TCREUR_Public/080922.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 22, 2008, Vol. 9, No. 188

                            Headlines

A U S T R I A

HERRENAUSSTATTER KIRCHBAUMER: Claims Filing Period Ends Sept. 30
JAKOB TURNER: Claims Registration Period Ends October 6
JAKOB TURNER & CO: Claims Registration Period Ends October 6
MALERBETRIEB GUSTAV: Claims Registration Period Ends October 8
SIRENETTA RESTAURANT: Claims Registration Period Ends October 7


B E L G I U M

PORTOLA: Gets Initial OK to Use GECC's US$75 Mil. Facility


F R A N C E

DELPHI CORP: Chapter 11 Examiner Will Cause Delay, Committee Says
DELPHI CORP: Equity Panel Taps Farrell Fritz as Conflicts Counsel
DELPHI CORP: Joseph Firm to Step Down as Equity Panel Counsel
EUROPCAR GROUPE: S&P Shifts BB- Credit Rating Outlook to Negative


G E O R G I A

* GEORGIA: IMF Approves US$750 Million Stand-By Arrangement


G E R M A N Y

A+O PROJEKT: Claims Registration Period Ends September 30
ACS HAUS: Claims Registration Period Ends September 30
ALPHA-KLINIK FUER: Claims Registration Period Ends September 30
ANUBIS-WELTREISEN: Claims Registration Period Ends September 30
ARCHITEKTUR GMBH: Creditors' Meeting Slated for September 30

BENNKO BAU GMBH: Claims Registration Period Ends September 30
BOMBARDIER INC: Ends Learjet Development Agreement with Grob
DUERR AG: Improved Liquidity Cues S&P to Lift Credit Rating to B+
KOS PLANUNGS: Claims Registration Period Ends Sept. 30
LEHMAN BROTHERS: German Finance Ministry Questions KfW Transfer

MAX-LEUCHTEN GMBH: Claims Registration Period Ends Sept. 30
NACHRICHTENTECHNISCHE SYSTEM: Claims Filing Period Ends Sept. 30
WESTLB AG: Says Slightly Affected by Lehman Chapter 11 Filing


I T A L Y

ALITALIA SPA: Lone Bidder Walks Away on Unresolved Rescue Plan


K A Z A K H S T A N

ADJAMAL LLP: Creditors Must File Claims by November 12
ALBA CORPORATION: Claims Deadline Slated for November 12
CRAGE ENERGY: Claims Filing Period Ends November 12
DELTABANK: Moody's Assigns E+ Bank Financial Strength Rating
KAPOLIGRAF JSC: Creditors' Claims Due on November 12

OIMAUYT LLP: Claims Registration Ends November 12
ROS SHYN: Creditors Must File Claims by November 12
STARLINE TOUR: Claims Deadline Slated for November 12
T. T. CORPORATION: Claims Filing Period Ends November 11
TARAZ STROY: Creditors' Claims Due on November 12

K Y R G Y Z S T A N


TRANS-MAGISTRAL LLC: Creditors Must File Claims by Nov. 3


N E T H E R L A N D S

TRONOX INC: FMR LLC Discloses Minimal Equity Stake
TRONOX INC: S&P Lowers Corporate Credit Rating to CCC- from CCC+


R U S S I A

AGRO-DON-SERVICE-STROY: Creditors Must File Claims by November 4
ASTRA PLUS: Creditors Must File Claims by October 4
BASH-NEFTE-PROM-STROY: Creditors Must File Claims by October 4
EVROBALTIYA OJSC: Creditors Must File Claims by October 4
PLANT OF REINFORCED: Creditors Must File Claims by October 4

RUBTSOV-ENERGO-STROY: Creditors Must File Claims by October 4
TRADEMAKS LLC: Moscow Bankruptcy Hearing Set December 9
VAGON-ZHIL-STROY: Creditors Must File Claims by October 4

* Fitch: Russia's Investment Notion Could Lead to Liquidity Woes
* RUSSIA: Biz Leaders Doubt Efforts to Stabilize Markets


S P A I N

TDA 26: Fitch Affirms Ratings on Two Note Classes at 'CCC'
TDA 29: Fitch Affirms Rating on Class D Notes at 'CCC'


S W E D E N

FORD MOTOR: Urges Congress to Fund US$25BB Loan Program


S W I T Z E R L A N D

GAAZ WINTERTHUR: Creditors Have Until Oct. 22 to File Claims
GENERAL MOTORS: Urges Congress to Fund US$25BB Loan Program
GENERAL MOTORS: May Issue Securities to Raise Funds
GROB AEROSPACE: Bombardier Ends Learjet Development Agreement
KOECHLIN BAUMGARTNER: Oct. 31 Set as Deadline to File Claims

MANGOLD WASTE: Creditors Must File Proofs of Claim by Oct. 31
R. BADER JSC: Deadline to File Proofs of Claim Set Oct. 31
REMATON JSC: Proofs of Claim Filing Deadline is Oct. 15
WABRENT LLC: Creditors' Proofs of Claim Due by Oct. 10


T U R K E Y

* S&P Sees Little Progress in Turkish Transparency & Disclosure


U K R A I N E

BIG LINE: Creditors Must File Claims by September 25
BOTIYEVSKOYE BREADRECEIVING: Claims Filing Period Ends Sept. 26
FACTOR CJSC: Creditors Must File Claims by Sept. 26
FAREZ LLC: Creditors Must File Claims by Sept. 25
KADUTSEY-ARMA: Creditors Must File Claims by September 25

KARPATBUILDING: Creditors Must File Claims by Sept. 25
KOLOS-K LLC: Creditors Must File Claims by September 25
LEGION SPORT: Creditors Must File Claims by September 25
MICHURIN AGRICULTURAL: Creditors Must File Claims by Sept. 25
SLAVIANKA LLC: Creditors Must File Claims by September 27

WESTRESOURCE LLC: Creditors Must File Claims by September 26
YUTOR LLC: Creditors Must File Claims by Sept. 26


U N I T E D   K I N G D O M

FAMOUSCHALLEN LTD: Brings in Liquidators from Vantis
GOLFIZUS LTD: Claims Filing Period Ends December 4
HURSTWOOD DEVELOPMENTS: Goes Into Administration
HURSTWOOD FACILITIES: Goes Into Administration
INGRAM MICRO: Economic Softness to Continue in September

IRP REALISATIONS: Calls in Liquidators from BDO Stoy Hayward
LEHMAN BROTHERS: Gets Interim OK to Borrow US$200MM from Barclays
LEHMAN BROTHERS: US$138BB in Advances by JPMorgan Is Secured
LEHMAN BROTHERS: To Sell Investment Mgmt Unit to Bain, Hellman
LEHMAN BROTHERS: SIPC Does Not Expect Liquidation

LEHMAN BROTHERS: U.S. Trustee Appoints Panel, RR Donnelly Quits
LEHMAN BROTHERS: 3 Directors Dispose of Company Shares
LEHMAN BROTHERS: Linklaters Advises Administrator PwC
LEHMAN BROTHERS: Case More Complex Than Enron's, PwC States
LEHMAN BROTHERS: UK Staff May Not Get Paid, Administrator Says

LEHMAN BROTHERS: To Sell US$8MM Stake in Guyana Hotel by Year-End
LEHMAN BROTHERS: Japan Banks, Insurers Have US$2.3BB Exposure
LEHMAN BROTHERS: Asian Unit Quits as Citic Privatization Advisor
LEHMAN BROTHERS: S&P Cuts Ratings on 11 Securities Transactions
LEHMAN BROTHERS: S&P Cuts Five Ratings and Puts Under Dev. Watch

MORGAN STANLEY: In Merger Talks with Wachovia
SEA CONTAINERS: Files Amended Plan and Disclosure Statement
SEA CONTAINERS: SCL Panel, et al., Balk at Disclosure Statement
VICTORIA CAVENDISH: Joint Liquidators Take Over Operations
WEARSIDE MARBLE: Taps Liquidators from Tenon Recovery

* S&P Drops Ratings on Various European Leveraged Super Sr. Notes
* European Construction Biz Diversifies to Cope Crunch, S&P Says
* Fitch Weighs Latent Rating Impact of Lehman's Bankruptcy on CDOs
* UK: ECB and Bank of England Inject Billions to Stabilize Markets

* BOND PRICING: For the Week Sept. 15 to Sept. 19, 2008


                         *********



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


HERRENAUSSTATTER KIRCHBAUMER: Claims Filing Period Ends Sept. 30
----------------------------------------------------------------
Creditors owed money by LLC Herrenausstatter Kirchbaumer have
until Sept. 30, 2008, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Gerhard Kucher
         St. Veiter Strasse 9
         9020 Klagenfurt
         Austria
         Tel: 0463/507510 Serie
         Fax: 0463/507510-11
         E-mail: rechtsanwalt@kucher-moessler.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Oct. 7, 2008, for the
examination of claims at:

         The Land Court of Klagenfurt
         Meeting Room 225
         Second Floor
         Klagenfurt
         Austria

Headquartered in Klagenfurt, Austria, the Debtor declared
bankruptcy on Sept. 2, 2008, (Bankr. Case No. 40 S 54/08v).


JAKOB TURNER: Claims Registration Period Ends October 6
-------------------------------------------------------
Creditors owed money by LLC Jakob Turner have until Oct. 6, 2008,
to file written proofs of claim to the court-appointed estate
administrator:

         Dr. Gerd Kapeller
         Kardinalschuett 9
         9020 Klagenfurt
         Austria
         Tel: 0463/59 09 46
         Fax: 0463/59 09 46-11
         E-Mail: kapeller.gerd@utanet.at

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

         The Land Court of Klagenfur
         Meeting Room 225
         Second Floor
         Klagenfur
         Austria

Headquartered in Klagenfurt, Austria, the Debtor declared
bankruptcy on Sept. 3, 2008, (Bankr. Case No. 41 S 93/08m).


JAKOB TURNER & CO: Claims Registration Period Ends October 6
------------------------------------------------------------
Creditors owed money by LLC Jakob Turner & Co KG have until
Oct. 6, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Gerd Kapeller
         Kardinalschuett 9
         9020 Klagenfurt
         Austria
         Tel: 0463/59 09 46
         Fax: 0463/59 09 46-11
         E-mail: kapeller.gerd@utanet.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Oct. 13, 2008, for the
examination of claims at:

         The Land Court of Klagenfur
         Meeting Room 225
         Second Floor
         Klagenfur
         Austria

Headquartered in Klagenfurt, Austria, the Debtor declared
bankruptcy on Sept. 3, 2008, (Bankr. Case No.  41 S 92/08i).


MALERBETRIEB GUSTAV: Claims Registration Period Ends October 8
--------------------------------------------------------------
Creditors owed money by LLC Malerbetrieb Gustav Huber have until
Oct. 8, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Clemens Richter
         Esteplatz 4
         1030 Wien
         Austria
         Tel: 01/712 33 30
         Fax: 01/712 33 30 30
         E-mail: engelhart@csg.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 1:45 p.m. on Oct. 22, 2008, for the
examination of claims at:

         The Land Court of Korneuburg
         Room 204
         Second Floor
         Korneuburg
         Austria

Headquartered in Bruck an der Leitha, Austria, the Debtor declared
bankruptcy on Sept. 3, 2008, (Bankr. Case No. 36 S 100/08k).


SIRENETTA RESTAURANT: Claims Registration Period Ends October 7
---------------------------------------------------------------
Creditors owed money by LLC Sirenetta Restaurant have until
Oct. 7, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Friedrich Nusterer
         Riemerplatz 1
         3100 St. Poelten
         Austria
         Tel: 02742/47087
         Fax: 02742/47089
         E-mail: ra-nusterer@aon.at

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

         The Land Court of St. Poelten
         Room 216
         Second Floor
         Old Building
         St. Poelten
         Austria

Headquartered in Herzogenburg, Austria, the Debtor declared
bankruptcy on Sept. 2, 2008, (Bankr. Case No. 14 S 133/08m).


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


PORTOLA: Gets Initial OK to Use GECC's US$75 Mil. Facility
----------------------------------------------------------
The Hon. Christopher S. Sontchi of the United States Bankruptcy
Court for the District of Delaware authorized Portola Packaging
Inc. and its debtor-affiliates to obtain, on an interim basis,
up to US$75,000,000 in debtor-in-possession financing from (i) GE
Capital Markets Group Inc., as syndication agent, and General
Electric Capital Corporation, as administrative and collateral
agent, and (ii) Wayzata Investment Partners LLC, as administrative
and collateral agent.  He also authorized the Debtors to use cash
collateral securing repayment of secured loan to the lenders.

A hearing is set for Sept. 22, 2008, at 4:00 p.m., to consider
final approval of the Debtors' motion.

The Debtors told the Court that the lenders agreed to provide up
to US$79,000,000 in financing, on a final basis.  The committed
US$79,000,000 consists of (i) a US$50,000,000 million in
postpetition financing under the fifth amended and restated senior
postpetition credit agreement dated Aug. 27, 2008, between the
Debtors and GECC, and (ii) a US$79,000,000 less the GECC payoff
amount under the second amended and restated postpetition credit
agreement dated Aug. 27, 2008, among the Debtors and Wayzata.

As of their bankruptcy filing, the Debtors owe at least
US$48,306,767 plus accrued and unpaid interest of US$239,126 to
GECC and US$22,500,000 plus accrued and unpaid interest of
US$329,000 to Wayzata.

Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP,
said that the Debtors have an immediate need to obtain the DIP
financing and use cash collateral to permit the Debtors to, among
other things:

-- continue to operate their businesses;

-- maintain business relationships with vendors, suppliers and
    customers;

-- pay employee wages in the ordinary course;

-- make necessary capital expenditures;

-- satisfy other working capital and operational needs; and

-- make intercompany transfers to non-debtor affiliates for
    similar purposes.

Under the first lien DIP financing agreement, the DIP loan will
incur a variable rate of 2.5% per annum plus a floating rate equal
to the higher of (i) the rate publicly quoted from time to time by
The Wall Street Journal as the "base rate on corporate loans
posted by at least 75% of the nation's 30 largest banks" and (ii)
the Federal Funds Rate plus 50 basis points per annum.  Under the
second lien DIP financing agreement, the DIP loan will accrue
interest at 12.0%.  Furthermore, the DIP liens will incur default
rate of interest at 2.0% in excess of the rates otherwise payable,
after the occurrence and during the continuance of an event of
default.

Furthermore, the DIP liens are subject to US$1,250,000 carve-out
for payment of fees, expenses and costs of professionals retained
by the Debtors or the committee.

To secure their DIP obligations, the lenders will be granted
allowed superpriority administrative expense claims over any and
all other administrative claims against the Debtor pursuant to
Section 364(c)(1) of the Bankruptcy Code.

The DIP credit agreements contain customary and appropriate events
of default including, among other things, failure to make required
payments, default under other debt agreements, and breach of
covenants and warranties.

A full-text copy of the Second Amended and Restated Senior
Postpetition Credit Agreement dated Aug. 27, 2008, is available
for free at http://ResearchArchives.com/t/s?3227

A full-text copy of the Fifth Amended and Restated Senior
Postpetition Credit Agreement dated Aug. 27, 2008, is available
for free at http://ResearchArchives.com/t/s?3228

A full-text copy of the the 13 Week Cash Flow Budget is available
for free at http://ResearchArchives.com/t/s?3229

                     About Portola Packaging

Portola Packaging Inc. -- http://www.portpack.com/-- 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.  The company and 6 of its debtor-affiliates
filed for Chapter 11 reorganization on Aug. 27, 2008 (Bankr. D.
Del. Lead Case No. 08-12001).  Edmon L. Morton, Esq., Robert S.
Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway,
Stargatt & Taylor, represent the Debtors as counsel.  When the
Debtors filed for protection from their creditors, they listed
assets of between US$50 million and US$100 million, and debts of
between US$100 million and US$500 million.  The company has
locations in China, Mexico and Belgium.


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


DELPHI CORP: Chapter 11 Examiner Will Cause Delay, Committee Says
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Delphi Corp.'s
bankruptcy case asserts that the United States Bankruptcy Court
for the Southern District of New York is not required to appoint
an examiner in the Chapter 11 cases under Section 1104(c) of the
Bankruptcy Code because a plan of reorganization has already been
confirmed by the Court.

CR Intrinsic Investors, LLC and Highland Capital Management,
L.P.'s request is not supported by the terms of the statute or by
any case law, asserts Robert J. Rosenberg, Esq., at Latham &
Watkins LLP, in New York.

The Committee asserts that while the Court has the discretion to
appoint an examiner at this time notwithstanding Section 1104(c),
it should not exercise that discretion here.

Mr. Rosenberg contends that the downside to appointing an
examiner at this stage vastly outweighs the upside.  He argues
that an examiner would simply distract all parties from dealing
with the important matters at hand in the Chapter 11 cases.

The Committee asserts that the current focus of the cases is the
Debtors' request to enter into amendments to the Global
Settlement Agreement and a Master Restructuring Agreement with
General Motors Corporation.  Mr. Rosenberg points out that
because the Debtors seek in that motion to grant GM an
administrative expense claim measured in the billions of dollars
and a general release, the determination of what recoveries
general unsecured creditors might receive will hinge on the
outcome of that motion, regardless of whether or not an examiner
is appointed.  "An examiner is therefore likely only to cause
delay and increase expenses without providing any benefit to the
Debtors or their creditors."

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


DELPHI CORP: Equity Panel Taps Farrell Fritz as Conflicts Counsel
-----------------------------------------------------------------
The Official Committee of Equity Holders in Delphi Corp.'s
bankruptcy case seeks authority from the United States Bankruptcy
Court for the Southern District of New York, pursuant to Sections
328 and 1103 of the Bankruptcy Code, and Rule 2014 of the Federal
Rules of Bankruptcy Procedure, to retain Farrell Fritz, P.C., as
conflicts counsel.

Representing the Equity Committee, Bonnie Steingart, Esq., at
Fried, Frank, Harris, Shriver & Jacobson LLP, in New York,
narrates in Court that the Equity Committee's intent to retain
Farrell Fritz stems from A-D Acquisition Holdings, LLC's,
question whether Fried Frank was conflicted from further
representation of the Equity Committee on matters in which the
Committee was potentially adverse to the Plan Investors due to
its representation of Appaloosa on matters unrelated to the
Chapter 11 cases.

This led to the retention of the Gregory P. Joseph Law Offices as
conflicts counsel for the Equity Committee, which it sought and
obtained on November 9, 2007, pursuant to Sections 328 and 1103
of the Bankruptcy Code, Mr. Steingart recalls.  On May 16, 2008,
the Debtors filed an adversary proceeding against the Plan
Investors.  Since then, the Joseph firm has been actively
involved in the adversary proceeding on the Equity Committee's
behalf.

For reasons unrelated to any substantive aspects of its
representation of the Committee, and no current conflicts have
arisen in connection with the Joseph Firm's representation, it
notified the Equity Committee of its firm desire to withdraw as
conflicts counsel.

After discussing the terms and conditions of the withdrawal, the
Equity Committee consented to the Joseph Firm's withdrawal
provided that the Equity Committee was able to obtain this
Court's authorization to retain a substitute conflicts counsel
and that the Joseph Firm would cover the costs associated with
the transition to substitute conflicts counsel and not seek
reimbursement of any amount from the Debtors.

To ensure that the Equity Committee continues to have conflicts
counsel to represent them in the mediation and litigation with
the Plan Investors, the Equity Committee intends to retain
Farrell Fritz to replace the Joseph Firm as conflicts counsel.

Farrell Fritz is expected to render legal services in matters
that may not be handled by Fried Frank due to conflicts of
interest.  As conflicts counsel to the Equity Committee, Farrell
Fritz's responsibilities will include representing the Equity
Committee in matters where Fried Frank has a conflict of interest
or is otherwise unable to represent the Equity Committee.  Those
matters will include any legal services in connection with the
pending litigation against the Plan Investors.

The Equity Committee seeks to retain Farrell Fritz as its
conflicts counsel because Farrell Fritz has extensive experience
in the fields of business and financial litigation, bankruptcy
and creditors' rights.  Furthermore, Farrell Fritz's practice,
which also includes banking and finance, corporate, securities
and mergers and acquisitions, will permit it to fully represent
the interest of the Equity Committee in an efficient and
effective manner.  The Equity Committee believes that Farrell
Fritz is well-qualified and uniquely able to represent the Equity
Committee effectively in these Chapter 11 Cases, Mr. Steingart
relates.

Farrell Fritz has not received a retainer.  The firm will be
compensated on an hourly basis and will be reimbursed for actual,
necessary out-of-pocket expenses incurred in performing services.
Farrell Fritz's rates are:

  Professional                    Hourly rate
  ------------                    -----------
  Louis A. Scarcella                     US$575
  Ted A. Berkowitz                        575
  Law clerks/paralegals             75 to 225
  Associates                       250 to 360
  Partners                         425 to 595
  Counsel                          335 to 650

Louis A. Scarcella, a member of Farrell Fritz, assures the Court
that her firm does not hold or represent any interest adverse to
and has no connection with the Equity Committee, the Debtors,
their creditors or any party-in-interest in matters upon which
Farrell Fritz is to be retained.  The Equity Committee also
believes that Farrell Fritz is a "disinterested person" as that
phrase is defined in Section 101(14) of the Bankruptcy Code.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


DELPHI CORP: Joseph Firm to Step Down as Equity Panel Counsel
-------------------------------------------------------------
The Gregory P. Joseph Law Offices LLC seeks permission from the
United States Bankruptcy Court fort the Southern District of New
York to withdraw as conflict counsel for the Official Committee of
Equity Security Holders in Delphi Corp.'s bankruptcy cases,
including as counsel in the adversary proceedings between Delphi
and Appaloosa Management L.P., et al.

Peter R. Jerdee, Esq., a member of the Joseph Firm, relates that
the firm has requested to end its representation for reasons
unrelated to any substantive aspects of its representation of the
Committee, and no current conflicts have arisen in connection
with the Joseph Firm's representation.

After due consideration, the Equity Committee acquiesced to the
Joseph Firm's request, provided that the Committee first obtain
and put in place replacement counsel and that the Joseph Firm
cover the costs associated with the transition to replacement
counsel.

Mr. Jardee asserts (i) "good cause" is established by the
Committee's consent to the firm's withdrawal and because its
interests will be fully protected by successor counsel, (ii) the
Committee will not be prejudiced by the Joseph Firm's withdrawal
as conflict counsel; and (iii) the Joseph Firm has made
appropriate arrangements with the Committee and its successor
counsel to ensure that the Debtors' estates do not incur any
incremental cost as a result of the withdrawal.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


EUROPCAR GROUPE: S&P Shifts BB- Credit Rating Outlook to Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised the outlook on its
'BB-' long-term corporate credit ratings on France-based car
rental company Europcar Groupe S.A. to negative from stable.

"The outlook revision reflects Europcar's weaker earnings
expectations over the short to medium term.  S&P believes the
company will find it difficult to maintain its credit metrics at
the current levels, which are currently weak for the rating
category," said S&P's credit analyst Anna Stegert.

Europcar is the leading car rental firm in Europe.  The company
posted relatively solid second-quarter results, but like its
competitors stated that economic conditions had become
increasingly challenging and are likely to lead to slowing revenue
growth and reduced earnings.

About one-third of the company's revenues come from cyclical
airport-related business that is likely to be affected by the
slowing growth rate of passenger flights.  Pricing held up in the
first half of 2008, with a like-for-like decrease of revenues per
day of only 0.6% at constant exchange rates.  However, this is
likely to come under further pressure if consumer demand weakens
further in Western Europe, where Europcar generates virtually all
of its revenues and earnings.

As at June 2008, the company had adjusted debt of about EUR4.1
billion, including reported debt of EUR3.5 billion and adjustments
for off-balance-sheet obligations and debt-like liabilities
amounting to about EUR600 million.  The company remains highly
leveraged, with adjusted debt to capital rising to 84% as at June
2008 from 81% at year-end 2007, reflecting the highly seasonal
nature of the business.

The negative outlook reflects the possibility of a one-notch
downgrade in the next few quarters should the company's operating
and financial performance deteriorate from the current level.  At
the 'BB-' rating level, Europcar should achieve funds from
operations to adjusted debt of at about 15%, a level comparable
to that achieved in the previous year, and debt to capital of
about 80% at year-end 2008 and beyond.


=============
G E O R G I A
=============


* GEORGIA: IMF Approves US$750 Million Stand-By Arrangement
-----------------------------------------------------------
The Executive Board of the International Monetary Fund, on
Sept. 15, 2008, approved an 18-month Stand-By Arrangement, with
total access equivalent to SDR77.1 million (about US$750 million)
to support the Georgian authorities' macroeconomic policies,
aiming to rebuild gross international reserves and bolster
investor confidence.

The SBA involves exceptional access since it would exceed limits
of 100 percent of Georgia's IMF quota annually and 300 percent of
the quota (net of scheduled repurchases) cumulatively.  An amount
equivalent to SDR161.7 million (US$250 million) will be made
available immediately, with the remaining balance distributed in
six installments over the next 18 months.

Following the Executive Board's discussion on Georgia,
Mr. Takatoshi Kato, Deputy Managing Director and Acting Chairman,
made the following statement:

"In the wake of the early-August armed conflict, Georgia has
experienced pressures on the capital account of its balance of
payments that have been reflected in a decline in international
reserves, a fall in bank deposits, and increased Eurobond spreads.
The Fund has approved an 18-month US$750 million Stand-By
Arrangement to make significant resources available to replenish
international reserves and bolster investor confidence, with the
aim of sustaining private capital inflows that have been critical
to Georgia's economic growth in recent years.  In addition to Fund
resources, Georgia is expected to receive financial assistance
from multilateral and bilateral donors and creditors in support of
the reconstruction effort.

"The program supported by the Stand-By Arrangement aims to limit
the deterioration in the external accounts by containing the
fiscal deficit, maintaining a cautious monetary policy stance, and
further strengthening the financial sector.  The immediate focus
will be on avoiding liquidity disruptions and accepting higher
fiscal spending on reconstruction.  Georgia's track record of
adjustment and reform over recent years has strengthened the
structure of the economy and its ability to deal with the economic
consequences of the shock.

"On fiscal policy, the plan is to reduce current spending in order
to free resources for relief and reconstruction. Concessional
loans and grants are expected to be provided by multilateral and
bilateral partners to supplement domestic resources in financing
further reconstruction needs, and will be accommodated within the
program's fiscal targets.

"Monetary policy will focus on providing sufficient liquidity to
the banking system while maintaining a stable exchange rate and an
adequate level of international reserves.  The program supports
the authorities' short-term policy of avoiding excessive
volatility in the exchange rate but envisages a return to a
flexible exchange rate regime.

"The banking system has been resilient to the current pressures,
and the supervisory authorities are working with banks on plans to
assess vulnerabilities and mitigate risks.  The program envisages
actions to improve the framework for managing liquidity.  It also
aims to strengthen the independence and capacity of the Financial
Supervision Agency as well as cooperation between the Agency and
the central bank,"
Mr. Kato said.

              Background and Program Summary

Georgia's near-term growth prospects have been hit by the armed
conflict in August 2008, but the economy is well placed to recover
from the shock.  The impressive record of adjustment and reform
over recent years has strengthened the structure of the economy
and its ability to deal with the economic consequences of the
shock.  Before the conflict, economic growth reached double
digits, with inflation around 10 percent.  The external current
account deficit reached 20 percent of GDP in 2007 and was fully
financed by private capital inflows, in particular foreign direct
investment.

Recent events have led to pressures on Georgia's capital account,
reflected in a decline in international reserves, a fall in bank
deposits, and increased Eurobond spreads.

The program is designed to make significant resources available in
order to replenish international reserves and bolster investor
confidence, with the aim of sustaining private capital inflows
that have been critical to Georgia's growth performance in recent
years.

The authorities' program aims to limit the deterioration in the
external accounts by containing the fiscal deficit, maintaining a
cautious monetary stance, and further strengthening the financial
sector.

On fiscal policy, the plan is to reduce current expenditures in
order to free resources for relief and reconstruction.  Currently
available financing for 2008-09 comprises the proceeds of the
US$500 million Eurobond issued this year, and privatization
receipts that will be complemented by donors' support for the
reconstruction effort.

Monetary policy will focus on providing sufficient liquidity to
the banking system while maintaining a stable exchange rate and an
adequate level of international reserves.  The program envisages
actions to strengthen the framework for providing liquidity to the
banking system, build up the capacity of the Financial Supervision
Agency (FSA), strengthen its independence, and enhance cooperation
between the central bank and the FSA.


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


A+O PROJEKT: Claims Registration Period Ends September 30
---------------------------------------------------------
Creditors of a+o projekt GmbH have until Sept. 30, 2008, to
register their claims with court-appointed insolvency manager
Edgar Groenda.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Nov. 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 Bremen
         Hall 115
         Ostertorstr. 25-31
         28195 Bremen
         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:

         Edgar Groenda
         Domshof 18-20
         28195 Bremen
         Germany
         Tel: 0421-3686-0
         Fax: 0421-3686-100
         E-mail: InsOBremen@schubra.de
         Web site: www.schubra.de

The District Court of Bremen opened bankruptcy proceedings against
a+o projekt GmbH on Sept. 1, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         a+o projekt GmbH
         Konsul-Schmidt-Str. 8f
         28217 Bremen
         Germany


ACS HAUS: Claims Registration Period Ends September 30
------------------------------------------------------
Creditors of ACS haus GmbH have until Sept. 30, 2008, to register
their claims with court-appointed insolvency manager Matthias
Dieckmann.

Creditors and other interested parties are encouraged to attend
the meeting at 8:00 a.m. on Oct. 23, 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:

         Matthias Dieckmann
         Gute Anger 11
         85356 Freising
         Germany
         Tel: 08161/988110
         Fax: 08161/82472

The District Court of Munich opened bankruptcy proceedings against
ACS haus GmbH on Aug. 12, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         ACS haus GmbH
         Liebigstr. 4
         85354 Freising
         Germany


ALPHA-KLINIK FUER: Claims Registration Period Ends September 30
---------------------------------------------------------------
Creditors of Alpha-Klinik fuer Knie- und Wirbelsaulenchirurgie
GmbH have until Sept. 30, 2008, to register their claims with
court-appointed insolvency manager Barbara Beutler.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 30, 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:

         Barbara Beutler
         Schwanthalerstr. 32
         80336 Munich
         Germany
         Tel: 089/54511-0
         Fax: 089/54511-444

The District Court of Munich opened bankruptcy proceedings against
Alpha-Klinik fuer Knie- und Wirbelsaulenchirurgie GmbH
on Aug. 1, 2008.  Consequently, all pending proceedings against
the company have been automatically stayed.

The Debtor can be reached at:

         Alpha-Klinik fuer Knie- und Wirbelsaulenchirurgie GmbH
         Effnerstr. 38
         81925 Munich
         Germany


ANUBIS-WELTREISEN: Claims Registration Period Ends September 30
---------------------------------------------------------------
Creditors of Anubis-Weltreisen Verwaltungs GmbH have until
Sept. 30, 2008, to register their claims with court-appointed
insolvency manager Heinrich Stellmach.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 30, 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 Osnabrueck
         Hall N 301
         Kollegienwall 10
         49074 Osnabrueck
         Germany

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

The insolvency manager can be reached at:

         Heinrich Stellmach
         Kollegienwall 3-4
         49074 Osnabrueck
         Germany
         Tel: 0541/1817-0
         Fax: 0541/1817210
         E-mail: osnabrueck@stellmach-broeckers.de

The District Court of Osnabrueck opened bankruptcy proceedings
against Anubis-Weltreisen Verwaltungs GmbH on Aug. 21, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Anubis-Weltreisen Verwaltungs GmbH
         Grosse Strasse 27-32
         49074 Osnabrueck
         Germany


ARCHITEKTUR GMBH: Creditors' Meeting Slated for September 30
------------------------------------------------------------
The court-appointed insolvency manager for Architektur GmbH,
Christian Koehler-Ma will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 11:25
a.m. on Sept. 30, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 11:00 a.m. on Dec. 2, 2008, at the same venue.

Creditors have until Oct. 2, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Christian Koehler-Ma
         Kurfuerstendamm 26a
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Architektur GmbH on Aug. 8, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Architektur GmbH
         Dankelmannstr. 19
         14059 Berlin
         Germany


BENNKO BAU GMBH: Claims Registration Period Ends September 30
-------------------------------------------------------------
Creditors of Bennko Bau GmbH have until Sept. 30, 2008, to
register their claims with court-appointed insolvency manager Dr.
Per Hendrik Heerma.

Creditors and other interested parties are encouraged to attend
the meeting at 10:55 a.m. on Oct. 31, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         Fourth Floor Annex
         Civil Justice Bldg.
         Sievkingplatz 1
         20355 Hamburg
         Germany

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

The insolvency manager can be reached at:

         Dr. Per Hendrik Heerma
         Jungfernstieg 50
         20354 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against Bennko Bau GmbH on Aug. 12, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Bennko Bau GmbH
         Suederstrasse 345a
         20537 Hamburg
         Germany


BOMBARDIER INC: Ends Learjet Development Agreement with Grob
------------------------------------------------------------
Bombardier Aerospace is assuming complete responsibility for the
detail design and manufacturing of all primary and secondary
structures for the all-new Bombardier Learjet 85 midsize business
jet.  Learjet has terminated its development agreement with Grob
Aerospace AG of Switzerland.

"Given the uncertainty surrounding Grob's insolvency, Learjet has
decided to terminate its agreement with Grob Aerospace, effective
Sept. 17, 2008.  Bombardier Aerospace is taking decisive action
and this decision reflects our strong commitment to both the
Learjet 85 aircraft program and to a growing number of leading
business jet customers worldwide who have selected this exciting,
all-new midsize business jet," stated Steve Ridolfi, President,
Bombardier Business Aircraft.

"Development of the Learjet 85 aircraft is now in the final stages
of a successful joint definition phase that actively involves our
suppliers.  Bombardier Aerospace is a leader in civil aircraft
development and has successfully introduced a total of 24 aircraft
programs since 1989 - we are excited about the Learjet 85 business
jet and look forward to introducing the aircraft into service,"
added Mr. Ridolfi.

           The New Learjet 85 Business Aircraft

Designed to provide a larger, more comfortable cabin than any
existing midsize aircraft, the Learjet 85 business jet will offer
eight passengers a stand-up cabin built to ensure superior
productivity and comfort.  True to its legendary heritage, the
Learjet 85 aircraft is set to deliver the extraordinary
performance, superior technology and exceptional value Learjet
aircraft owners expect.  Powered by Pratt & Whitney Canada PW307B
engines, the aircraft engines each boast 6,100 lb. (2,772 kg) of
take-off thrust, while the low-emission combuster offers reduced
environmental impact.  The clean-sheet Learjet 85 aircraft targets
a high-speed cruise of Mach 0.82 and a transcontinental range of
up to 3,000 nautical miles (5,556 km)*.

The new Learjet 85 aircraft flight deck combines advanced
technology with superior design elements for a cockpit environment
unlike any other midsize jet.  The latest in technological
advancements from Rockwell Collins –- the new Pro Line Fusion
avionics suite –- is once again paired with superior design
aesthetics to create the ultimate Learjet flight control
environment.

Learjet is the first name in corporate aviation.  Since acquiring
Learjet Inc. in 1990, Bombardier Aerospace has carried forward the
brand's proud legacy by launching eight high-performance and fuel-
efficient aircraft.

As reported in the TCR-Europe on Aug. 22, 2008, Grob Aerospace
GmbH Germany has been forced to file for insolvency in Germany.

"This unfortunate situation has arisen as a consequence of
recent delays in the spn program, resulting in the increased
requirement for cash to see the program through to
certification.  Under the circumstances, our current loan
provider has elected to discontinue their support," Grob CEO
Niall Olver said.

                     About Bombardier Inc.

Headquartered in Canada, Bombardier Inc. (TSE:BBD.B) --
http://www.bombardier.com/-- manufactures innovative
transportation solutions, from regional aircraft and business jets
to rail transportation equipment, systems and services.

The company manufactures rail equipment through its Bombardier
Transportation unit.  Bombardier Transport's Europe management
office is located in Germany.  The company also has production
facilities in France, Spain, Switzerland, Belgium, Italy,
Austria, Hungary, Czech Republic, Poland, Denmark, Sweden,
Norway an the United Kingdom.   Other production facilities are
located in Brazil, China, India and Australia.

                        *     *     *

Bombardier Inc. continues to carry Fitch's 'BB+' long-term debt
rating with stable outlook.  The rating was previously at 'BB' and
was upgraded by Fitch to its current level in May 2008.

The company also carries 'BB+' long-term corporate credit and
senior unsecured debt ratings from Standard & Poor's.  The long-
term corporate credit rating rating was previously at 'BB' and was
raised by S&P to its current level in April 2008.


DUERR AG: Improved Liquidity Cues S&P to Lift Credit Rating to B+
-----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
corporate credit rating on Germany-based auto supplier Duerr AG
to 'B+' from 'B'.  S&P also raised the debt rating on Duerr's
EUR200 million 2011 subordinated bond to 'B-' from 'CCC+'.  The
ratings were removed from CreditWatch where they were placed with
positive implications on June 18, 2008.  The outlook is stable.

"The rating action reflects Duerr's improved credit profile
following continued strengthening of its operating performance,
improved liquidity position, and a recent capital increase with
gross proceeds of about EUR44 million, which will be applied
principally for high cost debt repayments," said S&P's credit
analyst Varvara Nikanorava.  This has resulted in improved credit
measures for the last 12 months (LTM) to June 30, 2008, with
adjusted funds from operations (FFO) to debt at about 26% and
adjusted debt to EBITDA 2.9x pro forma for the equity increase-
related debt reduction.

Duerr has demonstrated a positive operating trend over the past
quarters, with a reported EBIT margin improved to 4.4% for the
LTM to June 30, 2008, from 3.8% in 2007 and 2.4% in 2006, on the
back of restructuring gains.  These margins are still relatively
low, partly because of the company's low vertical integration.
Nevertheless, this allows for relatively solid returns, with a
reported return on capital employed at 15% at year-end 2007.  S&P
expects Duerr to largely maintain credit measures in the near to
medium term, despite the challenging conditions in the underlying
automotive industry.  The company should achieve this through
ongoing operational initiatives, such as continued expansion of
more profitable and stable service business, increased production
in the lower-cost emerging markets, and more selective order
intake.  Restructuring and operational gains, as well as lower
interest charges due to the partial bond redemption should benefit
the group's free cash flow generation, which S&P expects to be
positive in 2008.

"The stable outlook reflects our expectation that, despite the
currently prevailing weak market conditions, Duerr's credit
measures should be sustainable over the near to medium term," said
Ms. Nikanorava.  "The group is likely to achieve this by its
ability to continue its good operating trend, supported by the
ongoing operating enhancements."


KOS PLANUNGS: Claims Registration Period Ends Sept. 30
------------------------------------------------------
Creditors of KOS Planungs-GmbH have until Sept. 30, 2008, to
register their claims with court-appointed insolvency manager Dr.
Jan Markus Plathner.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 30, 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 Giessen
         Hall 408
         Fourth Floor
         Building B
         Gutfleischstrasse 1
         35390 Giessen
         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. Jan Markus Plathner
         c/o Rae Brinkmann und Kollegen
         Lyoner Strasse 14
         60528 Frankfurt/Main
         Germany
         Tel: 069/9623340
         Fax: 069/96233422

The District Court of Giessen opened bankruptcy proceedings
against KOS Planungs-GmbH on Sept. 5, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         KOS Planungs-GmbH
         Schwabenroeder Strasse 5
         36304 Alsfeld
         Germany

         Attn: Hartmut Otto, Manager
         Palmenweg 5
         34560 Fritzlar
         Germany


LEHMAN BROTHERS: German Finance Ministry Questions KfW Transfer
---------------------------------------------------------------
The German Finance Ministry has questioned the transfer of EUR300
million (US$246 million) by Kfw to Lehman Brothers on the day the
U.S. bank filed for bankruptcy, demanding an explanation, Reuters
reports.

"We expect a swift explanation of such a technical failure, which
is inexplicable to us, but which will hopefully be explained
soon," Torsten Albig, a spokesman for the Finance Ministry, was
quoted by Reuters as saying.

Reuters however relates that on Tuesday Kfw declared it mistakenly
transferred the funds to Lehman.

Citing The Frankfurter Allgemeine Zeitung (FAZ) newspaper, Reuters
notes an erroneous swap payment occurred.

Meanwhile, S&P said KfW's Lehman exposure had no impact on the
German bank's credit rating, Reuters adds.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


MAX-LEUCHTEN GMBH: Claims Registration Period Ends Sept. 30
-----------------------------------------------------------
Creditors of MAX-Leuchten GmbH have until Sept. 30, 2008, to
register their claims with court-appointed insolvency manager Dr.
Michael Jaffe.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Nov. 12, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Dr. Michael Jaffe
         Franz-Joseph-Str. 8
         80801 Munich
         Germany

The District Court of Munich opened bankruptcy proceedings against
MAX-Leuchten GmbH on July 28, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         MAX-Leuchten GmbH
         Attn: Irene Schmid, Manager
         Donaustaufferstr. 8a
         80993 Munich
         Germany


NACHRICHTENTECHNISCHE SYSTEM: Claims Filing Period Ends Sept. 30
----------------------------------------------------------------
Creditors of NTS Nachrichtentechnische Systementwicklungs-GmbH
have until Sept. 30, 2008, to register their claims with court-
appointed insolvency manager Dr. Hans von Gleichenstein.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Nov. 11, 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. Hans von Gleichenstein
         Rottmannstr. 11 a
         80333 Munich
         Germany
         Tel: 089/5427300
         Fax: 089/54273015

The District Court of Munich opened bankruptcy proceedings against
NTS Nachrichtentechnische Systementwicklungs-GmbH on Aug. 13,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         NTS Nachrichtentechnische Systementwicklungs-GmbH
         Attn: Christina Benyr, Manager
         Pahlstr. 32
         81377 Munich
         Germany


WESTLB AG: Says Slightly Affected by Lehman Chapter 11 Filing
-------------------------------------------------------------
Investment Bank Lehman Brothers Holdings Inc. filing for chapter
11 protection has only limited effects on WestLB AG.

WestLB said it has no unsecured exposure in either bonds or
structured paper issued by Lehman Brothers.  The net exposure with
regard to derivative products is in the low single digit million
Euro field.  WestLB has no credit lines to Lehman Brothers.

The same situation pertains also to AIG.  WestLB also here has no
credit lines.  The net exposure with regard to derivatives also
here lies in the low single digit million Euro area.  With regard
to bonds and structured paper issued by AIG, WestLB has only an
insignificant unsecured exposure.

                         About WestLB

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

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

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

                         *     *     *

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


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


ALITALIA SPA: Lone Bidder Walks Away on Unresolved Rescue Plan
--------------------------------------------------------------
Compagnia Aerea Italiana s.r.l., a newly formed investor group
backed by Italian Prime Minister Silvio Berlusconi, withdrew its
bid to buy Alitalia SpA's healthier assets after failing to win
the support of labor unions, various reports say.

As reported in the TCR-Europe on Sept. 10, 2008, Alitalia's unions
rejected the employment contract proposed by CAI.

Under CAI's proposal:

    * pilots' vacation will be reduced from 42 to 30 days a year,
      with extra day off for every five years of service in the
      company;

    * attendants' fixed salary will be reduced by 43% while their
      variable salary will be reduced by 28%-31%;

    * flight hours per flight personnel will be reduced between
      750 and 900 hours;

    * ground personnel benefits for work during holidays, Sundays
      and nights, will be reduced; and

    * work-hour per week will pass from 37.5 to 40.

Unions described the proposal as "worst, unfeasible, and not
viable," following a meeting with the Italian government, Alitalia
and CAI.

Only three of the carrier's nine unions accepted the terms of
CAI's rescue plan.

Bloomberg News reports that on Sept. 14, the airline's four
biggest unions won an agreement from CAI to include 1,000 more
workers in the rescue plan.  However, on Sept. 18, CGIL, one of
the four largest unions, joined the remaining five unions in
pushing for more concessions, says the report.

Without an alternative in place, CAI's bid withdrawal would push
Alitalia into total collapse.  The Wall Street Journal says the
airline is now running on just EUR30 million (US$42.5 million) to
EUR50 million in cash, and loses between EUR1 million and EUR2
million every day.  Meanwhile, some analysts told Bloomberg News
that Alitalia, which is already under government bankruptcy
protection, had no choice but to liquidate.

"The most likely scenario is that the government will break up the
company and cancel contracts," Diogenis Papiomytis, a transport
analyst at Frost & Sullivan in London, was cited by Bloomberg News
as saying.  "That will have huge social costs and will probably
set off industrial action."

Moves to save the state-controlled airline became clear after the
Italian government amended its bankruptcy law to hasten the sale
of its 49.9% stake in Alitalia and it turn around, a TCR-Europe
report on Sept. 1, 2008, said.

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 allowed Alitalia to be split into two -- an oldco
and a newco.  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 also allowed Alitalia's extraordinary commissioner to sell
its assets through private talks and without holding public
auction.

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.

                          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 S.p.A. declared insolvency on Aug. 29, 2008, and filed
for commencement of extraordinary administration procedure at the
Tribunal of Rome.  Italian Prime Minister Silvio Berlusconi has
appointed Augusto Fantozzi as extraordinary commissioner.


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


ADJAMAL LLP: Creditors Must File Claims by November 12
------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Adjamal insolvent.

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

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


ALBA CORPORATION: Claims Deadline Slated for November 12
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Alba Corporation insolvent.

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

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan


CRAGE ENERGY: Claims Filing Period Ends November 12
---------------------------------------------------
LLP Crage Energy Services has declared liquidation.  Creditors
have until Nov. 12, 2008, to submit written proofs of claims to:

         LLP Crage Energy Services
         Jeleznodorojnaya Str. 1
         060002, Atyrau
         Kazakhstan
         Tel: 8 701 111 76-66


DELTABANK: Moody's Assigns E+ Bank Financial Strength Rating
------------------------------------------------------------
Moody's Investors Service assigned the following global scale
ratings to DeltaBank: B3 long-term and Not Prime short-term
foreign and local currency deposit ratings and an E+ bank
financial strength rating.  All of the bank's ratings carry a
stable outlook.

DeltaBank's E+ BFSR, which translates to a Baseline Credit
Assessment of B3, is based on the bank's fundamental credit
strength, which, in Moody's view, is constrained by its limited
franchise, significant borrower and depositor concentrations,
aggressive liquidity management and historically weak financial
performance, but underpinned by its solid capitalization and
established office presence throughout Kazakhstan.

The bank's local and foreign currency deposit ratings do not
factor in any expectation of systemic support in the event of a
stress situation, given DeltaBank's very low national market share
and relative importance to the country's banking system.  Although
support from the bank's shareholders cannot be ruled out, its
extent and timeliness are somewhat uncertain.  Consequently the
long-term deposit ratings are at the same level as the bank's B3
Baseline Credit Assessment.

In Moody's view, DeltaBank's ratings could be upgraded if it were
to succeed in improving its franchise, as well as materially
reducing its level of borrower concentration, while maintaining
reasonable capitalization and asset quality.

Conversely, a mismanagement of the bank's growth strategy that
adversely affected its liquidity and asset quality profiles or any
material losses arising from its loan book, which has until
recently been rapidly expanding, could have negative rating
implications.  A decrease in capital adequacy levels deriving from
the rapidly expanding balance sheet could also warrant a downgrade
of the bank's ratings.

Based in Almaty, Kazakhstan, DeltaBank reported total audited IFRS
assets of US$166 million and shareholders' equity of US$48 million
at year-end 2007.  The majority stake in DeltaBank was acquired by
its new private shareholders in 2007 through an injection into the
bank's capital.  The bank's current strategy is focused on
expanding its operations in even proportions across the SME,
retail and corporate segments.


KAPOLIGRAF JSC: Creditors' Claims Due on November 12
----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared JSC Kapoligraf insolvent.

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

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Satpaev Str. 22/1-56
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 777 261 87-27


OIMAUYT LLP: Claims Registration Ends November 12
-------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Oimauyt insolvent.

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

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


ROS SHYN: Creditors Must File Claims by November 12
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP Ros Shyn insolvent.

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

         The Specialized Inter-Regional
         Economic Court of Kyzylorda
         Jahayev Str. 71
         Kyzylorda
         Kazakhstan
         Tel: 8 (72422) 27-23-65


STARLINE TOUR: Claims Deadline Slated for November 12
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Starline Tour insolvent.

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

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan


T. T. CORPORATION: Claims Filing Period Ends November 11
--------------------------------------------------------
LLP Singaporean Representation of Company T. T. Corporation Pte
Ltd. has declared liquidation.  Creditors have until Nov. 11,
2008, to submit written proofs of claims to:

         LLP Singaporean Representation of Company
         T. T. Corporation Pte Ltd.
         Jarokov Str. 290-78
         Almaty
         Kazakhstan


TARAZ STROY: Creditors' Claims Due on November 12
-------------------------------------------------
LLP Taraz Stroy Techno Project has declared liquidation.
Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         LLP Taraz Stroy Techno Project
         Kazybek bi Str. 103-32
         Taraz
         Jambyl
         Kazakhstan
         Tel: 8 (7262) 43-37-01


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


TRANS-MAGISTRAL LLC: Creditors Must File Claims by Nov. 3
---------------------------------------------------------
LLC Trans-Magistral has shut down.  Creditors have until
Nov. 3, 2008, to submit written proofs of claim to:

         LLC Trans-Magistral
         Mederov Str. 44
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 54-93-33


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


TRONOX INC: FMR LLC Discloses Minimal Equity Stake
--------------------------------------------------
FMR LLC disclosed in a regulatory filing with the Securities and
Exchange Commission that it has ceased to be the beneficial owner
of more than five percent of the class of securities of Tronox
Incorporated.  FMR may be deemed to beneficially own 206,300
shares of Tronox's Class A Common Stock, which represents about
1.1% of the outstanding shares.

Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) --
http://www.tronox.com/-- is a producer and marketer of titanium
dioxide pigment.  Titanium dioxide pigment is an inorganic white
pigment used in paint, coatings, plastics, paper and many other
everyday products.  The company's five pigment plants, which are
located in the United States, Australia, Germany and the
Netherlands, supply performance products to approximately 1,100
customers in 100 countries.  In addition, Tronox produces
electrolytic products, including sodium chlorate, electrolytic
manganese dioxide, boron trichloride, elemental boron and lithium
manganese oxide.

The Troubled Company Reporter reported on Aug. 6, 2008, that
Tronox Incorporated reported a preliminary loss from continuing
operations of US$29.9 million for the second quarter ended June
30, 2008, compared with a loss from continuing operations for the
2007 second quarter of US$20.0 million.  Including discontinued
operations, net loss for the quarter was US$34.4 million, versus a
net loss of US$21.2 million in the 2007 second quarter.

On Aug. 27, the TCR reported that the company has US$1.7 billion
in total assets, including US$703.5 million in current assets, as
at June 30.  The company has US$937.8 million in current debts and
US$336.9 million in total non-current debts.


TRONOX INC: S&P Lowers Corporate Credit Rating to CCC- from CCC+
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on chemical
company Tronox Inc., including its corporate credit rating to
'CCC-' from 'CCC+'.

The ratings on Tronox remain on CreditWatch with negative
implications, where S&P placed them on July 31, 2008, following
uncertainty regarding the company's ability to comply with
financial covenants, and the appointment of an investment bank to
advise on strategic alternatives.  In addition, the CreditWatch
now reflects uncertainty related to Tronox's attempts to extend
the September 2008 maturity of a receivable securitization
program, which is an important source of liquidity.

As of June 30, 2008, Tronox had approximately US$800 million in
debt.

"The downgrade reflects heightened concern on Tronox's liquidity,
specifically related to near-term covenant compliance and its
ability to meet an upcoming interest payment in December without
covenant relief," said Standard & Poor's credit analyst Paul
Kurias.

An additional, but potential longer-range concern, relates to
Tronox's recent announcement that it received notice of a lawsuit
for the recovery of US$280 million incurred by the EPA in the
cleanup of a New Jersey wood treatment site.

Tronox's liquidity remains constrained by its covenant situation,
and by its need to refinance a US$75 million asset securitization
program, which matures on Sept. 24, 2008.  Although Tronox has
alternate sources of liquidity such as its US$250 million
revolving credit facility, which had about US$69 million in
utilization at June 30, 2008, the securitization program forms an
important component of liquidity.  The company's ability to meet
its third-quarter 2008 covenant requirement is contingent on an
improvement in EBITDA from about US$6 million in the second-
quarter.  The company has announced several price increases in
recent weeks, but Tronox's operating environment remains
challenging, and could forestall the meaningful improvement in
earnings required to comply with covenants.  In the absence of
sufficient covenant relief or successful steps to preserve access
to liquidity, the company could be challenged to make an upcoming
interest payment of approximately US$16 million on Dec. 1, 2008.

The amount Tronox provides for in its reserves is far lower than
the US$280 million claimed by the EPA in its lawsuit.  Although
the outcome of the lawsuit is unlikely to result in a cash outflow
in the near term, the lawsuit raises the possibility of additional
financial pressure on Tronox's already weakened financial profile
at a time when the improvement of operating performance remains
uncertain and a breach of financial covenants is increasingly
likely.

Oklahoma-based Tronox, with about US$1.4 billion in annual sales,
is the third-largest global producer of TiO2, behind industry
leader E.I. DuPont de Nemours & Co. and Millennium Inorganic
Chemicals.

S&P will resolve the CreditWatch within the next few weeks after
the company clarifies the outcome of its strategic review, and
after it can reassess prospects for improving operating
performance and liquidity, which includes covenant compliance and
an extension of the maturity on the securitization program.  S&P
will also review the company's ability to meet its near-term
interest payment in the absence of covenant relief.

The CreditWatch listing indicates that another downgrade is likely
if operating performance and liquidity management do not improve
meaningfully, or if the outcome of the company's review of
strategic alternatives results in actions with potentially
negative implications for credit quality.



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


AGRO-DON-SERVICE-STROY: Creditors Must File Claims by November 4
----------------------------------------------------------------
Creditors of LLC Agro-Don-Service-Stroy (TIN 6162007875, RVC
616201001) have until Nov. 4, 2008, to submit proofs of claims
to:

         I. Postukyan
         Insolvency Manager
         Buynakskaya Str. 2/56
         344037 Rostov-on-Don
         Russia

The Arbitration Court of Rostovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A53-2984\2008-S1-33.

The Court is located at:

         The Arbitration Court of Rostov
         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         LLC Agro-Don-Service-Stroy
         2nd Lugovaya Str. 10
         344007 Rostov-on-Don
         Russia


ASTRA PLUS: Creditors Must File Claims by October 4
---------------------------------------------------
Creditors of LLC Astra Plus have until Oct. 4, 2008 to submit
proofs of claims to:

         S. Kungurov
         Temporary Insolvency Manager
         Melnikayte Str. 106/455
         Tumen
         Russia

The Arbitration Court of Tumenskaya will convene at 9:00 a.m. on
Dec. 11, 2008, to hear the company's bankruptcy supervision
procedure.  The case is docketed under Case No. A70-4439/3-2008.

The Debtor can be reached at:

         LLC Astra Plus
         Plodovaya Str. 7
         Lugovoe
         Tumenskaya
         Russia


BASH-NEFTE-PROM-STROY: Creditors Must File Claims by October 4
--------------------------------------------------------------
Creditors of OJSC Bash-Nefte-Prom-Stroy Subsidiary of LLC Bash-
Nefte-Prom-Stroy-Invest have until Oct. 4, 2008, to submit proofs
of claims to:

         A. Kulyashov
         Insolvency Manager
         Neftayanikov Str. 24
         452680 Neftekamsk
         Bashkortostan
         Russia

The Arbitration Court of Bashkortostan commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A07-10561/08-G-KhRM.

The Court is located at:

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

The Debtor can be reached at:

         OJSC Bash-Nefte-Prom-Stroy
         452680 Neftekamsk
         Bashkortostan
         Russia


EVROBALTIYA OJSC: Creditors Must File Claims by October 4
---------------------------------------------------------
Creditors of OJSC Evrobaltiya have until Oct. 4, 2008, to submit
proofs of claims to:

         Yu. Abdulin
         Temporary Insolvency Manager
         Lunacharskogo Str. 185-203
         620026 Yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A60-11889/08-S11.

The Court is located at:

         The Arbitration Court of Sverdlovsk
         Lenina Pr. 34
         620151 Ekaterinburg
         Russia

The Debtor can be reached at:

         OJSC Evrobaltiya
         Severnoe shosse 4
         622051 Tizhniy Tagil
         Russia


PLANT OF REINFORCED: Creditors Must File Claims by October 4
------------------------------------------------------------
Creditors of LLC Plant of Reinforced Concrete Products have
until Oct. 4, 2008, to submit proofs of claims to:

         S. Maslovskiy
         Temporary Insolvency Manager
         Rusanova Str. 12
         169607 Pechora
         Komi
         Tel/Fax: 8-(82142) 7-13-16

The Arbitration Court of Komi will convene at 9:10 a.m. on Nov.
13, 2008, to hear the company's bankruptcy supervision procedure.
The case is docketed under Case No. A29-4874/2008.

The Court can be reached at:

         The Arbitration Court of Komi
         Room 407
         Ordzhonikidze Str. 49a
         Syktyvkar
         Russia

The Debtor can be reached at:

         LLC Plant of Reinforced Concrete Products
         Puteyskaya Str. 1A
         Pechora
         Komi
         Russia


RUBTSOV-ENERGO-STROY: Creditors Must File Claims by October 4
-------------------------------------------------------------
Creditors of OJSC Rubtsov-Energo-Stroy have until Oct. 4, 2008,
to submit proofs of claims to:

         V. Zorin
         Insolvency Manager
         Post User Box 4608
         656049 Barnaul
         Russia

The Arbitration Court of Altayskiy commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A03-7098/08-B.

The Debtor can be reached at:

         OJSC Rubtsov-Energo-Stroy
         Traktornaya Str. 43
         658209 Rubtsovsk
         Russia


TRADEMAKS LLC: Moscow Bankruptcy Hearing Set December 9
-------------------------------------------------------
The Arbitration Court of Moscow will convene at 9:00 a.m. on
Dec. 9, 2008, to hear bankruptcy supervision procedure on LLC
Trademaks.  The  case is docketed under Case No. A40-37585/08-95-
91B.

The Temporary Insolvency Manager is:

         A. Rodin
         Post User Box 7
         124683 Moscow
         Russia

The Court is located at:

         The Arbitration Court of Moscow
         Building 1
         Novaya Basmannaya Str.13/2
         107078 Moscow
         Russia

The Debtor can  be reached at:

         LLC Trademaks
         Building 1
         Novoyasenevskiy prospect 22
         117574 Moscow
         Russia


VAGON-ZHIL-STROY: Creditors Must File Claims by October 4
---------------------------------------------------------
Creditors of LLC Vagon-Zhil-Stroy have until Oct. 4, 2008, to
submit proofs of claims to:

         R. Ayulov
         Temporary Insolvency Manager
         Apt. 35
         Chkalova Str. 31
         453204 Ishimbay
         Bashkortostan
         Russia

The Arbitration Court of Bashkortostan commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A07-9613/2008GT-ShAB.

The Court is located at:

         The Arbitration Court of Bashkortostan
         Office 106
         S. Yulayeva Str. 7
         450057 Ufa
         Bashkortostan
         Russia

The Debtor can be reached at:

         LLC Vagon-Zhil-Stroy
         B. Khmelnitskogo Str. 2a
         453203 Ishimbay
         Bashkortostan
         Russia


* Fitch: Russia's Investment Notion Could Lead to Liquidity Woes
----------------------------------------------------------------
Fitch Ratings says that current conditions in Russia including
international investors' sentiment to inward investment and their
re-appraisal of the country's risk profile, coupled with this
week's domestic equity and on-going bond market conditions, could
lead to increased liquidity concerns for many Russian companies,
particularly in the real estate and construction sectors.  Short-
term debt maturity profiles and an attachment to a vulnerable bank
system already negatively affect many Russian Corporate ratings.

As highlighted in Fitch's recent Corporate Liquidity Study, dated
18 August 2008, Russian corporates often rely on uncommitted
short-term lines from banks.  Those that rely on Russian banks for
funding find that refinancing risk is a constant issue to manage.
It exposes those companies with a lack of internally generated
stable cash flow relative to debt maturities to rely upon the
provision of capital from Russian banks or the bond markets.  Even
if the domestic rouble or international eurobond bond markets have
been tapped, the domestic rouble bond market can be short-term in
nature with periodic investor puts.  Both markets are currently
difficult to access even with heightened risk premiums.

As a consequence of the structural use of short-term funding,
representative rated companies within Fitch's corporate portfolio
currently have around 20%-30% of their debt due to mature before
the end of this year.  As always during such nervous times, trust
and established relationships are the currency for continued
financial support.  Companies that have relationships with the
three largest banks (Sberbank, VTB and Gazprombank - see Fitch's
"Financial Pressures Build on Russia and its Banks" released
yesterday) - which have received increased access to liquidity in
the form of budgetary fund placements - are likely to have their
lines extended by these banks.

Of the sectors in Fitch's corporate portfolio of around 40
publicly rated Russian companies, which are concentrated in the
'BB' and 'B' rating categories, the higher-rated oil and gas
companies and rated telecom companies are likely to have their
near-term maturities refinanced, although probably at higher cost.
The oil and gas entities are of considerable size, sufficient
stand-alone financial strength, strategic importance to the
country, and are well-served by international banks, while the
rated telecom companies (either Svyazinvest-owned or with state
ownerships) are likely to have state-owned financial institutions
look favorably upon these entities if renewed lines are required.

The remainder of rated corporates fall into two groups (i) those
with specific refinance issues due to treasury management, and
(ii) sectors that are vulnerable to a downturn as banks conserve
liquidity.  Fitch continues to actively review the near-term
maturity profile of Russian corporates, particularly those with no
state-connected bank relationships and those who were expecting to
refinance imminent debt maturities with bank or bond funding.
Real estate and construction companies are at particular risk.

Fitch believes that if banks withdraw lending, commercial and
residential property values will decline as examples of forced
selling are prevalent.  Furthermore, where existing debt financing
is asset-specific and near-term refinancing is not achieved, many
banks can quickly enforce their security and the relevant
corporate left weakened.  Currently, the following companies'
ratings, which are mainly grouped in the 'B' rating category,
reflect the risk profile of this domestic sector and where
applicable Rating Watch Negatives or Negative Outlooks reflect
current liquidity concerns (OJSC LSR Group, Mirax Group LLC, JSC
OPIN Open Investments, OJSC PIK Group and Sistema-Hals JSC).
Although less evident in Fitch's rated universe, retail companies
would also be at risk from consumer tightening brought about by
banking system issues.

Some companies have positioned themselves to rely more on the
international bank market for funding, accessing committed and
longer-dated funding.  Entities with these characteristics include
the oil and gas companies (Lukoil, TNK-BP, Rosneft and Gazprom -
which all have low 'BBB' category ratings).  Similarly, Norilsk
Nickel ('BBB-'), Evraz ('BB') and NLMK ('BB+'), could also be
regarded as companies of international stature that may well join
this list of likely preferred treatment by the large domestic
banks.


* RUSSIA: Biz Leaders Doubt Efforts to Stabilize Markets
--------------------------------------------------------
Amid President Dmitry Medvedev's assurances, Russian business
leaders warned last week that the government's moves to stabilize
the Russian financial markets "may not be sufficient," Charles
Clover writes for the Financial Times in Moscow.  President
Medvedev had said that the economy was stable and banks would get
all the liquidity they needed, FT notes.

On Sept. 15, 2008, the Russian stock market fell a further 4.8%, a
24% fall so far this month over increased fears on a severe
liquidity crisis and bank failures, FT reports.

In a summit with the president, Aleksander Shokhin, head a group
of the country's main business leaders, asserted that "[t]he
financial markets are falling . . . .   [t]here needs to be an
active, anti-crisis policy," FT relates.

Mr. Medvedev told the Russian Union of Industrialists and
Entrepreneurs, known as the oligarchs' summit that "the task of
the government at the present time is to ensure sufficient
liquidity in the domestic market," FT continues.

Alexei Kudrin, finance minister, suggested the government could
double the amount of budget funds for short-term deposits at
commercial banks to RUR1,232 billion (US$47.79 billion,
EUR33.65 billion, GBP26.7 billion), FT says.

On Sept. 15, 2008, the central bank extended US$12.65 billion to
banks to boost liquidity, following a US$13.4 billion injection on
September 13, FT notes.

Some market players won't accept second and third tier bonds as
collateral depicting concern over the credit worthiness of
issuers, FT writes.

David Nangle, banking analyst at Renaissance Capital in Moscow
said that it's possible for smaller banks to go under," FT adds.

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


TDA 26: Fitch Affirms Ratings on Two Note Classes at 'CCC'
----------------------------------------------------------
Fitch Ratings has affirmed TDA 26 Mixto and TDA 29, Fondo de
Titulizacion de Activos RMBS transactions.  The transactions are
backed by mortgages loans originated by Banca March and Banco
Guipuzcoano.  The rating actions are:

TDA 26
  -- Class 1-A2 (ISIN ES0377953015): affirmed at 'AAA'; Outlook
     Stable

  -- Class 1-B (ISIN ES0377953023): affirmed at 'A'; Outlook
     Stable

  -- Class 1-C (ISIN ES0377953031): affirmed at 'BBB'; Outlook
     Negative

  -- Class 1-D (ISIN ES0377953049): affirmed at 'CCC'; Outlook
     Stable

  -- Class 2-A (ISIN ES0377953056): affirmed at 'AAA'; Outlook
     Stable

  -- Class 2-B (ISIN ES0377953064): affirmed at 'A-';
     Outlook Stable

  -- Class 2-C (ISIN ES0377953072): affirmed at 'CCC'; Outlook
     Stable

  -- Class 1-A1 (ISIN ES0377953007): paid in full January 2008

TDA 29
  -- Class A1 (ISIN ES0377931003): affirmed at 'AAA'; Outlook
     Stable

  -- Class A2 (ISIN ES0377931011): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN ES0377931029): affirmed at 'A'; Outlook changed
     to Negative from Stable.

  -- Class C (ISIN ES0377931037): affirmed at 'BBB'; Outlook
     changed to Negative from Stable.

  -- Class D (ISIN ES0377931045): affirmed at 'CCC'; Outlook
     Stable

TDA 26 has issued two groups of notes; Group 1 notes, comprising
only first-ranking mortgages with loan-to-value ratios under 80%
and Group 2 notes, backed by first and second-ranking mortgage
loans with LTVs above 80%.  To date the Group 1 pool has seen a
higher level of loans in arrears by more than three months,
accounting for 1.21% of the pool as of July 2008, 24 months after
closing.  Group 2 arrears are almost half that level, accounting
for 0.69% of the pool at of the July investor report.  The outlook
negative in place of the Class 1-C (Group 1) reflect the high
arrears and defaults to date.

Increasing levels of defaults produced a slight draw of the group
1 reserve fund in October 2007.  At the next interest payment date
the RF was topped up and has remained at its required level since
then.  The portfolios are concentrated in the Balearic and Canary
islands, which represent 44% and 74% of the group 1 and 2,
respectively.

TDA 29 has a single pool combining both portfolios. Arrears have
shown an upward trend since closing, reaching 0.87% in the last
reported month.  Defaults are defined as loans more than 12 months
in arrears and because the deal is in its early stages defaults
have only been reported in two months, reaching 0.04%.  Arrears
levels and the current and projected level of defaults are higher
than expected at closing, prompting the change of outlooks.  The
arrears pipeline shows that the pace of new defaults is likely to
increase in the next quarter.  Given the guaranteed excess spread
of 0.55% that the transaction has, this does not necessarily mean
that the reserve fund will draw.  At closing the portfolio was
geographically concentrated in the Balearic Islands and Canary
Islands and represented 32.52% of the portfolio.

Both sellers are medium-sized, regional Spanish banks with c.250
branches.  Guipuzcoano's activities are concentrated in the Basque
Country whereas Banca March operates mainly in the Balearic
Islands.

Fitch has employed its credit-cover multiple methodology in
reviewing these transactions to assess the level of credit support
available to each class of notes.

Rating Outlooks for European structured finance tranches provide
forward-looking information to the market.  An Outlook indicates
the likely direction of any rating change over a one- to two-year
period.


TDA 29: Fitch Affirms Rating on Class D Notes at 'CCC'
------------------------------------------------------
Fitch Ratings has affirmed TDA 26 Mixto and TDA 29, Fondo de
Titulizacion de Activos RMBS transactions.  The transactions are
backed by mortgages loans originated by Banca March and Banco
Guipuzcoano.  The rating actions are:

TDA 26
  -- Class 1-A2 (ISIN ES0377953015): affirmed at 'AAA'; Outlook
     Stable

  -- Class 1-B (ISIN ES0377953023): affirmed at 'A'; Outlook
     Stable

  -- Class 1-C (ISIN ES0377953031): affirmed at 'BBB'; Outlook
     Negative

  -- Class 1-D (ISIN ES0377953049): affirmed at 'CCC'; Outlook
     Stable

  -- Class 2-A (ISIN ES0377953056): affirmed at 'AAA'; Outlook
     Stable

  -- Class 2-B (ISIN ES0377953064): affirmed at 'A-';
     Outlook Stable

  -- Class 2-C (ISIN ES0377953072): affirmed at 'CCC'; Outlook
     Stable

  -- Class 1-A1 (ISIN ES0377953007): paid in full January 2008

TDA 29
  -- Class A1 (ISIN ES0377931003): affirmed at 'AAA'; Outlook
     Stable

  -- Class A2 (ISIN ES0377931011): affirmed at 'AAA'; Outlook
     Stable

  -- Class B (ISIN ES0377931029): affirmed at 'A'; Outlook changed
     to Negative from Stable.

  -- Class C (ISIN ES0377931037): affirmed at 'BBB'; Outlook
     changed to Negative from Stable.

  -- Class D (ISIN ES0377931045): affirmed at 'CCC'; Outlook
     Stable

TDA 26 has issued two groups of notes; Group 1 notes, comprising
only first-ranking mortgages with loan-to-value ratios under 80%
and Group 2 notes, backed by first and second-ranking mortgage
loans with LTVs above 80%.  To date the Group 1 pool has seen a
higher level of loans in arrears by more than three months,
accounting for 1.21% of the pool as of July 2008, 24 months after
closing.  Group 2 arrears are almost half that level, accounting
for 0.69% of the pool at of the July investor report.  The outlook
negative in place of the Class 1-C (Group 1) reflect the high
arrears and defaults to date.

Increasing levels of defaults produced a slight draw of the group
1 reserve fund in October 2007.  At the next interest payment date
the RF was topped up and has remained at its required level since
then.  The portfolios are concentrated in the Balearic and Canary
islands, which represent 44% and 74% of the group 1 and 2,
respectively.

TDA 29 has a single pool combining both portfolios. Arrears have
shown an upward trend since closing, reaching 0.87% in the last
reported month.  Defaults are defined as loans more than 12 months
in arrears and because the deal is in its early stages defaults
have only been reported in two months, reaching 0.04%.  Arrears
levels and the current and projected level of defaults are higher
than expected at closing, prompting the change of outlooks.  The
arrears pipeline shows that the pace of new defaults is likely to
increase in the next quarter.  Given the guaranteed excess spread
of 0.55% that the transaction has, this does not necessarily mean
that the reserve fund will draw.  At closing the portfolio was
geographically concentrated in the Balearic Islands and Canary
Islands and represented 32.52% of the portfolio.

Both sellers are medium-sized, regional Spanish banks with c.250
branches.  Guipuzcoano's activities are concentrated in the Basque
Country whereas Banca March operates mainly in the Balearic
Islands.

Fitch has employed its credit-cover multiple methodology in
reviewing these transactions to assess the level of credit support
available to each class of notes.

Rating Outlooks for European structured finance tranches provide
forward-looking information to the market.  An Outlook indicates
the likely direction of any rating change over a one- to two-year
period.


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


FORD MOTOR: Urges Congress to Fund US$25BB Loan Program
-------------------------------------------------------
Top executives at General Motors Corp., Chrysler LLC and Ford
Motor Co. met with House Speaker Nancy Pelosi and other
congressional leaders on Wednesday to pursue the funding of a
US$25 billion loan program intended to help the automakers
modernize their plants to meet fuel efficiency requirements in the
future, reports say.

GM Chairman and CEO Rick Wagoner, Ford CEO Alan Mulally and
Chrysler Chairman and CEO Robert Nardelli, also sent a letter
stating their request for the loan program.  In it, they warned
that sluggish U.S. economy could affect thousands of workers.

Dow Jones reports that House Speaker Pelosi told reporters on the
same day that she plans to unveil a US$25 billion loan package to
U.S. automakers next week that could possibly add new efficiency
standards.  It would likely be contained in a government funding
bill.

Congress has authorized US$25 billion in loans in last year's
energy bill, but the plan has yet to be funded.  The program
authorizes Congress to provide US$25 billion in low-cost loans in
order for automakers and their suppliers to meet new fuel-
efficiency requirements of at least 35 miles per gallon by 2020, a
40% increase.

According to a report by the Associated press, the loans would
have an interest rate of around 5 percent, providing about
US$100 million a year in savings for every US$1 billion the
companies receive in loans.  The interest rate would have been in
double-digit on the open market because of the companies' poor
bond ratings, the report said.

                      About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.


                         *     *     *

As reported in the Troubled Company Reporter on Aug. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings on Chrysler
LLC, including the corporate credit rating, to 'CCC+' from 'B-'.

On July 31, 2008, TCR said that Fitch Ratings downgraded the
Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'.  The
Rating Outlook is Negative.  The downgrade reflects Chrysler's
restricted access to economic retail financing for its vehicles,
which is expected to result in a further step-down in retail
volumes.  Lack of competitive financing is also expected to result
in more costly subvention payments and other forms of sales
incentives.  Fitch is also concerned with the state of the
securitization market and the ability of the automakers to access
this market on an economic basis over the near term, given the
steep drop in residual values, higher default rates, higher loss
severity being experienced and jittery capital market.


                   About General Motors

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

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

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.


                     About Ford Motor Co.

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

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

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 5, 2008,
Fitch Ratings has downgraded the issuer default rating of Ford
Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'.
The Rating Outlook remains Negative.  The downgrade reflects: the
further deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in gas
prices; portfolio deterioration at Ford Credit and heightened
concern regarding economic access to capital to support financing
requirements; and escalating commodity costs that will remain a
significant offset to cost reduction efforts.


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


GAAZ WINTERTHUR: Creditors Have Until Oct. 22 to File Claims
------------------------------------------------------------
Creditors owed money by LLC Gaaz winterthur are requested to file
their proofs of claim by Oct. 22, 2008, to:

         Dr. A. M. Furrer
         Nelkenstrasse 5
         8400 Winterthur
         Switzerland

The company is currently undergoing liquidation in Winterthur.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 21, 2008.


GENERAL MOTORS: Urges Congress to Fund US$25BB Loan Program
-----------------------------------------------------------
Top executives at General Motors Corp., Chrysler LLC and Ford
Motor Co. met with House Speaker Nancy Pelosi and other
congressional leaders on Wednesday to pursue the funding of a
US$25 billion loan program intended to help the automakers
modernize their plants to meet fuel efficiency requirements in the
future, reports say.

GM Chairman and CEO Rick Wagoner, Ford CEO Alan Mulally and
Chrysler Chairman and CEO Robert Nardelli, also sent a letter
stating their request for the loan program.  In it, they warned
that sluggish U.S. economy could affect thousands of workers.

Dow Jones reports that House Speaker Pelosi told reporters on the
same day that she plans to unveil a US$25 billion loan package to
U.S. automakers next week that could possibly add new efficiency
standards.  It would likely be contained in a government funding
bill.

Congress has authorized US$25 billion in loans in last year's
energy bill, but the plan has yet to be funded.  The program
authorizes Congress to provide US$25 billion in low-cost loans in
order for automakers and their suppliers to meet new fuel-
efficiency requirements of at least 35 miles per gallon by 2020, a
40% increase.

According to a report by the Associated press, the loans would
have an interest rate of around 5 percent, providing about
US$100 million a year in savings for every US$1 billion the
companies receive in loans.  The interest rate would have been in
double-digit on the open market because of the companies' poor
bond ratings, the report said.

                      About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings on Chrysler
LLC, including the corporate credit rating, to 'CCC+' from 'B-'.

On July 31, 2008, TCR said that Fitch Ratings downgraded the
Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'.  The
Rating Outlook is Negative.  The downgrade reflects Chrysler's
restricted access to economic retail financing for its vehicles,
which is expected to result in a further step-down in retail
volumes.  Lack of competitive financing is also expected to result
in more costly subvention payments and other forms of sales
incentives.  Fitch is also concerned with the state of the
securitization market and the ability of the automakers to access
this market on an economic basis over the near term, given the
steep drop in residual values, higher default rates, higher loss
severity being experienced and jittery capital market.

                     About Ford Motor Co.

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

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

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 5, 2008,
Fitch Ratings has downgraded the issuer default rating of Ford
Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'.
The Rating Outlook remains Negative.  The downgrade reflects: the
further deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in gas
prices; portfolio deterioration at Ford Credit and heightened
concern regarding economic access to capital to support financing
requirements; and escalating commodity costs that will remain a
significant offset to cost reduction efforts.

                   About General Motors

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

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


At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.


GENERAL MOTORS: May Issue Securities to Raise Funds
---------------------------------------------------
General Motors Corp. disclosed in a Securities and Exchange
Commission filing that it plans to register and issue these
classes of securities:

  1) Debt Securities;
  2) Common Stock (par value US$12/3 per share);
  3) Preferred Stock (without par value);
  4) Preference Stock (par value US$0.10 per share); and
  5) Warrants

GM said in its prospectus that an indeterminate aggregate initial
offering price and number or amount of the securities of each
identified class is being registered as may from time to time be
sold at indeterminate prices.  Separate consideration may or may
not be received for securities that are issuable upon conversion
of, or in exchange for, or upon exercise of, convertible or
exchangeable securities.

Registration fees of US$809,000 for up to US$10 billion net
aggregate principal amount of securities were paid previously by
the GM in connection with the Registration Statement on Form S-3
(File No. 333-108532) originally filed on September 5, 2003.
Pursuant to Rule 457(p) under the Securities Act of 1933, the fees
of US$629,402 with respect to US$7,780,000,000 aggregate initial
offering price of securities that were previously registered and
not sold are being carried forward, and such unsold securities are
deregistered, GM said. In accordance with Rules 456(b) and 457(r),
the company is deferring payment of all of the registration fee
except that portion previously paid and which is being carried
forward.

GM said net cash proceeds from the issuance of the securities will
be added to its general funds and will be available for general
corporate purposes, including capital expenditures, working
capital and the repayment of existing indebtedness.

A copy of GM's prospectus is available free of charge at:

               http://researcharchives.com/t/s?3236

                   About General Motors


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

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

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.


GROB AEROSPACE: Bombardier Ends Learjet Development Agreement
-------------------------------------------------------------
Bombardier Aerospace is assuming complete responsibility for the
detail design and manufacturing of all primary and secondary
structures for the all-new Bombardier Learjet 85 midsize business
jet.  Learjet has terminated its development agreement with Grob
Aerospace AG of Switzerland.

"Given the uncertainty surrounding Grob's insolvency, Learjet has
decided to terminate its agreement with Grob Aerospace, effective
Sept. 17, 2008.  Bombardier Aerospace is taking decisive action
and this decision reflects our strong commitment to both the
Learjet 85 aircraft program and to a growing number of leading
business jet customers worldwide who have selected this exciting,
all-new midsize business jet," stated Steve Ridolfi, President,
Bombardier Business Aircraft.

"Development of the Learjet 85 aircraft is now in the final stages
of a successful joint definition phase that actively involves our
suppliers.  Bombardier Aerospace is a leader in civil aircraft
development and has successfully introduced a total of 24 aircraft
programs since 1989 - we are excited about the Learjet 85 business
jet and look forward to introducing the aircraft into service,"
added Mr. Ridolfi.

           The New Learjet 85 Business Aircraft

Designed to provide a larger, more comfortable cabin than any
existing midsize aircraft, the Learjet 85 business jet will offer
eight passengers a stand-up cabin built to ensure superior
productivity and comfort.  True to its legendary heritage, the
Learjet 85 aircraft is set to deliver the extraordinary
performance, superior technology and exceptional value Learjet
aircraft owners expect.  Powered by Pratt & Whitney Canada PW307B
engines, the aircraft engines each boast 6,100 lb. (2,772 kg) of
take-off thrust, while the low-emission combuster offers reduced
environmental impact.  The clean-sheet Learjet 85 aircraft targets
a high-speed cruise of Mach 0.82 and a transcontinental range of
up to 3,000 nautical miles (5,556 km)*.

The new Learjet 85 aircraft flight deck combines advanced
technology with superior design elements for a cockpit environment
unlike any other midsize jet.  The latest in technological
advancements from Rockwell Collins –- the new Pro Line Fusion
avionics suite –- is once again paired with superior design
aesthetics to create the ultimate Learjet flight control
environment.

Learjet is the first name in corporate aviation.  Since acquiring
Learjet Inc. in 1990, Bombardier Aerospace has carried forward the
brand's proud legacy by launching eight high-performance and fuel-
efficient aircraft.

As reported in the TCR-Europe on Aug. 22, 2008, Grob Aerospace
GmbH Germany has been forced to file for insolvency in Germany.

"This unfortunate situation has arisen as a consequence of
recent delays in the spn program, resulting in the increased
requirement for cash to see the program through to
certification.  Under the circumstances, our current loan
provider has elected to discontinue their support," Grob CEO
Niall Olver said.

Headquartered in Zurich, Switzerland, Grob Aerospace --
http://www.grob-aerospace.net/-- is one of the world's largest
and most experienced composite aircraft manufacturers since
1971.  Grob's research, development, manufacturing and assembly
facilities are located in Tussenhausen-Mattsies, Germany, where
it maintains its own purpose built airfield.   Its  central base
in the United States is located in Portsmouth, New Hampshire
with several regional sales offices throughout the USA.


KOECHLIN BAUMGARTNER: Oct. 31 Set as Deadline to File Claims
------------------------------------------------------------
Creditors owed money by JSC Koechlin, Baumgartner & Cie. are
requested to file their proofs of claim by Oct. 31, 2008, to:

         Dr. Christoph Noelpp
         Trust Company Brenner Treuhand
         Gewerbestrasse 6
         9242 Oberuzwil
         Switzerland

The company is currently undergoing liquidation in Oberuzwil.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 25, 2008.


MANGOLD WASTE: Creditors Must File Proofs of Claim by Oct. 31
-------------------------------------------------------------
Creditors owed money by Mangold waste water and aeration systems
Ltd., are requested to file their proofs of claim by
Oct. 31, 2008, to:

         Dr. Urs Grohbiel
         Hasenrainstrasse 29
         4102 Binningen
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 13, 2008.


R. BADER JSC: Deadline to File Proofs of Claim Set Oct. 31
----------------------------------------------------------
Creditors owed money by JSC R. Bader Konstruktionswerkstatte are
requested to file their proofs of claim by Oct. 31, 2008, to:

         Rolf Bader
         Gmeindweg 1
         8598 Bottighofen
         Switzerland

The company is currently undergoing liquidation in Bottighofen.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 14, 2007.


REMATON JSC: Proofs of Claim Filing Deadline is Oct. 15
--------------------------------------------------------
Creditors owed money by JSC Rematon are requested to file their
proofs of claim by Oct. 15, 2008, to:

         Trust Company JSC B + S Universal Treuhand
         Bahnhofstrasse 4
         6102 Malters
         Switzerland

The company is currently undergoing liquidation in Risch.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 19, 2007.


WABRENT LLC: Creditors' Proofs of Claim Due by Oct. 10
------------------------------------------------------
Creditors owed money by LLC Wabrent are requested to file their
proofs of claim by Oct. 10, 2008, to:

         Hauptstrasse 13
         5734 Reinach
         Switzerland

The company is currently undergoing liquidation in Reinach AG.


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


* S&P Sees Little Progress in Turkish Transparency & Disclosure
---------------------------------------------------------------
Expectations of continuing improvements in transparency and
disclosure at Turkish companies have largely evaporated over the
past 12 months, says a research report published by Standard &
Poor's Ratings Services.  Titled "Turkish Transparency And
Disclosure Survey 2008: A Year Of Little Or No Progress," the
report reveals that firms in Turkey have little appetite for
improving their disclosure practices above current levels and
beyond that required by regulation.

The report summarizes the results of the final phase of a four-
year study into disclosure undertaken by S&P in conjunction with
the Corporate Governance Forum of Turkey at Sabanci University in
Istanbul.

"After the initial promising results in the early phases of the
study, our latest survey confirms that companies' efforts to
improve their disclosure levels have stalled, showing little or
no change year-on-year from last year's results," said S&P's
governance analyst Amra Balic.  "For example, the average score
for disclosure per company among the 50 firms in our study sample
is 61%, the same as in 2007. The average score achieved for
financial reporting, meanwhile, slipped to 73% from 75% last year.

"However, we do note some positive developments, predominantly
the shrinking gap between the top performers and the remainder of
our sample."

Although the reasons for the slowdown in disclosure gains are not
entirely clear, S&P believes that one factor is a general lack of
voluntary disclosure.  Evidence of this is shown by the fact that
company scores seem to converge around the disclosure required and
captured under International Financial Reporting Standards, a
mandatory standard in Turkey since 2005.  Further evidence that
disclosure is mainly driven by regulations is shown by the
continuing very low levels of information related to the board of
directors.

"We expect the next wave of improvements in disclosure at Turkish
companies will occur with the enactment of the long-awaited new
Commercial Code," said Ms. Balic.

Looking across the four years of the study, three firms feature
repeatedly in the top five for disclosure (in alphabetical order)
-- Anadolu Efes Biracilik ve Malt Sanayii AS (BB/Stable/--), Koç
Holding, and Turkcell Iletisim Hizmetleri A.S. (foreign currency
BB/Positive/--).  Notably among this trio, Anadolu Efes and
Turkcell are dual-listed and therefore subject to the stricter
disclosure regimes of the London Stock Exchange and New York
Stock Exchange, respectively.

Other key findings of the 2008 survey reveal that:

   -- The overall improvements in disclosure levels continue to
      be greatest among the companies that scored lowest in the
      previous years' surveys.

   -- Holding companies and their subsidiaries continue to have
      different disclosure levels, and therefore concerns remain
      about the transparency of business groups.

The study sample of 50 Turkish companies includes 44 firms that
were constituents of the S&P/IFC Global Index in October 2004
when the original sample was selected, the remainder being taken
from the top 100 companies listed on the Istanbul Stock Exchange
(ISE).  The companies involved are selected by the researchers on
the basis of being the largest in terms of market capitalization
and liquidity.


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


BIG LINE: Creditors Must File Claims by September 25
----------------------------------------------------
Creditors of Building Corporation Big Line (code EDRPOU 31325853)
have until Sept. 25, 2008, to submit proofs of claim to:

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

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 7, 2008.
The case is docketed as 22/4b.

The Debtor can be reached at:

         Building Corporation Big Line
         Karl Marks Str. 8
         91000 Lugansk
         Ukraine


BOTIYEVSKOYE BREADRECEIVING: Claims Filing Period Ends Sept. 26
---------------------------------------------------------------
Creditors of OJSC Botiyevskoye Breadreceiving Enterprise (code
EDRPOU 00954248) have until Sept. 26, 2008, to submit proofs of
claim to:

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

The Economic Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on July
31, 2008.  The case is docketed as B 26/151-08.

The Debtor can be reached at:

         OJSC Botiyevskoye Breadreceiving Enterprise
         Heroes of Stalingrad Str. 181
         49057 Dnipropetrovsk
         Ukraine


FACTOR CJSC: Creditors Must File Claims by Sept. 26
---------------------------------------------------
Creditors of CJSC Factor (code EDRPOU 22065052) have until
Sept. 26, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on July 23, 2008.
The case is docketed as 49/96-b.

The Debtor can be reached at:

         CJSC Factor
         Apt. 1
         Trekhsviatitelskaya Str. 9
         01001 Kiev
         Ukraine


FAREZ LLC: Creditors Must File Claims by Sept. 25
-------------------------------------------------
Creditors of LLC Farez (code EDRPOU 34484342) have until
Sept. 25, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 7, 2008.
The case is docketed as 28/234-b.

The Debtor can be reached at:

         LLC Farez
         Solomenskaya Str. 5
         03100 Kiev
         Ukraine


KADUTSEY-ARMA: Creditors Must File Claims by September 25
---------------------------------------------------------
Creditors of LLC Kadutsey-Arma (code EDRPOU 34804243) have until
Sept. 25, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 4, 2008.
The case is docketed as 44/166-b.

The Debtor can be reached at:

         LLC Kadutsey-Arma
         Ofc. 3
         Gorky Str. 13
         01004 Kiev
         Ukraine


KARPATBUILDING: Creditors Must File Claims by Sept. 25
------------------------------------------------------
Creditors of Building Enterprises Corporation Karpatbuilding
Subsidiary Company Karpatbuilding (code EDRPOU 30918694) have
until Sept. 25, 2008, to submit proofs of claim to:

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

The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 8, 2008.
The case is docketed as 4/98.

The Debtor can be reached at:

         Building Enterprises Corporation Karpatbuilding
         Subsidiary Company Karpatbuilding
         Princess Olga Str. 5V
         79044 Lvov
         Ukraine


KOLOS-K LLC: Creditors Must File Claims by September 25
-------------------------------------------------------
Creditors of LLC Kolos-K (code EDRPOU 31593340) have until
Sept. 25, 2008, to submit proofs of claim to:

         The Economic Court of Sumy
         Shevchenko Avenue 18/1
         40030 Sumy
         Ukraine

The Economic Court of Sumy commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 7, 2008.
The case is docketed as 6/135-08.

The Debtor can be reached at:

         LLC Kolos-K
         Trudovaya Str. 48
         Duboviazovka
         Konotop District
         41655 Sumy
         Ukraine


LEGION SPORT: Creditors Must File Claims by September 25
--------------------------------------------------------
Creditors of LLC Legion Sport (code EDRPOU 32948961) have until
Sept. 25, 2008, to submit proofs of claim to:

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

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 6, 2008.
The case is docketed as B-24/145-08.

The Debtor can be reached at:

         LLC Legion Sport
         Lenin Avenue 9
         61166 Kharkov
         Ukraine


MICHURIN AGRICULTURAL: Creditors Must File Claims by Sept. 25
-------------------------------------------------------------
Creditors of Michurin Agricultural LLC (code EDRPOU
03789264) have until Sept. 25, 2008, to submit proofs of claim to:

         The Economic Court of Hmelnitskij
         Nezalezhnosti Square 1
         29000 Hmelnitskij
         Ukraine

The Economic Court of Hmelnitskiy commenced bankruptcy
supervision procedure on the company.  The case is docketed as
3/151-B.

The Debtor can be reached at:

         Michurin Agricultural LLC
         Novoselitsa
         Polonsky District
         30500 Hmelnitskij
         Ukraine


SLAVIANKA LLC: Creditors Must File Claims by September 27
---------------------------------------------------------
Creditors of LLC Company Slavianka (code EDRPOU 32127236) have
until Sept. 27, 2008, to submit proofs of claim to:

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

The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on June 2, 2008.
The case is docketed as 4/219.

The Debtor can be reached at:

         LLC Company Slavianka
         Zamarstynovskaya Str. 219
         Lvov
         Ukraine


WESTRESOURCE LLC: Creditors Must File Claims by September 26
------------------------------------------------------------
Creditors of LLC Westresource (code EDRPOU 33294492) have until
Sept. 26, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on July 30, 2008.
The case is docketed as 43/234.

The Debtor can be reached at:

         LLC Westresource
         Okhtyrsky Lane 3
         03022 Kiev
         Ukraine


YUTOR LLC: Creditors Must File Claims by Sept. 26
-------------------------------------------------
Creditors of LLC Yutor (code EDRPOU 33440209) have until
Sept. 26, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on July 30, 2008.
The case is docketed as 43/178.

The Debtor can be reached at:

         LLC Yutor
         Molodogvardeyskaya Str. 11
         Kiev
         Ukraine


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


FAMOUSCHALLEN LTD: Brings in Liquidators from Vantis
----------------------------------------------------
Colin Ian Vickers and Christopher David Stevens of Vantis Business
Recovery Services,were appointed joint liquidators of
Famouschallen Ltd. on Sept. 2, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Famouschallen Ltd.
         1 Horsham Gates
         North Street
         Horsham
         West Sussex
         England


GOLFIZUS LTD: Claims Filing Period Ends December 4
--------------------------------------------------
Creditors of Golfizus Ltd. have until Dec. 4, 2008, to send in
their full forenames and surnames, address and descriptions, full
particulars of their debts or claims, and the names and addresses
of their solicitors (if any), to:

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

David Elliott of Moore Stephens LLP was appointed liquidator of
the company on Sept. 4, 2008, for the creditors' voluntary
winding-up procedure.


HURSTWOOD DEVELOPMENTS: Goes Into Administration
------------------------------------------------
Chris Barry of Manchester Evening News reports that two further
Hurstwood Group subsidiaries have been put into administration,
resulting to job losses.

Hurstwood Developments and Hurstwood Facilities Management went
bust after being hit by the credit crunch, the collapse of the
housing market and pressure from creditors, the report relates.

According to the report, the administration process is being
handled by KPMG.

"We have spent millions of pounds over the last 12 months trying
to keep Hurstwood Developments alive but pressures outside our
control and the knock-on effect of placing Hurstwood Construction
into administration earlier this year, eventually took their
toll," Hurstwood chairman Stephen Ashworth was quoted by
Manchester Evening News as saying.

"Restructuring is a very painful process and we have no choice but
to close down all of our construction activity and by doing so,
retreat to our core activity of property investment,"
Mr. Ashworth added.

Based in Bolton, Hurstwood Developments is behind nearly 20
schemes in the region, including the GBP60 million New Hall Hey
project in Rossendale, the report discloses.

As reported in the TCR-Europe, Hurstwood Construction, a unit of
the Hurstwood Group, was placed into administration in June.
Begbies Traynor was appointed as administrator of the company.

The move was a result of "funding problems" in its Howard Town
Mill project in Glossop, Derbyshire.


HURSTWOOD FACILITIES: Goes Into Administration
----------------------------------------------
Chris Barry of Manchester Evening News reports that two further
Hurstwood Group subsidiaries have been put into administration,
resulting to job losses.

Hurstwood Facilities Management and Hurstwood Developments went
bust after being hit by the credit crunch, the collapse of the
housing market and pressure from creditors, the report relates.

According to the report, the administration process is being
handled by KPMG.

"We have spent millions of pounds over the last 12 months trying
to keep Hurstwood Developments alive but pressures outside our
control and the knock-on effect of placing Hurstwood Construction
into administration earlier this year, eventually took their
toll," Hurstwood chairman Stephen Ashworth was quoted by
Manchester Evening News as saying.

"Restructuring is a very painful process and we have no choice but
to close down all of our construction activity and by doing so,
retreat to our core activity of property investment,"
Mr. Ashworth added.

Based in Bolton, Hurstwood Developments is behind nearly 20
schemes in the region, including the GBP60 million New Hall Hey
project in Rossendale, the report discloses.

As reported in the TCR-Europe, Hurstwood Construction, a unit of
the Hurstwood Group, was placed into administration in June.
Begbies Traynor was appointed as administrator of the company.

The move was a result of "funding problems" in its Howard Town
Mill project in Glossop, Derbyshire.


INGRAM MICRO: Economic Softness to Continue in September
--------------------------------------------------------
Ingram Micro Inc. issued a revised financial outlook for the third
quarter ending Sept. 27, 2008.

Revenues for the third quarter now are expected to range from
US$8.3 billion to US$8.6 billion.  Net income is expected to range
from US$30 million to US$39 million, or US$0.18 to US$0.23 per
diluted share based on 169 million weighted average shares
outstanding.  This includes an estimated US$5 million
(US$3 million net of tax or US$0.02 per diluted share) in costs to
be incurred during the third quarter related to the completion of
expense-reduction plans in North America and Europe.

"Earlier this month, we disclosed that softer economies created
more competitive environments in July and August," said Gregory M.
Spierkel, chief executive officer, Ingram Micro Inc.  "It's now
clear that this economic softness is continuing into September,
which is exerting greater pressure on operating margins.  In
Europe, we are not seeing the typical September bounce- back from
the summer holidays.  North America seemed to be relatively stable
in the summer months, but we're experiencing broad-based softness
in September."

Mr. Spierkel added that all regions have initiatives in place to
improve results.

"We are exiting low-return businesses and categories, particularly
in our largest operations, which dampens results during this
challenging economic period but will create a more profitable
operation in the future," Mr. Spierkel explained.  "We are also
reducing costs as quickly as possible, with our current
restructuring program expected to generate US$18 million to US$24
million of annualized savings beginning early next year, but the
pace of the downturn is more rapid than expected.  We are
reviewing additional cost-reduction actions to supplement this
current program in the coming quarters.  We also introduced a
freight-recovery initiative to offset rising fuel costs, which is
still in a transition phase but we're confident it will strengthen
the organization for the long-term."

The company is scheduled to report results for the third quarter
on Oct. 23, 2008.

                       About Ingram Micro

Headquartered in Santa Ana, California, Ingram Micro Inc.
(NYSE: IM) -- http://www.ingrammicro.com/-- together with its
subsidiaries, distributes information technology products and
supply chain solutions worldwide.  Its IT products include
peripherals, networking, software, and systems.  The company has
operations in Brazil, Chile, the United Kingdom, Belgium,
Switzerland, among others.

                          *     *     *

Ingram Micro Inc. continues to carry a Ba1 long-term corporate
family rating from Moody's Investors Service with a stable
outlook.  The company also carries the agency's Ba2 bank loan debt
rating and Ba1 probability of default rating.


IRP REALISATIONS: Calls in Liquidators from BDO Stoy Hayward
------------------------------------------------------------
Toby Scott Underwood and Francis Graham Newton of BDO Stoy Hayward
LLP were appointed joint liquidators of IRP Realisations Ltd.
(formerly Intermet Refractory Products Ltd.) on Sept. 3, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached at:

         IRP Realisations Ltd.
         c/o BDO Stoy Hayward LLP
         1 Bridgewater Place
         Water Lane
         Leeds
         LS11 5RU
         England


LEHMAN BROTHERS: Gets Interim OK to Borrow US$200MM from Barclays
---------------------------------------------------------------
Judge James M. Peck of the U.S. Bankruptcy Court for the Southern
District of New York granted Lehman Brothers Holdings Inc. interim
authority to immediately borrow up to US$200,000,000 from Barclays
Bank Plc and use those borrowed funds as outlined in a budget to
which Lehman and Barclays have agreed.  Judge Peck held that the
the terms and conditions of the parties' DIP Credit Agreement are
fair and reasonable under the circumstances, and that Lehman
Brothers' business would be irreparably harmed if the DIP Credit
Agreement were not approved.

Judge Peck will convene a Final DIP Financing Hearing on Oct. 2,
2008, in Manhattan.  Objections, if any, must be filed and served
no later than 4:00 p.m. on Sept. 25, 2008.

Lehman Brothers' ability to maintain business relationships with
its customers, pay its employees, and satisfy other critical
operating expenses is essential to its ability to survive,
Richard P. Krasnow, Esq., at Weil, Gotshal & Manges LLP, told
Judge Peck at a hearing Sept. 17 in Manhattan, and there is
little or no cash available to the Debtor.  In light of the
events of the last week, Mr. Krasnow said, Lehman no longer has
liquidity to fund its operations.  Without immediate access to a
source of fresh working capital, Mr. Krasnow warned, Lehman's
operations may literally shut down and result in irreparable harm
to its business and substantial deterioration of the value of its
enterprise to the detriment of its estate, its thousands of
employees, its creditors, and its stockholders.

Lehman Brothers is seeking to borrow up to US$450,000,000 under a
Senior Secured Superpriority Debtor-in-Possession Credit Facility
arranged by Barclays.  The Debtor will repay all amounts borrowed
from Barclays from the proceeds of the sale of Lehman Brothers
Inc. to Barclays Capital Inc. (or any higher bidder) for US$1.7
billion.  The terms of the DIP loan are:

Borrower:     Lehman Brothers Holdings Inc.

DIP Lenders:  Barclays Bank plc and any other lenders who become
             a party to the DIP Credit Agreement.

Loan Amount:  US$450,000,000, in the form of:

                -- a US$250,000,000 Term Loan to be made available
                   immediately following the entry of an Interim
                   DIP Financing Order and

                -- a US$200,000,000 Revolving Loan to be made
                   available to the Debtor upon entry of a
                   Final DIP Financing Order.

Mandatory
Prepayments:  Proceeds from the Sale of Lehman Brothers Inc. and
             certain other assets must be used to pay off the
             DIP Credit Facility.

             All cash in excess of US$5,000,000 at the close of
             any business day must be used to pay down any
             borrowings under the Revolving Loan Facility.

Maturity
Date:         The earliest of:

                (A) March __, 2009;

                (B) the date on which the LBI/Barclays Sale
                    Agreement terminates; and

                (C) consummation of a sale of Neuberger Berman
                    Holdings LLC;

Interest:     At Barclays option:

                (1) for the first 60 days:

                    -- LIBOR plus 6.0% per annum;
                    -- the Prime Rate plus 5.0% per annum; or
                    -- the Federal Funds Rate plus 5.5%; and

                (2) thereafter:

                    -- LIBOR plus 7.5% per annum;
                    -- the Prime Rate plus 6.5%; or
                    -- the Federal Funds Rate plus 7.0%.

             all subject to a 3.5% LIBOR floor, a 4.5% Prime
             Rate floor, and a 4.0% Federal Funds Rate floor.

             In the event of a default, the Interest Rate
             increases by 2.0%.

Fees:         Lehman Brothers will pay Barclays an Unused Line
             Fee equal to 1% per year on every dollar is doesn't
             borrow under the DIP Financing Facility.

             Lehman Brothers will pay Barclays additional fees
             described in a non-public Fee Letter dated
             September 17, 2008.

Collateral:   All loans will be secured by a first priority lien
             in all of Lehman Brothers' equity interests in
             Neuberger Berman.

Carve-Out:    Barclays liens and superpriority administrative
             expense claims are subject to a US$6,000,000 Carve-
             Out for payment of fees and expenses owed to the
             professionals representing Lehman Brothers and its
             Creditors' Committee, the Court Clerk and the U.S.
             Trustee in the event of a default.

Use of
Proceeds:     The proceeds of the DIP Credit Facility will be
             used by the Debtor to fund professionals fees,
             personnel expenses and other operating expenses in
             accordance with a [non-public] budget to be agreed
             upon with the DIP Lenders.

Conditions
& Covenants:  Lehman Brothers is required to appoint:

                    Brian Marsal
                    ALVARAZ & MARSAL, LLC
                    600 Lexington Avenue, 6th Floor
                    New York, NY 10022
                    Telephone (212) 759-4433
                    Fax (212) 759-5532

             as its Chief Restructuring Officer on terms
             reasonably acceptable to Barclays, and Mr. Marsal
             must report directly to Lehman's Board of
             Directors.

             Lehman Brothers is required to hire an investment
             banker or other financial advisor satisfactory to
             Barclays.

             Barclays has the right to appoint and retain its
             own financial advisor at Lehman Brothers' expense.

Ian T. Lowitt, Lehman's chief financial officer, controller,
and executive vice president, told Judge Peck that he believes
the terms of the Barclays Loan Facility are significantly more
favorable than any terms that would be offered by other lenders.
Mr. Lowitt says this arises largely from the fact that Barclays
is the proposed purchaser of Lehman Brothers Inc.  Mr. Lowitt is
convinced that the DIP Credit Facility reflects the exercise of
the Debtor's sound business judgment.  Mr. Lowitt assured Judge
Peck that the Debtor negotiated with the DIP Lenders at arms-
length, in good faith and pursuant to its sound business
judgment.

Subject only to the Carve-Out, all amounts Lehman borrows from
Barclays will:

   -- constitute, under section 364(c)(1) of the Bankruptcy
      Code, allowed superpriority administrative expense claims
      against the Debtor having priority over all administrative
      expenses of the kind specified in, or ordered pursuant to,
      any provision of the Bankruptcy Code, including, without
      limitation, those specified in, or ordered pursuant to,
      sections 105, 326, 328, 330, 503(b), 506(c), 507(a),
      507(b), 546(c), 726 and 1114 of the Bankruptcy Code, or
      otherwise, whether incurred in the Chapter 11 Case or any
      conversion thereof to a case under chapter 7 of the
      Bankruptcy Code or any other related proceeding; and

   -- be secured, pursuant to section 364(c)(2) of the
      Bankruptcy Code, by valid, binding, enforceable, first
      priority and perfected Postpetition Liens in (a) all
      of Lehman's equity interests in Neuberger Berman Holdings
      LLC.

Judge Peck instructs the Debtor to deliver a copy of the Fee
Letter to the Court, the Creditors' Committee and the U.S.
Trustee, and directs those parties to keep that document secret.

Barclays is represented by:

      Lisa Schweitzer, Esq.
      Lindsee Granfield, Esq.
      CLEARY GOTTLIEB STEEN & HAMILTON LLP
      One Liberty Plaza
      New York, NY 10006

A full-text copy of the 100-page Credit Agreement is available at
http://bankrupt.com/misc/LehmanBarclaysDIP.pdfat no charge.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: US$138BB in Advances by JPMorgan Is Secured
----------------------------------------------------------
Lehman Brothers Holdings, Inc., sought and obtained confirmation
from the U.S. Bankruptcy Court for the Southern District of New
York regarding the status and treatment of transfers amounting to
US$138 billion made by JPMorgan Chase Bank, N.A., to Lehman
Brothers, Inc.

Lehman Brothers Inc., a non-Debtor subsidiary of Lehman Brothers
Holdings, is a registered broker-dealer with the Securities and
Exchange Commission.  JPMorgan Chase Bank is party to five
clearing agreements with Debtor and certain of its affiliates:

(A) the Clearance Agreement executed by Chase as of June 15,
     2000 and executed by the Debtor, LBI, Lehman Commercial
     Paper Inc., Lehman Brothers International (Europe), Lehman
     Brothers OTC Derivatives Inc., and Lehman Brothers Japan
     Inc. as of June 7, 2000;

(B) the Clearance Agreement, dated as of September 10, 2008,
     with Lehman Brothers Bank, FSB;

(C) the Clearance Agreement, dated as of September 10, 2008,
     with Lehman Brothers Bankhaus Aktiengesellschaft;

(D) the Clearance Agreement, dated as of September 10, 2008,
     with Lehman Brothers Commercial Bank; and

(E) the Global Custody and Clearance Agreement, dated March 14,
     2001, with LBI, and together with the June 2000 Clearance
     Agreement.

Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New
York, says pursuant to the June 2008 Clearance Agreement, the
September 2008 Clearance Agreements and the Global Clearance
Agreement, Chase may, in its sole discretion, make advances to or
for the benefit of the respective Lehman Clearance Parties, which
advances are payable by the Lehman Clearance Parties upon demand
by Chase.

Mr. Miller says further that the obligations of the Lehman
Clearance Parties under the Clearance Agreements are guaranteed
by Lehman pursuant to:

(1) the Guaranty, dated as of August 26, 2008, by the Debtor in
     favor of Chase and its successors and assigns; and

(2) the Guaranty, dated as of September 9, 2008, made by the
     Debtor in favor of Chase and its affiliates, subsidiaries,
     successors, and assigns.

According to Mr. Miller, the Debtor's obligations under the
Guarantee Agreements are secured by collateral, including all its
proceeds, whether arising before or after the Commencement Date,
pledged to Chase pursuant to:

(a) the Security Agreement, dated as of August 26, 2008, by the
     Debtor in favor of Chase and any of its successors and
     assigns party to the Clearance Agreements; and

(b) the Security Agreement, dated as of September 9, 2008, by
     the Debtor in favor of Chase and any of its affiliates,
     subsidiaries, successors, and assigns.

The Agreements contain these additional key provisions:

  -- the Clearance Agreement was amended Aug. 26, 2008 pursuant
     to which Lehman Brothers Holdings, Inc., Lehman Brothers
     International (Europe), Lehman Brothers OTC Derivatives
     Inc. and Lehman Brothers Japan Inc., joined Lehman Brothers
     Inc. and Lehman Commercial Paper Inc. as customers under
     the Agreement.  The amendment also said that except for the
     obligations of Lehman Brothers Holdings under the Guaranty
     and Security Agreement dated Aug. 26, 2008, the obligations
     and liabilities of each of the Lehman entities will be
     several and not joint.

  -- on Sept. 10, 2008, Lehman Brothers Bank, FSB, Lehman
     Brothers Bankhaus Aktiengesellschaft, and Lehman Brothers
     Commercial Bank signed separate clearance agreements with
     Chase.

  -- Pursuant to the Clearance Agreement, Chase will make
     advances or loans to LBI and other Lehman Entities, which
     loans will be backed by security interest in, among other
     things, liens upon and right of set-off as to balance of
     every existing or future deposit that it maintains with
     Chase.

  -- Ian Lowitt, as CFO of Lehman Brothers Holdings, signed a
     Guaranty dated Aug. 26, 2008, pursuant to which the company
     agreed to guarantee the loans and advances made by Chase to
     LBI, et al.

  -- Chase agreed to act as non-exclusive agent for securities
     transactions for the Lehman entities.  Chase also agreed to
     provide tri-party custodian services, pursuant to which it
     will accept from LBI any securities, which include physical
     securities and securities held by the Federal Reserve Bank
     of New York, DTC, PTC, First Chicago Clearing Center, or
     other depository or clearing corporation.

Full-text copies of the Agreements can be accessed for free at
http://bankrupt.com/misc/LehmanChaseAgreements.pdf

                  US$138 Billion in Advances By
                    Chase on Sept. 15 and 16

At the opening of the U.S. securities markets on Sept. 15, 2008,
after the filing of Lehman's Chapter 11 petition, Chase advanced
US$87 billion to or for the benefit of the Lehman Clearance
Parties at the request of the Debtor and the Federal Reserve Bank
of New York, Mr. Miller relates.  That Commencement Date Advance
was necessary to clear, and facilitate the settlement of,
securities transactions with customers or clients of the Lehman
Clearance Parties to avoid a disruption of the financial markets,
he says.  The Commencement Date Advance was repaid by the Federal
Reserve Bank.

Mr. Miller relates further that on Sept. 16, Chase advanced "a
comparable amount" to or for the benefit of the Lehman Clearance
Parties at the request of the Debtor and the Federal Reserve Bank
of New York.  He says the Second Day Advance was necessary to
clear, and facilitate the settlement of, securities transactions
with customers or clients of the Lehman Clearance Parties to
avoid a disruption of the financial markets.  Chase may elect to
make additional advances under the Clearance Agreements in its
sole discretion.

Pursuant to the Guarantee Agreements and Security Agreements, all
Postpetition Advances are guaranteed by the Debtor, which
guarantees are secured by the Holding Company Collateral,
Mr. Miller adds.

              Bankruptcy Court Confirms Advances

Pursuant to Section 105(a) of the Bankruptcy Code, the Debtor
sought and obtained confirmation from Judge James M. Peck that
any of Chase's claims arising under or pursuant to the Clearance
Agreements, Guarantee Agreements, or Securities Agreements --
which agreements are securities contracts within the meaning of
Section 741(7)(A) of the Bankruptcy Code -- arising from any
Postpetition Advances, will be allowed as claims under the
Guarantee Agreements and will be secured by the Holding Company
Collateral to the same extent as if they had been made prior to
the Petition Date.

Mr. Miller asserted that to assure that Chase will continue to
perform under the Clearance Agreements, out of an abundance of
caution, it is necessary for the Court to confirm that the claims
of Chase that may arise from Postpetition Advances or other
transactions arising under or pursuant to the Clearance
Agreements, Guarantee Agreements, or Security Agreements post the
Petition Date will be allowed as claims under the Guarantee
Agreements secured by the Holding Company Collateral.

To the extent the Court views the Postpetition Advances as the
postpetition incurrence of debt, the Debtor asked the Court to
confirm that the Postpetition Advances are authorized under
Section 364 of the Bankruptcy Code as to the Guarantee Agreements
and the Holding Company Collateral.

The Debtor clarified that it is not asking the Court to validate
Chase's guarantees or the liens securing the guarantees, or to
grant administrative expense status for the Clearing Claims.
Rather, out of an abundance of caution, it was asking the Court
to confirm that Chase's Clearing Claims will be allowed as claims
under the Guarantee Agreements that are secured by the Holding
Company Collateral to the same extent as if they had been made
prior to the Commencement Date.

The Debtor has been advised by Chase that, if the Court will not
grant the request, Chase will be unable to continue to make
Postpetition Advances at the Debtor's request, Mr. Miller
relates.  It is essential to the Debtor's customers that Chase
continue to clear securities transactions for the Lehman
Clearance Parties in accordance with its prepetition practices.
Any cloud on the guarantees vis-a-vis the Holding Company
Collateral will inhibit Chase from clearing advances to or for
the benefit of the Lehman Clearance Parties to the detriment of
public investors.

According to Mr. Miller, approval of the Debtor's proposal is
fully consistent with the terms of the Bankruptcy Code, will
facilitate a smooth and orderly transition of the Debtor's
operations into Chapter 11, and minimize not only the disruption
of the Debtor's business affairs, but also the disruption of the
financial markets as a whole.

After a hearing on September 16, the Court ruled that any of
Chase's claims against Lehman arising under or pursuant to the
Clearance Agreements, the Guarantee Agreements, or the Securities
Agreements arising from any Postpetition Advances will be allowed
as claims under the Guarantee Agreements and will be secured by
the Holding Company Collateral to the same extent as if they had
been made prior to the date on which the Debtor commenced its
Chapter 11 case in the Court.

                Chase: Advances for Clearing of
            Securities Transactions with LBI clients

JPMorgan Chase Bank, N.A., delivered a statement to Judge Peck
supporting the Debtor's motion for confirmation of the status of
the Clearing Advances.

Harold S. Novikoff, Esq., at Wachtell, Lipton, Rosen & Katz, in
New York, confirmed that Chase advanced US$87 billion to or for
the benefit of LBI on September 15, 2008, in order to clear, and
facilitate the settlement of, certain securities transactions
with customers or clients of LBI.  The advance was repaid on
Sept. 15, 2008.  Mr. Novikoff adds that on Sept. 16, 2008, Chase
advanced US$51 billion.

Mr. Novikoff stressed that the Debtor is not asking for a
validation of Chase's guarantee from the Debtor or of the liens
that secure that guarantee, nor does it seek a determination that
Chase is entitled to administrative expense status.  Rather, the
Court is being asked to confirm that Clearing Claims arising from
Postpetition Advances or other transactions after the filing of
the Debtor's bankruptcy petition will be allowed as claims under
the Guarantee Agreements, and will be secured by the Holding
Company Collateral, to the same extent as if they had been made
prior to the filing of the Debtor's bankruptcy petition.

Mr. Novikoff warned that if the Court does not grant the Debtor's
proposal, Chase would stop making Postpetition Advances as it has
been doing at the Debtor's request.

                         *     *     *

According to Bloomberg News, Chase said that the second advance
of US$51 billion has been repaid and the process will zero out the
advances at the end of each day.

The advances are guaranteed through collateral of Lehman
Brothers' holding company under an existing agreement.  Chase
holds about US$17 billion in collateral to secure the advances,
according to Bloomberg.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: To Sell Investment Mgmt Unit to Bain, Hellman
--------------------------------------------------------------
According to Bloomberg News, Lehman Brothers Holdings is in
discussions regarding a sale of its investment-management unit to
private-equity firms Bain Capital LLC and Hellman & Friedman LLC,
Bloomberg News reports, citing people familiar with the
negotiations.

Lehman's Investment-Management unit recorded net revenues
(revenues less interest) of US$634 million in the quarter ended
Aug. 31, 2008, compared to US$802 million during the same period
in 2007.  Investment Management provides strategic investment
advice and services to institutional and high-net-worth clients on
a global basis.

During 2007, Lehman acquired H.A. Schupf, a high net worth
boutique asset manager with approximately US$2.3 billion in
assets under management; LightPoint Capital Management LLC, a
leveraged loan investment manager based in Chicago, Illinois,
with approximately US$3.2 billion in assets under management;
Dartmouth Capital, a U.K.-based investment advisory firm with
approximately US$340 million in assets under advisory; and MNG
Securities, an equity securities brokerage firm in Turkey.
Lehman also purchased interests in both Spinnaker Asset
Management Limited and Spinnaker Financial Services, part of
Spinnaker Capital, an emerging markets investment management
firm, and a 20% interest in the D.E. Shaw group, a global
investment management firm.

The Asset Management section under Investment-Management includes
proprietary asset management products across traditional and
alternative asset classes, through a variety of distribution
channels, to individuals and institutions:

  (i) Neuberger Berman, which Lehman acquired in 2003;

(ii) Lehman Brothers Asset Management brands; and

(iii) Private Equity, under which a number of private equity
      portfolios are managed.

A second section, Private Investment Management, provides
traditional brokerage services and comprehensive investment,
wealth advisory, trust and capital markets execution services to
both high-net- worth individuals and small and medium size
institutional clients, leveraging all the resources of Lehman
Brothers.

Established in 1984, Bain Capital is an private investment firm,
managing over US$78 billion in assets.  Its affiliated advisors in
private equity, public equity, leveraged debt assets, venture
capital and global macro assets.

Hellman & Friedman LLC, founded in 1984, is a private equity
investment firm well respected for its distinctive investment
philosophy and approach.  During its 22-year investing history,
it has raised and managed over US$16 billion of committed capital
and has invested in over 50 companies.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: SIPC Does Not Expect Liquidation
-------------------------------------------------
The Securities Investor Protection Corporation, which maintains a
special reserve fund authorized by Congress to help investors at
failed brokerage firms, issued the following statement this
morning in relation to reports about the bankruptcy filing of
Lehman Brothers Holdings, Inc.

SIPC President Stephen Harbeck said: "SIPC has not initiated a
liquidation proceeding against the broker-dealer Lehman Brothers
Inc. and we do not currently anticipate doing so.  As of this
morning, it appears that all customer cash, stocks and other
securities are accounted for."

"It is important to understand that the holdings of broker-dealer
Lehman Brothers Inc., would not be directly impacted by a
bankruptcy filing at the separate entity Lehman Brothers Holdings,
Inc.

"Should the situation at Lehman Brothers Inc. change in some
material way not now anticipated by SIPC and regulators, we will,
of course, intervene as necessary to protect the cash and
securities of customers.  However, I want to underscore that such
an action is considered unlikely at this time.

"SIPC is working closely with the U.S. Securities and Exchange
Commission (SEC) to monitor the situation at Lehman Brothers Inc.

"The Securities Investor Protection Corporation remains vigilant
and committed to our core mission: When a brokerage firm is closed
due to bankruptcy or other financial difficulties and customer
assets are missing, SIPC steps in as quickly as possible and,
within certain limits, works to return customers' cash, stock and
other securities.  Without SIPC, investors at financially troubled
brokerage firms might lose their securities or money forever or
wait for years while their assets are tied up in court."

                           About SIPC

The Securities Investor Protection Corporation is the U.S.
investor's first line of defense in the event a brokerage firm
fails, owing customer cash and securities that are missing from
customer accounts.  SIPC either acts as trustee or works with an
independent court-appointed trustee in a brokerage insolvency case
to recover funds.  The statute that created SIPC provides that
customers of a failed brokerage firm receive all non-
negotiable securities - such as stocks or bonds -- that are
already registered in their names or in the process of being
registered.  At the same time, funds from the SIPC reserve are
available to satisfy the remaining claims of each customer up to a
maximum of US$500,000.  This figure includes a maximum of
US$100,000 on claims for cash.  From the time Congress created it
in 1970 through December 2006, SIPC has advanced US$505 million in
order to make possible the recovery of US$15.7 billion in assets
for an estimated 626,000 investors.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).

LEHMAN BROTHERS: U.S. Trustee Appoints Panel, RR Donnelly Quits
---------------------------------------------------------------
Pursuant to Section 1102 of the Bankruptcy Code, Diana G. Adams,
the United States Trustee for Region 2, appointed these seven
creditors to serve on the Official Committee of Unsecured
Creditors in Lehman Brothers' Chapter 11 cases:

      1. Wilmington Trust Company, as
         Indenture Trustee
         520 Madison Avenue, 33rd Floor
         New York, New York 10022
         Attn: James J. McGiniey, Managing Debtor
         Phone Number (212) 415-0522
         Fax Number (212) 415-0513

      2. The Bank of NY Mellon
         101 Barclay - 8 W.
         New York, New York 10286
         Attn: Gerard Facendola, Vice President Corporate Trust
         Phone Number (212) 815-5373

      3. Shinsei Bank, Limited
         1-8, Uchisaiwaicho 2- Chome
         Chiyoda - Ku, Tokyo 100-8501
         Japan
         Attn: Edward P. Gilbert
         Phone Number 81-3-5510-6614
         Fax Number 81-3-4560-2846

      4. Mizuho Corporate Bank, Ltd. as Agent
         1251 Avenue of the Americas
         New York, New York 10020-1104
         Attn: Noel P. Purcell, Senior Vice President
         Phone Number (212) 282-3486
         Fax Number (212) 282-4490

      5. The Royal Bank of Scotland, PLC
         101 Park Avenue, 6th Floor
         New York, New York 10178
         Attn: Alan Ferguson/Michael Fabiano
         Phone Number (212) 401-3552 or (212) 401-3663

      6. Metlife
         10 Park Avenue
         P.O. Box 1902
         Morristown, New Jersey 07962-1902
         Attn: David Yu, Director
         Phone Number (973) 355-4581
         Fax Number (973) 355-4230

      7. RR Donnelley & Sons
         3075 Highland Parkway
         Downers Grove, Il. 60515
         Attn: Daniel Pevonka, Senior Manger Legal Accounts
         Phone Number (630) 322-6931
         Fax Number (630) 322-6052

R.R. Donnelley & Sons Company said in a statement released Sept.
17 that it has resigned from the Creditors Committee.  The U.S.
Trustee has not yet appointed a replacement.  R.R. Donnelley said
that its exposure to Lehman is less than US$1 million.

The Trial Attorney at the United States Trustee's office in
charge of Lehman Brothers' chapter 11 cases is:

         Andrew D. Velez-Rivera, Esq.
         Office of the United States Trustee
         33 Whitehall Street, 21st Floor
         New York, New York 10004
         Tel. No. (212) 510-0500

Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtors'
expense.  They may investigate the Debtors' business and
financial affairs.  Importantly, official committees serve as
fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject to
the terms of strict confidentiality agreements with the Debtors
and other core parties-in-interest.  If negotiations break down,
the Committee may ask the Bankruptcy Court to replace management
with an independent trustee.  If the Committee concludes
reorganization of the Debtor is impossible, the Committee will
urge the Bankruptcy Court to convert the Chapter 11 cases to a
liquidation proceeding.

Lehman's creditors convened for the Organizational Meeting at
6:00 p.m. Tuesday evening and waited until almost midnight as the
Office of the U.S. Trustee interviewed candidates for the
committee and assessed potential conflicts of interest.

According to Bloomberg News, creditors interviewed by the U.S.
Trustee that weren't named as committee members included Swedish
bank Svenska Handelsbanken AB; London-based investment manager
Western Asset Management Co.; Bank of China Ltd.; Bank of Tokyo
Ltd.; Charlotte, North Carolina-based Bank of America Corp.; and
BlackRock Inc.

                       Milbank On Board

The Committee has selected Milbank Tweed Hadley & McCloy LLP, as
its legal counsel.

Kramer Levin Naftalis & Frankel, Akin Gump Strauss Hauer & Feld
and Paul Weiss Rifkind Wharton & Garrison were also interviewed
by the Committee as potential counsel, Kramer Levin partner David
Feldman said in an interview with Bloomberg.

Milbank Tweed's attorneys primarily responsible for the firm's
representation of the Committee are:

         Dennis F. Dunne, Esq.
         Luc A. Despins, Esq.
         Wilbur F. Foster, Jr., Esq.
         MILBANK, TWEED, HADLEY & McCLOY LLP
         1 Chase Manhattan Plaza
         New York, New York 10005
         Telephone: (212) 530-5000
         Facsimile: (212) 530-5219
         E-mail: ddunne@milbank.com
                 ldespins@milbank.com
                 wfoster@milbank.com

              - and -

         Paul Aronzon, Esq.
         Gregory A. Bray, Esq.
         MILBANK, TWEED, HADLEY & McCLOY LLP
         601 South Figueroa Street, 30th Floor
         Los Angeles, CA 90017
         Telephone: (213) 892-4000
         Facsimile: (213) 629-5063
         E-mail: paronzon@milbank.com
                 gbray@milbank.com

Mr. Despins is a senior partner in the Financial Restructuring
Group, and is resident in the Firm's New York office.  Mr.
Despins' prior engagements include advising the unsecured
creditors committees in Refco, Inc.'s and Enron Corp.'s chapter
11 proceedings, and representing the agent for the secured
lenders in Adelphia Communications' chapter 11 cases.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008. The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: 3 Directors Dispose of Company Shares
------------------------------------------------------
Three directors of Lehman Brothers Holdings Inc., filed with the
U.S. Securities and Exchange Commission statements of changes in
beneficial ownership of Lehman common stock after they disposed
of their shares on the day Lehman filed for bankruptcy
protection.

Richard Fuld Jr., chief executive officer and director, disclosed
that he beneficially owns 21,040,914 shares of the company's
common stock after disposing of 2,878,302 shares on Sept. 15,
2008.  He further said that some of these shares are held in
various benefit plans.

Thomas Cruikshank disclosed that he beneficially owns 5,000
shares of the company's common stock after disposing of 28,000
shares on Sept. 15, 2008.

Meanwhile, Henry Kaufman reported a zero beneficial securities
ownership after he disposed of 5,000 shares of the company's
common stock on the same date.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: Linklaters Advises Administrator PwC
-----------------------------------------------------
In the United Kingdom, a three-partner team from Linklaters, will
advise PricewaterhouseCoopers, the court-appointed administrator
in Lehman Brothers Holdings Inc.'s administration case, Times
Online reports.  Tony Bugg, Esq., heads the Linklaters team that
is supported by banking partners, Richard Holden and David Eriera,
Times Online says.

A team from Weil Gotshal & Manges in New York is managing Lehman
Brothers' case under chapter 11 of the U.S. Bankruptcy Code, the
report relates.  Harvey Miller, Esq., a veteran restructuring
lawyer and former chairman of boutique bank Greenhill, leads the
Weil Gotshal team, Times Online says.

Other laws firms engaged in Lehman Brothers' case include Lovells,
which is advising the Financial Services Authority, the U.K.
regulator; and Freshfields Bruckhaus Deringer, which is advising
the Bank of England.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LEHMAN BROTHERS: Case More Complex Than Enron's, PwC States
-----------------------------------------------------------
Lehman Brothers Holdings Inc.'s winding down in the United Kingdom
will be larger and more complex than that of Enron or MG Rover,
Chris Marshall of City Wire reports, citing PricewaterhouseCoopers
LLP, the court-appointed administrators for the Debtor's case.
PricewaterhouseCoopers stated in a press conference that parts of
Enron had required six years of work, according to the report.

Early this week, PwC had said that more Lehman employees will be
notified about job cuts, City Wire relates.  PwC also said it is
unsure if the US$75 million salary, gross of tax, would be paid,
City Wire notes.  PwC commented that it's a surprise that "a
business as huge as [Lehman Brothers] can fail," City Wire
relates.

The report discloses that several dozens of PwC staff were working
in Lehman Brothers's building in Canary Wharf.

                   About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LEHMAN BROTHERS: UK Staff May Not Get Paid, Administrator Says
--------------------------------------------------------------
The Birmingham Post reported that Lehman Brothers Holdings Inc.'s
workers in the United Kingdom may not get their last week's
salaries.

As reported by the Troubled Company Reporter on Sept. 17, 2008,
Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis,
partners at PricewaterhouseCoopers LLP, were appointed as joint
administrators to Lehman Brothers International (Europe) on
Sept. 15, 2008.  Lehman Brothers, the principal UK trading company
in the Lehman group, was placed into administration, together with
Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd.
These are currently the only UK incorporated companies in
administration.  The joint administrators have been appointed to
wind down the business in as orderly a manner as possible.

PwC partner Tony Lomas, who indicated the forthcoming wage bill
was EUR75 million, or GBP42 million, said "(The administration) is
a period of stress and distress for the people," according to the
Birmingham Post.  He added that there's no certainty as to the
availability of cash for the wages, the report related.

Mr. Lomas disclosed that the company is engaging in several
transactions of vast values but it will "take some time to unravel
the affairs of the company, the Birmingham Post said.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
$639 billion in assets and $613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

                International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion ($33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LEHMAN BROTHERS: To Sell US$8MM Stake in Guyana Hotel by Year-End
-----------------------------------------------------------------
Lehman Brothers Holdings Inc. is reportedly selling its
US$8 million share in Le Meridien Pegasus hotel in Guyana to a
Guyanese businessman by year-end, Kevin Lindon writes for the
Caribbean Net News in Guyana.  The undisclosed buyer is living in
the United States, according to the Caribbean Net News.

News of the sale follows Lehman Brothers' bankruptcy filing on
Sept. 15, 2008, the report says.

Caribbean Net News also said that investors are mulling on
dropping "Le Meridien" off the hotel's name and retain "Pegasus."
Mr. Plas asserted that the Pegasus brand would have more impact on
travelers and tourists in Guyana, based on the report.  The
hotel's manager, Bert Plas, confirmed the report on the name
change saying that the matter is under talks, Caribbean Net News
relates.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LEHMAN BROTHERS: Japan Banks, Insurers Have US$2.3BB Exposure
-------------------------------------------------------------
Japan's banks and insurers disclosed a combined JPY245 billion
(US$2.3 billion) of potential losses tied to the collapse of
Lehman Brothers Holdings Inc., Bloomberg News reports.

According to Bloomberg, Banks from Tokyo-based Mitsubishi UFJ,
Japan's largest, to Bank of the Ryukyus Ltd., a lender based in
Okinawa, disclosed assets that might become worthless following
Lehman's filing for bankruptcy protection.  The total for 37
banks was JPY198 billion, compared with a combined JPY47 billion
at seven Japanese insurers, according to data compiled by
Bloomberg based on announcements.

Mitsubishi UFJ said in a statement that, on a net basis, the
total amount of credits, etc., extended by group companies of
Mitsubishi UFJ Financial Group, Inc., to Lehman Brothers Holdings
and related companies is US$235 million:

1. The Bank of Tokyo-Mitsubishi UFJ, Ltd.
    (total US$260 million)

       Credits, including loans, etc.:      US$218 million
          Of which, to the headquarters:     US$35 million
                    to Japanese subsidiary:  JPY20 billion
       Corporate bonds:                      US$42 million

       Of these amounts US$40 million is hedged by credit
       default swaps.

2. Mitsubishi UFJ Trust & Banking Corporation (total
    US$15 million)

Mizuho Financial Group Inc., Japan's second-largest bank by
revenue, may record losses as much as JPY20 billion due to
exposure to Lehman, spokeswoman Masako Shiono said in an
interview, according to Bloomberg.

The absolute priority rule under the Bankruptcy Code provides
that creditors have priority over a company's equity holders.
Shareholders will only receive value after creditors have been
paid.  Unsecured creditors won't obtain any recovery until
secured creditors receive recovery to the extent of the value of
their collateral.

Additionally, the Singapore Stock Exchange has suspended Lehman
Brothers Pte Ltd from taking on new securities and derivatives
positions.  SGX is facilitating the orderly transfer of customers'
derivatives positions from LBPL to other brokers.  At present,
LBPL is meeting their financial obligations to SGX's securities
and derivatives clearing houses.  SGX will continue to monitor the
situation and maintain the orderly function of the markets.

Korea's financial regulator, the Financial Services Commission,
also has banned Lehman Brothers Holdings Inc.'s Korean units from
selling and repaying debts until Dec. 15., the day after parent
firm filed for bankruptcy in the U.S., Yonhap News reports.
According to the report, Lehman's Seoul units will also be
prohibited from receiving deposits, trading stocks and
transferring money overseas.  The commission, the report relates,
said the ban was aimed at "protecting investors at home and
preventing potential chaos in local financial markets."

The Korean Times notes that Seoul's benchmark stock index plunged
6.54% on the news of Lehman's bankruptcy and insurance giant AIG
Inc.'s struggle for survival after being battered by mortgage
losses.  Moreover, Asia Pulse relates, that the Korean won
currency also plunged by KRW50.9 to close at 1,160.0 versus the
U.S. dollar, marking the biggest one-day loss since August 1998,
as local banks scrambled to buy the U.S. currency.

"The situation in the U.S. financial markets appears to be bad
because Lehman filed for bankruptcy only three days after it
announced a plan to sell its assets," Asia Pulse cited Shim
Jae-yeop, a senior analyst at Meritz Securities Co. in Seoul,
as saying.

Government officials, Yonhap points out, tried to calm the market
by assuring the public that Lehman's demise would probably erase
uncertainties in global financial markets in the long term.

The Pulse says that the Korea's finance ministry and the Bank of
Korea said they would act "if necessary."  Vice Finance Minister
Kim Dong-soo said the government will provide liquidity to
stabilize the nation's financial markets.  "The government and
the Bank of Korea will take steps against excessive fluctuations
in foreign exchange markets," he said.

As of the end of July, the Lehman units in Seoul had a total of
KRW1.6 trillion (US$1.44 billion) in assets from investors.
South Korean financial companies held about US$720 million in
securities linked to Lehman.

In Taiwan, the Financial Supervisory Commission, Taiwan's
watchdog, said it would help investor's of Lehman Brothers
Holdings Inc.'s Taiwan unit to file for damages against its parent
firm if the need arises, Business News reports.  The Commission,
the report relates, also ordered the Lehman's Taiwan office to
suspend operations until the parent company's financial crisis is
over. The local benchmark TAIEX stock index, The China Post
relates, precipitated in a steep and combined loss of 554 points
in the first two days of trading this week, compared with the
sharp fall of 504 points in the Dow Jones industrial average index
on Monday.

Taiwan Stock Exchange executives conducted an audit check at the
office of Lehman Brothers in accordance with the enforcement
regulations concerning TSE business operations, but have found no
abnormalities except it voluntarily ceased in securities trading
on September 16, according to The Post.

The Post says that a large number of financial institutions in
Taiwan have made investments in the bonds and other securities
issued, guaranteed by, or related to the Lehman.  Among the local
financial institutions, Hua Nan Commercial Bank revealed that it
still holds about NTUS$440 million worth of such bonds, The Post
says.  Hua Nan executives said they have taken necessary actions
to secure the NTUS$1.7 billion loan extended to the local branch
of Lehman Brothers, the same report adds.  Taiwan's institutional
and retail investors have about NTUS$80 billion (US$2.5 billion US
dollars) of exposure in Lehman investments.

The Taiwan branch of Lehman Brothers has also made investment in
the transactions of non-performing loans and delinquent assets on
the Taiwan market.

Business News points out that some Taiwan investors have asked
the Commission to freeze the assets of Lehman's Taiwan office to
cover their potential losses, but the Commission said that if
there are losses, the parent company is responsible, not its unit
in Taiwan.  If there is a need, it would help Taiwan investors
seek damages from the parent company, the commission added.

In India, the Reserve Bank of India (RBI) has advised Indian unit,
Lehman Brothers Capital Pvt Ltd, that it would need prior approval
of RBI before contracting any direct/indirect liability from any
institution in India or outside India or making any foreign
currency remittance, India Infoline News Service reports.
According to Infoline News, the RBI is keeping a close watch on
the developments in the wake of Lehman's bankruptcy filing and is
in constant touch with banks and other market participants to
manage any fallout of these developments on the Indian markets in
an orderly manner.

Meanwhile, The Economic Times says Lehman's bankruptcy wiped off
more than Rs 2,000 crore (US$431 million) from the market
valuation of those Indian companies in which the U.S. firm has
made equity investments.  In addition, recent news reports cited
by The Financial Express says Lehman had asked a section of its
BPO staff in India to quit.  In India, Lehman employs a total of
2,500 including those in the BPO unit.

The Times relates that Lehman has recorded a loss of more than Rs
50 crore on its investments in India, which is nearly 10 per cent
of its current holding worth an estimated over Rs 500 crore.

Late last month, Lehman offloaded around Rs 400 crore of its
equity holding in nearly 10 companies, most of which were
purchased by Deutsche Bank.  Prior to the sell-off, Lehman's
Indian equity portfolio is estimated to have been worth more than
Rs 1,000 crore, which has now nearly halved to about Rs 500
crore, the Times says.

Lehman also had equity holding in about two dozen firms at the
end of June quarter including Spice Communications, Spice Mobile,
Anant Raj Industries, Edelweiss Cap, IVRCL Infra and Tulip
Telecom, the Times adds.

Separately, the Times reports that Lehman's bankruptcy will
impact India's largest private bank ICICI Bank partly.  ICICI
Bank, the same report says, will have to take a hit of US$28
million on account of the additional provisioning that ICICI
Bank's UK subsidiary will have to make.

ICICI Bank's UK subsidiary had investments of EUR57 million
(around US$80 million) in senior bonds of Lehman Brothers, the
Times notes.  Broking house Edelweiss foresees the UK subsidiary
would have to book mark-to-market losses of US$200 million.
its subsidiaries.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: Asian Unit Quits as Citic Privatization Advisor
----------------------------------------------------------------
Lehman Brothers Asia Limited has withdrawn as financial adviser
to Gloryshare Investments Limited in connection with the proposed
privatization of CITIC International Financial Holdings Limited.

Lehman Brothers Asia has asked Gloryshare, a unit of CITIC group,
to seek a replacement advisor after the Stock Exchange of Hong
Kong, Ltd., issued restriction notices on four Hong Kong-based
Lehman Brothers entities, after Lehman Brothers Holdings, Inc.,
filed for Chapter 11 protection in the U.S.

Morgan Stanley Asia Ltd has replaced Lehman effective Sept. 17 as
financial advisor.

Lehman Brothers was formally retained by Gloryshare in June 10,
2008, but has been making a number of proposals to CITIC group in
connection with the transaction since 2007.  The terms of the
privatisation proposal envisaged that Banco Bilbao Vizcaya
Argentaria S.A., presently a substantial shareholder of CIFH,
would increase its shareholding interest in CIFH from about 15%
to 30%, the balance of the shares in CIFH being held by the
offeror or members of its group.

The proposal has not been accepted by CIFH shareholders.  In late
August 2008, CITIC group beefed up its offer by boosting proposed
cash payments by US$493.2 million, offering HKD2.16 per share
plus one China CITIC Bank Corp Ltd H share for each CIFH share.
CITIC group originally offered one CNCB CITIC Bank Corp H share
plus HKD1.46 cash for each CIFH share.

Jones Day is the adviser to CIFH, and Linklaters is the adviser
to Banco Bilbao.

Separately, Lehman Brothers Holdings Inc. suspended the provision
of secondary market quotes or liquidity for unlisted structured
products.
In a Sept. 17 statement, Lehman Brothers said it suspended the
provision for unlisted structured products issued by Pacific
International Finance Limited, Atlantic International Finance
Limited, and Pyxis Finance Limited pending further announcements.

Lehman Brothers is the swap guarantor for the minibonds issued by
Pacific International and the notes issued by the two other
companies.  It is also the guarantor of the collateral for the
notes and for some series of minibonds.

The swap counterparties for the minibonds and the notes are all
wholly-owned subsidiaries of Lehman Brothers.

Lehman Brothers Asia Limited is the arranger of the Lehman
Brothers Unlisted Structured Products.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


LEHMAN BROTHERS: S&P Cuts Ratings on 11 Securities Transactions
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on 10
Lehman Bros. Holdings Inc.-related and one Lehman Bros. Inc.-
related repackaged securities transactions.  At the same time, S&P
removed its rating on one of the downgraded transactions from
CreditWatch with developing implications, where it was placed on
Sept. 12, 2008, and placed its ratings on another transaction on
CreditWatch with developing implications.

S&P lowered its ratings on these transactions following Standard &
Poor's downgrade of LBHI to D/--/D on Sept. 16, 2008, and Standard
& Poor's downgrade of Lehman Bros. Inc. to BB-/Watch Dev/B on
Sept. 15, 2008.

Nine of the repack downgrades reflect heightened risk to the
transactions given LBHI's recent bankruptcy filing.  The filing
has increased the likelihood of cash flow shortfalls because the
repayment terms of those transactions were, in whole or in part,
supported by the fact that LBHI was acting as a guarantor of an
unrated affiliate's swap payment obligations.

The rating on OMX Timber Finance Investments II LLC, a pass-
through transaction, is based solely on LBHI's guarantee of the
repayment of an installment note that was issued by Boise Land &
Timber II LLC, which Standard & Poor's does not rate.

The rating on RACERS Series 2002-38-S, a pass-through transaction,
is based, in part, on Lehman Bros. Inc.'s obligation to make whole
market value losses upon the occurrence of a "non-investment-grade
downgrade event," as per the transaction documents, related to the
underlying issuer of the assets.

The Lehman Bros. Inc. and LBHI-related research updates, "Lehman
Bros. Holdings Downgraded To 'Selective Default'; Other Lehman
Entities To 'BB-' Or 'R'" and "Lehman Brothers Holdings Inc.
Rating Lowered To 'D'," were published on Sept. 15, and Sept. 16,
respectively, on RatingsDirect.

                         Ratings Lowered

Restructured Asset Certificates With Enhanced Returns (RACERS)
Series 2002-10-TR Trust
US$14 million certificates

                  Rating
                  ------
Class        To              From
-----        --              ----
Certs        CCC             A-

Restructured Asset Certificates With Enhanced Returns (RACERS)
Series 2003-7-A Trust
US$17 million certificates

                  Rating
                  ------
Class        To              From
-----        --              ----
Certs        CCC             A+

RACERS Series 2004-6-MM Trust
US$2,925 million certificates

                  Rating
                  ------
Class        To              From
-----        --              ----
            C               A-1

Restructured Asset Securities with Enhanced Returns (RACERS)
Series 2004-25-TR
US$63 million

                  Rating
                  ------
Class        To              From
-----        --              ----
A-1          CCC             BB
A-2          CCC             BB
A-3          CCC             BB
A-4          CCC             BB
A-6          CCC             BB
A-7          CCC             BB

Restructured Asset Certificates w/Enhanced Returns (RACERS) Series
2005-6-A Trust
US$5 million credit-linked certificates

                  Rating
                  ------
Class       To              From
Certs       CCC             AA+

Restructured Asset Certificates with Enhanced Returns ("RACERS")
Series 2006-15-A Trust
US$500 million certificates

                  Rating
                  ------
Class        To              From
-----        --              ----
Certs        CCC              AAA

Restructured Asset Securities w/Enhanced Returns, Series 2007-7 MM
Trust
US$5000 million notes

                  Rating
                  ------
Class        To              From
-----        --              ----
            C               A-1/Watch Dev

Variable Funding Trust 2007-1
US$500 million variable rate senior secured revolving notes

                  Rating
                  ------
Class        To              From
-----        --              ----
Notes        CCC             A

Variable Funding Trust 2008-1
US$500 million variable rate senior secured revolving notes

                  Rating
                  ------
Class        To              From
-----        --              ----
Notes        CCC             A

OMX Timber Finance Investments II LLC
US$735 million Notes

                  Rating
                  ------
Class        To              From
-----        --              ----
A-2          CCC             A

Restructured Asset Certificates With Enhanced Returns (RACERS)
Series 2002-38-S
US$50 million certificates

                  Rating
                  ------
Class        To              From
-----        --              ----
A-1          BB-/Watch Dev   A-
A-2          BB-/Watch Dev   A-


LEHMAN BROTHERS: S&P Cuts Five Ratings and Puts Under Dev. Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its short-term ratings
on nine Lehman Brothers Inc. liquidity facility-backed issues and
placed them on CreditWatch with developing implications.  This
action follows Standard & Poor's Sept. 15, 2008, downgrade of
Lehman Brothers Inc. to 'BB-/B' from 'A+/A-1' and placement of the
rating on CreditWatch with developing implications.  As Lehman
Brothers provides liquidity for the issues, the downgrade and
CreditWatch action only affect the short-term ratings on the
issues.

Issue Description

* Ribco Trust (California) floating rate trust receipts series
   2004 L27 relating to State of California economic recovery
   bonds series 2004A

* Ribco Trust series 00L-12 floating rate trust receipts
   relating to Chicago college single-family mortgage revenue
   bonds series 2000A

* Ribco Trust series 00L-9 floating rate trust receipts relating
   to Colorado Housing Finance Authority single- family bonds
   2000 B-2

* Ribco Trust (Florida Hsg Fin Corp.) series 2004 L9 floating
   rate trust receipts relating to Florida Housing Finance Corp.
   homeowner mortgage revenue bonds 2004 series 2

* Ribco Trust (Jefferson Parish Home Mtg Auth) series 2003 L-51J
   floating rate trust receipts relating to Parish of Jefferson
   Home Mortgage Authority single-family mortage revenue bonds
   series 2003C

* Ribco Trust (Metropolitan Transp Auth) Floating Rate Trust
   Receipts series 2008-F111W relating to Metropolitan Transp
   Authority

* Ribco Trust (Missouri Hsg Dev Comm) series 2004 L15 floating
   rate trust receipts relating to Missouri Housing Development
   Community single-family mortgage revenue bonds series 2004
   series A-1

* Ribco Trust (Nebraska Invest Fin Auth) series 2001L-31
   floating rate trust receipts single-family housing revenue
   bonds series 2000A

* Ribco Trust series 2004L2 floating rate trust receipts
   relating to Texas Department of Housing and Community Affairs
   home mortgage revenue bonds


MORGAN STANLEY: In Merger Talks with Wachovia
---------------------------------------------
Aaron Lucchetti, Randall Smith, and Jenny Strasburg at The Wall
Street Journal report that Morgan Stanley is in preliminary merger
talks with Wachovia Corp. and other banks in hopes of insulating
itself from the growing financial pressures.

Morgan Stanley aims to regain investor confidence, citing people
familiar with the matter.  Jessica Hall and Joseph A. Giannone at
Reuters report that Morgan Stanley's stock dropped sharply on
Wednesday, suffering its worst one-day decline ever and falling to
a 10-year low during the session.  Reuters adds that Morgan
Stanley's credit default swaps traded as if it were in imminent
danger of default.

The New York Times relates that relates that Morgan Stanley
approached Wachovia about a potential deal, earlier this year, but
was rebuffed.

Telegraph.co.uk relates that Morgan Stanley wants a commercial
bank with a significant deposit base to increase its access to
capital in light of the continued credit crunch.  According to
WSJ, commercial banks like Wachovia, perceived to be more stable,
could create strong incentive for the investment banks to link up
with them.  A source said that Wachovia is also seeking ways to
limit short sales of its stock, Bloomberg reports.  Wachovia Chief
Executive Officer Robert Steel is cutting the firm's expenses by
US$1.5 billion and reducing risk to cope with increasing losses
from the company's US$122 billion of option adjustable-rate
mortgages.  According to Reuters, Wachovia "has been hobbled by
mortgage losses, stemming from its ill-timed takeover of Golden
West at the peak of the housing boom in 2006," and the company has
reportedly been seeking a merger partner, hiring Goldman Sachs to
study its options.

WSJ relates that Morgan Stanley's chief executive, John Mack, said
earlier in a Fortune magazine interview that he was "not thinking
about selling the firm," but when its stock price continued to
decline, Mr. Mack received a call from Mr. Steel about a potential
merger.

"I don't think Morgan Stanley can buy Wachovia because of
regulatory hurdles.  And I don't know that Wachovia has the
capital to buy Morgan Stanley," Reuters quoted Danielle Schembri,
a bond analyst covering broker-dealers at BNP Paribas in New York,
as saying.

Morgan Stanley is also exploring preliminary mergers with other
banks all over the world, WSJ relates, citing people familiar with
the matter.  These sources, according to WSJ, said that Morgan
Stanley may remain independent, but if a merger deal would be
reached it could "come with the likes of HSBC Holdings PLC of the
U.K., Banco Santander SA of Spain, Japan's Nomura Holdings Inc., a
Chinese financial institution or a domestic partner such as Bank
of New York Mellon Corp."

WSJ reports that Mr. Mack also called U.S. Treasury Secretary
Henry Paulson, Securities and Exchange Commission Chairperson
Christopher Cox, and Goldman Sachs CEO Lloyd Blankfein, to discuss
how to stop the drop in share prices.  Morgan Stanley and Goldman
Sachs focused on how to stop short-sellers betting on a decline in
Goldman and Morgan shares, the report says, citing sources.

Former Morgan Stanley market strategist Byron Wien suggested that
greater transparency and controls be placed on the market for
credit-default swaps, which measure the cost of insuring a
company's debt, WSJ relates.  Mr. Wien said that the increasing
cost of those swaps has influenced stock-price drops, according to
the report.

WSJ relates that Morgan Chief Financial Officer Colm Kelleher said
Tuesday that the company doesn't need to issue debt or new stock
until 2009.

CNBC reports that Morgan Stanley was also having deal discussions
with CITIC, the China-controlled conglomerate that owns brokerage
firm CITIC Securities.

                 About Wachovia Corporation

Based in Charlotte, North Carolina, Wachovia Corporation (NYSE:WB)
-- http://www.wachovia.com/-- is one of the nation's diversified
financial services companies, with assets of
US$812.4 billion at June 30, 2008.

Wachovia provides a broad range of retail banking and brokerage,
asset and wealth management, and corporate and investment banking
products and services to customers through 3,300 retail financial
centers in 21 states from Connecticut to Florida and west to Texas
and California, and nationwide retail brokerage, mortgage lending
and auto finance businesses.  Clients are served in selected
corporate and institutional sectors and through more than 40
international offices.  Its retail brokerage operations under the
Wachovia Securities brand name manage more than US$1.1 trillion in
client assets through 18,600 registered representatives in 1,500
offices nationwide.  Online banking is available at wachovia.com;
online brokerage products and services at wachoviasec.com; and
investment products and services at evergreeninvestments.com.

As reported in the Troubled Company Reporter on July 22, 2008,
reports say that a team of regulators from more than five states
investigated the St. Louis headquarters of Wachovia Corp.'s
securities division in relation to its auction-rate bonds sales,
reports say.  The regulators were from Missouri, Illinois,
Massachusetts, Pennsylvania, New Jersey and other states.

Missouri Secretary of State Robin Carnahan said in a statement the
investigation was prompted because Wachovia hasn't "fully
complied" with a Missouri probe on the matter.  Investors have
filed complaints after they were unable to access money frozen
when firms in the auction-rate bonds market abandoned their
operations in February.

The team delivered more than a dozen subpoenas to the unit's
executives and agents on July 17 as part of its probe into sales
practices, internal evaluations of the auction-rate securities
market and marketing strategies.

Bloomberg News reports that up to US$218 billion of auction-rate
bonds sold by student-loan providers, municipalities and closed-
end mutual funds remained frozen.

                      About Morgan Stanley

New York-based Morgan Stanley -- http://www.morganstanley.com--
is a global financial services firm that, through its subsidiaries
and affiliates, provides its products and services to a group of
clients and customers, including corporations, governments,
financial institutions and individuals.  Morgan Stanley's business
segments include Institutional Securities, Global Wealth
Management Group and Asset Management.  The company conducts its
business from New York City, its regional offices and branches
throughout the United States and its principal offices in London,
Tokyo, Hong Kong and other world financial centers.

As reported in the Troubled Company Reporter on May 9, 2008, Fitch
cut Morgan Stanley's certificate rating to C/DR4 from CC/DR2.


SEA CONTAINERS: Files Amended Plan and Disclosure Statement
-----------------------------------------------------------
Sea Containers Caribbean Inc., Sea Containers Ltd., and Sea
Containers Services Ltd. delivered to the U.S. Bankruptcy Court
for the District of Delaware a first amended joint plan of
reorganization and accompanying disclosure statement on Sept. 16,
2008.

The Amended Plan offers more details about the company's intended
activity once it emerges from bankruptcy protection.

The Court will convene a hearing on September 19, 2008, to
consider the adequacy of the information contained in the
Debtors' Disclosure Statement.

The hearing to consider confirmation of the Plan is scheduled on
November 17, 2008.  Parties have until November 10 to file
objections to the Plan.

                         New Equity

The Amended Plan provides that equity of Newco, the entity to
which SCL will transfer its remaining container interests, will
vest in the Plan Administrator and, subject to certain holdbacks
and trusts set aside for certain claims, beneficial ownership
interest in Newco Equitv will be distributed on a pro rata basis
to holders of allowed claims.

The value of Newco Equity in large part will derive, in large
part, from (i) the value of SCL's interests in GE SeaCo SRL, the
joint-venture entity between SCL and General Electric Capital
Corporation, and (ii) the value of SCL's interests in Sea
Containers SPC Ltd., the special purpose subsidiary established
by SCL that owns a substantial portion of SCL's shipping
containers and related lease revenues.

To ensure that Non-Debtor Subsidiary directors do not seek to
enforce intercompany claims, the Amended Plan contemplates the
establishment of the Non-Debtor Subsidiary Reserve, which will
consist of cash and Newco Equity that will be available to fund
certain payments to creditors of the Non-Debtor Subsidiaries that
are currently known, or that the Debtors will know of by Nov. 30,
2008.  The payments will be paid according to an entity priority
model dividend rate so as to approximate what those creditors
would have received in a simultaneous group-wide liquidation.

The Non-Debtor Subsidiary Reserve is estimated to have
US$6,000,000 of cash and US$3,000,000 in aggregate value of Newco
Equity shares.

                  Equalization Escrow Account

The Amended Plan also contemplates the establishment of an
equalization escrow account, which will hold the equalization
claim reserve, to be administered by the equalization escrow
agent.  The Equalization Claim Reserve will be used to satisfy
any valid Equalization Claim.  In addition, a separate reserve
will be established to satisfy equalization-related employee
claims, if any.  The Equalization-Related Employee Claim Reserve
is currently estimated to consist of US$4,500,000 in cash and
shares of Newco Equity with an aggregate value of US$13,100,000.

The Amended Plan provides that any residual value in the
Equalization Claim Reserve after satisfaction of the allowed
Equalization Claim will be transferred to the Equalization-
Related Employee Claim Reserve subject to a US$23,800,000 maximum
limit of Newco Equity that can be transferred to the
Equalization-Related Employee Claim Reserve.

All Newco Equity that was maintained by the Equalization Claim
Reserve that is not transferred to the Equalization-Related
Employee Claim Reserve will be cancelled.  Any residual property
remaining in the Equalization-Related Employee Claim Reserve
other than Newco Equity after satisfaction of Allowed
Equalization-Related Employee Claims will revert to Reorganized
SCL, and, after payment of post-emergence costs, will be used to
pay the Newco Repatriation Note.

After the Newco Repatriation Note is paid in full, any remaining
property of Reorganized SCL, other than Newco Equity, will be
distributed to Reorganized SCL for distribution to the holders of
Allowed Claims on a pro rata basis.

            Bermuda and U.K. Scheme of Arrangement

In light of SCL being incorporated in Bermuda, the Bermuda Scheme
of Arrangement is necessary to ensure that the Plan can be
implemented under the laws of Bermuda.  The Debtors have also
determined that the U.K. Scheme of Arrangement is necessary to
implement the Pension Schemes Settlement Agreement, which settles
significant claims against the Debtors, and is a major aspect of
the Plan.  The effectiveness of the Schemes of Arrangement is a
condition to consummation of the Plan.

Because of certain English regulatory requirements, the Pension
Schemes Claims against SCSL can only be compromised by way of a
U.K. scheme of arrangement or their treatment must be otherwise
approved by the U.K. Pension Protection Fund.  As a consequence,
the Pension Schemes will participate in the U.K. Scheme of
Arrangement.  The Amended Plan says that there will only be a
single class of U.K. Scheme Claims in the U.K. Scheme of
Arrangement consisting of the 1983 Pension Scheme Claims and the
1990 Pension Scheme Claims.

It is anticipated that the English Court will have held the
hearing to approve the UK Scheme of Arrangement prior to the
close of voting for the Plan.  Voting on the U.K. Scheme of
Arrangement and any Debtor affiliate schemes of arrangement is
separate from voting on the Plan.

               New Provisions Added to the Plan

The Plan Proponents have inserted to the Amended Plan a section
relating to their settlement negotiations with GECC with respect
to GE SeaCo.  In the section on disposal of the Debtors' non-core
business, a provision was added to reflect that each Non-Debtor
Subsidiary will pay the costs of its own liquidation and wind-
down, including the costs of disposing of non-container-leasing
businesses and assets.

The Plan is also amended to add sections relating to, among other
things, risks with respect to the Sea Containers America pension
plan.  In that section, the Debtors express their disagreement
with the assertions of Pension Benefit Guaranty Corporation that,
among other things, SC America and the Debtors are jointly and
severally obligated to contribute to the Pension Plan the amounts
necessary to satisfy the minimum funding standards of the
Employee Retirement Income Security Act of 1974 and the Internal
Revenue Code.

                        Exit Financing

The Amended Plan discloses that in an effort to obtain the most
attractive exit financing, the Debtors approached 10 potential
exit lenders, including their existing bondholders, who were
already knowledgeable about the Debtors' container interests and
leasing activities.  The Debtors received three preliminary, non-
binding letters of intent from the 10 parties.

After consulting with its advisors and the Official Committee of
Unsecured Creditors' representatives, the Debtors selected a
still unnamed exit lender with significant experience financing
container leasing companies as the preferred lender because of
its more attractive offers.  The Debtors subsequently negotiated
extensively for weeks to reach agreement on a financing term
sheet that best meets the Debtors' requirements.

The term sheet, which is in the final stages of negotiation,
contemplates a financing facility of up to US$150,000,000 to Newco
to repay the DIP Facility, fund certain payments contemplated
under the Plan, and provide working capital for Newco.

According the Plan, the Debtors expect shortly to complete
negotiation of the term sheet, and to receive a financing
commitment.  They assure the Court that a summary of the material
terms of the term sheet will be subsequently filed.  They
anticipate that any financing commitment will be subject to
certain customary conditions, which will need to be satisfied
prior to funding.

                       Avoidance Actions

The Debtors have analyzed potential avoidance of prepetition
transfers under Sections 547 and 550 of the Bankruptcy Code,
identifying approximately US$10,000,000 of potentially
preferential transfers in the aggregate.

Based upon their analysis, the Debtors believe that prosecution
of these transfers through adversary proceedings likely will not
produce sufficient recoveries to justify the costs incurred in
connection with prosecution.  The Debtors, however, believe that
the existence of the transfers may provide the basis for the
disallowance of one more proofs of claim filed against the
Debtors, pursuant to Section 502(d) of the Bankruptcy Code.

The Debtors are currently engaged in discussions with advisors to
the Creditors Committees with respect to the benefits and
associated costs of prosecuting preference actions.  In any
event, the Debtors assert that nothing in the Amended Plan or
Amended Disclosure Statement will be construed to restrict or
constitute a waiver of the Debtors' ability to bring avoidance
actions against any entity, except with respect to those entities
expressly released under the Plan.

A full-text copy of the Debtors' First Amended Chapter 11 Plan is
available for free at:

             http://ResearchArchives.com/t/s?3253

A full-text copy of the Debtors' First Amended Disclosure
Statement is available for free at:

             http://ResearchArchives.com/t/s?3254

A blacklined copy of the Debtors' First Amended Plan is available
for free at:

             http://ResearchArchives.com/t/s?3255

A blacklined copy of the Debtors' First Amended Disclosure
Statement is available for free at:

             http://ResearchArchives.com/t/s?3256

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

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

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

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 50;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEA CONTAINERS: SCL Panel, et al., Balk at Disclosure Statement
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of Sea Containers,
Ltd., relates that the Debtors' request to approve the settlement
of the Pension Claims has been briefed, tried and argued, and the
parties await the decision of the U.S. Bankruptcy Court for the
District of Delaware.

The SCL Committee asserts that the Court could resolve the
Settlement Request in one of these ways:

    (i) the Court could grant the Settlement Request, and
        approve the proposed Pension Settlement;

   (ii) the Court could deny the Settlement Request outright; or

  (iii) the Court could deny the Settlement Request, while
        providing guidance reflecting the Court's view of
        reasonable settlement elements and a reasonable
        settlement range.

The Debtors are asking the Court to move forward immediately with
proceedings to approve their disclosure statement explaining
their proposed joint plan of reorganization, and to solicit and
confirm the Plan that assumes and permits only one outcome on the
Settlement Request -- approval of the Pension Settlement -- even
if that settlement is one of the most hotly contested issues in
the bankruptcy cases, asserts William H. Sudell, Jr., Esq., at
Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware.

"Dissemination of the Plan prior to a ruling on the Settlement is
premature and is a potentially needless waste of the time and
resources of the Court and the estates," Mr. Sudell contends.  He
points out that if the Settlement Request is denied, or if the
Pension Settlement is modified, the Debtors would be required to
prepare a new disclosure statement and plan, and re-solicit votes
from the creditors.

The proposed Plan is premised on fundamental and critical
uncertainties, Mr. Sudell says.  He notes that the Plan requires
that the Court grant the Settlement Request in its entirety, and
thus, it is impossible for Plan confirmation to proceed unless
the Court rules to approve the Pension Settlement.  He adds that
if the Settlement Request is denied, parties would likely be
forced for an expeditious re-negotiation with the relevant facts
and law now on the table.

Against this backdrop, the SCL Committee maintains that the most
prudent, practical, economical, and expeditious way to arrive at
a confirmable Plan is for the Court to issue an order (i) denying
approval of the adequacy of the Disclosure Statement, and (ii)
denying the pending Settlement Request, and that provides
guidance reflecting the Court's view of a reasonable settlement
range.

             SCSL Committee & Trustees Object Too

Although the disclosure statement accompanying the Debtors' joint
plan of reorganization purports to characterize the factors that
will inform the Pension Schemes' decision to accept or reject the
Plan, it fails to disclose that the Pension Schemes intend to
vote to reject the Plan if, by the voting deadline, there is any
chance that the Plan will be consummated in a way that would
jeopardize the Pension Schemes' ability to enter the Pension
Protection Fund or trigger a Pension Protection Fund assessment
period, the Official Committee of Unsecured Creditors of Sea
Containers Services Limited and the Pension Schemes' Trustees
tell Judge Carey.

David B. Stratton, Esq., at Pepper Hamilton LLP, in Wilmington,
Delaware, relates that the Plan contemplates that one of the
joint provisional liquidator in Bermuda or Ernst & Young LLP will
be appointed Plan administrator, with the Reorganized Sea
Containers Limited to pay all reasonable amounts needed by the
administrator and currently pegged at US$8,000,000.

Mr. Stratton argues that further disclosure is required with
respect to the contemplated terms of the Plan Administrator's
engagement.  The Plan sets forth procedures for the appointment
of the initial Plan Administrator; however, the Disclosure
Statement fails to disclose in any detail the terms of the Plan
Administrator's compensation, he points out.

"As the Plan Administrator's compensation will be paid from the
same assets that will be used to satisfy distributions to
creditors of the Reorganized SCL, holders of claims against
Reorganized SCL should be made fully aware of the terms of
compensation prior to voting on the Plan," Mr. Sudell tells the
Court.  "As currently drafted, the Disclosure Statement does not
provide sufficient information regarding compensation and any
other material terms of the engagement to enable claim holders to
make an informed judgment about the Plan," he continues.

The SCSL Committee and the Pension Trustees have identified
several disclosure issues to the Debtors, Mr. Sudell discloses.
He states that as of the Disclosure Statement deadline, many of
those issues remained unresolved.  He notes that in a number of
instances, and in the hope of reaching a compromise on certain
open issues, the SCSL Committee and the Pension Trustees proposed
their own language for inclusion in the Disclosure Statement.

To the extent that any of the issues raised by the SCSL Committee
and the Pension Trustees remain unresolved at the time of the
Disclosure Statement hearing, the SCSL Committee and the Pension
Trustees reserve their right to raise any objections in respect
of those issues at the hearing.

Accordingly, the SCSL Committee and the Pension Trustees ask the
Court to deny the Debtors' request for approval of Disclosure
Statement's adequacy, unless the Disclosure Statement is revised
to disclose:

  (a) that the Pension Schemes will vote to reject the Plan if
      they believe by the voting deadline that the Plan is
      likely to be consummated in a way that would jeopardize
      the Schemes' Pension Protection Fund Eligibility; and

  (b) the contemplated terms of the Plan Administrator's
      compensation.

                 Contrarian, et al., See Flaws

Bondholders Contrarian Capital Advisors, LLC, J.P. Morgan
Securities Inc., Credit Trading Group, Post Advisory Group, LLC,
Trilogy Capital LLC, and Varde Investment Partners, L.P., jointly
submit their reservation of rights to the Court with respect to
the Debtors' request for the Court to find their proposed
disclosure statement as containing adequate information.

As mentioned by the Debtors' counsel during the recent status
conference, the Debtors have been working with, among others, the
Official Committee of Unsecured Creditors of Sea Containers,
Ltd., and the Bondholders' counsel to resolve any open issues
with respect to the Disclosure Statement, relates Neal J.
Levitsky, Esq., at Fox Rothschild LLP, in Wilmington, Delaware.
He notes that the Bondholders are hopeful that the open issues
will be resolved.

If there are still additional information requested by the
Bondholders that the Debtors have not yet finalized or filed by
the deadline for filing Disclosure Statement objections, the
Bondholders reserve all of their rights to raise any objections
they may have at the Disclosure Statement hearing.

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

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

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

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 50;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


VICTORIA CAVENDISH: Joint Liquidators Take Over Operations
----------------------------------------------------------
Colin Ian Vickers and Christopher David Stevens of Vantis Business
Recovery Services were appointed joint liquidators of Victoria
Cavendish Investments Ltd. (formerly VCI Holdings Ltd. and
Bonusexpand Ltd.) and Victoria Cavendish Properties Ltd.
(formerly Ignitron Ltd.) on Sept. 2, 2008, for the creditors'
voluntary winding-up proceeding.

The companies can be reached at:

         1 Horsham Gates
         North Street
         Horsham
         England


WEARSIDE MARBLE: Taps Liquidators from Tenon Recovery
-----------------------------------------------------
Steven Philip Ross and Ian William Kings of Tenon Recovery were
appointed joint liquidators of Wearside Marble & Granite Ltd. on
Aug. 27, 2008, for the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Wearside Marble & Granite Ltd.
         c/o Tenon Recovery
         Tenon House
         Ferryboat Lane
         Sunderland
         Tyne and Wear
         SR5 3JN
         England


* S&P Drops Ratings on Various European Leveraged Super Sr. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered and kept on
CreditWatch with negative implication its ratings on various
spread-based leveraged super senior (LSS) notes issued by Chess
II Ltd., Midgard CDO PLC, Omega Capital Investments PLC, and
Saphir Finance PLC.  At the same time, S&P placed its ratings on
Claris Ltd. series 64/2006, Eirles Two Ltd. series 337, and the
class B7E-1 notes of Omega Capital Investments PLC series 12 on
CreditWatch negative.

The rating actions follow a significant widening in credit default
swap spreads for the underlying reference obligors over recent
weeks.  For spread-based LSS transactions, this has led to an
increased likelihood that a breach of the portfolio spread trigger
might occur.  Furthermore, some of the transactions affected have
suffered defaults in the underlying reference portfolio.
Consequently the note ratings have been lowered and remain on
CreditWatch negative or are being placed on CreditWatch negative.

LSS transactions reference both credit and market-value risks
associated with the underlying portfolio.  These transactions have
a market-value trigger based on the weighted-average portfolio
spread and portfolio losses at a given point in time.  If
breached, this would lead to an unwind event.  S&P assesses the
likelihood of breaching the attachment point (credit risk) as well
as the probability of breaching a specific spread trigger (market
value risk) when assigning a rating.

Ratings Lowered And Remaining On CreditWatch Negative:

Chess II Ltd.:

US$10 million secured leveraged super senior credit-linked
floating-rate notes series 10

Class        Ratings To           Rating From
-----        ----------           -----------
   A         BB/Watch Neg         BBB-/Watch Neg

EUR5 million secured leveraged super senior credit-linked notes
series 11

              BB/Watch Neg         BBB-/Watch Neg

EUR5 million secured leveraged super senior credit-linked notes
series 12

              BB/Watch Neg         BBB-/Watch Neg


EUR5 million secured leveraged super senior credit-linked notes
series 13

              BB/Watch Neg         BBB-/Watch Neg


EUR5 million secured leveraged super senior credit-linked notes
series 14

              BB/Watch Neg         BBB-/Watch Neg


EUR3 million secured leveraged super senior credit-linked notes
series 15

              BB/Watch Neg         BBB-/Watch Neg


EUR10 million secured leveraged super senior credit-linked notes
series 16

              BB/Watch Neg         BBB-/Watch Neg


EUR12 million secured leveraged super senior credit-linked notes
series 17

              BB/Watch Neg         BBB-/Watch Neg


EUR8 million secured leveraged super senior credit-linked notes
series 18

              BB/Watch Neg         BBB-/Watch Neg


EUR30 million secured leveraged super senior credit-linked notes
series 19

              BB/Watch Neg         BBB-/Watch Neg


EUR30 million secured leveraged super senior credit-linked notes
series 20

              BB/Watch Neg         BBB-/Watch Neg


EUR10 million secured leveraged super senior credit-linked
fixed-rate notes series 21

              BB/Watch Neg         BBB-/Watch Neg


EUR20 million secured leveraged super senior credit-linked
fixed-rate notes series 22

              BB/Watch Neg         BBB-/Watch Neg

Midgard CDO PLC:

EUR15 million Embla fixed-rate leveraged super senior credit
linked notes series 2005-14

              CCC/Watch Neg        A/Watch Neg

Omega Capital Investments PLC:

EUR100 million secured floating-rate notes (Highway series 1)
series 12

C7E-1         BB/Watch Neg         AAA/Watch Neg
C7E-2         BB/Watch Neg         AAA/Watch Neg

Saphir Finance PLC:

EUR20 million long/short leveraged super senior tranche notes
series 2006-1

              BB/Watch Neg         BBB/Watch Neg

Ratings Placed On CrediWatch With Negative Implications:

Claris Ltd.:

EUR50 million leveraged floating-rate credit-linked notes series
64/2006

              AAA/Watch Neg        AAA

Eirles Two Ltd.

EUR15 million variable-rate LSS Secured credit-linked notes
series 337
              BB+/Watch Neg        BB+

Omega Capital Investments PLC:

EUR100 million secured floating-rate notes (Highway series 1)
series 12

B7E-1         AAA/Watch Neg        AAA


* European Construction Biz Diversifies to Cope Crunch, S&P Says
----------------------------------------------------------------
Despite cooling property markets and tighter lending conditions,
some sectors of the European construction industry are holding up
and could help companies counter the industry downturn, says
Standard & Poor's Ratings Services in the "Industry Report Card:
European Construction Firms Diversify To Manage Cooling Property
Markets And Tighter Lending," published on RatingsDirect.

"Civil engineering activity should remain solid given the enormous
pent-up demand for infrastructure across the continent," said
S&P's credit analyst Izabela Listowska.

Second, the still-buoyant demand for construction assets in
developing markets such as Eastern Europe, Russia, and the Middle
East, will continue benefiting European builders present in these
regions.

Furthermore, earnings contributions from activities beyond
traditional construction, such as concessions, utilities,
environmental services, should continue to provide some credit
support.

"In general, broad business diversity is an important factor in
limiting exposure to industry risks and stabilizing overall
operating performance and cash flow generation," said
Ms. Listowska.  "Consequently, the large and well-diversified
construction groups, in particular, should be better placed than
homebuilders to manage the industry's cyclical downturn.  These
include Austria-based Strabag SE (BBB-/Stable/--) and Germany's
Bauer AG (BB+/Positive/--).

Cooling housing markets, softening GDP, and tighter lending terms
will depress European construction activity and investment over
the next few quarters, the report says.  After the boom of the
past few years, the Western European homebuilding sector, which
accounts for a sizable share of the total European construction
output, is now facing a sharp correction that will weigh on the
overall construction industry's statistics and outlook.

Over the medium term, nonresidential markets, which generally lag
some way behind economic cycles, are also likely to start feeling
the impact of overall economic weakening and falling pricing
power, although the length and magnitude of the slowdown is yet
uncertain.


* Fitch Weighs Latent Rating Impact of Lehman's Bankruptcy on CDOs
------------------------------------------------------------------
Fitch Ratings is currently assessing the potential rating impact
of the bankruptcy of Lehman Brothers Holdings Inc. on synthetic
collateralized debt obligations that it rates.  Following LBHI's
declaration of bankruptcy on 15 September Fitch downgraded the
Issuer Default Rating and debt ratings of LBHI and its parent,
Lehman Brothers Inc., along with other subsidiaries.  These
downgrades may adversely impact the ratings of synthetic CDOs
whose credit quality is linked in some way to that of Lehman-
related entities.  As a result, Fitch has placed 23 tranches of
CDO transactions on Ratings Watch Negative.

Lehman acted as CDS swap counterparty in 27 Fitch-rated public
synthetic CDOs (and 35 private CDOs); 12 (17 private) in Europe;
15 (15 private) in Asia and three private in the U.S.  In many of
these transactions, Lehman Brothers Special Financing Inc. acted
as the buyer of credit protection from the CDO as CDS swap
counterparty, and LBIH acted as a guarantor or credit support
provider.  The impact on CDO note ratings where a Lehman entity
acts as swap counterparty will depend upon many factors, including
whether the swap may be transferred to another counterparty,
whether the CDO transaction faces an automatic unwind following
the Lehman bankruptcy, and the extent to which noteholders may be
subject to market value risk of eligible securities in the event
of early termination of the transaction.

Should the swap counterparty, guarantor, or credit support role
not be taken over by another adequately rated institution, Fitch
expects early termination events to be triggered, if not
immediately, then within a 30 day timescale.  If an early
termination is triggered where the swap counterparty is the
defaulting party, the eligible securities would be either
liquidated and used to repay the CDO notes before any swap
termination payment is potentially due to LBHI, or would be
delivered to the noteholders.

In these instances, the CDO noteholders' risk profile may shift
from the portfolio of reference entities to either the liquidation
value or to the ongoing credit and market risk of the eligible
securities.  In the liquidation scenario, the CDO noteholders will
either be paid in full from proceeds of the eligible securities,
or will incur a shortfall if the proceeds are less than the
outstanding amount of the notes, plus any accrued and unpaid
interest.

In the three private US transactions, collateral-posting
arrangements were in place to cover any difference between the
market value of the eligible securities and the outstanding
balance of the notes, should early termination occur.  In such
cases, the loss to noteholders would be expected to be limited.

For the remaining 27 (32 private) transactions, collateral-posting
arrangements were documented to come into force only following the
swap counterparty's, guarantor's, or credit support provider's
Short-term rating being downgraded below 'F1'.  Since it is not
expected that LBHI will meet its collateral-posting obligations,
should early termination occur, the noteholders would be subject
to market value risk on the eligible collateral, and the
noteholders may lose some portion of their investment, depending
on the current market value of the eligible securities.  As a
result, Fitch expects that an early termination may result in the
downgrade of the notes to the 'CCC' category or below despite the
fact that recoveries may be good to high in many cases.  As a
result, Fitch has placed the following 23 tranches on RWN (and is
maintaining 11 on RWN).

Europe

Jupiter Quartz Finance Plc Series 2004-1
  -- Class A (ISIN XS0193411864): 'AA+'; remain on RWN
  -- Class B (ISIN XS0193412169): 'AA'; remain on RWN

Jupiter Quartz Finance Plc Series 2004-2
  -- Class A (ISIN XS0199578450): 'AA-'; remain on RWN
  -- Class B (ISIN XS0199578708): 'A+'; remain on RWN

Phoenix 2002-1
  -- Class A (CUSIP 71915QAA5): 'AA+'; on RWN
  -- Class B (CUSIP 71915QAB3): 'AA'; remain on RWN
  -- Class C (CUSIP 71915QAC1): 'BB-'; remain on RWN

  -- Angiolieri Finance plc Series 2002-1 notes due 2012: 'AAA';
     on RWN

  -- Boccaccio Finance plc Series 2002-1 notes due 2012: 'AAA'; on
     RWN

  -- Dante Finance plc Series 2002-1 notes due 2012: 'AAA'; on RWN

  -- Petrarca Finance plc Series 2002-1 notes due 2012: 'AAA'; on
     RWN

  -- Programma Dinamico SpA notes due 2012: 'AAA'; on RWN

Quartz Finance PLC Series 2003-1 Eldon Street
  -- Class A (ISIN XS0165686949): 'AAA'; remain on RWN
  -- Class B (ISIN XS0165396432): 'A+'; remain on RWN

Quartz Finance PLC Series 2003-3 Upper Thames
  -- Class A (ISIN XS0173138867): 'AAA'; on RWN

Quartz Finance PLC Series 2004-1 Upper Thames
  -- Class 2004-1 (ISIN XS0199047258): 'AAA'; on RWN

Quartz Finance PLC Series 2005-1 (Kingsbury)
  -- Class A (ISIN XS0210163225): 'AA+'; remain on RWN
  -- Class B (ISIN XS0210163654): 'A+'; remain on RWN

Asia

  -- Beryl Finance Limited Series 2005-14 (ISIN XS0236944418):
     'AA'; remain on RWN

  -- Beryl Finance Limited Series 2006-10: 'B-'; on RWN
  -- Beryl Finance Limited Series 2006-11: 'B-'; on RWN
  -- Beryl Finance Limited Series 2006-12 (ISIN XS0272788927):
     'B+'; on RWN

  -- Beryl Finance Limited Series 2007-1: 'B'; on RWN

  -- Beryl Finance Limited Series 2008-11 (ISIN XS0372554914):
     'BB-'; on RWN

  -- Beryl Finance Limited Series 2008-12 (ISIN XS0372555135):
     'BB'; on RWN

  -- Beryl Finance Limited Series 2008-13 (ISIN XS0372555218):
     'BB+'; on RWN

  -- Beryl Finance Limited Series 2008-16 (ISIN XS0382664620):
     'B-'; on RWN

Zircon Finance Limited Series 2007-1
  -- Class A (ISIN AU3FN0002085): 'B+'; on RWN
  -- Class B (ISIN AU3FN0002093): 'B-'; on RWN

  -- Zircon Finance Limited Series 2007-3 (ISIN AU3FN0002325):
     'BB-'; on RWN

Zircon Finance Limited Series 2007-9
  -- Class A: 'BB-'; on RWN
  -- Class B: 'B-'; on RWN

  -- Zircon Finance Limited Series 2007-11: 'AAA'; on RWN
  -- Zircon Finance Limited Series 2007-12 (ISIN XS0307005032):
     'B-'; on RWN

  -- Zircon Finance Limited Series 2007-13: 'B-'; on RWN

In all cases, there is the risk that one or more interest payments
may be missed during the period between now and either the
replacement of Lehman as party to the transaction, or liquidation
of the eligible securities.  A missed interest payment would
typically be classed as a technical default.

Fitch will issue rating actions on synthetic CDOs exposed to
Lehman entities following analysis of transaction-specific
performance and features.

Fitch: Implications of Lehman Bankruptcy on Global Synthetic CDOs


* UK: ECB and Bank of England Inject Billions to Stabilize Markets
------------------------------------------------------------------
The European Central Bank disclosed last week that it had allotted
EUR30 billion (US$42.04 billion) in one-day liquidity to counter
financial turmoil in the wake of the crisis in the U.S. banking
system, The Financial Times reports.  The Bank of England,
according to the report, said it would offer GBP5 billion of extra
reserves to help stabilize conditions in the sterling money
markets.

According to FT, the Bank of England is reportedly seeking to stem
the fall-out from Lehman Brothers' slide into bankruptcy.

The report writes that many U.K. banks will be short of cash over
their financial exposure to Lehman Brothers.  The money is not
lost, but the central bank may have to intervene until it becomes
clearer how much can be recovered, the report says.

The bank intends to auction GBP5 billion today, Sept. 22, 2008,
through an exceptional fine tuning open market operation, FT
relates.  The loans matured Sept. 18, 2008.  The bank said it
received GBP24.1 billion in bids for its GBP5 billion injection.
The allocation per bidder was 20.75%, the report adds.

Like ECB, the Bank of England is "closely monitoring" market
conditions and will "ensure the overnight rate is close to Bank
Rate," FT reports.

           ECB Wants to Curb Abuse of Its Generosity

The ECB said it had alloted the money at a marginal rate of 4.30%
and an average rate of 4.39%, FT relates.  Based on the report,
all together 51 banks bid EUR90.27 billion.

ECB earlier said that it "continues to closely monitor the
conditions in the Euro area money market," FT writes.

Amid the eased lending conditions provided by the U.S. Federal
Reserve, the ECB restricted the use of some riskier assets earlier
this month to curb the abuse of its generosity, the report notes.

To combat inflation, the ECB keeps a very clear distinction
between its liquidity-boosting operations in financial markets and
its main interest rate policy, FT says.

"With rising risks of feed-back effects from the financial crisis
to the real economy, that separation could become increasingly
untenable.  While the ECB will obviously be reluctant to consider
rate cuts, its past behavior does not necessarily rule that out,"
FT quotes Jacques Cailloux, economist at Royal Bank of Scotland,
as saying.

Bundesbank, Bafin, Germany's financial regulator, and the finance
ministry, issued a joint statement describing German financial
groups' exposure to Lehman as manageable.  BaFin, which listed
EUR14.3 billlion in debts to institutional clients, placed a
moratorium on Lehman's German unit, preventing asset sales or
payments, FT says.

                   About European Central Bank

The European Central Bank (ECB) -- http://www.ecb.int/-- is one
of the world's most important central banks, responsible for
monetary policy covering the 15 member countries of the Eurozone.
It was established by the European Union (EU) in 1998 with its
headquarters in Frankfurt, Germany.

                     About Bank of England

The Bank of England (formally the Governor and Company of the Bank
of England) -- http://www.bankofengland.co.uk -- is a state-owned
institution[1] and the central bank of the United Kingdom.  The
Bank's Monetary Policy Committee is responsible for managing the
monetary policy of the country.  It was established in 1694 to act
as the English Government's banker, and to this day it still acts
as the banker for the UK Government. The Bank has a monopoly[2] on
the issue of banknotes in England and Wales.

The Bank's headquarters has been located in London's main
financial district, the City of London, on Threadneedle Street,
since 1734.  It is sometimes known as The Old Lady of Threadneedle
Street or just The Old Lady.  The current Governor of the Bank of
England is Mervyn King, who took over on 30 June 2003 from Sir
Edward George.


* BOND PRICING: For the Week Sept. 15 to Sept. 19, 2008
-------------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

AUSTRIA
-------
Republic of Austria       1.000    06/22/22     EUR      68.71
                          5.000    10/24/35     EUR      64.41

FRANCE
------
Alcatel S.A.              4.750    01/01/11     EUR      14.90
Altran Technologies S.A.  3.750    01/01/09     EUR      12.74
Calyon                    6.000    06/18/47     EUR      41.15
CAP Gemini S.A.           2.500    01/01/10     EUR      50.32
                          1.000    01/01/12     EUR      40.89
Club Mediterranee S.A.    3.000    11/01/08     EUR      67.98
                          4.380    11/01/10     EUR      45.45
CMA CGM                   5.500    05/16/12     EUR      91.99
Credit Agricole           4.500    02/22/26     EUR      74.37
Essilor Intl              1.500    07/02/10     EUR      69.90
Soc Air France            2.750    04/01/20     EUR      20.94
Wavecom S.A.              1.750    01/01/14     EUR      17.93

GERMANY
-------
Allgemeine HypothekenBank
   Rheinboden             5.080    12/10/14     EUR      63.81
Deutsche Schifbk          4.200    01/23/09     EUR      99.67

IRELAND
-------
Allied Irish Bks          5.630    11/29/30     GBP      69.98
                          5.250    09/10/25     GBP      64.72
Banesto Finance Plc       6.120    11/07/37     EUR       6.12
Depfa ACS Bank            0.500    03/03/25     CDN      49.27
                          0.250    07/08/33     CDN      29.22
UT2 Funding Plc           5.320    06/30/16     EUR      70.03

ITALY
-----
CIR SPA                   5.750    12/16/24     EUR      76.15

LUXEMBOURG
----------
Bank of Moscow            6.810    05/10/17     US$      82.54
Beverage Pack             9.500    06/15/17     EUR      74.20
Del Monte Fin SA          6.630    05/24/06     EUR      45.45

NETHERLANDS
-----------
ABN Amo Bank B.V.         6.000    03/16/35     EUR      65.06
Air Berlin Finance B.V.   1.500    04/11/27     EUR      28.40
ALB Finance BV            7.880    02/01/12     EUR      56.41
                          9.250    09/25/13     US$      52.14
                          9.000    11/22/10     US$      60.89
                          9.750    02/14/11     GBP      61.12
                          8.750    04/20/11     USD      70.13
Biopetrol Finance         4.000    02/21/12     EUR      47.50
BK Ned Gemeenten          0.500    06/27/18     CDN      69.05
                          0.500    02/24/25     CDN      49.31
Centercrdt Intl           8.630    01/30/14     US$      90.16
Cirio Del Monte           7.750    03/14/05     EUR      16.95
DAF BV                    6.750    06/15/10     EUR       2.85
EM.TV Finance B.V.        5.250    05/08/13     EUR       3.82
Turanalem Fin BV          8.000    03/24/14     US$      68.67
                          8.500    02/10/15     USD      65.79
                          8.250    01/22/37     USD      64.37
                          7.750    04/25/13     USD      71.49
                          8.250    01/22/37     USD      59.48
                          6.250    09/27/11     EUR      72.94

SPAIN
-----
Bancaja                   4.380    02/14/17     EUR      72.66

SWITZERLAND
-----------
Cytos Biotechnology       2.880    02/20/12     CHF      68.13

UNITED KINGDOM
--------------
Allianc&Leic Bld          5.880    08/14/31     GBP      81.61
Anglian Water
   Finance Plc            2.400     04/20/35    GBP      50394
Aspire Defence            4.670     03/31/40    GBP      63.31
                          4.670     03/31/40    GBP      63.24
Bradford&Bin BLD          5.750     12/12/22    GBP      57.17
                          6.630     06/16/23    GBP      52.44
Brit Insurance            6.630     12/09/30    GBP      72.42
Britannia Building
   Society                5.880     03/28/33    GBP      66.36
                          5.750     12/02/24    GBP      72.42
Broadgate Finance         5.100     04/05/33    GBP      71.80
Cattles plc               7.130     07/05/17    GBP      71.47
Daily Mail & Gen          5.750     12/07/18    GBP      75.25
                          6.380     06/21/27    GBP      70.75
Derby Eealthcare          5.560     06/30/41    GBP      74.95
Enterprise Inns           6.380     09/26/31    GBP      70.24
Unique Pub Fin            6.460     03/30/32    GBP      69.93


                            *********

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, Melanie Pador, 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 * * *