TCREUR_Public/080901.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

            Monday, September 1, 2008, Vol. 9, No. 173

                            Headlines

B E L G I U M

FEDERAL-MOGUL: Shows Stability Amid Auto Sales Slump
PORTOLA PACKAGING: Files for Bankruptcy, Gets US$79MM DIP Facility
PORTOLA PACKAGING: Case Summary & 20 Largest Unsecured Creditors


G E R M A N Y

CLEAR CONSULTUNG: Claims Registration Period Ends September 8
DACHDECKEREI BROICH: Claims Registration Period Ends September 8
EMOS COMPUTER: Claims Registration Period Ends September 8
IMB VERFAHRENSTECHNIK: Claims Registration Period Ends Sept. 7
JK-OUTLET GMBH: Claims Registration Period Ends September 8

KARTOON GASTRO: Creditors Meeting Slated for September 8
KUHN & CIE: Creditors' Meeting Slated for September 8
LUCKY JOKER: Claims Registration Period Ends September 6
MARKGRAFENPARK GMBH: Creditors Meeting Slated for September 8
MI CADO: Claims Registration Period Ends September 8

MUEHL PRODUCT: Claims Registration Period Ends September 8
NIMBUS INNOVATIONS: Claims Registration Period Ends September 8
NKG GRUNDSTUECKS: Creditors Meeting Slated for September 8
SCHWEINFURTER SCHALUNGSBAU: Claims Registration Ends September 8
SCHWERINER ISOLIERTECHNIK: Claims Registration Ends September 8

SERITECHNICA GMBH: Claims Registration Period Ends September 8
UNIVERSAL FASHION: Claims Registration Period Ends September 8

* German RMBS Market Stable But Incurs Some Losses, S&P Reports


H U N G A R Y

HUNGARIAN TELEPHONE: Posts US$27.8 Million Net Loss for 2Q 2008
HUNGARIAN TELEPHONE: S&P Affirms B+ Rating, Shifts Outlook to Neg.

I R E L A N D


ELVA FUNDING 2007-3: Fitch Cuts Rating on Class D Notes to BB+


I T A L Y

ALITALIA SPA: Italy Amends Bankruptcy Law to Fit Company's Rescue
ALITALIA SPA: Passenger Traffic Rise at Fiumicino, Linate Airports


N E T H E R L A N D S

GTB FINANCE: Fitch Rates US$2BB Medium-Term Note Program at B+
MARYLEBONE ROAD: Fitch Puts Class A-3 Notes' BB Rating on WatchNeg


R U S S I A

SISTEMA JSFC: Seeks Approval to Acquire SkyLink
SISTEMA JSFC: S&P Raises Corporate Credit Rating to BB From BB-


VIMPEL-COMMUNICATIONS: Earns US$470.16 Mln for Second Quarter 2008

S W I T Z E R L A N D


RESTAURANT BAR: Proofs of Claim Filing Deadline is Sept. 21
SEPP WALKER: Creditors' Proofs of Claim Due by Sept. 22
SIBARITA JSC: Sept. 24 Set as Deadline to File Proofs of Claim
V. B. & PARTNERS: Creditors Must File Claims by Sept. 24


U N I T E D   K I N G D O M

A E COCKING: Claims Filing Period Ends December 15
BRADSHAW & CO: Appoints Steven Draine as Liquidator
COLOURPRINT UK: Brings in Liquidators from Deloitte & Touche
EDUCATION CENTRE: Appoints Liquidators from Vantis
FENN ENGINEERING: Calls in Liquidators from BDO Stoy Hayward

LEHMAN BROTHERS: To Slash Up to 6% of Workforce
MARTINS MINI: Brings in Joint Administrators from Tenon Recovery
BHM HEALTH: Calls in Joint Administrators from BDO Stoy Hayward
CLEEVE OF LONDON: Goes Into Liquidation; 39 Jobs Affected
DOUGHBOYS BAKERIES: Taps Tenon Recovery to Administer Assets

ELLIOTT SARGEANT: Appoints Administrators from Tenon Recovery
FGIC INC: US$184BB in Insured Muni Bonds to Be Reinsured by MBIA
INGENIOUS MUSIC: Appoints Joint Liquidators; Suspends Shares
JET 1: Fitch Cuts Rating on EUR500 Mil. Notes to BB+, Removes RWN
JET 2: Fitch Cuts Rating on EUR50 Mil. Notes to BB, Removes RWN

NOON LTD: Taps Joint Administrators from Tenon Recovery
REED PRINT: Goes Into Administration; 148 Jobs Affected
SANDY MCCRACKEN: Calls in Liquidators from MLM Insolvency
WINDERMERE VII: S&P Affirms BB Rating on Class F CMBS Notes
ZOOM AIRLINES: Goes Into Administration; Suspends Operations

* Emerging Europe Economic & Credit Outlook Worsening, Fitch Says
* S&P Reports Portuguese RBMS Index Up 0.86% in 2nd Quarter 2008

* BOND PRICING: For the Week Aug. 25 to Aug. 29, 2008


                         *********


=============
B E L G I U M
=============


FEDERAL-MOGUL: Shows Stability Amid Auto Sales Slump
----------------------------------------------------
Analyst at rating agency, Standard & Poor's said autoparts
supplier, Federal-Mogul Corp., is unlikely to follow its peers
into bankruptcy, Bloomberg News related.

Recently, autoparts supplier Cadence Innovation LLC and Intermet
Corp. filed for Chapter 11 bankruptcy, joining other auto
suppliers Progressive Molded Products, Inc., Plastech Engineered
Products, Inc., and Blue Water Automotive Systems, Inc., which
filed for bankruptcy earlier this year.  Grant Thornton LLP said
in a report dated August 8, 2008, that as many as a third of
North American autoparts supplier, including closely hedl firms,
are at risk for bankruptcy.  However, Nancy Messer, an analyst at
S&P, told Bloomberg that Federal-Mogul won't be joining them.

Federal-Mogul is one of the few companies in this sector with a
stable outlook, Ms. Messer told Bloomberg.  S&P gives
Federal-Mogul a BB- corporate credit rating.

Fund managers echoes Ms. Messer's confidence in Federal-Mogul.
According to Bloomberg, Federal-Mogul is "well-positioned" given
the fact that the company gets more than a third of its revenues
and most of its profits from selling replacement items like
Champion spark plugs and because 60% of the company's business is
outside the United States, exposing it to faster-growing
economies.

Federal-Mogul's overall business strategy -- from heavily
investing in its aftermarket business, to expanding outside the
auto industry, and improving fuel efficiency for its autoparts
supplies -- contributes to the company's stability amidst the
current automotive sales slump, Bloomberg said.  The news agency
said that Federal-Mogul gets 39% of its 2007 revenue from its
aftermarket business and is in negotiations with a Chines
wind-turbine manufacturer.  The report cited that Federal-Mogul's
competitors in the auto industry are more at risk to bankruptcy
because they have no significant aftermarket business.

The 11% decline in U.S. auto sales this year through July, higher
raw materials costs, and the credit crisis are weighing on
U.S.-based partsmakers, Bloomberg said.  Annual vehicle sales may
fall to 14,200,000 units, the lowest since 1993, according to
J.D. Power & Associates, a Westlake Village, California-based
market research firm, Bloomberg added.

Robert Goodman, an analyst at CRT Capital Group, recommends a buy
for Federal-Mogul's common stock.  George Putnam, publisher of
the Turnaround Letter and fund-manager of New Generation
Advisers, Inc., thinks Federal-Mogul stock "is cheap right now."

As of August 26, 2008, Federal-Mogul's common stock trades at
US$16.53 per share.

Billionaire Carl Icahn owns 74.8% of Federal-Mogul's common
stock.  The stake is valued at approximately US$1,242,000,000.
UBS
bought a 5.7% stake in the three months ended June 30, while
Solus Alternative Asset Management LP bought a 2.6% stake in the
second quarter.  TIAA-CREF, the biggest U.S. pension-fund
manager, owned 2.1% as of June 30.

"Icahn's involvement draws interest," Mr. Putnam told Bloomberg.
Mr. Icahn purchased two-thirds of his holdings, 50,100,000
shares, for US$900,000,000, or US$17.96 each, on Feb. 25, 2008.
Bloomberg said those shares have lost 9.3% of their value,
costing Icahn US$83,700,000 on paper.  The rest of his stake was
acquired in an exchange of debt while the company was in
bankruptcy.

Analysts, according to Bloomberg, said Federal-Mogul's stocks may
recover to US$26 per share at the end of the year.  If that
happens, Mr. Icahn's shares will be valued to US$1,950,000,000.

                      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, Belgium, Russia, 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; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


PORTOLA PACKAGING: Files for Bankruptcy, Gets US$79MM DIP Facility
----------------------------------------------------------------
Portola Packaging, Inc. filed a voluntary Chapter 11 petition to
reorganize before the United States Bankruptcy Court for the
District of Delaware.

In connection with the filing, the company confirmed that all of
its secured lenders and holders of approximately 90% in aggregate
principal amount of its 8-1/4% Senior Notes due 2012 agreed to a
voluntary and consensual restructuring of the company pursuant to
the restructuring support agreement dated July 24, 2008.  Pursuant
to the proposed plan of reorganization, holders of the Senior
Notes will receive 100% of the common stock of reorganized Portola
in exchange for their claims.

Wayzata Investment Partners LLC is expected to be the company's
controlling shareholder upon its emergence from bankruptcy.  The
company's plan of reorganization will reduce its long term debt
obligations by US$180 million.  The company anticipates completing
its pre-packaged reorganization and emerging from Chapter 11 in
mid-October, 2008.

Under the restructuring plan, all obligations owed to trade
creditors, suppliers, customers and employees in the ordinary
course of business will be unimpaired and unaffected by the
restructuring.

The company reached agreement with its existing secured lenders
to provide the Company with debtor-in-possession financing of
US$79 million to pay off the outstanding indebtedness under the
company's existing secured facilities and to finance its ongoing
operations.

The company said that its president and chief executive officer,
Brian Bauerbach, and its chief financial officer, John LaBahn, and
its general counsel, Kim Wehrenberg, have been appointed as the
sole directors of the company and will oversee the restructuring.

"We are pleased to have achieved such strong support for a
consensual restructuring that dramatically improves our balance
sheet, reduces our annual cash interest obligations by
approximately US$15 million, and enables continued reinvestment in
our products and future growth," Mr. Bauerbach stated.  We are
thrilled to have the continued support of Wayzata and look forward
to its long term commitment to the business."

In conjunction withe Chapter 11 filing, the company is seeking
approval for a variety of first day motions that will allow it to
continue to manage operations in the ordinary course.  The motions
include requests to make wage and salary payments and other
benefits to employees and to pay critical vendors, suppliers,
trade creditors and certain other pre-petition trade claims.

A full-text copy of the company's restructuring term sheet date
July 24, 2008, is available for free at:

               http://ResearchArchives.com/t/s?3168

A full-text copy of the company and lenders' restructuring support
agreement is available for free at:

               http://ResearchArchives.com/t/s?3169

Headquartered in Batavia, Illinois, Portola Packaging Inc. --
http://www.portpack.com/-- designs, manufactures and markets
tamper-evident plastic closures used in dairy, fruit juice,
bottled water, sports drinks, institutional food and other non-
carbonated beverage markets.  The company also produces a wide
variety of plastic bottles for use in dairy, water and juice
markets, including various high density bottles, as well as five-
gallon polycarbonate water bottles.  In addition, the company
designs, manufactures and markets capping equipment for use in
high speed bottling, filling and packaging production lines.
Portola is also engaged in the manufacture and sale of tooling and
molds used for blow molding.  The company has locations in China,
Mexico and Belgium.

                             *   *   *

As reported in the Troubled Company Reporter on July 31, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Portola Packaging Inc. to 'D' from 'CCC-'.  In addition,
S&P lowered the senior unsecured ratings to 'D' from 'C'.  The
downgrades follow Portola's announcement that it is restructuring
its capital structure through a prepackaged Chapter 11 bankruptcy
filing.  Before the default, the rating on Portola's US$180
million 8.25% senior unsecured notes was two notches below the
corporate credit rating and the recovery rating was '6',
indicating the expectation for negligible (0% to 10%) recovery in
the event of a payment default.


PORTOLA PACKAGING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Portola Packaging, Inc.
        aka Cap Snap
        aka NEPCO
        aka Consumer Cap
        aka Nepco
        aka Allied Tool
        951 Douglas Road
        Bativia, IL 60510

Bankruptcy Case No.: 08-12001

Debtor-affiliates filing separate Chapter 11 petitions:

        Entity                                   Case No.
        ------                                   --------
  Great Lakes Sales Associates, LLC              08-12002
  Northern Engineering and Plastics Corporation
    (Delaware)                                   08-12003
  Northern Engineering Plastics Corporation
    (Puerto Rico)                                08-12004
  Northern Engineering Plastics Corporation -
    Puerto Rico (Pennsylvania)                   08-12005
  Portola Allied Tool, Inc.                      08-12006
  Portola Tech International, Inc.               08-12007

Type of Business: The Debtors designs, manufactures, and markets a
                  full line of tamper-evident plastic closures,
                  bottles, and equipment for the beverage and food
                  industries, as well as plastic closures and
                  containers for the cosmetics industry.
                  See http://www.portpack.com/

Chapter 11 Petition Date: August 27, 2008

Court: District of Delaware (Delaware)

Judge: Christopher S. Sontchi

Debtors' Counsels: Young, Conaway, Stargatt & Taylor
                   Edmon L. Morton, Esq.
                   Robert S. Brady, Esq.
                   Sean T. Greecher, Esq.
                   The Brandywine Building
                   1000 West Street, 17th Floor
                   P.O. Box 391
                   Wilmington, DE 19899
                   Tel: (302) 571-6600
                   Fax: (302) 571-1253
                   Email: bankfilings@ycst.com

Estimated Assets: US$50 million to US$100 million

Estimated Debts:  US$100 million to US$500 million

Debtors' consolidated list of their 20 Largest Unsecured
Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
U.S. Bank National Association   Notes             US$180,000,000
60 Livingston Avenue                               (Aggregate
St. Paul, MN 55107-2292                             principal
                                                    amount)

SACMI IMOLA                      Trade Creditor      US$1,056,895
Via Selice Provencial, 17/A
40026 Imola Bo Italy
Casella Postale 113 Italy

KDV (1006)                       Trade Creditor        US$307,142
431 W. Newhall Avenue
Waukesha, WI 53186

Packaging Corp. of America       Trade Creditor        US$164,097

Hoffer Plastics Corp.            Trade Creditor        US$160,467

Foreco SRL                       Trade Creditor        US$135,766

Unipac Corp.                     Trade Creditor        US$113,831

Rite Systems Inc.                Trade Creditor        US$108,783

City of Batavia                  Utility                US$96,935

Much Shelist                     Trade Creditor         US$96,713

Riverdale Color                  Trade Creditor         US$90,828

Bamberger Polymers, Inc.         Trade Creditor         US$75,041

D&D Custom Machine               Trade Creditor         US$71,874

Whitaker Transportation Co. Inc. Trade Creditor         US$61,473

GE Capital Freight               Trade Creditor         US$57,014

Rite Systems (Chino)             Trade Creditor         US$55,896

RBC Bearings                     Trade Creditor         US$53,525

Federal Mfg. Co.                 Trade Creditor         US$50,809

Rogers Foam Corp.                Trade Creditor         US$50,724

United Health Care Insurance     Insurance              US$44,750


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


CLEAR CONSULTUNG: Claims Registration Period Ends September 8
-------------------------------------------------------------
Creditors of Clear Consultung & Management GmbH have until
Sept. 8, 2008, to register their claims with court-appointed
insolvency manager Heinrich C. Friedhoff.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Oct. 1, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Cologne
         Meeting Hall 1240
         125th 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:

         Heinrich C. Friedhoff
         Bismarckstr. 27-29
         50762 Cologne
         Germany

The District Court of Cologne opened bankruptcy proceedings
against Clear Consultung & Management GmbH on July 30, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Clear Consultung & Management GmbH
         Attn: Inge Richert, Manager
         Boelckestrasse 77
         50171 Kerpen
         Germany


DACHDECKEREI BROICH: Claims Registration Period Ends September 8
----------------------------------------------------------------
Creditors of Dachdeckerei Broich GmbH have until Sept. 8, 2008, to
register their claims with court-appointed insolvency manager
Stefan Meyer.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on Sept. 29, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Meeting Hall 4065
         Fourth Floor
         Gerichtstr. 6
         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:

         Stefan Meyer
         Ostertorstr. 7
         32312 Luebbecke
         Germany

The District Court of Bielefeld opened bankruptcy proceedings
against  Dachdeckerei Broich GmbH on July 25, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Dachdeckerei Broich GmbH
         Attn: Marion Verbarg, Manager
         Schanzeweg 2
         32312 Luebbecke
         Germany


EMOS COMPUTER: Claims Registration Period Ends September 8
----------------------------------------------------------
Creditors of EMOS Computer Consulting have until Sept. 8, 2008, to
register their claims with court-appointed insolvency manager
Sebastian Laboga.

Creditors and other interested parties are encouraged to attend
the meeting at 3:00 p.m. on Oct. 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 Potsdam
         Hall 24
         Jagerallee 10-12
         14469 Potsdam
         Germany

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

The insolvency manager can be reached at:

         Sebastian Laboga
         Einemstrasse 24
         10785 Berlin
         Germany

The District Court of Potsdam opened bankruptcy proceedings
against EMOS Computer Consulting on July 29, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         EMOS Computer Consulting
         Lateinschulgasse 5
         94469 Deggendorf
         Germany

         Attn: Uwe Davids, Manager
         Am Plan 30
         15831 Grossbeeren
         Germany


IMB VERFAHRENSTECHNIK: Claims Registration Period Ends Sept. 7
--------------------------------------------------------------
Creditors of IMB Verfahrenstechnik GmbH have until Sept, 7, 2008,
to register their claims with court-appointed insolvency manager
Andreas Mueller-Stein.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 7, 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
         Luxemburger Strasse 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Andreas Mueller-Stein
         Schuetzenstr. 5
         50126 Bergheim
         Germany

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

The Debtor can be reached at:

         IMB Verfahrenstechnik GmbH
         Alfred-Nobel-Str. 44
         50226 Frechen
         Germany

         Attn: Karl-Erich Goeppinger, Manager
         Geranienweg 6
         52477 Alsdorf und Heinz-Peter Zilger
         Fritjoff-Nansen-Str. 3
         50226 Frechen
         Germany


JK-OUTLET GMBH: Claims Registration Period Ends September 8
-----------------------------------------------------------
Creditors of JK-Outlet GmbH have until Sept. 8, 2008, to register
their claims with court-appointed insolvency manager  Rainer
Froelich.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 2, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Meeting Hall A234
         Second Floor
         Eiland 2
         42103 Wuppertal
         Germany

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

The insolvency manager can be reached at:

         Rainer Froelich
         Vohwinkeler Str. 58
         42329 Wuppertal
         Germany
         Tel: 0202/7470430
         Fax: 0202/7470431
         Web site: www.kuebler-gbr.de

The District Court of Wuppertal opened bankruptcy proceedings
against JK-Outlet GmbH on Aug. 1, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         JK-Outlet GmbH
         Attn: Raslan Katiela, Manager
         Wartburgstr. 52
         42283 Wuppertal
         Germany


KARTOON GASTRO: Creditors Meeting Slated for September 8
--------------------------------------------------------
The court-appointed insolvency manager for Kartoon Gastro GmbH,
Dr. Petra Hilgers, will present her first report on the Company's
insolvency proceedings at a creditors' meeting at
9:10 a.m. on Sept. 8, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 9:00 a.m. on Dec. 15, 2008, at the same venue.

Creditors have until Oct. 16, 2008 to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Dr. Petra Hilgers
         Goethestr. 85
         10623 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Kartoon Gastro GmbH on July 24, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Kartoon Gastro GmbH
         Rudi Dutschke Str. 4
         10969 Berlin
         Germany


KUHN & CIE: Creditors' Meeting Slated for September 8
-----------------------------------------------------
The court-appointed insolvency manager for Kuhn & CIE Medien-,
Beratungs- & Entwicklungs GmbH, Hartwig Albers, will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 9:55 a.m. on Sept. 8, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 9:15 a.m. on Dec. 15, 2008, at the same venue.

Creditors have until Oct. 16, 2008 to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Hartwig Albers
         Luetzowstr. 100
         10785 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Kuhn & CIE Medien-, Beratungs- & Entwicklungs GmbH on Aug.
1, 2008. Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Kuhn & CIE Medien-, Beratungs- &
         Entwicklungs GmbH
         Landgrafenstr. 14
         10787 Berlin
         Germany


LUCKY JOKER: Claims Registration Period Ends September 6
--------------------------------------------------------
Creditors of Lucky Joker Spielhallen GmbH have until
Sept. 6, 2008, to register their claims with court-appointed
insolvency manager Stephan Ries.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 6, 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
         Luxemburger Strasse 101
         50939 Cologne
         Germany

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

The insolvency manager can be reached at:

         Stephan Ries
         Wall 28
         42103 Wuppertal
         Germany

The District Court of Cologne opened bankruptcy proceedings
against Lucky Joker Spielhallen GmbH on Aug. 12, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Lucky Joker Spielhallen GmbH
         Alemannenstr. 11
         42105 Wuppertal
         Germany

         Attn: Heinz Wulf, Manager
         Alemannenstr. 11
         42105 Wuppertal
         Germany


MARKGRAFENPARK GMBH: Creditors Meeting Slated for September 8
-------------------------------------------------------------
The court-appointed insolvency manager for Markgrafenpark GmbH &
Co. KG, Udo Feser, will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 10:15 a.m. on
Sept. 8, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 10:00 a.m. on Dec. 15, 2008, at the same
venue.

Creditors have until Oct. 20, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Udo Feser
         Uhlandstr. 165/166
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Markgrafenpark GmbH & Co. KG on
July 24, 2008. Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Markgrafenpark GmbH & Co. KG
         Schuetzenstr. 18
         10117 Berlin
         Germany


MI CADO: Claims Registration Period Ends September 8
----------------------------------------------------
Creditors of MI CADO Verlags- und Verwaltungsgesellschaft mbH have
until Sept. 8, 2008, to register their claims with court-appointed
insolvency manager Dr. Nikolaus Schmidt.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Oct. 6, 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 Dessau
         Hall 123
         Willy-Lohmann-Str. 33
         Dessau
         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. Nikolaus Schmidt
         Magdeburger Strasse 23
         06112 Halle
         Germany
         Tel: 0345/2311111
         Fax:0345/2311199

The District Court of Dessau-Rosslau opened bankruptcy proceedings
against  MICADO Verlags- und Verwaltungsgesellschaft mbH on July
22, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         MICADO Verlags- und Verwaltungsgesellschaft mbH
         Magdeburger Strasse 9
         06366 Koethen
         Germany

         Attn: Sven Kersten, Manager
         Karl-Windschild-Weg 25
         Germany


MUEHL PRODUCT: Claims Registration Period Ends September 8
----------------------------------------------------------
Creditors of Muehl Product & Service und Thueringer Baustoffhandel
Kontor GmbH have until Sept. 8, 2008, to register their claims
with court-appointed insolvency manager Stephan Muenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 11:40 a.m. on Oct. 7, 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 Tostedt
         Meeting Hall I
         Linden 23
         21255 Tostedt
         Germany

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

The insolvency manager can be reached at:

         Stephan Muenzel
         Bachstr. 85a
         22083 Hamburg
         Germany
         Tel: 040/3208 36-0
         Fax: 040/3208 3636

The District Court of Tostedt opened bankruptcy proceedings
against Muehl Product & Service und Thueringer Baustoffhandel
Kontor GmbH on July 22, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Muehl Product & Service und Thueringer Baustoffhandel
         Kontor GmbH
         Hauptstr. 28
         21614 Buxtehude
         Germany


NIMBUS INNOVATIONS: Claims Registration Period Ends September 8
---------------------------------------------------------------
Creditors of Nimbus Innovations GmbH have until Sept. 8, 2008, to
register their claims with court-appointed insolvency manager
Bardo M. Sigwart.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 7, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Darmstadt
         Hall 4.312
         Fourth Floor
         Building D
         Mathildenplatz 15
         64283 Darmstadt
         Germany

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

The insolvency manager can be reached at:

         Bardo M. Sigwart
         Ostend 14
         64347 Griesheim
         Germany
         Tel: 06155-60930
         Fax: 06155-66297

The District Court of Darmstadt opened bankruptcy proceedings
against Nimbus Innovations GmbH on July 29, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Nimbus Innovations GmbH
         Friedrich-Ludwig-Jahn-Strasse 16
         64589 Stockstadt
         Germany


NKG GRUNDSTUECKS: Creditors Meeting Slated for September 8
----------------------------------------------------------
The court-appointed insolvency manager for NKG Grundstuecks GmbH &
Co. Transvaalstrasse 17/18 KG, Dr. Joachim Heitsch, will present
his first report on the Company's insolvency proceedings at a
creditors' meeting at 12:05 p.m. on Sept. 8, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 11:40 a.m. on Dec. 15, 2008, at the same
venue.

Creditors have until Oct. 16, 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. Transvaalstrasse 17/18 KG. on
July 29, 2008. Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         NKG Grundstuecks GmbH & Co.
         Transvaalstrasse 17/18 KG
         Uhlandstrasse 7-8
         10623 Berlin
         Germany


SCHWEINFURTER SCHALUNGSBAU: Claims Registration Ends September 8
----------------------------------------------------------------
Creditors of Schweinfurter Schalungsbau GmbH have until Sept. 8,
2008, to register their claims with court-appointed insolvency
manager Frank Hanselmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:05 a.m. on Sept. 22, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Schweinfurt
         Meeting Room 22
         Friedenstr. 2
         Schweinfurt
         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:

         Frank Hanselmann
         Heinestrasse 7b
         97070 Wuerzburg
         Germany
         Tel:0931/359800
         Fax:0931/3598050

The District Court of Schweinfurt opened bankruptcy proceedings
against Schweinfurter Schalungsbau GmbH on Aug. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Schweinfurter Schalungsbau GmbH
         Johann-Georg-Gademann-Str. 9
         97424 Schweinfurt
         Germany


SCHWERINER ISOLIERTECHNIK: Claims Registration Ends September 8
---------------------------------------------------------------
Creditors of Schweriner Isoliertechnik GmbH have until Sept. 8,
2008, to register their claims with court-appointed insolvency
manager Uta Plischkaner.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 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 Schwerin
         Hall 7
         Demmlerplatz 14
         19053 Schwerin
         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:

         Uta Plischkaner
         Joh.-Stelling-Strasse 1
         19053 Schwerin
         Germany

The District Court of Schwerin opened bankruptcy proceedings
against Schweriner Isoliertechnik GmbH on Aug. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Schweriner Isoliertechnik GmbH
         Attn: Joerg Engel,Luebeck, und Jens Wendel, Managers
         Wittenburger Tor 4a
         119057 Schwerin
         Germany


SERITECHNICA GMBH: Claims Registration Period Ends September 8
--------------------------------------------------------------
Creditors of Seritechnica GmbH Drucktechnik have until Sept. 8,
2008, to register their claims with court-appointed insolvency
manager Dr. Bruno Kuebler.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 20, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Dr. Bruno Kuebler
         Konrad-Zuse-Platz 1
         81829 Munich
         Germany
         Tel: 99299-0
         Fax: 99299-299

The District Court of Munich opened bankruptcy proceedings against
Seritechnica GmbH Drucktechnik on Aug. 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Seritechnica GmbH Drucktechnik
         Gmunder Str. 37a
         81379 Munich
         Germany


UNIVERSAL FASHION: Claims Registration Period Ends September 8
--------------------------------------------------------------
Creditors of Universal Fashion Handel GmbH have until Sept. 8,
2008, to register their claims with court-appointed insolvency
manager Christoph Seeliger.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Oct. 10, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bonn
         Hall S 2.22
         Second Stock
         William-Strasse 21
         53111 Bonn
         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:

         Christoph Seeliger
         Am Hofgarten 7
         53113 Bonn
         Germany

The District Court of Bonn opened bankruptcy proceedings against
Universal Fashion Handel GmbH on July 31, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Universal Fashion Handel GmbH
         Redcarstr. 52a
         53842 Troisdorf
         Germany


* German RMBS Market Stable But Incurs Some Losses, S&P Reports
---------------------------------------------------------------
During the second quarter of 2008, the overall performance of the
German residential mortgage-backed securities (RMBS) market has
been broadly sound, according to a report published by Standard &
Poor's Ratings Services.

Despite this solid performance, some transactions reported higher
losses, or registered a loss for the first time.  S&P's total
delinquency index remains at 3%; some strongly performing pools
which had significant weight in the index have recently been
removed, following regulatory calls related to the introduction
of Basel II, and this has placed upward pressure on the index.

Due to the reduction of outstanding pool balances (following
regulatory calls), the total delinquency and credit event indices
have started to flatten out, albeit at high levels, after a sharp
increase in the first quarter.  In fact, S&P expected this to
occur before the removal of the called transactions, and
underlines its general assumption that higher transaction
seasoning benefits the inherent default risk of a residential
mortgage loan portfolio.


=============
H U N G A R Y
=============


HUNGARIAN TELEPHONE: Posts US$27.8 Million Net Loss for 2Q 2008
---------------------------------------------------------------
Hungarian Telephone and Cable Corp. published financial results
for the quarter and six months ended June 30, 2008

                 Results for Second Quarter

HTCC's second quarter 2008 results reflect the inclusion of the
Invitel Acquisition for the full quarter as compared to the second
quarter 2007 which only included the Invitel Acquisition from
April 27, 2007.

HTCC increased its revenue by 60% during the second quarter ended
June 30, 2008 to US$148.1 million as compared to revenue of
US$92.8 million for the second quarter ended June 30, 2007. HTCC's
second quarter 2008 gross margin increased by 73% to US$88.5
million as compared to US$51.1 million for the second quarter
2007.  Income from operations increased by 125% in the second
quarter 2008 to US$21.4 million compared to US$9.5 million in the
second quarter 2007.  Principally due to a non-cash loss on
derivative financial instruments of US$66.7 million, offset
partially by a foreign exchange gain of US$47.3 million, HTCC's
net loss attributable to common stockholders for the second
quarter 2008 was US$27.8 million, or US$1.69 per (diluted) common
share, as compared to net loss attributable to common stockholders
of US$16.2 million, or US$1.00 per common share for the second
quarter 2007.

Mass Market Voice

HTCC's Mass Market Voice revenue grew by 72% from US$25.4 million
in the second quarter 2007 to US$43.7 million in the second
quarter 2008, mainly due to the inclusion of Invitel and Tele2
Hungary which was acquired in October 2007.

Business

HTCC's Business revenue grew by 37% from US$28.6 million in the
second quarter 2007 to US$39.1 million in the second quarter 2008,
mainly as a result of the Business revenue from the Invitel
Acquisition.

Mass Market Internet

HTCC continued its growth in its Mass Market Internet business
reflecting the continued growth in broadband DSL Internet
penetration both inside and outside its historical concession
areas.  HTCC's Mass Market Internet revenue increased to US$14.7
million in the second quarter 2008 as compared to US$8.4 million
in the second quarter 2007.  HTCC increased its broadband DSL
customer base from approximately 109,000 subscribers as of the end
of the second quarter 2007 to 131,000 subscribers as of the end of
the second quarter 2008.

Wholesale

HTCC's Wholesale revenue increased 66% from US$30.4 million in the
second quarter 2007 to US$50.6 million in the second quarter 2008,
primarily due to the Invitel and Memorex Acquisitions.

                     Results for Six Months

HTCC's results for the six months ended June 30, 2008 reflect the
inclusion of the Invitel Acquisition for the full six months as
compared to the six months ended June 30, 2007 which only included
the Invitel Acquisition from April 27, 2007.

HTCC increased its revenue by 97% to US$279.5 million for the six
months ended June 30, 2008 as compared to revenue of US$142.0
million for the six months ended June 30, 2007.  HTCC's gross
margin increased by 119% to US$164.3 million for the six months
ended June 30, 2008 as compared to US$75.1 million for the six
months ended June 30, 2007.  Income from operations increased by
171% for the six months ended June 30, 2008 to US$43.9 million as
compared to US$16.2 million for the six months ended June 30,
2007.  HTCC's net loss attributable to common stockholders for the
six months ended June 30, 2008 was US$23.8 million, or US$1.45 per
(diluted) common share, as compared to net loss attributable to
common stockholders of US$70.8 million, or US$4.87 per common
share for the six months ended June 30, 2007.

Mass Market Voice

HTCC's Mass Market Voice revenue grew by 150% from US$34.3 million
in the six months ended June 30, 2007 to US$85.6 million in the
six months ended June 30, 2008, mainly due to the inclusion of
Invitel and Tele2 Hungary.

Business

HTCC's Business revenue grew by 76% from US$43.3 million in the
six months ended June 30, 2007 to US$76.3 million in the six
months ended June 30, 2008 mainly as a result of the Business
revenue from the Invitel Acquisition.

Mass Market Internet

HTCC continued its growth in its Mass Market Internet business
reflecting the continued growth in broadband DSL Internet
penetration both inside and outside its historical concession
areas.  HTCC's Mass Market Internet revenue increased to US$28.2
million in the six months ended June 30, 2008 as compared to
US$9.5 million in the sixth months ended June 30, 2007.

Wholesale

HTCC's Wholesale revenue increased 63% from US$54.9 million in the
six months ended June 30, 2007 to US$89.4 million in the six
months ended June 30, 2008, primarily due to the Invitel and
Memorex Acquisitions.

HTCC's net cash provided by operations was US$55.6 million for the
six months ended June 30, 2008.

"I am very pleased with our robust financial results for the
quarter which are in line with management's expectations.  The
Hungarian telecommunications market conditions are stable and HTCC
is well positioned to take advantage of the growth opportunities
in the Hungarian broadband and business segments,"
HTCC's President and CEO Martin Lea said.

"The Invitel integration is largely complete and the cost savings
have exceeded our original expectations.  The Memorex integration
is off to a great start and we are in good shape to capitalize on
our leading position in the wholesale market for data and capacity
services within the Central and Eastern European region." Mr. Lea
added.

Headquartered in Budapest, Hungary, Hungarian Telephone and
Cable Corp. -- http://www.htcc.hu/-- is a fixed line
telecommunications and broadband Internet Services Provider in the
Republic of Hungary with more than one million customers.  In
addition to delivering voice, data and Internet services in
Hungary, it is also a major player in the Central and Eastern
European wholesale telecommunications market.  It operates under
the Invitel brand name.

                               *   *   *

Hungarian Telephone and Cable Corp. continues to carry
'B+' long-term corporate credit rating from Standard & Poor's.


HUNGARIAN TELEPHONE: S&P Affirms B+ Rating, Shifts Outlook to Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Hungary-based fixed-line telecommunications operator Hungarian
Telephone and Cable Corp. to negative from stable.  The 'B+'
long-term corporate credit rating and all issue ratings were
affirmed.

"The outlook revision reflects the gradual weakening of HTCC's
headroom under its financial covenants in the first half of 2008
and the possibility of a downgrade by at least one notch during
the next six months if headroom deteriorates further," said S&P's
credit analyst Matthias Raab.  "Although HTCC succeeded in
amending its financial covenants during the financing of its
acquisition of Memorex Telex Communications AG in the first
quarter of 2008, headroom has tightened, primarily because of
slower EBITDA growth and significantly higher capital expenditures
at Memorex than originally expected."

Nevertheless, HUngarian Telephone received EUR11.3 million from
the escrow agent on July 9, 2008, after agreeing on a settlement
with the selling shareholder of Memorex.

Hungarian Telephone also posted somewhat weak results in
Hungarian forint in first-half 2008.  Pro forma the consolidation
of Matel Holdings N.V., the parent company of Invitel ZRt., which
the company acquired in April 2007; Tele2 Hungary (acquired in
October 2007); and Memorex (acquired in March 2008) in first-half
2007 and 2008, revenues declined by 6% year on year.  This was
mainly due to fierce  competition from mobile services (mainly
through fixed-to-mobile substitution), cable operators, and other
telecoms service providers, and the planned reduction of low-
margin revenues from wholesale voice business and Tele2's
'carrier select' customers.

However, pro forma reported EBITDA increased by 5%, mainly due to
significant cost savings from the integration of Invitel.
Excluding one-time items, integration and restructuring costs,
pro forma EBIDA was up 9%.  Nevertheless, HUngarian Telephone
generated negative free operating cash flow of US$10 million.  The
rating is also constrained by the company's high leverage,
with lease-adjusted total debt to second-quarter annualized
recurring EBITDA at 4.7x (4.4x unadjusted).

The rating on HUngarian Telephone is supported by the company's
solid market position as the incumbent operator in 14 of 54
concession areas in Hungary, its strong progress in realizing
cost synergies from the integration of Invitel, and the
strengthened market position and revenue diversification of its
wholesale business in Eastern and Southeastern Europe through the
acquisition of Memorex.

"The outlook is negative because of the gradual weakening of
HTCC's headroom under its financial covenants in the first half
of 2008," said Mr. Raab.  "It also acknowledges the company's
ongoing need for cost cutting to sustain operating margins and
expected weak free cash flow generation in the near term."


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


ELVA FUNDING 2007-3: Fitch Cuts Rating on Class D Notes to BB+
--------------------------------------------------------------
Fitch Ratings downgraded 10 classes of notes from three Elva
Funding Plc transactions (part of Euclid CDO) and removed the
notes from Rating Watch Negative.  The downgrades reflect Fitch's
view on the credit risk of the rated notes after the release of
its new Corporate CDO rating criteria.  In addition, the
transaction's arranger, Morgan Stanley, has notified Fitch that no
further portfolio updates will be provided to Fitch.  As a result,
Fitch has hereby withdrawn all ratings.  The downgrades are based
on the current portfolio ratings and the July 28th, 2008 portfolio
substitutions and credit support levels.

Elva Funding Plc Series 2007-3:
  -- EUR52 million Class A (ISIN: XS0294841803): Downgraded to
     'BBB' from 'AAA'; RWN removed
  -- JPY1 billion Class A2 (ISIN: XS0297443276): Downgraded to
     'BBB' from 'AAA'; RWN removed
  -- EUR20 million Class B (ISIN: XS0294842793): Downgraded to
     'BBB-' from 'AA'; RWN removed
  -- EUR3 million Class B2 (ISIN: XS0295137086): Downgraded to
     'BBB-' from 'AA'; RWN removed
  -- JPY100 million Class B3 (ISIN: XS0297443607): Downgraded to
     'BBB-' from 'AA'; RWN removed
  -- EUR20 million Class D (ISIN: XS0294844492): Downgraded to
     'BB+' from 'BBB'; RWN removed

Elva Funding Plc Series 2007-7:
  -- EUR10 million Class A (ISIN: XS0302366611): Downgraded to
     'BBB' from 'AAA'; RWN removed
  -- US$30 million Class B (ISIN: XS0302367007): Downgraded to
     'BBB-' from 'AA'; RWN removed

Elva Funding Plc Series 2007-8:
  -- EUR10 million Class A (ISIN: XS0304597098): Downgraded to
     'BBB' from 'AAA'; RWN removed
  -- EUR50 million Class B (ISIN: XS0304596959): Downgraded to
     'BBB-' from 'AA'; on RWN

All ratings have been withdrawn to due lack of access to ongoing
portfolio information.

Fitch released its updated criteria on April 30, 2008 for
Corporate CDOs and, at that time, noted it would be reviewing its
ratings accordingly to establish consistency for existing and new
transactions.  As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two notches and one
notch, respectively.

While the portfolio credit quality has experienced negative
migration, the downgrades are primarily driven by the agency's new
corporate CDO criteria.  Key drivers of this transaction's credit
risk include an increase in portfolio credit risk, with 3.6% of
the portfolio now speculative-grade and 0.4% rated 'CCC' or below,
compared with 0% rated below investment grade at closing in 2007.
There is also additional portfolio migration risk, with 8% of the
portfolio currently on RWN and 22.4% of the portfolio on Negative
Outlook.  Fitch also notes the high industry concentration of 54%
in the two largest sectors: banking and finance (44%) and
telecommunications (10%). In addition the transactions' relatively
long risk horizons ranging from 2015-2017, compare unfavorably to
the available credit support for the rated tranches.

Given Fitch's view of concentration and the current credit quality
of the portfolio, and the remaining risk horizon, the credit
enhancement levels are not sufficient to justify the current
rating of these notes resulting in the downgrades.

  -- Series 2007-3 Classes A and A2: 5.22%
  -- Series 2007-3 Classes B, B2 and B3: 4.69%
  -- Series 2007-3 Class D: 3.40%
  -- Series 2007-7 Class A: 5.22%
  -- Series 2007-7 Class B: 4.69%
  -- Series 2007-8 Class A: 4.47%
  -- Series 2007-8 Class B: 4.04%

ELVA Funding Plc Series 2007-3, 2007-7 and 2007-8 are funded
synthetic CDOs referencing a portfolio of primarily investment
grade corporate obligations.  At closing, the issuer entered into
a credit default swap CDS agreement with Morgan Stanley Capital
Services, Inc. under which the swap counterparty purchased
protection on a managed reference portfolio of 125 non-equally
weighted reference entities.  There are currently 128 assets in
the portfolio and the transactions have maturities ranging from
June 2014 and June 2017.  Deutsche Asset Management International
GmbH (DeAM, rated 'CAM1-(1 minus)') acts as a portfolio advisor
for the term of the notes.  Changes in the reference portfolio can
only be made subject to eligibility criteria that define
guidelines and restrictions on replacements and substitutions.


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


ALITALIA SPA: Italy Amends Bankruptcy Law to Fit Company's Rescue
-----------------------------------------------------------------
The Italian government has amended its bankruptcy law to hasten
the sale of its 49.9% stake in Alitalia and turn around the loss-
making national carrier, various reports say.

Under Intesa Sanpaolo S.p.A.'s "Phoenix" rescue plan, Italy
government amended the Marzano Law, which was used to reorganize
Parmalat.  The government tapped Intesa Sanpaolo as adviser for
the sale of its 49.9% stake in Alitalia.

The amended law will allow Alitalia to be split into two -- an
oldco and a newco, Reuters reports.

The oldco will shoulder the cost of the planned 5,000-7,000 job
cuts and take on Alitalia's EUR1.1 billion debt -- including the
recent EUR300 million loan from the government and a EUR750
million convertible bond.  The government will place the oldco
under extraordinary administration and appoint an extraordinary
commissioner to oversee the sale of unprofitable assets.

The law will allow Alitalia's extraordinary commissioner to sell
its assets through private talks and without holding public
auction.

Transport Minister Altero Matteoli told Bloomberg News that Italy
may appoint Augusto Fantozzi, a former finance ministeras
commissioner.

The newco, meanwhile, will inherit Alitalia's fleet and
real estate assets as well as the remaining employees and up to
EUR500 million in debt.  It would receive around EUR300 million in
assets from AirOne S.p.A., which would be folded under the newco.
AirOne leads a group of 16 local investors who pledged to inject
around EUR1 billion into the newco in exchange for shares.

The investor group includes:

    * IMMSI S.p.A. -- EUR150 million;
    * Atlantia S.p.A. -- EUR100 million to EUR150 million;
    * Intesa Sanpaolo S.p.A. -- EUR100 million; and
    * Fondiaria SAI S.p.A. -- EUR30 million to EUR50 million.

Air France-KLM S.A., meanwhile, renewed interest in acquiring a
stake in Alitalia, although Italian Prime Minister Silvio
Berlusconi commented that foreign investors could only acquire a
minority stake in the national carrier, the Wall Street Journal
reports.

Mr. Matteoli was quoted by Bloomberg News as saying that the
investor group plans to sign an industrial agreement with an
international partner like Air France or Deutsche Lufthansa AG.

The amended law exempts Alitalia from anti-trust rules for six
months, allowing its merger with AirOne to push through without
problems, Reuters reports.

The revised law also binds investors from selling their shares in
Alitalia for five years.

IMMSI's Roberto Colaninno will become executive chairman of the
newco, the firm said in a statement.

                          About Alitalia

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

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


ALITALIA SPA: Passenger Traffic Rise at Fiumicino, Linate Airports
------------------------------------------------------------------
As part of the upward trend in traffic at Rome Fiumicino airport,
Alitalia reported a 35.6% rise in passengers carried for the
period August 1-24, against a 29.1% increase in the number of
seats offered, compared to the same period in 2007.

The load factor (seat occupancy index) also went up by 3.5
percentage points to 74.5%.

In more detail, international traffic rose by 42.8% with a load
factor of 79.3% (for Malpensa, during the same period in 2007, the
load factor was 75.7%) and intercontinental traffic increased by
121.1% with a load factor of 84.6% (for Malpensa, during the same
period in 2007, it was 81.2%).

These figures show that the increased number of seats offered by
Alitalia has led to a more than proportional growth of its
passenger traffic at Fiumicino.

At the same time, overall performance has also improved as shown
by a 16% decrease in the amount of mislaid luggage, compared to
August 2007.

Marked progress was also made at Milan Linate airport where
passenger traffic was up by 29.7% against a 29.1% increase in the
number of seats offered.  The load factor at Milan Linate also
increased by +0.3 percentage points, compared to August 2007.

Improved overall performance is also confirmed by the 2008 figures
for regularity (98.8% January-August; up by +0.8 points compared
to 98% in 2007) and punctuality (79.4% January-August, up by +5.7
points compared to 73.7% in 2007) in line with major European
airlines.

                         About Alitalia

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

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


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


GTB FINANCE: Fitch Rates US$2BB Medium-Term Note Program at B+
--------------------------------------------------------------
Fitch Ratings assigned Netherlands-based GTB Finance B.V.'s
US$2 billion global medium-term note program ratings of Long-term
'B+' and Recovery Rating of 'RR4' for senior unsecured debt, Long-
term 'B-' and Recovery Rating of 'RR6' for subordinated debt, and
Short-term 'B' for senior short-term debt.  At the same time,
Fitch has affirmed the ratings of parent company Guaranty Trust
Bank plc.

Fitch emphasizes that the above ratings are for the general
program; it cannot be assumed that each individual issue under the
program carries the applicable program rating.

GTB Finance B.V. was incorporated to raise funds in the
international capital markets for GTB and its subsidiaries.  The
program will be unconditionally and irrevocably guaranteed by GTB.
The net proceeds from each issue of the notes will be used for
general funding purposes.

GTB's ratings reflect Nigeria's difficult operating environment
and improved levels of capitalization.  They also reflect the
bank's well established domestic franchise, strong financial
performance and acceptable asset quality indicators.  However,
Fitch believes that the rapid levels of credit growth in the
financial year ending Feb. 28, 2008, could lead to deteriorating
asset quality indicators; consequently, the agency intends to
monitor these indicators closely.

GTB's ratings are affirmed as:
  -- Long-term foreign currency Issuer Default rating: affirmed at
     'B+'; Outlook Positive
  -- Short-term foreign currency IDR; affirmed at 'B'
  -- National Long-term rating: affirmed at 'AA-(AA minus)(nga)';
  -- National Short-term rating: affirmed at 'F1+(nga)'
  -- Individual rating: affirmed at 'D'
  -- Support rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

GTB is a Nigerian-listed commercial bank that began operating
in 1990.  The bank's principal activity continues to be the
provision of commercial banking services to customers.


MARYLEBONE ROAD: Fitch Puts Class A-3 Notes' BB Rating on WatchNeg
------------------------------------------------------------------
Fitch Ratings placed Marylebone Road CBO III notes due 2013 on
Rating Watch Negative, as:

  -- EUR38.25 million Class A-1 (XS0137285184): 'AA+' on RWN
  -- EUR21.25 million Class A-2 (XS0137285267): 'AA' on RWN
  -- EUR29.75 million Class A-3 (XS0137285697): 'BB' on RWN

Fitch released its updated criteria on April 30, 2008 for
Corporate CDOs and, at that time, noted it would be reviewing its
ratings accordingly to establish consistency for existing and new
transactions.

These rating actions are driven by Fitch's new criteria, coupled
with credit quality deterioration in the reference portfolio.  The
elements of the updated criteria having the greatest impact on the
ratings of Marylebone Road CBO III include increased default
probability assumptions for assets rated in the 'BB' and 'B'
categories, well as stressed correlation assumptions to reflect
the additional risk posed by portfolio concentrations.  Fitch's
new Cashflow criteria also applies to new interest rate scenarios.

Marylebone Road CBO III is a securitization of mainly European and
US CDS referencing senior unsecured bonds.  The reference
portfolio factored down to currently EUR489 million from initially
EUR850 million.

As of the review date, the portfolio referenced CDS from 70
obligors, with the three largest exposures making 5.21% of the
outstanding portfolio amount.  Fitch makes downward adjustments
for any names on Rating Watch Negative or Negative Outlook for
default analysis in its Portfolio Credit Model.  On an adjusted
basis approximately 7% of the assets are treated as 'CCC+' or
below and the weighted average portfolio quality deteriorated from
'BBB'/'BBB+' in December 2007 to 'BB+'.  9% of the assets in the
portfolio are on RWN, while 46% is on Negative Outlook.  The
largest single industry is Banking & Finance with 16.7% of the
portfolio volume.

For all the rated tranches, the current credit enhancement levels
are deemed insufficient to justify their ratings under both
Fitch's revised corporate CDO rating methodology and its new
Global Criteria for Cash Flow Analysis.

Resolution of the RWN will incorporate any changes to the
transaction structure along with additional portfolio migration.
If there are no significant changes prior to the resolution of the
RWN, then:

  -- Class A-1 will likely be downgraded to the 'A' rating
     category from 'AA+';

  -- Class A-2 will likely be downgraded to the 'BB' rating
     category from 'AA'; and

  -- Class A-3 will likely be downgraded to the 'CCC' rating
     category from 'BB';


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


SISTEMA JSFC: Seeks Approval to Acquire SkyLink
-----------------------------------------------
Sistema JSFC has filed for regulatory approval to acquire the
remaining 50% stake in Sky Link at the the Federal Anti-Monopoly
Service, Reuters reports.  The company already owns half of the
telecoms firm.

According to Reuters, Sistema plans to dispose first of its 50%
percent stake in Multiregional TransitTelecom (MTT) before
acquiring the remaining stake in Sky Link.

Sky Link provides cellular services using the CDMA standard in
Russia.  The company had more than 700,000 subscribers in July
2008, and posted US$300 million in revneues in 2007.

                         About Sistema

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

                         *     *     *

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

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

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


SISTEMA JSFC: S&P Raises Corporate Credit Rating to BB From BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
corporate credit rating on Russian holding company Sistema (JSFC)
to 'BB' from 'BB-'.  The outlook is stable.  A recovery rating of
'4' was assigned to the issue rating on subsidiary Sistema Capital
S.A.'s unsecured debt issues guaranteed by Sistema.

At the same time, the long-term rating on Sistema's 52.8%
subsidiary Mobile Telesystems (OJSC) was raised to 'BB' from
'BB-'.  The outlook is positive.

S&P also raised the long-term ratings on Sistema's 51% subsidiary
Comstar United TeleSystems (JSC) and its majority-owned
subsidiary, Moscow City Telephone Network (JSC), to 'BB' from
'BB-'.  The outlook is stable.  The 'ruAA' Russia national scale
ratings on Comstar and Moscow City Telephone Network were
affirmed.

"The upgrade of Sistema reflects the continuing strong performance
of its core telecoms assets, moderating financial
policy, and tangible progress in streamlining operations and
strengthening the corporate structure," said S&P's credit analyst
Alexander Griaznov.  "The upgrades of the subsidiaries are
concomitant with the upgrade of Sistema."

Sistema's consolidated revenues and EBITDA grew robustly by 33%
and 29%, respectively, in 2007. Revenue diversity continues to
improve on the back of explosive growth in consumer-oriented
business segments, but Mobile Telesystems continues to provide
most of Sistema's operating profitability and cash flow
generation.  Comstar has made substantial investments in its
network and carried out a number of small scale acquisitions in
Russia and is now set to benefit from the rapidly growing
broadband market.  Importantly, Sistema's other businesses,
including in technology and real estate, show signs of recovery
and now generate positive operating income before depreciation
and amortization.

The rating on Sistema is constrained by the group's relatively
aggressive financial policy, with a strong focus on business
growth; predisposition to acquisitions; and limited cash flow
diversification, exacerbated by the cash consumption of many of
its growth-oriented business segments.  In addition, Sistema has
started ambitious capital-intensive construction of a nationwide
mobile network in India, which should further limit the group's
cash generation potential.

Sistema's consolidated debt was US$9.7 billion as of April 1,
2008.  It represents close to 1.7x consolidated EBITDA and remains
below the threshold of about 2x targeted by Sistema's
management.  In addition, Sistema's stand-alone debt represents
about 10% of the total portfolio value, which is supportive of
the rating.

The stable outlook reflects S&P's opinion that Sistema will
continue to streamline its existing operations and focus on the
organic growth of its nonpublic businesses.  S&P also expects
Sistema and its key operating subsidiaries to carefully manage
their future strategic investments and adjust their financial
policies to prevent sharp increases in the group's consolidated
financial leverage.  In the near to medium term, S&P expects
Sistema to maintain its consolidated financial leverage at
manageable levels, broadly in line with management's target of
maintaining total debt at about or below 2x EBITDA.

"Ratings upside for Sistema could result from our gaining comfort
in terms of business diversification and the cash flow
contribution from nontelecoms assets, long-term financial
discipline and governance practices," said Mr. Griaznov.

Downside pressures could stem from rapid and aggressive changes
in the group's financial policy and corporate strategy, leading,
among others, to deterioration in credit measures and/or less
visibility and comfort on the evolution of the group's financial
policy.

Ratings upside potential for Mobile Telesystems, indicated by the
positive outlook, acknowledges its solid credit profile on a
stand-alone basis, recognizing the opportunity of a higher rating
than that on its parent.


VIMPEL-COMMUNICATIONS: Earns US$470.16 Mln for Second Quarter 2008
------------------------------------------------------------------
Vimpel-Communications OAO released its financial results for the
second quarter and first half ended June 30, 2008

Vimpelcom posted US$470.16 million in net income on US$2.6 billion
in net revenues for the second quarter 2008, compared with
US$359.27 million in net income on US$1.72 billion in net revenues
for the same period in 2007.

Vimpelcom posted US$1.07 billion in net income on US$4.71 billion
in net revenues for the first half 2008, compared with
US$636.55 million in net income on US$3.2 billion in net revenues
for the same period in 2007.

Alexander Izosimov, VimpelCom CEO, said, "We are pleased with our
robust second quarter results.  The Company showed solid 52%
annual revenue growth with a healthy 47% OIBDA margin, which is in
line with our internal target for this stage of the integration of
Golden Telecom.  The increase in revenue was driven by fast
organic growth in both our mobile and fixed-line operations as
well as by the first full quarter consolidation of Golden Telecom.

"In the second quarter we successfully refinanced our short-term
debt related to the Golden Telecom acquisition.  Following the
refinancing, we started to intensify our sales and marketing
efforts in the Russian mobile segment, resulting in 11% quarter-
on-quarter revenue growth in this segment.

"We are also very happy with our performance in the CIS, where we
showed strong growth and increased revenue market share and ARPU
in all geographies.

"We will continue to focus our efforts along three key priorities
for the Company: developing integrated operations in Russia,
including a strong push in the broadband business, continued
development in the CIS markets and expansion outside of the CIS.
These priorities prompted us to make some adjustments to our
organizational structure which we believe will enhance the focus
and efficiency of our business."

As of June 30, 2008, Vimpelcom had US$2.31 billion in current
assets and US$3.82 billion in current liabilities, resulting in
US$1.52 billion in net working deficit.  The company also had
US$17.71 billion in total assets, US$11.28 billion in total
liabilities and US$6.43 billion in total shareholders' equity.

                          About VimpelCom

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

                          *     *     *

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

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


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


RESTAURANT BAR: Proofs of Claim Filing Deadline is Sept. 21
-----------------------------------------------------------
Creditors owed money by LLC Restaurant Bar Fregatte are requested
to file their proofs of claim by Sept. 21, 2008, to:

         Brigitte Lehmann
         Sternenstrasse 30c
         8903 Birmensdorf
         Switzerland

The company is currently undergoing liquidation in
Oberengstringen.  The decision about liquidation was accepted at
an extraordinary shareholders' meeting held on July 3, 2008.


SEPP WALKER: Creditors' Proofs of Claim Due by Sept. 22
-------------------------------------------------------
Creditors owed money by JSC Sepp Walker are requested to file
their proofs of claim by Sept. 22, 2008, to:

         Schwandigasse 7
         6472 Erstfeld
         Switzerland

The company is currently undergoing liquidation in Erstfeld.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 27, 2008.


SIBARITA JSC: Sept. 24 Set as Deadline to File Proofs of Claim
--------------------------------------------------------------
Creditors owed money by JSC Sibarita are requested to file their
proofs of claim by Sept. 30, 2008, to:

         PRV Provides Treuhand
         Dorfstrasse 38
         6341 Baar
         Switzerland

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


V. B. & PARTNERS: Creditors Must File Claims by Sept. 24
--------------------------------------------------------
Creditors owed money by LLC V.B. & Partners are requested to file
their proofs of claim by Sept. 19, 2008, to:

         Seefeldstrasse 25
         8008 Zurich
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 12, 2008.


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


A E COCKING: Claims Filing Period Ends December 15
--------------------------------------------------
Creditors of A E Cocking & Son Ltd. have until Dec. 15, 2008,  to
send their names and addresses and particulars of their claims to:

         Matthew Colin Bowker
         Joint Liquidator
         Tenon Recovery
         33 George Street
         Wakefield
         WF1 1LX
         England

Matthew Colin Bowker and David Antony Willis of Tenon Recovery
were appointed joint liquidators of A E Cocking & Son Ltd. on
Aug. 14, 2008, for the creditors' voluntary winding-up proceeding.


BRADSHAW & CO: Appoints Steven Draine as Liquidator
---------------------------------------------------
Steven Draine of Moore Stephens LLP was appointed liquidator of
Bradshaw & Co. Ltd. on Aug. 15, 2008, for the creditors' voluntary
winding-up procedure proceeding.

The company can be reached at:

         Bradshaw & Co. Ltd.
         c/o Moore Stephens LLP
         3-5 Rickmansworth Road
         Watford
         Hertfordshire
         WD18 0GX
         England


COLOURPRINT UK: Brings in Liquidators from Deloitte & Touche
------------------------------------------------------------
Stephen Anthony John Ramsbottom and Richard Michael Hawes of
Deloitte & Touche LLP were appointed joint liquidators of
Colourprint U.K. Ltd. (formerly Haven Colourprint U.K. Ltd.) on
Aug. 5, 2008, for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Colourprint U.K. Ltd.
         c/o Deloitte & Touche LLP
         3 Rivergate
         Temple Quay
         Bristol
         BS1 6GD
         England


EDUCATION CENTRE: Appoints Liquidators from Vantis
--------------------------------------------------
Colin Ian Vickers and Christopher David Stevens of Vantis Business
Recovery were appointed joint liquidators of The Education Centre
Ltd. on Aug. 12, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         The Education Centre Ltd.
         c/o Vantis Business Recovery Services
         Fourth Floor
         Southfield House
         11 Liverpool Gardens
         Worthing
         West Sussex
         BN11 1RY
         England


FENN ENGINEERING: Calls in Liquidators from BDO Stoy Hayward
------------------------------------------------------------
David Harry Gilbert and Martha Honora Thompson of BDO Stoy Hayward
were appointed joint liquidators of Fenn Engineering Ltd. on Aug.
7, 2008, for the creditors' voluntary winding-up  proceeding.

The company can be reached at:

         Fenn Engineering Ltd.
         c/o BDO Stoy Hayward LLP
         55 Baker Street
         London
         W1U 7EU
         England


LEHMAN BROTHERS: To Slash Up to 6% of Workforce
-----------------------------------------------
The Wall Street Journal's Matthias Rieker, citing a report by The
New York Times, says Lehman Brothers Holdings, Inc., is planning
to eliminate 1,000 to 1,500 employees, as much as 6% of the
company.  It remains unclear what parts of the company would be
affected, WSJ says.

The Journal notes that Lehman this year has had at least four
rounds of layoffs and had 26,189 employees at the end of its
fiscal second quarter, ended May 31, down 2,134 from the year-
earlier period.

The Journal further notes that Lehman has been struggling to keep
up with the losses it had to take in marking to market its
mortgage assets, and is in talks centered on selling parts of its
businesses and even a stake in itself to raise capital.

The Journal's Diya Gullapalli says Lehman is looking to sell its
investment-management division, Neuberger Berman.  The report
notes that private-equity firms including Kohlberg Kravis Roberts
& Co., Bain Capital LLC and TPG are considered potential buyers
for at least parts of Lehman's investment-management division,
where Neuberger is the crown jewel.  The report says another
possibility for Lehman is selling a piece of its US$40 billion
commercial-mortgage portfolio.

MarketWatch's Sue Chang says the report of the additional layoffs
comes in the wake of reports that Lehman has failed to secure
investment from Asian entities, including Korea Development Bank
of South Korea.

Mr. Rieker relates that Lehman swung to a US$2.8 billion loss in
the second quarter, from a US$1.3 billion profit a year earlier,
because write-downs of mortgage-related assets and exposure to
hedge funds.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- an
innovator in global finance, serves the financial needs of
corporations, governments and municipalities, institutional
clients, and high net worth individuals worldwide.  Founded in
1850, Lehman Brothers maintains leadership positions in equity and
fixed income sales, trading and research, investment banking,
private investment management, asset management and private
equity.  The firm is headquartered in New York, with regional
headquarters in London and Tokyo, and operates in a network of
offices around the world.


MARTINS MINI: Brings in Joint Administrators from Tenon Recovery
----------------------------------------------------------------
Stanley Burkett-Coltman and Sandy Kinninmonth of Tenon Recovery
were appointed joint administrators of Martins Mini Coaches
Ltd.(Company Number 3931683) on Aug. 12, 2008.

The company can be reached at:

         Martins Mini Coaches Ltd.
         The Gas Works
         709 Old Kent Road
         London
         England


BHM HEALTH: Calls in Joint Administrators from BDO Stoy Hayward
---------------------------------------------------------------
Toby Scott Underwood and Christopher Kim Rayment of BDO Stoy
Hayward LLP were appointed joint administrators of BHM Health
Group Ltd. (Company Number 02902632) on Aug. 19, 2008.


CLEEVE OF LONDON: Goes Into Liquidation; 39 Jobs Affected
---------------------------------------------------------
Chard-based shirt manufacturer Cleeve of London Ltd. has gone into
liquidation, resulting to the loss of 39 jobs, Richard Purdon of
Chard and Ilminster News reports.

Cleeve of London's plant in Jarman Road, Chard Business park was
shut down immediately as advised by a liquidator.

"Things have been difficult for a long time because of the
downturn in business.  Until the liquidator has finished its job
there's really nothing we can do," Danielle Gamble, a spokesperson
for the company, was quoted by the report as saying.


DOUGHBOYS BAKERIES: Taps Tenon Recovery to Administer Assets
------------------------------------------------------------
Andrew James Pear and Ian Cadlock of Tenon Recovery were appointed
joint administrators of Doughboys Bakeries Ltd. (Company Number
05395006) on Aug. 12, 2008.

The company can be reached at:

         Doughboys Bakeries Ltd.
         32 North Street
         London
         SW4 0HD
         England


ELLIOTT SARGEANT: Appoints Administrators from Tenon Recovery
-------------------------------------------------------------
Sandy Kinninmonth and Stanley Burkett-Coltman of Tenon Recovery
were appointed joint administrators of Elliott Sargeant Ltd.
(Company Number 03038844) on Aug. 11, 2008.

The company can be reached at:

         Elliott Sargeant Ltd.
         c/o Tenon Recovery
         Highfield Court
         Tollgate
         Chandlers Ford
         Eastleigh
         Hampshire
         SO53 3TZ
         England


FGIC INC: US$184BB in Insured Muni Bonds to Be Reinsured by MBIA
----------------------------------------------------------------
MBIA Inc. has agreed to provide reinsurance to US$184 billion of
municipal bonds currently insured by and FGIC Corp.'s Financial
Guaranty Insurance Company.  The deal resulted from a competitive
process undertaken at the direction of, and overseen by, the New
York State Insurance Department and includes the innovative use of
"cut-through" reinsurance for a large book of existing financial
guaranty business, Insurance Superintendent Eric Dinallo said.
The specifics of the transaction must still be submitted to the
Insurance Department for approval.

In addition, the Department has approved the commutation between
FGIC and FGIC UK and Calyon with respect to a commitment by FGIC
UK to issue a US$1.875 billion financial guaranty policy on a
complex basket of distressed asset backed securities.  FGIC UK
paid Calyon US$200 million for the commutation.

"Assuming the terms of the reinsurance deal meet regulatory
requirements, it should provide substantial improvement for
everyone-the municipal and structured policyholders of FGIC, the
policyholders of MBIA, and both companies," Mr. Dinallo said.
"The innovative use of cut-through reinsurance provides a model
that I expect can be used to improve the rating of the municipal
bonds currently insured by other downgraded bond insurers, while
freeing up capital to pay the claims of other policyholders.  I'm
proud that the Insurance Department was able to play a
constructive role by facilitating and overseeing the bidding
process that resulted in a beneficial, market-based transaction."

Cut-through reinsurance generally means that a policyholder can
file a claim directly with the reinsurer if the insurance company
that issued the policy goes bankrupt, thus avoiding the delays
usually associated with bankruptcy.  This cut-through reinsurance
is innovative in three ways:

   1. Policyholders can usually only use cut-through reinsurance
      after the insurance company that issued the policy goes
      bankrupt. Here, owners of municipal bonds backed by FGIC
      have a choice.  They can go to FGIC or go directly to MBIA
      with any claims.  This increases the assurance that a
      policyholder will be paid promptly for a claim.

   2. Cut-through reinsurance is typically offered to help sell
      a new policy.  Here it is being used retrospectively for
      existing policies.

   3. Cut-through reinsurance is normally offered policy by
      policy.  Here it is being provided all at once for a large
      group.

"We believe that cut-through reinsurance could prove invaluable in
helping lift the ratings of municipal bonds now covered by other
bond insurers, including Syncora and CIFG," Mr. Dinallo said.

FGIC had been downgraded from AAA to ratings that range from BB to
CCC, which means that the municipal bonds it insured were also
downgraded, unless the issuer had its own independent higher
rating.  As a result of this transaction, the bonds now reinsured
could be upgraded to as high as AA.  Also, FGIC municipal
policyholders will benefit from a stable reinsurer backing their
policies.  FGIC's structured finance counterparties will benefit
from approximately US$1 billion of additional capital resources
supporting their policies in the form of capital release,
contingency reserve release and a cash ceding commission.  As part
of this process, FGIC continues to have extensive discussions with
its CDO structured finance counterparties.

While the majority of FGIC municipal bonds are included in the
reinsurance transaction, a small number, including bonds issued by
Jefferson County, Alabama, were not included and will continue to
be insured only by FGIC.

The transaction also strengthens MBIA's insurance company in ways
that provide substantial benefit to policyholders.

    * The transaction will result in greater earnings and cash
      flow to the insurance company.  It also creates operational
      and capital synergies.

    * The insurance company will be larger and with a greater
      percentage of its book concentrated in the stable, low loss
      municipal business.

    * Both of the above should fortify MBIA's ratings by
      improving its financial position.  Policyholders would
      benefit from the maintaining or improving of MBIA's
      ratings.

    * The transaction is an effective use of excess capital at
      a time when the company is able to write limited new
      business.

The deal resulted from an auction and a search process for bidders
directed by the Insurance Department.  Many bidders participated
and provided bids.  FGIC selected the best offer and negotiated
the final terms.

It is expected that the companies will file an application for
approval of the transaction on Tuesday, September 2, 2008.  That
will begin a 10-business-day public comment period, during which
all interested parties are free to comment on the transaction
before the Department makes its final determination.  The
application will be public and available from FGIC.

"As we move forward with the evaluation process, we hope that
anyone who has a comment will share it with us.  We want to ensure
that both companies moving forward are stronger for all
policyholders," Mr. Dinallo said.

This transaction is part of the Insurance Department's continuing
implementation of its three point plan for the bond insurance
industry.

   1. Bring in new capital and new players to ensure a
      competitive market providing bond insurance to those who
      need it.  To date, the Department has facilitated the
      addition of US$10 billion in capital.

   2. Protect the policyholders of the distressed companies by
      finding solutions, including reinsurance for the municipal
      bonds.

   3. Develop new rules for the bond insurers to prevent similar
      problems in the future.

FGIC Corporation is a holding company whose primary operating
subsidiaries, Financial Guaranty Insurance Corporation and FGIC UK
Limited, provide credit enhancement and protection products to the
public finance and structured finance markets throughout the
United States and internationally.

FGIC Corporation is privately owned by an investor group
consisting of The PMI Group, GE and private equity firms
Blackstone, Cypress and CIVC.  For the three months ended
March 31, 2008, FGIC Corporation reported GAAP losses of US$33.3
million.  As of March 31, 2008, the company had shareholders'
equity of approximately US$548 million.

                          *     *     *

Fitch Ratings downgraded FGIC Corp.'s Long-term Issuer ratings to
'CCC-' from 'BB'; and ratings on US$325 million of 6% senior notes
due Jan. 15, 2034, to 'CCC-' from 'BB'.  The rating action is
based on Fitch's expectation that FGIC will experience further
credit deterioration on its book of business backed by residential
mortgage-backed securities.  This deterioration could lead to
further additions in loss reserves which will increase the
possibility that FGIC could become subjected to some form of
regulatory intervention.

As reported by the Troubled Company Reporter on June 23, 2008,
Moody's Investors Service has downgraded to B1, from Baa3, the
insurance financial strength ratings of the main operating
subsidiaries of FGIC Corporation, including Financial Guaranty
Insurance Company and FGIC UK Limited.  Moody's has also
downgraded the senior debt ratings of the holding company, FGIC
Corporation to Caa2 from B3 and the contingent capital securities
ratings of Grand Central Capital Trusts I-IV to B3 from B2.

The rating action concludes a review for possible downgrade that
was initiated on March 31, 2008, and reflects the company's
severely impaired financial flexibility and the company's
proximity to minimum regulatory capital requirements relative to
our estimations of expected case losses.  The rating action also
considers the likelihood that FGIC's announced restructuring plan
will ultimately result in the company retaining the higher-risk
portion of the insured portfolio without the premiums associated
with its lower-risk business.  The outlook for the rating is
negative.


INGENIOUS MUSIC: Appoints Joint Liquidators; Suspends Shares
------------------------------------------------------------
The shareholders of Ingenious Music VCT plc have approved that the
Company be placed into voluntary winding-up and to appoint Messrs.
Stephen Ryman and Robert Smailes of Shipleys LLP as joint
liquidators

Shareholders also approved the suspension of the Company's
15,093,286 ordinary shares from trading on the Official List.

An application will be made to the U.K. Listing Authority
requesting the cancellation of the listing of the Shares on the
Official List as well as the trading of the Shares on the London
Stock Exchange.  Cancellation of the Shares is expected to take
place on Sept. 25, 2008.

                About Ingenious Music VCT plc

Ingenious Music VCT plc is a specialist Venture Capital Trust
(VCT) listed on the London Stock Exchange.

The fund invests in a portfolio of companies responsible for the
creation and exploitation of intellectual property rights.
Ingenious works with leading music industry executives to locate
and develop the careers of artists, many of whom have attracted
the attention of major record companies.

In addition to the highly attractive tax benefits available, the
fund is designed to offer significant downside protection as well
as the ability to generate significant additional income from the
worldwide exploitation of artists' recording and ancillary rights.


JET 1: Fitch Cuts Rating on EUR500 Mil. Notes to BB+, Removes RWN
-----------------------------------------------------------------
Fitch Ratings downgraded Jet 1's EUR50 million unfunded synthetic
corporate CDO notes, due June 2017, to 'BB+' from 'BBB+' and
removed the notes from Rating Watch Negative.

The rating action reflects Fitch's view on the credit risk of the
rated notes following the release of its new Corporate CDO rating
criteria on April 30, 2008.

Key drivers of this transaction's credit risk include a total 26-
notch net downgrade in the referencing portfolio after the closing
in May 2007.  Furthermore, the portfolio has migration risk with
7.6% of the portfolio on RWN and 13.4% on Negative Outlook.  Fitch
also notes industry concentration of 32.8% in the three largest
sectors of the transaction, made up of 13.5% in banking and
finance, 10.9% in telecommunications and 8.4% in utilities.

Given Fitch's view of industry concentration and current credit
quality of the portfolio the credit enhancement level of 3.26%,
which consists of 2.9% subordination and 0.36% reserve account, is
not sufficient to justify the BBB+ rating of the notes.

The transaction is an unfunded synthetic CDO with an initial
notional amount of EUR50 million.  In addition, the premium due
under the transaction is trapped fully upfront and kept within the
transaction's reserve account up to its termination as additional
credit enhancement.  A claim occurs when the current loss
threshold of 2.9% is hit.  The rating addresses the probability of
a claim occurring under the transaction.  The portfolio is managed
by Calyon.

Fitch released its updated criteria on April 30, 2008 for
Corporate CDOs and, at that time, noted it would be reviewing its
ratings accordingly to establish consistency for existing and new
transactions.  As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two notches and one
notch, respectively.  Fitch has noted that its review will be
focused first on ratings most exposed to risks it has highlighted
in its updated criteria.

As such, the transaction was placed on RWN on Aug. 5, 2008 and, as
indicated, resolution of the Rating Watch status depends on any
plans managers or arrangers may choose to modify either the
structure or the portfolio.  In this case, Fitch used the latest
portfolio, confirmed by Calyon, as the basis for its rating
action.


JET 2: Fitch Cuts Rating on EUR50 Mil. Notes to BB, Removes RWN
---------------------------------------------------------------
Fitch Ratings downgraded Jet 2's EUR50 million unfunded synthetic
corporate CDO notes, due June 2017, to 'BB' from 'BBB+' and
removed the notes from Rating Watch Negative.

The rating action reflects Fitch's view on the credit risk of the
rated notes following the release of its new Corporate CDO rating
criteria on April 30, 2008.

Key drivers of this transaction's credit risk include the
decreased average quality of the portfolio to 'A- (A minus)/BBB+',
resulting from a total 29-notch net downgrade after the closing in
May 2007.  Furthermore, the portfolio has migration risk with 8.6%
of the portfolio on RWN and 14.1% on Negative Outlook.  Fitch also
notes industry concentration of 39.9% in the three largest sectors
of the transaction, made up of 20.3% in banking and finance, 10.2%
in energy and 9.4% in chemicals.

Given Fitch's view of concentration and current credit quality of
the portfolio, the credit enhancement level of 3.293%, which
consists of 2.823% subordination and 0.47% reserve account, is not
sufficient to justify the BBB+ rating of the notes.

The transaction is an unfunded synthetic CDO with an initial
notional amount of EUR50 million.  In addition, the premium due
under the transaction is trapped fully upfront and kept within the
transaction's reserve account up to its termination as additional
credit enhancement.  A claim occurs when the current loss
threshold of 2.82% is hit.  The rating addresses the probability
of a claim occurring under the transaction.  The portfolio is
managed by Calyon.

Fitch released its updated criteria on April 30, 2008, for
Corporate CDOs and, at that time, noted it would be reviewing its
ratings accordingly to establish consistency for existing and new
transactions.  As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two notches and one
notch, respectively.  Fitch has noted that its review will be
focused first on ratings most exposed to risks it has highlighted
in its updated criteria.

As such, the transaction was placed on RWN on Aug. 5, 2008, and,
as previously indicated, resolution of the Rating Watch status
depends on any plans managers or arrangers may choose to modify
either the structure or the portfolio.  In this case, Fitch used
the latest portfolio, confirmed by Calyon, as the basis for its
rating action.


NOON LTD: Taps Joint Administrators from Tenon Recovery
-------------------------------------------------------
Andrew James Pear and Ian Cadlock of Tenon Recovery were appointed
joint administrators of Noon (Aircraft Leasing) Ltd. (Company
Number 01732645) on Aug. 19, 2008.

The company can be reached at:

         Noon (Aircraft Leasing) Ltd.
         Unit A Northbrook Trading Estate
         Northbrook Road
         Worthing
         West Sussex
         BN14 8PN
    England


REED PRINT: Goes Into Administration; 148 Jobs Affected
-------------------------------------------------------
North East-based printing firm Reed Print and Design has gone into
administration, resulting to the loss of 148 jobs, Sam Wood of The
Journal reports.

According to the report, the company, which earlier launched a 90-
day consultation with employees, brought in administrators from
PricewaterhouseCoopers after being hit by high overheads and
difficult trading conditions.

A spokesman for PwC told The Journal "the business has suffered
from the adverse and well-documented problems in the printing and
packing industry in recent months and had embarked upon a
restructuring program in order to address the financial
difficulties it was in. However, this process was unable to be
completed and the directors called in the administrators," adding
"the administrators are now putting plans together to realize the
assets of the company in order to maximize return for creditors."

In December 2006, the company made a pre-tax loss of GBP1.56
million, following a loss of GBP1.4 million in 2005, the report
discloses.

"Following another year of loss-making due to the decline in core
business with existing clients, it is clear the current business
operating model can't be sustained going forward.  This is despite
working hard to reduce indirect costs and recruiting new sales
resources," Paul Dobson, the company's managing director, was
quoted by the report as saying.


SANDY MCCRACKEN: Calls in Liquidators from MLM Insolvency
---------------------------------------------------------
Sandy McCracken & Son called in provisional liquidators on August
22.  Sixty employees were declared redundant in the process.  MLM
Insolvency has been tapped to investigate if the company can
continue its operations and find a buyer, or whether it needs to
go into liquidation.

Maureen Leslie, MLM partner, said, "Sandy McCracken is still
operating its biggest accounts and we are talking to some
interested parties about selling the business which includes  a
5.5-acre yard two miles off the M74.  We were called in because a
combination of the fuel price rises, a downturn in the
construction sector (which had meant that eight tippers had been
unused for six weeks) and the credit crunch had caused a cash
crisis."

Sandy McCraken and Son operates a fleet of 35 vehicles operating
the length and breadth of the UK.  The haul animal feed, coal,
lime and other bulk loads.  Their fleet consists of 30 Scania
units and some Daf, Volvo and Man to make up the numbers.  It has
a selection of 40 trailers all plated to 44 tonnes and has
recently introduced 2 walking floor units.


WINDERMERE VII: S&P Affirms BB Rating on Class F CMBS Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its credit ratings
on all classes of commercial mortgage-backed notes (CMBS) issued
by Windermere VII CMBS PLC based on the data up to and including
the July 2008 servicer report released by Hatfield
Philips International Ltd.

The affirmation follows a review of all the remaining loans in
this transaction.

The transaction, which closed in May 2006, was originated and
arranged by the London branch of Lehman Commercial Paper Inc. and
Lehman Brothers Bankhaus AG.  It was originally backed by 12
loans secured by 31 office properties, 12 retail properties, two
hotels, and three multifamily housing portfolios located in
Germany, France, Sweden, and Spain.  One loan, accounting for
3.05% of the original portfolio pool, has since repaid.

Windermere VII CMBS PLC:

  -- EUR782.25 Million Commercial Mortgage-Backed Floating-Rate
     Notes

Ratings Affirmed:

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


ZOOM AIRLINES: Goes Into Administration; Suspends Operations
------------------------------------------------------------
Zoom Airlines has suspended operations with effect from
7:00 p.m. on Thursday, Aug. 28, 2008.  Both Zoom Airlines Inc. and
Zoom Airlines Ltd., the Canadian and U.K. airlines, have started
administration proceedings in their home countries.

All Zoom flights have been canceled and aircraft grounded.

Hugh and John Boyle, the founders of Zoom, said: "We deeply regret
the fact that we have been forced to suspend all Zoom operations.
It is a tragic day for our passengers and more than 600 staff.

"We are desperately sorry for the inconvenience and disappointment
that this will cause passengers and those who have booked flights.

"We have done everything we can to support the airline and left no
stone unturned to secure a re-financing package that would have
kept our aircraft flying.  Even late today (Thursday) we believed
we had secured a new investment package to ensure future
operations but the actions of creditors meant we could not
continue flying.  Having been unable to complete the investment
package the directors of Zoom had no option but to instigate
administration proceedings.

"The suspension of operations is a result of the exceptionally
difficult trading conditions which have affected all airlines over
the last 12 months.  We have worked hard over the last seven years
to build up a successful business but have incurred losses in the
current year due to the unprecedented increase in the price of
aviation fuel and the economic climate.  The increase in the price
of oil has added around US$50 million to our annual operating
costs and we could not recover that from passengers who had
already booked their flights.

Both British Airways and Virgin Atlantic have indicated that they
will be offering special fares to customers whose travel plans
have been affected by Zoom's suspension of flights.

Founded in 2002 Zoom Airlines Inc. -- http://www.flyzoom.com/--
was a low-fare transatlantic airline based in Ottawa, Ontario.


* Emerging Europe Economic & Credit Outlook Worsening, Fitch Says
-----------------------------------------------------------------
Fitch Ratings says in a new report published that the economic and
credit outlook for the Emerging Europe region is worsening as it
faces the combination of a global economic slowdown, strong
inflationary pressures and fragile financing conditions, while
many EE countries also have sizable current account deficits.

"The economic and credit outlook for Emerging Europe is
deteriorating as an unpalatable combination of a downturn in the
euro area, maturing domestic booms and the global commodity price
shock presages a worse growth/ inflation/ current account trade-
off across the region; while global financing conditions are
fragile," says Edward Parker, Head of Emerging Europe Sovereigns
at Fitch.  "Although not Fitch's central scenario, the risk of a
hard landing accompanied by an exchange rate crisis somewhere in
the region is significant and rising," says Mr Parker.

Previous upward rating momentum in the region has stalled. Over
the past 18 months there have only been three foreign currency
rating upgrades: the Czech Republic ("A+"), Slovakia ("A+") and
Armenia ("BB"); and two downgrades: Latvia ("BBB+") and Georgia
("B+").  "The balance of Positive to Negative Outlooks has swung
from plus five in August 2007 to minus five in August 2008,
highlighting the downward pressure on ratings.  Seven countries
are now on Negative Outlooks, which is a record number since Fitch
started its sovereign coverage on the region in the mid-1990s,"
says Mr. Parker.

Fitch forecasts EE's GDP growth to fall from 6.9% in 2007 to 5.8%
in 2008 (the lowest since 2002) and 5.3% in 2009, bolstered by
growth in Russia ("BBB+") of 7.5% this year and 6.5% next.  But
most countries within the region will grow much slower, and
Estonia ("A") and Latvia are at risk of recession.  Meanwhile, the
spike in commodity prices has unleashed a surge in inflation when
many countries were starting to run up against capacity
constraints and overheat after years of rapid monetary and GDP
growth.  Inflation has been highest in countries with fixed or
managed exchange rates including the Baltic States, Bulgaria
("BBB"), Kazakhstan ("BBB"), Russia and Ukraine ("BB-"); and best
contained in the inflation-targeting central European economies.
High and volatile inflation increases the risk of exchange rate
and banking crises, and reduces debt tolerance.

Substantial CADs are a significant credit concern across much of
EE - and one that has been heightened by the credit crunch.  This
was the primary reason Fitch revised the rating Outlooks to
Negative from Stable on Bulgaria, Estonia, Latvia and Romania
("BBB") in January, following Lithuania ("A") in December.  In the
report, Fitch has constructed an index of relative vulnerability
to external financing pressures, based on its projections of CA
balance plus FDI, external debt repayments due this year and net
external debt stocks.  Latvia, Croatia ("BBB-"), Lithuania, Turkey
("BB-"), Estonia, Bulgaria and Romania come out as most vulnerable
on this measure.

EE sovereign external bond issuance at US$14 billion year-to-date
has already surpassed last year's total of US$13 billion.
However, although private sector external bond issuance picked up
in H108 on H207, it is still well below pre-credit crunch volumes.
The rapid pace of bank credit growth in the region is slowing, but
remains elevated in parts of the CIS and Balkans.  Foreign parent
banks should continue to support access to funding and confidence
in local banks, but there is a tail risk that a worsening of the
international credit crunch could trigger a fall in the
availability of their financing to EE banks.

The war between Russia and Georgia, and Russia's tense relations
with many of its neighbors and the West has added another layer of
risk to the region at an inopportune time.  Aside from Georgia,
which is on a Negative Outlook, Fitch does not currently expect
these developments to trigger any rating changes for Russia or
other countries.  However, this is not impossible should events
lead to a marked reduction in FDI and other capital inflows,
seriously disrupt trade and economic activity, heighten domestic
political instability or heat up other post-Soviet frozen
conflicts.


* S&P Reports Portuguese RBMS Index Up 0.86% in 2nd Quarter 2008
----------------------------------------------------------------
Severe delinquencies in Standard & Poor's Ratings Services'
Portuguese RMBS index increased to 0.86% during the second
quarter 2008, continuing the increases witnessed in the first
quarter, according to S&P's index report for that sector.

The second quarter increases were largely due to the constant
transition of delinquent loans to defaulted loans, rather than as
a consequence of a higher level of arrears.

Most Portuguese RMBS loans are linked to floating rates, so a
monthly householder's burden to repay their debt is quite
sensitive to rises in interest rates.  The current interest rate
environment continues to put pressure on borrowers, although it
is not creating a higher level of new arrears, as it did during
2007.

The three-month EURIBOR rate has been increasing over the past
six months to 4.94% at the end of the second quarter, up from
4.49% in January 2008.

While delinquencies continued to rise, S&P's prepayment index
dropped to 8.92% in second quarter.  After the peak reached in
December 2007, driven by lower prepayment costs, S&P expects that
the prepayment rate in the Portuguese RMBS index will stabilize
in the near future.


* BOND PRICING: For the Week Aug. 25 to Aug. 29, 2008
-----------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

AUSTRIA
-------
Kommunal Kredit
  Austria AG              0.500    03/15/19     CAD      66.70
                          0.250    10/14/26     CAD      40.62
Immofinanz Immobilien     2.750    01/20/14     EUR      67.72
Republic of Austria       1.000    06/22/22     EUR      70.23
                          0.000    10/10/25     EUR      62.84
BELGIUM

Fortis Bank               8.750    12/07/10     EUR      54.34

FINLAND
-------
M-Real Serla              7.250    04/01/13     EUR      66.50
Muni Finance PLC          0.500    04/26/13     AUD      74.64
                          1.000    10/30/17     AUD      61.46
                          1.000    02/27/18     AUD      60.57
                          1.000    11/21/16     NZD      63.89
                          0.250    06/28/40     CAD      21.36
                          0.500    09/24/20     CAD      62.94

FRANCE
------
Alcatel S.A.              4.750    01/01/11     EUR      14.92
Altran Technologies S.A.  3.750    01/01/09     EUR      12.74
Calyon                    6.000    06/18/47     EUR      49.25
CAP Gemini S.A.           2.500    01/01/10     EUR      53.44
                          1.000    01/01/12     EUR      46.90
Club Mediterranee S.A.    3.000    11/01/08     EUR      68.12
                          4.380    11/01/10     EUR      46.41
Essilor Intl              1.500    07/02/10     EUR      72.59
Europcar Groupe           8.130    05/15/14     EUR      64.83
                          8.130    05/15/14     EUR      64.54
FCC Rome Alliance
Funding                   2.260    01/08/21     EUR      71.50
Havas S.A.                4.000    01/01/09     EUR      10.90
Ingenico                  2.750    01/01/12     EUR      15.89
Maurel & Prom             3.500    01/01/10     EUR      21.18
Publicis Group            1.000    01/18/18     EUR      41.88
Rhodia S.A.               0.500    01/01/14     EUR      35.68
Scor S.A.                 4.125    01/01/10     EUR       2.10
Soc Air France            2.750    04/01/20     EUR      21.57
St Gobain                 5.630    11/15/24     GBP      78.53
Tereos Europe             6.380    04/15/14     EUR      74.33
Theolia S.A.              2.000    01/01/14     EUR      17.92
Wavecom S.A.              1.750    01/01/14     EUR      18.19
Wendel Invest S.A.        2.000    06/19/09     EUR      43.94
                          4.380    08/09/17     EUR      66.60
                          4.880    09/21/15     EUR      74.23
                          4.880    05/26/16     EUR      72.66

GERMANY
-------
Deutsche BK London        3.250    05/18/12     CHF      74.03
Deutsche Schifbk          4.200    01/23/09     EUR      99.64
IKB Deutsche
   Industriebank AG       4.500    07/09/13     EUR      71.10
                          5.670    02/27/23     EUR      56.51
                          5.580    03/31/18     EUR      62.14
                          5.760    03/31/23     EUR      57.00
KfW Bankengruppe          1.250    07/07/20     EUR      73.99
                          0.500    12/19/17     EUR      69.22
                          1.250    07/21/25     EUR      66.96
                          1.250    05/23/20     EUR      74.52
                          2.810    08/10/30     EUR      66.75
                          5.000    09/01/25     EUR      72.69
                          1.250    07/29/20     EUR      72.87
                          0.500    10/30/13     AUD      72.48
Landeskreditbank Baden-
   Wuerttemberg Foerderbk 0.500    05/10/27     CDN      44.89
Landwirtschaftliche
   Rentenbank AG          1.000    03/29/17     NZD      62.55
Solon AG Solar            1.380    12/06/12     EUR      71.64


ICELAND
-------
Glitnir Banki HF          6.000    03/05/12     GBP      74.56
Kaupthing Bank            6.500    02/03/45     EUR      41.75
                          1.990    07/05/12     JPY      72.70
                          6.130    10/04/16     US$      70.69

IRELAND
-------
Banesto Finance Plc       6.120    11/07/37     EUR       6.12
Depfa ACS Bank            0.500    03/03/25     CDN      49.28
                          0.250    07/08/33     CDN      29.14
Irish Nationwide
  Building Society        5.500    01/10/18     GBP      67.14
Irish Perm Plc            2.500    02/15/35     EUR      49.99
Ono Finance II            8.000    05/16/14     EUR      68.45

ITALY
-----
Alitalia SPA              7.500    07/22/10     EUR      65.60
Risanamento S.p.A.        1.000    05/10/14     EUR      28.77
Telecom Italia            5.250    03/17/55     EUR      71.88
IGD                       2.500    06/28/12     EUR      73.80

LUXEMBOURG
----------
Cirio Finance             7.500    11/03/02     EUR      15.36
Global Yatirim Holding    9.250    07/31/12     US$      74.57
Globus Capital Finance SA 8.500    03/05/12     US$      74.14
IT Holding Fin            9.880    11/15/12     EUR      59.53
Kloeckner Fin. Intl       1.500    07/27/12     EUR      71.42
Lighthouse International  8.000    04/30/14     EUR      73.95
Nell AF S.A.              8.380    08/15/15     EUR      61.06
                          8.380    08/15/15     US$      60.02

NETHERLANDS
-----------
ABN Amo Bank B.V.         6.000    03/16/35     EUR      65.09
Air Berlin Finance B.V.   1.500    04/11/27     EUR      28.17
ALB Finance BV            9.250    09/25/13     US$      70.75
                          9.750    02/14/11     GBP      75.93
                          7.880    02/01/12     EUR      71.55
                          9.250    09/25/13     US$      70.39
BK Ned Gemeenten          0.500    06/27/18     CDN      68.16
                          0.500    02/24/25     CDN      49.32
BLT Finance BV            7.500    05/15/14     US$      68.36
Elec De Car Fin         8.500    04/10/18     US$      74.37
EM.TV Finance B.V.        5.250    05/08/13     EUR       3.84
IVG Finance B.V.          1.750    03/29/17     EUR      58.54
Kazkommerts Fin           8.500    06/13/17     US$      72.09
                          8.630    07/27/16     US$      74.50
Kazkommerts Intl          7.500    11/29/16     US$      71.85
                          7.500    11/29/16     US$      72.82
                          6.880    02/13/17     EUR      70.35
Lehman Bros TSY B.V.      6.000    02/15/35     EUR      47.63
                          2.000    03/18/15     EUR      73.35
                          2.000    02/16/15     EUR      74.71
                          7.250    10/05/35     EUR      34.13
                          6.000    11/02/35     EUR      37.93
                          7.000    05/17/35     EUR      41.73
                          2.000    03/16/35     EUR      38.91
                          3.440    11/26/13     EUR      67.78
Montell Finance B.V.      8.100    03/15/27     US$      51.29
Natl Invester Bank       25.982    05/07/29     EUR      32.24
Ned Waterschapbk          6.000    06/01/35     EUR      60.58
                          6.500    08/15/35     EUR      56.80
                          6.000    06/30/45     EUR      53.86
NXP BV/NXP FUNDI          8.630    10/15/15     EUR      65.33
                          9.500    10/15/15     US$      69.25
                          8.630    10/15/15     EUR      65.25
Rabobank Groep N.V.       2.500    02/22/35     EUR      59.07
                          6.000    05/09/35     EUR      60.47
                          2.000    03/23/35     EUR      56.60
                          5.000    02/28/35     EUR      61.71
Tjiwi Kimia Finance BV   13.250    08/01/01     US$       0.13
Turanalem Fin BV          8.250    01/22/37     US$      73.48
                          8.250    01/22/37     US$      74.09

NORWAY
------

Norske Skogindustrier ASA 7.000    06/26/17     EUR      64.63

SPAIN
-----
Bancaja                   4.380    02/14/17     EUR      83.71
                          4.250    05/26/13     EUR      88.33

SWEDEN
------
Stena AB                  5.880    02/01/19     EUR      75.00

SWITZERLAND
-----------
Cytos Biotechnology       2.880    02/20/12     CHF      72.13
Swiss RE                  6.000    12/15/08     CHF      71.73

UNITED KINGDOM
--------------

Anglian Water
   Finance Plc            2.400     04/20/35    GBP      52.52
Aspire Defence            4.670     03/31/40    GBP      66.01
                          4.670     03/31/40    GBP      66.08
Bank of Scotland          6.000     02/07/35    EUR      47.51
                          0.000     02/22/17    EUR      61.49
Bradford&Bin BLD          5.750     12/12/22    GBP      65.67
                          6.630     06/16/23    GBP      65.30
Brit Insurance            6.630     12/09/30    GBP      77.62
Britannia Building
   Society                5.880     03/28/33    GBP      72.14
                          5.750     12/02/24    GBP      75.50
Enterprise Inns           6.380     09/26/31    GBP      70.28
F&C Asset Management plc  6.750     12/20/26    GBP      71.96
Grainer Plc               3.630     05/17/14    GBP      56.79
Hammerson Plc             6.000     02/23/26    GBP      75.51
HBOS Plc                  4.500     03/18/30    EUR      73.68
HSBC Bank Plc             3.750     05/18/15    EUR10235936.44
Ineos Group Holdings Plc  7.880     02/15/16    EUR      61.29
                          7.880     02/15/16    EUR      61.49
                          8.500     02/15/16    US$      65.51
Jaztel Plc                5.000     04/29/10    EUR      74.54
Louis No1 Plc            10.000     12/01/16    EUR      69.42
                          8.500     12/01/14    EUR      71.50
National Grid Gas Plc     1.750     10/17/36    GBP      43.18
                          1.770     03/30/37    GBP      43.17
Pipe Holding PLC          9.750     11/01/13    GBP      65.40
Progress Health           5.580     10/02/42    GBP      71.65
Punch Taverns             6.470     04/15/33    GBP      71.24
Royal BK Scotland         9.500     04/04/25    US$      65.89
Slough Estates plc        5.750     06/20/35    GBP      72.88
Taylor Woodrow            6.380     05/24/19    GBP      54.04
                          6.630     02/07/12    GBP      52.57
TXU Eastern Funding       6.450     05/15/05    US$       0.01
Unique Pub Fin         6.460     03/30/32    GBP      70.86


                            *********

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 V. 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.


                 * * * End of Transmission * * *