TCREUR_Public/080806.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, August 6, 2008, Vol. 9, No. 155

                            Headlines


A U S T R I A

COMPACTHAUS LLC: Claims Registration Period Ends August 19
DCS LLC: Claims Registration Period Ends August 21
OPEX LLC: Claims Registration Period Ends August 13
TANCZOS KEG: Claims Registration Period Ends August 15
TFM LLC: Claims Registration Period Ends August 22


F R A N C E

ALCATEL-LUCENT: Inks Deal to Build EIG Submarine Cable System
THOMSON SA: S&P Junks Sub Perpetual Notes Rating to CCC From B-


G E R M A N Y

DOLCE GMBH: Claims Registration Period Ends August 14
ERASW MICROSYSTEMS: Claims Registration Period Ends August 14
EUROPE FRESH: Claims Registration Period Ends August 14
FEUER RAUM: Claims Registration Period Ends August 14
GESELLSCHAFT FUER KLIMA: Claims Registration Period Ends Aug. 13

HERTIE GMBH: Files for Insolvency After Restructuring Talks Fail
HH-SPORT 04: Claims Registration Period Ends August 13
OEKO-CONSENS GEMEINNUETZIGE: Claims Filing Period Ends August 13
QUALITY SYSTEMTECHNIK: Claims Registration Period Ends Aug. 13
SA-BLITZ-BAU GMBH: Claims Registration Period Ends August 13

VISTEON CORP: June 30 Balance Sheet Upside-Down by US$207 Mln
WESTLB AG: Managing Board's Restructuring Plan Approved
WESTLB AG: Names Two New Members to the Managing Board


I R E L A N D

MAGNOLIA FINANCE: Fitch Cuts Ratings on Five Notes Classes to CC


I T A L Y

ALITALIA SPA: Italy Denies Extraordinary Administration Plans


K A Z A K H S T A N

ADK LLP: Creditors Must File Claims by September 12
ARMAN & CO: Claims Deadline Slated for September 18
ASTANA KAZ: Claims Filing Period Ends September 18
FASAD STROY: Creditors' Claims Due on September 12
GAS SERVICE: Creditors Must File Claims by September 12

INTRO-LTD LLP: Claims Deadline Slated for September 17
SIBIRYACHKA LLP: Claims Filing Period Ends September 12
SKS-OIL LLP: Creditors' Claims Due on September 18
TERMINAL NS: Claims Registration Ends September 12


K Y R G Y Z S T A N

PS CREATION: Creditors Must File Claims by September 11


N E T H E R L A N D S

BRIT ALLIANCE: Fitch Trims Rating on US$30 Mln A Notes to CC
CONEXANT SYSTEMS: Posts USUS$132.5MM Capital Deficit at June 27


R O M A N I A

PETROLSUB BALC: Liquidator Postpones Tender to August 18


R U S S I A

CB MOSKOMMERTSBANK: Fitch Assigns Individual 'D/E' Rating
EMI-VOSTOK LLC: Court Sets Supervision Hearing November 11
MINERAL WATER: Creditors Must File Proofs of Claim by August 5
MOSCOW OBLAST: S&P Affirms BB- Debt Rating on Amortizing Bonds
PRIVOLZHSKOE CAR: Court Starts Bankruptcy Supervision Procedure

TEYKOVSKAYA PRINTING: Court Starts Bankruptcy Supervision
VOLGATELECOM OJSC: Creates Eight-Member Management Board
VYAZNIKOVSKAYA FUEL: Creditors Must File Claims by August 5
WINE CJSC: Creditors Must File Proofs of Claim by August 5


S W E D E N

FORD MOTOR: Reports Strong Sales for Focus Model
FORD MOTOR: Fitch Chips Issuer Default Rating to 'B-' from 'B'


S W I T Z E R L A N D

FANAG DIRECT: Creditors Have Until August 31 to File Claims
HIBERNIA HOLDING: September 15 Set as Deadline to File Claims
HOUSE OF SAND: Creditors Must File Proofs of Claim by August 31
MC-RECORDS JSC: Deadline to File Proofs of Claim Set August 31
NIFFEL JSC: Proofs of Claim Filing Deadline is August 31

POLY-STEEN LLC: Creditors' Proofs of Claim Due by August 20
S. SANSO: Creditors Have Until Sept. 8 to File Proofs of Claim
SARATOGA WATTWIL: September 10 Set as Deadline to File Claims
SEMGROUP LP: 18 Parties Balk at US$250 Mln BofA DIP Financing
THOMAS ZIMMERMANN: Creditors Must File Claims by August 21


U N I T E D   K I N G D O M

BRITISH ENERGY: Centrica in Talks with Third Party Over Stake
CHESAPEAKE CORP: Develops Refinancing Plan for Liquidity Needs
CHESAPEAKE CORP: Posts US$13.38MM Net Loss for 2nd Quarter 2008
DEAM DOORS: Brings in Liquidators from Tenon Recovery
DJ LITT: Sportman Gun Centre Buys Firm Out of Administration

DUN & BRADSTREET: Posts US$515.2MM Capital Deficit at June 30
JAK TAVERS: Goes Into Liquidation; Faces VAT Bills
LAWSON'S BUILDING: Calls in Liquidators from Tenon Recovery
MILLENNIUM REPRO: M. C. Bowker Leads Liquidation Procedure
NORTHERN ROCK: Posts GBP585.4MM Pre-Tax Loss for First Half 2008

NORTHERN ROCK: Names Andy Tate as Debt Management Director
NORTHERN ROCK: Two Non-Executive Directors Join Board
RJR CATERING: Joint Liquidators Take Over Operations
SISTER RAY: Goes Into Administration
TARTAN FILMS: Palisades & Media Asia in Dispute Over Film Rights   

SEA CONTAINERS: Accused by Asociacion Peruana of Misstatements
WRAPIT PLC: Brings in Administrators from KPMG; Seeks Buyer

* S&P Says Downgrades Will Likely Continue for European Credits
* Fitch: Drop in Q208 UK Personal Insolvencies Positive News


                            *********


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


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

         Dr. Franz Seidl
         Schloss 4/1
         2542 Kottingbrunn
         Germany
         Tel: 02252/71 199
         Fax: 02252/71 199/20
         E-mail: ra-f.seidl@teletronic.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Sept. 2, 2008, for the
examination of claims at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Kottingbrunn, Austria, the Debtor declared
bankruptcy on June 25, 2008, (Bankr. Case No. 11 S 68/08y).


DCS LLC: Claims Registration Period Ends August 21
--------------------------------------------------
Creditors owed money by LLC DCS have until Aug. 21, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Dr. Karl Schirl
         Krugerstrasse 17/3
         1010 Vienna
         Austria
         Tel: 513 22 31
         Fax: 513 22 31 1
         E-mail: dr.karl.schirl@der-rechtsanwalt.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Sept. 4, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 25, 2008, (Bankr. Case No. 5 S 63/08m).


OPEX LLC: Claims Registration Period Ends August 13
---------------------------------------------------
Creditors owed money by LLC Opex have until Aug. 13, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Dr.jur. Ilse Korenjak
         Gusshausstrasse 6
         1040 Vienna
         Austria
         Tel: 512 21 02
         Fax: 512 21 02-20
         E-mail: office@buresch-korenjak.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on Aug. 27, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 26, 2008, (Bankr. Case No. 4 S 98/08a).


TANCZOS KEG: Claims Registration Period Ends August 15
------------------------------------------------------
Creditors owed money by KEG Tanczos have until Aug. 15, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Dr. Karl Mayer
         Wiener Strasse 46
         2500 Baden
         Austria
         Tel: 02252/84677
         Fax: 02252/45818
         E-mail: ra.karl.mayer@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Aug. 28, 2008, for the
examination of claims at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Moellersdorf, Austria, the Debtor declared
bankruptcy on July 3, 2008, (Bankr. Case No. 10 S 68/08s).


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

         Michael Ludwig Lang
         Schuettelstrasse 55
         1020 Vienna
         Austria
         Tel: 72 577
         Fax: 72 577 577
         E-mail: michael.lang@blw-legal.com

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Sept. 5, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1607
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 25, 2008, (Bankr. Case No. 28 S 93/08t).


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


ALCATEL-LUCENT: Inks Deal to Build EIG Submarine Cable System
-------------------------------------------------------------
Alcatel-Lucent has signed a contract to deploy the Atlantic-
Mediterranean segment of the 15,000 km, Europe India Gateway
submarine cable system.  EIG is the first direct, high-bandwidth
optical-fiber submarine cable system from the United Kingdom to
India, and will significantly enhance capacity and diversity
between the countries and territories of three continents.  With
completion scheduled in the second quarter of 2010, EIG will
deliver an ultimate capacity of up to 3.84 terabits per second
to provide upgradeable transmission facilities that support
Internet, e-commerce, video, data and voice services.

Alcatel-Lucent will have responsibility for the design,
manufacture, installation and commissioning of the Atlantic-
Mediterranean submarine segment, which spans 7,100 km.  The
company will also use the 1678 Metro Core Connect, and deploy
its latest generation 1626 Light Manager dense wavelength
division multiplexing transmission equipment to provide seamless
connectivity across the two terrestrial links in the UK and
Egypt at 40Gbit/s.  The Alcatel-Lucent offering across the EIG
system provides terabit transmission capabilities to accelerate
the delivery of broadband services and applications.

Mr. John Russell, chairman of the EIG Consortium Management
Committee, said "EIG utilizes the most advanced submarine cable
system technology to provide a high quality solution to help
meet the continued growth of broadband adoption rates around the
world.  Alcatel-Lucent's turnkey expertise and technological
lead in the build of submarine networks will help us deliver a
highly flexible and scalable infrastructure that will support
the delivery of innovative applications across the regions."

Mr. Etienne Lafougere, President of Alcatel-Lucent's submarine
network activity, commented, "EIG further confirms the need for
cable route diversity and enhanced capacity to meet end-users'
demands for bandwidth to support broadband traffic.  This new
contract is recognition of the reliability of our submarine,
terrestrial and network solutions, as well as of our end-to-end
ability to provide every part of a global transport network."

EIG was announced in May 2008 in London by the EIG Consortium.  
Currently EIG Consortium members include AT&T; Bharti Airtel;
BT; C&W; Djibouti Telecom; du; Gibtelecom; Libyan Post, Telecom,
and Information Technology Company; MTN Group Ltd; Omantel; PT
Comunicacoes, S.A.; Saudi Telecom Company; Telecom Egypt; Telkom
SA Ltd.; and Verizon Business.  Alcatel-Lucent is one of two
submarine cable network suppliers for the project, which has a
total value of over US$700 million.

EIG will connect three continents, with landings planned in the
United Kingdom, Portugal, Gibraltar, Monaco, France, Libya,
Egypt, Saudi Arabia, Djibouti, Oman, United Arab Emirates, and
India.  Providing much needed diversity for broadband traffic
currently relying largely on traditional routes from Europe to
India, EIG will also provide seamless interconnection with other
major cable systems connecting Europe, Africa, Asia and North
America.

                      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 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.


THOMSON SA: S&P Junks Sub Perpetual Notes Rating to CCC From B-
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit and senior unsecured bank loan ratings on
France-based technology group Thomson S.A. to 'B+' from 'BB-'.
At the same time, the 'B' short-term corporate credit rating
was affirmed.  The outlook remains negative.
     
In addition, S&P lowered its issue rating on Thomson's junior
subordinated perpetual notes to 'CCC' from 'B-', although the
rating agency still think it unlikely that the group will defer
the EUR28 million annual coupon payment due Sept. 25, 2008.  
The recovery ratings on the debt are unchanged, at '3' for the
senior unsecured bank loan and '6' for the junior subordinated
notes, indicating S&P's expectation of meaningful (50%-70%) and
negligible (0%-10%) recovery, respectively, for unsecured
creditors in the event of a payment default.
     
"The downgrade primarily reflects the deterioration in the
group's performance, limited trading and covenant visibility,
and high leverage," said S&P's credit analyst Leandro De Torres
Zabala.
     
These factors offset the company's diversified customer
portfolio and its extensive cost-cutting plan.
     
A downgrade could result if the company does not succeed in
stemming losses and maintaining adequate liquidity through its
cost-cutting plan.  Success in achieving these targets could
trigger a return to a stable outlook.
     
At June 30, 2008, Thomson had gross debt of about EUR1.3
billion.


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


DOLCE GMBH: Claims Registration Period Ends August 14
-----------------------------------------------------
Creditors of Dolce GmbH have until Aug. 14, 2008, to register
their claims with court-appointed insolvency manager Dr. Axel
Kampmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on Sept. 18, 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 Arnsberg
         Meeting Room 328
         Eichholzstr. 4
         59821 Arnsberg
         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. Axel Kampmann
         Goethestrasse 24
         59755 Arnsberg
         Germany

The District Court of Arnsberg opened bankruptcy proceedings
against Dolce GmbH on July 15, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Dolce GmbH
         Boleweg 7
         59494 Soest
         Germany

         Attn: Luigi Falco and
               Daniel Prisco, Managers
         Josef-Haydn-Weg 11
         59457 Werl
         Germany


ERASW MICROSYSTEMS: Claims Registration Period Ends August 14
-------------------------------------------------------------
Creditors of ErasW microsystems GmbH have until Aug. 14, 2008,
to register their claims with court-appointed insolvency manager
Michael Pluta.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Sept. 17, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Ludwigsburg
         Hall 2008
         Palace Schuetz
         Schorndorfer Str. 28
         Ludwigsburg
         Germany

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

The insolvency manager can be reached at:

         Michael Pluta
         Albstrasse 14
         70597 Stuttgart
         Germany
         Tel: 0711/769688-0

The District Court of Ludwigsburg opened bankruptcy proceedings
against ErasW microsystems GmbH on July 18, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         ErasW microsystems GmbH
         Attn: Hans Fix, Manager
         Hechinger Weg 22
         71686 Remseck
         Germany


EUROPE FRESH: Claims Registration Period Ends August 14
-------------------------------------------------------
Creditors of Europe Fresh & Logistic GmbH have until
Aug. 14, 2008, to register their claims with court-appointed
insolvency manager Sebastian Laboga.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on Sept. 24, 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 Cottbus
         Hall 210
         platz 2
         Cottbus
         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:

         Sebastian Laboga
         Einemstrasse 24
         10785 Berlin
         Germany

The District Court of Cottbus opened bankruptcy proceedings
against Europe Fresh & Logistic GmbH on July 17, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Europe Fresh & Logistic GmbH
         Attn: Frau Ines Leopold, Manager
         Tagore Strasse 02
         03149 Forst
         Germany


FEUER RAUM: Claims Registration Period Ends August 14
-----------------------------------------------------
Creditors of Feuer Raum + Service GmbH have until Aug. 14, 2008,
to register their claims with court-appointed insolvency manager
Jan van Bruggen.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Aug. 26, 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 Ravensburg
         Room 127
         Herrenstr. 42
         88212 Ravensburg
         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 van Bruggen
         Hochstr. 1
         88045 Friedrichshafen
         Germany

The District Court of Ravensburg opened bankruptcy proceedings
against Feuer Raum + Service GmbH on July 10, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Feuer Raum + Service GmbH
         Attn: Hubertus Zagoricnik, Manager
         Meersburger Str. 31
         88213 Ravensburg
         Germany


GESELLSCHAFT FUER KLIMA: Claims Registration Period Ends Aug. 13
----------------------------------------------------------------
Creditors of GKW Gesellschaft fuer Klima & Warmesysteme
Saarbruecken mbH have until Aug. 13, 2008, to register their
claims with court-appointed insolvency manager Karina Schwarz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Sept. 10, 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 Hannover
         Hall 226
         Second Upper Floor
         Service Bldg.
         Hamburger Allee 26
         30161 Hannover
         Germany

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

The insolvency manager can be reached at:

         Karina Schwarz
         Ernst-August-Platz 10
         30159 Hannover
         Germany
         Tel: 0511 475339-0
         Fax: 0511 475339-9

The District Court of Hannover opened bankruptcy proceedings
against GKW Gesellschaft fuer Klima & Warmesysteme
Saarbruecken mbH on June 12, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         GKW Gesellschaft fuer Klima & Warmesysteme
         Saarbruecken mbH
         Albert-Einstein-Str. 1
         31515 Wunstorf
         Germany

         Attn: Carsten Kramer and Petra Kramer, Managers
         Hasselhorster Str. 83
         31515 Wunstorf
         Germany


HERTIE GMBH: Files for Insolvency After Restructuring Talks Fail
----------------------------------------------------------------
Hertie GmbH filed for commencement of insolvency proceedings at
the District Court of Essen on July 31, 2008.  The court also
appointed Biner Baehr of White & Case LLP as preliminary
insolvency administrator for Hertie.

According to Bloomgerg News, Hertie filed for insolvency after
its debt-restructuring talks failed.  

"Insolvency laws provide us with numerous possibilities for
stabilizing our business and to achieve a good basis for a
sustainable turnaround," Mark Rahman, Hertie's chief financial
officer, was quoted by Bloomberg as saying.

Mr. Baehr will work with Chief Marketing Officer Erik van Heuven
to review the profitability of the Hertie units, Bloomberg
reports.  Hertie Warenhandels GmbH, one of Hertie's units, filed
for opening of insolvency proceedings on Aug. 1, 2008.  Mr.
Baehr was also appointed preliminary insolvency administrator
for that unit.

Mr. van Heueven told Bloomberg that Hertie will revive the
concept of neighborhood department-stores as part of its
restructuring.

Around four of the company's sister firms under the Dawnay, Day
Group, have been placed under administration of BDO Stoy
Hayward.  Dawnay's creditors opted to call in receivers after
resolving that they could no longer support the company-led
restructuring under Ernst & Young.

The preliminary insolvency administrator can be reached at:

      Biner Baehr
      White & Case LLP
      Graf-Adolf-Platz 15
      40213 Duesseldorf
      Germany
      Phone: + 49 211 491 95 0
      Fax: + 49 211 491 95 100

Based in Essen, Germany, Hertie GmbH -- http://www.hertie.de/--
operates 73 department stores and employs 4,100 people.  Hertie
posted EUR30 million in losses on EUR540 million in sales for
financial year 2007.


HH-SPORT 04: Claims Registration Period Ends August 13
------------------------------------------------------
Creditors of HH-Sport 04 GmbH have until Aug. 13, 2008, to
register their claims with court-appointed insolvency manager
Ingmar Jarchow.

Creditors and other interested parties are encouraged to attend
the meeting at 11:05 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 Hamburg
         Meeting Hall B405
         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:

         Ingmar Jarchow
         Heuberg 1
         20354 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against HH-Sport 04 GmbH on July 2, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         HH-Sport 04 GmbH
         Attn: Michael Huebner, Manager
         Barmbeker Markt 11
         22081 Hamburg
         Germany


OEKO-CONSENS GEMEINNUETZIGE: Claims Filing Period Ends August 13
----------------------------------------------------------------
Creditors of Oeko-Consens Gemeinnuetzige Gesellschaft fuer
Umweltconsulting, -entwicklung und -systemforschung mbH i.L.
have until Aug. 13, 2008, to register their claims with court-
appointed insolvency manager Eva Tichek-Poppe.

Creditors and other interested parties are encouraged to attend
the meeting at 11:05 a.m. on Sept. 12, 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 Neuruppin
         Hall 325
         Karl-Marx-Strasse 18a
         16816 Neuruppin
         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:

         Eva Tichek-Poppe
         Schlueterstrasse 17
         10625 Berlin
         Germany

The District Court of Neuruppin opened bankruptcy proceedings
against  Oeko-Consens Gemeinnuetzige Gesellschaft fuer
Umweltconsulting, -entwicklung und -systemforschung mbH i.L. on
June 24, 2008.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be reached at:

         Oeko-Consens Gemeinnuetzige Gesellschaft fuer           
         Umweltconsulting, -entwicklung und -systemforschung
         mbH i.L.
         Neumuehle 2
         16827 Alt Ruppin
         Germany


QUALITY SYSTEMTECHNIK: Claims Registration Period Ends Aug. 13
--------------------------------------------------------------
Creditors of Quality Systemtechnik GmbH have until Aug. 13,
2008, to register their claims with court-appointed insolvency
manager Karsten Sauter.

Creditors and other interested parties are encouraged to attend
the meeting at 2:10 p.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 Rottweil
         Room 0.05
         Branch Office
         Koernerstr. 29
         78628 Rottweil
         Germany
         
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Karsten Sauter
         Berner Feld 74
         78628 Rottweil
         Germany
         Tel: 0741-175400
         Fax: 0741-1754020

The District Court of Rottweil opened bankruptcy proceedings
against Quality Systemtechnik GmbH on June 4, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Quality Systemtechnik GmbH
         Attn: Bianca Stoehrmann
         Engener Str. 7
         78187 Geisingen
         Germany


SA-BLITZ-BAU GMBH: Claims Registration Period Ends August 13
------------------------------------------------------------
Creditors of SA-Blitz-Bau GmbH have until Aug. 13, 2008, to
register their claims with court-appointed insolvency manager
Dr. Lason Gutsche.

Creditors and other interested parties are encouraged to attend
the meeting at 9:35 a.m. on Sept. 24, 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 (Main)
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt (Main)
         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. Lason Gutsche
         Cronstettenstrasse 30
         60322 Frankfurt am Main
         Germany
         Tel: 069/959110-0
         Fax: 069/959110-12

The District Court of Frankfurt am Main opened bankruptcy
proceedings against SA-Blitz-Bau GmbH on June 9, 2008.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         SA-Blitz-Bau GmbH
         Attn: Serdar Aktunc, Manager
         Adalbertstr. 16
         60486 Frankfurt am Main
         Germany


VISTEON CORP: June 30 Balance Sheet Upside-Down by US$207 Mln
-------------------------------------------------------------
Visteon Corporation's consolidated balance sheet at June 30,
2008, showed US$7.02 billion in total assets, US$6.93 billion in
total liabilities, and US$295.0 million in minority interests,
resulting in a US$207.0 million stockholders' deficit.

The company reported a net loss of US$42.0 million for the
second quarter ended June 30, 2008.  For second quarter 2007,
Visteon reported a net loss of US$67.0 million.

Results for second quarter 2008 include US$18.0 million of
unreimbursed restructuring and other qualifying costs,
US$11.0 million of asset impairments and US$49.0 million of
income tax expense.  Second quarter 2007 results included
US$11.0 million of asset impairments and US$28.0 million of
income tax expense.  

EBIT-R, which represents net (loss) income before net interest
expense and provision for income taxes and excludes asset
impairments, gains and losses on business divestitures and net
unreimbursed restructuring expenses and other reimbursable
costs, was US$78.0 million, an improvement of US$63.0 million
over second quarter 2007.

"Our second quarter and first half results demonstrate Visteon's
geographic diversification, as we improved our financial
performance despite a difficult North American market," said
Donald J. Stebbins, president and chief executive officer.  "We
expanded gross margins by almost 50 percent and increased
operating income nearly five-fold due to steady progress on our
restructuring plan, our focus on reducing overhead costs and our
drive to improve operational efficiency.  We have also addressed
our UK manufacturing losses through divestitures and commercial
arrangements."

Total sales for second quarter 2008 were US$2.91 billion, a
decrease of US$69.0 million from the same period a year ago,
including US$17.0 million of lower services revenue.  Second
quarter 2008 total product sales were US$2.78 billion, a
decrease of US$52.0 million from second quarter 2007.  
Divestitures and plant closures decreased product sales by
US$222.0 million, which was partially offset by favorable
currency of US$163.0 million.  Lower production volumes in North
America were offset by increases in Europe and Asia, reflecting
Visteon's geographic diversification.

Product gross margin for second quarter 2008 was
US$230.0 million, representing an increase of US$76.0 million
from the same period a year ago.  This increase reflects net
cost performance of US$41.0 million and favorable currency of
US$43.0 million, partially offset by the impact of divestitures,
plant closures and other items.

For second quarter 2008, Visteon's operating income of
US$53.0 million was an improvement of US$44.0 million from the
same period in 2007.  This improvement was driven by increased
product gross margin, partially offset by unreimbursed
restructuring and other qualifying costs and implementation
costs associated with the company's overhead cost reduction
initiative.  Unreimbursed restructuring and other qualifying
costs include US$12.0 million related to the sale of the Swansea
operation.

Operating income for second quarter 2008 also included
US$7.0 million of asset impairment related to the Swansea sale.

Cash provided by operating activities for second quarter 2008
was US$133.0 million, US$13.0 million lower than second quarter
2007.  Capital expenditures for second quarter 2008 were
US$80.0 million, unchanged from the same period a year ago.  
Free cash flow for second quarter 2008 was US$53.0 million,
compared with US$66.0 million in the same period of 2007.  The
decrease is attributable to net restructuring cash use, higher
interest payments and other items, partially offset by improved
trade working capital and changes in receivables sold under the
company's securitization facility.

During second quarter 2008, Visteon issued US$206.0 million in
aggregate principal amount of new 12.25 percent notes due in
2016 and repurchased US$344.0 million of its 8.25 percent notes
due in August 2010.  This reduced the amount outstanding on the
2010 notes to US$206.0 million.

As of June 30, 2008, Visteon's cash balances totaled
US$1.51 billion compared with US$1.76 billion as of Dec. 31,
2007, and total debt was US$2.67 billion, approximately
US$180.0 million lower than year-end 2007.

                        First Half 2008

For the first six months of 2008, Visteon narrowed its net loss
by US$73.0 million to US$147.0 million.  Total sales for first
half 2008 of US$5.77 billion were lower by US$97.0 million from
the same period 2007.  Total product sales of US$5.52 billion
were US$71.0 million lower.  First half 2008 results include
US$41.0 million of restructuring expenses and other qualifying
costs in excess of escrow account reimbursement and a US$55.0
million increase in the company's tax provision.

EBIT-R for first half 2008 increased US$160.0 million over the
first six months of 2007 to US$129.0 million.  Cash from
operations was positive US$7.0 million for the first six months
of 2008, slightly below the US$15.0 million reported in the same
period a year ago.  Capital expenditures of US$154.0 million
were US$10.0 million higher than the first six months of 2007.  
Free cash flow was a use of US$147.0 million for first half
2008, compared with US$129.0 million for the same period the
previous year.

                 Restructuring and Divestitures

Visteon continues to make solid progress implementing its three-
year plan.  During the second quarter, Visteon ceased production
at its Bedford, Ind. facility, and closed two fuel tank
facilities in Germany.  Additionally in July, the company
divested its Swansea, UK, facility and ceased production at its
Concordia, Mo. facility.

By completing the sale of its Swansea chassis manufacturing
operation, effective July 7, Visteon divested its largest UK
operation, which generated negative gross margin of
approximately US$40.0 million on sales of approximately
US$80.0 million during 2007.  The company expects to record
losses of approximately US$47.0 million in connection with the
sale, of which US$32.0 million was recorded during second
quarter 2008 - including US$18.0 million of employee severance
and termination benefits, US$7.0 million of pension curtailment
losses and US$7.0 million of asset impairment.  These losses
were partially offset by US$13.0 million of escrow account
reimbursement.

Visteon said it continues to address its remaining operations in
the UK and commercial agreements are in place to address the
operating losses at the company's other UK manufacturing
facilities.  To date, 27 of the 30 targeted facility actions
including nine during 2008 have been accomplished.

"Last fall we highlighted the significant losses in our UK
operations and indicated it was our top priority to address
these operations during 2008," Stebbins said.  "With the sale of
Swansea and the agreements reached regarding our other UK
facilities, we are delivering on this commitment."

In addition to the actions under the company's three-year plan,
Visteon also announced that it will be closing its interiors
facility in Durant, Miss., and will be consolidating that
production in other facilities.  In January Visteon stated it
expects to generate cumulative savings of approximately
US$215.0 million over three years as part of its overhead cost-
reduction initiative and remains on track to generate the
expected savings.

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?3053   

                   About Visteon Corporation

Headquartered in Van Buren Township, Michigan, Visteon
Corporation (NYSE: VC) -- http://www.visteon.com/-- is an   
automotive supplier that designs, engineers and manufactures
innovative climate, interior, electronic and lighting products
for vehicle manufacturers, and also provides a range of products
and services to aftermarket customers.  The company also has
corporate offices in Shanghai, China; and Kerpen, Germany.  
The company has Latin America offices in Argentina, Brazil and
Mexico.  The company has facilities in 26 countries and employs
approximately 43,000 people.

                         *     *     *

As reported in the Troubled Company Reporter on June 27, 2008,
Moody's Investors Service assigned a Caa1 (LGD4, 66%) rating to
Visteon Corporation's new senior unsecured notes maturing in
2016.  The new senior unsecured notes have been issued
consistent with the structure and terms that were in place when
the securities were initially proposed and assigned a
prospective rating on May 22, 2008.

Fitch Ratings has affirmed Visteon Corporation's ratings as: (i)
issuer default rating (IDR) at 'CCC'; (ii) senior secured bank
facilities at 'B/RR1'; and (iii) unsecured notes at 'CC/RR6'.
Fitch has also assigned a rating of 'CC/RR6' to Visteon's new
12.25% senior unsecured notes being issued as part of the
company's debt exchange offer.  The ratings cover approximately
USUS$2.8 billion in debt.  The rating outlook is negative.


WESTLB AG: Managing Board's Restructuring Plan Approved
-------------------------------------------------------
The Supervisory Board of WestLB AG has approved the
restructuring concept which the Managing Board has developed for
the future strategic orientation of the Bank.

The concept, the key points of which will be coordinated further
in a constructive dialog with the European Commission, provides
for a targeted return on equity of at least 14% by 2012.  This
forms the basis for ensuring that the Bank is actively
positioned in the forthcoming consolidation of the Landesbank
sector.  The Bank's owners will forward the restructuring plan
to the European Commission via the Finance Ministry of North
Rhine-Westphalia and the Federal Economics Ministry.

The key points of the restructuring plan are:

   -- the clear streamlining of the business model through a
      focus on the core competences of the Bank;

   -- the expansion of the Bank's "Verbund" business with the
      savings banks;

   -- the clear reduction of risk-weighted assets and the
      sustainable strengthening of the risk management;

   -- cost reductions of at least EUR300 million through a
      significant improvement of process efficiency; and

   -- headcount reduction of at least 1,350 full-time employees
      by 2010.

Moreover, in the context of the discussions with the European
Commission, the Bank's owners declared their intention to
proceed with a change in the ownership structure.  The
integration of the Bank in the consolidation process of the
Landesbank is the preferred option.  If a timely implementation
of this should not be possible, the owners are open to other
options.  During the ensuing transformation phase the owners
declare their complete and unstinting support for the Bank.

                         About WestLB

Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.

In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.

WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).

                          *     *     *

West LB AG continues to carry Fitch's 'F' Individual Rating.  
The rating was previously at 'D/E' and was downgraded by Fitch
to its current level in January 2008.


WESTLB AG: Names Two New Members to the Managing Board
------------------------------------------------------
The Supervisory Board of WestLB AG has appointed two new members
to the Managing Board of the Bank.  Thomas Gross, will assume
the function of Chief Risk Officer of the Bank and Mr. Klemens
Breuer, will have responsibility for WestLB's Capital Markets
business as a deputy member of the Managing Board.

Mr. Gross takes over responsibility for Risk Management from Dr.
Wolfgang Nickels.  Dr. Nickels will in future focus exclusively
on his role as Employee Relations Director, the demands of which
are considerable in terms of time and workload due to the
restructuring of the Bank.

After several years of service with WestLB, Mr. Breuer becomes a
deputy member of the Managing Board with responsibility for the
Capital Markets business.  He brings long-standing experience to
his new role, which was initially acquired in the Global
Markets, Treasury and Global Finance units of Deutsche Bank in
Germany and abroad.  In 2005 he joined WestLB's Treasury team,
where he is currently business unit head and Group Treasurer.

Mr. Michael Breuer, Chairman of the WestLB Supervisory Board,
emphasized, "During this period of radical change at WestLB and
in the Landesbank sector, it is especially important to entrust
a highly qualified Managing Board with structuring the
realignment of the Bank.  In terms of their professional
expertise and proven commitment, the appointments of Thomas
Gross and Klemens Breuer represent a major step forward for
WestLB."

                         About WestLB

Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.

In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.

WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).

                          *     *     *

West LB AG continues to carry Fitch's 'F' Individual Rating.  
The rating was previously at 'D/E' and was downgraded by Fitch
to its current level in January 2008.


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


MAGNOLIA FINANCE: Fitch Cuts Ratings on Five Notes Classes to CC
----------------------------------------------------------------
Fitch Ratings downgraded and removed from Rating Watch Negative
five classes of notes issued by Magnolia Finance II Plc.  These
rating actions are effective immediately:

-- US$44,000,000 series 2006-5A ABS portfolio variable rate   
    notes to 'CC' from 'BBB';

-- US$40,000,000 series 2006-5B ABS portfolio variable rate
    notes to 'CC' from 'BB+';

-- US$5,000,000 series 2006-5CU ABS portfolio variable rate
    notes to 'CC' from 'BB-';

-- EUR5,000,000 series 2006-5CE ABS portfolio variable rate
    notes to 'CC' from 'BB-';

-- GBP6,000,000 series 2006-5CG ABS portfolio variable rate
    notes to 'CC' from 'BB-'.

Magnolia II is a static synthetic structured finance
collateralized debt obligation that closed on March 30, 2006 and
references a portfolio of mostly residential mortgage-backed
securities assets.  The transaction is designed to provide
credit protection for realized losses on the reference portfolio
through a credit default swap between the Issuer (Magnolia II)
and the swap counterparty, Credit Suisse, Cayman Islands Branch.  
The referenced portfolio consists of subprime RMBS, Alternative-
A RMBS, prime RMBS, and U.S. SF CDOs.  Presently 73.1% of the
portfolio is comprised of 2005 to 2007 vintage U.S. subprime
RMBS, 3.7% consists of 2005 to 2007 vintage U.S. Alt-A exposure,
and 2.9% consists of U.S. SF CDOs issued between 2005 and 2007.

Fitch's rating actions reflect the significant collateral
deterioration within the reference portfolio, specifically
subprime RMBS, Alt-A RMBS, and SF CDOs with underlying exposure
to subprime RMBS.  Since Fitch's last review of Magnolia II on
Nov. 12, 2007, approximately 82.4% of the portfolio has been
downgraded net up upgrades and 9.8% of the portfolio is
currently on Rating Watch Negative. 83.8% of the portfolio is
now rated below investment grade, with 54.0% being rated 'CCC+'
and below.

Fitch notes that, overall, 75.6% of the assets in the portfolio
now carry a rating below the rating it assumed in November 2007.  
The negative credit migration experienced since the last review
on Nov. 12, 2007 has resulted in the Weighted Average Rating
Factor deteriorating to 44.0 from 10.0 at last review.

The attachment points of the notes have increased from their
respective original attachment points due to the capital
structure de-levering as a result of asset amortization.  
However, all of the attachment points remain well below the
current 'CCC' rating loss rate.  In addition, there are two
reference obligations that, at the discretion of the swap
counterparty, may be called hard credit events as of July 25,
2008.  The losses from these reference obligations go to reduce
the subordination piece in the capital structure.  There are
also numerous other soft credit events as a result of distressed
ratings downgrades.  In this situation, the difference between
what constitutes hard and soft credit events is that the hard
credit events are rated 'Ca' for six months, or 'C' for any
period of time, by Moody's, and soft credit events are rated
'CCC' or 'Caa' or below by Fitch, S&P, or Moody's.

Still, the rated notes continue to receive interest as the
premium payments from the swap counterparty are still received
by the transaction.

The classes are removed from Rating Watch, as Fitch believes
further negative migration in the portfolio will have a lesser
impact on the classes.  Additionally, Fitch is reviewing its SF
CDO approach and will comment separately on any changes and
potential rating impact at a later date.

The ratings of the series 2006-5A, series 2006-5B, series 2006-
5CU, series 2006-5CE, and series 2006-5CG notes address the
likelihood that investors will receive full and timely payments
of interest, as per the governing documents, as well as the
stated balance of principal by the legal final maturity date.


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


ALITALIA SPA: Italy Denies Extraordinary Administration Plans
-------------------------------------------------------------
The Italian government is not planning to place Alitalia S.p.A.
under extraordinary administration on Aug. 29, 2008, Bloomberg
News reports.

Agenzia Giornalistica Italia had reported that the national
carrier will be placed under administration of an external
commissioner during a meeting of Prime Minister Silvio
Berlusconi's cabinet.

According to Bloomberg, Mr. Berlusconi's office denied the
report, saying it was "without foundation."

As reported in the Troubled Company Reporter-Europe on July 24,
2008, Intesa Sanpaolo S.p.A.'s "Fenice" rescue plan entails that
the Italian government will amend a law used to reorganize
Parmalat S.p.A.  The government tapped Intesa Sanpaolo as
adviser for the sale of its 49.9% stake in Alitalia.

According to the outline of the "Alitalia Law," the company will
seek protection from creditors and be placed in extraordinary
administration.  Alitalia's core business -- flight operations
-- will be separated from its debt and placed them under a new
company created with the buyer of the Italian government's 49.9%
stake in the carrier.  The old company will shoulder the cost of
the planned 5,000 job cuts and take on Alitalia's EUR1.1 billion
debt -- including the recent EUR300 million loan from the
government and a EUR750 million convertible bond.  The new
company, meanwhile, will inherit Alitalia's fleet and real
estate assets as well as the remaining employees and up to
EUR500 million in debt.

Under the plan, AGI relates, the new company would be launched
with initial capital of EUR1 billion -- EUR700 million of which
will be provided by an Italian consortium planning to acquire
the company while the remaining EUR300 million will be charged
on the emergency financing provided by the government.

AGI named businessmen Salvatore Ligretsi, Gilbeto Benetton and
Gianluigi Aponte as members of the consortium.  

Carlo Toto will also invest in the new company, but through
bidding vehicle AP Holding S.p.A. since his other firm, AirOne
S.p.A., has too much debt, AGI relates.

Intesa Sanpaolo has until Aug. 10, 2008, to submit Alitalia's
rescue plan to the government.

                          About Alitalia

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

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.


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


ADK LLP: Creditors Must File Claims by September 12
---------------------------------------------------  
LLP Construction Company ADK has declared insolvency.  Creditors
have until Sept. 12, 2008, to submit written proofs of claims
to:

         LLP Construction Company ADK
         Al-Farabi ave. 5-3a
         Almaty
         Kazakhstan
         

ARMAN & CO: Claims Deadline Slated for September 18
---------------------------------------------------  
The Specialized Inter-Regional Economic Court of Mangistau has
declared LLP Arman & Co. insolvent.

Creditors have until Sept. 18, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Mangistau
         Micro District 27, 39-35
         Aktau
         Mangistau
         Kazakhstan
         Tel: 8 (7292) 41-32-87


ASTANA KAZ: Claims Filing Period Ends September 18
--------------------------------------------------  
The Specialized Inter-Regional Economic Court of Astana has
declared LLP Astana Kaz Stroy Snub insolvent.

Creditors have until Sept. 18, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Astana
         Room 106
         Manas Str. 2
         Astana
         Kazakhstan
         Tel: 8 777 597 79-21


FASAD STROY: Creditors' Claims Due on September 12
--------------------------------------------------  
LLP Construction Company Fasad Stroy Service has declared
insolvency.  Creditors have until Sept. 12, 2008, to submit
written proofs of claims to:

         LLP Construction Company Fasad Stroy Service
         Al-Farabi ave. 5-3a
         Almaty
         Kazakhstan


GAS SERVICE: Creditors Must File Claims by September 12
-------------------------------------------------------  
LLP Gas Service Market has declared insolvency.  Creditors have
until Sept. 12, 2008, to submit written proofs of claims to:

         LLP Gas Service Market
         Abylkair han ave. 61/B-7
         Aktobe
         Aktube
         Kazakhstan


INTRO-LTD LLP: Claims Deadline Slated for September 17
------------------------------------------------------  
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Intro-Ltd. insolvent.

Creditors have until Sept. 17, 2008, to submit written proofs of
claims to:

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


SIBIRYACHKA LLP: Claims Filing Period Ends September 12
-------------------------------------------------------  
The Specialized Inter-Regional Economic Court of North
Kazakhstan has declared LLP Sibiryachka insolvent.

Creditors have until Sept. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Jumabaev Str. 102-25
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


SKS-OIL LLP: Creditors' Claims Due on September 18
--------------------------------------------------  
The Specialized Inter-Regional Economic Court of Astana has
declared LLP SKS-Oil insolvent.

Creditors have until Sept. 18, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Astana
         Room 106
         Manas Str. 2
         Astana
         Kazakhstan
         Tel: 8 777 597 79-21


TERMINAL NS: Claims Registration Ends September 12
--------------------------------------------------  
The Specialized Inter-Regional Economic Court of Astana has
declared LLP Terminal NS insolvent.

Creditors have until Sept. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Astana
         Nagornaya Str. 1
         Vtoraya
         Astana
         Kazakhstan
         Tel: 8 (7172) 23-06-49
              8 702 373 59-09


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


PS CREATION: Creditors Must File Claims by September 11
-------------------------------------------------------
LLC PS Creation has declared insolvency.  Creditors have until
Sept. 11, 2008, to submit written proofs of claim.

Inquiries can be addressed to (+996 312) 66-25-53.


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


BRIT ALLIANCE: Fitch Trims Rating on US$30 Mln A Notes to CC
------------------------------------------------------------
Fitch downgraded and removed from Rating Watch Negative the sole
class of notes issued by Brit Alliance ABSpoke 2005-X.  These
rating action is effective immediately:

  -- US$30,000,000 Class A Notes downgraded to 'CC' from 'BB'
     and removed from Rating Watch Negative.

Brit Alliance Finance BV, is an unfunded managed synthetic CDO
that references a portfolio of various ABS assets that closed on
June 7, 2006.  The transaction is designed to provide credit
protection for realized losses on the referenced portfolio
through a credit default swap between the Issuer and the swap
counterparty, Morgan Stanley Capital Services Inc.  The
referenced portfolio consists of subprime residential mortgage-
backed securities, Alternative-A RMBS, and prime RMBS.  
Presently 55.6% of the portfolio is comprised of 2005, 2006 and
2007 vintage U.S. subprime RMBS and 6.4% is comprised of 2005,
2006 and 2007 vintage U.S. Alt-A RMBS.

This downgrade is a result of significant collateral
deterioration within the reference portfolio, specifically
subprime RMBS and Alt-A RMBS.  Since Fitch's last review of Brit
Alliance on Nov. 12, 2007, approximately 71.0% of the portfolio
has been downgraded and 1.6% of the portfolio is currently on
Rating Watch Negative.  68.8% of the portfolio is now rated
below investment grade, of which 42.5% is rated 'CCC+' and
below.  Fitch notes that, overall, 68.3% of the assets in the
portfolio now carry a rating below the rating it assumed in
November 2007.  The negative credit migration experienced since
the last review on Nov. 12, 2007 has resulted in the Weighted
Average Rating Factor deteriorating to 36.5 from 13.4 at last
review.

The attachment point of the class A note has increased to 16.06%
from 11.00% due to the capital structure delevering as a result
of asset amortization.  However, this remains well below the
current 'CCC' rating loss rate.  In addition, while there are no
credit events officially declared as of the March 7, 2008
trustee report, current ratings indicate that rating downgrade
credit events may be declared as of the next trustee report
which will adversely affect the transaction.

The class is removed from rating watch, as Fitch believes
further negative migration in the portfolio will have a lesser
impact on the class.  Additionally, Fitch is reviewing its SF
CDO approach and will comment separately on any changes and
potential rating impact at a later date.

The rating on the class A note addresses the likelihood that the
issuer will have to make protection payments to MSCS under the
terms of the CDS.


CONEXANT SYSTEMS: Posts USUS$132.5MM Capital Deficit at June 27
---------------------------------------------------------------
Conexant Systems Inc. disclosed Thursday its earnings for the
third fiscal quarter ended June 27, 2008.

At June 27, 2008, the company's consolidated balance sheet
showed US$624.7 million in total assets and US$757.2 million in
total liabilities, resulting in a US$132.5 million stockholders'
deficit.

The company's consolidated balance sheet at June 27, 2008, also
showed strained liquidity with US$428.0 million in total current
assets available to pay US$471.4 million in total current
liabilities.

On April 29, 2008, Conexant announced the planned sale of its
Broadband Media Processing (BMP) product lines to NXP
Semiconductors in a transaction valued at up to US$145 million.
The transaction is expected to be completed in August 2008, and
the financial results of the BMP business unit have been
classified as discontinued operations in the company's third
fiscal quarter financial statements.  

GAAP net loss from continuing operations was US$126.4 million
for the quarter ended June 27, 2008, compared with GAAP net loss
from continuing operations of US$8.2 million in the same period
last year.  Including discontinued operations, GAAP net loss was
US$149.9 million, compared to GAAP net loss of US$142.0 million
in the same period last year.

The GAAP net loss in the quarter included asset impairment
charges of US$120.4 million related to the write-down of
goodwill and certain tangible and intangible assets associated
with the company's Broadband Access business.

On a GAAP basis, net revenues for the third quarter of fiscal
2008 were US$115.6 million, compared with net revenues of
US$118.5 million in the same period last year.

Conexant also presents financial results based on select non-
GAAP financial measures intended to reflect its core results of
operations.  The company believes these core financial measures,
which excludes non-cash and other non=core items, provide
investors with additional insight into its underlying operating
results.  

Including results from discontinued operations related to the
BMP business, Conexant's non-GAAP core revenues for the third
quarter of fiscal 2008 were US$171.1 million.  Core gross
margins were 47.1 percent of revenues, and core operating
expenses were US$69.6 million.  Core operating income was
US$11.0 million, and core net income was US$2.0 million.

Excluding results from discontinued operations related to the
BMP business, Conexant's core net revenues for the third quarter
of fiscal 2008 were US$115.6 million.  Core gross margins were
50.6 percent of revenues.  Core operating expenses were
US$46.0 million, and core operating income was US$12.5 million.
Core net income was US$6.0 million.
   
The company ended the quarter with US$134.6 million in cash and
cash equivalents due to the reclassification of US$29.0 million
to restricted cash.

                      Business Perspective

"During the third fiscal quarter, the Conexant team continued to
make outstanding progress across multiple fronts," said Scott
Mercer, Conexant's chief executive officer.  "For the third
consecutive quarter, we met or exceeded our expectations on
every major financial metric.  Revenues of US$171.1 million,
which included our Broadband Media Processing business, came in
at the high end of the range we previously provided.  Core gross
margins of 47.1 percent of revenues exceeded the high end of our
expectations by 160 basis points, and core operating expenses of
US$69.6 million were below the low end of the range we provided
entering the quarter.  During the quarter, we also introduced
innovative new products targeted at high-growth market segments,
and we executed a 1-for-10 reverse stock split.

"After the close of the quarter, we announced the acquisition of
Freescale Semiconductor's 'SigmaTel' multi-function printer
imaging business, which is consistent with our strategy of
augmenting our investments in new-product development with
select acquisitions in the high-growth market segments we
address," Mercer said.

"Moving forward, we will continue to focus on delivering
improved financial performance," Mercer said.

                         About Conexant

Headquartered in Newport Beach, California, Conexant Systems,
Inc. (NASDAQ: CNXT) -- http://www.conexant.com/-- has a     
comprehensive portfolio of innovative semiconductor solutions
which includes products for Internet connectivity, digital
imaging, and media processing applications.  Conexant is a
fabless semiconductor company that recorded revenues of US$809.0
million in fiscal year 2007.

Outside the United States, the company has subsidiaries in
Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong,
France, Germany, the United Kingdom, Iceland, India, Israel,
Japan, Netherlands, Singapore and Israel.

                         *     *     *

Conexant currently carries Standard & Poor's Ratings Services'
B- rating with a negative outlook.

Moody's Investor Service placed Conexant Systems Inc.'s long
term corporate family and probability of default ratings at
'Caa1' in October 2006.  The ratings still hold to date with a
stable outlook.


=============
R O M A N I A
=============


PETROLSUB BALC: Liquidator Postpones Tender to August 18
--------------------------------------------------------
Petrolsub Balc liquidator Euroconsult has decided to postpone a
tender to sell the refinery to Aug. 18 from July 28 after one of
the two possible buyers requested an extension of the
application deadline, Curierul National reports, citing Ioan
Isai, associate coordinator of the liquidation company.

According to Mr. Isai, the conditions for participation and the
starting price of EUR13.5 million, excluding VAT, remain
unchanged, the report says.

Petrolsub assets put up for sale include the refinery itself,
networks of utilities, warehouses, laboratories, infrastructure
and related land, the report discloses.

The report relates that in July the liquidator told Mediafax
that he received tenders from three companies, one foreign and
two Romanian.  However, the potential buyers failed to timely
present the documents related to the payment.

The liquidator, the report notes, neither confirmed, or denied
the participation of Polish refinery Lotos in the end-June
tender.

Headquartered in Balc, Romania, Petrolsub commenced bankruptcy
proceedings in April 2007, owing RON123.17 million to more than
80 creditors, including Petrom.  Petrolsub owed RON104.58
million to Petrom, which earlier expressed willingness to supply
the refinery with raw material for producing bitumen, the report
reveals.  At the end of 2007, Petrolsub owed RON11.69 million to
the state budget, and RON4.68 million to its employees, the
report adds.


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


CB MOSKOMMERTSBANK: Fitch Assigns Individual 'D/E' Rating
---------------------------------------------------------
Fitch Ratings has assigned Moscow-based CB Moskommertsbank
ratings of Long-term Issuer Default 'B+', Short-term IDR 'B',
Support '4', Individual 'D/E' and National Long-term 'A-(rus)'.  
A Negative Outlook has been assigned to both the Long-term IDR
and National Long-term rating.

The IDRs, National and Support Ratings for MKB reflect the
probability of support from its parent, Kazakhstani
Kazkommertsbank (rated Long-term foreign currency IDR
'BB+'/Negative Outlook), should the need arise.  KKB's Long-term
IDR is itself driven by potential sovereign support, which may
not in all cases be allowed to flow through to its subsidiaries.  
Fitch also notes that in accordance with an agreement signed
with the National Bank of Kazakhstan in Q407, KKB is unable to
increase its foreign assets from the level stipulated at the
time of the agreement, which could make it harder for KKB to
channel its support to MKB.  Taking into account this factor and
Fitch's assessment of the stand-alone strength of KKB, MKB's
Long-term foreign currency IDR is assigned at three notches
below KKB's.

The Negative Outlooks on the Long-term Issuer Default and
National ratings reflect Fitch's view of KKB's deteriorating
stand-alone financial strength.  Any further deterioration in
KKB's ability to provide support would likely result in a
downgrade for MKB.

MKB's Individual rating reflects weaknesses in the bank's
business model arising from its high reliance on the wholesale
market for funding, concerns over its deteriorating asset
quality, and its modest capital ratios. It also takes into
account the bank's robust cost efficiency and the high
collateralization of its loan book.  Further deterioration in
asset quality or refinancing problems could result in a
downgrade in the Individual rating.

MKB has expanded its business rapidly since 2005, with an
enhanced focus on residential mortgage lending, primarily in the
Moscow region.  Mortgage sales were boosted by the bank's
reliance on third-party origination channels, enabling it to
become one of the largest mortgage lenders in Russia with a
portfolio of about USD1.2bn at end-Q307.  Since the onset of the
credit crunch, however, MKB has had to drastically curtail its
growth plans and suspend expansion of its mortgage business due
to funding constraints and the absence of new equity injections
from the parent bank.  According to its revised business plan,
MKB now intends to develop into a more universal bank and place
more emphasis on lending to SMEs and on attracting retail and
corporate deposits.

MKB is 100%-owned by KKB, which continues to view Russia as a
strategically important market and significant source of future
business growth.  However, KKB's near-term priorities are
focused on protecting its asset quality and maintaining adequate
funding for its operations in the Kazakhstani market.


EMI-VOSTOK LLC: Court Sets Supervision Hearing November 11
----------------------------------------------------------
The Arbitration Court of Moscow commenced bankruptcy supervision
procedure against LLC Emi-Vostok and appointed Y. Rudenko as
interim receiver.  The case is docketed under Case No. A40-
26149/08-73-60B.


Creditors have to submit proofs of claim to:

         Y. Rudenko, Interim Receiver
         To be called for Mr. Y.Rudenko
         117335 Moscow
         Russia


The Court will convene at 3:00 p.m. on Nov. 11, 2008, to hear
the case at:

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

The Debtor can be reached at:

         LLC Emi-Vostok
         Rustaveli Str. 15
         127254 Moscow
         Russia


MINERAL WATER: Creditors Must File Proofs of Claim by August 5
--------------------------------------------------------------
The Arbitration Court of Novosibirsk commenced bankruptcy
supervision procedure against LLC Mineral Water and appointed I.
Klemeshov as interim receiver.  The case is docketed under Case
No. A45-6219/2008 43/11.

Creditors have until Aug. 5, 2008, to submit proofs of claim to:

         I. Klemeshov, Interim Receiver
         Post User Box 173
         630077 Novosibirsk-77
         Russia

The Court will convene at 11:00 a.m. on Oct.  29, 2008, to hear
the case at:

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

The Debtor can be reached at:

         LLC Miner
         Nizhegorodskaya Str. 270/1
         630063 Novosibirsk
         Russia


MOSCOW OBLAST: S&P Affirms BB- Debt Rating on Amortizing Bonds
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' long-
term debt and 'ruAA' Russia national scale ratings on Moscow
Oblast's senior unsecured amortizing bonds.  The second tranche,
totaling RUR9 billion (US$383 million), will be placed on Aug.
5, 2008, as an extension to the RUR10 billion already placed.
     
"The oblast uses the proceeds from the bond to refinance short-
term debt and continue financing its extensive investment
program," said S&P's credit analyst Felix Ejgel.
     
The ratings on the bond mirror those on the oblast.  The bond
has 10 semiannual 9% coupon payments and a five-year maturity.
In June 2009, the oblast will redeem 10% of the principal,
another 10% in June 2010, 15% in June 2011, 40% in June 2012,
and the remaining 25% in June 2013.
     
The ratings on Moscow Oblast reflect high refinancing needs
under ongoing financial market turbulence.  The oblast also
suffers from low financial flexibility and predictability, with
growing salaries, sizable infrastructure projects, and limited
control over its revenues.
     
On a positive note, strong economic development and subsequent
fast budget revenue growth support the ratings.  Moreover, the
oblast's long-term economic prospects continue to benefit from
its geographic location, surrounding the City of Moscow
(BBB+/Positive/--).


PRIVOLZHSKOE CAR: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Arbitration Court of Ivanovo commenced bankruptcy
supervision procedure against OJSC Privolzhskoe Car Transport
Enterprise (TIN 3719009664) and appointed V. Gorbachev as
interim receiver.  The case is docketed under Case No. A17-
1884/2008.

Creditors have to submit their proofs of claim to:

         V. Gorbachev, Interim Receiver
         Zagorodnaya 12A
         Kolyanovo
         153009 Ivanovo
         Russia

The Court is located at:

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

The Debtor can be reached at:

         OJSC Privolzhskoe Car Transport Enterprise
         Zheleznodorozhnaya Str. 9
         Privolzhsk
         155350 Ivanovo
         Russia


TEYKOVSKAYA PRINTING: Court Starts Bankruptcy Supervision
---------------------------------------------------------
The Arbitration Court of Ivanovo commenced bankruptcy
supervision procedure against OJSC Teykovskaya Printing House
(TIN 3704561424, OGRN 1083704000148) and appointed V. Gorbachev
as interim receiver.  The case is docketed under Case No.
A17-1855/2008 14-B.

Creditors have to submit proofs of claim to:

         V. Gorbachev, Interim Receiver
         Zagorodnaya 12A
         Kolyanovo
         153009 Ivanovo
         Russia

The Court is located at:

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

The Debtor can be reached at:

         OJSC Teykovskaya Printing House
         Oktyabrskaya Str. 26
         Teykovo
         155040 Ivanovo
         Russia


VOLGATELECOM OJSC: Creates Eight-Member Management Board
--------------------------------------------------------
OJSC VolgaTelecom held its Board of directors' meeting at which
the resolution was passed to form the Management board to the
number of eight members.

The term of office of new Management board members is
established from August 1,2008 through July 31,2009.

The Management board consists of:

    * Sergey V. Omelchenko, OJSC VolgaTelecom’s General Director
      as Chairman;

    * Oleg V. Ershov, first deputy to the General Director of
      joint-stock company - commercial director;

    * Svetlana L. Astakhova, deputy to the General Director of
      joint-stock company - personnel director;

    * Denis B. Kostin, CFO of the joint-stock company;

    * Mikhail V. Dyakonov, deputy to the General Director of
      joint-stock company for capital construction;

    * Alexander Yu. Ketkov, deputy to the General Director of
      joint-stock company - technical director;

    * Vladimir V. Ulyanov, deputy to the General Director for
      security and secrecy order; and

    * Nikolai I. Popkov, OJSC VolgaTelecom’s Chief accountant.

                       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.


VYAZNIKOVSKAYA FUEL: Creditors Must File Claims by August 5
-----------------------------------------------------------
The Arbitration Court of Vladimir commenced bankruptcy
supervision procedure against LLC Vyaznikovskaya Fuel
Company and appointed A. Shurov as interim receiver.  The case
is docketed under Case No. A11-2628/2008-K1-112B.


Creditors have until Aug. 5, 2008, to submit proofs of claim to:

         A. Shurov, Interim Receiver
         Radiozavodskoe Shosse 2a
         Murom
         602264 Vladimir
         Russia

The Court will convene at 1:30 p.m. on Oct. 28, 2008, to hear
the case at:

         The Arbitration Court of Vladimir
         Oktyabrskiy Pr. 14
         600025 Vladimir
         Russia

The Debtor can be reached at:

         LLC Vyaznikovskaya Fuel Company
         Serkovo
         Vyaznikovskiy
         601420 Vladimir
         Russia


WINE CJSC: Creditors Must File Proofs of Claim by August 5
----------------------------------------------------------
The Arbitration Court of Chelyabinsk commenced bankruptcy
supervision procedure against CJSC Wine and appointed V.
Tatarnikov as interim receiver.  The case is docketed under Case
No. A76-397/2008-34-7.


Creditors have until Aug. 5, 2008, to submit proofs of claim to:

         V. Tatarnikov, Interim Receiver
         Post User Box 18566
         454021 Chelyabinsk
         Russia

The Court is located at:

         The Arbitration Court of Chelyabinsk
         Vorovskogo Str. 2
         454091 Chelyabinsk
         Russia

The Debtor can be reached at:

         CJSC Wine
         Moldavskaya Str. 16
         454021 Chelyabinsk
         Russia


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


FORD MOTOR: Reports Strong Sales for Focus Model
------------------------------------------------
Ford Motor Co.'s redesigned Focus continues to surprise auto
industry watchers and customers alike with strong sales, revenue
growth, fuel economy and industry-first technology, Ford said.

While Ford and industry sales experienced a double-digit sales
decline in July, Ford Focus sales climbed 16 percent versus a
year ago.  Year-to-date, Focus sales were up 26 percent,
compared with industry-wide small car growth of approximately 9
percent.

        Focus has surprised in areas other than sales

Transaction prices – Year-to-date, Focus transaction prices have
increased US$750 per unit compared with a segment-average
increase of US$100.  Customers are purchasing more equipment,
including Ford SYNC, and higher series levels.

Fuel Economy – In an independent test conducted by Edmunds.com  
called the Gas-Sipper Smackdown, Focus achieved 37.5 mpg on the
highway.  Focus has EPA highway fuel economy of 35 mpg – better
than the smaller 2008 Honda Fit and 2009 Nissan Versa SL.

Cool Technology – Focus was named one of Kelley Blue Book's 10
Coolest New Cars Under US$18,000 based on its safety, fuel
economy, interior size, comfort, technology, fun-to-drive and
the "decidedly subjective coolness factor."

"Focus continues to surprise and delight customers throughout
the country, but the bombshell is in Texas, where Focus retail
sales have almost doubled," said Jim Farley, Ford, group vice
president, Marketing and Communications.  "If we can increase
small car sales in Texas, we can increase them anywhere."  Year-
to-date, Focus retail sales were up 91 percent in Texas and 46
percent nationwide.

Total Ford, Lincoln and Mercury car sales were up 8 percent
compared with a year ago.  Consistent with industry trends,
crossover vehicles – which include Ford Escape, Edge and Flex –
were down 8 percent.  Sport utility vehicles – such as Ford
Explorer and Expedition – were down 54 percent, and trucks and
vans – including Ford F-Series and Econoline – were down 18
percent.

Overall, Ford, Lincoln and Mercury vehicle sales totaled 156,406
in July, down 13 percent versus a year ago; year-to-date sales
totaled 1.265 million, also down 14 percent.  Ford estimates
industry-wide sales were down 11 percent year-to-date.

"We expect the second half of 2008 will be more challenging than
the first half as economic and credit conditions weaken," said
Farley.

Ford's full-year industry sales forecast is a range from 14.0 –
14.5 million vehicles (including medium and heavy trucks).  The
first half sales rate was approximately 15 million.

                     About Ford Motor Co

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

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

                           *   *   *

As reported in the Troubled Company Reporter on Aug. 1, 2008,
Standard & Poor's Ratings Services lowered its ratings to 'B-'
from 'B' on Ford Motor Co.

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

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


FORD MOTOR: Fitch Chips Issuer Default Rating to 'B-' from 'B'
--------------------------------------------------------------
Fitch Ratings has downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company LLC to 'B-' from
'B'.  The Rating Outlook remains Negative.  The downgrade
reflects these:

-- the further deterioration in Ford's U.S. sales as a result
    of economic conditions, an adverse product mix and the most
    recent jump in gas prices;

-- portfolio deterioration at Ford Credit and heightened
    concern regarding economic access to capital to support
    financing requirements; and

-- escalating commodity costs that will remain a significant
    offset to cost reduction efforts.

Negative cash flows and declining liquidity at Ford's automotive
operations will accelerate in the second half of 2008, but
liquidity is expected to be sufficient through 2009 to finance
operating losses, working capital drains and restructuring
efforts even in the event that 2009 industry sales remain flat
with deeply depressed 2008 levels.

Liquidity has declined sharply from US$36 billion at year-end
2007 to US$26 billion at the end of the second quarter, in part
due to the US$4.5 billion funding of the UAW healthcare VEBA.  
Maturities are moderate over the next three years, and Ford
maintains access to an US$11.5 billion revolving credit facility
(maturing in 2011).

Although the size of the facility could shrink modestly over the
next several years commensurate with a declining borrowing base,
unused capacity provides a liquidity cushion in the event the
North American market downturn is longer or deeper than
projected.

Ford has moderated its growth in debt through a cash
contribution to fund its initial VEBA agreement, and several
cooperative equity-for debt swaps.  Recent actions regarding
equity dilution improve the likelihood and amount of potential
equity-linked, capital-raising efforts.

Fitch's IDR for Ford Credit is the same as that of Ford, given
the close business relationship between the two companies.  
Fitch notes that while Ford and Ford Credit have a profit
maintenance agreement in place, Ford Credit did not enforce the
agreement in the second quarter and Fitch does not attach any
importance to this agreement since it lacks third party creditor
rights.  Fitch is maintaining its two notch differential between
the Ford Credit's IDR and senior debt due to Fitch's continued
view of ultimate recovery between 71%-90%, although Fitch
believes potential recoveries are at the lower end of this
range.  Fitch remains concerned with increasing default rates
and higher severity of losses on retail and lease contracts.  
The company's second-quarter loss was primarily the result of a
US$2.1 billion residual value impairment.

While this reflects the rapid deterioration in residual values
to date, particularly for truck and SUVs, FMCC may incur
incremental impairments if residual values continue to decline.  
As a result of these factors, Fitch does not anticipate that
Ford Credit will pay dividends to Ford.  Further deterioration
in loan and lease portfolios, or in performance of auto loan
securitizations, could further limit Ford's ability to provide
competitive financing.

Lack of economic access to the securitization market, resulting
from weaker loan performance and/or nervous capital markets,
could result in a review of the rating.

The most recent spike in gas prices has resulted in plummeting
U.S. industry sales and sharply declining residual values of
SUV's and pickups.  Ford has been actively cutting production in
an attempt to manage inventories and incentive levels, but cost
reductions have not been able to keep pace.  A pull back from
leasing, although potentially prudent in the long-term, will
result in a further step-down in sales volumes and production as
higher incentives or third-party financing are unlikely to fill
the gap in the short term.

Second-quarter deliveries fell 17% in North America, leading to
a 25% sales decline.  At the smaller end of its product lineup,
sales volumes of the Focus, Fusion and Escape have held up
relatively well.  Ford's European operations continue to perform
well, with healthy growth in profitability driven by well-
received product introductions and cost improvements, although
weakening economic conditions are expected to moderate near term
results.  Ford has also benefited from strong growth in its
Latin American markets.  Improving quality has also been a
positive.

The rise in commodity costs has been a well-known contributor to
margin deterioration for the past several years, limiting the
impact of Ford's extensive cost-cutting efforts.  Fitch had
expected commodity cost increases to moderate in 2008, allowing
more of the restructuring benefits to be realized, but this has
not been the case.  Due to surcharges being implemented across a
number of products, the flow-through of price increases in oil-
based products and the timing of contract renewals, the impact
of commodity price increase is expected to sharply accelerate
over the next 18 months.

Factors that could result in a downgrade include:

-- An expectation by Fitch that Ford's cash level would fall
    below US$12 billion.

-- Lack of economic access to the securitization market.

-- Lack of execution on near-term cost, margin and product
    plans

In 2010, Ford is expected to realize the benefits from the UAW
healthcare agreement, as well as an eventual upturn in U.S.
industry sales.  Ford remains highly exposed to the pickup truck
market, and is unlikely to reverse negative cash flows until the
U.S. pickup truck market reverses -- at which point Ford will
have its updated F-Series product on the market.  Ford also
provided details on its longer-term product plans for the U.S.,
with an aggressive push into smaller vehicles through plant
retoolings and the introduction of six European products into
the United States.  

Risks remain that these products will not be well received, but
early reviews of the Fiesta (coming to the U.S. market in 2010)
and product commonality/manufacturing experience should reduce
production risks.

These rating actions have been taken:

Ford Motor Co.

-- Long-term IDR to 'B-' from 'B';
-- Senior secured credit facility to 'BB-/RR1' from 'BB/RR1';
-- Senior secured term loan to 'BB-/RR1' from 'BB/RR1';
-- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'.

Ford Motor Co. Capital Trust II

-- Trust preferred stock to 'CCC/RR5' from 'CCC+/RR6'.

Ford Holdings, Inc.

-- Long-term IDR to 'B-' from 'B';
-- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'.

Ford Motor Co. of Australia

-- Long-term IDR to 'B-' from 'B';
-- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'.

Ford Motor Credit Company LLC

-- Long-term IDR to 'B-' from 'B';
-- Short-term IDR at 'B';
-- Senior unsecured to 'B+/RR2' from 'BB-/RR2';
-- Commercial paper at 'B'.

FCE Bank Plc

-- Long-term IDR to 'B-' from 'B';
-- Senior unsecured to 'B+'/RR2' from 'BB-/RR2';
-- Short-term IDR at 'B';
-- Commercial paper at 'B';
-- Short-term deposits at 'B'.

Ford Capital B.V.

-- Long-term IDR to 'B-' from 'B';
-- Senior unsecured to 'B+/RR2' from 'BB-/RR2'.

Ford Credit Canada Ltd.

-- Long-term IDR to 'B-' from 'B';
-- Short-term IDR at 'B';
-- Commercial paper at 'B';
-- Senior unsecured to 'B+/RR2' from 'BB-/RR2'.

Ford Credit Australia Ltd.

-- Long-term IDR to 'B-' from 'B';
-- Short-term IDR at 'B';
-- Commercial paper at 'B'.

Ford Credit de Mexico, S.A. de C.V.

-- Long-term IDR to 'B-' from 'B'.

Ford Credit Co S.A. de CV

-- Long-term IDR to 'B-' from 'B';
-- Senior unsecured to 'B+/RR2' from 'BB-/RR2'.

Ford Motor Credit Co. of New Zealand

-- Long-term IDR to 'B-' from 'B';
-- Senior unsecured to 'B+/RR2' from 'BB-/RR2';
-- Short-term IDR at 'B';
-- Commercial paper at 'B'.

Ford Motor Credit Co. of Puerto Rico, Inc.

-- Short-term IDR at 'B'.


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


FANAG DIRECT: Creditors Have Until August 31 to File Claims
-----------------------------------------------------------
Creditors owed money by JSC Fanag Direct are requested to file
their proofs of claim by Aug. 31, 2008, to:

         Hansulrich Scheuchzer
         Liquidator
         JSC Fanair
         Grossmatt Rain 1
         8964 Rudolfstetten
         Switzerlang

The company is currently undergoing liquidation in
Rudolfstetten-Friedlisberg.  The decision about liquidation was
accepted at an extraordinary shareholders' meeting held on June
6, 2008.


HIBERNIA HOLDING: September 15 Set as Deadline to File Claims
-------------------------------------------------------------
Creditors owed money by JSC Hibernia Holding are requested to
file their proofs of claim by Sept. 15, 2008, to:

         Kurt Wyssmuller
         Liquidator
         Lindenstrasse 16
         6341 Baar
         Switzerland

The company is currently undergoing liquidation in Baar.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 10, 2008.


HOUSE OF SAND: Creditors Must File Proofs of Claim by August 31
---------------------------------------------------------------
Creditors owed money by JSC House of Sand are requested to file
their proofs of claim by Aug. 31, 2008, to:

         Linus Jaeggi
         Advocacy Schoch Jaeggi Hoch
         Ramistrasse 29
         8001 Zurich
         Switzerland

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


MC-RECORDS JSC: Deadline to File Proofs of Claim Set August 31
--------------------------------------------------------------
Creditors owed money by JSC MC-Records are requested to file
their proofs of claim by Aug. 31, 2008, to:

         Einsiedlerstrasse 159
         8812 Horgen  
         Switzerland

The company is currently undergoing liquidation in Horgen.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 29, 2008.


NIFFEL JSC: Proofs of Claim Filing Deadline is August 31
--------------------------------------------------------
Creditors owed money by JSC Niffel are requested to file their
proofs of claim by August 31, 2008, to:

         Andre Bieri
         Hauptstrasse 5
         Mail Box 044
         6281 Hochdorf
         Switzerland

The company is currently undergoing liquidation in Hochdorf.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 30, 2008.


POLY-STEEN LLC: Creditors' Proofs of Claim Due by August 20
-----------------------------------------------------------
Creditors owed money by LLC Poly-Steen are requested to file
their proofs of claim by Aug. 20, 2008, to:

         Rudolf Schneider
         Obere Espilibuck 6
         8226 Schleitheim
         Switzerland

The company is currently undergoing liquidation in Schleitheim.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 19, 2008.


S. SANSO: Creditors Have Until Sept. 8 to File Proofs of Claim
---------------------------------------------------------------
Creditors owed money by LLC S. Sanso are requested to file their
proofs of claim by Sept. 8, 2008, to:

         Thomas Karl Treuhand
         Zurichstrasse 25
         8185 Winkel
         Switzerland

The company is currently undergoing liquidation in Winkel ZH.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 9, 2008.


SARATOGA WATTWIL: September 10 Set as Deadline to File Claims
-------------------------------------------------------------
Creditors owed money by JSC Saratoga Wattwil are requested to
file their proofs of claim by Sept. 10, 2008, to:

         Peter Lieberherr
         Liquidator
         Ebnater Strasse 79
         9630 Wattwil
         Switzerland

The company is currently undergoing liquidation in Wattwil.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Feb. 18, 2008.


SEMGROUP LP: 18 Parties Balk at US$250 Mln BofA DIP Financing
-------------------------------------------------------------
A total of 18 parties-in-interest object to the request of
SemGroup L.P. and its debtor-affiliates to obtain US$250,000,000
of senior secured superpriority postpetition financing from Bank
of America.  The parties-in-interest are:

  * Ad Hoc Committee of Unsecured Creditors w/ Senior Notes;
  * Alon USA, LP;
  * Cardinal Engineering, Inc.;
  * Central Crude Corporation and Redwing Gas Systems Inc.;
  * CHS, Inc.;
  * General Electric Capital Corporation;
  * JMA Energy Company, L.L.C.;
  * LCS Production Company, and the Texas operators;
  * Merrill Lynch Capital Corporation and ML Commodities, Inc.;
  * Murfin Drilling Company, Inc.;
  * New Dominion, L.L.C.;
  * Prima Exploration, Inc.;
  * RZB Finance LLC;
  * Samson Resources Company, and affiliates;
  * Sunoco, Inc.;
  * The SemCrude US Term Lender Group;
  * Veenker Resources, Inc.; and
  * Williams NGL Marketing, LLC, and affiliates.

According to Kimberly E. C. Lawson, Esq., at Reed Smith LLP, in
Wilmington, Delaware, GECC, the administrative agent for the
Debtors' prepetition lenders, does not question the necessity
for the Debtors to obtain DIP Facility, the financing terms set
forth in the DIP Term Sheet.  However, GECC identifies two
problems that precludes the Court's approval of the DIP
Facility:

  (1) the proposed final DIP Agreement contains negative
      covenants that the Debtors are in position to honor; and

  (2) the proposed Interim Order makes no provision for the
      adequate protection of the interest that GECC may have in
      a portion of the Cash Collateral, based on the Debtors'
      11th hour upstreaming of funds borrowed by SemCrude
      Pipeline, LLC, under the prepetition GECC Credit
      Agreement.

Ms. Lawson contended that the ultimate decision-making authority
over White Cliffs Pipeline, LLC, a non-debtor subsidiary
exercised by PE Pipeline LLC, is unclear why the Debtors sought
to prevent White Cliffs from selling its assets, enter into
particular contracts, or incur more than a designated amount of
indebtedness.

Accordingly, GECC asked the Court to deny the DIP Financing
Motion to the extent that the Interim Order and the Final DIP
Agreement are not modified to resolve its objections.

RZB Finance stated that the DIP Financing Motion will improperly
force it and other working capital lenders to subsidize dubious
operations without adequate protection for the benefit of third
parties.  RZB Finance asserts that the Debtors must demonstrate
adequate protection of  RZB Finance's interest.

Alon, Central Crude, CHS, JMA, LCS Production, Murfin, New
Dominion, Prima, Samson, Sunoco, Veenker, and Williams related
that the Debtors possess certain reclaimed goods valued at more
than US$80,000,000 in the aggregate.  The Vendors complained
that it is not clear whether the proposed liens in the
reclamation goods are subject to any of the vendors' rights to
reclaim the Reclaimed Goods.  

The Term Lenders do not consent to the priming of their liens.  
They argued that there is no authority that allows other parties
to consent to release US$250,000,000 on the Term Lenders'
behalf.

Merrill Lynch objected to the DIP Financing Motion to the extent
the Motion contains inadequate disclosure of the relevant
information.  Merrill Lynch insisted that the Debtors have
failed to satisfy their burden of establishing that the terms of
the proposed emergency financing are necessary and reasonable,
under Section 364 of the Bankruptcy Code.  In addition, Merrill
Lynch complained that the Motion fails to provide key
information, such as budgets setting forth the proposed uses for
the funding, the events of default, as well as the value of
collateral securing the proposed adequate protection replacement
liens.

Cardinal, which provides environmental engineering, civil
engineering and surveying services to the Debtors, objected to
the DIP Financing motion, asserting that the Motion prejudices
its ability to file and perfect any materialman's and mechanic's
lien.  Further, Cardinal said granting the Motion will abrogate
its rights under applicable state law, by not allowing it to
perfect the liens.

The Ad Hoc Committee of Unsecured Creditors Holding Senior Notes
sought to preserve the status quo pending the formation of a
statutory fiduciary for all unsecured creditors, including
vendors and bondholders alike.  The Ad Hoc Committee stated that
the Debtors' have not carried their burden of demonstrating
"emergency" for incurring US$150,000,000 of additional loans on
short notice.  The Ad Hoc Committee requested a brief
continuance of the Emergency DIP Motion until Aug. 8, 2008, for
a statutory creditors' committee for unsecured creditors to be
heard.

                          *     *     *

Judge Shannon postponed his ruling on the Debtors' DIP Financing
request until today, Aug. 5, 2008, to give additional time for
parties-in-interest to present further legal documentation in
support of their objection to the request.

Briefs in connection with the DIP Financing motion was due
Aug. 4, 2008.

The Debtors filed with the Court a draft of the DIP Credit
Agreement, a copy of which is available for free at:

       http://bankrupt.com/misc/semgroupfinaldippact.pdf  

         Motion to Access BofA's US$250,000,000 DIP Fund

The Troubled Company Reporter said on Aug. 1, 2008, that pending
final approval of the request, the Debtors sought authority, on
an interim basis, to borrow up to US$150,000,000 under the DIP
facility to allow them to (i) meet all of their administrative
obligations during the early stages of their chapter 11 cases,
and (ii) purchase inventory critical to the operation of their
businesses.

                       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.

SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008.  Ernst & Young, Inc.  
The CCAA stay expires on Aug. 20, 2008.

SemGroup L.P.'s 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. 5; Bankruptcy Creditors'  
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).  


THOMAS ZIMMERMANN: Creditors Must File Claims by August 21
----------------------------------------------------------
Creditors owed money by JSC Thomas Zimmermann are requested to
file their proofs of claim by Aug. 21, 2008, to:

         JSC Fischer + Partner Treuhand
         Volkshausstrasse 20
         9630 Wattwil
         Switzerland

The company is currently undergoing liquidation in Ebnat-Kappel.  
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 13, 2008.


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


BRITISH ENERGY: Centrica in Talks with Third Party Over Stake
-------------------------------------------------------------
Centrica Plc confirmed it is in discussions with a third party
with a view to the group taking a minority ownership position in
British Energy Limited, subject to various conditions, including
this third party successfully acquiring British Energy and
receipt of regulatory clearances.

In the event that the third party does not proceed with an offer
for British Energy, or Centrica's discussions with the third
party do not result in an agreement, Centrica might consider a
number of other alternatives with respect to British Energy.

These alternatives may include proposing to British Energy: long
term power off take arrangements, Centrica participating in
British Energy's potential new nuclear partnerships or a
possible merger of Centrica with British Energy, only if terms
could be agreed and if all parties are fully supportive.

Centrica is not in discussions with British Energy with respect
to such alternatives and accordingly, for clarificatory purposes
as required by Rule 2.4 of the City Code, there can be no
certainty that an offer for British Energy will be made nor as
to the terms of any such offer.

                        About Centrica

Centrica plc is an integrated energy company offering a range of
home and business energy solutions.  The company sources,
generates, processes, stores, trades, saves and supplies energy
and provides a range of related services.

                      About British Energy

Headquartered in Livingston, Scotland, British Energy Limited
-- http://www.british-energy.com/-- is the U.K.'s largest
producer of electricity.  With a workforce of about 6,000, it
produces around one-sixth of the nation's electricity.

                          *     *     *

British Energy Ltd. continues to carry a Ba2 long-term corporate
family rating from Moody's with a stable outlook.

Standard & Poor's affirmed its BB long-term corporate credit
ratings on U.K.-based nuclear generator British Energy Group PLC
and its subsidiary British Energy Holdings PLC, with negative
outlook.

The company still carries a BB+ long-term issuer default rating
from Fitch with a stable outlook.


CHESAPEAKE CORP: Develops Refinancing Plan for Liquidity Needs
--------------------------------------------------------------
Chesapeake Corporation has developed a comprehensive refinancing
plan to address the upcoming maturity of its bank credit
facility and its general liquidity needs.  Chesapeake expects
that, upon completion, this proposed refinancing plan will
address the company's short- and long-term capital needs while
providing Chesapeake with the necessary financial flexibility to
improve earnings and create value for all stakeholders by
realizing the benefits associated with an improving business
platform that is focused on packaging applications for the
pharmaceutical and healthcare industries and other specialty
packaging end-use markets.

The proposed refinancing plan is expected to include: (1) new
senior secured credit facilities to be used to fully repay the
company's existing US$250-million senior secured credit facility
and provide incremental liquidity, and (2) an offer to exchange
the company's outstanding 10-3/8% Sterling-denominated senior
subordinated notes due in 2011 and its 7% euro-denominated
senior subordinated notes due in 2014 for new debt and equity
securities.  

Chesapeake has engaged Lucid Issuer Services as information
agent to facilitate discussions with noteholders regarding the
exchange offer.  The company expects to continue to work with GE
Commercial Finance Limited and General Electric Capital
Corporation to participate in elements of the new senior secured
credit facilities.  Chesapeake anticipates commencing the
exchange offer and marketing for the new senior secured credit
facilities in September 2008.

"We believe this comprehensive refinancing plan can provide the
financial flexibility we need to execute our long-term business
plan," said Andrew J. Kohut, Chesapeake president & chief
executive officer.  "We have engaged the global professional
services firm Alvarez & Marsal LLP to provide certain consulting
services, including evaluating Chesapeake's business plan.  We
expect to move quickly with this refinancing plan and are
focused on serving our customers during the seasonal peak of our
year."

The company expects that, as of the end of the third fiscal
quarter of 2008, it may not be in compliance with the financial
covenants set forth in its existing credit facility.  The
company expects to address compliance issues with these
financial covenants (1) through the proposed refinancing plan,
or (2) by reducing outstanding indebtedness, amending the
existing credit facility or obtaining waivers from its lenders.  
There can be no assurances that the proposed refinancing plan or
these other alternatives will be successfully implemented in the
amounts and timeframe contemplated herein, if at all.  Failure
to successfully implement the refinancing plan or otherwise
address anticipated compliance issues under the credit facility
would have a material adverse effect on the company's business,
results of operations and financial position.

                      About Chesapeake Corp.

Headquartered in Richmond, Virginia, Chesapeake Corporation
(NYSE: CSK) -- http://www.cskcorp.com/-- is a supplier of       
specialty paperboard packaging products in Europe and an
international supplier of plastic packaging products to niche
end-use markets.  Chesapeake has 47 locations in France,
Ireland, United Kingdom, North America, China, HongKong, among
others and employs approximately 5,500 people.  

For the quarter ended March 30, 2008, the company reported
US$1,225,100,000 in total assets and US$948,100,000 in total
liabilities.

                       *     *     *

As disclosed in the Troubled Company Reporter on July 2, 2008,
Moody's Investors Service placed all the credit ratings of
Chesapeake Corp. on review for possible downgrade.  This rating
action follows Chesapeake's statement on June 27, 2008 that the
completion of a proposed new credit facility will not be
completed prior to the expiration of the commitment letter on
July 1, 2008.

Chesapeake further disclosed it is reviewing its balance sheet
and exploring other alternatives for reducing leverage and
improving its capital structure, in addition to the continued
pursuit of asset sales to reduce debt.  The existing credit
facility matures in February 2009 and had an outstanding balance
of US$185 million as of March 30, 2008.

Moody's review for possible downgrade will primarily focus on
the company's near-term liquidity pressures.  Despite a recent
amendment to the existing credit agreement that relaxed  
financial covenant levels through the end of 2008, Moody's is
concerned that Chesapeake may breach its financial covenants at
June 30, 2008.

Regardless, Moody's estimate that effective availability under
the revolver has been significantly diminished due to covenant
constraints.  

Moody's placed these ratings of Chesapeake Corporation on review
for possible downgrade: US$18.75 million 6.375% senior unsecured
revenue bonds due 2019, B3 / LGD3 (48%); US$31.25 million 6.25%
senior unsecured revenue bonds due 2019, B3 / LGD3 (48%);
GBP67.1 million 10.375% senior subordinated notes due 2011, Caa1
/ LGD5 (72%); EUR100 million 7% senior subordinated eurobonds
due 2014, Caa1 / LGD5 (72%); Corporate Family Rating, B2; and
Probability of Default Rating, B3.


CHESAPEAKE CORP: Posts US$13.38MM Net Loss for 2nd Quarter 2008
---------------------------------------------------------------
Chesapeake Corporation reported financial results for the second
quarter of 2008 with:

   -- net sales of US$251.4 million comparable to net sales for
      second quarter of 2007, and declined 6 percent, excluding
      the effect of changes in foreign currency exchange rates;
      and

   -- operating loss of US$216.2 million compared to
      US$1.1 million for the second quarter of 2007.

The company reported a net loss of US$13.38 million for the 2008
second quarter compared to US$59,000 net loss for the same
period last year.

The company recorded a goodwill impairment charge of
US$215.5 million in its Paperboard Packaging reporting segment
in the second quarter of fiscal 2008.  Operating income
exclusive of goodwill impairments, gains or losses on
divestitures and restructuring expenses, asset impairments and
other exit costs was US$3.3 million, down US$6.5 million when
compared to the second quarter of 2007, and, excluding the
effect of changes in foreign currency exchange rates, down
US$7.4 million compared to the second quarter of 2007.

Loss from continuing operations was US$227.7 million, or
US$11.67 per share, compared to loss from continuing operations
of US$10.6 million, or US$0.54 per share, for the second quarter
of 2007.  Excluding special items, loss from continuing
operations was US$8.7 million, or US$0.44 per share, compared to
loss from continuing operations of US$1.3 million, or US$0.06
per share, for the second quarter of 2007.

Loss on discontinued operations, net of taxes, for the second
quarter of 2008 was US$33.3 million compared to US$0.9 million
for the same period in 2007.  The loss for the second quarter of
2008 primarily related to our environmental indemnification
resulting from the acquisition of the former Wisconsin Tissue
Mills Inc.

                            Liquidity

The company says net cash used in operating activities was
US$28.8 million for the first six months of 2008, compared to
net cash provided by operating activities of US$15.4 million for
the first six months of 2007.  This unfavorable comparison was
primarily due to the decline in operating results and increased
working capital requirements compared to the same period in
2007.  Exclusive of restructuring spending, net cash used in
operating activities was US$25.6 million for the first six
months of 2008 compared to net cash provided by operating
activities of US$19.6 million for the first six months of 2007.

Total debt at June 29, 2008 was US$574.1 million, of which
US$222.8 million was designated as current, compared to total
debt of US$515.3 million at December 30, 2007, of which US$6.9
million was designated as current. The increase in the current
portion of long-term debt resulted primarily from the
reclassification from non-current of the company's 2004 senior
revolving credit facility, which matures in February 2009.  
Changes in foreign currency exchange rates increased total debt
approximately US$11.6 million at the end of the first six months
of 2008 compared to the end of 2007.

On July 15, 2008, the company obtained agreement from a majority
of the lenders under its senior revolving credit facility to
amend the facility, which increased the total leverage ratio to
7.00:1 and the senior leverage ratio to 3.40:1, each for the
second fiscal quarter of 2008.  The amendment also provided for
agreement on the amended recovery plan for one of the company's
U.K. subsidiaries and its defined benefit pension plan,
discussed below, which provides for an intercreditor agreement
among the senior revolving credit facility lenders, the company
and the trustee of the U.K. pension plan; places a limit on the
future borrowing of the U.S. borrower under the senior revolving
credit facility; and provides for a new event of default if the
Pensions Regulator in the U.K. issues a Contribution Notice or
Financial Support Direction.  The company was in compliance with
all of its amended debt covenants as of the end of the second
quarter of fiscal 2008.

The company has developed a comprehensive refinancing plan to
address the upcoming maturity of its senior revolving credit
facility and its general liquidity needs.  The company has
indicated it expects that, as of the end of the third fiscal
quarter of 2008, it may not be in compliance with the financial
covenants set forth in the senior revolving credit facility.  A
report on this appears in today's Troubled Company Reporter.

                   U.K. Pension Recovery Plan

On July 15, 2008, one of the company's U.K. subsidiaries agreed
with the trustee of its defined benefit pension plan on an
amended recovery plan.  Under the terms of the amended recovery
plan, the plan trustee agreed to accept annual supplemental
payments of GBP6 million over and above those needed to cover
benefits and expenses until the earlier of (a) 2021 or (b) the
plan attaining 100% funding on an on-going basis after 2014, and
has waived the requirement for an additional cash payment due on
or before July 15, 2008, to achieve an interim funding level of
90%.

The April 2008 valuation of the pension plan's assets and
liabilities had indicated that the required supplementary
contribution to the pension plan to achieve 90 percent funding
as of that date under the terms of the former recovery plan,
would have been GBP35.6 million.

The U.K. subsidiary has agreed, subject to certain terms and
conditions, to grant to the pension plan fixed equitable and
floating charges on assets of the U.K. subsidiary and its
subsidiaries in the United Kingdom and the Republic of Ireland
securing an amount not to exceed the pension plan funding
deficit on a scheme-specific basis. The security being granted
to the pension plan trustee will be subordinated to the security
given to the lenders under the company's senior revolving credit
facility.

The U.K. subsidiary's agreement with the pension plan trustee
also includes provisions for releases of the pension plan
trustee's security interest under certain conditions in the
event of the sale, transfer or other disposal of assets over
which the pension plan trustee holds a security interest or upon
the pension plan trustee's receipt of agreed cash payments to
the pension plan in addition to those described above.  The U.K.
subsidiary has made the GBP6 million supplemental payment to the
pension plan due for 2008.

On August 1, 2008, Chesapeake held a conference call with
investors to discuss the second quarter 2008 results.  A full-
text copy of the manuscript of the conference call is available
at no charge at http://ResearchArchives.com/t/s?3069

"We remain focused on two items, successfully refinancing our
debt to provide us with additional liquidity and financial
flexibility and achieving operational improvements for improved
financial results in the second half of the year," said Andrew
J. Kohut, Chesapeake's president & chief executive officer.  "In
addition to new business, we expect a seasonal pick up in demand
in most of our key markets.  Serving the needs of our customers
is paramount and key to our success, and we fully expect to be
able to respond to our customers' needs during the seasonal peak
of the year.  We continue to expect second-half operating
results to improve over the first half but improvement for the
full year will be more challenging given rising costs."

                     About Chesapeake Corp.

Headquartered in Richmond, Virginia, Chesapeake Corporation
(NYSE: CSK) -- http://www.cskcorp.com/-- is a supplier of       
specialty paperboard packaging products in Europe and an
international supplier of plastic packaging products to niche
end-use markets.  Chesapeake has 47 locations in France,
Ireland, United Kingdom, North America, China, HongKong, among
others and employs approximately 5,500 people.  

For the quarter ended March 30, 2008, the company reported
US$1,225,100,000 in total assets and US$948,100,000 in total
liabilities.

                        *     *     *

As disclosed in the Troubled Company Reporter on July 2, 2008,
Moody's Investors Service placed all the credit ratings of
Chesapeake Corp. on review for possible downgrade.  This rating
action follows Chesapeake's statement on June 27, 2008 that the
completion of a proposed new credit facility will not be
completed prior to the expiration of the commitment letter on
July 1, 2008.

Chesapeake further disclosed it is reviewing its balance sheet
and exploring other alternatives for reducing leverage and
improving its capital structure, in addition to the continued
pursuit of asset sales to reduce debt.  The existing credit
facility matures in February 2009 and had an outstanding balance
of US$185 million as of March 30, 2008.

Moody's review for possible downgrade will primarily focus on
the company's near-term liquidity pressures.  Despite a recent
amendment to the existing credit agreement that relaxed  
financial covenant levels through the end of 2008, Moody's is
concerned that Chesapeake may breach its financial covenants at
June 30, 2008.

Regardless, Moody's estimate that effective availability under
the revolver has been significantly diminished due to covenant
constraints.  

Moody's placed these ratings of Chesapeake Corporation on review
for possible downgrade: US$18.75 million 6.375% senior unsecured
revenue bonds due 2019, B3 / LGD3 (48%); US$31.25 million 6.25%
senior unsecured revenue bonds due 2019, B3 / LGD3 (48%);
GBP67.1 million 10.375% senior subordinated notes due 2011, Caa1
/ LGD5 (72%); EUR100 million 7% senior subordinated eurobonds
due 2014, Caa1 / LGD5 (72%); Corporate Family Rating, B2; and
Probability of Default Rating, B3.


DEAM DOORS: Brings in Liquidators from Tenon Recovery
-----------------------------------------------------
David Antony Willis and Matthew Colin Bowker of Tenon Recovery
were appointed joint liquidators of Dream Doors (North East)
Ltd. (formerly Dreams Doors (North East) Ltd.) on July 21, 2008,
for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Dream Doors (North East) Ltd.
         c/o Tenon Recovery
         Cleveland Business Centre
         1 Watson Street
         Middlesbrough
         TS1 2RQ
         England


DJ LITT: Sportman Gun Centre Buys Firm Out of Administration
------------------------------------------------------------
The Sportsman Gun Centre's owners, Gary Lamburn and Aboo Cattran
have acquired DJ Litt (Firearms) Ltd.'s assets out of
administration, WalesOnline reports.

As reported in the Troubled Company Reporter-Europe in May 2008,
the company went into administration due to cash flow problems.  
Richard Hawes and Robin Allen of Deloitte & Touche LLP were
appointed as Joint Administrators.

The acquisition will give the Sportsman a 70% share of the
market, the report said.

"We're currently turning over GPB12 million and, with the
combined operation, we’re expecting to achieve between GBP20
million to GBP25 million in the first year," Mr. Lamburn told
WalesOnline.  Report adds that the company will continue trading
under the same name.

Headquartered in Newport, Wales, D.J. Litt Ltd. --
http://www.litts.co.uk/-- supplies rifles, shotguns, hunting   
and shooting accessories and clothing.


DUN & BRADSTREET: Posts US$515.2MM Capital Deficit at June 30
-------------------------------------------------------------
Dun & Bradstreet Corp. reported Thursday final results for the
second quarter ended June 30, 2008.  

At June 30, 2008, the company's consolidated balance sheet
showed US$1.66 billion in total assets, US$2.17 billion in total
liabilities, and US$3.7 million in minority interest, resulting
in a roughly US$515.2 million total shareholders deficit.

The company's consolidated balance sheet at June 30, 2008, also
showed strained liquidity with US$701.2 million in total current
assets available to pay US$893.1 million in total current
liabilities.

Net income before non-core gains and charges for the second
quarter of 2008 was US$64.0 million, up 11 percent from the
prior year similar period.  On a GAAP basis, net income for the
quarter was US$84.2 million, down 4 percent from the prior year
similar period.

Core and total revenue for the second quarter of 2008 was
US$427.7 million, up 10 percent from the prior year similar
period before the effect of foreign exchange (up 12 percent
after the effect of foreign exchange).

Core and total revenue results for the second quarter of 2008
reflect the following by solution set:

-- Risk Management Solutions revenue of US$281.0 million, up 7
    percent before the effect of foreign exchange (up 9 percent
    after the effect of foreign exchange); Supply Management
    Solutions contributed approximately 1 point of Risk
    Management revenue growth during the second quarter of 2008,
    before the effect of foreign exchange;

-- Sales & Marketing Solutions revenue of US$115.6 million, up
    17 percent before the effect of foreign exchange (up 18
    percent after the effect of foreign exchange); and

-- Internet Solutions revenue of US$31.1 million, up 18 percent
    both before and after the effect of foreign exchange.

Operating income before non-core gains and charges for the
second quarter of 2008 was US$107.2 million, up 13 percent from
the prior year similar period.  On a GAAP basis, operating
income for the quarter was US$106.0 million, up 18 percent from
the prior year similar period.  During the second quarter of
2008, the company also incurred transition costs of US$3.9
million compared with US$3.1 million incurred in the prior year
similar period.

Free cash flow for the first six months of 2008, excluding the
impact of legacy tax matters, was US$211.6 million, up 5 percent
from the first six months of 2007.

Net cash provided by operating activities for the first six
months of 2008, excluding the impact of legacy tax matters, was
US$245.1 million, up 4 percent from the first six months of
2007.  On a GAAP basis, net cash provided by operating
activities for the first six months of 2008 was US$262.3
million, compared to US$234.9 million in the prior year similar
period.

Share repurchases during the second quarter of 2008 under the
company's discretionary repurchase program totaled
US$104.9 million, while repurchases made to offset the dilutive
effect of shares issued under employee benefit plans totaled an
additional US$20.0 million.

The company ended the quarter with US$245.5 million of cash and
cash equivalents.  

At June 30, 2008, the company had total long-term debt of
US$825.6 million, compared with US$724.8 million at
Dec. 31, 2007.  Outstanding borrowings under the company's
US$650.0 million credit facility was US$126.0 million.

                   Non-Core Gains and Charges

During the second quarter of 2008 and 2007, the company
recorded:

-- Net pre-tax, non-core charges of US$8.6 million and
    US$3.7 million, respectively; and

-- Net after-tax, non-core gains of US$20.2 million and
    US$29.9 million, respectively.

                       Dividend Declared

D&B also disclosed that its Board of Directors has declared a
quarterly cash dividend of US$0.30 per share. The quarterly cash
dividend is payable on Sept. 15, 2008, to shareholders of record
at the close of business on Aug. 29, 2008.

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?305c   

                     About Dun & Bradstreet

Dun & Bradstreet (NYSE: DNB) -- http://www.dnb.com/-- is the   
world's leading source of commercial information and insight on
businesses.  D&B's global commercial database contains more than
130 million business records.  The company has regional office
in the U.K.

D&B provides solution sets that meet a diverse set of customer
needs globally.  Customers use D&B Risk Management Solutions(TM)
to mitigate credit and supplier risk, increase cash flow and
drive increased profitability; D&B Sales & Marketing
Solutions(TM) to increase revenue from new and existing
customers; and D&B Internet Solutions to convert prospects into
clients faster by enabling business professionals to research
companies, executives and industries.


JAK TAVERS: Goes Into Liquidation; Faces VAT Bills
--------------------------------------------------
Liverpool-based pub Jak Tavers (The Slaughterhouse) has gone
into liquidation after being hit by the smoking ban, Barry
Turnbull of Liverpool Daily Post reports.

Citing Slaughterhouse Director Andy Boardman, the report relates
that shareholders resolved to put the pub into liquidation
because "it had become a constant drain on resources."  
According to Mr. Boardman, the business was put up for sale 18
months ago but no buyers have expressed interest so far, the
report discloses.

The business, which is facing VAT liabilities, is also
struggling with its tie-in with tenant and leasing chain,
Enterprise Inns, although it is now negotiating a new lease on
more favorable terms, the report says.

Insolvency practitioners from Begbies Traynor were called in to
liquidate the business.  Creditors have until Sept. 8, 2008, to
send details of their claims to the liquidators, the report
adds.

Slaughterhouse's other pub in Liverpool, Ma Boyle's, is not
affected by the liquidation, the report notes.


LAWSON'S BUILDING: Calls in Liquidators from Tenon Recovery
-----------------------------------------------------------
T. J. Binyon and S. J. Parker of Tenon Recovery were appointed
joint liquidators of Lawson's Building Company Ltd. on July 22,
2008, for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Lawson's Building Company Ltd.
         c/o Tenon Recovery
         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


MILLENNIUM REPRO: M. C. Bowker Leads Liquidation Procedure
----------------------------------------------------------
M. C. Bowker of Tenon Recovery was appointed liquidator of
Millennium Repro Ltd. on July 9, 2008, for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Millennium Repro Ltd.
         c/o Tenon Recovery
         Clive House
         Clive Street
         Bolton
         BL1 1ET
         England


NORTHERN ROCK: Posts GBP585.4MM Pre-Tax Loss for First Half 2008
----------------------------------------------------------------
Northern Rock plc has issued its half year results for the six
months ended June 30, 2008.

                           Highlights

Bank of England Loan

    * Net borrowings provided by the Bank of England have
      reduced by GBP9.4 billion to GBP17.5 billion from
      GBP26.9 billion at the end of December 2007, representing
      a 35% reduction (net of balances held with the Bank of
      England for liquidity purposes of GBP3.5 billion);

    * Loan repayment is well ahead of the business plan; and

    * Bank of England loan to be transferred to HM Treasury
      during second half of 2008.

Retail funding

    * Net inflow of GBP3.7 billion in retail deposits in the
      first half of 2008;

    * Retail balances of GBP14.2 billion at June 30, 2008,
      (compared with GBP10.5 billion at Dec. 31, 2007), although
      these remain substantially below the level at
      June 30, 2007;

Redemptions

    * Cash inflows from redemptions of loans are ahead of the
      Plan;


    * Total redemptions of GBP16.2 billion in the first six
      months of 2008, (including GBP2.2 billion asset disposal);

    * The Plan is not without challenges, given external market
      factors, but the experience so far is encouraging;

Balance sheet reduction

    * Total assets reduced to GBP99.0 billion at June 30, 2008,
      compared with GBP109.3 billion at Dec. 31, 2007; and

    * Loans and advances to customers have reduced by
      GBP14.5 billion in the first half of the year to
      GBP84.4 billion.

Earnings

    * Under the Plan, the Group is expected to be significantly
      loss-making in 2008;

    * Loss before tax for six months to June 30, 2008, of
      GBP585.4 million – including various exceptional charges;
      and

    * Underlying loss before tax of GBP176.3 million reflecting
      loan loss provisions, lower interest margins and reduced
      volumes of new business.

Arrears

    * Residential arrears over three months have more than
      doubled since the start of the year to 1.18% (0.45% at the
      end of 2007); and

    * CML average of 1.21% at March 31, 2008.

Capital

    * The deterioration in market conditions, particularly the
      downturn in the housing market, has led to the need to
      strengthen the capital position of the Company to meet
      regulatory capital requirements;

    * HM Treasury has committed to reinforce the Company’s
      capital base through conversion into Ordinary shares of
      both its holding of GBP400 million of Preference shares
      and swapping up to GBP3 billion of the outstanding debt
      into equity (following transfer of the Bank of England
      loan to HM Treasury);

    * This capital restructuring will not involve any cash
      transfer and will be finalised following a review of the
      Plan and will be implemented subsequent to State aid
      approval; and

    * With this balance sheet strengthening, Northern Rock is
      well placed to press ahead with delivery of the Plan.

Organization

    * Strengthening of leadership team with appointments of Gary
      Hoffman as Chief Executive Officer, Rick Hunkin as Chief
      Risk Officer, Richard Smelt as Human Resources Director
      and Andy Tate as Director of Debt Management;

    * 90 day collective consultation period with staff concluded
      and individual consultations are underway – downsizing
      likely to be achieved with around 800 compulsory
      redundancies;

    * Focus on strengthening of the risk and control environment
      and upgrade of debt management capabilities; and

    * Steps have been taken to strengthen the Board with the
      appointment of Kent Atkinson and Richard Coates as Non-
      Executive Directors.

Northern Rock Foundation

    * Donation to The Northern Rock Foundation of GBP7.5 million
      in the first half of 2008

Ron Sandler, Executive Chairman said: "Significant progress has
been made on all of the key priorities of the business plan
since it was approved in March.

"On a net basis the Government debt has reduced by
GBP9.4 billion since the start of the year, which is
considerably ahead of Plan.  Operational restructuring is well
advanced and both the Board and management team have been
bolstered by key new appointments.  We have also substantially
overhauled the risk procedures in the Company.

"I am delighted with the appointment of Gary Hoffman who will
take over as Chief Executive from Oct. 1.  His appointment is
complemented by further outstanding new recruits into key
executive positions in the Company: Rick Hunkin as Chief Risk
Officer, Richard Smelt as HR Director and Andy Tate as Director
of Debt Management.  These appointments serve to strengthen
considerably the senior management team of Northern Rock.

"However, the external environment has deteriorated and the
consequences of this for Northern Rock are increased credit
losses.  Following a review in July of the Company’s ongoing
regulatory capital requirements, HM Treasury has committed to a
significant strengthening of the Company’s capital base.  This
will not involve any cash transfer to Northern Rock and will be
provided by HM Treasury through conversion into Ordinary shares
of both its holding of GBP400 million of Preference shares as
well as up to GBP3 billion of the outstanding debt following
transfer of the Bank of England loan to HM Treasury.  This
capital restructuring will be finalized following a review of
the Plan and will be implemented subsequent to State aid
approval.

"Finally, I wish to thank all members of staff and applaud their
maintenance of the highest levels of customer service and
professionalism in what has undoubtedly been a most difficult
time for Northern Rock’s employees."

                        About Northern Rock

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

                          *     *     *


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

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


NORTHERN ROCK: Names Andy Tate as Debt Management Director
----------------------------------------------------------
Northern Rock plc has appointed Andy Tate as Director of Debt
Management.  He will join the Company by October 2008.

His appointment strengthens considerably the leadership of the
Debt Management function, which will be expanded under the
Company's ongoing restructure.  This represents another
important step towards delivery of the Company's business plan.

Andy Tate has over 20 years experience in retail banking. He was
most recently Head of Collections and Recoveries Operation with
Royal Bank of Scotland Group (RBS) where he held responsibility
for arrears management for all consumer brands/products within
retail markets across the U.K. and Republic of Ireland.  He
established a new business unit, integrating newly created
collections centres with an established debt recovery operation.  
Andy Tate joined RBS in 2000 from National Westminster Bank
Group, where he held a variety of senior management roles.

Ron Sandler, Executive Chairman, said: "This is another
important appointment for Northern Rock and I am delighted that
Andy will join us as Director of Debt Management.  In this
challenging economic environment, it is essential that we have a
highly effective Debt Management capability, and Andy's
leadership and expertise will be invaluable.  Northern Rock
continues to build a senior team of the highest caliber and this
appointment further strengthens our executive management."

                        About Northern Rock

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

                          *     *     *

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

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


NORTHERN ROCK: Two Non-Executive Directors Join Board
-----------------------------------------------------
Northern Rock plc disclosed that Kent Atkinson and Richard
Coates have joined its Board as Non-Executive Directors,
effective upon each of them obtaining approval from the FSA
under its approved persons regime.  Both will become members of
the Audit Committee and Risk Committee of the Northern Rock
Board.

Mr. Atkinson is the Senior Independent Director and Chairman of
the Audit Committee of Coca-Cola HBC SA.  He is a Non-Executive
Director and Chairman of the Audit Committee of Standard Life
plc, Deputy Chairman of Standard Life's U.K. Financial Services
Board, and a member of Standard Life's Investment Committee.  
Mr. Atkinson is also a Non-Executive Director of Gemalto NV, a
member of its Audit Committee and its Strategy and M&A
committee, and he is a Non-Executive Director of Millicom
International Cellular SA and a member of its Audit and
Compensation committees.  

Mr Coates is Managing Director of Baseline Capital Limited, a
specialist mortgage data analysis and modelling organisation,
which he founded in 2003.  Mr. Coates is also Non- Executive
Director and Chairman of the Audit Committee of Police Mutual
Assurance Society.

Executive Chairman Ron Sandler said: "I am delighted to welcome
both Kent Atkinson and Richard Coates to the Board.  Both Kent
and Richard bring a wealth of valuable experience to further
strengthen the Board and assist Northern Rock in the delivery of
its business plan."

                        About Northern Rock

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

                          *     *     *

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

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


RJR CATERING: Joint Liquidators Take Over Operations
----------------------------------------------------
Ian J. Gould and Edward T. Kerr of PKF (U.K.) LLP were appointed
joint liquidators of RJR Catering Ltd. (formerly RUR Solutions
Ltd.; RJR Solutions Ltd.) on July 18, 2008, for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

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


SISTER RAY: Goes Into Administration
------------------------------------
Sister Ray, a record store, has gone into administration, Ben
Cardew writes for Music Week.  Ian Cadlock and Andy Pear of
Tenon Recovery were appointed as joint administrators.

Neil Brown and Phil Barton, the shop's owners, told Music Week
that the shop is still trading.  The administrators are seeking
interested buyers and are hopeful they can sell the store as a
going concern, the report relates.  Edward Symmons LLP has been
assisting the administrators, the report adds.

Based in London, Sister Ray -- http://www.sisterray.co.uk/-- is  
an alternative music retailer.  The store has an extensive range
of singles and albums on CD and vinyl.  It also sells DVDs, T-
shirts, promo items, and various music rarities.


TARTAN FILMS: Palisades & Media Asia in Dispute Over Film Rights   
----------------------------------------------------------------
U.S.-based Palisades Media is seeking to rebuild Tartan Films
Distribution Ltd. as a trans-atlantic distribution business, the
Daily Variety reports citing Chairman and Chief Executive
Officer Vincent Roberti.

According to the report, Palisades acquired Tartan USA in a
foreclosure process in May.  Mr. Roberti, the Daily Variety
relates, is determined to defend Palisades' rights to titles
held by Tartan Films Distribution Ltd. and Tartan Films Ltd. "We
will defend our rights to any and all films within the present
catalog very aggressively and to the letter of the law," the
report quoted Mr. Roberti.

On the other hand, Hong Kong-based Media Asia, in a public
notice, disclosed that as of July 4, it had terminated all
license agreements with Tartan Films USA and Tartan Films
Distribution and that the rights had reverted to Media Asia or
its U.K. subsidiary Ballcrown, the Daily Variety reports.

However, Mr. Roberti insists that Palisades acquired the movie
rights from the administrator of Tartan Films and Tartan Video,
the report adds.

                      About Tartan Films

Based in United Kingdom, Tartan Films was a well-known
distributor of Asian films, especially those in the horror and
thriller genre.

As previously reported in the TCR-Europe on July 2, 2008, Tartan
Films went into administration after its restructuring attempts
failed.  More than 20 employees have been made redundant.


SEA CONTAINERS: Accused by Asociacion Peruana of Misstatements
--------------------------------------------------------------
An interested non-profit party in Sea Containers Ltd. and its
debtor-affiliates' Chapter 11 cases accused the Debtors of
misstatements regarding to certain prepetition transfers.

Ferrocarril Transandino S.A. was incorporated in 1999 by Sea
Containers Ltd. and Peruval Corp. S.A., with both companies
owning 50% of Transandino.  In March 2006, SCL transferred a 20%
interest in Transandino to its former subsidiary, Orient-Express
Hotels Ltd.  Subsequently, before its bankruptcy filing on
Oct. 15, 2006, SCL transferred its remaining 30% in Transandino
to Orient-Express.

In a notice filed with the U.S. Bankruptcy Court for the
District of Delaware, the Asociacion Peruana de Operadores
Ferrocarriles de Peru, also known as Asociacion Peruana de
Operadores Ferroviarios, notified creditors in the bankruptcy
cases that it has become aware of a potential avoidance action
relating to certain prepetition transfers by SCL of its interest
in Transandino to Orient-Express.

The Asociacion Peruana is a non-profit association formed by
Peruvian railroad companies to promote fair competition in
Peru's railroad business.

"Because the Asociacion has reason to believe that (i) [SCL] did
not receive reasonably equivalent value in connection with the
Transfers and (ii) [SCL] has misstated certain facts relating to
the Transfers, it feels duty-bound to notify the Debtor's
creditors of the facts upon which its belief is based," James M.
Sullivan, Esq., at McDermott Will & Emery LLP, in New York, told
Judge Carey.

In its statement of financial affairs filed with the Court, SCL
asserted that its ownership interest in Transandino ended in
November 2005, which appears to be incorrect, Mr. Sullivan said.  
He noted that the SOFA did not disclose what, if any,
consideration SCL received in connection with the Transfers.

Mr. Sullivan related that the Asociacion was unable to find any
disclosure of the consideration paid in Orient-Express' public
filings with the Securities Exchange Commission.  However, based
on a report issued by Supervisory Board for Investment in Public
Transport Infrastructure in June 2007, the Asociacion believes
that the first 20% interest in Transandino transferred to
Orient-Express could have been sold for more than the face value
of the shares.  The face value of those shares equaled
approximately US$532,859.

The OSITRAN Report disclosed that Transandino's total net worth
was 10,322,000 Nuevos Soles, or US$3,664,832 in 2005, and
16,049,000 Nuevos Soles, or US$5,698,206 in 2006.

According to the SOFA, the Debtor sold its remaining interest in
Orient-Express to a group of financial institutions in two
separate transactions on March 15 and Nov. 17, 2005, Mr.
Sullivan noted.  Although it appears that the Debtor sold its
shares in Orient-Express before the Transfers occurred, he
argued that evidence exists that SCL and Orient-Express were
insiders at the time of the Transfers.

In a letter sent by Transandino to OSITRAN on May 3, 2006,
seeking OSITRAN's approval of the first Transfer, Transandino
stated that the transfer of SCL's interest gradually began in
2002, at a time when Orient-Express was SCL's subsidiary, Mr.
Sullivan said.  He pointed out that the May 3 Letter cited an
example of the gradual assignment of personnel that SCL had
originally assigned to Transandino to Orient-Express.  He added
that letter also disclosed that SCL and Orient-Express shared
common managers and personnel, including:

  (a) John D. Campbell, a director of Orient-Express since 1994,
      and has served as SCL's director;

  (b) James Sherwood, president of Orient-Express and a director
      since 1994, served as SCL's director from 1974 through
      March 20, 2006, when the first Transfer occurred, and
      served as SCL's president until Jan. 5, 2006; and

  (c) Edwin S. Hetherington, secretary of Orient-Express since
      1994, and has served as SCL's vice president, general
      counsel, and secretary.

Because the Asociacion felt duty-bound to report the facts
surrounding the Transfers to SCL's creditors and the Bankruptcy
Court, it sent a letter to Judge Carey and the Office of the
U.S. Trustee on Feb. 7, 2008, Mr. Sullivan disclosed.  The
letter, however, was not filed on the Court's docket or
distributed to creditors.  Hence, the Asociacion filed the
notice.

"Given the significant value of the Transandino shares, the
failure by [SCL] and Orient-Express to disclose the
consideration paid for such shares, and the close relationship
between [SCL] and Orient-Express, creditors may wish to
investigate the matter to obtain detailed information about the
Transfers and determine whether reasonably equivalent value was
paid for the shares," Mr. Sullivan stated.

                      About Sea Containers

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

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

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

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.  The Debtors filed their joint Chapter 11 plan
of reorganization and disclosure statement on July 31, 2008.  
(Sea Containers Bankruptcy News, Issue No. 46; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


WRAPIT PLC: Brings in Administrators from KPMG; Seeks Buyer
-----------------------------------------------------------
Jane Moriarty and Myles Halley of KPMG Restructuring have been
appointed administrators of Wrapit plc on Aug. 4, 2008.

The company, an online wedding list service, has been struggling
for some time and recently encountered severe financial
difficulties.

Ms. Moriarty said: "Despite the directors' best efforts to
secure a rescue deal, they were left with no alternative but to
cease trading the business with immediate effect and to put it
into Administration.  We are seeking a buyer for the business
and its assets, albeit for a limited period."

If anyone is interested in purchasing the business or any
individual site they should contact the administrator on 020
7311 4821.

Customers who believe they may be owed money should call the
following number: 0844 770 1301.

A TCR-Europe report on Aug. 1, 2008, disclosed Wrapit, which
handles about 2,500 to 3,500 wedding lists a year, ran into
financial difficulties after being hit by the credit crunch and
the downturn in the retail market.

  
* S&P Says Downgrades Will Likely Continue for European Credits
---------------------------------------------------------------
European corporate credit quality has eroded in 2008, as
demonstrated by proprietary ratings-based indicators of Standard
& Poor's Global Fixed Income Research, said a published article.  
The article, which is titled "Europe Credit Comment:
Accelerating Downgrades Will Include More Defaults (Premium),"
says that downgrades in Europe through the first seven months of
2008 are outpacing upgrades at roughly a two-to-one rate.
      
"This is a reversal of last year, when upgrades were dominant,
particularly during the first half of the year," noted head of
S&P's Global Fixed Income Research Group, Diane Vazza.  
"Downgrades are likely to continue, as more than 20% of entities
in Europe have a negative outlook or ratings on CreditWatch with
negative implications."


* Fitch: Drop in Q208 UK Personal Insolvencies Positive News
------------------------------------------------------------
Fitch Ratings says falls in the latest quarterly Individual
Voluntary Arrangements and personal bankruptcy data released by
the Insolvency Service for Q208 is positive news for the
consumer debt industry in the UK.  However, the agency remains
concerned about the rising trends in delinquencies and defaults
generally seen across UK credit card trusts in recent months.

Fitch continues to closely monitor IVAs and bankruptcy numbers
reported for the UK, as they tend to have a direct impact on
charge-off levels reported by the UK credit card trusts.  The
slight falls in the seasonally adjusted numbers are regarded by
the agency as encouraging at a time when the economic outlook
for the UK is negative.  However, there will be a lag before the
more difficult economic environment currently being experienced
impacts consumers to the extent that they need to resort to
personal bankruptcies or IVAs to manage their debts.  Relentless
pressure on household disposable income from factors such as
inflation and rising energy prices is expected to continue and
will eventually render household budgets unmanageable for many
consumers.

On a seasonally-adjusted basis, the provisional data for Q208
showed a slight decline in both IVAs and bankruptcies from Q108,
reversing the quarter-on-quarter increase reported in Q108.  
IVAs fell 3.2% in Q208 from the previous quarter, with
bankruptcies also dropping, by 1.3% from the previous quarter.  
The seasonally-adjusted numbers also showed an overall decline
of 8.3% in total IVAs and bankruptcies in Q208, from the same
period the previous year.  It is, however, worth noting that on
a non-seasonally adjusted basis, overall quarter-on-quarter IVAs
and bankruptcies increased for a second quarter in a row,
although they remain lower than Q207.

Fitch also monitors closely the extent to which cardholders in
the portfolios rated by the agency use debt management plans, as
it is aware that these represent, for certain borrowers, an
alternative to bankruptcies and IVAs.  Hence, they could provide
an early indicator of potential increases in losses, although
the latest data available shows no signs of a significant shift
in the volumes on such programs.

Despite the UK economy entering a more difficult economic period
in recent months, the agency has not seen any significant
increase in outstanding balances on UK credit card portfolios,
which would suggest that lenders are not increasing the
availability of unsecured credit, while borrowers themselves are
not increasing their reliance on this form of funds.

Further details on the performance of all Fitch-rated UK credit
card trusts, as well as relevant economic analysis, will be
available on Fitch's quarterly copy of the Movers & Shakers
(UK), which will be published shortly.


                            *********

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

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

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

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

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy
Agravante, Julybien Atadero, 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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

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

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


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