new company-
specific restructuring measures, consolidation has been
identified by management as a necessary means to restore
profitability and pricing power to satisfactory levels.
Although this should help to address the industry's structural
weaknesses, it is difficult to execute in the current market
environment and could result in either positive or negative
developments from a credit perspective, depending on the form
and financial impact of the merger/acquisition.

The ratings continue to be supported by UPM's leading market
position in the magazine segment, its integration into pulp and
energy and its strong liquidity.  It has two undrawn syndicated
facilities of EUR1 billion and EUR1.5 billion, maturing in 2012
and 2010, respectively.  This compares to debt maturities of
EUR391 million at FYE07 and dividend payments of EUR384 million.


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F R A N C E
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ALCATEL-LUCENT SA: CEO & Chairman to Quit from Posts
----------------------------------------------------
Alcatel-Lucent SA disclosed changes to its leadership and Board
of Directors.  The company also announced its quarterly results
and demonstrated improvements to its operational results for the
third straight quarter.  The company reported that it is making
steady progress on the strategy the company laid out last fall.

To pave the way for a fully aligned governance and management
model going forward, the company announced these changes to its
management team and Board of Directors:

    * Non-Executive Chairman Serge Tchuruk has decided to step
      down on October 1, 2008;

    * CEO Pat Russo has decided to step down no later than the
      end of the year, and at the Board's request will continue
      to run the company until a new CEO is in place to effect a
      smooth transition and maintain the continuity of the
      company's business;

    * The Board will commence a search for a new non-executive
      Chairman and CEO immediately;

    * The Board is also initiating a process to change the
      composition of the Board to a smaller group that will
      include new members.

"The merger phase is now behind us.  I am proud that Alcatel-
Lucent has become a world leader in a technology which is
transforming our society.  It is now time that the company
acquires a personality of its own, independent from its two
predecessors.  The Board must also evolve and the Chairman
should give the first example, which I have decided to do," said
Mr. Tchuruk.

"I am very pleased with the progress we are making especially in
light of a difficult market environment," said Ms. Russo.  "Our
strategy is taking hold and our results are demonstrating good
operational progress.  That said, I believe it is the right time
for me to step down.  The company will benefit from new
leadership aligned with a newly composed Board to bring a fresh
and independent perspective that will take Alcatel-Lucent to its
next level of growth and development in a rapidly changing
global market."

"I have every desire to ensure a smooth transition of leadership
within the company and I have informed the Board of my
determination to work closely with them until the end of the
year or sooner if a successor is named, and we are in agreement
on this approach. I have great confidence in Alcatel-Lucent and
believe this to be a company with tremendous potential," added
Ms. Russo.

Now that the company has moved beyond the transitional phase of
the merger, the Board has determined to restructure itself in a
way consistent with the company's needs going forward.  As part
of this process the Board will reduce the size of its membership
over time while adding several new members with strong industry
expertise.  To initiate this process, Henry Schacht announced
that he will resign from the Board immediately believing that,
being a former CEO, he should not remain beyond the transitional
stage of the merger.  Mr. Schacht was the CEO of Lucent
Technologies prior to Ms. Russo becoming CEO in January 2002.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.

                           *     *     *

Alcatel-Lucent continues to carry Ba3 Corporate Family and
Senior Debt ratings, Not-Prime for short term debt, as well as
B2 ratings for subordinated debt with negative outlook from
Moody's Investors Service.  The ratings were were affirmed in
April 2008.

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


DELPHI CORP: Appaloosa Balks at GM Joining Adversary Suit
----------------------------------------------------------
A-D Acquisition Holdings, LLC, and Appaloosa Management L.P.
oppose the participation of General Motors Corporation as party-
in-interest with respect to Delphi Corp.'s US$2,550,000,000
adversary complaint against Appaloosa and other Plan Investors.

As disclosed in the Troubled Company Reporter on July 15, 2008,
GM sought authority from the U.S. Bankruptcy Court for the
Southern District of New York to participate in the adversary
proceedings filed by Delphi Corp. against Appaloosa, Management,
L.P., et al. GM wants to participate in the proceedings as a
"party-in-interest."

Delphi's ties with Appaloosa, et al., soured after Delphi sought
funding of the US$2,825,000,000 of its US$6,100,000,000 exit
debt financing facility from General Motors, its primary
customer.  The lenders, including GM, were ready to close April
4, but the financing agreements have been terminated after
Appaloosa, et al., pulled out from their commitment to provide
US$2,550,000,000 of equity financing to Delphi.

Douglas P. Baumstein, Esq., at White & Case LLP, in New York,
says that ADAD and AMLP anchor their opposition on GM's failure
to adequately define what a "party in interest" means, given
that it seeks to participate in the adversary proceeding in a
limited capacity, yet it seeks rights afforded only to full
parties to a proceeding without undertaking the obligations of a
party.

Mr. Baumstein admits that some of the relief sought by GM is
acceptable, "but much of the relief it seeks goes well beyond
that to which a party in interest is entitled," Mr. Baunstein
says.

Mr. Baumstein anticipates that at this time, GM does not seek to
intervene in the proceedings, however, it seeks court authority
to (i) appear before the Court on any matter arising in the
Adversary Proceeding, including hearings and chamber
conferences, (ii) participate in any settlement discussions,
mediation sessions and arbitrations regarding the Adversary
Proceeding, and (iii) participate in the discovery process,
including through the review of documents produced and
attendance at depositions.

Mr. Baumstein argues that GM is not entitled to participate so
as to fully monitor the progress and status of the Adversary
Proceeding and to permit involvement in activities likely to
affect or overlap with a new plan, contrary to the relief it
seeks.  Mr. Baumstein then cites the grounds for ADAH and AMLP's
objections:

  (1) GM should only be permitted to appear in the litigation so
      long as it limits itself to the role of observer and does
      not duplicate effort or unduly burden the parties.

        It is not clear that GM is willing to limit its role, as
        GM seeks to participate in the action by appearing
        before the Court on "any matter arising in the Adversary
        Proceeding" including by appearing at the chambers'
        conferences.  This right is inconsistent with the
        monitoring function GM purports to seek.

  (2) There is no basis for GM's request to participate in any
      settlement negotiations.

        GM has articulated no concrete interest or right of its
        own that is at stake in this proceeding.  Instead, GM
        purports to seek participation on a limited basis in
        order to inform its own position in negotiations of a
        modified or new plan of reorganization that is not
        before this Court in this proceeding.

  (3) GM should not be permitted to seek discovery without first
      intervening as a party.

        The right to serve discovery requests is one reserved to
        full parties at an action, which GM is not and does not
        seek.

Harbinger Del-Auto Investment Company Ltd. and  Merrill Lynch,
Pierce, Fenner & Smith Incorporated have joined in Appaloosa's
objection.  Both parties request the Court to deny GM's motion
to participate in the adversary proceeding as party-in-interest.

                           About GM

Based 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.

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.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Allowed to Pursue US$2.55B Fraud Claim v Appaloosa
---------------------------------------------------------------
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern
District of New York denied Appaloosa Management, L.P., and
other investors' motions for dismissal of the US$2.55 billion
lawsuits filed by Delphi Corporation against them.

Delphi sued Appaloosa and seven other parties, which include
Merrill Lynch, UBS Securities and Goldman Sachs, after they
withdrew from their commitment to provide exit equity financing
for Delphi, which was supposed to exit bankruptcy in April 2008.

The David Tepper-led Appaloosa terminated their US$2.55-billion
investment agreement after Delphi allowed General Motors Corp.
to fund up to US$2,825,000,000 of its US$6,100,000,000 exit debt
financing.  Appaloosa, et al., argued that Delphi was barred
under their Equity Purchase and Commitment Agreement to enter
into transactions with GM outside the ordinary course of
business.

Appaloosa moved for the dismissal of the lawsuits, saying that
Delphi cannot seek specific performance of the Plan Investors
under the EPCA because Delphi itself cannot allege that it is
presently ready, willing  and able to perform under the EPCA.
Delphi terminated its US$6-billion debt financing agreements
with other investors after Appaloosa, et al., terminated the
EPCA on April 4.

According to The Wall Street Journal, Judge Drain ruled that
Delphi can pursue its fraud claim against Appaloosa.  Judge
Drain, according to the report, dismissed a portion of Delphi's
complaint, but he rejected most of the defendants' arguments.

Delphi said that Appaloosa defrauded the Court, the Debtors and
various stakeholders by affirmatively stating that it had every
intention of performing its obligations to the Debtors under the
EPCA when, in fact, it had no such intention.  David Tepper
testified before the Court that the Plan Investors will fully
honor their commitments, which led to the Court's approval of
Delphi's Joint Plan of Reorganization, which consummation
required the US$2.55 billion financing from the Plan Investors.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Negotiating New/Amended Plan with GM and Committee
---------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in the
bankruptcy cases of Delphi Corp. and its debtor-affiliates says
it is actively negotiating with the Debtors to reach mutually
acceptable modification of the current Joint Plan of
Reorganization of the Debtors, following Appaloosa Management,
L.P., et al.'s decision to back out from their US$2,550,000,000
exit financing agreement, and in light of the Debtors' pending
lawsuit against Appaloosa, et al.

Committee counsel Edward M. Fox, Esq., at K&L Gates, LLP, in New
York, says that if the negotiations don't achieve the
resolution, it will pursue its adversary proceeding, seeking the
revocation of the order confirming the Plan, which the Committee
says it accepted based upon the "promissory fraud of Appaloosa."

As reported in the Troubled Company Reporter on July 15, 2008,
General Motors Corp., in its request to join as party-in-
interest in Delphi's adversary proceedings against Appaloosa, et
al., said it is a major constituent of a new plan under
negotiation together with Delphi and Creditors Committee.  GM
has been asked to provide major support through financial
contributions, subsidies and loans, its counsel Michael P.
Kessler, Esq., at Weil, Gotshal & Manges LLP, in New York,
disclosed.

GM also had said its interest in participating in the
US$2,550,000,000 lawsuits is in the litigation's representation
of a significant asset of the Debtors' estates.  The terms and
conditions of a modified or new plan will depend, in part, on
the value ascribed to the litigation and the disposition of any
recoveries from the litigation, Mr. Kessler said.

                           About GM

Based 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.

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.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: WTC, Panel Wants Plan Confirmation Order Revoked
-------------------------------------------------------------
Wilmington Trust Company, as indenture trustee to
US$2,000,000,000 of notes issued by Delphi Corp. and its debtor-
affiliates, and the Official Committee of Unsecured Creditors in
the case asks the Hon. Robert Drain of the U.S. Bankruptcy Court
for the Southern District of New York to revoke his January 25,
2008 order confirming the Debtors' Joint Plan of Reorganization
after allegations that Appaloosa Management, L.P., et al., had
engaged in fraudulent conduct that would not enable Delphi to
consummate the Plan.

Wilmington Trust points out that the Court, in its July 18, 2007
order signing the EPCA, acknowledged that the Plan Investors'
investment was an "integral . . . component of the Plan."  The
Debtors, however, have been unable to emerge from bankruptcy
pursuant to the terms of the Plan after Appaloosa and other
parties terminated their commitment to provide US$2,550,000,000
in equity exit financing pursuant to the Equity Purchase and
Commitment Agreement.

On behalf of WTC, Edward M. Fox, Esq., at K&L Gates LLP, in New
York, argues the Plan Confirmation Order should be revoked,
noting that Debtors acknowledge and concede, in their lawsuits
against the Plan Investors, that the Order was procured by
fraud.

Mr. Fox notes the Debtors have alleged that ADAH defrauded the
Court, the Debtors and various stakeholders by affirmatively
stating that it had every intention of performing its
obligations to the Debtors under the EPCA when, in fact, it had
no such intention.

Aside from several agreements that expressly obligate ADAH and
the other Plan Investors to provide equity financing, Mr. Fox
notes that David Tepper, the principal of ADAH and Appaloosa, at
a Dec. 6, 2007 hearing to consider approval of amendments to the
EPCA, testified that the Plan Investors will use their
reasonable best effort to consummate the transactions.  "But in
the fact that, and the same thing I said before, you know, you
make a handshake you make a handshake, it's what it is," Mr.
Tepper said.

WTC notes that the Court, in approving the EPCA and thereafter
confirming the Plan, relied on Mr. Tepper's statements that ADAH
fully intended to honor its commitments.

Wilmington Trust is the successor indenture trustee for senior
notes and debentures issued by Delphi pursuant to an Indenture
dated as of April 28, 1999, all of which remain outstanding: (i)
US$500,000,000 in aggregate principal amount of 6.55% Notes Due
2006; (ii) US$500,000,000 in aggregate principal amount of 6.5%
Notes Due May 1, 2009; (iii) US$500,000,000 in aggregate
principal amount of 6.50% Notes Due 2013; and (iv)
US$500,000,000 in aggregate principal amount of 7.125%
Debentures Due May 1, 2029.

The Committee tells the Court that Appaloosa and its principal
David Tepper has defrauded Delphi, the Committee, all other
parties-in-interest, and the Court by making numerous promises
to remain committed to the Plan and to use its best efforts to
consummate the Plan while at the same time, covertly discussing
and then executing a strategy to ensure the Plan's demise.  For
falsely promising to be an equity investor in the reorganized
Debtors, Appaloosa has extracted from the estate and its
stakeholders in excess of US$60,000,000 in fees and millions
more in expense reimbursements, with a claim pending for another
US$82,500,000 on account of Alternative Transaction Fee.

The committee says that Appaloosa's motive was greed.  The fraud
occurred when Appaloosa made numerous promises that were untrue
about its commitment to the Plan and the emergence of the
Debtors from bankruptcy.

"Known as the "king" of "vulture investors," or those who
capitalize on distressed assets for financial gain, Appaloosa
and Mr. Tepper in particular, has amassed a fortune by investing
in companies in Chapter 11 and then realizing a healthy
financial gain as a result," the Committee states. "Although
such tactics could be hailed as reflecting shrewd business
sense, the law stops short of sanctioning them where, as here,
they are based upon fraud."

As per terms of the EPCA, Appaloosa recouped another
US$21,200,000 in commitment fees from the Debtors, for a total
of US$35,000,000 in fees even before any capital had been
committed.  Appaloosa anticipated receiving the balance of its
fees once the disclosure statement was approved, the Committee
points out.

To avoid having to comply with its promised commitments under
the August EPCA, Appaloosa stalled by using the financial
markets as an excuse to spend the next five months renegotiating
the August EPCA.  Appaloosa had no intention of living up to its
promises - it was simply using the worsening financial markets
as cover for its pre-planned exit.

By inducing Delphi, its stakeholders, and the Court to rely on
its promises, Appaloosa both secured the court approval, and
clinched multi-million dollar payday for itself, the Committee
states.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Wants Plan-Filing Deadline Extended to October 31
--------------------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to extend their
exclusive periods to:

  (a) file a plan of reorganization through and including
      Oct. 31, 2008; and

  (b) solicit acceptances of that Plan through and including
      Dec. 31, 2008.

John Wm. Butler, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Chicago, Illinois, tells the Court that on April 4,
2008, the Debtors announced that although they had met the
conditions required to substantially consummate the Plan,
including obtaining US$6,100,000,000 of exit financing, Delphi's
Plan Investors refused to participate in a closing.

As disclosed in the Troubled Company Reporter on May 7, 2007,
the Debtors obtained an extension, subject to certain
exceptions, of their exclusive right under Section 1121 of the
Bankruptcy Code to file one or more reorganization plans until
30 days after substantial consummation of the Plan and the
exclusive right to solicit and obtain acceptances for those
plans 90 days after substantial consummation of the plan by
entry of the Order Under Section 1121(d) of the Bankruptcy Code.
The Order, however, extended the Debtors' exclusive right to
file a plan, as between the Debtors and the Statutory
Committees, through and including Aug. 31, 2008, and the right
to solicit a plan, as between the Debtors and the Statutory
Committees, through and including Oct. 31, 2008, Mr. Butler
recalls.

On May 16, 2008, Delphi filed complaints for damages and
specific performance against the Plan Investors who refused to
participate in the closing that would have led to Delphi's
successful emergence from Chapter 11.  The Debtors nevertheless
continue to work with their stakeholders to achieve their goal
of emerging from Chapter 11 as soon as practicable, Mr. Butler
says.

Out of an abundance of caution and to ensure clarity with their
stakeholders, including their customers and suppliers, the
Debtors seek an extension of the Exclusive Periods to prevent
any lapse in exclusivity between the Debtors and the Statutory
Committees, Mr. Butler clarifies.

Mr. Butler explains that a further extension of the Exclusive
Periods, Mr. Butler says, is justified by the significant
progress the Debtors have made toward emerging from Chapter 11.
After obtaining confirmation of the First Amended Plan, the
Debtors secured exit financing and met all other conditions to
the effectiveness of the Plan and Investment Agreement and were
prepared to emerge from Chapter 11.

Since April 30, 2008, Mr. Butler notes, the Debtors have
continued to make progress toward emerging from Chapter 11 in
three major areas:

  (i) The Debtors have engaged in a reaffirmation process with
      respect to the business plan contained in the Disclosure
      Statement.  That process includes an analysis, among other
      things, of the impact of an unprecedented increase in
      global commodity costs and reduction of projected North
      American automobile industry production volumes;

(ii) The Debtors have explored their exit financing
      possibilities in capital markets that remain turbulent;
      and

(iii) The Debtors have entered into complex negotiations with
      the Statutory Committees and General Motors Corp. with
      respect to potential modifications of the Plan that will
      enable Delphi to emerge from chapter 11 as soon as
      reasonably practicable, thereby moving forward so that the
      Debtors can focus solely on their business operations and
      mitigate the damages caused by the Plan Investors.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


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


AGB PLANUNGSGRUPPE: Claims Registration Period Ends Aug. 8
----------------------------------------------------------
Creditors of AGB Planungsgruppe Bau GmbH  have until Aug. 8,
2008, to register their claims with court-appointed insolvency
manager Anna Kuleba.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Sept. 4, 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 Osnabrueck
         Branch N 301
         Kollegienwall 10
         49074 Osnabrueck
         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:

         Anna Kuleba
         Niedersachsenstr. 14
         49074 Osnabrueck
         Germany
         Tel: 0541/3245499
         Fax: 0541/3245496
         E-mail: a.kuleba@kuhmann.eu
         Web site: http://www.kuhmann.eu/

The District Court of Osnabrueck opened bankruptcy proceedings
against AGB Planungsgruppe Bau GmbH on July 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         AGB Planungsgruppe Bau GmbH
         Attn: Ulrich Bergjans, Manager
         Westerhausener Strasse 78
         49324 Melle
         Germany


AMERICAN AXLE: Posts US$644.3 Million Net Loss for 2nd Qtr 2008
---------------------------------------------------------------
American Axle & Manufacturing Holdings Inc. reported a net loss
of US$644.3 million for the second quarter ended June 30, 2008,
compared with net income of US$34.6 million in the same period
last year.

Net sales were US$490.5 million in the second quarter of 2008 as
compared to US$916.5 million in the second quarter of 2007.
Sales in the second quarter of 2008 were adversely affected by
the 87-day International UAW strike as well as a reduction in
consumer demand for the company's major full-size truck and SUV
programs for GM and Chrysler and the company's mid-size light
truck and SUV programs for GM.

On Feb. 25, 2008, the International United Automobile, Aerospace
and Agricultural Implement Workers of America (UAW) called a
strike at the company's original five facilities in Michigan and
New York upon expiration of the four-year master labor agreement
between the company and the International UAW.  The strike was
resolved on May 23, 2008, when UAW represented associates at
these locations ratified the master and local labor agreements.

The company estimates the adverse impact of the strike on net
sales in the second quarter of 2008 was US$274.9 million.

Gross profit (loss) was a loss of US$527.9 million in the second
quarter of 2008 as compared to profit of US$113.7 million in the
second quarter of 2007.  Gross margin was negative 107.6% in the
second quarter of 2008 as compared to 12.4% in the second
quarter of 2007.  The decrease in gross profit and gross margin
in the second quarter of 2008 reflects the impact of the
International UAW strike, lower sales, and special charges and
other non-recurring operating costs totaling US$517.8 million.

The special charges and other non-recurring operating costs
include US$131.2 million for the Special Separation Program
(SSP) offered to all UAW represented associates at the company's
original locations, US$6.1 million in termination benefits for
associates represented by the International Association of
Machinists, US$329.9 million in asset impairments, indirect
inventory obsolescence and idled leased assets, US$19.1 million
for signing bonuses, US$18.0 million relating to supplemental
unemployment benefits to be payable to current UAW represented
associates during the new labor agreements, a US$6.4 million
special charge for salaries workforce reductions, and
US$7.4 million for plant closure costs and charges.

Gross profit in the second quarter 2007 includes US$7.0 million
in special charges, primarily related to attrition program
activity.

Operating income (loss) was a loss of US$572.8 million in the
second quarter of 2008 as compared to income of US$59.5 million
in the second quarter of 2007.  Operating margin was negative
116.8% in the second quarter of 2008 as compared to 6.5% in the
second quarter of 2007.  The company estimates the reduction in
operating income resulting from the strike in the second quarter
of 2008 to be US$86.6 million.

Income tax expense was US$59.1 million in the second quarter of
2008 as compared to US$5.3 million in the second quarter of
2007.

Net cash used in operating activities in the second quarter of
2008 was US$84.2 million as compared to net cash provided by
operating activities of US$224.8 million in the same period last
year.  Capital spending for the second quarter of 2008 was
US$33.6 million as compared to US$33.0 million in the second
quarter of 2007.  Reflecting the impact of this activity and
dividend payments of US$8.2 million, the company's free cash
flow use of US$123.7 million in the second quarter of 2008
compared to US$183.8 million of positive free cash flow in the
second quarter of 2007.

The company's results in the first half of 2008 were a net loss
of US$671.3 million.  This compares to net earnings of
US$50.3 million in the second half of 2007.  Net sales in the
first half of 2008 were US$1.1 billion as compared to
US$1.7 billion in the first half of 2007.  The company's
operating loss in the first half of 2008 was US$609.5 million as
compared to operating income of US$95.9 million for the first
half of 2007.  For the first half of 2008, the company estimates
the reduction in sales and operating income resulting from the
International UAW strike to be US$414.0 million and US$129.4
million, respectively.

                         Balance Sheet

At June 30, 2008, the company's consolidated balance sheeet
showed US$2.5 billion in total assets, US$2.2 billion in total
liabilities, and US$315.3 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2008, are available
for free at http://researcharchives.com/t/s?301b

                      About American Axle

Headquartered in Detroit, Michigan, American Axle &
Manufacturing Holdings Inc. (NYSE: AXL) -- http://www.aam.com/
-- is a world leader in the manufacture, engineering, design and
validation of driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed
products for trucks, sport utility vehicles, passenger cars and
crossover utility vehicles.  In addition to locations in the
United States (Michigan, New York, Ohio and Indiana), the
company also has offices or facilities in Brazil, China,
Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea,
Thailand and the United Kingdom.

                         *     *     *

As reported in the Troubled Company Reporter on June 30, 2008,
Moody's Investors Service lowered American Axle & Manufacturing
Holdings Inc.'s Corporate Family Rating to B1 from Ba3, as well
as the senior unsecured rating to B1 from Ba3 on American Axle &
Manufacturing Inc.'s notes and term loan.  The outlook is
stable.  The Speculative Grade Liquidity Rating also has been
lowered to SGL-3 from SGL-2.


ASST SICHERUNGSANLAGENVERTRIEBS: Claims Registration Ends Aug. 7
----------------------------------------------------------------
Creditors of ASST Sicherungsanlagenvertriebs GmbH have until
Aug. 7, 2008, to register their claims with court-appointed
insolvency manager Hermann Berding.

Creditors and other interested parties are encouraged to attend
the meeting at 2:20 p.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 Delmenhorst
         Hall 2
         Branch 1
         Cramerstrasse 183
         27749 Delmenhorst
         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:

         Hermann Berding
         Jammertal 1D
         49661 Cloppenburg
         Germany
         Tel: 04471/91260
         Fax: 04471/82997

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

The Debtor can be reached at:

         ASST Sicherungsanlagenvertriebs GmbH
         Aschenstedter Str. 27
         27801 Doetlingen
         Germany


AUTODOM AUGSBURG: Claims Registration Period Ends August 7
----------------------------------------------------------
Creditors of Autodom Augsburg GmbH have until Aug. 7, 2008, to
register their claims with court-appointed insolvency manager
Rainer U. Mueller.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Sept. 9, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Augsburg
         Meeting Hall 162
         Alten Einlass 1
         86150 Augsburg
         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:

         Rainer U. Mueller
         Schiesstattenstr. 15
         86159 Augsburg
         Germany

The District Court of Augsburg opened bankruptcy proceedings
against Autodom Augsburg GmbH on June 9, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

        Autodom Augsburg GmbH
        Max-von-Laue-Str. 14 u. 16
        86156 Augsburg
        Germany


DIES' PLAY: Claims Registration Period Ends August 6
---------------------------------------------------
Creditors of DIES' PLAY Handelsgesellschaft mbH have until
Aug. 6, 2008, to register their claims with court-appointed
insolvency manager Stephan Mitlehner.

Creditors and other interested parties are encouraged to attend
the meeting at 10:25 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 Meiningen
         Meeting Hall A 0208
         Lindenallee 15
         98617 Meiningen
         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:

         Stephan Mitlehner
         Walter-Benjamin-Platz 6
         10629 Berlin-Charlottenburg
         Germany

The District Court of Meiningen opened bankruptcy proceedings
against DIES' PLAY Handelsgesellschaft mbH on June 10, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         DIES' PLAY Handelsgesellschaft mbH
         Landsbergblick 23
         98617 Meiningen
         Germany


ELKA TOYS: Claims Registration Period Ends August 6
---------------------------------------------------
Creditors of ELKA toys GmbH have until Aug. 6, 2008, to register
their claims with court-appointed insolvency manager Goerge
Scheid.

Creditors and other interested parties are encouraged to attend
the meeting at 10:50 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 Meiningen
         Meeting Hall A 0105
         Lindenallee 15
         98617 Meiningen
         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:

         Goerge Scheid
         Anger 10
         99084 Erfurt
         Germany

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

The Debtor can be reached at:

         ELKA toys GmbH
         Attn: Christian Murrmann, Manager
         Gewerbegebiet 1
         96524 Foeritz
         Germany


ELTEGA GMBH: Claims Registration Period Ends August 6
-----------------------------------------------------
Creditors of ELTEGA GmbH have until Aug. 6, 2008, to register
their claims with court-appointed insolvency manager Andreas
Kienast.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Magdeburg
         Hall 13
         Breiter Weg 203-206
         39104 Magdeburg
         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:

         Andreas Kienast
         Lennestr. 10
         39112 Magdeburg
         Germany
         Tel: 0391/5973322
         Fax: 0391/5973333

The District Court of  Magdeburg opened bankruptcy proceedings
against ELTEGA GmbH on June 12, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         ELTEGA GmbH
         Speicherstr. 23
         39106 Magdeburg
         Germany

         Attn: Bjoern Woelfer, Manager
         Uhlandstr. 8
         39108 Magdeburg
         Germany


HANITEK HANDELS: Claims Registration Period Ends August 6
---------------------------------------------------------
Creditors of HANITEK Handelsgesellschaft mbH have until Aug. 6,
2008, to register their claims with court-appointed insolvency
manager Herbert Duerkop.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Aug. 27, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         Fourth Floor
         Sievkingplatz 1
         20355 Hamburg
         Germany

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

The insolvency manager can be reached at:

         Herbert Duerkop
         Neuer Wall 86
         20354 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against  HANITEK Handelsgesellschaft mbH on June 3, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         HANITEK Handelsgesellschaft mbH
         Attn: Mohammad Reza Hatami, Manager
         Heegbarg 12
         22391 Hamburg
         Germany


HENRIKSEN TRANSPORT: Claims Registration Period Ends August 6
-------------------------------------------------------------
Creditors of Henriksen Transport GmbH  have until Aug. 6, 2008,
to register their claims with court-appointed insolvency manager
Jan H. Wilhelm.

Creditors and other interested parties are encouraged to attend
the meeting at 11:27 a.m. on Aug. 27, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Flensburg
         Hall A 220
         Flensburg
         Germany

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

The insolvency manager can be reached at:

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

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

The Debtor can be reached at:

         Henriksen Transport GmbH
         Attn: Kurt Nielsen
         Gewerbepark 20
         24983 Handewitt
         Germany


HR DIVITEC: Claims Registration Period Ends August 7
----------------------------------------------------
Creditors of HR Divitec GmbH have until Aug. 7, 2008, to
register their claims with court-appointed insolvency manager
Dr. Norbert Westhoff.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 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 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:

         Dr. Norbert Westhoff
         Adenauerplatz 4
         33602 Bielefeld
         Germany

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

The Debtor can be reached at:

         HR Divitec GmbH
         Graf-von-Stauffenberg-Str. 1
         33615 Bielefeld
         Germany


MAGDEBURGER PROJEKTENTWICKLUNGS: Claims Registration Ends Aug. 7
----------------------------------------------------------------
Creditors of Magdeburger Projektentwicklungs-gesellschaft mbH
have until Aug. 7, 2008, to register their claims with court-
appointed insolvency manager Heiko Rautmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 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 Magdeburg
         Hall D
         Insolvency Department
         Liebknechtstrasse 65-91
         39110 Magdeburg
         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:

          Heiko Rautmann
          Editharing 31
          39108 Magdeburg
          Germany
          Tel: 0391/5066030
          Fax: 0391/5066033
          E-mail: Heiko.Rautmann@gmx.de

The District Court of Magdeburg opened bankruptcy proceedings
against Magdeburger Projektentwicklungs-gesellschaft mbH on
June 23, 2008.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be reached at:

         Magdeburger Projektentwicklungs-gesellschaft mbH
         Hoher Weg 7
         39576 Stendal
         Germany


MASSWERK BAU: Claims Registration Period Ends August 7
------------------------------------------------------
Creditors of Masswerk Bau- und Planungsgesellschaft mbH have
until Aug. 7, 2008, to register their claims with court-
appointed insolvency manager Dr. Joerg Gollnick.

Creditors and other interested parties are encouraged to attend
the meeting at 10:05 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 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:

        Dr. Joerg Gollnick
        Friesenplatz 17A
        50672 Cologne
        Germany

The District Court of Cologne opened bankruptcy proceedings
against Masswerk Bau- und Planungsgesellschaft mbH on June 16,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Masswerk Bau- und Planungsgesellschaft mbH
         Merheimer Str. 149a
         50733 Cologne
         Germany


POWER GETRANKE: Claims Registration Period Ends August 6
--------------------------------------------------------
Creditors of Power Getranke GmbH have until Aug. 6, 2008, to
register their claims with court-appointed insolvency manager
Joerg Wenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 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 Frankfurt (Oder)
         Hall 401
         Muellroser Chaussee 55
         15236 Frankfurt (Oder)
         Germany

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

The insolvency manager can be reached at:

         Joerg Wenzel
         Grossbeerenstrasse 231
         14480 Potsdam
         Germany

The District Court of Frankfurt (Oder) opened bankruptcy
proceedings against Power Getranke GmbH on June 23, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Power Getranke GmbH
         Rosengartener Str. 7
         15234 Frankfurt (Oder)
         Germany


SABIM HANDEL: Claims Registration Period Ends August 7
------------------------------------------------------
Creditors of SABIM Handel & Agentur GmbH have until August 7,
2008, to register their claims with court-appointed insolvency
manager Hermann Berding.

Creditors and other interested parties are encouraged to attend
the meeting at 2:25 p.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 Delmenhorst
         Hall 2
         Branch 1
         Cramerstrasse 183
         27749 Delmenhorst
         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:

         Hermann Berding
         Jammertal 1
         D 49661 Cloppenburg
         Germany
         Tel: 04471/91260
         Fax: 04471/82997

The District Court of Delmenhorst opened bankruptcy proceedings
against SABIM Handel & Agentur GmbH on June 18, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         SABIM Handel & Agentur GmbH
         Attn: Christian Georg Hoppert, Manager
         Muehlenbergweg 18 A
         27243 Kirchseelte
         Germany


SPECTRUM BRANDS: Moody's Holds B1 Rating to US$50MM LC Facility
---------------------------------------------------------------
Moody's Investors Service, on July 22, 2008, inadvertently
withdrew its B2 rating on Spectrum Brands' US$50 million
synthetic letter of credit facility.  Rather than being
withdrawn, the synthetic LOC should have been upgraded to B1,
consistent with the upgrade on Spectrum's secured credit
facility.  The rating action has no impact on any other rating
or LGD assessment/point estimate, all of which are affirmed.

This rating was reinstated and upgraded and assessment revised
as:

   -- US$50 million synthetic letter of credit facility due 2013
      to B1 (LGD 2, 13%) from B2 (LGD2, 29%);

These ratings were affirmed and assessments revised:

   -- Corporate family rating at Caa1;
   -- Probability-of-default rating at Caa2;

   -- US$700 million 7.375% senior subordinated bonds due 2015
      at Caa3 (LGD4, 62%);


   -- US$350 million variable rate toggle senior subordinated
      notes due 2013 at Caa3 (LGD4, 62%); and

   -- US$1.55 billion senior secured credit facility due 2013 at
      B1 (LGD 2, 13%)

Headquartered in Atlanta, Georgia, Spectrum Brands, Inc. is a
global consumer products company with a diverse product
portfolio that includes consumer batteries, lawn and garden
chemicals, household insect control products, and electric
shaving and grooming equipment.  The company manufactures
batteries, home and garden chemicals, and specialty pet supplies
at 52 manufacturing facilities located in the U.S., Europe,
Latin America, and China while rechargeable batteries, electric
shaving and grooming equipment, and portable lighting products
are mostly sourced from third party suppliers located in China
and Japan.  Spectrum reported sales of over US$2 billion for the
12 months ended March 2008.


TIMTEC INGENIEURHOLZBAU: Creditors Meeting Slated for August 8
--------------------------------------------------------------
The court-appointed insolvency manager for TIMTEC
Ingenieurholzbau GmbH, Hartwig Albers, will present his first
report on the Company's insolvency proceedings at a creditors'
meeting at 9:45 a.m. on Aug. 8, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 9:30 a.m. on Nov. 14, 2008, at the same
venue.

Creditors have until Sept. 17, 2008, to register their claims
with the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Hartwig Albers
         Luetzowstr. 100
         10785 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy
proceedings against TIMTEC Ingenieurholzbau GmbH on
June 16, 2008. Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         TIMTEC Ingenieurholzbau GmbH
         Am Plan 15
         15831 Grossbeeren
         Germany


TOX-EX FACILITY: Claims Registration Period Ends August 7
---------------------------------------------------------
Creditors of tox-ex Facility-Management GmbH have until
Aug. 7, 2008, to register their claims with court-appointed
insolvency manager Horst Piepenburg.

Creditors and other interested parties are encouraged to attend
the meeting at 12:00 p.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 Kleve
         Meeting Hall D 173
         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:

         Horst Piepenburg
         Heinrich-Heine-Allee 20
         40213 Duesseldorf
         Germany
         Tel: 0211492240
         Fax: 02114922487

The District Court of Kleve opened bankruptcy proceedings
against tox-ex Facility-Management GmbH on July 18, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         tox-ex Facility-Management GmbH
         Carl-Zeiss-Strasse 38
         47445 Moers
         Germany

         Attn: Monika Krause, Manager
         Osteroder Strasse 53
         47259 Duisburg
         Germany


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


MAGNOLIA FINANCE II: Moody's Rates Class E US$6.4MM Notes Ba2
-------------------------------------------------------------
Moody's Investors Service affirmed the ratings of two tranches
of Notes issued by Magnolia Finance II plc series 2007-2 as:

   -- Class D, US$67,840,000, Variable Floating Rate Notes Due
      2052, affirmed at Baa3

   -- Class E, US$6,400,000, Variable Floating Rate Notes Due
      2052, affirmed at Ba2

Moody's is affirming the Notes above due to overall stable pool
performance.

Magnolia Finance II plc series 2007-2 is a collateralized debt
obligation backed by a portfolio of synthetic CMBS securities.
Currently, the transaction has an aggregate credit default swap
notional amount of US$74.2 million, the same as at issuance.
The total return swap and credit default swap counterparty is
Credit Suisse, Cayman Islands Branch (parent Credit Suisse,
senior unsecured Aa1; short term P-1, stable outlook).

The reference portfolio of CMBS securities are from pools
securitized in 2005 (42.2%) and 2006 (57.8%).

The rating action reflects Moody's evaluation of the expected
loss associated with the Notes based on the current credit
quality on the underlying reference obligations considering the
reduced time to maturity and the senior unsecured ratings of the
swap counterparty and the total return swap counterparty.


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


DANA CORP: Appoints Keith Wandell as Board of Directors Member
--------------------------------------------------------------
Keith E. Wandell, president and chief operating officer of
Johnson Controls, Inc. has been appointed to the Dana Holding
Corporation Board of Directors, Executive Chairman John Devine
disclosed.

"Over the past two decades, Keith has been instrumental in the
exceptional growth and success at Johnson Controls," Mr. Devine
said.  "We welcome the operational experience and leadership
perspective he will bring to Dana's Board of Directors."

Mr. Wandell, 58, joined Johnson Controls, a global, diversified,
multi-industrial company, in 1988.  He began his Johnson
Controls career as plant manager of the company's Toledo, Ohio,
battery division facility.  Mr. Wandell subsequently advanced
through a number of increasingly significant positions within
the division, including director of materials and distribution,
vice president of operations, and general manager of the battery
and automotive divisions.  From 1997 to 2003, he served as
president of the battery division.  In 2003, Mr. Wandell was
named executive vice president of the automotive business.  In
2006, he was promoted to his current role of president and chief
operating officer, with responsibility for the company's three
businesses: Automotive Experience, Building Efficiency, and
Power Solutions.

Mr. Wandell earned a Bachelor of Science degree in business
administration from Ohio University, and a master's degree in
business administration from the University of Dayton.  He is
past vice chairman of the Michigan Minority Business Development
Council and is a director for several Johnson Controls joint
ventures.

Mr. Wandell will serve on the Nominating and Corporate
Governance Committee of the Dana Board.

                      Financials Webcast

Dana Holding Corporation will announce its 2008 second-quarter
and six-month financial results on Thursday, Aug. 7, 2008.  At
10 a.m. ET, on that date, Executive Chairman John Devine, Chief
Executive Officer Gary Convis, and Executive Vice President and
Chief Financial Officer Jim Yost will host a conference call and
supporting Web cast to discuss these results and answer related
questions.

Participants may listen to the audio portion of the conference
call either through audio streaming online or by telephone.
Slide viewing is only available online via a link provided on
the Dana investor Web site:

http://phx.corporate-ir.net/phoenix.zhtml?c=66043&p=irol-irhome

To dial into the conference call, domestic locations should call
1-888- 311-4590 (Conference I.D. # 55462661).  International
locations should call 1-706-758-0054 (Conference I.D.
#55462661).  Please ask for the Dana Holding Corporation
Financial Webcast and Conference Call. Phone registration will
be available beginning at 9:30 a.m. ET.

An audio recording of this conference call will be available
after 5 p.m. ET on August 7.  To access this recording, please
dial 1-800-642-1687 (U.S. or Canada) or 1-706-645-9291
(international) and enter the conference I.D. number 55462661.

A Web cast replay will also be available after 5 p.m. ET on
August 7.  This replay may be accessed via the Dana investor Web
site.

                          About DANA

Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies.  Dana
employs 46,000 people in 28 countries.  Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represens the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.

The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008.  Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.

(Dana Corporation Bankruptcy News, Issue No. 79; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Dana Holding Corp. following the company's
emergence from Chapter 11 on Feb. 1, 2008.  The outlook is
negative.  At the same time, Standard & Poor's assigned Dana's
US$650 million asset-based loan revolving credit facility due
2013 a 'BB+' rating (two notches higher than the corporate
credit rating) with a recovery rating of '1', indicating an
expectation of very high recovery in the event of a payment
default.  In addition, S&P assigned a 'BB' bank loan rating to
Dana's US$1.43 billion senior secured term loan with a recovery
rating of '2', indicating an expectation of average recovery.

The TCR reported on Feb. 18, 2008, that Moody's Investors
Service affirmed the ratings of the reorganized Dana Holding
Corporation as: Corporate Family Rating, B1; Probability of
Default Rating, B1.  In a related action, Moody's affirmed the
Ba3 rating on the senior secured term loan and raised the rating
on the senior secured asset based revolving credit facility to
Ba2 from Ba3.  The outlook is stable.  The financing for the
company's emergence from Chapter 11 bankruptcy protection has
been funded in line with the structure originally rated by
Moody's in a press release dated Jan. 7, 2008.


DANA CORP: Visteon Insists on US$9.8MM Claim for Product Recall
---------------------------------------------------------------
Visteon Corporation insists that it is entitled to the payment
of US$9,800,000 as a result of the 2003 product recall of
vehicles manufactured by Ford Motor Company, which contained air
filters produced by Dana Corp. and its debtor-affiliates.

As disclosed in the Troubled Company Reporter on July 4, 2008,
the Reorganized Debtors ask the U.S. Bankruptcy Court for the
Southern District of New York to disallow Visteon Corporation's
Claim No. 15037, asserting a US$9,800,000 reimbursement for
Visteon's purported losses related to a vehicle recall by Ford.

Michael C. Hammer, Esq., at Dickinson Wright PLLC, in Ann Arbor,
Michigan, asserts that further evidence will show that Visteon
suffered damages aggregating US$9,800,000 as a result of the
unauthorized change in the properties used in the manufacture of
the air filters, which lead to the recall.

Mr. Hammer relates that from 2002 to 2004, one of the
Reorganized Debtors' affiliate, Wix-Helsa Filtration
Technologies, Inc., sold to Visteon engine air filters treated
with a proprietary resin compound coating for use in certain of
Visteon's air induction systems supplied to Ford.  In 2004, Wix-
Helsa was sold to AAG OPCO Corp., which later became Affinia
Group.  The Affinia Entities assumed the obligations and
liabilities of the Reorganized Debtors with respect to the
contracts with Visteon.

According to Mr. Hammer, the contracts prohibited the Debtors
from making any change in the design and processing of the air
filters unless otherwise instructed by Visteon.  The contracts
also required the Debtors to conform to the quality control
standards and inspection system at the time of sale and
delivery, which Visteon and its customer Ford have established.
However, Mr. Hammer relates that the Debtors changed the
production process, materials and performance characteristics of
the air filters without notice or approval by Visteon.  Sometime
in 2003, Ford began receiving complaints about under hood fires
in certain of its vehicles using the Air Filters.

Despite the Debtors' repeated denials that it did not make any
changes to the air filter, in January 2004, they disclosed to
Visteon that they changed the air filter paper material
manufacturing and treatment process including the resin package
resulting in an increase in the sodium content of the air filter
paper, Mr. Hammer further relates.  The change caused the air
filter paper to smolder causing under hood fires in certain Ford
vehicles.

Mr. Hammer tells the Court that the Affinia Entities maintain
that they have not assumed the air filter contracts and
therefore are not liable with respect to the recall.
Accordingly, Visteon asserts that the Reorganized Debtors are
liable for the recall damages.

For the reasons stated, Visteon asks the Court to allow its
claim.

                  Preferred Stock Dividend

The Board of Directors of Dana Holding Corporation authorized
the payment of a dividend to shareholders of 4.0% Series A
Convertible Preferred Stock and 4.0% Series B Convertible
Preferred Stock.  A cash payment of US$1.00 per share for the
period from June 1, 2008, through Aug. 31, 2008, will be payable
on Sept. 2, 2008, to preferred shareholders of record at the
close of business on Aug. 1, 2008.

                          About DANA

Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies.  Dana
employs 46,000 people in 28 countries.  Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represens the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.

The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008.  Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.

(Dana Corporation Bankruptcy News, Issue No. 79; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Dana Holding Corp. following the company's
emergence from Chapter 11 on Feb. 1, 2008.  The outlook is
negative.  At the same time, Standard & Poor's assigned Dana's
US$650 million asset-based loan revolving credit facility due
2013 a 'BB+' rating (two notches higher than the corporate
credit rating) with a recovery rating of '1', indicating an
expectation of very high recovery in the event of a payment
default.  In addition, S&P assigned a 'BB' bank loan rating to
Dana's US$1.43 billion senior secured term loan with a recovery
rating of '2', indicating an expectation of average recovery.

The TCR reported on Feb. 18, 2008, that Moody's Investors
Service affirmed the ratings of the reorganized Dana Holding
Corporation as: Corporate Family Rating, B1; Probability of
Default Rating, B1.  In a related action, Moody's affirmed the
Ba3 rating on the senior secured term loan and raised the rating
on the senior secured asset based revolving credit facility to
Ba2 from Ba3.  The outlook is stable.  The financing for the
company's emergence from Chapter 11 bankruptcy protection has
been funded in line with the structure originally rated by
Moody's in a press release dated Jan. 7, 2008.


PARMALAT SPA: Citigroup Trial to Proceed to Jury Verdict
--------------------------------------------------------
Parmalat S.p.A. communicates that Judge Harris of Bergen County
Superior Court has denied Citigroup's motion for a directed
verdict dismissing the claims asserted by the company.

This means that the trial will proceed to a jury verdict.

                        About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  On June 21, 2007, the U.S. Court granted
Parmalat permanent injunction.


TISCALI SPA: Unit Inks Partnership Agreement with Aastra Italia
--------------------------------------------------------------
Tiscali Business Services, the business unit of Tiscali S.p.A.
dealing with products and services dedicated to public and
private companies, and Aastra Italia have signed a partnership
agreement to offer converged communication services to Italian
SMEs.

The aim of the partnership is also to offer a "turnkey" service
to SMEs, where connectivity, telephone systems and other
customer premises equipment are purchased by the client through
a recurring monthly fee.  The offer will simplify the
procurement processes of client companies, that will be able to
defer the payment, keeping their monthly expenditure under
control.

From this point of view, Tiscali Business recently launched
OfficeOne Special, a service that puts together connectivity,
traditional voice and VOIP, leaving freedom to the client
company to keep the existing switchboard or buy a new generation
system.

The Ascotel IntelliGate 150/300 system by Aastra Italia is the
perfect complement for Tiscali OfficeOne Special.  The Ascotel
IntelliGate 150/300 system can manage up to 50 users and
includes VoIP capabilities, integration with cordless DECT
telephones, courtesy services, music on hold and Voice Mail for
each user.  Its hybrid technology allows to enforce traditional
telephone services (analogue, ISDN) and voice communication
through data networks (VoIP).

                         About Tiscali

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

Tiscali posted consecutive net losses for the past years: EUR5.5
million in 1999, EUR101 million in 2000, EUR1.66 billion in
2001, EUR593.1 million in 2002, EUR242.4 million in 2003,
EUR131.8 million in 2004, EUR12.9 million in 2005, and EUR103.6
million in 2006.  It posted EUR3.88 million in net losses on
EUR614.33 million in net revenues for the nine months ended
Sept. 30, 2007.

                         *     *     *

Tiscali S.p.A. continues to carry Standard & Poor's Ratings
Services' B+ long-term corporate credit rating.  The rating was
previously at B and was raised by S&P to its current level in
February 2008.


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


ALDA VOSTOK: Creditors Must File Claims by September 10
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Alda Vostok insolvent.

Creditors have until Sept. 10, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Gorky Str. 10-1
         Zatobolsk
         Kostanai
         Kazakhstan


EURO PLAST: Claims Deadline Slated for September 10
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Karaganda Plant Euro Plast insolvent.

Creditors have until Sept. 10, 2008, to submit written proofs of
claims to:

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


INTER CHANCE: Claims Filing Period Ends September 3
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Company Inter Chance insolvent.

Creditors have until Sept. 3, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Gogol Str. 177a
         Kostanai
         Kazakhstan


ITALYANSKY DOM: Creditors' Claims Due on September 3
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Italian Fashion House Italyansky Dom Mody insolvent
on June 10, 2008.

Creditors have until Sept. 3, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Butin Str. 44
         Micro District Taugul-3
         050052, Almaty
         Kazakhstan
         Tel: 8 (7272) 39-15-60
              8 777 223 07-71
              8 705 203 30-32


KAZ EXPO: Claims Registration Ends September 3
----------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Kaz Expo Center 2007 insolvent.

Creditors have until Sept. 3, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Gogol Str. 177a
         Kostanai
         Kazakhstan


KUAT GRADSTROY: Creditors Must File Claims by September 3
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Kuat Gradstroy Almaty insolvent on June 12, 2008.

Creditors have until Sept. 3, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Butin Str. 44
         Micro District Taugul-3
         050052, Almaty
         Kazakhstan
         Tel: 8 (7272) 39-15-60
              8 777 223 07-71
              8 705 203 30-32


MAKSIMUM LLP: Claims Deadline Slated for September 11
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Agency Maksimum insolvent on June 17, 2008.

Creditors have until Sept. 11, 2008, to submit written proofs.

Inquiries can be addressed to 8 701 326 50-46, 8 701 255 64-22.


OSSEK LLP: Claims Filing Period Ends September 11
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Kazakh-Czech Company Ossek insolvent.

Creditors have until Sept. 11, 2008, to submit written proofs.

Inquiries can be addressed to 8 701 326 50-46, 8 701 255 64-22.


REM SNUB: Creditors' Claims Due on September 3
----------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Rem Snub Stroy insolvent.

Creditors have until Sept. 3, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Myzy Str. 29-77
         Ust-Kamenogorsk
         070019, East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 57-77-29


SOUZ MET SERVICE: Claims Registration Ends September 10
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Souz Met Service insolvent.

Creditors have until Sept. 10, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Gorky Str. 10-1
         Zatobolsk
         Kostanai
         Kazakhstan


* KAZAKHSTAN: S&P Affirms Bank Industry Country Risk Assessment
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its Banking
Industry Country Risk Assessment (BICRA) on Kazakhstan in Group
8.  At the same time, S&P affirmed its estimate of the incidence
of gross problematic assets (GPAs) in the Kazakh financial
system under a reasonable, but not catastrophic, scenario of
economic recession at 35%-50%.

"The ongoing severe banking market readjustment in Kazakhstan
since August 2007 is the consequence of challenges related to
the rapid growth of Kazakh banks in the last decade, their high
dependence on foreign financing, concentration risks, and weak
risk management, plus the substantial dollarization of loans
and deposits in Kazakhstan, insufficient regulatory responses,
and other structural weaknesses," said S&P's credit analyst
Ekaterina Trofimova.  "All these are long-standing concerns of
Standard & Poor's, reflected in our BICRA and GPA estimate on
Kazakhstan."

These concerns are partly mitigated by the domestic economy's
continued, albeit slower, expansion; high commodity prices,
which constitute the country's main liquidity and expansion
driver; support from the authorities and shareholders; fairly
advanced regulatory framework; banks' adequate stress and asset
liability management; demonstrated, albeit vulnerable, revenue
and liquidity resilience; and still high, but unsustainable,
earning margins.

"As painful as this correction is in the short term, it should
be healthy for the financial sector in the long term, leading
to more sustainable business strategies, better developed
domestic funding, and more conservative financial profiles,"
said Ms. Trofimova.

Kazakh banks have entered a new phase as the market turbulence
lingers on, with asset quality becoming a determinant factor in
their creditworthiness, solvency, liquidity, and in the longer-
term health of the banking system.

S&P estimates "loans under stress" at 15%-20% for the banking
sector and think that this is unlikely to get close to the
upper end of the current GPA assessment, even if asset quality
woes have not peaked yet ("Credit FAQ: Asset Quality Has Become
The Critical Factor For The Health Of Kazakh Banks And Banking
System," published June 30, 2008, on RatingsDirect).

"If we see no signs of recovery -- or at least stabilization --
in asset quality at banks and of an improvement in their
ability to absorb losses, recognize credit losses, and raise
the capital they need, we could downgrade our BICRA and GPA
assessment in the next couple of quarters," added Ms. Trofimova.

S&P sees no material, sustainable signs of sector recovery yet.
Reduced liquidity and credit availability have pressured asset
quality, which is itself a source of further disruption to the
sector.

"After a sizable liquidity contraction in Kazakhstan between
August and December 2007, conditions have slightly improved
since early 2008 and are currently less dire.  However, asset
quality problems are now likely to pose a threat to banks'
liquidity and repayment profiles," said Ms. Trofimova.

S&P continues classifying Kazakhstan as "interventionist" with
regard to potential government support toward systemically
important banks under stress ("External Support Key In Rating
Private Sector Banks Worldwide," published Feb. 27, 2007, on
RatingsDirect).  S&P considers the top three banks,
Kazkommertsbank (JSC) (BB/Negative/B), BTA Bank J.S.C.
(B/Negative/B), and Halyk Savings Bank of Kazakhstan
(BB+/Negative/B), as systemically important and factors one
notch of support into their ratings for government support.

The BICRA reflects the strengths and weaknesses of a country's
banking system relative to those in other countries.  BICRAs
classify countries into 10 groups ranging from the strongest
banking systems (Group 1) to the weakest (Group 10) from the
perspective of country risk. Other countries included in
Group 8 are Argentina, Egypt, Indonesia, Philippines, Russia,
and Romania.  Comparable countries in the same 35%-50% GPA
range are Thailand, China, Indonesia, Russia, and Romania.


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


ALIP STROY: Creditors Must File Claims by September 4
-----------------------------------------------------
LLC Construction Company Alip Stroy has declared insolvency.
Creditors have until Sept. 4, 2008, to submit written proofs of
claim to:

         LLC Alip Stroy
         Chui Ave. 182
         Bishkek
         Kyrgyzstan


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


ELM B.V.: S&P Corrects Series Number for US$10 Million Notes
------------------------------------------------------------
Standard & Poor's Ratings Services has corrected the series
number for ELM B.V.'s US$10 million Wapiti secured credit-linked
notes due 2013.  The notes were issued Jan. 26, 2007.

S&P rated this transaction on Feb. 2, 2007, and at that time,
all documents supplied to the rating agency identified the
transaction as ELM B.V. series 89.  However, S&P was recently
advised by UBS AG, the arranger of the transaction, that these
documents were incorrectly identified and that the correct
identification for this series is ELM B.V. series 98.

The change in the series number does not affect S&P's 'BBB'
rating on the series or the transaction's financial structure
or strength.

ELM B.V. is a synthetic corporate investment-grade
collateralized debt obligation.


SENSATA TECH: Moody's Rates US$2.8BB Subordinated Notes at Caa2
---------------------------------------------------------------
Moody's Investors Service assigned a Caa2 rating to Sensata
Technologies B.V.'s EUR141 million subordinated notes due 2014,
which replaces Sensata's existing EUR141 million term loan
maturing 2013.  In a related rating action, Moody's affirmed the
following ratings: corporate family rating - B3; probability of
default rating - B3, senior secured credit facility - B1, senior
unsecured notes - Caa1; and, senior subordinated notes - Caa2.
The company's speculative grade liquidity rating remains at SGL-
2.  The outlook is stable.

The company's B3 corporate family rating reflects the lack of
deleveraging as the company continues to face challenging
economic environments.  Key leverage metrics through the 12
months of March 31, 2008 were as follows: debt/EBITDA near 9.0x
times and EBITA/interest of 1.2 times (all ratios adjusted per
Moody's methodology).  The high leverage results from the
initial acquisition of Sensata by Bain Capital, LLC in April
2006 augmented by a series of debt-financed acquisitions since
then. Moody's had expected some level of debt repayment beyond
mandatory term loan amortization, which would have partially
offset some of the negative impact from foreign exchange
translation on the company's euro-denominated debt.

The strong euro relative to the U.S. dollar is resulting in
higher debt balances on Sensata's consolidated balance sheet
adding to the high leverage.  This leveraged capital structure
could hinder the company's financial flexibility as some of the
company's end markets face increasing economic pressures.
Additionally, the slowing U.S. economy is negatively impacting
the domestic housing market, a key source of revenue for its
controls business.  While a significant portion of
Sensata's business is derived from sensors used on automobiles,
the company is less affected by declining auto sales than
traditional auto parts suppliers because of the increasing
content of electronics on vehicles.  These weaknesses are
balanced against the company's good liquidity, global presence,
and growing exposure to several other end markets including
aerospace and telecommunications.

The stable outlook reflects Sensata's good liquidity and ability
to generate free cash flow as it faces a slowing U.S. economy,
which is negatively impacting some of its key end markets.

These ratings/assessments were affected by this action:

    * Corporate family rating affirmed at B3;

    * Probability of default rating affirmed at B3;

    * Senior secured credit facility affirmed at B1 (LGD2, 28%);

    * US$450 million senior unsecured notes due 2014 affirmed at
      Caa1 (LGD5, 73%);

    * EUR245 million senior subordinate notes due 2016 affirmed
      at Caa2 (LGD6, 90%); and,

    * EUR141 million senior subordinate notes due 2014 assigned
      Caa2 (LGD6, 90%).

The company's speculative grade liquidity rating of SGL-2 is
unchanged.

Sensata Technologies B.V., incorporated under the laws of The
Netherlands and headquartered in Attleboro, Massachusetts,
designs and manufactures sensors and electronic controls.
Sensata is a global designer, manufacturer, and marketer of
customized and highly-engineered sensors and control products.
Revenues for the 12 months ended March 31, 2008 totaled about
US$1.5 billion.


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


CLAIRE STORES: Moody's Junks Probability of Default Rating
----------------------------------------------------------
Moody's Investors Service downgraded Claire's Stores, Inc.'s,
ratings, including its probability of default rating to Caa1
from B3 and speculative grade liquidity rating to SGL-4 from
SGL-3.  In addition, Claire's long term ratings were placed on
review for further possible downgrade.  The downgrade to Caa1
reflects Claire's weak operating performance over the past two
quarters that has led to deterioration in its debt protection
measures.  In particular, EBITA to interest expense fell to 0.9
times for the lagging twelve month period ending May 3, 2008.
The review for further possible downgrade reflects the high
likelihood that Claire's debt protection measures will get worse
given the challenging economic environment which makes the
company highly susceptible to further earnings and cash flow
pressure.

For the LTM period ending May 3, 2008, Claire's unadjusted
EBITDA fell to US$248 million which was well below Moody's
expectations and fiscal 2007 results.  As a result, EBITA to
interest weakened to 0.9 times and debt to EBITDA rose to 8.8
times.  This earnings shortfall has also pressured the company's
cash flow requiring Claire's to choose to accrete rather than
pay cash interest under its senior PIK toggle notes.  Earnings
shortfalls also make it highly likely that the company will
become a permanent borrower under its revolving credit facility
over the next twelve months.

The downgrade to SGL-4 reflects Claire's weak liquidity given
its current level of free cash flow deficits and the high
likelihood that the company will continue to generate free cash
flow deficits.  Despite the company's electing to defer cash
interest under its PIK toggle notes, Moody's believes that
Claire's will likely remain free cash flow negative which will
result in sustained levels of permanent borrowings under its
revolving credit facility.  While the company appears to have
enough availability under its US$200 million revolving credit
facility to fund its free cash deficit over the next twelve
months, unfavorable operating results and/or working capital
changes during the period could rapidly absorb this
availability.  Despite the company's operating and liquidity
challenges, positive consideration is given to the fact that
there are no near-term scheduled debt maturities, and the fact
that Claire's revolving credit facility has no financial
covenants.

Moody's review for downgrade will focus on the company's near
term operating performance, level of cash flow burn, as well as
the likelihood that it will sustain a level of permanent
borrowings under its revolver.  Moody's review will also focus
on the overall economic environment and its impact on mall
traffic, consumer confidence, and discretionary spending.

The following ratings are downgraded and placed on review for
further possible downgrade:

-- Probability of default rating to Caa1;

-- Corporate family rating to Caa1;

-- US$200 million senior secured revolving credit facility to B2
   from B1;

-- US$1,450 million senior secured term loan to B2 from B1;

-- Senior unsecured notes to Caa2 from Caa1;

-- Senior subordinated notes to Caa3 from Caa2.

The following rating is downgraded:

-- Speculative grade liquidity rating to SGL-4 from SGL-3.

-- The current LGD assessments remain subject to change.

Headquartered in Pembroke Pines, Florida, Claire's Stores Inc.
(NYSE: CLE) -- http://www.clairestores.com/-- is a specialty
retailer of value-priced jewelry and accessories for girls and
young women through its two store concepts: Claire's and Icing.
While the latter operates only in North America, Claire's
operates worldwide.  As of May 3, 2008, Claire's Stores, Inc.
operated 3,053 stores in North America and Europe.  Claire's
Stores Inc. also operates through its subsidiary, Claire's
Nippon Co. Ltd., 201 stores in Japan as a 50:50 joint venture
with AEON Co. Ltd.   The company also franchises 169 stores in
the Middle East, Turkey, Russia, South Africa, Poland and
Guatemala.


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


GOFITSKOE OJSC: Court Names N. Zinchenko as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Krasnodar appointed N. Zinchenko as
Insolvency Manager for OJSC Gofitskoe (TIN 2314001070).  He can
be reached at:

         N. Zinchenko
         Office 307
         Kolkhoznaya Str. 3
         350042 Krasnodar
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-32-29480/2006-1/2695-B.

The Court is located at:

         The Arbitration Court of Krasnodar
         Krasnaya Str. 6
         Krasnodar
         Russia

The Debtor can be reached at:

         OJSC Gofitskoe
         Lenina Str. 104
         Gofitskoe
         352533 Labinskiy
         Russia


KUZNETS-REM-MONTAZH: Court Names E. Nevolina to Manage Assets
-------------------------------------------------------------
The Arbitration Court of Kemerovo appointed E. Nevolina as
Insolvency Manager for CJSC Kuznets-Rem-Montazh (TIN
4221009778).  She can be reached at:

         E. Nevolina
         Post User Box 99/408
         654000 Novokuznetsk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A27-8805/2005-4.

The Court is located at:

         The Arbitration Court of Kemerovo
         Krasnaya Str. 8
         Kemerovo
         Russia

The Debtor can be reached at:

         CJSC Kuznets-Rem-Montazh
         Obnorskogo Str. 2-10
         654000 Novokuznetsk
         Russia


PSKOV-AUTO OJSC: Creditors Must File Claims by August 28
--------------------------------------------------------
Creditors of OJSC Pskov-Auto (TIN 6027007533) have until Aug.
28, 2008, to submit proofs of claim to:

         A. Pykhtin
         Insolvency Manager
         Rizhskiy Pr. 16
         180007 Pskov
         Russia

The Arbitration Court of Pskov commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A52-141/2008.

The Court is located at:

         The Arbitration Court of Pskov
         Room 123
         Nekrasova 23
         180001 Pskov
         Russia

The Debtor can be reached at:

         OJSC Pskov-Auto
         Rizhskiy Pr. 16
         180007 Pskov
         Russia


SEL-KHOZ-KHIMIYA: Belgorod Bankruptcy Hearing Set September 22
--------------------------------------------------------------
The Arbitration Court of Belgorod will convene at 11:00 a.m. on
Sept. 22, 2008, to hear the bankruptcy supervision procedure on
OJSC Sel-Khoz-Khimiya.  The case is docketed under Case No.
A08-2384/08-31B.

The Temporary Insolvency Manager is:

         S. Klimov
         Post User Box 671
         308033 Belgorod
         Russia

The Court is located at:

         The Arbitration Court of Belgorod
         Narodnyj Avenue 135
         308600 Belgorod
         Russia

The Debtor can be reached at:

         OJSC Sel-Khoz-Khimiya
         Krupskoy Str. 12
         Chernyanka
         Chernyanskiy
         309560 Belgorod
         Russia


SEVERSTAL OAO: Hikes 2nd Qtr Steel Output to 5.3 Million Tons
-------------------------------------------------------------
OAO Severstal has released its first half 2008 operational
results.

Production of crude steel in second quarter 2008 was 5.3 million
tons, 10% higher than in the previous quarter.  Production of
rolled products rose 13% to 4 million tons.  Total production of
iron ore pellets was 4% lower than in first quarter 2008, iron
ore concentrate production was up by 11% and coking coal
concentrate production rose by 1%.

The sale of Kuzbassugol was completed in the beginning of April.
The impact of the disposal was almost fully offset by a 19%
increase in coal production at Vorkutaugol in second quarter,
resulting in total coal production decline by only 4% quarter-
on-quarter.  The 19% rise in coal production at Vorkutaugol was
primarily due to the solving of geological problems which had
impacted coal production in first quarter.  Vorkutaugol also
changed its product mix in second quarter in favour of coking
coal concentrate.  The production of low grade coal and steam
coal reduced due to a seasonal decline in consumption.

Production of iron ore was stable in second quarter. Iron ore
concentrate output at Olkon rose by 11% and the production of
iron ore pellets at Karelsky Okatysh reduced by 4%.  Net of
intercompany sales pellets sales reduced by 30% and iron ore
concentrate sales dropped by 44%.  This was due to an increase
in intercompany pellets sales (particularly due to shipments to
Lucchini's mills in Europe) and a temporary fall in iron ore
concentrate shipments to the Cherepovets steel mill in first
quarter resulting in Olkon sales to the market.  Following
Cherepovets steel mill's concentrate consumption growth, Olkon
increased intercompany shipments in second quarter.

Production of gold grew by 26% quarter-on-quarter due to
seasonal factors.  The increase mostly came from Aprelkovo and
Celtic mines.

Production of crude steel at Russian Steel decreased by 3% due
to repair works in a converter shop and blast furnace 4
resulting in a 14% fall in the production of semifinished
products (mainly slabs).  Production of all other products (with
the exception of metalware products) increased.  Production of
hot rolled strip and plates increased the most -- by 9% quarter-
on-quarter.

Production of crude steel in North America rose significantly,
by 85% quarter-on-quarter.  The acquisition of Sparrows Point,
completed in second quarter, contributed to this. Production at
Dearborn and Columbus increased by 32% and 12% respectively.
This was due to favorable pricing and increased demand in North
America as well as the continuing ramp-up of Blast furnace 'C'
at Dearborn.

Production of crude steel at Lucchini fell by 2%, resulting in a
slight reduction of slab and rails production, while long
products (especially wire rods) throughput rose by 7%.

With repair works completed at Izhora Pipe mill in first quarter
the production of large diameter pipes increased by 39% in
second quarter 2008.

Weighted average selling prices increased across the business,
with the exception of gold, which fell by 4% reflecting the
relative volatility of gold prices in the market.  Severstal
steel prices have changed in line with those in the wider steel
market.  The biggest growth (56%) came from long products at
Russian Steel.  The appreciation of the Russian ruble also
played a role.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

                        *     *     *

OAO Severstal continues to carry Ba2 Corporate Family, Senior
Unsecured Debt and Probability-of-Default ratings from Moody's
Investor Service, which said the the outlook on all ratings is
stable.  Moody's raised the company's ratings to its current
level in October 2007.

The company also carries BB long-term Foreign and Local Issuer
Credit ratings from Standard & Poor's, which said the outlook is
stable.

Severstal carries BB- Issuer Default and Senior Unsecured
ratings from Fitch, which said the outlook is positive.


SEVERSTAL OAO: UK FSA Okays US$1.25 Bln Debt Issuance Prospectus
----------------------------------------------------------------
The U.K. Financial Services Authority, in its capacity as
competent authority under the Financial Services and Markets Act
2000 as a prospectus for the purposes of Directive 2003/71/EC,
has approved the Prospectus that relates to the issuance by, but
with limited recourse to, Steel Capital SA, a company
incorporated under the laws of Luxembourg as a societe anonyme,
of US$1,250,000,000 9.75% Notes due 2013 for the sole purpose of
financing a US$1,250,000,000 9.75% five-year loan to OAO
Severstal.

The debt issuance prospectus can be viewed free-of-charge at:
            http://ResearchArchives.com/t/s?3028

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

                        *     *     *

OAO Severstal continues to carry Ba2 Corporate Family, Senior
Unsecured Debt and Probability-of-Default ratings from Moody's
Investor Service, which said the the outlook on all ratings is
stable.  Moody's raised the company's ratings to its current
level in October 2007.

The company also carries BB long-term Foreign and Local Issuer
Credit ratings from Standard & Poor's, which said the outlook is
stable.

Severstal carries BB- Issuer Default and Senior Unsecured
ratings from Fitch, which said the outlook is positive.


SISTEMA-HALS: Board Okays Bond Issue Documents and Memorandum
-------------------------------------------------------------
Sistema-Hals JSC's Board of Directors had approved the documents
and offering memorandum for an issue of ruble bonds.

The Board also agreed to submit these documents to the Russian
Federal Financial Markets Service for registration.

The company plans to issue RUR5 billion in bonds (RUR3 million
and RUR2 billion respectively) with a maturity period of 5
years.

The issue is being organized by ZAO Raiffeisenbank and
Renaissance Capital - Financial Consultant LLC.

The Board of Directors will pass separate resolutions on the
bond offering and the date of the issue.

                      About Sistema-Hals

Based in Moscow, JSC Sistema-Hals -- http://www.sistema-hals.ru/
-- is property developers in Moscow and the Moscow region,
with operations in the six regions in Russia, as well as Yalta
and Kiev, Ukraine.  The company is involved in a number of
large-scale governmental infrastructural projects in the
capacity of project manager.  Sistema-Hals is a 71.1% subsidiary
of Sistema JSFC.

                          *     *     *

JSC Sistema-Hals continues to carry B1 long-term corporate
family and probability-of-default ratings from Moody's
Investor Service.  The outlook according to Moody's is stable.

Sistema-Hals also carries B+ Issuer Default rating from Fitch,
which said the outlook is negative.


SISTEMA JSFC: Unveils New Organizational Structure
--------------------------------------------------
Sistema JSFC's Board of Directors approved a new organizational
structure of the Company at its meeting on July 26, 2008.

Sistema adopted a matrix model and formed three new operating
units in addition to functional divisions. These units will be
responsible for the management of Sistema's subsidiaries.

The operating unit 'Telecommunications Assets', previously the
Telecommunications Assets Development unit, headed by Vitaly
Savelyev, First Vice President of Sistema, will be responsible
for the development and implementation of Sistema's
telecommunications strategy, as well as management of
telecommunications and media assets, including MTS, Comstar-UTS,
Sistema Mass Media, and other companies in Russia, as well as
Shyam Telelink, Sistema's subsidiary in India.

The operating unit 'Consumer Assets' will focus on the
development of companies in the consumer sector, including
Detsky Mir, Intourist, MEDSI and MBRD, as well as Sistema Hals.
The Board of Directors has appointed Felix Evtushenkov as Vice
President of Sistema to head this unit.

The operating unit 'High Technologies and Industry' will be
engaged in Sistema's high tech and venture projects, as well as
private-public partnerships.  This unit, headed by Sergey Boyev,
Vice President of Sistema, will also oversee Sitronics and RTI
Systems.

The new organizational structure of Sistema will comprise these
functional divisions:

   -- Strategy and Development, headed by Anton Abugov, First
      Vice President,

   -- Finance, Alexey Buyanov, Senior Vice President,

   -- Property, Sergei Drozdov, Senior Vice President,

   -- Legal, Anna Goldin, Vice President,

   -- External Relations, Sergey Cheremin, appointed as Senior
      Vice President,

   -- Administrative, Ruslan Almakaev, Vice President,

   -- Corporate Communications, Gennady Frolov,

   -- Internal Control and Audit, Olga Shurygina,

All managers of operating units and functional divisions will
report directly to Leonid Melamed, President and CEO of Sistema.

Leonid Melamed, President and Chief Executive Officer of
Sistema, commented, "The adoption of these changes to the
organizational structure completes the process of
reorganization, which was started a year ago, and underlines our
efforts to improve the efficiency of asset management and
simplify our corporate structure.  The adopted matrix model of
the organization is aimed at achieving greater participation and
control over the execution of the strategy in daughter
companies, increasing motivation and responsibilities of the
Corporate center's senior management in the decision making
process in target markets, as well as optimizing business
development expenditures through synergies and consolidation
of management resources."

                         About Sistema

Headquartered in Moscow, Russia, Sistema JSFC
-- http://www.sistema.com/-- develops and manages market-
leading businesses in selected service-based industries,
including telecommunications, technology, insurance,
banking, real estate, retail and media.

                         *     *     *

Sistema JSFC currently carries a Ba3 long-term corporate family
rating and a B2 senior unsecured debt rating from Moody's, with
positive outlook.

The company also carries Standard & Poor's BB- long-term foreign
and local issuer credit ratings.  S&P said the outlook is
negative.

Sistema JSFC carries BB- Issuer Default rating from Fitch, which
said the outlook is stable.


SISTEMA JFSC: Shyam Telelink Unit Names Vsevolod Rozanov as CEO
---------------------------------------------------------------
The Board of Directors of Shyam Telelink, a subsidiary of
Sistema JSFC in India, appointed Mr. Vsevolod Rozanov, who held
the position of Vice President and CFO at MTS from April 2006,
as President and CEO of Shyam Telelink.

Leonid Melamed, President and Chief Executive Officer of
Sistema, commented: "Vsevolod is a successful professional who
made a significant contribution to consolidating MTS's position
in the market.  We are confident that his appointment as
President and CEO of Shyam Telelink will strengthen the
management team of our promising Indian asset, which is intended
to further establish Sistema's position in the global
telecommunications market.  At the same time, a strong team of
professionals at MTS will continue to build up the momentum in
the leading Russian telecom operator."

Vsevolod Rozanov noted: "I am honored to head Shyam Telelink,
one of Sistema's major projects.  I plan to apply the experience
and knowledge gained at MTS to achieve the goals set by the
shareholders to establish a pan-Indian mobile operator, one of
the key players in the Indian telecommunications market."

                         About Sistema

Headquartered in Moscow, Russia, Sistema JSFC
-- http://www.sistema.com/-- develops and manages market-
leading businesses in selected service-based industries,
including telecommunications, technology, insurance,
banking, real estate, retail and media.

                         *     *     *

Sistema JSFC currently carries a Ba3 long-term corporate family
rating and a B2 senior unsecured debt rating from Moody's, with
positive outlook.

The company also carries Standard & Poor's BB- long-term foreign
and local issuer credit ratings.  S&P said the outlook is
negative.

Sistema JSFC carries BB- Issuer Default rating from Fitch, which
said the outlook is stable.


SUROVIKINSKIY MEAT: Creditors Must File Claims by August 28
-----------------------------------------------------------
Creditors of LLC Surovikinskiy Meat Packing Plant (TIN
3430032923) have until Aug. 28, 2008, to submit proofs of claim
to:

         A. Kamenskiy
         Insolvency Manager
         Balakhinskaya Str. 4
         400001 Volgograd
         Russia

The Arbitration Court of Volgograd commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A12-8063/08-s49.

The Debtor can be reached at:

         LLC Surovikinskiy Meat Packing Plant
         Promzona
         Surovikino
         404411 Volgograd
         Russia


TMK OAO: Completes US$600 Million Eurobond Issue
------------------------------------------------
OAO TMK has successfully issued a US$600 million three-year
Eurobond due in July 2011 with 10 percent annual coupon.

The transaction was structured as a U.S. dollar Regulation S
Loan Participation Notes offering by TMK Capital S.A.

The proceeds will be used to partly refinance the syndicated
bridge facility which was arranged on May 30, 2008 to finance
the acquisition of the U.S. tubular business of IPSCO.

ABN AMRO Bank N.V., Barclays Bank PLC, ING Bank N.V., London
Branch and UBS Limited acted as Co-ordinating Joint Lead
Managers and Joint Bookrunners, Natixis and Nomura International
PLC acted as Joint Lead Managers and Bookrunners, BNP PARIBAS
and Mitsubishi UFJ Securities International PLC acted as Co-Lead
Managers, Renaissance Securities (Cyprus) Limited and The Royal
Bank of Scotland PLC acted as Co-Managers of the Eurobond
offering.

Rating agencies Moody's and Standard & Poor's have assigned
their preliminary Ba3 and BB- ratings to the Notes respectively.

"TMK successfully issued a Eurobond amid challenging market
conditions, and we were pleased to see so many new investors
participate in the offering," said CEO Konstantin Semerikov.

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmk-group.ru/-- manufactures the entire product
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                          *     *     *

OAO TMK continues to carry Ba3 Corporate Family and Probability-
of-Default ratings with negative outlook from Moody's Investors
Service.

The company also continues to carry BB- long-term foreign and
local issuer credit ratings with negative outlook from Standard
& Poor's.


TMK OAO: Oilfield Services Unit Hikes Production Capacities
-----------------------------------------------------------
In July 2008 TMK Oilfield Services Division, launched tubing
production line at its facilities in the city of Buzuluk
(Russia), enhancing its ability to provide the customers with a
set of services both for maintenance and repair, and production
of high-tech tubular goods.

The existing processing line used for tubing repair was upgraded
to be able to produce new tubing.  The line annual capacity
amounts to 11,000 tons of pipes.

As it was outlined by Sergey Agaphonov, TMK Oilfield Services'
CEO, an increase of TMK's production capacity in the oil and gas
fields is in line with the Company’s strategic goal to provide
a full range of high-tech products and services for oil and gas
industry.

OOO TMK Oil Field Services was set up in 2008 to manage TMK's
assets located in key Russia's oil and gas regions.

                          About TMK

Headquartered in Moscow, Russia, OAO TMK --
http://www.tmk-group.ru/-- manufactures the entire product
range of existing pipe products, which are used in the oil-and-
gas industry, the chemical and petrochemical industries, the
energy and machine-building industries, construction and the
municipal housing economy, shipbuilding, aviation, space and
rocket equipment, and agriculture.  TMK has production
facilities located in Russia and Romania, which unite the four
leading enterprises in the Russian pipe industry.

                          *     *     *

OAO TMK continues to carry Ba3 Corporate Family and Probability-
of-Default ratings with negative outlook from Moody's Investors
Service.

The company also continues to carry BB- long-term foreign and
local issuer credit ratings with negative outlook from Standard
& Poor's.


VELES LLC: Stavropol Court Names L. Palyan as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Stavropol appointed L. Palyan as
Insolvency Manager for LLC Veles (TIN 2628038391).  He can be
reached at:

         L. Palyan
         Privolnaya Str. 8
         Essentukskaya St.
         Predgornyj
         357350 Stavropol
         Russia

The Court is located at:

         The Arbitration Court of Stavropol
         Mira Str. 4586
         Stavropol
         Russia

The Debtor can be reached at:

         LLC Veles
         Kislovodsk
         Russia


VIMPEL-COMMUNICATIONS: Issues RUR10 Billion for Expansion Funds
---------------------------------------------------------------
OJSC Vimpel-Communications has issued Russian ruble-denominated
bonds through LLC VimpelCom-Invest, a consolidated Russian
subsidiary of VimpelCom, in an aggregate principal amount of
RUR10 billion, which is the equivalent of around US$428 million
at Central Bank of Russia exchange rate. The bonds are
guaranteed by VimpelCom.

The bonds are due on July 19, 2013.  Interest will be paid
semiannually.  The annual interest rate for the first three
payment periods is 9.05%.  VimpelCom-Invest will determine the
annual interest rate for subsequent periods based on market
conditions.

Bond holders will have the right to sell their bonds to
VimpelCom-Invest when the annual interest rate for subsequent
periods is announced at the end of the third payment period.
The proceeds of the offering will be used for the development
and expansion of VimpelCom’s networks, including through
possible acquisitions or investments in existing operators, and
to repay indebtedness.

                          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.


VOLGATELECOM OJSC: Seeking Provider for RUR1.1 Billion Loan
-----------------------------------------------------------
OJSC VolgaTelecom has launched tender for selection of lending
institution to provide financial services of credit extension.

The tenders comprise two lots:

    * lot 1: extending credit to the amount of RUR400,000,000
             for 24 months;

    * lot 2: extending credit to the amount of RUR700,000,000
             for 36 months.

The funds will be allocated for financing OJSC VolgaTelecom's
day-to-day and investment operations.

The asking price of the Contract to be concluded based on the
tenders' results, is the maximum size of interest rate and
equals to:

    * lot 1: the maximum size of interest rate for this lot
             is 1-month MOSPRIME* rate + 3.6% annually;

    * lot 2: the maximum size of interest rate for this lot is
             1-month MOSPRIME* rate + 3.95 % annually.

Tenders should be submitted before Sept. 1, 2008, and will be
considered by a Tender Committee on Sept. 4, 2008.  The results
of the tenders will be summed up on Sept. 5, 2008.

The tenders should be addressed to:

         General Directorate
         OJSC VolgaTelecom
         Dom Svyazi
         M.Gorky Square
         Nizhny Novgorod 603000
         Russia

                       About VolgaTelecom

Headquartered in Nizhny Novgorod, Russia, OJSC VolgaTelecom
-- http://www.vt.ru/-- provides wide range of telephony,
cellular, Internet and data transmission, TV and radio
broadcasting services in 11 regions of the Volga Federal
district.  The Company's shares are traded at RTS and MICEX. I-
level American Depositary Receipts program is effective since
1997; the ADRs are traded at Frankfurt, Berlin Stock Exchanges
and USA OTC market.

                         *     *     *

OJSC Volgatelecom currently carries Fitch Ratings' Long-term
Issuer Default rating of 'BB-', National Long-term rating of
'A+(rus)' and Short-term IDR of 'B'.  The Outlooks for the Long-
term IDR and National Long-term rating are Stable.

The company also carries Standard & Poor's Ratings Services'
'BB-' long-term corporate credit and 'ruAA-' Russia national
scale ratings on Russian regional telecoms operator VolgaTelecom
OJSC.  The outlook is stable.


YAMAL-SEVER-STROY: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------------
The Arbitration Court of Yamalo-Nenetskiy commenced bankruptcy
supervision procedure on LLC Yamal-Sever-Stroy.  The case is
docketed under Case No. A07-4986/08-G-ShAB.

The Temporary Insolvency Manager is:

         V. Efimets
         Post User Box 65
         Gorkogo Str. 12
         Inta
         169840 Komi
         Russia
         Tel/Fax: (82145)-6-16-17

The Court is located at:

         The Arbitration Court of Yamalo-Nenetskiy
         Chubynina Str. 37A
         Salekhard
         Yamalo-Nenetskiy
         Russia

The Debtor can be reached at:

         LLC Yamal-Sever-Stroy
         Chkalova Str. 3
         Salekhard
         Russia


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


AYT COLATERALES: Fitch Puts 'B' Rating on Class D Notes
-------------------------------------------------------
Fitch has assigned AyT Colaterales Global Empresas FTA, Series
AyT Colaterales Global Empresas Caja Navarra I notes totaling
EUR230 million due in November 2048 final ratings as:

  -- EUR188.6 million Class A: 'AAA'
  -- EUR19.5 million Class B: 'A'
  -- EUR11.5 million Class C: 'BBB-'
  -- EUR10.4 million Class D: 'B'

The ratings address the payment of interest on the notes
according to the terms and conditions of the documentation,
subject to a deferral trigger for the Class B, Class C, and
Class D notes, as well as the repayment of principal by legal
maturity.  According to the AyT Colaterales Empresas transaction
documents, the legal final maturity date of the program and
therefore applicable to all the series of notes issued and to be
issued in the future, is defined as three years after the
longest scheduled maturity date of the program.

This transaction is a cash flow securitization of a EUR230
million static pool of secured and unsecured loans granted by
Caja de Ahorros y Monte de Piedad de Navarra (Caja Navarra,
rated 'A'/'F1'/Outlook Stable), a Spanish savings bank, to
small- and medium-sized Spanish enterprises.  The pool consists
of around 900 loans to SME companies with a strong concentration
(approximately 86%) in the region of Navarra, the bank's home
region.

AyT Colaterales Caja Navarra I is the first standalone SME
securitization transaction to be brought to the market by Caja
Navarra, and it is the second series issued by AyT Colaterales
Empresas.  AyT Colaterales Empresas is a securitization fund
incorporated in December 2007 to issue a number of independent
series of notes collateralized by SME loans by up to 37
different Spanish financial institutions.  The maximum overall
size of AyT Colaterales Empresas is limited to EUR3 billion.
The issuer is legally represented and managed by Ahorro y
Titulizacion, S.A., S.G.F.T. (the Sociedad Gestora), a special-
purpose management company with limited liability incorporated
under the laws of Spain.

As announced in Fitch's Rating Action Commentary titled "Fitch
Clarifies Position on New Issue CDO Ratings" published on its
website on 6 November 2007, Fitch is in the process of reviewing
its rating methodology and model assumptions for all new issue
CDO ratings.  Investors should be aware that Fitch is
reassessing its analytic views which could impact existing
ratings, including the ratings assigned to the securities in
this announcement.


* SPAIN: Banking & Real Estate Industries Plummeting, S&P Says
--------------------------------------------------------------
The already abrupt correction in Spain's real estate market took
another downward step following top Spanish real estate firm
Martinsa Fadesa S.A.'s recent voluntary declaration of
insolvency, said Standard & Poor's Ratings Services in a report
"Spanish Banks Face Real Estate Sector's Steepening Slide,"
published July 24, 2008, on RatingsDirect.  The article examines
the current downturn for the country's real estate developers
and the risks confronting financial institutions with exposure
to the sector.

"Accentuating the housing market's fall are prolonged liquidity
constraints in the global financial markets, increasingly
restrictive credit conditions, and ebbing buyer confidence,"
said S&P's credit analyst Jesus Martinez.

Residential real estate developers have attracted a large amount
of the Spanish banking system's financing over the past few
years, with lending to the sector accounting for 17% of the
system's credit to the residential private sector at year-end
2007.  The system's large exposure to the real estate sector --
more pronounced for savings than for commercial banks -- is a
main risk factor that S&P incorporates into its ratings.

Nonperforming loans to real estate developers represented only
0.91% of total financial institutions' loans to the sector at
end-March 2008, but S&P expects this proportion to climb
rapidly.  Just adding in Martinsa Fadesa will trigger a jump in
the ratio by about 174 basis points in July 2008.

"We believe that most Spanish banks face the current weakening
in the real estate market from a position of strength," said Mr.
Martinez.  "Loan loss reserves are high and efficiency strong."

But increasing nonperforming loans will gradually erode these
banks' cushions and this shrinkage could accelerate if the
economic downswing deepens.  These factors, which S&P is
monitoring closely, will exacerbate pressure on the ratings on
Spanish banks.

S&P recently revised its outlooks on several Spanish banks to
negative from stable, reflecting its concerns about the impact
of the real estate downturn on banks' financial profiles
("Worsening Economic Environment Prompts Various Rating Actions
On Spanish Banks After Review," published July 7, 2008, on
RatingsDirect).  Martinsa Fadesa's declaration of insolvency
vindicates S&P's concerns.

Martinsa Fadesa SA is the largest corporate insolvency in
Spanish history, involving more than 80 financial institutions
as creditors.


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


GENERAL MOTORS: Appaloosa Balks at Participation on Delphi Suit
---------------------------------------------------------------
A-D Acquisition Holdings, LLC, and Appaloosa Management L.P.
oppose the participation of General Motors Corporation as party-
in-interest with respect to Delphi Corp.'s US$2,550,000,000
adversary complaint against Appaloosa and other Plan Investors.

As disclosed in the Troubled Company Reporter on July 15, 2008,
GM sought authority from the U.S. Bankruptcy Court for the
Southern District of New York to participate in the
adversary proceedings filed by Delphi Corp. against Appaloosa,
Management, L.P., et al.  GM wants to participate in the
proceedings as a "party-in-interest."

Delphi's ties with Appaloosa, et al., soured after Delphi sought
funding of the US$2,825,000,000 of its US$6,100,000,000 exit
debt financing facility from General Motors, its primary
customer.  The lenders, including GM, were ready to close April
4, but the financing agreements have been terminated after
Appaloosa, et al., pulled out from their commitment to provide
US$2,550,000,000 of equity financing to Delphi.

Douglas P. Baumstein, Esq., at White & Case LLP, in New York,
says that ADAD and AMLP anchor their opposition on GM's failure
to adequately define what a "party in interest" means, given
that it seeks to participate in the adversary proceeding in a
limited capacity, yet it seeks rights afforded only to full
parties to a proceeding without undertaking the obligations of a
party.

Mr. Baumstein admits that some of the relief sought by GM is
acceptable, "but much of the relief it seeks goes well beyond
that to which a party in interest is entitled," Mr. Baunstein
says.

Mr. Baumstein anticipates that at this time, GM does not seek to
intervene in the proceedings, however, it seeks court authority
to (i) appear before the Court on any matter arising in the
Adversary Proceeding, including hearings and chamber
conferences, (ii) participate in any settlement discussions,
mediation sessions and arbitrations regarding the Adversary
Proceeding, and (iii) participate in the discovery process,
including through the review of documents produced and
attendance at depositions.

Mr. Baumstein argues that GM is not entitled to  participate so
as to fully monitor the progress and status of the Adversary
Proceeding and to permit involvement in activities likely to
affect or overlap with a new plan, contrary to the relief it
seeks.  Mr. Baumstein then cites the grounds for ADAH and AMLP's
objections and supporting with contentions:

  (1) GM should only be permitted to appear in the litigation so
      long as it limits itself to the role of observer and does
      not duplicate effort or unduly burden the parties.

        It is not clear that GM is willing to limit its role, as
        GM seeks to participate in the action by appearing
        before the Court on "any matter arising in the Adversary
        Proceeding" including by appearing at the chambers'
        conferences.  This right is inconsistent with the
        monitoring function GM purports to seek.

  (2) There is no basis for GM's request to participate in any
      settlement negotiations.

        GM has articulated no concrete interest or right of its
        own that is at stake in this proceeding.  Instead, GM
        purports to seek participation on a limited basis in
        order to inform its own position in negotiations of a
        modified or new plan of reorganization that is not
        before this Court in this proceeding.

  (3) GM should not be permitted to seek discovery without first
      intervening as a party.

        The right to serve discovery requests is one reserved to
        full parties at an action, which GM is not and does not
        seek.

Harbinger Del-Auto Investment Company Ltd. and  Merrill Lynch,
Pierce, Fenner & Smith Incorporated have joined in Appaloosa's
objection.  Both parties request the Court to deny GM's motion
to participate in the adversary proceeding as party-in-interest.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                   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.


GENERAL MOTORS: Negotiating New or Amended Plan for Delphi Corp.
----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in the
bankruptcy cases of Delphi Corp. and its debtor-affiliates says
it is actively negotiating with the Debtors to reach mutually
acceptable modification of the current Joint Plan of
Reorganization of the Debtors, following Appaloosa Management,
L.P., et al.'s decision to back out from their US$2,550,000,000
exit financing agreement, and in light of the Debtors' pending
lawsuit against Appaloosa, et al.

Committee counsel Edward M. Fox, Esq., at K&L Gates, LLP, in New
York, says that if the negotiations don't achieve the
resolution, it will pursue its adversary proceeding, seeking the
revocation of the order confirming the Plan, which the Committee
says it accepted based upon the "promissory fraud of Appaloosa."

As reported in the Troubled Company Reporter on July 15, 2008,
General Motors Corp., in its request to join as party-in-
interest in Delphi's adversary proceedings against Appaloosa, et
al., said it is a major constituent of a new plan under
negotiation together with Delphi and Creditors Committee.  GM
has been asked to provide major support through financial
contributions, subsidies and loans, its counsel Michael P.
Kessler, Esq., at Weil, Gotshal & Manges LLP, in New York,
disclosed.

GM also had said its interest in participating in the
US$2,550,000,000 lawsuits is in the litigation's representation
of a significant asset of the Debtors' estates.  The terms and
conditions of a modified or new plan will depend, in part, on
the value ascribed to the litigation and the disposition of any
recoveries from the litigation, Mr. Kessler said.

                         About Delphi

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                   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.


LOKDEPOT WINTERTHUR: Creditors' Proofs of Claim Due by Oct. 1
-------------------------------------------------------------
Creditors owed money by LLC Lokdepot Winterthur LoWin are
requested to file their proofs of claim by Oct. 1, 2008, to:

         LLC Steam Locomotive and
         Machine Works
         Stadthausstrasse 12
         8401 Winterthur
         Switzerland

The company is currently undergoing liquidation in Winterthur.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 20, 2007.


SEMGROUP ENERGY: March 31 Balance Sheet Upside-Down by US$54.6MM
----------------------------------------------------------------
SemGroup Energy Partners, L.P.'s consolidated balance sheet at
March 31, 2008, showed US$262.0 million in total assets and
US$316.6 million in total liabilities, resulting in a US$54.6
million partners' deficit.

At March 31, 2008, the company's consolidated balance sheet also
showed strained liquidity with US$5.8 million in total current
assets available to pay US$16.1 million in total current
liabilities.

The company reported net income of US$9.8 million on service
revenues of US$40.2 million for the first quarter ended March
31, 2008.

These results compare to pre-IPO predecessor results of a net
loss of US$12.3 million on revenues of US$8.6 million for the
quarter ended March 31, 2007.  The predecessor did not record
any revenue associated with the gathering and transportation and
terminalling and storage services provided on an intercompany
basis, but did recognize the costs of providing such services.

The company generated US$19.0 million in earnings before
interest, taxes, depreciation and amortization, or EBITDA, for
the first quarter of 2008, and distributable cash flow of
US$15.7 million.

Kevin Foxx, SemGroup Energy Partners president and chief
executive officer, said, "We're pleased that 2008 is off to a
great start. SGLP's results were driven by three factors: strong
storage demand; an increase in transportation volumes at long-
haul rates; and 41 days of earnings contribution from the
asphalt terminaling and storage facilities that we acquired on
February 20th of this year."

On March 31, 2008, the net book value of the company's property,
plant and equipment was US$244.8 million compared with
US$102.2 million on Dec. 31, 2007, which reflects the impact of
the asphalt terminalling and storage facilities acquired.

"SGLP remains on track to increase our per unit annual cash
distribution rate for 2008 by US$0.40 to US$0.50 over the fourth
quarter 2007 annualized rate of US$1.35 per unit," Foxx said.

                Liquidity and Capital Resources

Net cash used in investing activities was US$380.5 million for
the three months ended March 31, 2008, compared to US$9.0
million for the three months ended March 31, 2007.  This
increase is primarily attributable to the purchase of the
SemMaterials, L.P's asphalt assets in February 2008 for
approximately US$379.3 million.

Net cash provided by financing activities was US$355.0 million
for the three months ended March 31, 2008, as compared to
US$21.1 million for the three months ended March 31, 2007.  Net
cash provided by financing activities for the three months ended
March 31, 2008, is primarily comprised of net borrowings under
the company's credit facility of US$205.4 million and proceeds
from the February 2008 public offering, net of offering fees, of
US$161.2 million, and is offset by distributions paid of
US$9.4 million for the three months ended March 31, 2008.

At March 31, 2008, the company had approximately US$305.0
million of availability under its US$350.0 million revolving
credit facility.

                   Purchase of Asphalt Assets

On Feb. 20, 2008, the company purchased land, receiving
infrastructure, machinery, pumps and piping and 46 liquid
asphalt cement and residual fuel oil terminalling and storage
facilities from SemMaterials, L.P., a subsidiary of SemGroup,
L.P. (the company's parent), for aggregate consideration of
US$379.5 million, including US$700,000 of acquisition-related
costs.

For accounting purposes, the acquisition has been reflected as a
purchase of assets, with the acquired asphalt assets recorded at
the historical cost of SemMaterials, which was approximately
US$145.5 million, with the additional purchase price of
US$234.0 million reflected in the statement of changes in
partners' capital as a distribution to SemGroup, L.P.

In conjunction with the purchase of the acquired asphalt assets,
the company amended its existing credit facility, increasing its
borrowing capacity to US$600 million.  The amended credit
facility is comprised of a US$350.0 revolving credit facility
and a US$250.0 million term loan facility and will mature on
July 20, 2012.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2008, are available
for free at http://researcharchives.com/t/s?3017

                 About SemGroup Energy Partners

Tulsa, Oklahoma-based SemGroup Energy Partners, L.P. (Nasdaq:
SGLP) -- http://www.SGLP.com/-- owns and operates a diversified
portfolio of complementary midstream energy assets.  SemGroup
Energy Partners provides crude oil and liquid asphalt cement
terminalling and storage services and crude oil gathering and
transportation services.

On July 22, 2008, the company's parent, SemGroup, L.P., filed a
voluntary petition for reorganization under Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware.  Various subsidiaries of SemGroup, L.P.
also filed voluntary petitions for reorganization under Chapter
11 of the Bankruptcy Code on such date.  None of the company,
the general partner of the company, nor any of the subsidiaries
of the company or the general partner were included in the
bankruptcy filings.


SEMGROUP LP: Seeks Schedules and Statements Filing Extension
------------------------------------------------------------
SemGroup L.P. and its debtor-affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
time to file their Schedules and Statements until Oct. 20, 2008.

John H. Knight, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, the Debtors' proposed counsel, told Judge
Brendan L. Shannon that the Debtors must compile information
from their books and records relating to their numerous assets
and contracts, as well as more than 1,500 creditors.  Assembling
information within 30 days will be a burden to the Debtors, and
may adversely impact the Debtors' business operations, he said.

Mr. Knight added that substantial time and work is required for
the Debtors to prepare the Schedules and Statements, given the
complexity of their affairs.  The Debtors anticipate that they
require an additional 60 days to complete the Schedules.

                       About SemGroup L.P.

SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt.  Services include purchasing,
selling, processing, transporting, terminaling and storing
energy.  SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.

SemGroup L.P. and its debtor affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525).  These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil Gotshal & Manges LLP.  Kurtzman Carson
Consultants L.L.C. is the Debtors' claims agent.  The Debtors'
financial advisors are The Blackstone Group L.P. and A.P.
Services LLC.  Margot B. Schonholtz, Esq., and Scott D.
Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber
Silverstein, Esq., at Potter Anderson & Corroon LLP, represent
the Debtors' prepetition lenders.

The Debtors' consolidated, unaudited financial conditions as of
June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts.  In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.

(SemGoup Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                         *     *    *

On July 25, 2008, the Troubled Company Reported that Fitch
Ratings   downgraded the ratings of SemGroup, L.P., SemCrude
L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all
ratings.  The withdrawn ratings include Issuer default Rating D
assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS
Midstream Co.  Fitch Ratings has downgraded, removed from Rating
Watch Negative, and simultaneously withdrawn (a) SemGroup,
L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s
Senior secured working capital facility to 'CCC' from 'BB-/RR1';
Senior secured revolving credit facility to 'CC' from 'B+/RR1';
and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c)
SemCAMS Midstream Co. (SemCAMS) Senior secured working capital
facility to 'CCC' from 'BB-/RR1'; Senior secured revolving
credit facility to 'CC' from 'B+/RR1'; and Senior secured term
loan B to 'CC' from 'B+/RR1'.

Also, Moody's Investors Service downgraded SemGroup, L.P.'s
Corporate Family Rating to Ca from Caa2, its Probability of
Default Rating to D from Caa3, its senior unsecured rating to C
(LGD 5; 86%) from Ca (LGD 4; 69%), and its first secured bank
facilities to Caa3 (LGD 3; 38%) from B3 (LGD 2; 21%).  These
actions affect rated cross guaranteed debt at parent SemGroup
and its subsidiaries SemCams Holding Company and SemCrude, L.P.

Further, Fitch Ratings lowered the Issuer Default Ratings of
SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. to 'D'
following the bankruptcy petition by SemGroup and most of units
on July 22, 2008.  These ratings are removed from Rating Watch
where they were placed on July 17, 2008.  The bank facility and
securities ratings of SemGroup and units remain on Rating Watch
Negative pending a review of the bankruptcy court petition.


SEMGROUP LP: Has About US$13 Million Payable to Hiland Holdings
-------------------------------------------------------------
Hiland Holdings GP, LP, and Hiland Partners, LP, updated the
status of the Partnership's product sales to certain affiliates
of SemGroup, L.P., in response to the bankruptcy of SemGroup,
L.P. and certain of its affiliates.

In the Partnership's public filings with the U.S. Securities and
Exchange Commission, the Partnership has historically sold
natural gas liquids and condensate that are produced at its
Bakken and Badlands plants and gathering systems to SemGroup.
The Partnership currently has an account receivable of
approximately US$8 million from SemGroup relating to product
sales made during June 2008 and estimates additional uninvoiced
product sales of approximately US$5 million from July 1 through
July 18, 2008.  Any potential accounts receivable write-off
related to the Partnership's exposure to SemGroup is not
expected to cause the Partnership to be out of compliance with
its covenants under its credit facility or impact its liquidity
position in any material respect.

The Partnership has made temporary arrangements for its product
sales while assessing its options in light of SemGroup's
bankruptcy.  The Partnership does not anticipate that the
SemGroup bankruptcy will cause it to lower its distribution
guidance or impede the execution of its current growth capital
expenditure program.

                   About the Hiland Companies

Enid, Oklahoma-based Hiland Partners, LP (NASDAQ: HLND) --
http://www.hilandpartners.com/-- gathers, compresses,
dehydrates, treats, processes and markets natural gas, and
fractionates, or separates, natural gas liquids, or NGLs.  The
Partnership also provides air compression and water injection
services for use in oil and gas secondary recovery operations.
The Partnership's operations are primarily located in the Mid-
Continent and Rocky Mountain regions of the United States.
Hiland Partners, LP's midstream assets consist of fourteen
natural gas gathering systems with approximately 2,030 miles of
gathering pipelines, five natural gas processing plants, seven
natural gas treating facilities and three NGL fractionation
facilities.  The Partnership's compression assets consist of two
air compression facilities and a water injection plant.

Hiland Holdings GP, LP owns the two percent general partner
interest, 2,321,471 common units and 3,060,000 subordinated
units in Hiland Partners, LP, and the incentive distribution
rights of Hiland Partners, LP.

                       About SemGroup L.P.

SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt.  Services include purchasing,
selling, processing, transporting, terminaling and storing
energy.  SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.

SemGroup L.P. and its debtor affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525).  These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil
Gotshal & Manges LLP.  Kurtzman Carson Consultants L.L.C. is the
Debtors' claims agent.  The Debtors' financial advisors are The
Blackstone Group L.P. and A.P. Services LLC.  Margot B.
Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer
LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson &
Corroon LLP, represent the Debtors' prepetition lenders.

The Debtors' consolidated, unaudited financial conditions as of
June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts.  In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.

(SemGoup Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                         *     *    *

On July 25, 2008, the Troubled Company Reported that Fitch
Ratings   downgraded the ratings of SemGroup, L.P., SemCrude
L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all
ratings.  The withdrawn ratings include Issuer default Rating D
assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS
Midstream Co.  Fitch Ratings has downgraded, removed from Rating
Watch Negative, and simultaneously withdrawn (a) SemGroup,
L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s
Senior secured working capital facility to 'CCC' from 'BB-/RR1';
Senior secured revolving credit facility to 'CC' from 'B+/RR1';
and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c)
SemCAMS Midstream Co. (SemCAMS) Senior secured working capital
facility to 'CCC' from 'BB-/RR1'; Senior secured revolving
credit facility to 'CC' from 'B+/RR1'; and Senior secured term
loan B to 'CC' from 'B+/RR1'.

Also, Moody's Investors Service downgraded SemGroup, L.P.'s
Corporate Family Rating to Ca from Caa2, its Probability of
Default Rating to D from Caa3, its senior unsecured rating to C
(LGD 5; 86%) from Ca (LGD 4; 69%), and its first secured bank
facilities to Caa3 (LGD 3; 38%) from B3 (LGD 2; 21%).  These
actions affect rated cross guaranteed debt at parent SemGroup
and its subsidiaries SemCams Holding Company and SemCrude, L.P.

Further, Fitch Ratings lowered the Issuer Default Ratings of
SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. to 'D'
following the bankruptcy petition by SemGroup and most of units
on July 22, 2008.  These ratings are removed from Rating Watch
where they were placed on July 17, 2008.  The bank facility and
securities ratings of SemGroup and units remain on Rating Watch
Negative pending a review of the bankruptcy court petition.


SEMGROUP LP: Various Entities Discloses Financial Exposure
----------------------------------------------------------
Various entities disclose financial exposure in relation to the
bankruptcy petition of SemGroup L.P. and its debtor-affiliates
filed under chapter 11 of the U.S. Bankruptcy Code and the
Companies' Creditors Arrangement Act (Canada).

A. Sunoco Logistics

Sunoco Logistics Partners L.P., believes it has minimal credit
exposure to SemGroup LP and its affiliates.  Affiliates of
Sunoco Logistics conduct business with SemCrude LP for the
purchase and sale of crude oil.  Sunoco Logistics has a net-out
agreement with SemCrude LP, pursuant to which receivables and
payables are set-off.  As of the chapter 11 filing date of
SemGroup and its debtor-affiliates, Sunoco Logistics estimates
that it is in a net payable position with SemCrude LP, with
limited credit exposure, if any.

B. ARC Resources

ARC Resources Ltd., a subsidiary of ARC Energy Trust, has a
potential exposure of US$26.2 million from oil sales for the
months of June and July 2008 to SemGroup, L.P.'s subsidiary,
SemCanada Crude Company, for the marketing of a portion of ARC's
oil production.  ARC is not certain of what portion if any of
the US$26.2 million is collectible but in any case the amount is
not considered material to ARC's operations and overall
financial position.

C. Crescent Point Energy

Crescent Point Energy Trust said it has a potential exposure to
SemCanada Crude Company, a Canadian subsidiary of SemGroup,
L.P., relating to the marketing of a portion of the Trust's
crude oil and liquids production.  The contract pertaining to
the majority of the production volumes purchased by SemCanada
was previously terminated and does not represent an ongoing
exposure for the Trust.

Crescent Point's exposure is listed in SEMGroup's U.S.
bankruptcy filing as US$42.5 million based on SEMGroup's
forecasts of prices and production volumes.  The Trust expects
the actual exposure to be closer to US$30 million based on its
most recent estimates.  As of this date, the Trust is not able
to quantify the portion, if any, of the exposure that will be
collected, but in any case the amount is not considered material
to Crescent Point's operations and overall financial position.

Crescent Point expects 2008 to be a record year with production
forecast to average 36,250 boe/d and exit over 37,500 boe/d.
The Trust continues to expect record cash flow for 2008 and does
not expect the potential exposure to SemCanada to materially
impact its cash flow expectations.  The Trust will not be
revising its cash flow guidance for the year.

D. Petroflow Energy

Petroflow Energy, Ltd., said it has a potential exposure to
SemCrude, L.P. and SemGas, L.P., subsidiaries of SemGroup, L.P.,
relating to the marketing of a portion of the Company's crude
oil, liquids and natural gas production.

Certain SemGroup contracts, which are held by Petroflow's
working interest partner, pertain to the majority of the oil
production volumes produced by Petroflow and approximately 20%
of the natural gas volumes.

Petroflow's current exposure is limited to amounts uncollected
for June and July production up to July 22, 2008 amounting to
approximately US$3.2 million.  Petroflow is not able to quantify
the portion, if any, of the exposure that will be collected, but
in any case the amount is not considered material to Petroflow's
operations and overall financial position.

Ongoing production revenues will be governed by the terms of
Chapter 11 of the US Bankruptcy Code and the Company expects to
be paid under normal industry terms for production in this time
frame.  Petroflow is actively seeking alternative arrangements
with other oil and gas purchasers as well as working with
SemGroup in a plan that may see all debts paid on a timely
basis.  SemGroup listed assets of US$6.14 billion and
liabilities of US$7.53 billion in its US bankruptcy filing.

E. Plains All American

Plains All American Pipeline, L.P. reiterated statements made in
a press release issued July 17, 2008, that it does not expect to
have any material credit exposure to SemGroup, L.P. and its
affiliates.

The trade debt amounts attributed to PAA in such bankruptcy
filings were gross amounts and, as noted in the bankruptcy
filing, are "Subject to Set-Off."  However, the presence of such
amounts in SemGroup, L.P.'s bankruptcy filing (and subsequent
media reports reciting such gross amounts) have precipitated
calls from PAA's stakeholders and customers seeking
clarification.

As indicated in the SemGroup filings, PAA has various
arrangements in place to mitigate credit exposure, such as net-
out agreements that allow for set-off of payables and
receivables between counterparties.

F. TEPPCO Partners

TEPPCO Partners, L.P. confirmed that its subsidiary, TEPPCO
Crude Oil, LLC, is listed as one of the unsecured creditors in
the bankruptcy filing by SemGroup, L.P. and certain of its North
American subsidiaries.  Through an existing netting agreement
for crude oil sold to and purchased from a subsidiary of
SemGroup, TEPPCO's credit exposure has historically been
minimal.  While a review of the bankruptcy filings is still
ongoing, based on historical arrangements TEPPCO does not expect
any future material impact as a result of the SemGroup
bankruptcy nor does it expect any future material credit
exposure to SemGroup.  SemGroup has represented less than 3.0%
of the partnership's current crude oil gathering volumes.

G. Tortoise Capital Advisors

Tortoise Capital Advisors, LLC, the investment adviser for
Tortoise Energy Infrastructure Corp., Tortoise Energy Capital
Corp., and Tortoise North American Energy Corp., has evaluated
the impact of recent adverse developments related to SemGroup,
L.P. Sem Parent is a private, diversified energy midstream
company that transports, stores and markets multiple energy
products.  A subsidiary of Sem Parent is the general partner of
SemGroup Energy Partners, L.P., or SGLP, a publicly traded
master limited partnership that stores and transports crude oil
and asphalt.  On July 21, 2008, Manchester Securities and
Alerian Capital Management assumed control of the general
partner of SGLP.

SGLP derives a substantial portion of its revenues from Sem
Parent.  On July 22, 2008, Sem Parent filed Chapter 11
bankruptcy due to claimed liquidity issues.  SGLP has not filed
for bankruptcy and is not included in Sem Parent's filing.  As a
result of these events, Sem Parent's 8.75% Senior Notes declined
in value from approximately 96.5% of par on July 16, 2008
to approximately 11.5% of par on July 23, 2008.  SGLP's common
unit price traded from a close of US$22.80 per unit on
July 16, 2008 to a close of US$8.00 per unit on July 23, 2008.

TYN owns approximately US$9.3 million par value of Sem Parent's
8.75% Senior Notes.  As of July 16, 2008, TYG, TYY and TYN owned
342,162; 436,774; and 37,000 units of SGLP, respectively.
Combined, the Sem Parent Notes and SGLP units represented 0.69%
of TYG's total assets, 1.27% of TYY's total assets and 4.3% of
TYN's total assets, as of July 16, 2008.

TYN's investment in Sem Parent Notes is expected to represent an
unsecured claim in the Sem Parent bankruptcy.  TYN has ceased
accruing interest income on the Sem Parent Notes and has
reserved against its existing unpaid interest.  The recovery of
the par value and unpaid interest on the Sem Parent Notes is
uncertain at this time.  TYN reflects Sem Parent Notes on its
balance sheet at fair value, as determined by TYN according to
its valuation policy and procedures.

TYN's July 17, 2008 net asset value of US$24.82 reflected the
Sem Parent Notes at 29.5% of par value.

SGLP's board has indicated that it is too early to determine the
appropriate distribution for the quarter.  SGLP operates more
than 1,000 miles of pipeline, and owns or leases more than 13
million barrels of storage and other transportation assets.
"Given the geographic significance of its assets, we continue to
believe SGLP's fee-based energy infrastructure assets retain
intrinsic value and are an important component of the midstream
energy industry," said Tortoise Capital Advisors' Managing
Director Zachary Hamel.

Tortoise Capital Advisors is monitoring the impact the Sem
Parent bankruptcy may have on other portfolio holdings for each
of the funds, and is presently unaware of any material impact or
diminution in value that has occurred as a result of these
events.

"We expect TYG, TYY and TYN to maintain their current
distribution to stockholders and to grow those distributions
over the long term, despite the Sem Parent bankruptcy," said the
funds' Chief Financial Officer, Terry Matlack.  "Although these
investments represented 4.3% of TYN's total assets as of July
16, 2008, we believe TYN's 90.8% distributable cash flow payout
ratio for the six months ended May 31, 2008 should provide
cushion to maintain our distributions.  In addition, we remain
in compliance with all of our leverage coverage ratios."

                         About Sunoco

Sunoco Logistics Partners L.P., headquartered in
Philadelphia, -- http://www.sunocologistics.com/-- is a master
limited partnership formed to acquire, own and operate refined
product and crude oil pipelines and terminal facilities,
including those of Sunoco, Inc.  The Eastern Pipeline System
consists of approximately 1,800 miles of primarily refined
product pipelines and interests in four refined products
pipelines, consisting of a 9.4% interest in Explorer Pipeline
Company, a 31.5% interest in Wolverine Pipe Line Company, a
12.3% interest in West Shore Pipe Line Company and a 14.0%
interest in Yellowstone Pipe Line Company.  The Terminal
Facilities consist of 9.2 million shell barrels of refined
product terminal capacity and 22.8 million shell barrels of
crude oil terminal capacity (including 15.9 million shell
barrels of capacity at the Texas Gulf Coast Nederland Terminal).
The Western Pipeline System consists of approximately 3,700
miles of crude oil pipelines, located principally in Oklahoma
and Texas, a 55.3% interest in Mid-Valley Pipeline Company and a
43.8% interest in the West Texas Gulf Pipe Line Company and a
37.0% interest in the Mesa Pipe Line System.

                        About ARC Energy

ARC Energy Trust is one of Canada's largest conventional oil
and gas royalty trusts with an enterprise value of approximately
US$7.5 billion.  The Trust expects full year 2008 oil and gas
production to average approximately 64,000 barrels of oil
equivalent per day from six core areas in western Canada.
ARC Energy Trust units trade on the TSX under the symbol AET.UN
and ARC Resources exchangeable shares trade under the symbol
ARX.

                   About Crescent Point Energy

Crescent Point Energy Trust (TSX: CPG.un) --
http://www.crescentpointenergy.com/-- offers commodity price
risk management programs.  The Trust hedges (on a rolling three
year basis) crude oil and natural gas prices, along with the
U.S./Canadian dollar exchange rate, to provide stability to
revenues, cash flows and distributions.  The Trust also hedges
interest rates and power prices to provide stability to input
costs.

                   About Petroflow Energy Ltd.

Petroflow Energy Ltd. -- http://www.petroflowenergy.com/-- is
an independent oil and natural gas company that explores,
develops and produces hydrocarbon reserves primarily in the mid-
continent region.

                       About PAA Pipeline

Houston, Texas-based Plains All American Pipeline, L.P. (NYSE:
PAA) -- http://www.paalp.com/-- is a master limited partnership
engaged in the transportation, storage, terminalling and
marketing of crude oil, refined products and liquefied petroleum
gas and other natural gas related petroleum products.  Through
its 50% ownership in PAA/Vulcan Gas Storage LLC, the partnership
is also engaged in the development and operation of natural gas
storage facilities.

                     About TEPPCO Partners

TEPPCO Partners, L.P., (NYSE: TPP) -- http://www.teppco.com/--
has an enterprise value of approximately US$5 billion, is a
diversified energy logistics company with operations that span
much of the continental United States.  TEPPCO owns and operates
an extensive network of assets that facilitate the movement,
marketing, gathering and storage of various commodities and
energy-related products.  Texas Eastern Products Pipeline
Company, LLC, the general partner of TEPPCO Partners, L.P., is
owned by Enterprise GP Holdings and is based in Houston, Texas.

              About Tortoise Capital Advisors, LLC

Tortoise Capital Advisors, LLC is a pioneer in the capital
markets for master limited partnership investment companies and
a leader in closed-end funds and separately managed accounts
focused on MLPs in the energy infrastructure sector.  As of
June 30, 2008, the adviser had approximately US$2.7 billion of
assets under management.

                       About SemGroup L.P.

SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt.  Services include purchasing,
selling, processing, transporting, terminaling and storing
energy.  SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.

SemGroup L.P. and its debtor affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525).  These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil
Gotshal & Manges LLP.  Kurtzman Carson Consultants L.L.C. is the
Debtors' claims agent.  The Debtors' financial advisors are The
Blackstone Group L.P. and A.P. Services LLC.  Margot B.
Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer
LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson &
Corroon LLP, represent the Debtors' prepetition lenders.

The Debtors' consolidated, unaudited financial conditions as of
June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts.  In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.

(SemGoup Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                         *     *    *

On July 25, 2008, the Troubled Company Reported that Fitch
Ratings   downgraded the ratings of SemGroup, L.P., SemCrude
L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all
ratings.  The withdrawn ratings include Issuer default Rating D
assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS
Midstream Co.  Fitch Ratings has downgraded, removed from Rating
Watch Negative, and simultaneously withdrawn (a) SemGroup,
L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s
Senior secured working capital facility to 'CCC' from 'BB-/RR1';
Senior secured revolving credit facility to 'CC' from 'B+/RR1';
and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c)
SemCAMS Midstream Co. (SemCAMS) Senior secured working capital
facility to 'CCC' from 'BB-/RR1'; Senior secured revolving
credit facility to 'CC' from 'B+/RR1'; and Senior secured term
loan B to 'CC' from 'B+/RR1'.

Also, Moody's Investors Service downgraded SemGroup, L.P.'s
Corporate Family Rating to Ca from Caa2, its Probability of
Default Rating to D from Caa3, its senior unsecured rating to C
(LGD 5; 86%) from Ca (LGD 4; 69%), and its first secured bank
facilities to Caa3 (LGD 3; 38%) from B3 (LGD 2; 21%).  These
actions affect rated cross guaranteed debt at parent SemGroup
and its subsidiaries SemCams Holding Company and SemCrude, L.P.

Further, Fitch Ratings lowered the Issuer Default Ratings of
SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. to 'D'
following the bankruptcy petition by SemGroup and most of units
on July 22, 2008.  These ratings are removed from Rating Watch
where they were placed on July 17, 2008.  The bank facility and
securities ratings of SemGroup and units remain on Rating Watch
Negative pending a review of the bankruptcy court petition.


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


* Turkey Ratings Remain Within Tolerable Range, Fitch Says
----------------------------------------------------------
Fitch Ratings has said in a special report that although Turkey
has been affected by several adverse shocks this year, the
agency sees them as within the tolerance of its ratings rather
than warranting negative rating action.  Turkey is rated Long-
term foreign currency Issuer Default rating 'BB-' with Stable
Outlook, Long-term local currency IDR 'BB' with Stable Outlook,
Short-term foreign currency IDR 'B' and Country Ceiling 'BB'.

"Turkey has been hit by several adverse developments this year,
including an inflationary shock and a weakening in its inflation
target, a widening in its current account deficit amid a more
challenging financing environment, a relaxation of its fiscal
framework and an elevation of political tensions," says Edward
Parker, Head of Emerging Europe sovereigns at Fitch.

Inflation has risen to double-digits, at 10.6% in June, leading
Turkey to relax its inflation target.  High inflation is
detrimental to creditworthiness as it increases the risk of
macro-economic volatility, exchange rate and banking crises, and
reduces sovereign debt tolerance.  High oil prices have driven a
widening in the current account deficit, which Fitch forecasts
at 6.5% of GDP this year, up from 5.7% in 2007, while the global
credit crunch will make its financing more challenging.  Rising
inflation and the CAD made it an inauspicious time for the
government to unveil a loosening of fiscal policy, relative to
previous plans, in its new Medium Term Fiscal Framework.
Nevertheless, it remains compatible with a decline in the
government debt/GDP ratio to 30% by end-2012 from 39% at end-
2007.

Another clash between the democratically elected Justice and
Development Party government, which has its roots in political
Islam, and the secular establishment, which was triggered by the
AKP's proposed amendments to the constitution has heightened
political risk.  The outcome and ramifications of the court case
on the closure of the AKP are hard for anyone to predict, but
could have serious consequences.

Some positive news this year was the upward revision of GDP by a
third, which has improved its credit metrics.  "Turkey's
sovereign ratings are underpinned by fundamentals including the
highest income per capita in the 'BB' range, an open and diverse
economy, declining public debt ratios, a good debt service
record and debt management capacity, and a banking system and
business climate that compare favorably with its rated peers,"
says Mr Parker.

"We currently see recent adverse developments as consistent with
our decision to revise the Outlook on Turkey's Long-term foreign
currency rating to Stable from Positive in May 2007, rather than
presaging a downgrade to the single 'B' rating category," says
Mr Parker.  Fitch believes the Turkish economy is fundamentally
stronger and more resilient to shocks than it was in the first
half of the decade, when it was rated in the single 'B' range.
"However, risks have increased and negative rating action is
possible if political instability, balance of payment pressures
or the inflation outlook deteriorate to the extent that they
more seriously affect investor sentiment, macroeconomic
stability, and fiscal and external financing."


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


ALFA BANK: Moody's Assigns LT Foreign Currency Rating of Ba3
------------------------------------------------------------
Moody's Investors Service has assigned a long-term foreign
currency rating of Ba3 to Alfa Bank Ukraine's upcoming senior
unsecured notes expected to be issued by Ukraine Issuance Plc, a
UK-based special-purpose company.  The notes will be issued on a
limited recourse basis with the sole purpose of financing senior
unsecured loans to Alfa Bank Ukraine.

The tenor of the notes is expected to be five years with a put
option after 3 years.  The amount and interest rate of the notes
will be determined by market conditions.  The outlook for the
rating is stable.

According to Moody's, the Ba3 rating is based on the fundamental
credit strength of ABU -- currently rated Ba3/Not
Prime/E+/Aa1.ua -- and does not incorporate any potential
systemic support from the Ukrainian authorities in case of need.
It does, however, incorporate a moderate probability of parental
support from the bank's affiliated companies.

Moody's also notes that, according to the terms of the program,
ABU will have to comply with a number of covenants such as a
negative pledge, a limitation on mergers and consolidations as
well as restrictions on mergers, disposals, transactions with
affiliates, restricted payments and maintenance of capital
adequacy.  According to the rating agency, the likelihood of any
of the above covenants being triggered is relatively low.
However, if any such were to occur, it could potentially have
adverse liquidity implications for the bank and might exert
severe downward pressure on its ratings.  ABU is required to
maintain full compliance with prudential supervision ratios and
other requirements of the National Bank of Ukraine.

Moody's cautions that the transaction also has an embedded
rating trigger whereby the notes will become payable if, within
90 days after a change of control of ABU, its ratings are
downgraded by one or more notches or publicly placed under
review for possible downgrade.  Moody's notes that a change of
control of ABU will be viewed as a risk factor; if the
noteholders' put option were to be exercised, this could result
in the need to repay a sizable obligation, thus placing a burden
on the bank's financial resources and potentially destabilizing
its ratings further.

                       About Alfa Bank

Alfa Bank Ukraine is headquartered in Kiev, Ukraine, and
reported total assets of US$2.6 billion and net income of
US$11.85 million under IFRS as of 31 December 2007.


AT-OIL LLC: Proofs of Claim Deadline Set August 10
--------------------------------------------------
Creditors of LLC AT-Oil (code EDRPOU 32963293) have until
Aug. 10, 2008, to submit proofs of claim to:

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

The Economic Court of Zaporozhje commenced bankruptcy
supervision procedure on the company on June 9, 2008.  The case
is docketed as 12/37/08.

The Debtor can be reached at:

         LLC AT-Oil
         Kosatstvo of Zaporozhye Str. 11
         69097 Zaporozhje
         Ukraine


BMU-7 OJSC: Creditors Must File Proofs of Claim by August 10
-------------------------------------------------------------
Creditors of OJSC BMU-7 (code EDRPOU 01273148) have until
Aug. 10, 2008, to submit proofs of claim to:

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

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on June 27, 2008.
The case is docketed as 2/241/08.

The Debtor can be reached at:

         OJSC BMU-7
         General Karpenko Str. 2/1
         54038 Nikolaev
         Ukraine


CHEMPET LLC: Creditors Must File Proofs of Claim by August 10
-------------------------------------------------------------
Creditors of LLC Chempet (code EDRPOU 35349223) have until
Aug. 10, 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 proceedings
against the company after finding it insolvent on July 1, 2008.
The case is docketed as B-19/95-08.


HERMES PLUS: Creditors Must File Proofs of Claim by August 10
-------------------------------------------------------------
Creditors of LLC Hermes Plus (code EDRPOU 32006218) have until
Aug. 10, 2008, to submit proofs of claim to:

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

The Economic Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent  on
June 23, 2008.  The case is docketed as 19/116/08.

The Debtor can be reached at:

         LLC Hermes Plus
         Central Boulevard 4
         69600 Zaporozhje
         Ukraine


HERMES-SECONDARY METALS: Creditors Must File Claims by August 10
----------------------------------------------------------------
Creditors of LLC Hermes-Secondary Metals (code EDRPOU 33413589)
have until Aug. 10, 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 proceedings
against the company after finding it insolvent on July 4, 2008.
The case is docketed as B-39/62-08.

The Debtor can be reached at:

         LLC Hermes-Secondary Metals
         Oschepkov Str. 52
         Vysoky
         Kharkov
         Ukraine


INTERREGIONAL RESOURCES: Creditors Must File Claims by August 10
-------------------------------------------------------------
Creditors of LLC Firm Interregional Resources Ltd. (code EDRPOU
13357229) have until Aug. 10, 2008, to submit proofs of claim
to:

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

The Economic Court of Volin commenced bankruptcy proceedings
against the company after finding it insolvent on June 19, 2008.
The case is docketed as 7/83-B.

The Debtor can be reached at:

         LLC Firm Interregional Resources Ltd.
         8th of March Str. 1
         Lutsk Volin
         Ukraine


INVEST-MARKET LLC: Creditors Must File Claims by August 10
----------------------------------------------------------
Creditors of LLC Invest-Market (code EDRPOU 34490948) have until
Aug. 10, 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 25, 2008.
The case is docketed as 24/123-b.

The Debtor can be reached at:

         LLC Invest-Market
         Saperno-Slobodskaya Str. 25
         03039 Kiev
         Ukraine


KRASNODON COAL: Creditors Must File Proofs of Claim by August 10
----------------------------------------------------------------
Creditors of State OJSC Krasnodon Coal Building have until
Aug. 10, 2008, to submit proofs of claim to:

         The Economic Court of Lugansk
         Geroiv VVV Square 3a
         91000 Lugansk
         Ukraine

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on June 24, 2008.
The case is docketed as 21/26b.

The Debtor can be reached at:

         State OJSC Krasnodon Coal Building
         Pervokonnaya Str. 1
         Krasnodon
         Lugansk
         Ukraine


NIK-INDUSTRIAL-BUILDING-INVESTMENT: Claims Due by August 10
-----------------------------------------------------------
Creditors of OJSC Nik-Industrial-Building-Investment (code
EDRPOU 271505) have until Aug. 10, 2008, to submit proofs of
claim to:

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

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on June 27, 2008.
The case is docketed as 2/240/08.


UKRAINIAN INDUSTRY: Creditors Must File Claims by August 10
-----------------------------------------------------------
Creditors of LLC Ukrainian Industry Delivery (code EDRPOU
31988757) have until Aug. 10, 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 July 2, 2008.
The case is docketed as 44/89-b.

The Debtor can be reached at:

         LLC Ukrainian Industry Delivery
         Voskresenskaya Str. 7
         02125 Kiev
         Ukraine


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


BRITISH AIRWAYS: In Talks with Iberia SA over Possible Merger
-------------------------------------------------------------
British Airways Plc and Iberia Lineas Aereas de España SA are
holding talks with a view to an all-share merger between the two
companies.  The negotiations are supported unanimously by the
boards of both companies.

The British Airways and Iberia brands would be retained as part
of a combined group.

Iberia's chairman and chief executive, Fernando Conte, said: "A
merger would be good news for our customers and enhance our
existing relationship.  We've worked together for nearly 10
years and a tie-up would build on that success.  It would also
strengthen the oneworld alliance and further develop Madrid's
position as the European gateway to Latin America".

British Airways' chief executive, Willie Walsh, said: "The
aviation landscape is changing and airline consolidation is long
overdue.  The combined balance sheet, anticipated synergies and
network fit between the airlines make a merger an attractive
proposition, particularly in the current economic environment.
We've had a successful relationship with Iberia for a decade and
are confident that both companies' shareholders would benefit
from the proposed tie-up".

British Airways acquired a 9% shareholding in Iberia in 1999 and
has recently increased its shareholding to 13.15% .  Iberia has
announced that it has recently acquired a 2.99% direct
shareholding in British Airways and financial exposure to a
further 6.99% through contracts for difference linked to British
Airways' share price.  The airlines' shareholdings reinforce the
mutual interest of both companies in each other.

It is expected that it will take several months to reach
agreement on the terms of the merger and to finalize a joint
business and integration plan for the combined group.

Both parties are confident of securing regulatory approval.  The
European Union has already granted British Airways and Iberia
approval to co-operate widely.

                         About Iberia SA

Headquartered in Madrid, Iberia Lineas Aereas de Espana SA
-- http://www.iberia.com/-- engages in the transport of
passengers and cargo, aircraft maintenance and handling services
in airports.  The Transport of Passengers and Cargo division
operates 150 aircrafts.  It provides transport services to the
countries in Europe and Latin America.  Iberia Lineas Aereas de
Espana SA is a member of the Oneworld alliance.

                    About British Airways

Headquartered in Harmondsworth, England, British Airways Plc
-- http://www.ba.com/-- operates of international and domestic
scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.   The British Airways group consists of British
Airways plc and a number of subsidiary companies including in
particular British Airways Holidays Ltd. and British Airways
Travel Shops Ltd.   BA has offices in India and Guatemala.

                        *     *     *

British Airways Plc carries a senior unsecured debt rating of
Ba1 from Moody's Investors' Service with a stable outlook.
Ratings apply to date.


BUILD ON: Colin Nicholls Leads Liquidation Procedure
----------------------------------------------------
Colin Nicholls of Tenon Recovery was appointed liquidator of
Build On Ltd. on July 10, 2008, for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Build On Ltd.
         Temeside
         Temeside Industrial Estate
         Ludlow
         Shropshire
         SY8 1PA
         England


COVENTRY FOOTBALL: Calls in Liquidators From Moore Stephens
-----------------------------------------------------------
Nigel Price and Colin Prescott of Moore Stephens LLP were
appointed joint liquidators of Coventry Football Ltd. on July 2,
2008, for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Coventry Football Ltd.
         c/o Moore Stephens LLP
         Beaufort House
         94-96 Newhall Street
         Birmingham
         B3 1PB
         England


CURTIS FINE: Goes Into Administration; 180 Jobs Affected
--------------------------------------------------------
Curtis Fine Papers has gone into administration after efforts to
sell the business failed resulting to the loss of 180 jobs,
Evening Telegraph reports.

Curtis Fine Papers' directors, Evening Telegraph relates,
appointed Blair Nimmo and Gary Fraser of KPMG Restructuring as
joint administrators of the company.

According to Mr. Nimo, Evening Telegraph discloses, Curtis Fine
Papers, which suffered significant losses in recent years,
was hit by "a number of external factors, including significant
increases in energy and raw material costs and a general decline
in the availability of credit," although it experienced
improvement in trading over the last year.

Meanwhile, Mr. Nimmo stated an asset recovery exercise is likely
to take place if no party is interested to buy the business as a
going concern, Evening Telegraph reveals.

Headquartered in Guardbridge, Scotland, Curtis Fine Papers --
http://www.curtisfinepapers.com/-- specializes in the
manufacture and supply of quality uncoated fine papers.


DECO SERIES: S&P Affirms BB Rating on Class H CMBS Notes
--------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its credit
ratings on all the classes of commercial mortgage-backed notes
issued by DECO Series 2005-Pan Europe 1 PLC, based on data up
to and including the April 2008 servicer report.

The affirmation follows a review of all the remaining loans in
this transaction.  The servicer report shows no significant
changes in the performance of five out of six loans since
closing.  For the remaining loan (Gewerbepark), the
deterioration of the net operating income produced by the
property was factored into S&P's initial loan assessment.

The transaction, which closed in August 2005, was originated
and arranged by Deutsche Bank AG and initially comprised seven
loans.  The largest loan (Centro loan), which accounted for
more than 50% of the pool, prepaid on the April 2007 interest
payment date.

The remaining six loans are secured by retail, office, and
residential properties in Germany (65% by outstanding loan
balance) and Switzerland (35%).

DECO Series 2005-Pan Europe 1 PLC:

  -- EUR897.066 Million Commercial Mortgage-Backed Variable
     And Floating-Rate Notes

Ratings Affirmed:

   Class            Rating
   -----            ------
    A2               AAA
    X                AAA
    B                AAA
    C                AAA
    D                AAA
    E                AA+
    F                BBB
    G                BBB
    H                BB


DIRECT ACCESS: Brings in Liquidators from KPMG
----------------------------------------------
Paul Andrew Flint and Brian Green of KPMG LLP were appointed
joint liquidators of Direct Access Products Ltd. on July 8,
2008, on for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Direct Access Products Ltd.
         The Pig Pen
         Mill Farm
         Farlow
         Worcestershire
         England


FLARETECH LTD: Joint Liquidators Take Over Operations
-----------------------------------------------------
Ian J. Gould and Brian J. Hamblin of PKF (U.K.) LLP were
appointed joint liquidators of Flaretech Ltd. on July 4, 2008,
for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Flaretech Ltd.
         c/o PKF (U.K.) LLP
         New Guild House
         45 Great Charles Street
         Queensway
         Birmingham
         B3 2LX
         England


FISHERBAY LTD: Claims Filing Period Ends October 31
---------------------------------------------------
Creditors of Fisherbay Ltd. have until Oct. 31, 2008, to send
their full names, address and descriptions, full particulars of
their debts or claims, and the names and addresses of their
Solicitors (if any) to:

         Simon Paterson
         Liquidator
         Moore Stephens LLP
         First Floor
         Victory House
         Quayside
         Chatham Maritime
         Kent
         ME4 4QU
         England

Ian J. Gould and Brian J. Hamblin of PKF (U.K.) LLP were
appointed joint liquidators of the company on July 4, 2008, for
the creditors' voluntary winding-up proceeding.


INTERPUBLIC GROUP: S&P Rates US$335MM Credit Facility at B+
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its issue-level and
recovery ratings to Interpublic Group of Cos. Inc.'s
US$335 million unsecured revolving credit facility due 2011.
This senior unsecured debt was assigned an issue-level rating of
'B+' and a recovery rating of '4', indicating our expectation of
average (30%-50%) recovery in the event of a payment default.

The 'B+' corporate credit rating reflects Interpublic's high
leverage, relatively weak discretionary cash flow, and
profitability measures that are below those of peers.  The
company's large portfolio of advertising and communications
services brands, its broad geographic and business diversity,
its return to organic revenue growth after a period of net
client losses, and very strong cash balances partially offset
these factors.  The New York City-based global advertising
agency holding company had approximately US$2.2 billion in debt
outstanding as of March 31, 2008.


PATIENTLINE PLC: Calls in Administrators; Sells Unit to Hospedia
----------------------------------------------------------------
Patientline plc had instructed its lawyers to file a notice of
intention to appoint administrators over the company and its
shares were subsequently suspended.

The Board has continued to work with its lenders with the
objective on finding a resolution to the level of debt in the
company.  However, having concluded a detailed review of options
and considering the options available to it the Board has now
concluded, with regret, that it is necessary for the company to
file for administration.

The directors of the company have appointed Nicholas James
Dargan and Nicholas Guy Edwards of Deloitte & Touche LLP as
joint administrators of the company, pursuant to paragraph 22 of
Schedule B1 to the Insolvency Act 1986.

A request has been made to the U.K. Listing Authority that the
listing of the company's ordinary shares on the Official List of
the U.K. Listing Authority and the admission of its ordinary
shares to trading on the main market for listed securities of
the London Stock Exchange plc be canceled.  These cancellations
took effect at 8.00 a.m. on Monday, July 28, 2008.

The company acting by the joint administrators has entered into
a share purchase agreement and has sold the company's subsidiary
Patientline U.K. Limited to a newly incorporated company
Hospedia Limited.

Shareholders should note that no value will be attributable to
ordinary shares following the sale of Patientline U.K. Limited.

Inquiries in relation to the administration of Patientline plc
should be addressed to Jamie Harley on 020 7303 4820, or Vimala
Camadoo on 020 7007 5098.

Patientline -- http://www.patientline.co.uk/-- provides
communication services to patients and specialist medical
services to hospitals via bedside systems.


RED CITY: Goes Into Administration; Stadium Project Pushes Ahead
----------------------------------------------------------------
Red City Developments, the developer of the Salford City Reds
rugby league club stadium, has been placed into administration,
Chris Barry of Manchester Evening News reports.

Red City Developments, the report says, called in Manchester
insolvency firm Begbies Traynor after Stephen Kirby, who holds a
16% stake in the company, ran into financial issues.

The Salford City Reds, however, reiterated the GBP35 million,
22,000-seater capacity stadium, which is part of a GBP130
million regeneration project, will push through in time for
2010, Manchester Evening News adds.

The report relates that according to most recent accounts filed
with Companies House, Red City owed GBP5.7 million to Peel
Investments (North), a subsidiary of Peel Holdings.


SEVERSTAL OAO: UK FSA Okays US$1.25 Bln Debt Issuance Prospectus
----------------------------------------------------------------
The U.K. Financial Services Authority, in its capacity as
competent authority under the Financial Services and Markets Act
2000 as a prospectus for the purposes of Directive 2003/71/EC,
has approved the Prospectus that relates to the issuance by, but
with limited recourse to, Steel Capital SA, a company
incorporated under the laws of Luxembourg as a societe anonyme,
of US$1,250,000,000 9.75% Notes due 2013 for the sole purpose of
financing a US$1,250,000,000 9.75% five-year loan to OAO
Severstal.

The debt issuance prospectus can be viewed free-of-charge at:
            http://ResearchArchives.com/t/s?3028

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

                        *     *     *

OAO Severstal continues to carry Ba2 Corporate Family, Senior
Unsecured Debt and Probability-of-Default ratings from Moody's
Investor Service, which said the the outlook on all ratings is
stable.  Moody's raised the company's ratings to its current
level in October 2007.

The company also carries BB long-term Foreign and Local Issuer
Credit ratings from Standard & Poor's, which said the outlook is
stable.

Severstal carries BB- Issuer Default and Senior Unsecured
ratings from Fitch, which said the outlook is positive.


* S&P Says Euro Cement & Building Materials Biz Face Downturn
-------------------------------------------------------------
The sharp residential construction slump in the United States,
alongside the now unfolding cyclical downturn in Western
European residential markets against abruptly softening GDP
growth, are the major themes in the European cement and building
materials industry, said Standard & Poor's Ratings Services in
its industry report card "European Cement And Building Materials
Groups Face Construction's Cyclical Downturn But Find Growth In
Developing Markets," published July 25, 2008, on RatingsDirect.

"A series of signs suggests it may be getting tougher for
industry players to offset the combination of grim U.S. market
conditions and the gradually steepening slide in West European
markets through business in still-buoyant markets in developing
economies," said S&P's credit analyst Xavier Buffon.  "In
addition to broadly expected sharp falls in previously very hot
markets such as Spain and Ireland, the extent and pace of the
U.K. housing market drop has exceeded expectations.  The Italian
economy is close to a standstill, while the French housing
market -- although still more resistant -- is now seemingly
heading for a sharper-than-anticipated decline.  Even the German
residential segment is softer than anticipated."

The sharp cyclical downturn in construction is being compounded
by the softening of commercial construction markets, with
pricing power decreasing at a time when cost pressures remain
intense, given high energy prices.  This is reminiscent of the
last cyclical downturn in the early 2000s, when companies
generally embarked on heavy capital outlays to build new
capacities and/or to make large acquisitions.

"In the current backdrop, companies' resulting needs to cut
discretionary spending to safeguard adequate financial
structures, or to not fall short of expected improvements in key
metrics, are consequently becoming more pressing," said
Mr. Buffon.

Not all the newsflow is negative, though.  Companies continue to
draw traction from buoyant business in developing economies,
with large, rated groups set to reap the benefits in these
regions.  On the whole, these markets still provide a welcome
growth source.

Rating activity in the sector has increased in the past six
months, clearly skewing negatively with four downgrades and one
outlook revision to negative from stable versus only one
positive rating action.


* Chadbourne Elects Partners from London and New York Offices
--------------------------------------------------------------
Chadbourne & Parke LLP has announced that David Gallai, Jennifer
Handz, Dennis Hopkins and Scott Naidech have been named LLP
partners in the Firm.

Managing Partner Charles K. O'Neill, said, "These four new
partners exemplify the high quality of attorneys across
Chadbourne's practices.  They have impressed clients and
colleagues with their outstanding legal skills and dedication to
client service.  I have followed their careers closely and
congratulate each of them on this major achievement."

Jennifer Handz, 45, London Office, Russia and the CIS.
Ms. Handz is a banking and finance specialist with a broad range
of experience in project finance, secured and unsecured lending
(including acquisition financing), equity financing and
restructuring focusing on Russia and the CIS, as well as central
and eastern Europe.  She has represented lenders and borrowers
on transactions in the property, telecommunications, oil and
gas, municipal infrastructure, steel and manufacturing sectors.
Ms. Handz had been an MNP partner in Chadbourne & Parke (a
multinational partnership) in London.  Prior to joining the Firm
in 2006, she had been a senior counsel with the European Bank
for Reconstruction and Development in London.  Ms. Handz
received both an LL.B. and a B.Juris. from the University of
Western Australia in 1985.

Mr. Gallai, 34, New York Office, Employment and Employee
Benefits.  Mr. Gallai practices in the areas of employment
counseling, executive compensation, and employee benefits.  He
advises management on issues such as compliance with anti-
discrimination, employee-leave, and related statutes, reductions
in force, workplace policies and procedures, employee discipline
and discharge, and wages and hours issues.  He also advises
clients on a broad range of executive compensation and employee
benefit matters, including non-qualified deferred compensation
arrangements.  He was a Chadbourne summer associate in 1998 and
has been a Chadbourne associate since 1999.  Mr. Gallai received
a B.A., cum laude, from the University of Pennsylvania in 1996
and a J.D., cum laude, from the Georgetown University Law Center
in 1999.

Mr. Hopkins, 41, New York Office, Intellectual Property.  Mr.
Hopkins focuses his practice on all aspects of intellectual
property, with an emphasis on patent, copyright and trade secret
litigation.  He has significant experience in all phases of IP
litigation, including mediations, trials and appeals.  In
addition, Mr. Hopkins' practice includes counseling clients on
issues relating to litigation strategies and intellectual
property management.  His IP experience also includes drafting
and negotiating agreements and licenses, preparing written
opinions, and providing general IP counseling to clients,
including counseling on patent, copyright, trade secret and
trademark matters.  Prior to joining Chadbourne, Mr. Hopkins was
an associate with Orrick, Herrington & Sutcliffe LLP in New
York.  He received a B.S. in nuclear physics/engineering from
the United States Military Academy at West Point in 1988 and a
J.D. from Rutgers University School of Law in 1998.

Mr. Naidech, 35, New York Office, Corporate.  Mr. Naidech
represents a broad array of private fund sponsors in the
structuring, establishment and operation of their funds.  He has
formed buyout, growth capital, real estate and venture capital
funds ranging in size from US$100 million to over US$16 billion
of committed capital, including both geography-focused and
industry-focused funds.  In addition to private funds, Mr.
Naidech advises clients on a number of other complex business
transactions, including leveraged buyouts, recapitalizations,
acquisitions and divestitures, as well as general corporate
matters.  Prior to joining Chadbourne as counsel, he practiced
with Kirkland & Ellis LLP and Linklaters LLP, where he worked
extensively with a number of prominent fund sponsors.  Mr.
Naidech received a B.A. from Emory University in 1994, a J.D.
from Temple University's Beasley School of Law in 1997 and an
LL.M. from the Georgetown University Law Center in 1999.

                   About Chadbourne & Parke LLP

Jeadquartered in New York City, Chadbourne & Parke LLP --
http://www.chadbourne.com/--  is an international law firm that
provides a full range of legal services, including mergers and
acquisitions, securities, project finance, private funds,
corporate finance, energy, communications and technology,
commercial and products liability litigation, securities
litigation and regulatory enforcement, special investigations
and litigation, intellectual property, antitrust, domestic and
international tax, insurance and reinsurance, environmental,
real estate, bankruptcy and financial restructuring, employment
law and ERISA, trusts and estates and government contract
matters.

Major geographical areas of concentration include Central and
Eastern Europe, Russia and the CIS, the Middle East and Latin
America.  The Firm has offices in New York, Washington, DC, Los
Angeles, Houston, Mexico City, London (a multinational
partnership), Moscow, St. Petersburg, Warsaw, Kyiv, Almaty,
Dubai and Beijing.


* KPMG Survey Says More Than Half of UK Businesses Eye Job Cuts
---------------------------------------------------------------
The number of British businesses who are planning on making job
cuts in response to the increasingly dour economic climate has
almost doubled over the last three months, according to KPMG's
quarterly National Business Confidence Survey.

KPMG's survey of senior executives in both public and private
sector organizations indicates that more than half (53%) now
plan to reduce their staff headcount over the coming months,
with a similar number (52%) planning to implement recruitment
freezes.  Back in March 2008 when the same organizations were
questioned for KPMG by Opinion Leader Research, only 29% were
looking at job cuts as a cost-saving measure.

Malcolm Edge, regional chairman for KPMG in the North,
commented: "The clouds that were on the horizon when we first
conducted this survey back in early spring are now right
overhead, with businesses now feeling the impact of this so-
called 'perfect storm' of rising inflation, tightening credit
conditions and plummeting consumer confidence.  With six out of
ten businesses looking to cut costs, staff redundancies may seem
like the obvious, albeit painful, solution.  The widespread
redundancy programs we have already seen in the financial
services and housebuilding sectors may therefore just be a small
sign of things to come."

Malcolm Edge continued: "It is particularly interesting to note
that eighty percent of the organizations who took part in our
survey were based outside London, signifying that the credit
crunch may finally have hit home across the U.K. regions.  There
were certainly arguments in some quarters at the beginning of
the year that it was primarily the City of London that had been
caught in the eye of the storm, and that the rest of the British
economy may escape relatively unscathed.  However, there's now
no denying that we're all in this together, possibly for the
long haul."

Unsurprisingly, the general mood of British business has
significantly darkened over the course of the quarter, with 75%
of executives confirming that their organization has been
negatively impacted by the credit crunch.  Indeed, only 40% of
people surveyed now feel optimistic about their own company’s
prospects for the forthcoming year, compared to 60% who were
feeling bullish in March.

Furthermore, organizations certainly seem resigned to the fact
that they could be in the doldrums for some time to come, with
56% expecting the current economic conditions to have a negative
impact on U.K. business for one to two years, with a further 16%
thinking that it will be between two and five years before we
see an upturn in fortunes.

Other key findings of the survey include:

    * Rising inflation remains the greatest concern for most
      organizations, with 77% believing it will spark increases
      in costs, 70% believing it will hit profit margins and a
      further 67% expecting it to prompt higher wage demands
      from staff.

    * The majority (52%) want the Bank of England to hold
      interest rates at the current level, with more than a
      third (35%) taking the view that no-one has benefited from
      previous rate cuts.

    * However, since last quarter's survey there has been a fall
      from 55% to 41% in those who want interest rates to be
      cut.

    * Nevertheless, only seven percent think interest rates
      should be increased.

    * Although 61% of organizations have faced an increase in
      the cost of credit, the vast majority (84%) claim to be
      not experiencing any financing difficulties at all.

    * Furthermore, more than half believe their rate of capital
      expenditure will remain at the same levels over the coming
      year.

Malcolm Edge comments: "In tough times, being nimble can be
crucial to an organization's survival.  Those businesses that
have taken steps already to reduce costs and improve cash flow
are to be applauded as these may have averted trouble further
down the line.  Conversely, I would say to those who haven't
altered their strategy that a "business as usual" position is
certainly not the one to assume; far better for management to
interrogate their forecasts, talk to their customers, question
their spending and analyze their use of working capital."

He continues: "Organizations should also be seeking out new
opportunities, either by developing new products or by tapping
into new markets.  For instance, more than two thirds of
respondents to our survey (69%) believe that U.K. business is
competitive within Europe – something that is no doubt sparked
by the current strength of the Euro against the pound.  With the
eurozone already buying approximately 60% of U.K. exports, and
with the increasing purchasing power of new and emerging markets
such as India and China, there are certainly opportunities out
there to be grabbed by those who are fleet of foot."


                            *********

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-
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Agravante, Julybien Atadero, Marie Therese Profetana 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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                 * * * End of Transmission * * *