TCREUR_Public/080808.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, August 8, 2008, Vol. 9, No. 157

                            Headlines


A U S T R I A

ABAZOSKI KG: Claims Registration Period Ends August 21
BALMANIAN LLC: Claims Registration Period Ends August 21
FACILITY PLUS: Claims Registration Period Ends August 19
GARGYAN KEG: Claims Registration Period Ends August 19
GEROMICHALOS LLC: Claims Registration Period Ends August 19


B E L A R U S

TURKCELL ILETISIM: Inks Deal to Buy 80% of Belarus Telecom


B U L G A R I A

KREMIKOVTZI AD: Sofia Court Commences Insolvency Proceedings


F R A N C E

AKERYS HOLDINGS: Moody's Lowers Corporate Family Rating to B1
DELPHI CORP: GM Says Delphi-Related Charges Reach US$11 Billion
DELPHI CORP: Court Rejects Appaloosa Bid to Dismiss Lawsuit
DELPHI CORP: Court Extends Plan-Filing Deadline to October 31


G E R M A N Y

BESTATTUNGSHAUS MINDEN: Claims Registration Period Ends Aug. 17
DEUTSCHE GESELLSCHAFT: Claims Registration Period Ends August 16
EDV RESSOURCEN: Claims Registration Period Ends August 15
ELTCON ELEKTRO: Claims Registration Period Ends August 15
EMSLAND GUSSASPHALT: Claims Registration Period Ends August 18

EO LOGISTIK: Claims Registration Period Ends August 15
EUROHOME MORTGAGES: Fitch Puts Class X Loan Rating on Watch Neg.
FACH-WERK HANDWERKSGEMEINSCHAFT: Claims Filing Ends August 15
HORSE EVENT: Claims Registration Period Ends August 15
KEMATEN COSMETICS: Claims Registration Period Ends August 15

MARBAR GASTRONOMIE: Claims Registration Period Ends August 17
NKG GRUNDSTUECKS: Creditors' Meeting Slated for August 18
PROSIEBENSAT.1 MEDIA: Q2 2008 Group EBITDA Up 28% to EUR203.7MM


I R E L A N D

PFIZER CORK: To Close Business After Failed Asset Sale


I T A L Y

EUROHOME MORTGAGES: Fitch Puts Class X Loan Rating on Watch Neg.


K A Z A K H S T A N

DARHAN JSC: Creditors Must File Claims by September 24
ENERGO COMPLECT: Claims Deadline Slated for September 23
IDEAL PLUS: Claims Filing Period Ends September 19
INTERNATIONAL BUSINESS: Creditors' Claims Due on September 23
LTD OIL: Claims Registration Ends September 19

MEHOS LLP: Creditors Must File Claims by September 19
VESTA ELECTRIC: Claims Deadline Slated for September 19


K Y R G Y Z S T A N

RUK-ENERGY+K LLC: Creditors Must File Claims by September 12


L U X E M B O U R G

ORCO PROPERTY: Moody's Lowers Corporate Family Rating to Caa1


R O M A N I A

* Romanian Banking Industry Facing Increased Risks, S&P Reports


R U S S I A

ARKAIM LLC: Court Starts Bankruptcy Supervision Procedure
BAYKAL-TEKH-CENTRE: Names A. Efremova as Administrative Receiver
BIORANTA CJSC: Names N. Prilepin as Administrative Receiver
OCEAN CJSC: Proofs of Claim Filing Deadline Set September 5
OFFSET PAPERS: Court Starts Bankruptcy Supervision Procedure

PBB LPN: Fitch Assigns 'B-' Long-Term Note Rating
STROY-TORG-SERVICE: Court Starts Bankruptcy Supervision Process
TEPLO-ENERGO-SERVICE: Court Sets Supervision Hearing November 19
SEVERSTAL OAO: Completes US$775 Million Esmark Inc. Acquisition
SEVERSTAL OAO: Metiz Unit Acquires Redaelli Tecna SpA

TNK-BP INT'L: S&P Chips Long-Term Credit & Sr. Debt Rating to BB
ULYANOVSKIY MECHANICAL: Court Sets Supervision Hearing Sept. 4

* S&P Revises Russian Banking Industry's Country Risk Assessment


S P A I N

MARTINSA-FADESA: Appointed Administrators Resume Work

* Fitch: Mortgage Interest Payment Shock to Affect Spanish RMBS

S W I T Z E R L A N D


GENERAL MOTORS: Overall Truck Sales Decline 41.5% in July 2008
GENERAL MOTORS: Says Delphi-Related Charges Reach US$11 Billion
GENERAL MOTORS: Can Participate in Delphi Suit vs. Appaloosa
SEMGROUP LP: May Draw US$150 Million from BofA's DIP Financing


T U R K E Y

DOGAN YAYIN: Fitch Holds 'BB-' LT Local & Foreign Currency IDRs
HURRIYET: Fitch Holds 'BB' ID Rating with Stable Outlook
TURKCELL ILETISIM: Earns US$426.4 Mln for 2nd Qtr Ended June 30
TURKCELL ILETISIM: Inks Deal to Buy 80% of Belarus Telecom


U K R A I N E

ATOL-PLUS LLC: Creditors Must File Proofs of Claim by August 16
FUND OF ASSISTANCE: Creditors Must File Claims by August 20
KRUG-AUTO LLC: Creditors Must File Proofs of Claim by August 20
MOD OJSC: Creditors Must File Proofs of Claim by August 20
LAVANDA LLC: Creditors Must File Proofs of Claim by August 20

TCHIBES LLC: Creditors Must File Proofs of Claim by August 20
TECHNICS SERVICE: Creditors Must File Proofs of Claim by Aug. 16
TOUR-POLOZ: Creditors Must File Proofs of Claim by Aug. 20
UTEK LLC: Creditors Must File Proofs of Claim by August 16
UZ AND ME: Creditors Must File Proofs of Claim by August 20


U N I T E D   K I N G D O M

BANBURY PERSONNEL: Brings in Liquidators from Tenon Recovery
BORDERFOAM LTD: Joint Liquidators Take Over Operations
CSRL MECHANICAL: Taps Liquidators from Vantis
DIAMOND LIFESTYLE: Ian S. Carr Leads Liquidation Procedure
FEDERAL MOGUL: T&N Asbestos Victims to Get GBP2 Mln in Payments

GEMINI PRODUCTIONS: Calls in Liquidators from Tenon Recovery
GENERAL TRADING: Administrators Sell Business as Going Concern
ITV PLC: First Half 2008 EBITA Down 20% to GBP121 Million
ITV PLC: S&P Cuts Long-Term Corp. Credit Rating to BB+ from BBB-
NORTEL NETWORK: Posts US$251 Mln Net Loss for First Half 2008

REFCO INC: Ex-CEO Phillip Bennett Settles with US SEC
S & E CLEANING: Taps Liquidators from Tenon Recovery
SITE SPACE: Claims Filing Period Ends October 31
SYNCORA: Moody's Puts B2 IFSR Under Review for Possible Upgrade
SYNCORA HOLDINGS: Closes XL Capital & Merrill Lynch Transactions

STORE TO DOOR: Appoints Liquidators from Vantis

* IMF Cuts the United Kingdom's 2008 Growth Forecast to 1.4%
* S&P Says EEMEA Utilities to Face Economic Challenges Ahead
* Consumer Spending Downturn to Hit UK Retail & Leisure Sectors
* UK Pension Funds Has GBP41BB Net Deficit in Mid-July, LCP Says

* BOOK REVIEW: American Express


                            *********


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


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

         Dr. Katharina Widhalm-Budak
         Favoritenstrasse 22/12a
         1040 Vienna
         Austria
         Tel: 513 10 37
         Fax: DW 22
         E-mail: widhalm-budak@anwaltsteam.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:10 a.m. on Sept. 4, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on June 30, 2008, (Bankr. Case No. 2 S 75/08d).


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

         Dr. Arno Maschke
         Mariahilfer Strasse 50
         1070 Vienna
         Austria
         Tel: 523 62 00
         Fax: 526 72 74
         E-Mail: maschke@sup.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:10 a.m. on Sept. 4, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 1, 2008, (Bankr. Case No. 2 S 77/08y).


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

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Sept. 2, 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 30, 2008, (Bankr. Case No. 4 S 100/08w).


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

         Dr. Susanne Fruhstorfer
         Seilerstatte 17
         1010 Vienna
         Austria
         Tel: 512 5776
         Fax: 512 5776 50
         E-mail: office@fg-lawyers.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Sept. 2, 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 30, 2008, (Bankr. Case No. 4 S 102/08i).


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

         Dr. Stephan Riel
         Landstrasser Hauptstrasse 1/2
         1030 Vienna
         Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Sept. 2, 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 30, 2008, (Bankr. Case No. 4 S 101/08t).


=============
B E L A R U S
=============


TURKCELL ILETISIM: Inks Deal to Buy 80% of Belarus Telecom
----------------------------------------------------------
Turkcell Iletisim Hizmetleri A.S. has signed a sale-and-purchase
agreement to acquire a 80% stake in Belarusian
Telecommunications Network (BeST).  The completion of the
transaction will be subject to the fulfillment of the conditions
set forth in the SPA.

The stake will be acquired from the State Committee on Property
of the Republic of Belarus for US$500 million.  The payment is
expected to be realized in three tranches of which US$300
million is expected to be paid on the closing date, which is
expected to be 30 days after the signature date and additional
US$100 million tranches are expected to be paid on
Dec. 31, 2009 and 2010 respectively.  An additional payment of
US$100 million shall be made when BeST records a full-year
positive net income for the first time.

Turkcell CEO Sureyya Ciliv noted, "The acquisition of BeST
represents an opportunity for Turkcell to gain access to a
market with a growth potential.  Belarus  is an attractive
emerging market within Turkcell's growth geography with its
young and well educated population and steadily growing economy.
We are also happy to be starting our operations with an already
established third operator in Belarus.  We believe we can use
our complimentary skills we gained in Ukraine and CIS very
effectively in Belarus to differentiate BeST as soon as
possible."

                        About Turkcell

Headquartered in Instanbul, Turkey, Turkcell Iletisim Hizmetleri
A.S. -- http://www.turkcell.com.tr/eng-- provides high-quality
mobile voice and data services through its own GSM network.  The
company also operates in the Ukraine through its indirect
subsidiary Astelit, in Azerbaijan, Kazakhstan, Georgia and
Moldova through its associate Fintur, and in Northern Cyprus
through its wholly owned subsidiary Kibris Telekom.

                         *     *     *

Turkcell Iletisim Hizmetleri continues to carry Ba2
foreign currency and domestic currency corporate family ratings
with positive outlook from Moody's Investors Service.  The
agency affirmed the ratings in February 2008.

Turkcell also continues to carry BB foreign currency long-term
corporate credit rating with positive outlook from Standard &
Poor's Ratings Services.

Turkcell continues to carry Fitch Ratings' BB foreign currency
Issuer Default rating with stable outlook, and BB+ local
currency Issuer Default rating with positive outlook.


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


KREMIKOVTZI AD: Sofia Court Commences Insolvency Proceedings
------------------------------------------------------------
The Sofia City Court has commenced insolvency proceedings
against Kremikovtzi AD after declaring it bankrupt, Bloomberg
News reports citing Bulgaria's Ministry of Energy and Economy.
The court has appointed a temporary bankruptcy administrator for
the bankrupt steelmaker.

"The court's decision will give Kremikovtzi the chance to
restore its output to full capacity and generate sufficient
financial resources to help it meet European Union anti-
pollution requirements," the Bloomberg News cites the ministry
in an e-mail.

The court also ruled that Kremikovtzi's insolvency started on
Dec. 31, 2005.  It also set the first creditors meeting on
Sept. 26, 2008.

The company's largest local creditors include Bulgargas, the
National Electricity Co. and State Railways.

                    Insolvency Starting Date

Volker Schwich, an executive at ArcelorMittal, told Bloomberg
News that setting the insolvency date back to 2005 would affect
the interest of the bondholders.  Kremikovtzi issued in 2006
around EUR325 million in bonds, which the company had defaulted.

Houlihan Lokey Howard & Zukin, which represents the bondholders,
said its clients is urging the Bulgarian government and the
court to carry out the proceedings "in a fair and transparent
manner and that bondholders' rights be respected," Bloomberg
News says.

Houlihan's clients, including York Credit Opportunities Fund LP
and QVT Fund, currently control Kremikovtzi's collateralized
assets.

As appeared in the TCR-Europe on July 31, 2008, the High Court
of England and Wales issued a decision ordering Kremikovtzi to
repay EUR347 million in principal and interest due to Law
Debenture Trust Corporation, trustee for the company's seven-
year 12% notes due 2013.

Law Debenture claimed Kremikovtzi breached the terms of the
notes, which made them immediately payable.  The trustee further
claimed Kremikovtzi failed to pay interest to noteholders
despite receiving notices from March to May.

In its ruling, the High Court ordered that Kremikovtzi
reclassify the principal and interest due as a short-term
liability.

                               Sale

The commencement of insolvency proceedings against Kremikovtzi
signaled the start of a bidding war for a 71% stake in the
steelmaker between ArcelorMittal and Vorskla Steel AG.  Both
firms said they would acquire the stake if Kremikovtzi is
declared insolvent.

Meanwhile, bondholders might step in if the stake sale fails.

"If no suitable bidders come forward to buy the plant in
bankruptcy, bondholders intend to implement their own
restructuring plan," Justin Holland of Houlihan told Bloomberg
News.

                        About Kremikovtzi

Headquartered in Sofia, Bulgaria, Kremikovtzi AD --
http://www.kremikovtzi.com/-- is a single-site steel producer
in Bulgaria that reported BGN896 million in revenues in 2006.
It explores and produces iron and ore fields.

The Sofia City Court appointed administrators April 30, 2008, at
Kremikovtzi AD in relation with the steel mill's deteriorating
financial position.  As of Dec. 31, 2007, the company had
BGN1.63 billion (US$1.3 billion) in total debts.

                          *     *     *

Kremikovtzi AD carries Moody's Investors Service corporate
family rating of Caa3 with a developing outlook.


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


AKERYS HOLDINGS: Moody's Lowers Corporate Family Rating to B1
-------------------------------------------------------------
Moody's Investors Service has downgraded to B1 from Ba3 the
corporate family rating of Korreden S.A., the ultimate holding
company for the French homebuilder Akerys.  At the same time,
Moody's downgraded to B3 from B1 the rating of the EUR300
million of Senior Floating-Rate Notes dues 2014 issued by Akerys
Holdings SA, a finance subsidiary of Korreden.  The company's
probability of default rating (PDR) is now B1.  LGD assessment
remains unchanged at LGD5 (77.49%).  The outlook for all ratings
is negative.

The rating downgrades reflect the further reduction in the
number of reservations for Akerys' apartments and rising rate of
cancellations for Q3 2008, which have led to a notable year-on-
year decrease in notarized sales.  This, in turn, has caused the
company's profitability, cashflow and interest coverage to
weaken.  We do not see a recovery in the French buy-to-let
housing market beginning before well into 2009 as consumer
confidence has greatly diminished and affordability is a thorny
issue in this market.  This rating actions conclude the rating
review initiated in March 2008 and maintained in June.

At its downgraded level, the B1 corporate family rating assigned
to the group's ultimate parent company, Korreden S.A., continues
to reflect Akerys' leading position in the buy-to-let segment of
the homebuilding market and its good geographic diversification.
The ratings also factor in the supportive legal framework for
homebuilding in France and the group's conservative risk-
management guidelines, which restrict the level of speculative
development undertaken.  Moody's also recognizes that Akerys
benefits from its integrated business model, which yields more
stable cash flows than a pure homebuilder due to the recurring
nature of some of its ancillary businesses such as financial
products brokerage and real estate services.  The ratings also
incorporate the group's projections for positive free cash flow
over the coming financial year, its current solid liquidity
position and management's proactive and cautious management of
inventory levels.

The negative outlook reflects the possibility that, despite
long-term demographic factors supporting the need for housing in
France, there could be a continued deterioration in demand.  The
rating outlook could be stabilized if there is evidence of a
recovery in the French housing market that supports a return to
improved sales volumes leading towards a more comfortable
liquidity position and improved financial strength indicators,
with interest cover (EBITA/gross interest expense) being
sustained at 3.0x.

Moody's adds that downward pressure on the rating would result
in the event that a further reduction in sales volumes leads to
a build-up of unsold inventory and/or a deterioration of its
liquidity position and/or poorer margins such that the company's
financial strength and capital structure are weakened with net
debt to EBITDA deteriorating to levels above 6.5x or interest
cover weakening to below 1.5x or total debt to total
capitalization increases to above 65%.

Debt affected:

Akerys Holdings SA backed senior secured notes to B3 from B1

The last rating action for Korreden SA was June 16, 2008 when
the corporate family rating was downgraded to Ba3 from Ba2 and
placed on review for possible further downgrade.

Headquartered in Toulouse, France, Akerys is the largest player
in the buy-to-let segment of the French homebuilding market with
8,571 housing units sold in 2006/07.  The group's main
shareholder is investment holding company Qualis SCA, with a 76%
interest.  In 2006/07, the group reported revenues of EUR815
million.


DELPHI CORP: GM Says Delphi-Related Charges Reach US$11 Billion
-------------------------------------------------------------
General Motors Corp. said charges related to Delphi Corp. has
reached approximately US$11,000,000,000.  In a presentation
furnished to securities analysts, GM said made a
US$2,753,000,000 adjustment to its Delphi reserve, "primarily
due to updated estimates related to Delphi's ongoing
reorganization."  The adjustment reflects higher expected
obligations (e.g. net pension liabilities) and additional
uncertainty around nature, value and timing of GM recoveries.
GM's one-time losses due to Delphi have totaled US$3,484,000,000
for the first half of 2008.

GM, which contributes to over 30% of Delphi's revenues, reported
a net loss of US$15,471,000,000 or US$27.33 per share for the
second quarter of 2008.  The quarterly loss, according to
Bloomberg News, is the third biggest in its 100-year history.

"Second quarter charges of US$2.8 billion and year to date
charges of US$3.5 billion were recorded for increased
liabilities under our Delphi Benefit Guarantee Agreements,
primarily due to expectations of increased obligations and
updated estimates reflecting the nature, value and timing of our
recoveries upon Delphi's emergence from bankruptcy," GM said in
its news release.

A former unit of GM, Delphi was set to emerge from bankruptcy in
mid-April but obtained problems with its US$2,550,000,000 exit
equity financing from Appaloosa Management, L.P.  The plan of
reorganization of Delphi, which has been confirmed by the U.S.
Bankruptcy Court for the Southern District of New York, provides
that GM will receive cash, notes and other securities in
exchange for the consideration it provided to Delphi under their
agreements.  Appaloosa backed out from their investment
agreement after Delphi sought US$2,825,000,000 of its
US$6,100,000,000 exit debt financing from GM, its biggest
customer.

GM said that its second quarter results were primarily driven by
several factors:

  -- significant losses in GM North America (GMNA) due to
     continuing U.S. industry volume declines and shifts in
     vehicle mix, the long strike at American Axle and large
     lease-related charges;

  -- a number of special charges associated with GM's ongoing
     restructuring actions; and

  -- continued losses at GMAC Financial Services (GMAC) and
     updated estimates regarding recoveries and expectations of
     assumed benefit obligations in the Delphi bankruptcy.

Excluding expenses considered by GM to be one-time, including
its adjustment to reserves for bankrupt Delphi Corp., the loss
was US$6,300,000,000, or US$11.21 a share.

Standard & Poor's has cut GM's credit rating to B-, six levels
below investment grade, as falling U.S. sales have required the
automaker to use more cash.  GM says that its readily-available
cash assets total US$21,000,000,000 and it still has access to
US$5,000,000,000 under its undrawn U.S. credit facilities.

                           About GM

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

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

Standard & Poor's has cut GM's credit rating to B-, six levels
below investment grade, as falling U.S. sales have required the
automaker to use more cash.  GM says that its readily-available
cash assets total US$21,000,000,000 and it still has access to
US$5,000,000,000 under its undrawn U.S. credit facilities.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Court Rejects Appaloosa Bid to Dismiss Lawsuit
-----------------------------------------------------------
As widely reported, Judge Robert D. Drain of the U.S. Bankruptcy
Court for the Southern District of New York declined to approve
Appaloosa Management, L.P., et al.'s request for dismissal of
Delphi Corp.'s US$2,550,000,000 lawsuit against them.

Delphi has accused Appaloosa and other investors of defrauding
the Court by stating that they had every intention of performing
under the Equity Purchase and Commitment Agreement.  Appaloosa,
however, argued that Delphi cannot seek specific performance
because it is currently unable to perform under the conditions-
precedent of the EPCA, including obtaining commitment to its
US$6,100,000,000 debt financing and the completion of the rights
offering.

The Wall Street Journal reported that Judge Drain dismissed a
portion of Delphi's complaint, but he rejected most of the
defendants' arguments.  Judge Drain also allowed Delphi to
pursue its fraud claim against the Appaloosa-led group.

The ruling allows Delphi to continue its bid to force the Plan
Investors to make good on the equity investment, WSJ's David
McLaughlin said.

The Plan Investors had also pointed to provision in the EPCA
which provide that the aggregate liability of the the Plan
Investors for any reason, including, for any willful breach,
prior to December 10, 2007, will not exceed US$100,000,000, and
for any acts occurring thereafter, will not exceed
US$250,000,000.

Judge Drain, however, declined to cap damages at the EPCA at
US$250,000,000.  General Motors previously said that the terms
and conditions of a new or modified plan, which it is
negotiating with Delphi and the Official Committee of Unsecured
Creditors, will depend in part on the amount of Delphi's
recovery in the litigation.

According to Bloomberg News, Judge Drain dismissed almost all
claims Delphi made against Goldman Sachs Group Inc. and said any
damages award against the parents of investors Harbinger Del-
Auto Investment Co. Ltd. and Pardus DPH Holding LLC should be
capped.  Goldman Sachs & Co. previously stated that it had not
obligation to close on the EPCA if other parties, including
Appaloosa, failed to perform their obligations under the
agreement.

Bloomberg's Christopher Scinta added that the Court also turned
aside Delphi's effort to subordinate in priority (or disallow)
any claims the investors, other than Appaloosa, hold against
Delphi.  Judge Drain, according to the same report, also denied
part of Delphi's fraud claim against Appaloosa, though he told
Delphi attorneys they can revise their complaint by the end of
the week to seek reinstatement of that claim.

            GM Allowed to Join As Party-In-Interest

Judge Drain also overruled the Plan Investors' objection to
General Motors Corporation's participation as party-in-interest
in the Adversary Proceedings.  According to Bloomberg News,
Judge Drain said Delphi will not settle the adversary cases
without "obtaining input" ahead of time from GM.

Like A-D Acquisition Holdings, LLC, and Appaloosa Management
L.P. and other defendants to Delphi's US$2,550,000,000
complaint, UBS Securities LLC expressed opposition to General
Motors' participation as party-in-interest.

General Motors, in response, to the objections, clarified that
it does not seek to intervene, but instead simply requests to be
afforded admission to participate as a monitor in the Adversary
Proceedings.

Michael P. Kessler, Esq., at Weil, Gotshal & Manges LLP, in New
York, notes that the role sought by GM is subsumed within the
greater rights that would be afforded to GM were it to exercise
its right to intervene as a party to the Adversary Proceedings.
In no way, then, does GM's proposal circumscribe any party's
rights or deprive them of any protectable interests, he asserts.

GM also emphasized that it does not seek to propose settlement
of the dispute or take ownership of the Debtors' claims, nor is
GM asserting rights that are derivative of another party's
rights in the Chapter 11 cases, Mr. Kessler stressed.

GM, Delphi and the Official Committee of Unsecured Creditors
have agreed to terms of GM's participation in the Adversary
Proceedings.  Their stipulation, which has been approved by
Judge Drain, provides that:

  (1) Weil, Gothshal and Manges, counsel of GM, will be served
      with all pleadings and other papers in accordance with
      Rule 5 of the Federal Rules of Civil Procedure and Rule
      7005 of the Federal Rule of Bankruptcy Procedure;

  (2) GM, through its counsel, may participate in the Adversary
      Proceedings in a monitoring role, and will be permitted
      to:

         (i) appear before the Court on any matter, including at
             hearings and, as appropriate, chambers conferences;

        (ii) attend mediation sessions and other formal
             settlement negotiations, subject to any
             restrictions by the mediator; and

       (iii) participate in the discovery process, including
             attendance at depositions, access to all
             documents produced and written discovery requests
             and responses, and deposition transcripts and
             exhibits.

  (3) GM will sign and comply with the confidentiality
      restrictions in the Stipulation and Agreed Protective
      Order Governing Production and Use of Confidential and
      Highly Confidential Information entered in the Adversary
      Proceedings;

  (4) GM will have access to all documents produced and written
      discovery requests and responses, and deposition
      transcripts and exhibits;

  (5) Weil Gotshal, on behalf of GM, will be authorized to
      evaluate the Adversary Proceedings.  Neither Weil Gotshal
      nor GM will use materials provided pursuant to the
      Stipulation and Order for any other purpose;

  (6) The agreement is without prejudice to:

         (i) GM seeking further participation rights in the
             Adversary Proceedings;

        (ii) any party opposing the motion;

       (iii) any party seeking greater restrictions; and

        (iv) GM opposing restrictions;

  (7) The agreement is without prejudice to GM seeking to share
      discovery materials with GM personnel in connection with
      testimony by the personnel at depositions, hearings or
      trial, and if the parties cannot agree, the dispute may be
      presented to the Court; and

  (8) Delphi will not settle either of the Adversary Proceedings
      without obtaining input in advance from GM.

Delphi lawyers will confer with GM's lawyers on a regular and
timely basis concerning the Adversary Proceedings.

The Stipulation will be effective for only so long as the Global
Settlement Agreement and Master Restructuring Agreement entered
into between General Motors and Delphi are not terminated.

                           About GM

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

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

Standard & Poor's has cut GM's credit rating to B-, six levels
below investment grade, as falling U.S. sales have required the
automaker to use more cash.  GM says that its readily-available
cash assets total US$21,000,000,000 and it still has access to
US$5,000,000,000 under its undrawn U.S. credit facilities.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Court Extends Plan-Filing Deadline to October 31
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
extended Delphi Corp. and its debtor-affiliates' exclusive
periods to:

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

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

As reported by the Troubled Company Reporter on July 29, 2008,
John Wm. Butler, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Chicago, Illinois, recalled that on April 4, 2008, the
Debtors announced that although they had met the conditions
required to substantially consummate the Plan, including
obtaining US$6,100,000,000 of exit financing, Delphi's Plan
Investors refused to participate in a closing.

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

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

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

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

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

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

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

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

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


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


BESTATTUNGSHAUS MINDEN: Claims Registration Period Ends Aug. 17
---------------------------------------------------------------
Creditors of Bestattungshaus Minden GmbH have until Aug. 17,
2008, to register their claims with court-appointed insolvency
manager Georg Welslau.

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

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         Fourth Floor
         Gerichtstrasse 66
         33602 Bielefeld
         Germany

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

The insolvency manager can be reached at:

         Georg Welslau
         Marienstr. 62
         32427 Minden
         Germany

The District Court of Bielefeld opened bankruptcy proceedings
against Bestattungshaus Minden GmbH on June 30, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Bestattungshaus Minden GmbH
         Stiftsallee 31
         32425 Minden
         Germany


DEUTSCHE GESELLSCHAFT: Claims Registration Period Ends August 16
----------------------------------------------------------------
Creditors of Deutsche Gesellschaft fuer Finanzwesen mbH have
until Aug. 16, 2008, to register their claims with court-
appointed insolvency manager Matthias Sticher.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Aug. 13, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Eschwege
         Meeting Hall 2
         First Floor
         Friedr.-Wilh.-Strasse 39
         37269 Eschwege
         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:

         Matthias Sticher
         Herkulesstrasse 3-7
         45127 Essen
         Germany

The District Court of Eschwege opened bankruptcy proceedings
against Deutsche Gesellschaft fuer Finanzwesen mbH on June 19,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Deutsche Gesellschaft fuer Finanzwesen mbH
         Reichensachser Strasse 19B
         37269 Eschwege
         Germany


EDV RESSOURCEN: Claims Registration Period Ends August 15
---------------------------------------------------------
Creditors of Edv Ressourcen Consulting Overath GmbH have until
Aug. 15, 2008, to register their claims with court-appointed
insolvency manager Joachim Klein II.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.m. on Sept. 9, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Hall 142
         First Floor
         Luxemburger Str. 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Joachim Klein II
         Hansaring 79-81
         50670 Cologne
         Germany

The District Court of Cologne opened bankruptcy proceedings
against Edv Ressourcen Consulting Overath GmbH on July 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Edv Ressourcen Consulting Overath GmbH
         Attn: Helmut Overath, Manager
         Zehnthof 31
         50129 Bergheim
         Germany


ELTCON ELEKTRO: Claims Registration Period Ends August 15
---------------------------------------------------------
Creditors of ELTCON Elektro- und Schaltschrankanlagen-Bau GmbH
have until Aug. 15, 2008, to register their claims with court-
appointed insolvency manager Klaus W. Gerling.

Creditors and other interested parties are encouraged to attend
the meeting at 9:40 a.m. on Sept. 15, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Hall 1240
         12th Floor
         Luxemburger Str. 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Klaus W. Gerling
         Mediapark 6 B
         50670 Cologne
         Germany

The District Court of Cologne opened bankruptcy proceedings
against ELTCON Elektro- und Schaltschrankanlagen-Bau GmbH on
June 5, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         ELTCON Elektro- und Schaltschrankanlagen-Bau GmbH
         Liebigstr. 32-34
         50823 Cologne
         Germany

         Attn: Andreas Guennewig
         Buelowstr. 74
         50733 Cologne
         Germany


EMSLAND GUSSASPHALT: Claims Registration Period Ends August 18
--------------------------------------------------------------
Creditors of Emsland Gussasphalt GmbH & Co. KG have until
Aug. 18, 2008, to register their claims with court-appointed
insolvency manager Clemens Sandhaus.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on Aug. 27, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Lingen (Ems)
         Hall Z 17
         New Building
         Burgstrasse 28
         49808 Lingen (Ems)
         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:

         Clemens Sandhaus
         Alter Pferdemarkt 2
         49808 Lingen (Ems)
         Germany
         Tel: 0591/80037-65
         Fax: 0591/80037-11

The District Court of Lingen (Ems)opened bankruptcy proceedings
against Emsland Gussasphalt GmbH & Co. KG on June 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Emsland Gussasphalt GmbH & Co. KG
         Attn: Friedhelm Borgmann, Manager
         Industriestrasse 14
         49832 Freren
         Germany


EO LOGISTIK: Claims Registration Period Ends August 15
------------------------------------------------------
Creditors of EO Logistik GmbH have until Aug. 15, 2008, to
register their claims with court-appointed insolvency manager
Dr. Philipp Grub.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Sept. 5, 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 Pforzheim
         Room 142
         Lindenstr. 8
         75175 Pforzheim
         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. Philipp Grub
         Humboldtstr. 16
         70178 Stuttgart
         Germany

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

The Debtor can be reached at:

         EO Logistik GmbH
         Attn: Ebrahim Omidwar, Manager
         Baumgartenstr. 6
         75217 Birkenfeld
         Germany


EUROHOME MORTGAGES: Fitch Puts Class X Loan Rating on Watch Neg.
----------------------------------------------------------------
Fitch Ratings has placed Eurohome Mortgages 2007-1 plc, a pan-
European RMBS transaction originated by Deutsche Bank AG and
Deutsche Bank Mutui S.p.A., on Rating Watch Negative.  This
reflects Fitch's concerns surrounding the extent of the levels
of arrears and defaults seen in the Italian portfolio, as well
as the portion of terminated loans in the German pool.  The
rating actions are:

  -- Class A (ISIN XS0309227279) 'AAA' on RWN

  -- Class B (ISIN XS0309230497) 'AA' on RWN

  -- Class C (ISIN XS0309232196) 'A' on RWN

  -- Class D (ISIN XS0309232600) 'BBB' on RWN

  -- Class E (ISIN XS0309233244) 'BBB' on RWN

  -- Class X (ISIN XS0309234309) 'BB+' on RWN

  -- German Mortgage Early Repayment Certificates
     (ISIN XS0309236007) affirmed at 'AAA'; Outlook Stable

  -- Italian Mortgage Early Repayment Certificates
     (ISIN XS0309788031) affirmed at 'AAA'; Outlook Stable

Fitch has requested from Deutsche Bank a full loan-by-loan
breakdown of the two pools of mortgages to conduct a full
analysis.  The agency expects to resolve the RWN within the next
three months.  Further information will also be requested from
Deutsche Bank to help facilitate this analysis.

Investor reports for August 2008 show that there has been a draw
on the reserve fund to the amount of EUR813,177.  The draw was
due to the provisioning for defaulted loans in the Italian part
of the pool, which for the last quarter were in the amount of
EUR1.2 million, bringing the cumulative balance of defaulted
loans to 0.75% of the Italian pool, i.e. 0.49% of the total
pool.

Loans in arrears by more than three months in the Italian pool
have been increasing since close and as of June 2008, they stood
at 6.02% of the Italian portfolio outstanding.

In the German portfolio, reported terminated loans represent
7.56% of the current portfolio outstanding, while loans with one
or more missed payments make up 8.29% of the German portfolio
outstanding.

To date, neither of the two pools has reported any losses.


FACH-WERK HANDWERKSGEMEINSCHAFT: Claims Filing Ends August 15
-------------------------------------------------------------
Creditors of Fach-Werk Handwerksgemeinschaft GmbH have until
Aug. 15, 2008, to register their claims with court-appointed
insolvency manager Dr. Juergen Spliedt.

The District Court of Charlottenburg will verify the claims set
out in the insolvency manager's report at 9:25 a.m. on Oct. 10,
2008, at:

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

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

The insolvency manager can be reached at:

         Dr. Juergen Spliedt
         Uhlandstr. 165/166
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy
proceedings against Fach-Werk Handwerksgemeinschaft GmbH on
May 16, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Fach-Werk Handwerksgemeinschaft GmbH
         Mansfelder Str. 62
         10709 Berlin
         Germany


HORSE EVENT: Claims Registration Period Ends August 15
------------------------------------------------------
Creditors of Horse Event International GmbH have until Aug. 15,
2008, to register their claims with court-appointed insolvency
manager Dr. Helmut Eisner.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on Sept. 16, 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 Mosbach
         Room 12
         Lohrtalweg 2
         74821 Mosbach
         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. Helmut Eisner
         Josef-Schmitt-Str. 10
         97922 Lauda-Koenigshofen
         Germany
         Tel: 09343/627590

The District Court of Mosbach opened bankruptcy proceedings
against  Horse Event International GmbH on July 14, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Horse Event International GmbH
         Attn: Josef Hoefling, Manager
         Wiesengrund 16
         97956 Werbach-Brunntal
         Germany


KEMATEN COSMETICS: Claims Registration Period Ends August 15
------------------------------------------------------------
Creditors of Kematen cosmetics Deutschland GmbH have until
Aug. 15, 2008, to register their claims with court-appointed
insolvency manager Dr. Thomas Kaiser.

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

The meeting of creditors will be held at:

         The District Court of Freiburg
         Hall I
         Holzmarkt 2
         Freiburg
         Germany

The Court will verify the claims set out in the insolvency
manager's report at 11:00 a.m. on Sept. 15, 2008, at:

         Paulussaal
         Dreisamstr. 3
         79098 Freiburg
         Germany

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

The insolvency manager can be reached at:

         Dr. Thomas Kaiser
         LG-Fach 37
         Wilhelmstr. 1b
         79098 Freiburg
         Germany
         Tel: 0761/703940
         Fax: 0761/7039410

The District Court of Freiburg opened bankruptcy proceedings
against Kematen cosmetics Deutschland GmbH on July 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Kematen cosmetics Deutschland GmbH
         Attn: Bernhard Scholz and Martin Scholz, Managers
         Ludwig-Kegel-Str. 15
         79853 Lenzkirch
         Germany


MARBAR GASTRONOMIE: Claims Registration Period Ends August 17
-------------------------------------------------------------
Creditors of MarBar Gastronomie Eventmarketing und
Beratungsgesellschaft mbH have until Aug. 17, 2008, to register
their claims with court-appointed insolvency manager Christina
Combecher.

Creditors and other interested parties are encouraged to attend
the meeting at 11:45 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 Marburg/Lahn
         Hall 157
         Universitatsstrasse 48
         35037 Marburg/Lahn
         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:

         Christina Combecher
         Jahnstrasse 18
         35066 Frankenberg
         Germany
         Tel: 06451/71919-22
         Fax: 06451/7191921

The District Court of Marburg/Lahn opened bankruptcy proceedings
against MarBar Gastronomie Eventmarketing und
Beratungsgesellschaft mbH on July 4, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         MarBar Gastronomie Eventmarketing und
         Beratungsgesellschaft mbH
         Elisabethstrasse 14
         35037 Marbur
         Germany


NKG GRUNDSTUECKS: Creditors' Meeting Slated for August 18
---------------------------------------------------------
The court-appointed insolvency manager for NKG Grundstuecks GmbH
& Co. Morusstrasse 30 KG, Dr. Joachim Heitsch will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 11:55 a.m. on Aug. 18, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 11:30 a.m. on Dec. 8, 2008, at the same
venue.

Creditors have until Oct. 9, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Dr. Joachim Heitsch
         Berliner Str. 117
         10713 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy
proceedings against NKG Grundstuecks GmbH & Co. Morusstrasse 30
KG on July 10, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         NKG Grundstuecks GmbH & Co. Morusstrasse 30 KG
         Uhlandstrasse 7-8
         10623 Berlin
         Germany


PROSIEBENSAT.1 MEDIA: Q2 2008 Group EBITDA Up 28% to EUR203.7MM
---------------------------------------------------------------
ProSiebenSat.1 Media AG released its consolidated interim
financial statements for second quarter 2008.

The ProSiebenSat.1 Group's consolidated revenues for second
quarter 2008 were up EUR250.3 million, or 45.4 percent, to
EUR801.9 million.  Recurring EBITDA, at EUR203.7 million,
outperformed the prior-year figure by 28.0 percent (Q2 2007:
EUR159.1 million).

Reduced revenues in German TV were compensated by the
consolidation of the SBS Broadcasting Group from July 2007.
Based on pro forma figures for the combined Group, Group
revenues were down 4.0 percent, to EUR801.9 million (Q2 2007 pro
forma: EUR835.6 million).  Recurring EBITDA decreased 16.6
percent to EUR203.7 million (Q2 2007 pro forma: EUR 244.3
million).  As disclosed in April, the Group's business
performance was adversely affected in the second quarter by a
lack of acceptance of the new German ad sales model.  This led
to a loss of revenues in Germany.  The European Soccer
Championship also reduced ad bookings in the second quarter
across the ProSiebenSat.1 footprint.

"The first half of the year was not an easy time for the
ProSiebenSat.1 Group," Guillaume de Posch, CEO of ProSiebenSat.1
Media AG commented.  The reasons are clear: part of the market
did not accept the German ad sales model.  With the model as
revised in May, we are confident we will begin to regain market
share in the second half.  Strategically, we are on track
following last years takeover of the SBS Broadcasting Group.  We
are systematically investing in our core business free TV across
Europe, and developing and purchasing attractive content.  We
have not only diversified our revenue sources geographically, we
are also using all electronic distribution channels.  Here our
portfolio is constantly expanding.  Building up a fully digital
technological platform is a further important step in making
ProSiebenSat.1 Europes leading TV group."

Business performance in Q2 2008:SBS consolidated since July 2007

The ProSiebenSat.1 Group's consolidated revenues rose by 45.4
percent in Q2 2008, to EUR801.9 million.  The first
consolidation of SBS, with a contribution of EUR293.0 million,
contributed a significant part of the total revenue increase of
EUR250.3 million.  Recurring EBITDA was EUR203.7 million,
outperforming the previous years figure by EUR44.6 million, or
28.0 percent.  The first consolidation of SBS contributed
EUR76.5 million to earnings. EBITDA increased by 19.2 percent,
to EUR189.3 million (Q2 2007: EUR158.8 million).

         Earnings in Q2 2008:Pro forma figures for 2007

Based on a pro forma calculation for the second quarter,
recurring EBITDA was down 16.6 percent to EUR203.7 million (Q2
2007 pro forma: EUR244.3 million).  EBITDA, at EUR189.3 million,
was 17.7 percent below the previous years equivalent (Q2 2007
pro forma: EUR229.9 million).  Lower revenues reduced the
consolidated operating profit.  Higher costs also affected the
figure.  Total costs rose by EUR15.7 million overall, to reach
EUR657.2 million.  This figure includes non-recurring costs of
EUR 18.8 million (Q2 2007 pro forma: EUR15.5 million) that
mainly arose in the second quarter because of reorganization
measures and portfolio adjustments.

               Segment performance in Q2 2008

Free TV in German-Speaking Europe segment: External revenues
decreased by EUR 43.5 million, or 8.8 percent, to EUR 452.3
million.  As anticipated, difficulties in the German TV business
had an impact on profits for the quarter.  In Austria, the
ProSiebenSat.1 Group saw TV advertising revenues grow. In
Switzerland, despite negative effects on Group TV advertising
revenues due to Euro 2008, the figure held steady at last years
level.  Part of the decline in revenues in the German market was
compensated by savings on operating costs. Recurring EBITDA was
down 22.3 percent, to EUR115.8 million (Q2 2007: EUR 149.1
million).  Despite the European Soccer Championship, the German
stations maintained a high audience share of 29.0 percent (Q2
2007: 29.5 percent).

Free TV International segment: Based on a pro forma calculation,
external revenues in the international free TV business rose by
2.8 percent, to EUR214.7 million (Q2 2007 pro forma: EUR 208.9
million).  Most of the increase came from higher advertising
revenues.  Additionally, higher distribution proceeds and the
new stations launched last year also sped up revenue growth. But
an increase in operating costs caused recurring EBITDA to
decline 11.4 percent to EUR54.4 million (Q2 2007 pro forma: EUR
61.4 million). Particular factors were higher programming costs
and startup costs for new stations.  EBITDA, at EUR53.6 million,
was up 16.8 percent from the previous years figure (Q2 2007 pro
forma: EUR45.9 million).  The prior-year figure includes one-
time expenses from the integration of ProSiebenSat.1 and SBS.
Diversification segment: Based on a pro forma comparison,
external revenues rose by EUR4.0 million, or 3.1 percent, to
EUR134.9 million.  Recurring EBITDA was down EUR1.1 million, to
EUR32.5 million (3.3 percent).  EBITDA decreased EUR0.3 million,
to EUR35.7 million (0.8 percent).  The decline in profits was
caused in part by lower call TV revenues from 9Live in Germany.

                     Outlook for 2008

ProSiebenSat.1 continues to target a recurring EBITDA for 2008
at a similar level to the reported pro forma figures for 2007,
despite difficulties in the German market.  Efficiency
enhancements and synergies from the integration of SBS and
ProSiebenSat.1 will contribute here.

"Any long-term forecast for the TV advertising market must be
tentative," Mr. de Posch said.  "We would like to emphasize that
our profit target depends on trading conditions which are more
than usually uncertain.  This is partly due to low visibility in
the advertising market, and partly to the overall economic
development of the countries in which we operate.  Nevertheless,
the Group on the right track in terms of both operations and
strategy.  We have taken decisive action to streamline our
portfolio and improve our competitiveness in the German market.
Through Group-wide efficiency enhancement programs, we plan to
save EUR 70 million on costs this year against the originally
budgeted figures.  We expect to realize our efficiency targets
in the second half, and generate significant savings, without
jeopardizing our long-term growth objectives."

The Group is aiming to reduce its financial debt both out of
growing profits and out of the proceeds from divestments.
Subject to approval by the antitrust authorities, the sale of C
More, at an enterprise value of about EUR320 million, is
expected to close in the second half of the year.

                      About ProsiebenSat.1

Headquartered in Munich, Germany, ProsiebenSat.1 Media AG --
http://en.prosiebensat1.com/-- broadcasts and produces
TV programs through 24 commercial TV stations, 24 premium Pay TV
channels and 22 radio network.  In June 2007, the ProSiebenSat.1
Group acquired SBS Broadcasting Group.  The company employs
around 6,000 Europe-wide.

                          *     *     *

ProsiebenSat.1 Media AG continues to carry Moody's Investors
Service's Ba1 senior unsecured and corporate family ratings.


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


PFIZER CORK: To Close Business After Failed Asset Sale
------------------------------------------------------
Pfizer Cork Limited will be shut down after its U.S.-based
parent, Pfizer Inc., failed to find a buyer for the business,
Quentin Fottrell writes for The Wall Street Journal.

According to the report, the company's management has decided to
close the plant by the end of 2009 when it failed to sell the
site as a going concern for the last 18 months.

Around 180 employees are expected to be affected by the closure.

Located at Inchera, Little Island, in Cork, Ireland, Pfizer Cork
Limited – http://www.pnu.com/-- is a pharmaceutical company.


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


EUROHOME MORTGAGES: Fitch Puts Class X Loan Rating on Watch Neg.
----------------------------------------------------------------
Fitch Ratings has placed Eurohome Mortgages 2007-1 plc, a pan-
European RMBS transaction originated by Deutsche Bank AG and
Deutsche Bank Mutui S.p.A., on Rating Watch Negative.  This
reflects Fitch's concerns surrounding the extent of the levels
of arrears and defaults seen in the Italian portfolio, as well
as the portion of terminated loans in the German pool.  The
rating actions are:

  -- Class A (ISIN XS0309227279) 'AAA' on RWN

  -- Class B (ISIN XS0309230497) 'AA' on RWN

  -- Class C (ISIN XS0309232196) 'A' on RWN

  -- Class D (ISIN XS0309232600) 'BBB' on RWN

  -- Class E (ISIN XS0309233244) 'BBB' on RWN

  -- Class X (ISIN XS0309234309) 'BB+' on RWN

  -- German Mortgage Early Repayment Certificates
     (ISIN XS0309236007) affirmed at 'AAA'; Outlook Stable

  -- Italian Mortgage Early Repayment Certificates
     (ISIN XS0309788031) affirmed at 'AAA'; Outlook Stable

Fitch has requested from Deutsche Bank a full loan-by-loan
breakdown of the two pools of mortgages to conduct a full
analysis.  The agency expects to resolve the RWN within the next
three months.  Further information will also be requested from
Deutsche Bank to help facilitate this analysis.

Investor reports for August 2008 show that there has been a draw
on the reserve fund to the amount of EUR813,177.  The draw was
due to the provisioning for defaulted loans in the Italian part
of the pool, which for the last quarter were in the amount of
EUR1.2 million, bringing the cumulative balance of defaulted
loans to 0.75% of the Italian pool, i.e. 0.49% of the total
pool.

Loans in arrears by more than three months in the Italian pool
have been increasing since close and as of June 2008, they stood
at 6.02% of the Italian portfolio outstanding.

In the German portfolio, reported terminated loans represent
7.56% of the current portfolio outstanding, while loans with one
or more missed payments make up 8.29% of the German portfolio
outstanding.

To date, neither of the two pools has reported any losses.


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


DARHAN JSC: Creditors Must File Claims by September 24
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared JSC Darhan insolvent.

Creditors have until Sept. 24, 2008, to submit written proofs of
claims to:

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


ENERGO COMPLECT: Claims Deadline Slated for September 23
--------------------------------------------------------
LLP Energo Complect Akb has declared insolvency.  Creditors have
until Sept. 23, 2008, to submit written proofs of claims to:

         LLP Energo Complect Akb
         Micro District Aksai-3b, 11-8
         Almaty
         Kazakhstan


IDEAL PLUS: Claims Filing Period Ends September 19
--------------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan has declared LLP Ideal Plus Ltd. insolvent.

Creditors have until Sept. 19, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan
         Tel: 8 (7252) 53-48-34
              8 (7252) 54-02-36


INTERNATIONAL BUSINESS: Creditors' Claims Due on September 23
-------------------------------------------------------------
LLP International Business Club has declared insolvency.
Creditors have until Sept. 23, 2008, to submit written proofs of
claims to:

         LLP International Business Club
         Manas Str. 4/2
         Almaty
         Astana
         Kazakhstan


LTD OIL: Claims Registration Ends September 19
----------------------------------------------
The Specialized Inter-Regional Economic Court of South
Kazakhstan has declared LLP LTD Oil Group insolvent.

Creditors have until Sept. 19, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan
         Tel: 8 (7252) 53-48-34
              8 (7252) 54-02-36


MEHOS LLP: Creditors Must File Claims by September 19
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau has
declared LLP Mehos insolvent on June 27, 2008.

Creditors have until Sept. 19, 2008, to submit written proofs of
claims.  For more information, please contact:

         Tel: 8 (7292) 26-35-14
              8 (7292) 41-58-26
              8 701 537 15-59


VESTA ELECTRIC: Claims Deadline Slated for September 19
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Vesta Electric Ltd. insolvent on June 20, 2008.

Creditors have until Sept. 19, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan
         Moldagulova Str. 9-18
         Uralsk
         West Kazakhstan
         Kazakhstan
         Tel: 8 (7112) 51-77-10


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


RUK-ENERGY+K LLC: Creditors Must File Claims by September 12
------------------------------------------------------------
LLC Ruk-Energy+K has declared insolvency.  Creditors have until
Sept. 12, 2008, to submit written proofs of claim to:

         LLC Ruk-Energy+K
         Ahunbaev Str. 119
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 51-16-89


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


ORCO PROPERTY: Moody's Lowers Corporate Family Rating to Caa1
-------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Orco Property Group S.A. to Caa1 from B3 and the national
scale rating to Ba2.cz from Ba1.cz.  The outlook for all ratings
is negative.  The downgrade reflects the further weakening of
the company's financial fundamentals in the first quarter of
2008, together with signs that the some of the property markets
in Eastern Europe in which Orco is active have either stagnated
or started to decline.  The Probability of Default Rating was
lowered to Caa2 from B3, reflecting Moody's assumption of an
above average recovery rate (LGD3 - 35%) for this asset-rich
company.  This rating actions conclude the rating review
initiated on June 17, 2008.

When Orco's rating was initially assigned in October 2006, the
corporate family rating took into account Moody's expectation
that Orco would begin to generate recurring operating profits
(excluding surpluses arising from the re-valuation of investment
properties); it has yet to do so.  Further pressure on the
rating arose from increasing losses from operations in the first
quarter of 2008 together with continued negative funds from
operations and high leverage (debt to recurring EBITDA).
Furthermore, residential sales volumes and commercial property
values are showing signs of easing in some of the markets in
which Orco operates.

The negative outlook reflects Orco's heightened business risk
profile resulting from its exposure to speculative commercial
property developments and homebuilding that could lead to
liquidity problems as some of the real estate markets in which
it operates in Eastern and Central Europe begin to slow.  As
inflation levels are rising in Eastern Europe, hikes in interest
rates are expected, which may then have a negative impact on the
demand for both residential and commercial property and a
slowdown in lettings and sales of newly completed developments.

The rating outlook could be stabilized by the reduction of
leverage or an improvement in recurring income to the point
where interest and working capital are covered by the company's
cash-flow generation, translating into positive funds from
operations and interest cover (EBITA/ gross interest expense)
being sustained above 1.0x

Moody's adds that downward pressure could be exerted on the
ratings should Orco continue with a business model that leaves
the company with

     (i) negative funds from operations (i.e. excluding any fair
         value gains or losses),
    (ii) an inability to improve interest coverage towards 1.0x,

   (iii) a continuing high level of debt to EBITDA, or

    (iv) an inadequate liquidity profile.

Moody's previous rating action on Orco Property Group was on
June 17, 2008, when the agency downgraded the corporate family
rating to B3, the national scale rating to Ba1.cz and maintained
the ratings on review for possible further downgrade.

Headquartered in Luxembourg, Orco Property Group S.A. is a
diversified residential and commercial property developer and
investment manager in Central and Eastern Europe and ranks as
the third-largest residential developer in Prague, Czech
Republic.  The group had total assets of EUR2.9 billion at 31
March 2008.


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


* Romanian Banking Industry Facing Increased Risks, S&P Reports
---------------------------------------------------------------
In a published report titled, "Bank Industry Risk Analysis:
Romanian Banks Advancing On FDIs, Economic Growth, Facing
Increased Risks" Standard & Poor's Ratings Services says that
several years of healthy economic growth and accumulating wealth
in the economy, and massive foreign investments in the banking
sector have created a solid funding base for credit acceleration
in the Romanian banking sector.

"Standard & Poor's has revised Romania's bank industry to Group
7 from Group 8, reflecting stronger banking penetration and
services coverage, and advancing banking technologies.  These
were to a large extent led by the import of Western banking
technologies, EU convergence requirements, and the start-up
of the adoption of Basel II principles," said S&P's credit
analyst Elena Romanova.

The strengthened regulatory framework from the National Bank of
Romania (foreign currency, BBB-/Negative/A-3; local currency,
BBB/Negative/A-3) has, in S&P's view, provided a better
mechanism for managing potential systemic problems, should they
occur.  Moreover, EU accession in January 2007 provides a strong
anchor for the enhancement of banking regulations.

Despite these improvements, however, the banking industry
country risk in Romania is still higher than that of its peers
(Bulgaria, Croatia, Hungary, Lithuania, and Poland).  This is
due to accumulating economic imbalances, negative spillovers
from global financial market tensions, deteriorating operating
flexibility due to the increasing scarcity of deposits and
capital, high reliance on funding from parental foreign banks,
balance sheet currency mismatches, and the country's still-weak
(although progressing) legal and supervisory framework.


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


ARKAIM LLC: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------
The Arbitration Court of Chelyabinsk commenced bankruptcy
supervision procedure against LLC Arkaim (TIN 7425745443) and
appointed E. Bogdanov as interim receiver.  The case is docketed
under Case No. A76-27459/2008- 36-332.

Creditors have to submit proofs of claim to:

         E. Bogdanov, Interim Receiver
         Chkalova Str. 21
         390029 Ryazan
         Russia

The Court is located at:

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

The Debtor can be reached at:

         LLC Arkaim
         Yubileynyj Per. 22
         Kizilskoe
         Chelyabinsk
         Russia


BAYKAL-TEKH-CENTRE: Names A. Efremova as Administrative Receiver
----------------------------------------------------------------
The first creditors meeting of CJSC Baykal-Tekh-Centre has
resolved to place the company under financial rehabilitation
and appointed A. Efremova as administrative receiver.

The Arbitration Court of Buryatiya  has sanctioned the
creditors' resolution.  The case is docketed under Case
No. A10-4689/07.

Creditors have to submit proofs of claim to:

         A. Efremova, Administrative Receiver
         Apt. 62
         Gagarina Str. 77A
         Ulan-Ude
         670024 Buryatiya
         Russia

The Debtor can be reached at:

         CJSC Baykal-Tekh-Centre
         Rabochaya Str. 37
         Severobaykalskiy
         Severobaykalsk
         671701 Buryatiya
         Russia


BIORANTA CJSC: Names N. Prilepin as Administrative Receiver
-----------------------------------------------------------
The first creditors meeting of CJSC Bioranta has resolved to
place the company under financial rehabilitation
and appointed N. Prilepin as administrative receiver.

The Arbitration Court of Moscow has sanctioned the creditors'
resolution.  The case is docketed under Case No. A40-63976/
07-101-127B.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Bioranta
         Michurinskiy Pr. 36
         117192 Moscow
         Russia


OCEAN CJSC: Proofs of Claim Filing Deadline Set September 5
-----------------------------------------------------------
The first creditors meeting of CJSC Ocean has resolved to place
the company under financial rehabilitation and appointed N.
Egorova as administrative receiver.

The Arbitration Court of Orenburg has sanctioned the creditors'
resolution.  The case is docketed under Case No. A47-951/
2008-14GK.

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

         N. Egorova, Administrative Receiver
         Tel/Fax: (3532) 78-38-44
         Gaya Str. 23a
         460000 Orenburg
         Russia

The Court is located at:

         The Arbitration Court of Orenburg
         9th January Str. 64
         460046 Orenburg
         Russia

The Debtor can be reached at:

         CJSC Ocean
         Office 304
         Tomilinskaya Str. 237
         460005 Orenburg
         Russia


OFFSET PAPERS: Court Starts Bankruptcy Supervision Procedure
------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad commenced
bankruptcy supervision procedure against CJSC Kamennogorskaya
Factory of Offset Papers and appointed K. Dudoladov as interim
receiver.  The case is docketed under Case No. A56-12745/2008.

Creditors have to submit proofs of claim to:

         K. Dudoladov, Interim Receiver
         Office 2
         Building 2
         Lomonosova Pr. 92
         163000 Arkhangelsk
         Russia

The Court is located at:

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

The Debtor can be reached at:

         CJSC Kamennogorskaya Factory of Offset Papers
         Leningradskoe Shosse 54
         Kamennogorsk
         Vyborgskiy
         188950 Leningrad
         Russia


PBB LPN: Fitch Assigns 'B-' Long-Term Note Rating
-------------------------------------------------
Fitch Ratings has assigned PBB LPN Issuance Limited's upcoming
notes issue an expected Recovery Rating of 'RR4' and expected
Long-term rating of 'B-'.  The final ratings of the issue are
contingent upon the receipt of final documentation conforming
materially to information already received.

The proceeds from the issue will be used to finance a loan to
Russia's Probusinessbank, rated Long-term Issuer Default 'B-'
with Positive Outlook, Short-term IDR 'B', Individual 'D',
Support '5' and National Long-term 'BB+(rus)' with Positive
Outlook.

The notes are to be issued under the loan participation program
established in July 2005 and rated Long-term 'B-' for issues
with initial maturities of more than one year and Short-term 'B'
for issues with initial maturities of up to one year.  The
program limit was increased to US$750 million in March 2007,
following a rise to US$200 million in November 2006 from the
original limit of US$100 million.  There have been no other
significant changes to terms and conditions of issues under the
program.

The issuer's claims under the loan agreement will rank at least
equally with the claims of other senior unsecured creditors of
PBB, save those whose claims are preferred by any bankruptcy,
insolvency, liquidation or similar laws of general application.
Under Russian law, the claims of retail depositors rank above
those of other senior unsecured creditors.  At end-2007, retail
depositors accounted for 31% of PBB's total liabilities,
according to the bank's IFRS accounts.

PBB is a medium-sized Russian bank, with consolidated assets of
RUB57 billion at end-2007.  The bank is owned by senior
management and small number of private equity funds, with 65.5%
and 34.5% stakes, respectively.  It activities are concentrated
on SME and retail lending.


STROY-TORG-SERVICE: Court Starts Bankruptcy Supervision Process
---------------------------------------------------------------
The Arbitration Court of Krasnodar commenced bankruptcy
supervision procedure against CJSC Stroy-Torg-Service and
appointed S. Bystrova as interim receiver.  The case is docketed
under Case No. A32-3152/2008-38/69-B.


Creditors have to submit proofs of claim to:

         S. Bystrova, Interim Receiver
         Post User Box 5327
         350003 Krasnodar-3
         Russia

The Court is located at:

         The Arbitration Court of Krasnodar
         Krasnaya Str. 6
         Krasnodar
         Russia

The Debtor can be reached at:

         S. Bystrova, Interim Receiver
         Post User Box 5327
         350003 Krasnodar-3
         Russia


TEPLO-ENERGO-SERVICE: Court Sets Supervision Hearing November 19
----------------------------------------------------------------
The Arbitration Court of Kareliya commenced bankruptcy
supervision procedure against LLC Company Teplo-Energo-
Service and appointed N. Raykov as interim receiver.  The case
is docketed under Case No. A26-2700/2008.


Creditors have to submit proofs of claim to:

         N. Raykov, Interim Receiver
         Lenina Pr. 22-A
         Petrozavodsk
         Kareliya
         Russia

The Court will convene at 10:00 a.m. on Nov. 19, 2008, to hear
the case.

The Debtor can be reached at:

         LLC Company Teplo-Energo-Service
         Sulazhgorskiy Kirpichnyj 1A
         Petrozavodsk
         Kareliya
         Russia


SEVERSTAL OAO: Completes US$775 Million Esmark Inc. Acquisition
---------------------------------------------------------------
OAO Severstal has completed its acquisition of Esmark
Incorporated, a manufacturer and distributor of flat rolled and
other steel products.

The acquisition was completed pursuant to the merger of
Severstal Wheeling Acquisition Corp., a wholly owned subsidiary
of Severstal, with and into Esmark.  Esmark, as the surviving
corporation in the merger, is now a wholly-owned subsidiary of
Severstal and has been renamed "Severstal Wheeling Holding
Company."

The offering period for Severstal's tender offer for all
outstanding shares of Esmark expired at 10:00 a.m., Eastern
Daylight Time, on Monday, Aug. 4, 2008, with a total of
38,767,487 Esmark shares being validly tendered in the offer and
not withdrawn, representing approximately 94.17% of the
outstanding shares of common stock of Esmark.  All shares that
were validly tendered during the tender offer have been accepted
for purchase, and Severstal paid for all validly tendered and
delivered shares on Aug. 4, 2008.

Following the expiration of the period, on Aug. 4, 2008,
Severstal effected a merger to complete the acquisition of
Esmark without a vote or meeting of Esmark stockholders pursuant
to the short-form merger procedure available under Delaware law.

In the merger, each outstanding Esmark share not tendered and
purchased in the offer (other than shares in respect of which
appraisal rights are validly exercised under Delaware law) were
converted into the right to receive the same US$19.25 per share
price, without interest and less any required withholding taxes,
that was paid in the tender offer.  As a result of the merger,
Esmark's common stock will cease to be traded on the NASDAQ
Global Select Market.

The acquisition has a total equity value of US$775 million and
is expected to be accretive in 2009 based on current projections
of costs and prices.

With the completion of the tender offer and consummation of the
merger, Severstal acquired all of Esmark’s businesses,
including:

    * Wheeling-Pittsburgh Steel Corporation (to be renamed
      "Severstal Wheeling, Inc.")

    * Esmark Steel Services Group, Inc. (to be renamed "Northern
      Steel Group, Inc.")

    * Remaining 50% ownership of the joint venture Mountain
      State Carbon, a blast furnace coking coal production
      facility in West Virginia

Gregory Mason, CEO of Severstal International and COO of OAO
Severstal, commented, "The acquisition of Esmark represents a
significant step in Severstal's North American growth strategy.
Not only does the addition of Esmark bring considerable stand-
alone growth potential while also creating synergies with our
existing US plants, it solidifies Severstal's position as one of
the leading integrated steel companies in the fast consolidating
North American market.  We are now poised to be a leading
producer and supplier of domestically produced steel to a region
that has a consistent demand for high quality products."

Merrill Lynch acted as lead financial advisor, Citi acted as
financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP
acted as legal counsel, to Severstal.  MacKenzie Partners, Inc.
served as Information Agent for the tender offer.

                        About Severstal

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

                        *     *     *

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

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

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


SEVERSTAL OAO: Metiz Unit Acquires Redaelli Tecna SpA
-----------------------------------------------------
Severstal-metiz, a unit of OAO Severstal, has acquired 100% of
the shares of the Italian company Redaelli Tecna S.P.A.,
considered to be the World market leader in the design and
production of speciality wire ropes

As result of this transaction the Wire Ropes division of
Redaelli Tecna becomes a part of Severstal-metiz.  This division
includes Cordati (wire ropes production site located in
Gardone), Tensoteci (a technical engineering business) and Teci
(a distribution chain in Italy).

The other two divisions -- Tecnasud (a PC strands production
site) and Sodetal (a steel cord producer) -- were split off and
acquired by other buyers beforehand and will operate under their
own brands, not associated with Redaelli.

The purchase of the Redaelli wire rope business will allow
Severstal-metiz to extend its product portfolio through the
inclusion of speciality wire ropes of complex construction
produced by the Italian company and the development of wire rope
service and engineering using Redaelli’s expertise.  It will
also offer Severstal-metiz new opportunities for effective
Worldwide distribution.

At present Redaelli will continue its business activity in line
with current plans and an integration team involving personnel
from both Severstal-metiz and Redaelli will develop future plans
in order to capture the synergies between the two companies.

Olga Naumova, CEO of Severstal-metiz, said: "Redaelli perfectly
complements the Severstal-metiz rope division -– a key element
of our strategy to develop niche markets.  Redaelli is renowned
for the quality of its high-tech products and projects and we
intend to take advantage of this brand and supplement it with
our own knowledge, experience and qualifications."

                        About Severstal

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

                        *     *     *

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

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

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


TNK-BP INT'L: S&P Chips Long-Term Credit & Sr. Debt Rating to BB
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit and senior unsecured debt ratings on TNK-BP
International Ltd. to 'BB' from 'BB+', reflecting S&P's concerns
over the group's protracted shareholder dispute.

At the same time, S&P affirmed its 'B' short-term corporate
credit rating on the group.  The outlook is negative.

The '3' recovery ratings on the group's unsecured debt issues
remains unchanged.  A '3' recovery rating indicates S&P's
expectation of meaningful (50%-70%) recovery for debt holders in
the event of a payment default.

TNK-BP's total financial debt at end-June 2008 amounted to
US$8.1 billion.

The downgrade reflects S&P's significant concerns over the major
governance issues at TNK-BP in light of the stalemate between
50/50 partners BP PLC (AA+/Negative/A-1+) and AlfaAccessRenova
(AAR; not rated), notwithstanding TNK-BP's robust cash flow
generation forecast for 2008, and adequate liquidity at end-June
2008.

"The downgrade also reflects the increased unpredictability of
TNK-BP's strategic direction and financial policies, heightened
risk of future control issues and of adverse legal and
regulatory actions -- including possible litigation by
minorities -- in the context of Russia's weak legal
institutional environment, the likely negative impact on TNK-
BP's operations of the departure of 148 technical staff and
several senior managers, and the risk of delays to new strategic
investments," said S&P's credit analyst Karl Nietvelt.

The current dispute is likely to reduce production in 2009,
bearing in mind TNK-BP's highly mature production assets and the
need to apply technology to sustain output.  Even if
shareholders manage to agree on a new management team in the
short term, the stability of the current shareholder structure
is likely to remain an issue.

"The negative outlook is based on our concerns over the
company's strategic and financial direction, given the
protracted shareholder dispute," said Mr. Nietvelt.

Even if shareholders were to agree on a new management team and
board structure in the short term, uncertainty is likely to
remain as long as the two shareholders diverge.

In support of the current rating is the strong financial
performance bolstered by record oil prices and Russian refining
margins.  Liquidity should also remain adequate to cover
maturing debt, assuming manageable dividend payouts.

A downgrade could be triggered by further unforeseen risks, such
as lack of control issues, increased litigation, or country-
related risk factors.  In case of a stabilized ownership
structure and a return to clearly agreed strategic and financial
policies, S&P would reevaluate TNK-BP's credit quality and
potential rating upside.


ULYANOVSKIY MECHANICAL: Court Sets Supervision Hearing Sept. 4
--------------------------------------------------------------
The Arbitration Court of Ulyanovsk commenced bankruptcy
supervision procedure against LLC Building Complex Ulyanovskiy
Mechanical Factory and appointed A. Avilov as interim receiver.
The case is docketed under Case No. A72-2219/08-26/21-B.

Creditors have to submit proofs of claim to:

         A. Avilov, Interim Receiver
         Office 313
         Suvorova Str. 111a
         440000 Penza
         Russia

The Court will convene at 9:30 a.m. on Sept. 4, 2008, to hear
the case at:

         The Arbitration Court of Ulyanovsk
         Zheleznodorozhnaya Str. 14
         432063 Ulyanovsk
         Russia

The Debtor can be reached at:

         LLC Building Complex Ulyanovskiy Mechanical Factory
         Moskovskoe Shosse 94
         432026 Ulyanovsk
         Russia


* S&P Revises Russian Banking Industry's Country Risk Assessment
----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its Banking
Industry Country Risk Assessment (BICRA) on The Russian
Federation to Group 7 from Group 8.  ("Banking Industry Country
Risk Assessment On Russia Revised To Group 7 From Group 8,"
published on RatingsDirect.)  At the same time, S&P changed its
assessment of the Russian government's propensity to provide
support to private sector banks to "supportive" from "support
uncertain."  S&P also affirmed its estimate of the incidence of
gross problematic assets in the Russian financial system under a
reasonable scenario of economic recession at 35%-50%.

"These actions reflect Russia's increased political and
regulatory commitment to ensure the stability of the banking
sector," said S&P's credit analyst Ekaterina Trofimova, "as
highlighted by the Central Bank of Russia's effective management
of liquidity pressures related to the global credit crunch since
summer 2007."

"Certain structural factors also have contributed to an
improvement in the banking sector's risk profile, including
greater customer and business line diversification, lengthening
track record of good performance, better overall management, and
decreasing dependence on opportunistic gains and capital markets
income," added Ms. Trofimova.

The improving creditworthiness of the Russian Federation
(foreign currency BBB+/Positive/A-2; local currency A-
/Positive/A-2) greatly reduces the potential of a repeat of
the catastrophic sovereign local currency default of 1998.
Banks also benefit from the better creditworthiness of Russian
industrial companies, including in non-resource-based sectors;
ample domestic liquidity (boosted by high energy revenues);
stronger private consumption; and greater accumulated wealth in
the country.

Russia's BICRA and gross problematic assets range remain higher
than those of certain comparable markets.  This is due to two
broad factors: (1) institutional weakness and (2) aggressive
credit expansion financed by foreign borrowings.  Weaknesses in
the legal and supervisory framework in Russia create risks for
banks.  There remains a lack of transparency of bank and
corporate ownership, and opposition from parties with vested
interests constrains progress in bank reform.  High single-party
concentrations in loans and deposits remain.

"Credit has expanded at a breakneck pace for several years,
increasing the potential for a disorderly period of readjustment
if Russia's economic expansion slows considerably or becomes
negative," said Ms. Trofimova.

The fact that Russian banks have financed a material part of the
growth with foreign borrowings creates additional liquidity and
currency risks for the sector.

The BICRA reflects the strengths and weaknesses of a country's
banking system relative to those in other countries.  BICRAs
classify countries into 10 groups ranging from the strongest
banking systems (Group 1) to the weakest (Group 10) from the
perspective of country risk.


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


MARTINSA-FADESA: Appointed Administrators Resume Work
-----------------------------------------------------
Three administrators have been appointed to manage the finances
and operations of Martinsa-Fadesa S.A., Reuters reports.

According to Reuters, the Mercantile Court of La Coruna has
named Antonia Magdaleno; the Comision Nacional del Mercado de
Valores named Angel Martin Torres of KPMG; and creditor-bank
Bankinter S.A. named Antonio Moreno Rodriguez as administrators.

Martinsa-Fadesa said the administrators have met and will
convene again to discuss the supervision of the company.

Martinsa-Fadesa filed for opening of administration procedures
at the Mercantile Court of La Coruna after it failed to a secure
a EUR150 million loan -- a requirement for its EUR4 billion debt
refinancing agreement with creditor banks.

The company had sought a waiver for the loan, TCR-Europe
reported on July 16, 2008.

Martinsa said it had insufficient cash-flow to meet interest
payments and pay suppliers.  The company owes more than EUR5
billion to creditors.  The property group attributed its
financial troubles to "clear recession that the Spanish economy
is suffering at the moment."

Martinsa is holding talks with union over 200 job cuts.  The
company employs around 880 people.

Headquartered in Corunna, Spain, Martinsa-Fadesa SA --
http://www.martinsafadesa.com/-- develops residential and
commercial property projects, including hotels, shopping centers
and golf courses, as well as industrial projects, among others.
The company also operates in Portugal, Romania, Hungary,
Ireland, France, Bulgaria, Mexico, the Dominican Republic, the
Czech Republic, Slovakia, and Poland.


* Fitch: Mortgage Interest Payment Shock to Affect Spanish RMBS
---------------------------------------------------------------
Fitch Ratings says mortgage interest payment shock stemming from
rising unemployment and interest rate re-sets will continue to
weigh on Spanish RMBS performance and contribute to an increase
in negative rating actions in H208.

Transactions that face the greatest risk of performance
deterioration are recent vintages with loans originated at
historically low rates.  These also comprise a high percentage
of first-time homebuyer loans which, due to affordability
constraints, carry higher leverage, including higher loan-to-
value ratios, weaker debt-to-income coverage, and other product
flexibility features.

"Many of the performance catalysts, such as strong domestic
economic growth, steadily rising home prices, relatively low
interest rates, and abundant liquidity from the financial sector
- which drove the exceptional Spanish RMBS performance between
1997 and end-2007 -ended in H108," says Rui J Pereira, Managing
Director and Head of the Structured Finance team in Madrid.

Over 95% of the Spanish mortgage market consists of variable-
rate loans that re-set on an annual or semi-annual basis to an
interest rate over 12-month Euribor or the reference index for
mortgage loans.  Given these mortgage products generally do not
have any limitations on the 'step-up' in rate or increase on
monthly mortgage payment, Spanish mortgage borrowers are
significantly exposed to 'payment shock' or the risk that they
will face higher payments once their mortgage loan re-sets.
Also, up until recently, few lenders stressed borrower payment
capacity by incorporating an interest rate stress as part of
their underwriting process, which means few lenders assessed the
degree of cushion borrowers have to affordability shocks.

As a result of the ECB's hawkish monetary policy stance, as well
as continued credit market volatility, mortgage reference
interest rates have climbed significantly in recent years and
have thus placed additional pressure on Spanish consumer
finances.  Borrowers who took up variable-rate mortgage loans
three years ago at historically low rates have seen monthly
mortgage payments increase in excess of 40% in the year to date.
According to recent operational reviews, this has been a key
factor in the deterioration of Spanish RMBS performance in
recent quarters, particularly for those loans originated in
recent years when rates were at historical lows.

Although the new Spanish mortgage law released in December 2007
contains provision to encourage lenders to offer fixed-rate
mortgages, Fitch does not expect a meaningful shift in product
mix to take place.  This is because variable-rate mortgages with
current interest rates remain priced well below the fixed-rate
alternative, and affordability-constrained borrowers remain
focused on minimizing their monthly mortgage payments in the
short term.  As a result, given the long amortization profile of
mortgage products and continuing inflation concerns, Spanish
borrowers could face even higher interest rates and thus remain
exposed to further payment shock.  Nevertheless, a sharp
increase in interest rates could still cause borrowers to
examine the risk-reward dynamic of variable-rate mortgage
products.


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


GENERAL MOTORS: Overall Truck Sales Decline 41.5% in July 2008
--------------------------------------------------------------
General Motors Corp. reported Friday its July 2008 sales
results, highlighted by continued strong performance in small
and midsize cars and crossovers.  GM dealers in the United
States delivered 235,184 vehicles in July, down 26.7 percent.
Weak industry conditions caused by a challenging U.S. economic
environment, higher fuel prices and inventory shortages in
critical segments such as compact cars contributed to the
overall sales decline for the month.

"In July, we saw strong performance once again in our launch
products, including the Cadillac CTS, Chevrolet Malibu, Saturn
Astra, and Pontiac Vibe and G8.  In addition, we continued to
see strong retail demand for our fuel efficient Chevrolet Aveo
and HHR, Saturn Vue and Buick Enclave.  So, despite an overall
weak market, there are pockets of strength," said Mark LaNeve,
vice president, GM North America Vehicle Sales, Service and
Marketing.

"Obviously, the weakness in the truck market persisted in July,
yet we continue to hold share due to our fuel economy leadership
in many truck segments despite dramatic competitive incentive
spending increases."  Overall, GM truck sales in July declined
41.5 percent.

Chevrolet cars continued to show strength in the marketplace
with Malibu total sales up 79 Percent, Aveo up 17 percent and
Cobalt up 4 percent compared with last July.

Cadillac CTS dominated the mid-car luxury category with sales
increasing 38 percent compared with the same month a year ago.
Pontiac met consumers' needs for fuel efficient vehicles with a
performance edge with G5 sales up 17 percent, Vibe up 7 percent
and G6 up 6 percent compared with July 2007.

Saturn's award-winning Aura midsize car saw a sales increase of
24 percent with the two-seat Sky selling 14 percent more
vehicles than July last year.  Astra monthly sales of more than
1,500 vehicles were the best to date, and show a 75 percent
increase compared with June 2008 (Astra was not available last
July).  GM's popular midsized crossovers -- Buick Enclave, GMC
Acadia and Saturn Outlook -- together accounted for more than
11,600 vehicle sales in the month.

GM hybrid vehicles continue to gain in popularity in the
marketplace with 228 hybrid Chevrolet Tahoe and 123 GMC Yukon 2-
mode SUVs delivered.  There were 349 Chevrolet Malibu, 29 Saturn
Aura and 362 Vue hybrids sold in July.  For the month, a total
of 1,091 hybrid vehicles were delivered, with 5,467 hybrids sold
so far this year.

"We're working hard to change perceptions and gain awareness of
GM as the leader in advanced propulsion technology and fuel
efficiency," Mr. LaNeve added.  "Customers can experience that
each
time they visit a dealer's showroom to see the full lineup --
including five hybrid models -- that provide industry-leading
value, great fuel economy and the best warranty coverage of any
full-line automaker.  We don't just talk about technology, fuel
efficiency and value -- we have the cars and trucks available
today to back it up."

GM has aggressively managed inventories to low levels.  In July,
only about 747,000 vehicles were in stock -- a three-year low --
down about 201,000 vehicles (21 percent) compared with last
July.  There were about 236,000 cars and 511,000 trucks in
inventory at the end of July.

                    Certified Used Vehicles

July 2008 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,594
vehicles, down 2 percent from July 2007.  Year-to-date sales are
298,137 vehicles, down nearly 6 percent from the same period
last year.

GM Certified Used Vehicles, the industry's top-selling certified
brand, posted July sales of 35,799 vehicles, down 4 percent from
a strong July 2007 sales performance.  Cadillac Certified Pre-
Owned Vehicles sold 3,700 vehicles, up 22 percent.  Saturn
Certified Pre-Owned Vehicles sold 1,164 vehicles, down 24
percent.  Saab Certified Pre-Owned Vehicles sold 770 vehicles,
up 21 percent, and HUMMER Certified Pre-Owned Vehicles sold 161
vehicles, up 89 percent.

"Our luxury certified pre-owned programs -- Cadillac, Saab and
HUMMER Certified Pre-Owned Vehicles -- each posted strong sales
increases last month, and GM Certified Used Vehicles is again
setting the pace to lead the segment in sales this year," said
LaNeve.  "We're confident more shoppers will seek the quality
and value that manufacturer certification offers."

        GM North America Reports July 2008 Production

In July, GM North America produced 238,000 vehicles (116,000
cars and 122,000 trucks).  This is down 16,000 vehicles or
6 percent compared with July 2007 when the region produced
254,000 vehicles (91,000 cars and 163,000 trucks).  (Production
totals include joint venture production of 14,200 vehicles in
July 2008 and 13,000 vehicles in July 2007.)

The GM North America third-quarter production forecast is
unchanged from last month at 900,000 vehicles (456,000 cars and
444,000 trucks) which is down about 12 percent compared with a
year ago, due to production adjustments in response to market
changes that will reduce the number of trucks produced by about
209,000 and increase the number of cars by about 89,000.  GM
North America built 1.020 million vehicles (367,000 cars and
653,000 trucks) in the third-quarter of 2007.

                      About General Motors

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

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

                         *     *     *

As disclosed in the Troubled Company Reporter on Aug. 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirm the ratings on Chrysler and DCFS
and remove them from CreditWatch.

As reported in the Troubled Company Reporter on July 17, 2008,
Moody's Investors Service is reviewing the ratings of General
Motors Corporation for possible downgrade.  Ratings under review
include its B3 Corporate Family Rating, B3 Probability of
Default Rating, Ba3 rating for secured debt, and Caa1 rating for
senior unsecured debt.


GENERAL MOTORS: Says Delphi-Related Charges Reach US$11 Billion
-------------------------------------------------------------
General Motors Corp. said charges related to Delphi Corp. has
now reached approximately US$11,000,000,000.  In a presentation
furnished to securities analysts, GM said made a
US$2,753,000,000 adjustment to its Delphi reserve, "primarily
due to updated estimates related to Delphi's ongoing
reorganization."  The adjustment reflects higher expected
obligations (e.g. net pension liabilities) and additional
uncertainty around nature, value and timing of GM recoveries.
GM's one-time losses due to Delphi have totaled US$3,484,000,000
for the 1st half of 2008.

GM, which contributes to over 30% of Delphi's revenues, reported
a net loss of US$15,471,000,000 or US$27.33 per share for the
second quarter of 2008.  The quarterly loss, according to
Bloomberg News, is the third biggest in its 100-year history.

"Second quarter charges of US$2.8 billion and year to date
charges of US$3.5 billion were recorded for increased
liabilities under our Delphi Benefit Guarantee Agreements,
primarily due to expectations of increased obligations and
updated estimates reflecting the nature, value and timing of our
recoveries upon Delphi's emergence from bankruptcy," GM said in
its news release.

A former unit of GM, Delphi was set to emerge from bankruptcy in
mid-April but obtained problems with its US$2,550,000,000 exit
equity financing from Appaloosa Management, L.P.  The plan of
reorganization of Delphi, which has been confirmed by the U.S.
Bankruptcy Court for the Southern District of New York, provides
that GM will receive cash, notes and other securities in
exchange for the consideration it provided to Delphi under their
agreements.  Appaloosa backed out from their investment
agreement after Delphi sought US$2,825,000,000 of its
US$6,100,000,000 exit debt financing from GM, its biggest
customer.

GM said that its second quarter results were primarily driven by
several factors:

  -- significant losses in GM North America (GMNA) due to
     continuing U.S. industry volume declines and shifts in
     vehicle mix, the long strike at American Axle and large
     lease-related charges;

  -- a number of special charges associated with GM's ongoing
     restructuring actions; and

  -- continued losses at GMAC Financial Services (GMAC) and
     updated estimates regarding recoveries and expectations of
     assumed benefit obligations in the Delphi bankruptcy.

Excluding expenses considered by GM to be one-time, including
its adjustment to reserves for bankrupt Delphi Corp., the loss
was US$6,300,000,000, or US$11.21 a share.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                      About General Motors

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

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

                         *     *     *

As disclosed in the Troubled Company Reporter on Aug. 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirm the ratings on Chrysler and DCFS
and remove them from CreditWatch.

As reported in the Troubled Company Reporter on July 17, 2008,
Moody's Investors Service is reviewing the ratings of General
Motors Corporation for possible downgrade.  Ratings under review
include its B3 Corporate Family Rating, B3 Probability of
Default Rating, Ba3 rating for secured debt, and Caa1 rating for
senior unsecured debt.


GENERAL MOTORS: Can Participate in Delphi Suit vs. Appaloosa
------------------------------------------------------------
As widely reported, Judge Robert D. Drain of the U.S. Bankruptcy
Court for the Southern District of New York declined to approve
Appaloosa Management, L.P., et al.'s request for dismissal of
Delphi Corp.'s US$2,550,000,000 lawsuit against them.

Judge Drain also overruled the Plan Investors' objection to
General Motors Corporation's participation as party-in-interest
in the Adversary Proceedings.  According to Bloomberg News,
Judge Drain said Delphi will not settle the adversary cases
without "obtaining input" ahead of time from GM.

Delphi has accused Appaloosa and other investors of defrauding
the Court by stating that they had every intention of performing
under the Equity Purchase and Commitment Agreement.  Appaloosa,
however, argued that Delphi cannot seek specific performance
because it is currently unable to perform under the conditions-
precedent of the EPCA, including obtaining commitment to its
US$6,100,000,000 debt financing and the completion of the rights
offering.

The Wall Street Journal reported that Judge Drain dismissed a
portion of Delphi's complaint, but he rejected most of the
defendants' arguments.  Judge Drain also allowed Delphi to
pursue its fraud claim against the Appaloosa-led group.

The ruling allows Delphi to continue its bid to force the Plan
Investors to make good on the equity investment, WSJ's David
McLaughlin said.

The Plan Investors had also pointed to provision in the EPCA
which provide that the aggregate liability of the the Plan
Investors for any reason, including, for any willful breach,
prior to December 10, 2007, will not exceed US$100,000,000, and
for any acts occurring thereafter, will not exceed
US$250,000,000.

Judge Drain, however, declined to cap damages at the EPCA at
US$250,000,000.  General Motors previously said that the terms
and conditions of a new or modified plan, which it is
negotiating with Delphi and the Official Committee of Unsecured
Creditors, will depend in part on the amount of Delphi's
recovery in the litigation.

According to Bloomberg News, Judge Drain dismissed almost all
claims Delphi made against Goldman Sachs Group Inc. and said any
damages award against the parents of investors Harbinger Del-
Auto Investment Co. Ltd. and Pardus DPH Holding LLC should be
capped.  Goldman Sachs & Co. previously stated that it had not
obligation to close on the EPCA if other parties, including
Appaloosa, failed to perform their obligations under the
agreement.

Bloomberg's Christopher Scinta added that the Court also turned
aside Delphi's effort to subordinate in priority (or disallow)
any claims the investors, other than Appaloosa, hold against
Delphi.  Judge Drain, according to the same report, also denied
part of Delphi's fraud claim against Appaloosa, though he told
Delphi attorneys they can revise their complaint by the end of
the week to seek reinstatement of that claim.

            GM Allowed to Join As Party-In-Interest

Like A-D Acquisition Holdings, LLC, and Appaloosa Management
L.P. and other defendants to Delphi's US$2,550,000,000
complaint, UBS Securities LLC expressed opposition to General
Motors' participation as party-in-interest.

General Motors, in response, to the objections, clarified that
it does not seek to intervene, but instead simply requests to be
afforded admission to participate as a monitor in the Adversary
Proceedings.

Michael P. Kessler, Esq., at Weil, Gotshal & Manges LLP, in New
York, notes that the role sought by GM is subsumed within the
greater rights that would be afforded to GM were it to exercise
its right to intervene as a party to the Adversary Proceedings.
In no way, then, does GM's proposal circumscribe any party's
rights or deprive them of any protectable interests, he asserts.

GM also emphasized that it does not seek to propose settlement
of the dispute or take ownership of the Debtors' claims, nor is
GM asserting rights that are derivative of another party's
rights in the Chapter 11 cases, Mr. Kessler stressed.

GM, Delphi and the Official Committee of Unsecured Creditors
have agreed to terms of GM's participation in the Adversary
Proceedings.  Their stipulation, which has been approved by
Judge Drain, provides that:

  (1) Weil, Gothshal and Manges, counsel of GM, will be served
      with all pleadings and other papers in accordance with
      Rule 5 of the Federal Rules of Civil Procedure and Rule
      7005 of the Federal Rule of Bankruptcy Procedure;

  (2) GM, through its counsel, may participate in the Adversary
      Proceedings in a monitoring role, and will be permitted
      to:

         (i) appear before the Court on any matter, including at
             hearings and, as appropriate, chambers conferences;

        (ii) attend mediation sessions and other formal
             settlement negotiations, subject to any
             restrictions by the mediator; and

       (iii) participate in the discovery process, including
             attendance at depositions, access to all
             documents produced and written discovery requests
             and responses, and deposition transcripts and
             exhibits.

  (3) GM will sign and comply with the confidentiality
      restrictions in the Stipulation and Agreed Protective
      Order Governing Production and Use of Confidential and
      Highly Confidential Information entered in the Adversary
      Proceedings;

  (4) GM will have access to all documents produced and written
      discovery requests and responses, and deposition
      transcripts and exhibits;

  (5) Weil Gotshal, on behalf of GM, will be authorized to
      evaluate the Adversary Proceedings.  Neither Weil Gotshal
      nor GM will use materials provided pursuant to the
      Stipulation and Order for any other purpose;

  (6) The agreement is without prejudice to:

         (i) GM seeking further participation rights in the
             Adversary Proceedings;

        (ii) any party opposing the motion;

       (iii) any party seeking greater restrictions; and

        (iv) GM opposing restrictions;

  (7) The agreement is without prejudice to GM seeking to share
      discovery materials with GM personnel in connection with
      testimony by the personnel at depositions, hearings or
      trial, and if the parties cannot agree, the dispute may be
      presented to the Court; and

  (8) Delphi will not settle either of the Adversary Proceedings
      without obtaining input in advance from GM.

Delphi lawyers will confer with GM's lawyers on a regular and
timely basis concerning the Adversary Proceedings.

The Stipulation will be effective for only so long as the Global
Settlement Agreement and Master Restructuring Agreement entered
into between General Motors and Delphi are not terminated.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                      About General Motors

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

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

                         *     *     *

As disclosed in the Troubled Company Reporter on Aug. 1, 2008,
Standard & Poor's Ratings Services lowered the ratings on
General Motors Corp., Ford Motor Co., and Chrysler LLC, all to
'B-' from 'B'.  The ratings on GM and Ford were removed from
CreditWatch with negative implications, where they had been
placed on June 20, 2008.  Chrysler will remain on CreditWatch
pending the renewal of certain bank lines at DaimlerChrysler
Financial Services Americas LLC, which S&P expects to be
completed in the next few days.  If the bank lines are renewed
as expected, S&P would affirm the ratings on Chrysler and DCFS
and remove them from CreditWatch.

As reported in the Troubled Company Reporter on July 17, 2008,
Moody's Investors Service is reviewing the ratings of General
Motors Corporation for possible downgrade.  Ratings under review
include its B3 Corporate Family Rating, B3 Probability of
Default Rating, Ba3 rating for secured debt, and Caa1 rating for
senior unsecured debt.


SEMGROUP LP: May Draw US$150 Million from BofA's DIP Financing
--------------------------------------------------------------
SemGroup L.P. said that the U.S. Bankruptcy Court for the
District of Delaware has approved a US$150 million interim
debtor-in-possession financing, which will be provided by a
group of banks led by Bank of America.

The interim funding will be used to fund letters of credit to
ensure the return of terms with certain product and service
suppliers.  The company is working with the lenders to finalize
the revised order and expect to present the final order to the
Court in an expedited fashion.

A final hearing to consider the balance of the US$250 million
DIP financing is scheduled for Aug. 18, 2008.

"Obtaining this interim DIP financing is an important step
forward in our Chapter 11 process," said Terry Ronan, SemGroup
acting president and CEO.  "The additional reassurance it
provides to our creditors and employees will be essential in our
ability to execute the plan we have created to maximize value
for creditors."

SemGroup believes the best alternative to maximize value for
creditors is to undertake a sales process that will transition
the company's businesses to well-established companies that can
carry forward SemGroup's mission.  "We have already received
significant interest in our assets because of our talented and
experienced employees, unique industry position, expansive
customer base and premiere service capabilities," Mr. Ronan
said.

SemGroup and certain of its North American subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
U.S. Bankruptcy Code on July 22, 2008.

                  Parties Balk at DIP Financing

The Troubled Company Reporter-Europe said on Aug. 6, 2008, that
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.

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

                       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.


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


DOGAN YAYIN: Fitch Holds 'BB-' LT Local & Foreign Currency IDRs
---------------------------------------------------------------
Fitch Ratings has affirmed Turkey-based Dogan Yayin Holding's
Long-term local and foreign currency Issuer Default ratings at
'BB-'.  Both ratings have Stable Outlooks.

The ratings reflect DYH's leading position in the Turkish media
& entertainment sector, with a 44.7% market share in total ad
spend as of the first five months of 2008.  It benefits from
strong domestic ad spend growth (19% yoy growth in FY07) and
healthy cash balances.  DYH's creditworthiness is driven by its
healthy cash balance and the credit quality of its main
operating subsidiary, Hurriyet, while the high level of debt
under its broadcasting subsidiary, Dogan TV, remains a concern.
Fitch expects DYH to carry the proceeds from the sale of its 25%
stake in Dogan TV on its stand-alone balance sheet and to
continue to de-leverage in the medium-term.

Fitch notes DYH has been highly acquisitive in the past 24
months, but does not factor into the ratings any major cash
outflows associated with expansion in the medium-term.  If DYH
uses the Dogan TV stake sale cash for dividends or any further
acquisitions, thus increasing its net debt position, it will
have immediate negative implications for the ratings.  The
agency does not expect any cash outflows at the DYH level except
for capital contributions to the existing businesses.

The ratings also take into consideration DYH's dominant TV ad
market share of 40% at FYE07.  Its broadcasting EBITDA margins,
excluding new ventures, were up at 18% at FYE07, from 9.9% in
FY06.  However, cash outflows for new investments, such as the
introduction of new thematic channels, Kanal D Romania, and the
new digital platform, D-SMART, continue to depress overall
operating margins.  Fitch does not see D-SMART as a profitable
venture in the medium-term and is concerned that cash outflows
related to D-Smart programming investments and capital
expenditure will weigh on broadcasting operating margins and
cash flow.  Fitch would like to see more evidence that DYH can
sustain its strong operational performance in the long-term.

As at May 2008, DYH had US$307.3 million cash after the sale of
the 25% stake in Dogan TV to Axel Springer.  However, DYH's
consolidated gross debt is still high at US$1.42 billion, based
on management accounts, mainly due to the TME acquisition by
Hurriyet in Q107 and Star TV acquisition in 2005 as well as
investments in D-SMART and Kanal D Romania.  DYH's net debt is
US$743m; it has a consolidated cash balance of US$675 million,
versus consolidated short-term obligations of US$281 million.
As of May 2008, a total of US$656.7 million in debt (46% of
total group debt) was reflected on the balance sheets of
companies within the broadcasting segment.  Dogan TV's net debt
was US$530 million, with a consolidated cash balance of US$127.8
million.  Fitch expects DYH to record a net consolidated
debt/EBITDA ratio of 2-2.5x at FYE08, in line with its
historical average.

As a holding company, DYH depends on dividend flows, service
income and capital gains.  However, the ratings reflect only
dividend flows from small operating companies such as Dogan
Gazetecilik and Dogan Burda Rizzoli in the short-term.  Hurriyet
did not pay dividends in 2007 due to the TME transaction, and
Fitch understands that it will resume dividend payout only in
2009-2010.  Dogan TV is not expected by Fitch to make a
contribution to dividend flows before 2010 as it will be paying
down the debt stemming from the Star TV acquisition and new
investments such as Kanal D Romania and D-SMART.  Fitch
understands management is willing to sell a minority stake in D-
SMART to a strategic partner to reduce Dogan TV's leverage in
the medium-term.

DYH is owned by Dogan Sirketler Grubu A.S (63.02% equity and
63.02% voting interests), which is the holding company of Aydin
Dogan, and his family.  The Dogan Family and AD Foundation
together own 3%. The rest of DYH shares are floated.


HURRIYET: Fitch Holds 'BB' ID Rating with Stable Outlook
--------------------------------------------------------
Fitch Ratings has affirmed Turkey-based newspaper group
Hurriyet's Long-term foreign and local currency Issuer Default
ratings at 'BB'.  Both ratings have Stable Outlooks.  The agency
has also affirmed Hurriyet's National Long-term rating at
'AA(tur)' with Stable Outlook.

The ratings reflect Hurriyet's strong leadership position, with
a 38.9% share of newspaper advertising in 2007.  They also
reflect its capacity to generate strong free cash flow
generation and de-leveraging following its TME acquisition in
H107.  Approximately 35% of the Hurriyet group's overall
revenues and EBITDA are expected to be derived from outside
Turkey in 2008.

Under Fitch's "Parent and Subsidiary Rating Linkage" Criteria
Report, the current ratings reflect the weak link between the
two companies, due to dividend restrictions, DYH's only 60%
stake in Hurriyet and its guarantee over Hurriyet's debt related
to the TME acquisition.  Any change in the rating of DYH or any
acquisition by Hurriyet that increases leverage substantially
will have negative implications for the ratings.

Hurriyet's credit metrics are in line with the current ratings
and are expected to remain so.  It recorded a net consolidated
debt/EBITDA ratio of around 2x at end-May 2008, and there is no
liquidity concern in the short-term.  Management targets further
de-leveraging to a net debt/EBITDA of 1.6x for FY08 and 1.3x at
FY09.  The Stable Outlook reflects Fitch's concerns over
Hurriyet's and TME's weaker operating performances in 2006-2007
and higher debt metrics at the Hurriyet consolidated level after
the TME acquisition, versus a net cash position historically.

High newsprint prices of approximately US$769 per ton in 2007,
promotional activities due to elevated competition, and a rise
in the average number of pages, including inserts and
supplements, have depressed EBITDA margins to 20.6% at FYE07
from 21.6% at FYE06.  Fitch also notes the ongoing restructuring
process at TME and higher marketing costs to fend off
competition in Moscow impacted TME's operating performance
negatively.

Hurriyet's FYE07 free cash flow turned positive at TRY35.4
million (US$30.4 million), due to lower-than-expected capital
expenditure of TRY64.5 million versus TRY121 million at FYE06
and no dividend payout in 2007 as a result of the TME
acquisition.  Hurriyet is not expected to pay any dividends in
2008 and 2009 as it concentrates on generating free cash flow
and reducing leverage.  Capital expenditure should be around
US$30 million-40 million in FY08-FY09, which is close to the
historical average and should ease the burden on cash flow.  TME
generates ample free cash flow on an annual basis, which will be
used to meet its own debt obligations as well as pay dividends
to its owner, Hurriyet.

As at FYE07, gross debt - all bank debt - was TRY666.9 million,
while cash totaled TRY140 million.  The TME transaction in Q107
resulted in a US$336 million cash outflow from Hurriyet,
financed by syndicated loans from ABN Amro Bank as the lead-
manager, a bilateral loan by Garanti Bank and the company's
internal sources.   Fitch notes Hurriyet's consolidated leverage
includes bank debt at the TME level, totaling US$144.8 million
at end-May 2008.  Fitch also notes the proceeds from TME's
US$54.3 million sale of its Polish portal companies in June 2008
have been used to pay debt.  This has reduced debt at the TME
level to US$90.5 million.  Thus, Hurriyet's total consolidated
net debt has been reduced to an estimated amount of US$363
million at end-June 2008 according to management accounts, down
from US$433.1 million as of end-May 2008.

Hurriyet is Turkey's leading daily national newspaper, with
strong positions in advertising and circulation revenues.
Hurriyet is a subsidiary of DYH, which has 60% equity interest.
The latter is controlled by Dogan Holding.  TME is a leading
provider of print and online classified advertising in Russia,
the CIS, the Baltics and eastern Europe.


TURKCELL ILETISIM: Earns US$426.4 Mln for 2nd Qtr Ended June 30
---------------------------------------------------------------
Turkcell Iletisim Hizmetleri A.S. posted US$426.4 million in net
income on US$1.76 billion in net revenues in the second quarter
ended June 30, 2008, compared with US$273.6 million in net
income on US$1.50 billion in net revenues for the same period in
2007.

Turkcell said the increase in net revenues was mainly due to:

    * a 4.7% increase in its subscriber base;
    * 6.5% appreciation of TRY against US$;
    * the price increase in 2007; and
    * the contribution of consolidated subsidiaries.

On June 25, 2008, the company introduced an upward price
adjustment of 3.66% on a blended basis in line with the trends
in the general operating environment as well as customer
behavior and trends in our competitive environment.  However,
the impact of this adjustment is not reflected in the
second quarter results, yet.

The year-on-year net income growth was mainly attributable to a
US$139.9 million translation loss that Tukcell recorded in the
second quarter 2007, while during the second quarter 2008, the
company recorded only US$19.4 million translation loss.

Net income margin increased to 24.3% in the second quarter of
2008 from 18.2% in the same period in 2007.

Turkcell also reported US$913.2 million in net income on
US$3.16 billion in net revenues in the first ended June 30,
2008, compared with US$545.8 million in net income on
US$2.63 billion in net revenues for the same period in 2007.

As of June 30, 2008, Turkcell had US$8.42 billion in total
assets, US$2.32 billion in total liabilities and US$6.1 billion
in total shareholders' equity.

                        About Turkcell

Based in Instanbul, Turkey, Turkcell Iletisim Hizmetleri A.S.
--http://www.turkcell.com.tr/eng-- provides high-quality mobile
voice and data services through its own GSM network.  The
company also operates in the Ukraine through its indirect
subsidiary Astelit, in Azerbaijan, Kazakhstan, Georgia and
Moldova through its associate Fintur, and in Northern Cyprus
through its wholly owned subsidiary Kibris Telekom.

                         *     *     *

Turkcell Iletisim Hizmetleri continues to carry Ba2
foreign currency and domestic currency corporate family ratings
with positive outlook from Moody's Investors Service.  THe
agency affirmed the ratings in February 2008.

Turkcell also continues to carry BB foreign currency long-term
corporate credit rating with positive outlook from Standard &
Poor's Ratings Services.

Turkcell continues to carry Fitch Ratings' BB foreign currency
Issuer Default rating with stable outlook, and BB+ local
currency Issuer Default rating with positive outlook.


TURKCELL ILETISIM: Inks Deal to Buy 80% of Belarus Telecom
----------------------------------------------------------
Turkcell Iletisim Hizmetleri A.S. has signed a sale-and-purchase
agreement to acquire a 80% stake in Belarusian
Telecommunications Network (BeST).  The completion of the
transaction will be subject to the fulfillment of the conditions
set forth in the SPA.

The stake will be acquired from the State Committee on Property
of the Republic of Belarus for US$500 million.  The payment is
expected to be realized in three tranches of which US$300
million is expected to be paid on the closing date, which is
expected to be 30 days after the signature date and additional
US$100 million tranches are expected to be paid on
Dec. 31, 2009 and 2010 respectively.  An additional payment of
US$100 million shall be made when BeST records a full-year
positive net income for the first time.

Turkcell CEO Sureyya Ciliv noted, "The acquisition of BeST
represents an opportunity for Turkcell to gain access to a
market with a growth potential.  Belarus  is an attractive
emerging market within Turkcell's growth geography with its
young and well educated population and steadily growing economy.
We are also happy to be starting our operations with an already
established third operator in Belarus.  We believe we can use
our complimentary skills we gained in Ukraine and CIS very
effectively in Belarus to differentiate BeST as soon as
possible."

                        About Turkcell

Headquartered in Instanbul, Turkey, Turkcell Iletisim Hizmetleri
A.S. -- http://www.turkcell.com.tr/eng-- provides high-quality
mobile voice and data services through its own GSM network.  The
company also operates in the Ukraine through its indirect
subsidiary Astelit, in Azerbaijan, Kazakhstan, Georgia and
Moldova through its associate Fintur, and in Northern Cyprus
through its wholly owned subsidiary Kibris Telekom.

                         *     *     *

Turkcell Iletisim Hizmetleri continues to carry Ba2
foreign currency and domestic currency corporate family ratings
with positive outlook from Moody's Investors Service.  The
agency affirmed the ratings in February 2008.

Turkcell also continues to carry BB foreign currency long-term
corporate credit rating with positive outlook from Standard &
Poor's Ratings Services.

Turkcell continues to carry Fitch Ratings' BB foreign currency
Issuer Default rating with stable outlook, and BB+ local
currency Issuer Default rating with positive outlook.


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


ATOL-PLUS LLC: Creditors Must File Proofs of Claim by August 16
---------------------------------------------------------------
Creditors of Larisa Timofeeva have until Aug. 16, 2008, to
submit proofs of claim to:

         Larisa Timofeeva
         Liquidator
         54017 Nikolaev Ukraine P.O. Box 179

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on July 8, 2008.
The case is docketed as 5/362/08.

The Court is located at:

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

The Debtor can be reached at:

         LLC Atol-Plus
         Spasskaya Str. 1
         54001 Nikolaev
         Ukraine


FUND OF ASSISTANCE: Creditors Must File Claims by August 20
-----------------------------------------------------------
Creditors of LLC Fund of Assistance to Youth (code EDRPOU
24415102) have until Aug. 20, 2008, to submit proofs of claim
to:

         State Tax Inspection in Cherkassy, Liquidator
         Khreschatik Str. 235
         18000 Cherkassy
         Ukraine

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

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Fund of Assistance to Youth
         Gorky Str. 4
         Cherkassy
         Ukraine


KRUG-AUTO LLC: Creditors Must File Proofs of Claim by August 20
---------------------------------------------------------------
Creditors of LLC Krug-Auto (code EDRPOU 24419940) have until
Aug. 20, 2008, to submit proofs of claim to:

         State Tax Inspection in Cherkassy, Liquidator
         Khreschatik Str. 235
         18000 Cherkassy
         Ukraine

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

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Krug-Auto
         L. Ukrainka Str. 6/2
         Cherkassy
         Ukraine


MOD OJSC: Creditors Must File Proofs of Claim by August 20
----------------------------------------------------------
Creditors of OJSC Mod (code EDRPOU 31475325) have until
Aug. 20, 2008, to submit proofs of claim to:

         The Economic Court of Lvov
         Lichakivska Str. 81
         79010 Lvov
         Ukraine

The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on July 10, 2008.
The case is docketed as 27/49.


LAVANDA LLC: Creditors Must File Proofs of Claim by August 20
-------------------------------------------------------------
Creditors of LLC Lavanda (code EDRPOU 23984996) have until
Aug. 20, 2008, to submit proofs of claim to:

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

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on June 4, 2008.
The case is docketed as 5/30B.

The Debtor can be reached at:

         LLC Lavanda
         Mayakovsky Str. 3/5
         Yenakiyevo
         Donetsk
         Ukraine


TCHIBES LLC: Creditors Must File Proofs of Claim by August 20
-------------------------------------------------------------
Creditors of LLC Tchibes (code EDRPOU 31947752) have until
Aug. 20, 2008, to submit proofs of claim to:

         State Tax Inspection in Cherkassy, Liquidator
         Khreschatik Str. 235
         18000 Cherkassy
         Ukraine

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

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Tchibes
         Pervomayskaya Str. 68
         Cherkassy
         Ukraine


TECHNICS SERVICE: Creditors Must File Proofs of Claim by Aug. 16
----------------------------------------------------------------
Creditors of LLC Technics Service (code EDRPOU 33350132) have
until Aug. 16, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on July 16, 2008.
The case is docketed as 24/189-b.

The Debtor can be reached at:

         LLC Technics Service
         Bliukher Str. 11
         04128 Kiev
         Ukraine


TOUR-POLOZ: Creditors Must File Proofs of Claim by Aug. 20
----------------------------------------------------------
Creditors of LLC Travel Agency Tour-Poloz (code EDRPOU 32881551)
have until Aug. 20, 2008, to submit proofs of claim to:

         State Tax Inspection in Cherkassy, Liquidator
         Khreschatik Str. 235
         18000 Cherkassy
         Ukraine

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

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

The Debtor can be reached at:

         LLC Travel Agency Tour-Poloz
         Lenin Str. 31/1
         Cherkassy
         Ukraine


UTEK LLC: Creditors Must File Proofs of Claim by August 16
----------------------------------------------------------
Creditors of LLC Utek (code EDRPOU 30859283) have until
Aug. 16, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on June 20, 2008.
The case is docketed as 23/181-b.

The Debtor can be reached at:

         LLC Utek
         Kikvidze Str. 13
         01103 Kiev
         Ukraine


UZ AND ME: Creditors Must File Proofs of Claim by August 20
-----------------------------------------------------------
Creditors of LLC Uz And Me (code EDRPOU 31947946) have until
Aug. 20, 2008, to submit proofs of claim to:

         State Tax Inspection in Cherkassy, Liquidator
         Khreschatik Str. 235
         18000 Cherkassy
         Ukraine

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

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Uz And Me
         Tchaikovsky Str. 12
         Cherkassy
         Ukraine


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


BANBURY PERSONNEL: Brings in Liquidators from Tenon Recovery
------------------------------------------------------------
S. J. Parker and T. J. Binyon of Tenon Recovery were appointed
joint liquidators of Banbury Personnel Ltd. on July 28, 2008,
for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Banbury Personnel Ltd.
         c/o Tenon Recovery
         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


BORDERFOAM LTD: Joint Liquidators Take Over Operations
------------------------------------------------------
Kerry Bailey and Ian Gould of PKF (U.K.) LLP were appointed
joint liquidators of Borderfoam Ltd. on July 22, 2008, for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

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


CSRL MECHANICAL: Taps Liquidators from Vantis
---------------------------------------------
G. Mummery and P. Atkinson of Vantis Business Recovery Services
were appointed joint liquidators of CSRL Mechanical Services
Ltd. on July 25, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         CSRL Mechanical Services Ltd.
         c/o Vantis Business Recovery Services
         43-45 Butts Green Road
         Hornchurch
         Essex
         RM11 2JX
         England


DIAMOND LIFESTYLE: Ian S. Carr Leads Liquidation Procedure
----------------------------------------------------------
Ian S. Carr of Grant Thornton U.K. LLP was appointed  liquidator
of Diamond Lifestyle Ltd. on July 22, 2008, for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Diamond Lifestyle Ltd.
         Diamond House
         7 Ramsay Court
         Hinchingbrooke Business Park
         Huntingdon
         Cambridgeshire
         PE29 6FY
         England


FEDERAL MOGUL: T&N Asbestos Victims to Get GBP2 Mln in Payments
---------------------------------------------------------------
About 50 families who were exposed to asbestos mined by Turner
and Newall can recover almost GBP2,000,000, or about
US$3,800,000 in compensation, Thompsons Solicitors said in a
public statement.

Thompson Solicitors represents the T&N asbestos victims.

U.K.-based T&N formerly mined asbestos before filing
administration proceedings under the United Kingdom Insolvency
Act in 2001.  T&N's mining operations resulted to workers being
exposed to asbestos, which causes a kind of cancer in the lungs.
Compensation claims filed by the asbestos victims were "stayed"
or "frozen" as a result of T&N's administration proceedings.

T&N was acquired by Federal-Mogul Corporation in 1999.
Federal-Mogul and its U.S. affiliates also filed parallel
bankruptcy proceedings in the United States in 2001 to separate
their operating liabilities from their increasing asbestos
liabilities.

In September 2005, the administrators of the U.K. Debtors
entered into an agreement outlining the terms of distributions
to creditors of the U.K. Debtors.  In October 2006, Federal-
Mogul placed approximately US$750,000,000 for, among other
things, asbestos claims against T&N.

According to Thompsons Solicitors, more than 100 former T&N
employees have died of mesothelioma or other diseases relating
to asbestos since 2001.

Ian McFall at Thompsons Solicitors said the firm is still
working to ensure that other families who have been victims of
T&N's asbestos mining operations will receive appropriate
compensation.

                     About Federal-Mogul

Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring
efforts.

When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.

Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based
at Dudley Hill, Bradford.  Peter D. Wolfson, Esq., at
Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq.,
Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard
Firm represent the Official Committee of Unsecured Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan.  On July 28,
2004, the District Court approved the Disclosure Statement.  The
estimation hearing began on June 14, 2005.  The Debtors
submitted a Fourth Amended Plan and Disclosure Statement on Nov.
21, 2006, and the Bankruptcy Court approved that Disclosure
Statement on Feb. 6, 2007.  The Fourth Amended Plan was
confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed
by the District Court on November 14.  Federal-Mogul emerged
from chapter 11 on Dec. 27, 2007.  (Federal-Mogul Bankruptcy
News, Issue No. 170; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter on Jan. 10, 2008,
Moody's Investors Service confirmed the ratings of the
reorganized Federal-Mogul Corporation -- Corporate Family
Rating, Ba3; Probability of Default Rating, Ba3; and senior
secured bank credit facilities, Ba2.  The outlook is stable.
The financing for the company's emergence from Chapter 11
bankruptcy protection has been funded in line with the structure
originally rated by Moody's in a press release dated Nov. 28,
2007.

As reported in the Troubled Company Reporter on Jan. 7, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Southfield, Michigan-based Federal-Mogul Corp.
following the company's emergence from Chapter 11 on Dec. 27,
2007.  The outlook is stable.


GEMINI PRODUCTIONS: Calls in Liquidators from Tenon Recovery
------------------------------------------------------------
David Thorniley and Andrew James Pear of Tenon Recovery were
appointed joint liquidators of Gemini Productions Ltd. on
July 22, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         Gemini Productions Ltd.
         Third Floor
         25-31 Tavistock Place
         London
         WC1H 9SF
         England


GENERAL TRADING: Administrators Sell Business as Going Concern
--------------------------------------------------------------
The General Trading Company (Mayfair) Limited has been sold as a
going concern.

As reported in the Troubled Company Reporter-Europe, GTC was
placed into administration on July 21, 2008.  Philip Duffy,
Jason Godefroy and Paul Clark, partners at MCR, were appointed
as joint administrators.

"We are pleased to announce the sale of GTC as a going concern,
particularly as we remain in a difficult trading environment in
the retail sector.  Not only have we managed to preserve an
historic reputation associated with the store, we've also been
able to preserve the majority of jobs in the Company, with 19
staff retaining their positions," Mr. Clark, partner at MCR,
commented.

Founded by the Part family in 1920, the General Trading Company
was one of London's first "boutique" home stores focusing on
soft furnishings, interior decor, chinaware and glassware as
well as clothing and accessories.  It rapidly became highly
fashionable as well as gaining Royal patronage.  It was one of
the first stores in the U.K. to develop the concept of the
"Wedding List" now a traditional part of any marriage.


ITV PLC: First Half 2008 EBITA Down 20% to GBP121 Million
---------------------------------------------------------
ITV plc released interim financial results for the six months
ended June 30, 2008.

ITV's EBITA for the six months ended June 30, 2008 was GBP121
million, compared with EBITA of GBP151 million for the same
period in 2007.

ITV's group revenue for the six months ended June 30, 2008 was
GBP1.03 billion, compared with group revenue of GBP1 billion for
the same period last year.

                          Operating Summary

Revenue growth of 3% delivered by a strong operational
performance in ITV's Broadcasting, Global Content and Online
businesses.

   -- ITV Family net advertising revenue (NAR) was up 1% and
      viewing share up 2.5%.  ITV Family share of commercial
      impacts was flat at 41.4% (2007: 41.4%) with ITV1 down
      5.1% (2007: down 5.9%).

   -- Global Content revenues (including internal) were up 3%
      with external revenues up 30%.

   -- Online revenues were up 6% with ITV sites delivering 50
      million online video views over the period and itv.com
      unique users averaging 6 million per month.

The reduction in operating EBITA reflects, in particular, the
first half weighting of ITV1 sports costs (up GBP29 million
compared to 2007) primarily due to Euro 2008, as indicated in
the Interim Management Statement in May.  Over the full year,
the ITV1 network program budget will be held at its 2007 level
and this effect will reverse.

                      Current Trading

ITV estimates that total TV NAR for the eight months to August
will be down 1% year-on-year, with ITV NAR flat.  On current
estimates, the television advertising market has weakened in
September, where tough year-on-year comparisons apply, given the
Rugby World Cup in 2007.  ITV estimates that ITV NAR for
September will be down 20% with the total market down 17%.
While ITV has limited visibility on advertising revenues beyond
September, ITV expects to outperform the total market over the
full year.

                        Goodwill Impairment

As a result of reduced advertising market forecasts for 2008/09
and in accordance with IAS 36, an impairment loss against
Broadcasting goodwill has been recognized.  A non-cash
impairment charge of GBP1,600 million is included in operating
costs in the income statement.  The goodwill arose from
acquisitions in 2000 and 2004 leading to the creation of ITV
plc.

                           Dividend

In view of the uncertain economic outlook and the Company's
decision to maintain the investment in programming to deliver
the Turnaround Strategy, the interim dividend has been set at
0.675 pence per share.  The level of the final dividend will be
considered in the light of second half trading and the economic
outlook.  The Company's policy remains to deliver dividend cover
of 2 to 2½ times over the medium term.

                     Turnaround Strategy

The Board has reassessed the Turnaround Strategy with management
in the light of the weaker advertising and economic outlook.
The Board remains confident that the Turnaround Strategy will
deliver sustainable, long-term growth and is therefore
maintaining its investment in programming.  However, given the
market uncertainty, ITV is revising its Global Content and
Online targets:

   -- In Global Content, ITV is seeking to grow its annual
      revenues (including internal), through organic growth and
      acquisition, to a run-rate of GBP1 billion by the end of
      2012.  The previous target was to double revenues to
      GBP1.2 billion by 2012.

   -- In Online, ITV is seeking to grow its annual revenues to a
      run-rate of GBP150 million by the end of 2012.  The change
      to the previous target of GBP150 million online revenues
      by 2010 also reflects regulatory delay to the planned
      Kangaroo service.  The Company expects to meet the revised
      online target without relying on substantial acquisitions.

ITV's Broadcasting target of an ITV Family share of commercial
impacts of at least 38.5% in 2012 is unchanged.  In addition,
ITV had previously set a group revenue target of 3-5% compound
annual growth to 2010.  With Broadcasting revenues accounting
for 80% of overall revenues, group revenue growth will be
largely dependent on television advertising market growth.

                      Cost Savings

The Company is today publishing a new target of achieving a
GBP35 million run-rate of additional cost savings by the end of
2010.  ITV is already on track to deliver GBP41 million in
savings by the end of 2008 and GBP40 million of additional
regional savings from the end of 2009.

                      Debt and Liquidity

The liquidity position of the Company remains strong and has
been strengthened further since the end of the half year.  In
July, ITV raised GBP110 million from an issue of Eurosterling
bonds with a maturity date of March 20, 2013.  The company has
also secured a further GBP200 million of 5 year committed bi-
lateral financing.  Net debt at June 30, 2008 stood at GBP663
million, down GBP5 million on Dec. 31, 2007.

Michael Grade, Executive Chairman of ITV, said:

"Almost a year into the Turnaround Strategy, we have made
considerable operational progress.  With more viewers watching
more ITV programs, we are delivering greater value for
advertisers.  We have out-performed the market in terms of
advertising revenues and viewing share.  Our Global Content
business is growing strongly and our presence online is
strengthening, notwithstanding the delay in launching Kangaroo.

"While our visibility on advertising revenues beyond September
is limited, with a strong schedule in place for the rest of the
year and planned for 2009, we are confident that we will
continue to outperform.

"However we cannot control the economic environment in which we
operate.  As a result of the recent slowdown in the television
advertising market, the Board has taken some tough decisions
which are reported here today.

"We are implementing a new cost efficiency plan which will
deliver GBP35 million in additional annual savings by the end of
2010.  We are taking a GBP1,600 million impairment charge on
Broadcasting goodwill and we are adjusting the turnaround
targets for Global Content and Online.  We continue to work with
regulators, making the case for an urgent reduction in ITV's
regulatory burden.

"In the light of the uncertain economic outlook and the
importance of maintaining programming investment, the Board has
also reduced the level of the interim dividend to 0.675 pence
per share.

"The Board's confidence in the Turnaround Strategy is reflected
in the decisions we have announced today.  In particular, we are
committed to maintaining investment, notwithstanding the
cyclical downturn.  By holding our focus on delivering the
Turnaround Strategy, we are confident ITV will be strongly
positioned to grow as the economy recovers.

"ITV's long-term goal remains to create greater value for
shareholders in the digital world from our position as the
U.K.'s favorite source of free entertainment."

                            About ITV plc

Headquartered in London, ITV plc --
http://www.itvplc.com/-- is a U.K. media company, owning all of
the regional Channel 3 licenses in England and Wales.  The
company wholly owns three leading free-to-air digital channels:
ITV2, ITV3 and ITV4.  It owns the market leading cinema screen
advertising businesses in the U.K. and Republic of Ireland and
has similar joint ventures in continental Europe and the United
States.


ITV PLC: S&P Cuts Long-Term Corp. Credit Rating to BB+ from BBB-
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit and senior unsecured debt ratings on U.K.
private broadcaster ITV PLC to 'BB+' from 'BBB-'.  At the same
time, the short-term corporate credit rating was lowered to 'B'
from 'A-3'.  The outlook is stable.

S&P has assigned its 'BB+' senior unsecured debt rating and a
recovery rating of '4' to ITV's recent GBP110 million
loating-rate notes due 2013.  S&P also assigned a recovery
rating of '4' to ITV's senior unsecured EUR500 million notes due
2011, GBP250 million notes due 2017, GBP250 million notes due
2009, and GBP325 million notes due 2015.  The '4' recovery
ratings indicate S&P's expectation of average (30%-50%) recovery
for unsecured creditors in the event of a payment default.

"The downgrade follows the release of half-year 2008 results
indicating a further significant fall in EBITDA and a likely
weakening of the group's business in the second half of 2008,"
said S&P's credit analyst Michael O'Brien.  "This reflects a
lack of visibility beyond September 2008 and a weaker short-term
outlook, with an expected 3% drop for the TV advertising market
overall."

As a result, ITV has taken a noncash impairment charge to
broadcasting goodwill to reflect lower future returns, before
factoring in any regulatory changes that could provide increased
flexibility to control costs.  In addition, ITV revised parts of
its turnaround strategy revenue expectations for its Global
Content and Online divisions.

Over the first half of 2008, ITV maintained its strong market
performance in terms of viewing shares, but EBITDA including
exceptional operating losses dropped 20.5%, through a
combination of front-weighted program costs and a 1.2% drop in
broadcast revenues.  This, in addition to an increase in S&P's
pension adjustment to ITV's debt, has resulted in a notable
weakening of credit metrics. For the 12 months to June 30, 2008,
adjusted debt to EBITDA was a weaker 3.5x and funds-from-
operations to debt was 20.2%, compared with 2.9x and 27.3% for
full-year 2007.

ITV has announced a credit-supportive 50% cut in its interim
dividend to be paid in January 2009, while giving no guidance as
to subsequent dividends and maintaining its investment in
programming to support future market performance.

S&P expects that ITV will continue to pursue its turnaround
strategy to ensure the successful execution of those elements of
its business plans that are within the group's control.  This
relates particularly to the group's ability to control costs
with a view to offsetting the challenges presented by regulatory
constraints and tougher market conditions so that funds-from-
operations to debt does not materially drop below 20%.

Any material decrease in advertising revenues leading to a
significant deterioration of the group's revenues and financial
profile or any departure in financial policy, such as a more
aggressive acquisition or shareholder-friendly strategy, could
lead to lower ratings.

Ratings upside is limited in the prevailing regulatory
environment, but could be envisaged in the medium term if the
group manages to stabilize or grow share of commercial impacts
(SOCI) and advertising revenues in an environment of visible and
sustainable market recovery in which regulatory burdens are
eased, resulting in a significant and sustainable profitability
and leverage improvement from current levels.


NORTEL NETWORK: Posts US$251 Mln Net Loss for First Half 2008
--------------------------------------------------------------
Nortel Network Corp. posted US$251 million in net losses on
US$5.38 billion in net revenues for the first half ended
June 30, 2008, compared with US$140 million in net losses on
US$5.05 billion in net revenues for same period in 2007.

Nortel posted US$113 million in net losses on US$2.6 billion in
net revenues for the second quarter ended June 30, 2008,
compared with US$37 million in net losses on US$2.56 billion in
net revenues for same period in 2007.

As of June 30, 2008, Nortel Network had US$15.87 billion in
total assets, US$13.37 billion in total liabilities, and
US$2.5 billion in total shareholders' equity.

"Nortel's financial performance in the first half of 2008 has
been consistent and disciplined. We have achieved our objectives
and are on track to meet our targets for the year," said Nortel
president and CEO Mike Zafirovski.  "In the second quarter, the
company focused on the work at hand and improved productivity,
stepped-up cost reduction activities and enhanced margin
performance. We delivered gross margin of 43.1%, the seventh
consecutive quarter of year-over-year improvement, and
management operating margin of 4.3%, the eighth consecutive
quarter of year-over-year improvement."

"We continue to see strong customer momentum in key growth areas
of our business. In recent months, we've signed a comprehensive
global managed services telepresence agreement with Deloitte,
have secured approximately 20 wins for our innovative 40G
offering, and earlier this week signed on as the official
network infrastructure partner for the London 2012 Olympic and
Paralympic Games," said Zafirovski. "In the second half, faced
with a challenging business environment, we will continue our
focus on execution and on delivering accelerated growth in key
segments in order to achieve our financial objectives for the
year."

                       About Nortel Networks

Nortel Networks Corporation -- http://www.nortel.com--
(NYSE/TSX: NT) is a global supplier of networking solutions
serving both service provider and enterprise customers.  It
supplies end-to-end networking products and solutions that help
organizations enhance and simplify communications.  Nortel
operates in four segments: Carrier Networks, Enterprise
Solutions, Metro Ethernet Networks and Global Services.  Nortel
Networks Limited is the company’s principal operating
subsidiary.

The company's executive offices are located in Toronto and has
operations in the United Kingdom, China, Australia, Argentina
and Brazil, among others.

                          *     *     *

In May 2008,  Standard & Poor's Ratings Services revised its
outlook on Toronto-based telecommunications equipment provider
Nortel Networks Ltd. to positive from stable.  At the same time,
S&P affirmed the ratings, including the 'B-' long-term corporate
credit rating, on the company.  The ratings on NNL are based on
the consolidation with parent Nortel Networks Corp.

At the same time, S&P assigned a 'B-' bank loan rating to NNL's
proposed US$500 million 10.75% senior unsecured notes due 2016.
The notes are being issued as an add-on to the existing
US$450 million 10.75% senior unsecured notes due 2016, issued
July 2006.  S&P also assigned a recovery rating of '4' to the
notes, indicating the expectation for average (30%-50%) recovery
in the event of payment default.  Nortel will use the net
proceeds from the new debt issuance, together with cash
balances, to repay Nortel Network Corp.'s US$675 million 4.25%
convertible notes maturing Sept. 1.

At the same time, Moody's Investor Service said Nortel Network
Corp.'s Senior Unsecured Convertible, Exchange Bond, Debenture
ratings remains unchanged at B3 with LGD assessment changed to
LGD4, 66% from LGD4, 67%.


REFCO INC: Ex-CEO Phillip Bennett Settles with US SEC
-----------------------------------------------------
Phillip R. Bennett, former CEO, chairman, and controlling
shareholder of Refco Inc., has signed an agreement to settle a
civil injunctive action filed by the U.S. Securities and
Exchange Commission, Reuters reports citing court documents.

As appeared in the TCR-Europe in February 2008, a complaint was
filed in the United States District Court for the Southern
District of New York on Feb. 19, 2008, alleging that Mr. Bennett
orchestrated a scheme that periodically concealed hundreds of
millions of dollars owed to Refco by a private entity that he
controlled.

The complaint also alleged that Mr. Bennett directed practices
that artificially inflated Refco's financial results.

The complaint sought a permanent injunction enjoining Mr.
Bennett from violating Section 17(a) of the Securities Act,
Sections 10(b) and 13(b)(5) of the Exchange Act, and Exchange
Act Rules 10b-5, 13b2-1, and 15d 14, and from aiding and
abetting violations of Sections 13(b)(2)(A), 13(b)(2)(B), and
15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-
13.

The complaint also sought payment by Mr. Bennett of unjust
enrichment that he received as a result of his actions, with
prejudgment interest thereon, and imposition of civil money
penalties against him pursuant to Section 20(d) of the
Securities Act and Section 21(d)(3) of the Exchange Act.

According to Reuters, Mr. Bennett did not admit or deny the
allegations in the complaint.  He also waived the right to
appeal the final judgment, which prohibits him from acting as a
officer or director of a public company.

The settlement, however, did not mention or specify any
financial agreements, Reuters adds.

                            Fraud Case

In July 2008, the Hon. Naomi R. Buchwald of the U.S. District
Court for the Southern District of New York in Manhattan
sentenced Mr. Bennett of 16-year prison term after he pleaded
guilty of defrauding Refco investors out of US$2.4 billion.

Mr. Bennett said he will appeal the prison term.

Mr. Bennett was accused of hiding Refco's true financial
position from investors by moving more than US$1,000,000,000 in
debt off the company's books to Refco Group Holdings Inc, a
privately held entity owned by Mr. Bennett.  Mr. Bennett
admitted that he conspired with other unnamed Refco executives
to conceal the size of Refco's liabilities, and said he deceived
his auditors, investors and lenders.

Mr. Bennett remains at his home in Somerset County, New Jersey
under electronic monitoring.  Mr. Bennett has been out on a
US$50,000,000 bail after his arrest in 2005, and is expected to
report to prison on Sept. 4, 2008.

                            About Refco

Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base.  Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore.  In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.  The company has operations in Bermuda.

The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

The Court confirmed the Modified Joint Chapter 11 Plan of Refco
Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006.  That Plan became effective on Dec. 26,
2006.


S & E CLEANING: Taps Liquidators from Tenon Recovery
----------------------------------------------------
S. J. Parker and T. J. Binyon of Tenon Recovery were appointed
joint liquidators of S & E Cleaning Ltd. on July 18, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached at:

         S & E Cleaning Ltd.
         c/o Tenon Recovery
         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


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

         David Elliott
         Liquidator
         Moore Stephens LLP
         Victory House
         Admiralty Place
         Chatham Maritime
         Kent
         ME4 4QU
         England

David Elliott of Moore Stephens LLP was appointed liquidator of
the company on July 29, 2008, for the creditors' voluntary
winding-up procedure.


SYNCORA: Moody's Puts B2 IFSR Under Review for Possible Upgrade
---------------------------------------------------------------
Moody's Investors Service has placed the B2 insurance financial
strength ratings of Syncora Guarantee Inc., Syncora Guarantee
(U.K.) Ltd. and Syncora Guarantee Re Ltd. on review for possible
upgrade.  In the same rating action, Moody's confirmed the
ratings of Syncora Holdings Ltd. with a negative outlook.
Moody's also placed the ratings of Twin Reefs Pass-Through Trust
on review with direction uncertain.  This rating action was
prompted by SCA's announcement that it has closed on the
previously announced agreement with XL Capital Ltd. providing
for the termination, elimination or commutation of certain
reinsurance, guarantees and other agreements with XL and its
affiliates in return for a payment by XL of US$1.775 billion in
cash and 8 million shares of XL Class A ordinary shares.

SCA also announced it has closed on the previously announced
agreement with Merrill Lynch & Co., Inc. for the termination of
eight credit default swaps on ABS CDOs written by SG in return
for a US500 million cash payment to Merrill Lynch.  Prior to
this rating action, the ratings of SG and SG Re were under
review with direction uncertain and the debt ratings of SCA and
Twin Reefs were under review for possible downgrade.

Moody's ratings on securities that are guaranteed or "wrapped"
by a financial guarantor are generally maintained at a level
equal to the higher of a) the rating of the guarantor (if rated
at the investment grade level), or b) the published underlying
rating.

In accordance with current rating agency policy, following
Moody's June 20, 2008 rating action on XL Capital Assurance (now
Syncora Gurantee) and XL Financial Assurance, which lowered
their ratings to below the investment grade level, Moody's
withdrew ratings on SG and SG Re-wrapped securities for which
there was no published underlying rating.  Should the
guarantors' ratings subsequently move back into the investment
grade range or should the agency subsequently publish the
associated underlying rating, Moody's would reinstate previously
withdrawn ratings on those wrapped instruments.

According to Moody's, the review for possible upgrade on the
insurance financial strength ratings of SG and SG Re reflects
the significant improvement to SCA's capital adequacy position
and upward pressure on the ratings following the successful
completion of the aforementioned transactions with XL and
Merrill Lynch.  However, Moody's stated that the insurance
financial strength ratings are likely to remain non-investment
grade at the conclusion of our rating review given the continued
uncertainty with respect to SCA's remaining mortgage-related
exposures and currently impaired franchise.

The confirmation of SCA's shelf and preference share ratings
(with a negative outlook) reflects the positive overall capital
adequacy implications associated with the Master Agreement and
Merrill Agreement and resulting upward pressure on the insurance
financial strength ratings.  However, in Moody's opinion, the
credit profile of the holding company has not benefited to the
same degree.

The change in the direction of the rating review on Twin Reefs,
to review with direction uncertain, from review for possible
downgrade, reflects the potential for upward rating pressure
based on the improvement in the credit profile of the trust's
underlying securities (SG Re Series B preference shares), as
well as the possibility that dividends on these underlying
securities could be omitted at some future date, which could
result in a downgrade from the current Caa2 rating.

The rating agency stated that SCA has announced that it expects
to record significant reserve charges on its mortgage-related
exposures during 2Q2008, including both second-lien RMBS and ABS
CDOs.  This reserving activity will result in both SG and SG Re
reporting negative statutory capital at quarter-end.  However,
the transactions contemplated by the Master Agreement and the
Merrill Agreement will result in the companies having positive
statutory capital and result in a significant improvement in
their capital adequacy positions, in Moody's opinion.  In
addition, SCA has announced it has commuted its outbound
reinsurance with RAM Reinsurance Company Ltd and a portion of
inbound reinsurance with Financial Security Assurance Inc. (the
remainder of which will be moved from SG Re to SG).  SCA has
also earmarked US$820 million for the purpose of commuting,
terminating, amending or restructuring existing agreements with
certain CDS bank counterparties who have signed the Master
Agreement.

Moody's stated that the ratings review will focus on:

1) the risk-adjusted capital adequacy positions of SG and SG Re;
2) further clarity with respect to future preferred share
   dividend policy and capacity; and
3) an assessment of SCA's franchise value and future business
   prospects.

With respect to SCA's commutation agreement with Merrill,
Moody's stated that the negotiated settlement has some elements
that are typically associated with a distressed exchange, though
such a determination is ultimately a matter of judgment, and
depends on the specific circumstances of the guarantor as well
as the amount of the settlement compared to the economic value
of the hedge.  Based on Moody's evaluation of these exposures,
the settlement amount represents a significant discount to the
capital charges applied in our model.

                   List of Rating Actions

The following ratings have been placed on review for possible
upgrade:

   -- Syncora Guarantee Inc. -- insurance financial strength at
      B2;

   -- Syncora Guarantee (U.K.) Ltd. -- insurance financial
      strength at B2; and

   -- Syncora Guarantee Re Ltd -- insurance financial strength
      at B2.

The following ratings have been confirmed with a negative
outlook:

   -- Syncora Holdings Ltd. -- provisional rating on senior debt
      at (P)Caa3, provisional rating on subordinated debt at
     (P)Ca and preference shares at Ca.

The following rating has been placed on review with direction
uncertain:

   -- Twin Reefs Pass-Through Trust -- contingent capital
      securities at Caa2.

Syncora Holdings Ltd. (formerly Security Capital Assurance Ltd.)
is a Bermuda-domiciled holding company whose primary operating
subsidiaries, Syncora Gurantee Inc. (formerly XL Capital
Assurance Inc.) and Syncora Guarantee Re Ltd. (formerly XL
Financial Assurance Ltd.), provide credit enhancement and
protection products to the public finance and structured finance
markets throughout the United States and internationally.


SYNCORA HOLDINGS: Closes XL Capital & Merrill Lynch Transactions
----------------------------------------------------------------
Syncora Holdings Ltd. disclosed the closure of the formerly
reported transactions with XL Capital Ltd. pursuant to the
Master Commutation, Release and Restructuring Agreement of
July 28, 2008, and the related transactions intended to close
concurrently with the XL transaction.  The company also reported
that the transaction with Merrill Lynch & Co., Inc. pursuant to
the agreement with Merrill Lynch dated July 28, 2008, also
closed.  In addition, the waivers and related transactions under
the company's Credit Agreement Amendment with its lenders,
described in the company's press release of July 28, 2008, went
into effect as of Aug. 5.

In conjunction with the closing of the transaction with XL
Capital and as contemplated by the Master Transaction Agreement,
the following members of Syncora Holdings' Board of Directors
have resigned: Fred Corrado, Paul E. Hellmers, Gardner L. Grant,
Jr., and Jonathan F. Bank.

                Second Quarter Results Announcement
                   and Investor Conference Call

Separately, the company announced that it will release its
second quarter 2008 results after the close of regular stock
market hours on Aug. 11, 2008.

Paul S. Giordano, President and Chief Executive Officer, Syncora
Holdings; Edward B. Hubbard, Executive Vice President, Syncora
Holdings and President of Syncora Guarantee Inc.; and Elizabeth
A. Keys, Senior Vice President and Chief Financial Officer,
Syncora Holdings, will host an earnings conference call to
discuss Syncora Holdings' second quarter 2008 results on
Aug. 12, 2008, at 8:30 am Eastern Daylight Time (EDT).

                      About Syncora Holdings

Syncora Holdings Ltd., formerly Security Capital Assurance Ltd.,
is a Bermuda-domiciled holding company whose primary operating
subsidiaries, XL Capital Assurance Inc. and XL Financial
Assurance Ltd, provide credit enhancement and protection
products to the public finance and structured finance markets
throughout the United States and internationally.  SCA has
announced that it will formally change its corporate name to
Syncora Holdings Ltd. on Aug. 4, 2008.  XLCA and XLFA will be
renamed Syncora Guarantee Inc. and Syncora Guarantee Re Ltd,
respectively.

                         *      *      *

As reported in the Troubled Company Reporter-Latin America on
Aug. 1, 2008, Moody's Investors Service placed these ratings
Security Capital Assurance Ltd. under review for possible
downgrade: (P)Caa3 provisional rating on senior debt, (P)Ca
provisional rating on subordinated debt, and Ca rating on
preference shares.

In August 2008, Fitch Ratings downgraded these ratings on
Security Capital Assurance Ltd. and its financial guaranty
insurance subsidiaries and placed all ratings on Rating Watch
Evolving:

  -- Long Term Issuer Rating to 'CCC-' from 'B-';
  -- US$250 million Fixed/Floating Series A Perpetual
     Non-cumulative Preference Shares to 'CCC-' from 'CCC'.

TCR-Latin America reported on July 31, 2008, that Standard &
Poor's Ratings Services said its 'C' long-term credit rating on
Security Capital Assurance Ltd. remains on CreditWatch with
negative implications.


STORE TO DOOR: Appoints Liquidators from Vantis
-----------------------------------------------
G. Mummery and D. C. Wilson of Vantis Business Recovery Services
were appointed joint liquidators of Store To Door Group Ltd. on
July 25, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         Store To Door Group Ltd.
         c/o Vantis Business Recovery Services
         43-45 Butts Green Road
         Hornchurch
         Essex
         RM11 2JX
         England


* IMF Cuts the United Kingdom's 2008 Growth Forecast to 1.4%
------------------------------------------------------------
The Executive Board of the International Monetary Fund concluded
on July 30, 2008, the Article IV consultation with the United
Kingdom.

                           Background

Economic growth was above trend in 2006 and 2007.  In terms of
expenditure, the expansion was largely driven by private
consumption, on the heels of strong employment, steady real wage
and living standards growth, and a surge in immigration.
Compressed global credit market spreads, loosening credit
conditions and a resulting expansion of household debt,
alongside the decade-long housing boom provided additional fuel.
Concurrently, investment was boosted by a low cost of capital
and high corporate profitability.  And notwithstanding favorable
export market growth, the current account deficit reached 4 1/4
percent by 2007, a 3 percentage point worsening since 2003.  The
real effective exchange rate also appreciated by about 10
percent from 2006 through mid-2007.

With slack diminishing, inflation began to rise, prompting the
initiation of a tightening cycle by the Bank of England.  Still,
rising commodity and services prices led CPI inflation to rise
above 3 percent in March 2007, requiring the first explanatory
open letter from the governor to the chancellor since the
inauguration of the regime a decade earlier.  During this
period, the fiscal deficit remained high, with a structural
tightening in 2005 reversed in 2006.

In the second half of 2007, the U.K. faced two new international
shocks—the disruption to global financial markets and the sharp
acceleration of the upward trend in world food and fuel prices.
The combined effects of these shocks raised uncertainty,
increased inflation risks on both sides, and compounded the
ongoing correction in the domestic housing market.  A run on
Northern Rock, a medium-sized mortgage lender, raised the
specter of financial stability weakness feeding through to the
real sector.

Reflecting the disinflationary impact of expected output
weakness, the monetary tightening cycle ended and the Bank of
England lowered the bank rate by a cumulative 75 basis points
(to 5 percent) in three steps from December 2007.  The 2008
budget set a neutral fiscal stance, allowing full operation of
automatic stabilizers.  Since August 2007, the real effective
exchange rate has depreciated by more than 10 percent, in line
with monetary loosening, but also reflecting a reassessment of
U.K.  risk.  And aided by lower outflows from foreign owned
banks, the current account deficit fell toward the end of 2007.

So far in 2008, evidence points to a sharp slowing in activity
alongside high inflation.  Second quarter growth was weak,
forward looking indicators are gloomy, sterling money market
spreads remain elevated, unemployment has edged up, and house
prices are falling rapidly.  Accordingly, real GDP growth is
projected to be 1.4 percent in 2008, falling to 1.1 percent in
2009.  Inflation rose to 3.8 percent in June, on account of food
and fuel price developments.  And while there is scant evidence
of second-round effects, as wages remain subdued, indicators of
long-run inflation expectations have risen further.

Executive Board Assessment

Executive Directors agreed with the thrust of the staff
appraisal.  They observed that, following a decade of sustained
strong economic performance, including stable economic growth
and low inflation, the U.K. economy is now facing several
concomitant shocks.  The strong policy frameworks and structural
reforms that have underpinned this remarkable performance will
be tested by lower growth, higher inflation from food and fuel
price increases, ongoing strains in financial markets, rapid
housing price reversals, and medium-term external imbalances.
The financial sector strains have also triggered a broad-based
effort to reform the financial stability framework.

In this difficult context, Directors noted that the authorities'
inflation target of 2 percent will be exceeded for an extended
period.  In addition, the public net debt ceiling of 40 percent
of GDP is likely to be breached.  Rising long-term inflation
expectations have added to the importance for fiscal and
monetary policies to play their part in safeguarding the
credibility of the nominal framework.

Directors welcomed the commitment made in the 2008 budget to
tighten fiscal policy in the coming two years.  Directors saw no
room for slippages in the current fiscal year.  A number of
Directors recommended a stronger-than-planned fiscal stance for
2009 and beyond to support medium-term fiscal sustainability and
help build headroom for full operation of automatic stabilizers.
A stronger fiscal stance would also help address external
imbalances.  Some Directors favored a somewhat more gradual
adjustment as planned given short-term output concerns.

Directors generally considered that any revision to the fiscal
framework should enhance its credibility.  They recommended that
the net public debt ceiling of 40 percent of GDP be retained.
Should it be breached, they called for concrete and frontloaded
plans to bring debt back below the ceiling.  Some Directors
argued that the elevation of the status of nominal expenditure
ceilings within the current fiscal framework would enhance its
credibility.  Some Directors suggested that any revision of the
fiscal rules should strengthen consistency with the Stability
and Growth Pact.

Directors agreed that monetary policy has been appropriately
focused on stemming second-round effects from the food and fuel
terms of trade shocks.  Given the outlook for inflation and the
stance of fiscal policy, Directors saw little scope for monetary
easing at present.  Directors considered that the current
inflation-targeting framework contains sufficient flexibility in
the target horizon and definition to accommodate the ongoing
terms of trade shocks.

Directors noted that sterling has moved towards its equilibrium
value, but remains on the strong side.  This could adversely
affect export growth, and underscores the case for improving the
mix of policies to rebalance demand toward the external sector.
Some Directors also stressed the need to enhance productivity.

Directors welcomed the ongoing efforts to stabilize financial
markets, including the introduction of the Special Liquidity
Scheme.  They noted that further capital-raising and information
disclosure initiatives by financial institutions would boost
confidence in the financial system.  With regard to the
financial stability framework, Directors praised the
thoroughness of efforts to diagnose and resolve the problems
illuminated by recent market tension.  They welcomed the close
tripartite cooperation among the Bank of England, the Financial
Services Authority, and the Treasury, and the openness of the
consultation process.  This process has correctly highlighted
the need for a special bank resolution regime, a statutory role
of the Bank of England in the financial stability framework, and
strengthened operations of the Financial Services Authority.  In
addition, Directors agreed that success of the special
resolution regime will require full clarity and accountability
within the tripartite structure.


* S&P Says EEMEA Utilities to Face Economic Challenges Ahead
------------------------------------------------------------
In a published report titled, "After Strong Performance, Will
EEMEA Utilities Withstand The Coming Challenges?", Standard &
Poor's Ratings Services said that the overall rating performance
of utilities in Eastern Europe, Middle East, and Africa (EEMEA)
has been positive since October 2007.  The outlook for ratings
performance over the next one-two years is, however, clearly
less favorable.

"We have upgraded four issuers on the back of mergers and
acquisitions, parental support, and strong performance in 2007
-- and there have been no downgrades," said S&P's credit analyst
Eugene Korovin.

Three of the four upgrades were from speculative grade to
investment grade, so that now 14 out of the 23 utilities in
S&P's rated EEMEA portfolio have investment grade ratings of
'BBB-' or above.

Since October 2007, there have been several downward outlook
revisions and CreditWatch placements with negative implications,
which tilt the balance of rating outlooks to negative.  This
reflects the significant challenges faced by a number of
companies in S&P's portfolio, which may put pressure on the
ratings in the short to medium term.

Key challenges ahead include worsening macroeconomic
environments and increasing input cost inflation due to
significant increases in the cost of oil and gas, which in a
number of cases has not been passed through in end-user tariffs.
Government-led sector restructuring, which may be credit-
dilutive, increasing investments, and more difficult access to
liquidity resulting from ongoing credit crunch, will also test
many of the companies' mettle.

Although compared with other economic sectors, utilities are
relatively well positioned to withstand macroeconomic
challenges, sector-specific risks such as restructuring,
increasing investments to ensure secure energy supplies, and
mounting fuel costs that cannot be passed through in tariffs in
a timely manner may put some pressure on the sector's credit
quality.


* Consumer Spending Downturn to Hit UK Retail & Leisure Sectors
---------------------------------------------------------------
Consumers are feeling increasingly worse off on a month-by-month
basis as their disposable income dwindles, according to new
research by PricewaterhouseCoopers LLP.

Consumers are clearly getting more nervous, with consumer
spending growth predicted to slow to just 0.5% in 2009.  Nearly
60% of consumers surveyed by PricewaterhouseCoopers last month
think their household will be worse off in the next 12 months.
This is a clear deterioration since the PricewaterhouseCoopers
April survey when 37% of consumers surveyed thought they would
have less disposable income (money remaining after household
bills and credit card payments) in the next year.

As a recession becomes more likely, many observers are looking
back to the early 1990s to help predict what might happen.
However is that a good benchmark?  Since the downturn of the
1990s certain categories of consumer spending have shifted from
being "discretionary" to "essential", such as eating out,
holidays and mobile phones– i.e. would today's consumers stop
spending in these areas if their income was squeezed?  At the
same time some elements of consumer spend may have become more
discretionary in nature, for example clothes shopping (because
of "fast fashion") and grocery shopping (e.g. premium ranges in
supermarkets).  These shifts, combined with structural changes
in the market mean that things could be quite different this
time round.

Olivia Gillan, retail partner in the strategy group,
PricewaterhouseCoopers LLP, commented:

"The performance of certain retailers and categories during the
1990s recession gives an indication of the winners and losers of
the current downturn.  However a lot has changed over the last
15 years.  New 'value' players have emerged, additional space
has been added, and consumers have been spending more on
discretionary items –- treating themselves to luxury ready
meals, or snapping up a cheap catwalk copy top only to throw it
away after a couple of uses.  As a result, some sectors will be
hit differently this time around."

Consumer Sentiment is Worsening

The downturn is hitting those who are less well-off harder.  The
most pessimistic groups in the survey were lower income groups
and older consumers –- they have less spare cash and are being
hit particularly hard by food price and utility bill increases.
Nearly seven in ten DE respondents think their household will be
worse off -- of which three in ten think they will be much worse
off and seven in ten consumers over 65 think they will be worse
off in the next 12 months.  However younger age groups seem to
think that their household income is more resilient, with 26% of
18-24 year olds thinking that they will be better off –- maybe
they are just too young to remember the last recession?

As consumer spending tightens, the proportion spent on
discretionary categories within the leisure and retail sectors
is likely to decline.  PwC is already seeing consumer belt-
tightening, evidenced by the recent flurry of profit warnings,
worse than expected trading statements and a 28% rise in retail
administrations.  Its survey shows that consumers are already
starting to change their behavior.  35% of consumers have been
shopping less often in the last six months:

     * 28% have delayed buying furniture;

     * 25% have bought more from friends, or items that are
       second-hand e.g. from Ebay;

     * 16% have bought fewer designer products.

This Time Versus Last Time

In the early 1990s, the sectors impacted the most, seeing the
deepest and longest declines, were big ticket items where
purchases can be delayed (e.g. cars and appliances) and
discretionary sectors where consumers can reduce consumption or
switch to cheaper alternatives (e.g. restaurants and air
travel).  Similar overall dynamics are expected in any potential
downturn now, with big ticket and discretionary sectors expected
to be the most impacted.  According to the PwC survey, consumers
claim that if forced to cut spending, they would particularly
cut back on eating out, holidays, electrical goods and clothing
over the coming year:

    * 43% would cut back on eating out and takeaways;

    * 30% would cut back on short breaks as well as their main
      holiday;

    * 37% say they would cut back on electrical goods, and 28%
      say furniture;

    * 33% say they would cut back on clothes, shoes and
      accessories and 36% say designer labels.

Grocery

The impact of the early 1990s recession on the grocery sector
was very limited.  However, since then grocery purchasing has
arguably become more discretionary as people have treated
themselves by trading up to supermarkets' "finest" or "best"
ranges.  As a result, this time round, the sector could be hit
harder if consumers rein in their spend by cutting out
unnecessary luxuries and trading down to cheaper value lines and
promoted items in store.  This is reflected in the PwC survey:

    * 58% said they would buy fewer items;
    * 57% said they would buy more on sale;
    * 51% said they would buy cheaper alternatives.

The other big difference is that the likes of Aldi, Lidl and
Netto now make up nearly 6% of the grocery market -– they simply
weren't around in the early 1990s.  This could hit the major
supermarkets if consumers start doing more of their shopping in
these outlets –- the survey suggests 34% of consumers would plan
to switch to a cheaper supermarket.

Clothing

The last recession had a relatively limited impact on consumers'
spend on clothing.  But clothing spend is arguably more
discretionary now and the sector could therefore be hit worse
than in the early 1990s.  Price deflation, together with the
craze for fast/disposable fashion started by the likes of Zara
and Topshop, and buoyed by magazines like Grazia, has driven
growth in volumes as consumers have stocked up on cheap catwalk
copies to be worn a few times and then thrown away.  They have
been buying new clothes, not because they needed them, but just
because they could.  If times get really tough, consumers could
cut back on these very discretionary purchases and this is
reflected in the PwC survey:

    * 49% said they would buy fewer items
    * 35% said they would buy more clothes in the sale and
    * 31% said they would buy clothes less often

Since the early 1990s, significant space for clothing retail has
been added as supermarkets and department stores have extended
their clothing ranges, fashion specialists have rolled out more
stores and new chains have emerged.  Particularly significant
has been the development and growth of value retailers like
Primark, Peacocks and TK Maxx -- there were no value retailers
in the top ten womenswear retailers in 1990 but there are five
now.  As a result, this means that life for mid-market clothing
retailers is likely to be tougher this time round.
Unsurprisingly, the survey reflects that: 29% of respondents
said they would buy from cheaper places if they had to cut their
spend.

Olivia Gillan, retail partner in the strategy group,
PricewaterhouseCoopers LLP, concluded:

"Many retailers and leisure operators succeeded in growing
through the early 1990s.  Then, as now, key to success is a
differentiated proposition, a focus on offering consumers value
for money, and continued management focus.  The downturn should
not be an excuse for retailers to stop investing for the future;
it can be an opportunity to restructure or pause for breath.
It's about the survival of the fittest."

PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--
provides auditing services, accounting advice, tax compliance
and consulting, financial consulting and advisory services to
clients in a variety of industries.


* UK Pension Funds Has GBP41BB Net Deficit in Mid-July, LCP Says
----------------------------------------------------------------
Lane Clark & Peacock LLP estimates that under the accounting
standard IAS19 the aggregate FTSE 100 U.K. pension deficits and
surpluses stood at an overall deficit of GBP41 billion as at
mid-July 2008, in stark contrast to an aggregate GBP12 billion
surplus in July 2007.

The aggregate position oscillated wildly throughout the year,
reaching a high point of a GBP19 billion surplus at the end of
November 2007, before falling back to a GBP41 billion deficit in
mid-July 2008.  Extreme volatility, therefore, is a key issue
for both the company and pension fund balance sheets.

During 2008, the financial conditions driving surpluses and
deficits have been brutal.  Over the period from Jan. 1, 2008,
LCP estimates that the overall funding position of FTSE 100
companies under IAS19 has suffered from the effects of first,
equity market falls wiping off around GBP33 billion from scheme
assets and second, new and severe market fears over rising
inflation adding around GBP50 billion to scheme liabilities – a
combined and unprecedented "double whammy" of GBP83 billion.

At the same time, companies have benefited from one significant
consequence of the credit crunch, namely the sharp rise in
yields on corporate bonds (IAS19 requires companies to discount
future pension liabilities using such yields).  LCP estimates
that the rise in bond yields since Jan. 1, 2008 will have
reduced IAS19 liabilities by around GBP40 billion – enough to
offset almost half of the huge losses arising from equity market
falls and rising inflation.

Bond yields peaked in late March, enabling companies with March
reporting dates to report smaller pension liabilities than if
they had used current bond yields.  14 of 23 companies reporting
in late March disclosed surpluses, totaling GBP5.9 billion.  In
the light of the subsequent fall in bond yields, equity market
falls and increasing fears over inflation, LCP estimates that
those 14 companies have suffered aggregate pension losses of
almost GBP13 billion since March, with estimated deficits now
totaling around GBP7 billion.

Company contributions were again significant during the year
(reported as GBP13.1 billion for 2007, down slightly from last
year’s record of GBP13.4 billion).  However, they had relatively
little impact on overall deficits given the sheer scale of
movements in equity and corporate bond markets, and the impact
of inflation expectations.

Lane Clark & Peacock LLP -- http://www.lcp.uk.com/-- is a
partnership of consulting actuaries, established in 1947.  The
firm has 85 partners and principals and a team of more than 450
employees in 8 offices across Europe (London, Winchester,
Jersey, Brussels, Zurich, Basel, Utrecht and Dublin). It
specializes in providing their clients with practical, bespoke
and robust solutions, covering corporate pensions, strategic
investment advice, general insurance and specialist financial
services including risk appraisal, business modeling and
valuations.


* BOOK REVIEW: American Express
-------------------------------
Title: American Express:
       The People Who Built the Great Financial Empire
Author:     Peter Z. Grossman
Publisher:  Beard Books
Hardcover:  420 pages
List Price: US$34.95

Own your personal copy at
http://amazon.com/exec/obidos/ASIN/1587982838/internetbankrupt

American Express: The People Who Built the Great Financial
Empire by Peter Z. Grossman is the inside story of how a major
corporation prevailed to reach worldwide success.

This fascinating book reveals the inside story of one of the
best-known and most influential corporations in the world.  It
is not just the history of a company, but of a business.

The American Express Company is a consummate example of
corporate success and endurance.

The book will prove informative for all interested in the world
of business, and it will reinforce the notion that fact can be
more engrossing than fiction.


                            *********

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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