TCREUR_Public/080924.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Wednesday, September 24, 2008, Vol. 9, No. 190

                            Headlines

A U S T R I A

AIRTOOL & CO: Claims Registration Period Ends October 20
EDELWISER LLC: Claims Registration Period Ends October 15
EDUARD HILDEBRAND: Claims Registration Period Ends October 14


B U L G A R I A

FIRST INVESTMENT: Fitch Affirms Individual Rating at 'D'


G E R M A N Y

ARTKOMM GMBH: Claims Registration Period Ends October 2
CONCEPT BERATUNGS: Claims Registration Period Ends September 30
E & R PUTZ: Claims Registration Period Ends September 30
FORCE TWO: Fitch Puts EUR9.7MM Notes 'BB' Rating Under Neg. Watch
FRACTALIS GMBH: Claims Registration Period Ends September 30

HANSE WARMETECHNIK: Claims Registration Period Ends Oct. 1
HYDRO - MASCHINENHANDEL: Claims Registration Ends September 30
KAUFHAUS WOHA: Claims Registration Period Ends September 30
LIDER DOENERPRODUKTION: Claims Registration Period Ends Oct. 1

* GERMANY: Market Crisis Has Little Effect on Real Economy


I R E L A N D

STOCKERYALE INC: Gets Continued Listing of Stocks Until Dec. 23


I T A L Y

ALITALIA SPA: Fate Depends on Results of Another Sale Attempt
TELECOM ITALIA: Cuts 5,000 Jobs as Part of Restructuring Plan

* ITALY: Pension Funds Not Directly Affected by Lehman Brothers


K A Z A K H S T A N

AGRO LAND-BWK: Creditors Must File Claims by November 11
AGRO TECH: Claims Deadline Slated for November 11
AMISTAD LLP: Claims Filing Period Ends November 7
JMO ORAL: Creditors' Claims Due on November 11


K Y R G Y Z S T A N

HONG TAI: Creditors Must File Claims by November 3


R O M A N I A

BANCPOST S.A: Fitch Affirms Individual Rating at 'D'
BANCA ROMANEASCA: Fitch Holds 'D' Individual Rating


R U S S I A

KAMA-LES LLC: Creditors Must File Claims by October 11
NATIONAL RESERVE: Moody's Assigns E+ Financial Strength Rating
PIK GROUP: Fitch Puts Low-B IDRs Under Negative Watch
RENAISSANCE CAPITAL: S&P Assigns BB- Counterparty Credit Rating
ROS-MET LLC: Creditors Must File Claims by October 11

ROSEVROBANK: Fitch Assigns 'D' Individual Rating
RUSSIAN FACTORING: Fitch Holds 'BB' Rating on RUB300BB Facility
SIB-LES LLC: Creditors Must File Claims by November 11
SVIAZ-BANK: Moody's Cuts Bank Financial Strength Rating to E
TIMBER CENTER: Creditors Must File Claims by November 11

VYATKO-KOMPLEKT: Kirov Bankruptcy Hearing Set November 30

* S&P Revises Outlook to Stable on Seven Low-B Rated Russian Banks
* S&P Says Russian Govt. Financial Support Outcomes Unpredictable
* UDMURTIA REPUBLIC: Moody's Assigns Ba1 Currency Issuer Ratings


S P A I N

HABITAT: Calls EGM to Decide on Future; Facing Dissolution


S W I T Z E R L A N D

CARGO CARE: Proofs of Claim Filing Deadline is October 5
CBD CREATIVE: Creditors' Proofs of Claim Due by October 5
CREA CDO I: October 5 Set as Deadline to File Proofs of Claim
DAVIT JSC: Creditors Must File Proofs of Claim by October 5
LAIMBACHER UNTERNEHMENSBERATUNG: Claims Due by October 15

PERSIST JSC: Creditors Have Until October 4 to File Claims
SPORTHOTEL SHERLOCK: Deadline to File Claims Set October 5


U K R A I N E

AZOVSTAL IRON: S&P Lifts Corporate Credit Rating to B+
BAKHMACHBREAD LLC: Creditors Must File Claims by September 27
BELTAN LLC: Creditors Must File Claims by September 28
DNIEPROVSKIYE ZORI: Creditors Must File Claims by September 28
FORLAND LLC: Creditors Must File Claims by September 26

MANDARIN 2004: Creditors Must File Claims by September 26
MBD-LOGISTICS LTD: Creditors Must File Claims by September 26
NOSOVKA REGIONAL: Creditors Must File Claims by September 28


U N I T E D   K I N G D O M

AMERICAN INTERNATIONAL: Loses US$5.36 Billion in Second Quarter
BRADFORD & BINGLEY: U.K. Regulator Working on Firm's Takeover
CHASE MIDLAND: Owes Creditors More Than GBP22 Million
FERGUS HAYNES: Goes Into Receivership; Owes EUR15 Million
LEHMAN BROTHERS: Nomura Reaches Deal to Buy Eur & Mid-East Biz

LEHMAN BROTHERS: PwC Wants US$8 Billion Returned to European Arm
M.I.W. FABRICATIONS: Claims Filing Period Ends November 3
M.I.W. METALWORK: Claims Filing Period Ends November 3
INEOS VINYLS: Moody's Assigns Negative Outlook to Low-B Ratings
PERSONAL STORAGE: Taps PricewaterhouseCoopers as Liquidators

ROADCHEF FINANCE: S&P Lowers Rating on Class A2/B Notes to BB/B
SMARTIRE SYSTEMS: Patent Infringement Suit vs. Schrader Settled
TERRAPIN TECHNICAL: Claims Filing Period Ends October 16

* BRITAIN: FTSE 100 Index Soars 6% on U.S. Talks of Rescue Plan
* BRITAIN: Finance Workforce to Shrink by 2% by 2009, Poll Says
* EUROPE: Banks and Insurers See US$7.3B Losses Tied to Lehman
* EUROPE: Spreads on Credit Default Swaps Hit Stressed Levels
* UK Retail Sales Volume Rise 1.2% in August, ONS Survey Says
* Fitch Says Default in Loans Securing European CMBS is Mounting
* Fitch Puts 18 Tranches in Six European CMBS Under Negative Watch


                         *********


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


AIRTOOL & CO: Claims Registration Period Ends October 20
--------------------------------------------------------
Creditors owed money by LLC Airtool & Co. KG have until Oct. 20,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Mag. Gregor Royer
         Ringstrasse 13
         4600 Wels
         Austria
         Tel: 07242/58120
         Fax: 07242/58120-22
         E-mail: office@eigner-royer.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Oct. 30, 2008, for the
examination of claims at:

         The Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Lambach, Austria, the Debtor declared bankruptcy
on Aug. 25, 2008, (Bankr. Case No. 20 S 101/08s).


EDELWISER LLC: Claims Registration Period Ends October 15
---------------------------------------------------------
Creditors owed money by LLC Edelwiser have until Oct. 15, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:50 a.m. on Oct. 29, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1707
         Vienna
         Russia

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 22, 2008, (Bankr. Case No. 2 S 105/08s).


EDUARD HILDEBRAND: Claims Registration Period Ends October 14
-------------------------------------------------------------
Creditors owed money by LLC Eduard Hildebrand have until Oct. 14,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Mag. Johanna Abel-Winkler
         Franz Josefs-Kai 49/19
         1010 Vienna
         Austria
         Tel: 533 52 72
         Fax: 533 52 72 15
         E-mail: office@abel-abel.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Oct. 28, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 26, 2008, (Bankr. Case No. 4 S 120/08m).


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


FIRST INVESTMENT: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------------
Fitch Ratings has changed Bulgaria-based First Investment Bank's
Outlook to Negative from Stable.  Its other ratings are affirmed
at Long-term Issuer Default 'BB-', Short-term IDR 'B', Individual
'D', Support '5' and Support Rating Floor 'No Floor'.

The Outlook change reflects the challenges that FIBank is facing
in the current market environment in terms of attracting new long-
term funding and capital at an acceptable cost and refinancing its
existing obligations in full.  As a result, FIBank's prospects in
terms of both profitability and market share could well be
negatively impacted.

"In the event that FIBank is unable to refinance its existing
obligations in full, consisting primarily of a EUR185 million one-
year syndicated loan with a one-year put/call option maturing in
October 2008, and/or attract new funding and capital on suitable
terms, the bank will be unable, or at the very least severely
limited, in its ability to grow its balance sheet", says Lindsey
Liddell, Director in Fitch's Financial Institutions Department,
"This, in turn, will dampen FIBank's profitability and therefore
also its internal capital generation, and will likely lead to an
erosion of its market shares."

Fitch comments that the bank's market shares and performance
ratios have already shown some signs of weakening in H108.  These
trends follow a EUR200 million Eurobond repayment in January 2008,
combined with market conditions that have deterred FIBank from
tapping the capital markets for the new long-term funding and
capital it needs to grow its balance sheet.  As a result, the bank
has been forced to curb loan growth (just 1% in H108 from 62% in
2007) in order to maintain sufficient liquidity.

FIBank's liquidity is adequate but should be viewed in light of
the bank's upcoming financing needs and contractually short-term
customer deposit base.  The need to hold sufficient liquidity has
become even more acute following the small run on customer
deposits experienced by the bank in May 2008, which, although
fairly swiftly reversed, saw customer deposits fall by 5.6%
overall in H108.  However, the customer deposit base has risen
since end-June 2008 and is above its end-2007 levels, although
Fitch notes that the bank is pricing at the higher end of the
market.

FIBank's ratings reflect the bank's good franchise, diversified
customer deposit base, acceptable risk management framework and
solid fee income.  Additionally, asset quality ratios remain
acceptable and market risk is limited.  However, the ratings also
consider the bank's still-high borrower concentration.

Downward rating pressure would result from FIBank's inability to
refinance obligations and grow its balance sheet and the negative
impact this would have on its performance indicators and market
shares.  Ratings upside is limited in the medium term.

Founded in 1993, FIBank was the sixth-largest bank in Bulgaria by
total assets at end-H108.  It had market shares of 6.2% and 6.9%
of banking sector assets and deposits, respectively.  It is the
largest remaining Bulgarian-owned bank.  Ultimate control of the
bank is in the hands of its two founding shareholders, individuals
with significant interests in tourism and real estate.  FIBank is
partially listed on the Sofia Stock Exchange.  It has a small
subsidiary bank in Albania.


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


ARTKOMM GMBH: Claims Registration Period Ends October 2
-------------------------------------------------------
Creditors of Artkomm GmbH fuer Kommunikation, Kultur und Medien
have until Oct. 2, 2008, to register their claims with court-
appointed insolvency manager Peter Jost.

Creditors and other interested parties are encouraged to attend
the meeting at 8:40 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt (Main)
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt (Main)
         Germany

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

The insolvency manager can be reached at:

         Peter Jost
         Pfingstweidstrasse 3, D
         60316 Frankfurt (Main)
         Germany
         Tel: 069/209739-0
         Fax: 069/20973929

The District Court of Frankfurt (Main) opened bankruptcy
proceedings against Artkomm GmbH fuer Kommunikation, Kultur und
Medien on July 31, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Artkomm GmbH fuer Kommunikation, Kultur und Medien
         Niddastrasse 52
         60329 Frankfurt (Main)
         Germany


CONCEPT BERATUNGS: Claims Registration Period Ends September 30
---------------------------------------------------------------
Creditors of ConCepT Beratungs- und Vermittlungsgesellschaft mbH
have until Sept. 30, 2008, to register their claims with court-
appointed insolvency manager Dirk Decker.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 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 Reinbek
         Parkallee 6
         21465 Reinbek
         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:

         Dirk Decker
         Julius-Vosseler-Str. 42
         22527 Hamburg
         Germany

The District Court of Reinbek opened bankruptcy proceedings
against ConCepT Beratungs- und Vermittlungsgesellschaft mbH on
Aug. 8, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         ConCepT Beratungs- und
         Vermittlungsgesellschaft mbH
         Attn: Wilhelm Stueermann, Manager
         Humboldtstr. 25
         21509 Glinde
         Germany


E & R PUTZ: Claims Registration Period Ends September 30
--------------------------------------------------------
Creditors of E & R Putz und Farbe GmbH Stukkateur- und
Malerbetrieb have until Sept. 30, 2008, to register their claims
with court-appointed insolvency manager Dr. Reinhard Th. Schmid.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Nov. 4, 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 Stuttgart
         Room 178
         Hauffstr. 5
         70190 Stuttgart
         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. Reinhard Th. Schmid
         Hasenbergsteige 5
         70178 Stuttgart
         Germany
         Tel: 0711/66 90 70
         Fax: 0711/66 45 068

The District Court of Stuttgart opened bankruptcy proceedings
against E & R Putz und Farbe GmbH Stukkateur- und Malerbetrieb on
Sept. 1, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         E & R Putz und Farbe GmbH
         Stukkateur- und Malerbetrieb
         Attn: Erol Yilmaz, Manager
         Siemensstr. 2/1
         71404 Korb
         Germany


FORCE TWO: Fitch Puts EUR9.7MM Notes 'BB' Rating Under Neg. Watch
-----------------------------------------------------------------
Fitch Ratings has placed FORCE TWO Limited Partnership's notes due
January 2018 on Rating Watch Negative, as:

  -- EUR148,821,724.63 Class A notes (ISIN: XS0299041037): 'AAA'
     on RWN

  -- EUR12,300,000 Class B notes (ISIN: XS0299041896): 'AA' on RWN

  -- EUR13,000,000 Class C notes (ISIN: XS0299042357): 'A' on RWN

  -- EUR11,900,000 Class D notes (ISIN: XS0299044056): 'BBB' on
     RWN

  -- EUR9,700,000 Class E notes (ISIN: XS0299045020): 'BB' on RWN

Fitch released two new criteria on 30 April 2008: Global Criteria
for Corporate CDO/CLOs and Global Criteria for Cash Flow Analysis
in Corporate CDOs.  At that time, Fitch noted that it would be
reviewing its ratings with these two new criteria to establish
consistency for existing and new transactions, and the rating
actions are a result of this review.

This transaction is a cash securitization of two types of
subordinated loan agreements, where one type features loss
participation and interest deferral mechanisms, advanced to German
medium-sized enterprises.

As of the review in September 2008, based on the latest portfolio
information available, the pool has slightly deteriorated.
Currently the portfolio contains 47 obligors (initially 48
obligors).  The largest exposure accounts for 5.9% of the
portfolio amount and the top three obligors for 15.8% of the
portfolio.  Since closing in May 2007, there has been one default.
For two portfolio companies the repayment amount has been reduced
due to the loss participation mechanism.

The current repayment amounts would be increased to the initial
notional amounts if the companies start generating profits again.
Two of the remaining assets comprising 3.8% of the portfolio are
under special care process, and a further 12 companies comprising
25.5% of the portfolio are closely tracked by portfolio manager,
EquiNotes Management GmbH, as highlighted in the investor report
of July 2008.  As of this report no companies have exercised the
option of deferring scheduled interest payments.

The current amount of the principal deficiency ledger equals
EUR1.6 million.  If no further principal deficiency events occur,
Fitch expects that this amount would be repaid to Class A
noteholders over the following two interest payment dates.

The securitized debt instruments comprising the portfolio are
deeply subordinated.  As a result, Fitch assumes no recovery in
its analysis.  In addition to default simulations using its
Portfolio Credit Model, Fitch has performed cash-flow analysis to
stress possible interest rate and default timing patterns.  The
transaction benefits from high levels of excess spread and a
principal deficiency mechanism for excess spread trapping.
Classes A, B, C, and D are most sensitive to front-loaded default
timing, whereas Class E notes are most sensitive to back-loaded
default timing.  Based on the analysis, the credit enhancement
derived from both subordination and excess spread is not
sufficient to justify the current ratings of the notes.

The Negative Watch status is attributable to the CDO methodology
change, to the observed persistent underperformance in the
European mezzanine CLO sector, and to deterioration in the FORCE
TWO Limited Partnership portfolio.  Similarly to peer mezzanine
CLOs, credit events occurred at a relatively early stage of this
transaction.

Additionally, Fitch is reviewing its default assumptions for SME
CDOs, especially where highly concentrated portfolios are
securitized.  Given the limited number of obligors in this
transaction, previously applied portfolio approaches to assessing
the underlying credit quality may not sufficiently reflect the
risk of the individual borrowers.

Therefore, guidance provided regarding the potential downgrade
actions is broad.  There is increased uncertainty with regards to
Class A notes as the outcome is particularly sensitive to Fitch's
final obligor default assumptions:

  -- Class A notes: May not remain investment grade

  -- Class B notes: Likely to be downgraded to the non-investment
     grade range

  -- Class C notes: Likely to be downgraded to the low non-
     investment grade range

  -- Class D notes: Likely to be downgraded to the low non-
     investment grade range

  -- Class E notes: Likely to be downgraded to the low non-
     investment grade range

The resolution of the Negative Watch status will incorporate any
changes made to the portfolio or the transaction along with
additional portfolio migration.  It will also depend on the
updated financial data of the underlying obligors, which is
outstanding for 30% of the portfolio.


FRACTALIS GMBH: Claims Registration Period Ends September 30
------------------------------------------------------------
Creditors of fractalis gmbh Interaktive Medientechnologien have
until Sept. 30, 2008, to register their claims with court-
appointed insolvency manager Peter Depre.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.ma. on Oct. 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 Karlsruhe
         Hall IV
         First Floor
         Schlossplatz 23
         76131 Karlsruhe
         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:

         Peter Depre
         O 4, 13-16
         68161 Mannheim
         Germany
         Tel: (06 21) 12 07 80

The District Court of Karlsruhe opened bankruptcy proceedings
against fractalis gmbh Interaktive Medientechnologien on Aug. 12,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         fractalis gmbh Interaktive Medientechnologien
         Attn: Matthias Buehner, Manager
         Scheffelstr. 53
         76135 Karlsruhe
         Germany


HANSE WARMETECHNIK: Claims Registration Period Ends Oct. 1
----------------------------------------------------------
Creditors of Hanse Warmetechnik GmbH have until Oct. 1, 2008, to
register their claims with court-appointed insolvency manager
Soenke Hansen.

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

The meeting of creditors will be held at:

         The District Court of Hamburg
         Meeting Hall B405
         Fourth Floor
         Sievkingplatz 1
         20355 Hamburg
         Germany

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

The insolvency manager can be reached at:

         Soenke Hansen
         Moenckebergstrasse 17
         20095 Hamburg
         Germany

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

The Debtor can be reached at:

         Hanse Warmetechnik GmbH
         Attn: Peter Schmorr, Manager
         Tarpen 15
         22419 Hamburg
         Germany


HYDRO - MASCHINENHANDEL: Claims Registration Ends September 30
--------------------------------------------------------------
Creditors of HYDRO - Maschinenhandel GmbH & Co. KG have until
Sept. 30, 2008, to register their claims with court-appointed
insolvency manager Michael Pluta.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 14, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Ravensburg
         Hall 209
         Herrenstr. 42
         88212 Ravensburg
         Germany

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

The insolvency manager can be reached at:

         Michael Pluta
         Karlstr. 33
         89073 Ulm
         Germany

The District Court of Ravensburg opened bankruptcy proceedings
against HYDRO - Maschinenhandel GmbH & Co. KG on Aug. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         HYDRO - Maschinenhandel GmbH & Co. KG
         Attn: Josef Kugler, Liquidator
         Im Grund 7
         88356 Ostrach
         Germany


KAUFHAUS WOHA: Claims Registration Period Ends September 30
-----------------------------------------------------------
Creditors of Kaufhaus WOHA Kissling und Marquardt GmbH have until
Sept. 30, 2008, to register their claims with court-appointed
insolvency manager Werner Schneider.

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

The meeting of creditors will be held at:

         The District Court of Aalen
         Hall 0.11
         Ground Floor
         Stuttgarter Strasse 7,
         73430 Aalen
         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:

         Werner Schneider
         Bahnhofstr. 41
         89231 Neu-Ulm
         Germany
         Tel: 0731/97018-0
         Fax: 0731/97018-65
         E-mail: werner.schneider@schneidergeiwitz.de
         Web site: www.schneidergeiwitz.de

The District Court of Aalen opened bankruptcy proceedings against
Kaufhaus WOHA Kissling und Marquardt GmbH on
Aug. 15, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Kaufhaus WOHA Kissling und Marquardt GmbH
         Attn: Juergen Marquardt, Manager
         Marktplatz 6
         73525 Schwabisch Gmuend
         Germany


LIDER DOENERPRODUKTION: Claims Registration Period Ends Oct. 1
--------------------------------------------------------------
Creditors of Lider Doenerproduktion GmbH have until Oct. 1, 2008,
to register their claims with court-appointed insolvency manager
Dr. Juergen Spliedt.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 29, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Potsdam
         Hall 24
         Jagerallee 10-12
         14469 Potsdam
         Germany

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

The insolvency manager can be reached at:

         Dr. Juergen Spliedt
         Uhlandstrasse 165/166
         10719 Berlin
         Germany

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

The Debtor can be reached at:

         Lider Doenerproduktion GmbH
         Gewerbehof Gueterfelde/ Priesterweg Bereich 1
         14532 Stahnsdorf
         Germany

         Attn: Arslan Yusuf, Manager
         Dueppetstrasse 37
         12163 Berlin
         Germany


* GERMANY: Market Crisis Has Little Effect on Real Economy
----------------------------------------------------------
Amid the German Finance Ministry's statement that the market
crisis has little effect on the real economy in Germany, the
crisis has increased the downside risks to the country's economic
outlook, according to reports.

The Ministry, early last week said that the crisis is mainly a
United States issue.  Finance Ministry spokesman Torsten Albig
said that while some German financial institutions had been hit by
the U.S. subprime crisis, "in their totality, [they] are
recognizably not as involved  as U.S. and other Anglo-Saxon
institutions," Monsters & Critics reports.

German Finance Minister Peer Steinbrueck had made it clear that
although the country is "in the middle of a crisis, . . . it is
centrally an American crisis, Monster & Critics relates.

However, the Ministry admitted that the acceleration of global
inflation due to rising prices for raw materials and food is
dampening global growth, Reuters notes.

The Ministry remained positive saying that Germany, being
competitive and having good finances, would be less affected by
the crisis as compared with other countries, Reuters relates.  The
Ministry said that "[t]he reversal of the excesses on the markets
for raw materials and a substantially weaker euro are [rays] of
hope, Reuters adds.


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


STOCKERYALE INC: Gets Continued Listing of Stocks Until Dec. 23
---------------------------------------------------------------
StockerYale Inc. received an extension from the Nasdaq Listing
Qualifications Panel to regain compliance with the US$1.00 minimum
bid price requirement of The Nasdaq Stock Market until Dec. 23,
2008.  In order for the company to maintain its listing on the
Nasdaq Stock Market beyond that date, its common stock must have a
closing bid price of US$1.00 or more for a minimum of ten
consecutive trading days prior to Dec. 23, 2008.

The company disclosed that on Dec. 28, 2007, the company received
a notice from The Nasdaq Stock Market indicating that it was not
in compliance with Nasdaq Marketplace Rule 4450(a)(5) because, for
30 consecutive business days, the bid price of the company's
common stock had closed below the minimum US$1.00 per share.  The
company did not regain compliance with the minimum bid price
requirement and, accordingly, on June 26, 2008, the company
received written notification from The Nasdaq Stock Market stating
that the company's common stock would be subject to delisting as a
result of the deficiency unless the company requested a hearing
before the Panel.

On July 3, 2008, the company requested a hearing before the Panel
to address the minimum bid price deficiency, which was held on
Aug. 14, 2008.  At the hearing, the company presented a plan to
regain compliance with the minimum bid price requirement.

The extension granted by the Panel is subject to the company's
continuing compliance with all requirements for continued listing
on the Nasdaq Capital Market.  There can be no assurance that the
company will maintain compliance with the continued listing
requirements of The Nasdaq Stock Market or achieve the minimum bid
price of US$1.00 for a minimum of ten consecutive trading days.

                   About StockerYale Inc.

Headquartered in Salem, New Hampshire, StockerYale Inc. (NASDAQ:
STKR) -- http://www.stockeryale.com-- is an independent designer
and manufacturer of structured light lasers, LED modules, and
specialty optical fibers for industry leading OEMs.  In addition,
the company manufactures fluorescent lighting products and phase
masks.  The company serves markets including the machine vision,
industrial inspection, defense, telecommunication, sensors, and
medical markets.  StockerYale has offices and subsidiaries in the
U.S., Canada, and Ireland.


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


ALITALIA SPA: Fate Depends on Results of Another Sale Attempt
-------------------------------------------------------------
After a rescue plan failed last week, Alitalia SpA proceeded with
its fourth public request for offers to buy any or all parts of
the company's assets until Sept. 30, 2008, newspapers say.  The
carrier has already prepared notices to be published in the
Italian newspapers Corriere della Sera, il Sole-24 Ore and la
Repubblica, as well as the London-based Financial Times, according
to The Associated Press.

In the prepared notice cited by The AP, Alitalia is seeking
"whoever might be able to guarantee the continuity, in the medium
term, of the transportation service ... to submit its expression
of interest."

As reported in the Troubled Company Reporter-Europe on Sept. 22,
2008, Compagnia Aerea Italiana s.r.l., a newly formed investor
group backed by Italian Prime Minister Silvio Berlusconi, withdrew
its bid to buy Alitalia's healthier assets after failing to win
the support of labor unions, various reports say.

A TCR-Europe report on Sept. 10, 2008, said Alitalia's unions
rejected the employment contract proposed by CAI.  CAI proposed
among others that pilots' vacation be reduced from 42 to 30 days a
year, with extra day off for every five years of service in the
company; and attendants' fixed salary be reduced by 43% while
their variable salary will be reduced by 28%-31%.  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 reported that on September 14, the airline's four
biggest unions won an agreement from CAI to include 1,000 more
workers in the rescue plan.  However, on September 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.  Alitalia Special Administrator Augusto
Fantozzi has said the airline will use part of its remaining cash
to fund this month's payroll which is due Sept. 27, 2008.

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.


TELECOM ITALIA: Cuts 5,000 Jobs as Part of Restructuring Plan
-------------------------------------------------------------
Telecom Italia SpA has agreed with unions to remove 5,000 out of
its 83,000 employees as part of a restructuring plan.

Dow Jones Newswires relates Telecom Italia in June unveiled a
cost-cutting plan aimed at reducing annual costs by roughly EUR300
million.

Italian newspapers cited by Reuters have reported that the company
is also looking to sell its assets.

Stiffening competition and regulatory pressures are pushing the
company to boost its balance sheet including securing a new
investor, possibly from the Gulf, as well as on splitting off its
fixed-line unit, a source close to the issue told Reuters News.

According to Reuters, the source's comments followed Italian
newspaper reports that the phone company was looking for fresh
capital amid falling profits and under EUR37 billion (US$52.53
billion) in long-term debt.

Reuters' source noted however that nothing definitive on these
issues was expected from a board meeting tomorrow, September 25.

Based in Milan, Italy, Telecom Italia S.p.A. --
http://www.telecomitalia.it/-- (NYSE:TI) is a telecommunications
group that operates in the communications sector, in the
television sector using both analog and digital terrestrial
technology, and in the office products sector.  The company is
engaged principally in the communications sector and,
particularly, in telephone and data services on fixed lines, for
final retail customers and wholesale providers, in the development
of fiber optic networks for wholesale customers, in Internet
services, in domestic and international mobile telecommunications
(especially in Brazil), in the television sector using both analog
and digital terrestrial technology and in the office products
sector.  The company operates mainly in Europe, the Mediterranean
Basin and in South America.  In August 2008, ILIAD SA announced
that it had finalized the acquisition of Alice France, the
broadband operations of the company.


* ITALY: Pension Funds Not Directly Affected by Lehman Brothers
---------------------------------------------------------------
Italy's pension funds regulator, Covip, assured the public that
the bankruptcy of Lehman Brothers Holdings Inc. has negligible
direct effect to the pension funds, various reports say.  Covip's
Chairman Luigi Scimia said that of the 65% of occupational pension
funds' assets, direct exposure to Lehman Brothers is merely 0.1%,
according to the reports.

Economy Minister Giulio Tremonti told parliament that the Treasury
was not a creditor of Lehman Brothers, Reuters notes.  Minister
Tremonti added that Italy's banking system is solid and that the
country would emerge from the international financial crisis
"stronger than before," Reuters reports.

However, the continuing uncertainty over the international impact
of the collapse of Lehman Brothers has forced the Covip and Texas
Teachers Retirement System to clarify their positions on Lehman
Brothers, Global Pensions writes.  The TRS estimated losses of
US$8 million on its investments with Lehman Brothers, Global
Pensions notes.

According to Reuters, the Bank of Italy asserted mid last week
that Italian banks and financial institutions had "limited"
exposure to Lehman Brothers.  Investment bank, Mediobanca, has no
exposure to Lehman Brothers, a source at the bank said.  The
country's biggest bank by market value, UniCredit, said its
exposure was very limited, Reuters notes.  Insurer Assicurazioni
Generali said its exposure to Lehman's debt was a maximum
EUR110 million, with no exposure to its shares, Reuters relates.


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


AGRO LAND-BWK: Creditors Must File Claims by November 11
--------------------------------------------------------
LLP Agro Land-BWK has declared liquidation.  Creditors have until
Nov. 11, 2008, to submit written proofs of claims to:

         LLP Agro Land-BWK
         Rosybakiyev Str. 275-65
         050060, Almaty
         Kazakhstan


AGRO TECH: Claims Deadline Slated for November 11
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Agro Tech Service-2000 insolvent.

Creditors have until Nov. 11, 2008, to submit written proofs of
claims to:

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


AMISTAD LLP: Claims Filing Period Ends November 7
-------------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Amistad insolvent.

Creditors have until Nov. 7, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Ujnaya Str. 9
         Taiynsha
         North Kazakhstan
         Kazakhstan


JMO ORAL: Creditors' Claims Due on November 11
----------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau has
declared LLP Construction Company JMO Oral Spets Stroy insolvent.

Creditors have until Nov. 11, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         Third Floor
         Abai Str. 10a
         Atyrau
         Kazakhstan
         Tel: 8 (71222) 32-90-02


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


HONG TAI: Creditors Must File Claims by November 3
--------------------------------------------------
LLC Joint Enterprise Hong Tai has shut down.  Creditors have until
Nov. 3, 2008, to submit written proofs of claim to:

         LLC Hong Tai
         Mederov Str. 46-1
         Bishkek
         Kyrgyzstan


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


BANCPOST S.A: Fitch Affirms Individual Rating at 'D'
----------------------------------------------------
Fitch Ratings has affirmed Romania-based Bancpost S.A.'s ratings
as:

  -- Long-term foreign currency Issuer Default Rating: affirmed at
     A-', Outlook Negative

  -- Short-term foreign currency IDR: affirmed at 'F2'

  -- Individual Rating: affirmed at 'D'

  -- Support rating: affirmed at '1'

The IDRs and Support Ratings of BP reflect the potential support
it can expect to receive from its majority shareholder, Greece-
based EFG Eurobank Ergasias S.A. (Eurobank, rated 'A'/Stable
Outlook).  The Individual Rating reflects BP's weakening
capitalization, still low profitability and efficiency, potential
asset quality problems due to rapid loan growth and concentrated
funding from the parent.  These are balanced by comfortable
liquidity and limited market risk.

Despite a EUR50million subordinated debt issue by the parent in
October 2007, Fitch eligible capital as a proportion of regulatory
risk weighted assets and BP's regulatory solvency ratio weakened
and equaled 7.8% and 9.8%, respectively at end-2007, reflecting
the rapid growth in risk-weighted assets.  Regulatory solvency
ratio further weakened to 9.3% at end-H108, getting closer to the
regulatory minimum of 8%.  In Fitch's opinion, higher levels of
capitalization would be necessary for continued loan growth and
would provide a cushion for potential assets quality problems.

BP's revenues continue to grow rapidly, driven by the fast growth
in lending volumes, being the main catalyst of the positive
operating ROAE in 2007, first time since 2004.  Nevertheless, the
bank is experiencing pressure on margins through rising funding
costs.  BP's efficiency is improving, but still weak and it should
improve with the contribution of economies of scale only in the
medium term.  Asset quality indicators are mainly aided by rapid
loan growth.  Rapid loan growth and a high level of FX loans to
unhedged borrowers may still create asset quality problems in the
future as the loans season.  This risk is mitigated to some degree
by the risk management procedures implemented as per Eurobank
standards.

The share of related-party funding is significant and increasing,
constituting 45% of total non-equity funding at end-2007.  BP is
making efforts to diversify its deposit base and reduce its
reliance on related-party funding by exploiting the customer base
and structuring new products to attract a widespread retail
deposit base, which would be a relatively more stable source of
funding.  BP's liquidity remained comfortable due to strict
regulations on reserve requirements.

BP ranked as the fifth-largest bank in Romania at end-2007 in
terms of assets, and had a 5.2% share of system assets.  BP is
primarily a retail bank, with consumer lending, mortgages and
micro lending making up 70% of the total portfolio on a stand-
alone basis.  Taking into account the loans booked abroad, the
retail segment's share declines to 58%.  Eurobank first took a
stake in 2000; and its shareholding was 77.56% at end-H108.


BANCA ROMANEASCA: Fitch Holds 'D' Individual Rating
---------------------------------------------------
Fitch Ratings has affirmed Romania-based Banca Romaneasca S.A.'s
ratings as:

  -- Long-term foreign currency Issuer Default Rating:
     affirmed at 'BBB+', Outlook Stable

  -- Short-term foreign currency IDR: affirmed at 'F2'

  -- Individual Rating: affirmed at 'D'

  -- Support rating: affirmed at '2'

The Long- and Short-Term Issuer Default and Support Ratings of
BROM reflect the potential support available from its 89% parent,
National Bank of Greece (NBG; rated 'A-' Stable).  The Individual
Rating reflects the bank's small size, weak customer deposit
franchise and the credit risks from its rapid expansion.  It also
reflects improvements made in risk management with guidance from
its parent, comfortable liquidity and limited market risk.

Although the bank has been owned by NBG since 2003, extensive
restructuring and branch network expansion began in 2005.  These
programs are set to continue, as the bank intends to increase its
market share from 2.7% at end-2007 to 4.5% at end-2009 through
organic growth, which appears a challenging target in a market
with intense competition.  Ongoing organic growth, intense
competition for market share and rising funding costs undermine
the improvements in profitability and efficiency.

Improvement in efficiency is expected to take some time as the
bank continues to expand its network.  Although asset quality has
been good to date, rapid loan growth and FX lending to unhedged
borrowers creates potential credit and operational risks.
Nevertheless improved risk management systems with the guidance
from NBG provide some comfort on future asset quality.

The bank's heavy reliance on parent funding continues.  Liquidity
is comfortable, similar to other Romanian banks, adhering to the
National Bank of Romania's stringent liquidity measures.
Capitalization declined as a result of rapid growth of risk
weighted assets at end-2007.  In March 2008, capital was increased
by a cash capital injection of EUR46 million and another EUR50
million capital injection is planned in 2008.  In Fitch Rating's
opinion continued cash capital injections will be necessary as
internal capital generation is not expected to meet the bank's
expected growth rates.

BROM forms part of NBG's south-east European franchise.  BROM is a
small bank, ranking 11th in Romania with 2.58% share in system
assets at end-2007.  The bank provides banking services to
corporates, commercial clients and individuals with a special
focus on SMEs and micro businesses.


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


KAMA-LES LLC: Creditors Must File Claims by October 11
------------------------------------------------------
Creditors of LLC Kama-Les have until Oct. 11, 2008 to submit
proofs of claims to:

         Ye. Yemelin
         Temporary Insolvency Manager
         Office 313
         Suvorova Str. 111a
         440000 Penza
         Russia

The Arbitration Court of Komi will convene on Dec. 16, 2008, to
hear the company's bankruptcy supervision procedure.  The case is
docketed under Case No. A295130/2008.

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 Kama-Les
         Oktyabrskiy prospect 125
         Syuktyuvkar
         Komi
         Russia


NATIONAL RESERVE: Moody's Assigns E+ Financial Strength Rating
--------------------------------------------------------------
Moody's Investors Service has assigned B2/Not-Prime local currency
deposit ratings, B2/Not-Prime foreign currency deposit ratings,
and an E+ Bank Financial Strength Rating (BFSR) to Russia's
National Reserve Bank (NRB).  The outlook on all ratings is
stable.  At the same time, Moody's Interfax Rating Agency has
assigned an A3.ru long-term national scale credit rating (NSR) to
the bank.  Moscow-based Moody's Interfax is majority-owned by
Moody's.

According to Moody's, the E+ BFSR, which translates into a
Baseline Credit Assessment (BCA) of B2, is supported by NRB's
strong financial fundamentals -- notably profitability, capital
adequacy and efficiency.  At the same time, the rating is
primarily constrained by the bank's very high, albeit gradually
declining, dependence on the performance of the OJSC Gazprom
shares, which represent a substantial part of total assets (30% at
year-end 2007).  "NRB's limited franchise, large concentrations in
the loan portfolio and undiversified structure of funding, which
is significantly reliant on related parties, also weigh on the
BFSR.  The bank is part of a group with total assets estimated at
US$5.6 billion at year-end 2007, which also comprises companies
from civil aviation, telecommunications, agriculture, construction
and some other industries consolidated under the holding company
National Reserve Corporation (NRC)," says Andrey Artyukhin, a
Moscow-based Moody's Vice President-Senior Analyst, and lead
analyst for this issuer.

"The local currency deposit rating assigned to NRB is supported by
the bank's BCA of B2 and does not factor in any support from its
shareholders.  In Moody's view, although such support cannot be
ruled out, its scope and timeliness are rather uncertain, while
systemic support in the event of need is unlikely.  The foreign
currency deposit rating is assigned at the same level as the
bank's local currency deposit rating and is not constrained by the
foreign currency deposit ceiling for Russia," adds
Mr. Artyukhin.

Headquartered in Moscow, National Reserve Bank reported total
assets of US$2.2 billion under IFRS as at Dec. 31, 2007.


PIK GROUP: Fitch Puts Low-B IDRs Under Negative Watch
-----------------------------------------------------
Fitch Ratings has placed Russian housebuilder OJSC PIK Group's
Long-term Issuer Default rating of 'BB-' and Short-term IDR of 'B'
on Rating Watch Negative.

The rating action reflects Fitch's increased concerns over PIK's
liquidity position, due to the company's high level of short-term
debt which, coupled with the recent turmoil in the Russian
financial markets, creates a material refinancing risk for the
company.

PIK, like many of its Russian real estate peers, operates with
high levels of short-term debt, and Fitch estimates that as of
mid-September 2008 the company had approximately half of its total
gross debt maturing before Dec. 31, 2008.  Fitch is concerned by
both the large size and the short-maturity of this debt.

Nevertheless, Fitch takes some comfort from PIK's plans to meet
its immediate debt requirements, by mainly using operational cash
flow to repay near-term debt.  Operational cash flow is expected
to be boosted during September-December 2008 by a series of
sizeable cash receipts for the sale of housing units to the City
of Moscow.  PIK expects these payments alone to be enough to meet
debt repayment requirements during the remainder of 2008.

In addition, the company also plans to raise new finance before
the end of 2008, including new bank debt and a rouble bond issue.
This, along with liquidity in the form of cash and medium term
undrawn facilities, should provide PIK with sufficient liquidity
to cover its near-term debt requirements.

However, lending to Russian real estate companies has
significantly tightened over recent weeks and is expected to
tighten further given the prevailing conditions in the financial
markets.  Therefore, the agency has concerns that PIK may not be
able to raise all of its planned new debt finance.

Fitch has reasonable confidence that PIK will receive its sizeable
expected cash receipts from the City of Moscow (rated BBB+) on
time and as planned, given the good credit profile of the counter-
party, although there is still a risk that these receipts could be
delayed due to unforeseen reasons.  The agency notes that PIK is
particularly sensitive to any delay in payment due to the short-
term debt pressures it faces.

At the same time, Fitch positively notes that PIK's residential
real estate sales have remained strong and during H108 doubled
(totaling US$1 billion) as compared with H107.

Given the current uncertainty surrounding PIK's ability to raise
the required cash, Fitch will closely monitor the progress of its
fund raising efforts and cash receipts over the next 3 months.
Should fund raising efforts take longer than planned, or cash
receipts be less than expected, PIK's ratings will likely be
downgraded, possibly by more than one notch.  Fitch also notes
that the company's ratings have little tolerance to any further
negative news, including a material deterioration in residential
market conditions, which Fitch believes is a possibility should
there be contagion from the current financial disruption into the
broader Russian economy.


RENAISSANCE CAPITAL: S&P Assigns BB- Counterparty Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'BB-' long-term
counterparty credit rating on Russian Renaissance Capital Holdings
Ltd. on CreditWatch with negative implications.  The 'B' short-
term rating was affirmed.

"The CreditWatch placement reflects RCHL's uncertain liquidity
position and financial standing following the dramatic volatility
of the Russian equity market, particularly in recent weeks, and
the sharp liquidity squeeze in the Russian banking sector," said
S&P's credit analyst Elena Romanova.

Renaissance Capital's brokerage and trading operations have
suffered losses in the recent market downturn and liquidity
squeeze due to market moves and the severe contraction in
liquidity in the Russian equity market and banking sector.  The
bank announced earlier that ONEXIM Group (not rated) will become
a 50% owner through the issuance of new shares for a total amount
of US$500 million.  Although this will significantly mitigate
liquidity concerns and compensate possible loses, the extent to
which market volatility and the general loss of lenders'
confidence in the independent investment banking business model
may make funding and other operations more difficult in the
future.

The CreditWatch placement will be resolved when enough detailed
information is available to assess Renaissance Capital's
liquidity, capitalization, and profitability in the market's
current challenging conditions.

"The ratings would be lowered or the outlook revised to negative
if these concerns weaken credit quality and are not fully offset
by the firm or its new or existing shareholders' countermeasures,"
said Ms. Romanova.

Renaissance Group is an independent group of investment banking,
asset management, merchant banking and consumer finance companies,
specializing in high-opportunity emerging markets.  Renaissance
Group operates in Russia, Ukraine, Kazakhstan, the United Kingdom,
the United States of America, Cyprus, Sub-Saharan Africa,
Switzerland, Bermuda and the British Virgin Islands.


ROS-MET LLC: Creditors Must File Claims by October 11
-----------------------------------------------------
Creditors of LLC Ros-Met (TIN 7444040583) have until Oct. 11,
2008 to submit proofs of claims to:

         R. Akhmetov
         Insolvency Manager
         Post User Box 126
         455000 Magnitogorsk
         Chelyabinskaya
         Russia

The Arbitration Court of Chelyabinskaya will convene on Nov. 10,
2008, to hear the bankruptcy proceedings against the company after
finding it insolvent.  The case is docketed under Case No A76-
8209/08-34-83.

The Court is located at:

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

The Debtor can be reached at:

         LLC Ros-Met
         Lenina prospect 57
         455000 Magnitogorsk
         Chelyabinskaya
         Russia


ROSEVROBANK: Fitch Assigns 'D' Individual Rating
------------------------------------------------
Fitch Ratings has assigned Russia's RosEvroBank ratings of Long-
term Issuer Default 'B', Short-term IDR 'B', Individual 'D',
Support '5', National Long-term 'BBB-(rus)' and Support Rating
Floor 'No Floor'.  The Outlooks for the Long-term IDR and National
Long-term rating are Stable.

The ratings reflect REB's limited, albeit growing, franchise,
concentrated balance sheet and potentially vulnerable liquidity.
At the same time, they reflect its good reported asset quality to
date and currently reasonable capitalization.

The loan book continued to grow rapidly in H108 and 2007,
marginally outstripping banking sector loan growth.  REB mostly
lends to well-established medium-sized businesses, but also to
larger companies, while retail lending is mostly secured and
comprised 17.8% of the end-H108 loan book.  Borrower concentration
is high, albeit broadly in line with peers and gradually
decreasing.  Reported operations with related parties are low.

REB's non-equity funding remains undiversified and predominantly
short-term, and is mainly sourced from customer accounts (70% at
end-H108), meaning the bank's liquidity is potentially vulnerable.
This, however, has been manageable so far, with a significant
liquidity cushion maintained and the bank's strategy is to
diversify its funding base further, albeit this will be very
challenging near-term given the current market environment.  REB
faces repayments on foreign borrowings equal to an estimated total
14% of end-H108 liabilities in Q408 and H109 (including a US$120
million Eurobond in October 2008), but current liquid assets
should be sufficient to meet these, even if the bank is not able
to partially refinance.

Performance has been reasonable (return on average assets 1.6% in
H108; 1.9% in 2007), but is vulnerable to any marked increase in
funding, operational or credit costs.  The Fitch Eligible Capital
and Basel tier I ratios stood at a sound 13.6% at end-H108,
although these are likely to gradually fall in the absence of any
near-term plans to inject new equity.   REB's securities holdings
are mainly in government debt and bank promissory notes, and Fitch
is informed that the bank has incurred no significant losses on
its securities portfolio in Q308.

Upside potential for the ratings is currently limited, but REB's
credit profile would benefit from continued strengthening of the
franchise, a strengthening of profitability and greater funding
diversification.  Downward pressure could mainly result from a
material weakening of asset quality and/or a major liquidity
shortfall.

REB is a medium-sized, Moscow-based bank, the 55th-largest in
Russia by assets at end-H108.  Traditionally focused on lending to
corporate clients, the bank now aims to penetrate the retail and
SME sectors and expand into regions.  REB is owned by several
individuals (84%), funds managed by Renaissance Investments
Management (10%) and Deutsche Investitions- und
Entwicklungsgesellschaft (6%).


RUSSIAN FACTORING: Fitch Holds 'BB' Rating on RUB300BB Facility
---------------------------------------------------------------
Fitch Ratings affirmed the ratings of Russian Factoring No. 1
S.A.'s debt obligations as:

  -- RUB5 billion senior asset-backed notes: 'BBB'; Outlook Stable
  -- RUB300 million mezzanine facility: 'BB'; Outlook Stable

The transaction is a securitization of trade receivables acquired
by CJSC Eurokommerz FC, a factoring company mainly active in the
Russian Federation (rated 'BBB+').  Since December 2007,
Eurokommerz has sold receivables against Russian debtors into the
transaction that were originated in the ordinary conduct of its
factoring business.

According to the original transaction documentation the notes
should now start to amortize monthly in line with the portfolio.
However, Eurokommerz and the issuer - with the consent of the
related parties to the transaction - have agreed to amend the
transaction documentation.  The affirmation reflects these
proposed amendments.

The issuer extended the revolving purchase commitment towards
Eurokommerz until 16 March 2009 subject to certain amortization
triggers to be passed during this time.  The final legal maturity
of the debt instruments was extended by 12 months to 15 March
2010.  This one year time lag is in Fitch's view sufficient to
redeem the notes from collections of funded receivables.  Finally,
the notes were partially redeemed. The redemption by the issuer
was funded via a buy back of receivables by Eurokommerz as of 19
September 2008.

The key structural features of the transaction remain unchanged.
These include the dynamic determination of credit enhancement, as
well as the role of JSC VTB Bank as backup servicer.  Since
closing, the collection account holding bank was acquired in full
by the Kazakh BTA group.  Former Slavinvestbank was rebranded to
"LLC BTA Bank" but continues to act as collection account holding
bank. Its current rating equals 'B+', negative outlook.  If it
were to fall below 'B-', the transaction foresees the closing of
all accounts and a redirection of payments to the backup servicer.

Enhancement stands at 32% for the senior notes and 28% for the
mezzanine facility.  Enhancement is made up by three components to
cover defaults, carrying costs and commingling exposure.

Based on information provided by Eurokommerz, the transaction has
not observed any defaults of debtors or customers with regard to
the receivables sold.  It has to be noted though that the
corporate segment that forms the customer base of Eurokommerz is
likely to be affected by the liquidity squeeze currently
experienced by the Russian banking system.  With banks reducing
their financing commitments against SME's, the factoring business
may be affected in two ways.

First, demand for factoring as a funding source is likely to
increase.  Second, higher delinquencies and also the first
defaults may show up in the securitized portfolio due to a higher
number of debtors that face refinancing problems, and potentially
insolvency.  Due to its short-term nature, Fitch expects the
factoring business to reflect negative trends in the overall
economy relatively early on in a downward cycle.

Fitch takes comfort from the monthly determination of the required
loss protection that is in line with Fitch's trade receivables
criteria.  While there have been no losses yet, the loss floor
calculation ensures that a minimum loss of 8.5% for the senior
note and 6% for the mezzanine facility will be covered under the
transaction.  Fitch has taken the view that these levels of
protection may also limit the refinancing burden on the seller to
increase enhancement by raising the subordinated loan granted to
the issuer.


SIB-LES LLC: Creditors Must File Claims by November 11
------------------------------------------------------
Creditors of LLC Sib-Les have until Nov. 11, 2008 to submit
proofs of claims to:

         A. Shirobokov
         Insolvency Manager
         Post User Box 502
         660022 Krasnoyarsk
         Russia

The Arbitration Court of Krasnoyarskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A339069/2008.

The Court is located at:

         The Arbitration Court of Krasnoyarsk
         Lenina Str. 143
         660021 Krasnoyarsk
         Russia

The Debtor can be reached at:

         LLC Sib-Les
         Yaroslavskaya Str.6/1
         Lesosibirsk
         Russia


SVIAZ-BANK: Moody's Cuts Bank Financial Strength Rating to E
------------------------------------------------------------
Moody's Investors Service has downgraded Sviaz-Bank's long-term
global local and foreign currency deposit ratings to Caa2 from B2
and its bank financial strength rating to E from E+.  The short-
term deposit ratings have been affirmed at Not Prime.  At the same
time, Moody's Interfax Rating Agency, which is majority-owned by
Moody's, has downgraded Sviaz-Bank's long-term National Scale
Rating to B2.ru from Baa1.ru.  All ratings have been placed on
review with direction uncertain.

Moody's and Moody's Interfax explain that the rating downgrades
have been prompted by Sviaz-Bank having defaulted on its
obligations on repurchase transactions and having incurred a
significant decrease in asset value that has significantly damaged
its capital.  This has largely been as the result of the impact of
the current extremely adverse market conditions on the bank's
sizeable risk positions arising from its high risk appetite.

The rating review with direction uncertain captures the present
uncertainty with regard to the possible outcomes of Sviaz-Bank's
current situation.  On the one hand, if the bank manages to
receive additional support either from the regulatory authorities
or from a financially stronger strategic partner that assumes its
obligations, recapitalizes the bank and restores its risk
management parameters and financial stability, Moody's would be
likely to upgrade Sviaz-Bank's deposit ratings.  On the other
hand, if the bank fails to be supported or to attract a potential
strategic partner and is therefore at risk of defaulting on its
other obligations, such failure will likely merit further rating
downgrades.

Moody's understands that the bank is currently in negotiations
with publicly undisclosed parties with regard to possible
mechanisms for further support.  These negotiations are focused on
matters including a possible recapitalization and the provision of
assistance in a restructuring of the bank's liabilities.

Based in Moscow, Russia, Sviaz-Bank is a universal bank with a
wide presence in the Russian regions (about 50 branches covering
almost the whole country).  As of June 30, 2008, the bank reported
total assets of RUB170 billion in accordance with Russian
Accounting Standards.


TIMBER CENTER: Creditors Must File Claims by November 11
--------------------------------------------------------
Creditors of LLC Timber Center have until Nov. 11, 2008 to submit
proofs of claims to:

         P. Tarasov
         Insolvency Manager
         Post User Box 19
         Postal Telegraph Office 100
         170100 Tver
         Russia

The Arbitration Court of St. Petersburg commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No ?56-44510/2007.

The Court is located at:

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

The Debtor can be reached at:

         LLC Timber Center
         Liter A
         K. Zaslonova Str.26
         191119 St. Petersburg
         Russia


VYATKO-KOMPLEKT: Kirov Bankruptcy Hearing Set November 30
---------------------------------------------------------
The Arbitration Court of Kirov will convene at 2:00 p.m. on Nov.
30, 2008, to hear bankruptcy supervision procedure on LLC Vyatko-
Komplekt .  The case is docketed under Case No. A28-5466/ 2008-
144/3.

The Temporary Insolvency Manager is:

         S. Shumin
         Ordzhonikidze 12/105
         610008 Kirov
         Russia

The Court is located at:

         The Arbitration Court of Kirov
         K-Libknekhta Str. 102
         610017 Kirov
         Russia

The Debtor can be reached at:

         LLC Vyatko-Komplekt
         Apt.148
         M. Koneva Str. 7
         610021 Kirov
         Russia


* S&P Revises Outlook to Stable on Seven Low-B Rated Russian Banks
------------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlooks on
the long-term ratings on seven Russian financial institutions to
stable from positive.  The long-term ratings on all the banks
were affirmed, but the national scale ratings on two of the seven
were lowered.

The outlook revisions reflect the fact that market conditions in
Russia have become much more difficult and volatile, especially
with regard to the tightened liquidity situation and tougher
refinancing conditions.

S&P expects these factors to pressure banks' near-term financial
performance and financial flexibility, as well as hinder their
strategic expansion goals.

For a more in-depth analysis on the impact of the ongoing
liquidity squeeze and stock market turbulence in Russia's banking
sector, please see the article "Financial Turbulence Tests
Resilience Of Russian Banks And State Support For Banking Sector,"
published on RatingsDirect.

Following today's outlook revisions, none of the banks with long-
term ratings in Russia that S&P rates has a positive outlook.

S&P's lowering of the Russia national scale ratings on two of the
seven banks reflects the more granulated credit ratings approach
under its national ratings scale.

Ratings List                          To              From
------------                          --              ----
Bank Soyuz

  Counterparty Credit Rating      B/Stable/C       B/Positive/B
  Russia national scale           ruA-              ruA

Commercial Bank Petrocommerce (OJSC)

  Counterparty Credit Rating      B+/Stable/B      B+/Positive/B
  Russia national scale           ruA+             ruA+

National Factoring Company

  Counterparty Credit Rating      B-/Stable/C      B-/Positive/C
  Russia national scale           ruBBB            ruBBB+

Rosbank OJSC

  Counterparty Credit Rating      BB+/Stable/B     BB+/Positive/B
  Russia national scale           ruAA+            ruAA+

Rusfinance Bank

  Counterparty Credit Rating      BB+/Stable/B     BB+/Positive/B
  Russia national scale           ruAA+            ruAA+

Surgutneftegasbank

  Counterparty Credit Rating      B+/Stable/B      B+/Positive/B

TransCreditBank

  Counterparty Credit Rating      BB/Stable/B      BB/Positive/B
  Russia national scale           ruAA             ruAA


* S&P Says Russian Govt. Financial Support Outcomes Unpredictable
-----------------------------------------------------------------
Standard & Poor's Ratings Services is seeing more Russian
government willingness to pursue orthodox support measures to
address financial turmoil.  However, the continued institutional
weakness in Russia makes the outcome of the measures
unpredictable.  This is not the first time, and will not be the
last, as Russia is prone to liquidity panics in the interbank and
retail markets.

The Russian banking system continues to be severely tested by the
sharp liquidity squeeze and the massive volatility in global
equity markets.  No ratings on financial institutions in the
country have so far been lowered, although the positive outlooks
on the long-term ratings on seven Russian financial institutions
have been revised to reflect the fact that market conditions have
become much more difficult and volatile, particularly the
tightened liquidity situation and tougher refinancing conditions.
These factors are expected to pressurize banks' near-term
financial performance and flexibility.

The Russian government has been active in supporting the banking
market by injecting liquidity resources, whereby the peak of
central bank daily repo financing to banks reached RUR365 billion
(about US$14.6 billion) on Sept. 17, 2008, to the large state-
controlled banks.  These funds could be used to filter down
through the interbank market to ease the liquidity situation, but
in reality small and midsize banks may not benefit, and thus
continue to suffer from a lack of rubles in the market.  In
addition, the government has reduced reserve requirements by 4%
and cut crude oil export taxes to offset the effects of the lower
oil price.  These measures, however, are not a panacea for long-
term stability.  S&P expects that sharp periods of volatility in
the market will continue putting pressure on banks, especially the
small and midsize ones and those which have sizable refinancing
programs in the coming months.

Credit is likely to become scarcer, which will have a negative
impact on asset quality and growth dynamics.  Corporate depositors
will use their cash to repay debt coming due while retail
depositors might consider a flight to quality.  However, with the
interbank market being closed for many small banks, with lines
being cut by their bigger peers and higher interest rates, there
will be a dash for cash and more banks may experience liquidity
problems.  This is likely to be exasperated by the continuing
closure of the international debt markets for the banks to tap,
particularly as sizable debt refinancing needs to take place
during the coming six months.  As a knock-on impact, asset quality
may then start to suffer as a credit squeeze will prevent
borrowers financing their own projects and investments.

The settlement problems encountered last week by KIT Finance (not
rated), a midsize investment bank, is clear evidence of an
institution over-extending itself without having the necessary
long-term funding lines or resources in place.  An inability to
meet margin call repayments in a slumping market was the catalyst
for the bank's failure.  S&P's 'CCC+' rating was withdrawn at the
bank's request on Feb. 5, 2008.  Following the intervention of
the government, KIT has subsequently been taken over by Leader
(not rated), an asset management company of OAO Gazprom's
(BBB/Stable/--) related pension fund Gazfond (not rated).

On Aug. 6, 2008, S&P raised the Banking Industry Country Risk
Assessment for The Russian Federation to Group 7 from Group 8.  At
the same time, S&P changed its assessment of the Russian
government's propensity to provide support to private sector banks
to 'supportive' from 'support uncertain'.  These actions
particularly reflected Russia's increased political and regulatory
commitment to ensure the stability of the banking sector, as
highlighted by the Central Bank of Russia's effective management
of liquidity pressures related to the global credit crunch since
summer 2007.

However, Russian banks' creditworthiness remains relatively weak
compared to that of banks in other countries, reflecting:

  -- High liquidity risk;

  -- Increased reliance on confidence-sensitive wholesale funds
     and foreign borrowing;

  -- Substantial concentrations in lending, funding, and
     revenues;

  -- Strained capitalization amid balance-sheet growth;

  -- Risks related to poor transparency and information
     disclosure in most parts of the sector;

   -- Slow pace of banking-sector reform; and

   -- Unpredictable legal environment and uncertain property
      rights.

The more highly rated banks in Russia, including the state-
controlled banks, Bank VTB (BBB+/Stable/A-2) and Gazprombank (BBB-
/Stable/A-3), and the large foreign-owned banks, Raiffeisenbank
ZAO (BBB+/Stable/A-2) and CJSC Unicredit Bank (Russia)
(BBB+/Stable/A-2), benefit largely from external support from
their controlling owners, respectively the government and foreign
bank shareholders.  On a stand-alone basis, their ratings would be
several notches lower, which again reflects the weaknesses of the
banking system.  Depending upon the support received and the way
that these banks are able to navigate through these difficult
times, the gap in the ratings with the domestically-owned private-
sector banks may widen further.  The ratings on Russian banks take
into account a volatile operating environment, which affects the
banking system on a periodic basis, particularly liquidity
squeezes.

At the end of last week, the two main Russian equity markets, RTS
and MICEX re-opened after the government temporally closed them
on Sept. 17, 2008, after two days of heavy selling, which saw the
indexes experience their worst falls in a decade, since the crisis
that affected the country and banking system in 1998.  The rise in
the indexes on Sept. 19, 2008, after the announcement of the
government's support measures and the action taken by governments
and central banks around the globe to stabilize banking markets,
have helped relieve some pressure on the Russian banks.  Current
ratings, however, do take into account high levels of market
volatility, which makes the banking system vulnerable.


* UDMURTIA REPUBLIC: Moody's Assigns Ba1 Currency Issuer Ratings
----------------------------------------------------------------
Moody's Investors Service has assigned global scale local and
foreign currency issuer ratings of Ba1 to the Republic of Udmurtia
within the Russian Federation.  The rating outlook is stable.  At
the same time, Moody's Interfax Rating Agency, which is majority-
owned by Moody's, has affirmed the Republic's existing Aa1.ru
national scale rating.

"The ratings are supported by a healthy budgetary performance and
a low-to-moderate debt burden over a number of years," says
Alexander Proklov, a Moody's vice president and lead analyst for
the region.  The republic's gross operating surplus amounted to
15% of operating revenues in 2006 and 21% in 2007, while the ratio
of total debt to operating revenue was close to 14% at the end of
2007.  Strong operating results have been underpinned by a rapid
growth in personal and corporate income taxes on the back of high
oil prices and continuing economic growth in the republic.

Moody's also notes that the ratings are constrained by a large
exposure to taxpayers from the oil industry which has generated
30%-35% of the budget's tax revenue in recent years.  "Corporate
income tax receipts, which accounted for 43% of the Republic's tax
revenue in 2007, are highly affected by the volatility of the
global oil market prices," adds Mr. Proklov.

Another factor exerting pressure on the Republic's credit profile
is the rigidity of operating expenditure coupled with a strong
need for new infrastructure.  "The inflexible and rising operating
spending base, combined with growing capital expenditures, could
cause a rise in the debt burden over the medium term.  A sustained
commitment to a prudent policy framework will therefore be
important to manage this situation, particularly at a time of
financial market volatility and a stubbornly high inflation rate"
said the analyst.

Udmurtia is located in eastern Europe, bordering the Urals, and is
part of the Volga Federal District.  It has a population of 1.5
million, or 1.1% of Russia's entire population, and 69.4% of it is
urban.  Gross Regional Product (GRP) is approximately 0.7% of
Russian Gross Domestic Product (GDP).  Oil extraction and machine
manufacturing dominate the republic's economy.


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


HABITAT: Calls EGM to Decide on Future; Facing Dissolution
----------------------------------------------------------
Spanish property firm Habitat has called for an extraordinary
general meeting to decide on its future, Reuters reports.  The
EGM, the report discloses, will be held on Oct. 24, 2008.

Habitat, the report says, will ask its shareholders, which include
Ferrovial and a group of Catalan investors, to either inject
capital into the company or accept a reduction in its share
capital.

According to the report, the value of Habitat's assets fell below
half that of its share capital, putting the company at risk of
being dissolved.

Under Spanish corporate law, a limited company must maintain the
value of its assets above a threshold fixed at half the value of
its share capital otherwise it will be dissolved, the report
notes.

Habitat, the report relates, met with its creditor banks Friday
last week in an attempt to refinance its EUR1.5 billion debt pile
and avoid filing for administration.  However, preliminary talks
failed to produce a refinancing agreement.

The syndicate of 39 creditor banks is led by Spain's biggest
savings bank, La Caixa, the report reveals.


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


CARGO CARE: Proofs of Claim Filing Deadline is October 5
--------------------------------------------------------
Creditors owed money by LLC Cargo Care Maritime are requested to
file their proofs of claim by Oct. 5, 2008, to:

         JSC Trevesa
         Steinenring 46
         4051 Basel
         Switzerland

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


CBD CREATIVE: Creditors' Proofs of Claim Due by October 5
---------------------------------------------------------
Creditors owed money by LLC CBD Creative Business Development  are
requested to file their proofs of claim by Oct. 5, 2008, to:

         Adam Grzesicki-Hauri
         Rabmatt 33j
         6317 Oberbwil b. Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on  Aug. 20, 2008.


CREA CDO I: October 5 Set as Deadline to File Proofs of Claim
-------------------------------------------------------------
Creditors owed money by JSC CREA CDO I are requested to file their
proofs of claim by Oct. 5, 2008, to:

         JSC MMC Finance
         Seefeldstrasse 301
         8008 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 6, 2008.


DAVIT JSC: Creditors Must File Proofs of Claim by October 5
-----------------------------------------------------------
Creditors owed money by JSC Davit are requested to file their
proofs of claim by Oct. 5, 2008, to:

         JSC Blumer-Lehmann
         Erlenhof,
         9200 Gossau SG
         Switzerland

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


LAIMBACHER UNTERNEHMENSBERATUNG: Claims Due by October 15
---------------------------------------------------------
Creditors owed money by LLC Laimbacher Unternehmensberatung are
requested to file their proofs of claim by Oct. 15, 2008, to:

         Grosssteinstrasse 22b
         6438 Ibach
         Switzerland

The company is currently undergoing liquidation in Schwyz.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 2, 2008.


PERSIST JSC: Creditors Have Until October 4 to File Claims
----------------------------------------------------------
Creditors owed money by JSC Persist are requested to file their
proofs of claim by Oct. 4, 2008, to:

         Nathalie Grundler-Ruepp
         Schlusselackerstrasse 20
         5614 Sarmenstorf
         Switzerland

The company is currently undergoing liquidation in Sarmenstorf.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 6, 2008.


SPORTHOTEL SHERLOCK: Deadline to File Claims Set October 5
----------------------------------------------------------
Creditors owed money by JSC Sporthotel Sherlock Holmes are
requested to file their proofs of claim by Oct. 5, 2008, to:

         Ernst Hofmann
         Personalverband des Bundes
         Oberdorfstrasse 32
         3072 Ostermundigen
         Switzerland

The company is currently undergoing liquidation in Meiringen.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 7, 2008.


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


AZOVSTAL IRON: S&P Lifts Corporate Credit Rating to B+
------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
corporate credit rating on Ukraine-based JSC Azovstal Iron and
Steel Works to 'B+' from 'B-' on support from its parent company
Metinvest B.V. (not rated) and strong operating performance.  The
outlook is stable.  At the same time, the rating on finance
vehicle Azovstal Capital B.V.'s US$175 million senior unsecured
loan participation notes was raised to 'B' from 'B-'.  The
recovery rating on the notes is now '5'.

"The ratings reflect Azovstal's stand-alone credit quality as well
as our expectation that it will receive ongoing and extraordinary
support from its financially stronger parent company Metinvest
B.V., which controls 97% of Azovstal's shares," said S&P's credit
analyst Andrey Nikolaev.

Azovstal is the largest asset of Metinvest Holding and generates
about 25% of the group's EBITDA.  It also provides a vital link
between the holding's mining assets in Ukraine and its rolling
plants in Europe.  Furthermore, Azovstal is a co-borrower under
several of Metinvest's credit facilities, which represent a
significant part of its debt, increasing parental incentive to
support Azovstal.

The rating is constrained by the company's position as a commodity
player in a cyclical industry; by the country risks of Ukraine
(foreign currency, B+/Stable/B; local currency BB-/Stable/B),
where Azovstal operates; its aged asset base that requires large
capital expenditures; and by the weak liquidity of Metinvest
Group.  Although Azovstal's balance sheet debt is moderate, its
co-borrowings under several Metinvest credit facilities increase
its leverage considerably.

These risks are tempered by Azovstal's high share of exports (more
than 70% of sales), access to low-cost resources in Ukraine, and
vertical integration in iron ore, coke, and scrap at the parent
level.

The company is undertaking an ambitious US$3.7 billion capital-
expenditure program between 2006 and 2016 to modernize its aged
asset base.  Although this is strategically important to its long-
term competitiveness, the program will limit free operating cash
flow generation in the coming years, as will large working-capital
fluctuations.

On Dec. 31, 2007, the company had moderate total debt of UAH1.2
billion, postretirement benefit obligations of UAH0.6 billion, and
guarantees issued of UAH137 million, implying a ratio of adjusted
debt to EBITDA of 0.6x.  In the future, Azovstal's financial
flexibility will depend to a significant extent on debt at
Metinvest Holding, which is currently moderate.

"The stable outlook reflects our expectation that Azovstal will
remain the key asset of Metinvest Holding, which will provide
support if necessary," said Mr. Nikolaev.


BAKHMACHBREAD LLC: Creditors Must File Claims by September 27
-------------------------------------------------------------
Creditors of LLC Bakhmachbread have until Sept. 27, 2008, to
submit proofs of claim to:

         The Economic Court of Chernigov
         Mir Str. 20
         14000 Chernigov
         Ukraine

The Economic Court of Chernigov commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 11, 2008.
The case is docketed as 9/69b.

The Debtor can be reached at:

         LLC Bakhmachbread
         Tinitskaya Str. 82
         Bakhmach
         16500 Chernigov
         Ukraine


BELTAN LLC: Creditors Must File Claims by September 28
------------------------------------------------------
Creditors of LLC Beltan (code EDRPOU 35276056) have until Sept.
28, 2008, to submit proofs of claim to:

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

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 20, 2008.
The case is docketed as 27/141B.

The Debtor can be reached at:

         LLC Beltan
         Titov Avenue 15
         Donetsk
         Ukraine


DNIEPROVSKIYE ZORI: Creditors Must File Claims by September 28
--------------------------------------------------------------
Creditors of LLC Dnieprovskiye Zori (code EDRPOU 32068756) have
until Sept. 28, 2008, to submit proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskiy Str. 44-b
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced the bankruptcy supervision
procedure on the company on July 7, 2008.  The case is docketed as
28/209-b.

The Debtor can be reached at:

         LLC Dnieprovskiye Zori
         Narodnogo Opolcheniya Str. 1
         03151 Kiev
         Ukraine


FORLAND LLC: Creditors Must File Claims by September 26
-------------------------------------------------------
Creditors of LLC Forland (code EDRPOU 34506795) have until Sept.
26, 2008, to submit proofs of claim to:

         The Economic Court of Odessa
         Shevchenko Avenue 29
         65009 Odessa
         Ukraine

The Economic Court of Odessa commenced bankruptcy supervision
procedure on the company.  The case is docketed 7/188-08-3247.

The Debtor can be reached at:

         LLC Forland
         Bolgarskaya Str. 25
         65028 Odessa
         Ukraine


MANDARIN 2004: Creditors Must File Claims by September 26
---------------------------------------------------------
Creditors of LLC Mandarin 2004 have until Sept. 26, 2008, to
submit proofs of claim to:

         The Economic Court of Odessa
         Shevchenko Avenue 29
         65009 Odessa
         Ukraine

The Economic Court of commenced bankruptcy proceedings against the
company after finding it insolvent on March 27, 2008.
The case is docketed as 2/59-08-1101.


MBD-LOGISTICS LTD: Creditors Must File Claims by September 26
-------------------------------------------------------------
Creditors of LLC MBD-Logistics Ltd (code EDRPOU 22470692) have
until Sept. 26, 2008, to submit proofs of claim to:

         The Economic Court of Odessa
         Shevchenko Avenue 29
         65009 Odessa
         Ukraine

The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 30, 2008.
The case is docketed as 32-3/286-07-8391.

The Debtor can be reached at:

         LLC MBD-Logistics Ltd
         Gaydar Str. 13
         Odessa
         Ukraine


NOSOVKA REGIONAL: Creditors Must File Claims by September 28
------------------------------------------------------------
Creditors of LLC Nosovka Regional Milk Plant (code EDRPOU
32319861) have until Sept. 28, 2008, to submit proofs of claim to:

         The Economic Court of Chernigov
         Mir Str. 20
         14000 Chernigov
         Ukraine

The Economic Court of Chernigov commenced bankruptcy proceedings
against the company after finding it insolvent on July 22, 2008.

The Debtor can be reached at:

         LLC Nosovka Regional Milk Plant
         Vokzalnaya Str. 268-a
         Nosovka
         17100 Chernigov
         Ukraine


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


AMERICAN INTERNATIONAL: Loses US$5.36 Billion in Second Quarter
---------------------------------------------------------------
Reuters reports that the American International Group Inc. lost
US$5.36 billion in the second quarter on bad mortgage investments,
its third straight quarterly loss.

According to the report, AIG employs more than 116,000 employees,
and many full- and part-time agents, worldwide.  AIG, according to
Reuters, operates in 130 countries and jurisdictions, including
Brazil, China, India and Taiwan, as well as the United States and
United Kingdom.  The company currently has assets of more than
US$1 trillion.

As reported in the Troubled Company Reporter on Sept. 17, 2008,
the Federal Reserve Board, with the full support of the Treasury
Department, authorized the Federal Reserve Bank of New York to
lend up to US$85 billion to AIG in exchange for an 80% stake in
the company.

The bailout brings U.S. rescue efforts to stabilize the financial
system and housing market to about US$900 billion, according to
Reuters.

In a U.S. Securities and Exchange Commission filing dated Aug. 6,
2008, AIG reported a net loss for the second quarter of 2008 of
US$5.36 billion compared to 2007 second quarter net income of
US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of the
weak U.S. housing market and disruption in the credit markets, as
well as global equity market volatility, had a substantial adverse
effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of US$9.02
billion in the first six months of 2007.

               About American International Group

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

                          *     *     *

As reported by the Troubled Company Reporter on Sept. 19, 2008,
Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch's action follows
AIG's announcement that its board has approved a transaction under
which the Federal Reserve Bank of New York will provide AIG with a
two- year US$85 billion secured revolving credit facility.  Fitch
views this transaction as a favorable development that alleviates
significant near-term liquidity concerns.  The agency plans to
issue a more detailed analysis in support of this action.  Fitch
has revised the Rating Watch Status on these ratings to Evolving
from Negative: American International Group, Inc. -Long-term IDR
'A'; Senior debt 'A'; Junior subordinated debentures 'A-'; and
Short-term IDR to 'F1'.  The Rating Watch status on the following
'AA-' Insurer Financial Strength ratings have been revised to
Evolving from Negative include Foreign Domiciled General Ins.
Companies; AIG MEMSA Insurance Company Ltd. (UAE); AIG (UK) Ltd.
(formerly The Landmark Insurance Co. Ltd. (UK); and American
International Underwriters Overseas, Ltd. (Bermuda).

On Sept. 19, 2008, the TCR reported that Standard & Poor's Ratings
Services revised the CreditWatch status of most of its ratings on
the AIG group of companies--including its 'A-' long-term
counterparty credit ratings on American International Group Inc.
and International Lease Finance Corp. and the 'A+' counterparty
credit and financial strength ratings on most of AIG's insurance
operating subsidiaries--to CreditWatch developing from CreditWatch
negative.  Standard & Poor's also said that it raised its short-
term counterparty ratings on AIG, its guaranteed subsidiaries, and
ILFC to 'A-1' from 'A-2'.  In addition, Standard & Poor's lowered
the ratings on various subsidiaries' preferred shares to 'B' from
'BBB'; the ratings on the preferred shares remain on CreditWatch
negative because of the increased risk of deferral of dividend
payments due to the right of the U.S. government to veto dividend
payments.  The 'BBB/A-3' counterparty credit rating on American
General Finance Corp. is unchanged.  The outlook is negative.


BRADFORD & BINGLEY: U.K. Regulator Working on Firm's Takeover
-------------------------------------------------------------
The Sunday Telegraph reports that U.K.'s Financial Services
Authority (FSA) has approached Spain's Santander Bank, the
Netherlands' ING Groep N.V. and National Australia Bank to gauge
their interest in a takeover of Bradford & Bingley plc.

People familiar with the situation told The Telegraph the
regulator is working with the bank's board to find a long-term
solution to the challenges it has faced in recent months,
including a rights issue that had to be restructured twice and
concerns about its ability to fund its lending.  The sources said
however it isn't clear whether the three banks are interested to
do a deal with Bradford & Bingley or at what price any takeover
might be pitched.

Sources close to Bradford & Bingley meanwhile said the company was
not currently in takeover talks and that a deal was not imminent,
pointing out that the firm was adequately funded and that
depositors' money was safe, The Telegraph notes.

The Financial Times relates the bank has just completed a GBP400
million rights issue and its core equity Tier 1 ratio - a measure
of strength - is 9.1%, one of the highest in the sector.
However, the FT says about 85% of its mortgage book is riskier
buy-to- let and self-certified mortgage loans.

News of the U.K. regulator's move sent Bradford & Bingley's stock
1.8% higher to 28.25 pence, reducing this year's decline to 89%,
Bloomberg News reports.

Bloomberg News also said the rise in Bradford & Bingley's shares
followed the FSA's decision to ban investors from taking new short
positions in more than two dozen banks and financial companies
last week.  According to the report, some politicians and
investors have blamed short sellers for the plunge in shares of
Bradford & Bingley.

As reported in the Troubled Company Reporter-Europe on Sept. 18,
2008, Moody's Investors Service downgraded Bradford & Bingley
plc's financial strength rating (BFSR) to D from C-; subordinated
debt rating to Ba3 from Baa2 and junior subordinated debt rating
to B1 from Baa2.  The outlook on all ratings is negative.
The rating action concluded the review for possible downgrade on
the bank's ratings (with exception of the short term ratings,
which had not been under review) that had been initiated on July
4, 2008.

For the first six months ended June 30, 2008, Bradford & Bingley
posted GBP17.2 million in net losses on GBP246.7 million in net
revenues, compared with GBP129 million in net profit on GBP271.2
million in net revenues for the same period in 2007.

                    About Bradford & Bingley

Headquartered in Bingley, United Kingdom, Bradford & Bingley plc
-- http://www.bbg.co.uk/-- offers residential mortgages, and
focus on a range of areas providing mortgages for individuals.
It focuses on its savings business and provides a range of
savings products through 197 branches and network of 140 third-
party branch-type agents, by phone, post and Online.


CHASE MIDLAND: Owes Creditors More Than GBP22 Million
-----------------------------------------------------
Chase Midland plc owed creditors more than GBP22 million,
according to a report by the company's administrator Ernst &
Young, Jennifer Rigby writes for Property Week.  The company went
into administration in July after running into severe cashflow
problems, resulting to 49 job losses.

The administrators' report said "In the months preceding
administration, the housing market softened considerably,
resulting in a low volume of reduced price sales.

"The reduction in sales was exacerbated by funders, aware of the
reduction in the underlying value of the assets over which they
held security, seeking to increase the percentage they received
from each sale.  Furthermore, cost overruns on certain
developments, most notably Harborne Apartments, added to the
group's cashflow problems."

Chase Midland incurred a loss of almost GBP2 million in 2006. Its
most recent unaudited accounts, to March 2008, show a loss of
GBP436,000, Property Week relates.

Chase Midland's creditors include Royal Bank of Scotland, Dunbar
and Yorkshire Bank.  Dunbar, Property Week discloses, appointed
LPA (Law of Property Act) receivers over each of the nine
properties it lent on.  Meanwhile, other land and assets held by
Chase Midland are being put up for sale.

Property Week adds the administrators are also seeking legal
advice over seven litigation claims that Chase Midland was
pursuing prior to the administration.

Chase Midland, Property Week reveals, also provided guarantees of
GBP11 million to customers of construction unit Chase Norton
Construction, which is also in administration.  Property Week
however notes the chance of these guarantees being called upon was
a "serious risk", following the administration of the construction
unit.

As reported in the TCR-Europe, Ian Best and Diana Frangou of Ernst
& Young LLP were appointed joint administrators of Chase  Midland
plc on July 3, 2008.


FERGUS HAYNES: Goes Into Receivership; Owes EUR15 Million
---------------------------------------------------------
Donegal-based Fergus Haynes (Developments) has gone into
receivership after racking up debts of more than EUR15 million
(GBP11.9 million), David Doyle of Property Week reports.  Grant
Thornton Ireland was appointed receivers to the company.

Creditors of the company founded by developer Charles Fergus
include Bank of Scotland, Bank of Ireland and National Irish Bank,
the report discloses.  According to Sunday Business Post, Bank of
Scotland is owed EUR6 million and Bank of Ireland is owed EUR1
million.  National Irish Bank, on the other hand, has advanced the
company EUR2.5 million.

Bank of Scotland, the Post relates, took control of the company's
sites in Co Donegal after the High Court rejected a petition by
the firm's directors for it to be placed into examinership.

Atradius, a credit insurance firm representing two major
creditors, had earlier petitioned the High Court to wind up the
business, the Post adds.

Meanwhile, Anglo Irish Bank, which financed Rambling Lane's 12-
acre development site at Lambourne Road, Chigwell, Essex,
approached the High Court, expressing concerns over how their
money is secured.  Rambling Lane is owned by Fergus, Property Week
notes.

Property Week says Mr. Fergus had offered the bank a charge
against his home in Donegal of EUR200,000 (GBP159,000).
However, the bank argued it had no proof of Fergus' ownership of
the property or its worth.

The bank also claimed the value of the site in Epping is worth
less than the debt Fergus owes, Property Week states.  The value
of the site had dropped from EUR800,000 (GBP634,000) to EUR700,000
(GBP554,000).


LEHMAN BROTHERS: Nomura Reaches Deal to Buy Eur & Mid-East Biz
--------------------------------------------------------------
Nomura Holdings Inc. had reached an agreement to acquire the
European and Middle Eastern equities and investment banking
operations of Lehman Brothers Holdings Inc.

The acquisition will provide Nomura with a market leading equities
and investment banking platform in the region and further enhance
Nomura's strategy of connecting Asia and Europe.  The deal follows
Nomura's agreement on Sept. 22, 2008, to acquire Lehman Brothers'
entire franchise in the Asia Pacific region including Japan and
Australia.

Lehman's equities and investment banking businesses in Europe and
the Middle East employed around 2,500 staff, of whom a significant
proportion are expected to be retained.

Bloomberg News and The Associated Press relate that Nomura will
keep Lehman's 3,000 employees in Tokyo, Seoul, Beijing, Shanghai,
Hong Kong, Taiwan, Thailand, Singapore, Mumbai, Sydney and
Melbourne.  Nomura also said it would keep on most of Lehman's
2,500 workers in the U.K., Germany, Switzerland, Spain, the Middle
East, Sweden and Russia, the reports say.

The deal does not include any trading assets or trading
liabilities and Nomura will pay an undisclosed sum for the
businesses.  Bloomberg's Takahiko Hyuga reports that Nomura will
pay less than a month's revenue for the bankrupt bank's units.  AP
reported Monday, citing people familiar with the matter, that
Nomura's acquisition of Lehman's Asian operations was valued at
around US$225 million.

Kenichi Watanabe, Nomura's CEO, said: "This transaction will
significantly extend our European footprint and international
reach, enabling us to realise our strategy of delivering Asia to
the world.  Our immediate priority is to get the equity and
investment banking divisions back in business operating under the
Nomura name."

The transaction is subject to a number of conditions including
regulatory approvals.

Nomura said the European and Asian deals exclude trading assets or
trading liabilities, AP adds.

                           About Nomura

Nomura Holdings Inc. -- http://www.nomura.com/-- is a financial
services group and the pre-eminent Asian-based investment bank
with worldwide reach.  Nomura provides a broad range of innovative
solutions tailored to the specific requirements of individual,
institutional, corporate and government clients through an
international network in 30 countries.  Based in Tokyo and with
regional headquarters in Hong Kong, London, and New York, Nomura
employs about 18,000 staff worldwide.  Nomura's unique
understanding of Asia enables the company to make a difference for
clients through five business divisions: domestic retail, global
markets, global investment banking, global merchant banking, and
asset management.

                      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 Sept. 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
September 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: PwC Wants US$8 Billion Returned to European Arm
----------------------------------------------------------------
PricewaterhouseCoopers LLP, administrators to Lehman Brothers
Holdings Inc.'s European units, pressed for the repatriation of
more than US$8 billion (EUR5.5 billion, or GBP4.4 billion)
transferred to the investment bank's U.S. holding company before
its collapse, The Financial Times says.

FT relates that the demand is likely to be applauded by Lehman's
4,500 staff in London, who have mostly expressed anger over
Lehman Brothers International (Europe)'s lack of cash.

PwC's Tony Lomas said that the US$8 billion transfer to New York
days prior to the bankruptcy filing was suspicious, but said that
he was "not ruling anything out," FT notes.  Mr. Lomas told FT
that the matter needs further inquiry since it involves a large
sum.  PwC admitted that it is common for large financial companies
to have cash in regional operating units swept back to head
office, FT notes.

An undisclosed insider said that it was too early to tell if the
transferred funds could be returned, FT relates.  Another source
said that the repatriation could be followed up with a formal
legal action, FT reports.

                     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 Sept. 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, 2008 (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 Sept. 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.


M.I.W. FABRICATIONS: Claims Filing Period Ends November 3
---------------------------------------------------------
Creditors of M.I.W. (Fabrications) ltd. have until Nov. 3, 2008,
to detail their names and addresses (and solicitors if applicable)
together with particulars of their debts or claims, in writing, or
in person, to:

         Duncan R. Beat
         Liquidator
         Tenon Recovery
         75 Springfield Road
         Chelmsford
         Essex
         CM2 6JB
         England

Duncan R. Beat of Tenon Recovery was appointed liquidator of the
company on Sept. 3, 2008, for the creditors' voluntary winding-up
procedure.


M.I.W. METALWORK: Claims Filing Period Ends November 3
------------------------------------------------------
Creditors of M.I.W. (Metalwork) Ltd. have until Nov. 3, 2008, to
detail their names and addresses (and solicitors if applicable)
together with particulars of their debts or claims, in writing, or
in person, to:

         Duncan R. Beat
         Liquidator
         Tenon Recovery
         75 Springfield Road
         Chelmsford
         Essex
         CM2 6JB
         England

Duncan R. Beat of Tenon Recovery was appointed liquidator of the
company on Sept. 3, 2008, for the creditors' voluntary winding-up
procedure.


INEOS VINYLS: Moody's Assigns Negative Outlook to Low-B Ratings
---------------------------------------------------------------
Moody's Investors Service has assigned a negative outlook to the
B1 corporate family rating of Ineos Group Holdings plc, the Ba3
ratings on its existing senior first lien facilities, the B3
ratings of its second-lien facilities and the B3 ratings on its
senior guaranteed notes and legacy notes at Ineos Vinyls.

The rating action reflects Moody's expectation that the weak
current operating trends may persist in the near future, leading
to a sustained weakness in the cash flow generation of the group
as the polyolefins cycle enters into a downturn.  Moody's has
previously indicated that a deterioration in the group's cash flow
debt coverage metrics with FFO plus Interest / Interest falling
below 2.0x or weakening FCF generation are likely to put negative
pressure on the current ratings.  Moody's is also concerned that a
sustained weakness in operating cash flow generation could also
constrain headroom under the group's financial covenants
potentially raising liquidity concerns.

Moody's nevertheless notes that Ineos's performance in the first
half of 2008 was influenced by a number of one-off events, such as
a strike at its Grangemouth facilities and a fire at the ethylene
pipeline in Koln, and reflected some structural pressure on O&P
margins in Europe that to a certain extent should be corrected
during the second part of the year.  Looking ahead, Moody's will
focus on the ability of the group to continue to generate FCF
through the trough of the cycle and proactively manage its
liquidity in spite of increasingly volatile feedstock prices.

Moody's notes that Ineos' liquidity position is tightly managed.
At the end of June 2008, the group reported about EUR374 million
in availability under its working capital facilities and EUR515
million in cash balances ahead of the interest payments in
November 2008.

The following ratings are affected by the rating action:

Ineos Group Holdings plc:

   -- Corporate Family Rating: B1

   -- Probability of default rating: B1

   -- EUR1.750 million and US$750 million 2016 senior g-teed notes
      - B3 and LGD at 5 (89%);

Ineos Holding Limited

   -- EUR4,310 million and US$1,930 million  first-lien senior
      g-teed bank facilities - Ba3 and LGD at 3 (34%);

   -- EUR650 million second lien senior loans - B3 and LGD at
      5 (78%);

Ineos Vinyls Finance plc

   -- EUR160 million senior g-teed notes - B3 and LGD at 6 (96%).

Ineos Group Holdings plc is a diversified and integrated chemicals
group headquartered in Southampton, the United Kingdom.  Ineos
reported 2007 Revenues of EUR27.5 billion and EBIT of
EUR1.2 billion.


PERSONAL STORAGE: Taps PricewaterhouseCoopers as Liquidators
------------------------------------------------------------
Ian Christopher Oakley Smith and Michael John Andrew Jervis, of
PricewaterhouseCoopers LLP were appointed joint liquidators of
Personal Storage (Operations) LLP on Sept. 8, 2008, for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Personal Storage (Operations) LLP
         c/o PricewaterhouseCoopers LLP
         Hill House
         Richmond Hill
         Bournemouth
         BH2 6HR
         England


ROADCHEF FINANCE: S&P Lowers Rating on Class A2/B Notes to BB/B
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on the
class A2 and B notes issued by Roadchef Finance Ltd. and removed
them from CreditWatch with negative implications.  At the same
time, S&P removed the class A1 notes from CreditWatch positive and
affirmed it.

S&P placed the class A2 and B notes on CreditWatch negative on
Aug. 26, 2008 following a weak performance in the third quarter of
financial year 2008.  To resolve the CreditWatch placements on all
the notes S&P mets with senior management to discuss past
performance and future strategy as well as conducted a formal
review of Roadchef's operating performance.

The subsequent downgrades of the A2 and B classes reflect, in
S&P's opinion, the worsening of the underlying profitability of
the business, difficulties generating cash flows to meet their
debt service over the short term without the support of Roadchef's
ultimate owner Delek Real Estate, and the continuing difficult
trading conditions expected over the medium term.  S&P notes
however, that that management's plans to improve the estate have
had a promising effect on the Strensham site, one of Roadchef's
motorway stations.

In addition, S&P notes that the benefits of the structural
enhancements have not been as prevalent as initially expected,
given that Roadchef technically remains within its covenants but
under S&P's analysis presently does not generate sufficient cash
flow available for debt service to meet all obligations under the
securitization.  Also, the cash trapping mechanism in the
transaction has not had the anticipated effect of building cash
reserves.

The affirmation of the class A1 notes is as a result of several
factors, primarily the small size of the A1 class, its impending
maturity, and the availability of Delek's support as required.

A full Transaction Update on Roadchef Finance Ltd. will be
published shortly.

Roadchef Finance Ltd.:

  -- GBP210 Million Secured Notes

Rating Removed From CreditWatch Positive And Affirmed:

Class             To                From
-----            ----          --------------
  A1              BBB+          BBB+/Watch Pos

Ratings Lowered And Removed From CreditWatch Negative:

Class             To               From
-----            ----          -------------
  A2               BB           BBB/Watch Neg
  B                B            BB/Watch Neg


SMARTIRE SYSTEMS: Patent Infringement Suit vs. Schrader Settled
---------------------------------------------------------------
SmarTire Systems Inc. disclosed in a Securities and Exchange
Commission filing that on Aug. 21, 2008, the company and Schrader-
Bridgeport International, Inc. entered into a Confidential
Settlement and License Agreement, terminating a lawsuit between
the parties.

On Sept. 12, 2007, that company filed a complaint against Siemens
VDO Automotive Corp. and Schrader-Bridgeport in the United States
District Court for the Eastern District of Virginia alleging
infringement of its United States Patent No. 5,231,872, entitled
"Tire Monitoring Apparatus and Method."  The case was styled
SmarTire Systems, Inc. v. Siemens VDO Automotive Corp., Schrader-
Bridgeport International, Inc. and Schrader Electronics Ltd.,
Civil Action No. 1:07cv932 (E.D. Virginia).

In a stipulated judgment that was entered by the district court on
Aug. 26, 2008, Schrader also acknowledged the validity and
enforceability of the Company's United States Patent No.
5,231,872.

                     About SmarTire Systems

Headquartered in Richmond, British Columbia, Canada, SmarTire
Systems Inc. (OTC BB: SMTR) -- http://smartire.com/-- develops,
subcontracts its manufacturing, and markets tire pressure
monitoring systems (TPMSs), which monitor tire pressure and tire
temperature in a range of vehicles.  The company sells TPMSs for
trucks, buses, recreational vehicles, passenger cars and
motorcycles.  It has three wholly owned subsidiaries: SmarTire
Technologies Inc., SmarTire USA Inc. and SmarTire Europe Limited.
In Europe, SmarTire is headquartered in Oxfordshire, United
Kingdom.

SmarTire Systems Inc.'s consolidated balance sheet at April 30,
2008, showed US$3,240,386 in total assets, US$38,162,990 in total
liabilities, and US$3,565,585 in preferred shares, resulting in a
US$38,488,189 stockholders' deficit.

                       Going Concern Doubt

BDO Dunwoody LLP, in Vancouver, Canada, expressed substantial
doubt about SmarTire Systems Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the years ended July 31, 2007, and 2006.  The
auditing firm pointed to the company's accumulated deficit and
working capital deficiency.

The company has incurred recurring operating losses and as of
April 30, 2008, had an accumulated deficit of US$146,822,824 and a
working capital deficiency of US$33,864,927 of which US$33,739,519
is potentially convertible into shares of common stock of the
company, subject to certain restrictions.


TERRAPIN TECHNICAL: Claims Filing Period Ends October 16
--------------------------------------------------------
Creditors of Terrapin Technical Services Ltd. have until
Oct. 16, 2008, to send their names and addresses and particulars
of their claims to:

         David Antony Willis and Matthew Colin Bowker
         Joint Liquidators
         Tenon Recovery
         The Exchange
         Station Parade
         Harrogate
         HG1 1TS
         England

David Antony Willis and Matthew Colin Bowker of Tenon Recovery
were appointed joint liquidators of the company on Sept. 8, 2008,
for the creditors' voluntary winding-up proceeding.


* BRITAIN: FTSE 100 Index Soars 6% on U.S. Talks of Rescue Plan
---------------------------------------------------------------
A meeting among U.S. Treasury Secretary Hank Paulson, Federal
Reserve Chairman Ben Bernanke, and top lawmakers last week spurred
stock prices worldwide, The Financial Times reports.  The meeting
was intended to discuss the creation of a giant U.S. government-
sponsored vehicle to take on toxic assets in the financial system,
FT says.

In Europe, FT relates that the British provider of stock indices
FTSE 100 surged last Thursday by more than 6% as financial stocks
were also helped by the financial regulator's ban on short
selling.  In Europe, benchmark indices also soared.  The CAC-40 in
Paris jumped more than 5% and Germany's Dax rose almost 4% as
financial stocks rallied on hopes an end to the crisis was
approaching, FT reports.

Asian markets were also higher, according to the report.  Japan's
Nikkei 225 rose nearly 4% and China's Hang Seng surged 9% in late
trading.

The Federal Reserve gave central banks in Japan, the eurozone, the
UK, Switzerland and Canada US$180 billion to lend on to local
banks that cannot access its onshore dollar lending facilities, FT
notes.  The central banks, in turn, promised to take "appropriate
steps to address the ongoing problems," FT says.

An agreement under the rescue plan modeled on the Resolution Trust
Corporation, however, has to pass Congress, FT reports.
Democratic senator Charles Schumer criticized the agreement saying
the RTC was not the right model for dealing with the crisis, FT
reports.


* BRITAIN: Finance Workforce to Shrink by 2% by 2009, Poll Says
---------------------------------------------------------------
Britain will shed around 110,000 jobs in financial and business
services in the year to next April, with the newly unemployed set
for a tough search in an increasingly skewed job market, Reuters
reports.

Senior executives told pollsters commissioned by Hay Group
management consultants they expected their workforce to shrink by
almost 2% on average in 2008 to 2009, the report says.  The poll
was carried out in June, a time when the credit crunch had already
made executives pessimistic over the jobs outlook, Reuters notes.

The financial headcount in Britain will not return to current
levels until 2010 to 2011, the survey cited by Reuters showed.
Hay Group polled 40 financial services executives out of a total
120 executives in the survey.

The figures were released after Lehman Brothers Holdings Inc.
filed for bankruptcy and Bank of America's acquisition of Merrill
Lynch that would likely result in the reduction of 24,000 workers
worldwide, Reuters reports.

"The war for talent is effectively over" and there will be more
job seekers than jobs, Reuters quotes financial recruiter Robert
Thesiger as saying.

In August, new financial job vacancies in London fell 34% year-on-
year, in line with a 37% decline in the number of candidates,
Reuters relates, citing Morgan McKinley headhunters headed by Mr.
Thesiger.


* EUROPE: Banks and Insurers See US$7.3B Losses Tied to Lehman
--------------------------------------------------------------
Bloomberg News says European banks and insurers disclosed
potential losses of about US$7.3 billion tied to the collapse of
Lehman Brothers.  Bloomberg provided a table showing the bank's
exposures:

   Firm                Potential Exposure   Details
   Name                  (US$ Millions)
   ----                ------------------   -------
   Aegon NV                   <378          fixed income

   Allianz SE                  568          investment losses

   AZA SA                      426          credit risk

   Aviva Plc                   481          debt risk

   Banca Popolare              <14          securities,
   di Milano Scrl                           counterparty risk

   BNP Paribas SA              564          derivative claims,
                                            bank loan, credit

   Credit Agricole SA          385          credit, counterparty
                                            risk

   Dexia                       507          senior bonds

   Fortis                      195          bonds

   Friends Provident Plc        32          senior debt

   Hannover RE                  33          bonds, shares

   ING Groep NV                285          loan, bond exposure

   Intesa Sanpaolo SpA         370          loans, bonds

   KBC Group NV                399          bonds, loans

   KfW Group           "mid three-digit     securities, foreign
                       million euros"       exchange swaps

   Lloyds TSB                   75          letter of credit
   Group Plc

   Munich Re                   499          investments,
                                            counterparty deals,
                                            derivatives

   Natixis SA                  535          off-balance sheet
                                            instruments, swaps,
                                            collateralized loans
                                            of securities

   Old Mutual Plc               56          debt, derivatives

   Societe Generale SA         678          market activities,
                                            senior debt

   Scor SE                      50          senior notes

   Svenska                      91          letters of credit,
   Handelsbanken AB                         securities lending,
                                            derivatives

   Swedbank AB                  30          derivatives, bonds

   Swiss Life Holding           18          corporate bonds

   Swiss Reinsurance Co.        45          investments, net
                                            purchases of credit
                                            default swaps, and
                                            other counterparty

   Unione di Banche             37          bonds, loans,
   Italiane Scpa                            derivatives

   UBS AG                     <300          direct and
                                            counterparty

   Zurich Financial            250          senior unsecured
   Services AG


           Dexia Sees EUR350 Mil. Lehman-Related Losses


Dexia SA expects its Lehman-related losses to be around
EUR350 million, resulting from:

  -- Risk Exposure on Lehman:

     a. EUR500 million senior bond exposure on Lehman Brothers
        Holdings Inc., with final economic loss depending on
        Lehman's liquidating conditions (this amount includes
        the only direct bond exposure of FSA, Dexia's credit
        enhancement subsidiary, of US$6.5 million in its
        investment portfolio).

     b. No bank loans or letters of credit on Lehman Brothers
        Group.

   -- Unwinding of collateralized transactions:

     a. Repo arrangements with Lehman, over-collateralized with
        good-quality underlying assets, have been unwound and
        Dexia has therefore no residual exposure on Lehman.

        Dexia expects to realize no, or no material, losses as
        a result of liquidating its positions.

     b. Dexia holds a portfolio of good-quality assets (super-
        AAA) as part of a transaction where Lehman had provided
        protection backed by cash collateral deposited with
        Dexia (Negative Basis Trade).

        Dexia says the unwinding of this trade is expected to
        result in no, or no material, losses for the company.

     c. The replacement value of derivative contracts entered
        into with Lehman is estimated to be about EUR40 million
        to EUR60 million.

Dexia SA, formerly Artesia Banking Corporation SA, --
http://www.dexia.com/-- is a Belgian bank specialized in retail
banking and local public finance.  The Bank offers a range of
banking services for individual customers, small and medium-sized
enterprises and institutional clients.  It has four divisions:
Asset Management, Personal Financial Services, Treasury and
Financial Markets, and Investor Services.  Through its
subsidiaries, Dexia SA is active in over 30 countries, including
Belgium, Luxembourg, Slovakia, Turkey, Australia and Japan.


* EUROPE: Spreads on Credit Default Swaps Hit Stressed Levels
-------------------------------------------------------------
Financial institutions like Goldman Sachs and Morgan Stanley in
the U.S. and HBOS in Europe saw spreads on credit default swaps
hit stressed levels last week, The Financial Times reports.
Spreads on credit default swaps, which provide a kind of insurance
against non-payment of debt, set fresh records Sept. 16 putting
banks and insurers at the center of the turmoil, FT says.

FT observes that the collapse of Lehman Brothers has undermined
the "too-big-to-fail" concept.  FT recalls the Federal Reserve's
rescue of Bear Stearns in March 2008.  The report also notes
American International Group's looming default, which is expected
to have massive knock-on effects on financial institutions.

Markit Group, which runs the U.S. CDX indices, saw enough
indicative quotes to provide intra-day spreads from about 6:30
a.m., on Sept. 16, according to the report.  The spread was 23
basis points greater at 217.5bp, surpassing the record levels hit
ahead of the Bear rescue.  By lunchtime, when hopes were raised
for an AIG bail-out, the index had tightened back to 201bp, FT
relates.  The index means that it costs US$201,000 annually to
insure US$10 million of corporate debt in the index over five
years.

In Europe the iTraxx Crossover list of junk-rated names matched
mid-March highs of 640bp, having opened at about 600bp and went up
to 624bp by the end of the day, FT  reports.  Based on the report,
the main iTraxx Europe index of investment-grade corporate debt
was quoted as wide as 156bp.

Goldman Sachs CDS hit 570bp and Morgan Stanley hit 841bp, FT
notes.  Bears Stearns CDS spreads closed at a record wide of 737bp
on March 14 before the JPMorgan takeover, FT reckons.

In Europe, HBOS saw the biggest move in the index, mimicking the
drop in its share price, the report says.  Its cost of protection
soared to more than 500bp having closed at 311bp.

Early last week, the Markit Group said dealers decided to delay
the upcoming six-monthly index changes by one week, FT notes.  The
delay illustrated the extent of the volatility and trading chaos
in the markets, FT says.

However, the report says that traders felt the system was holding
up well under the pressure and liquidity is strong, particularly
compared with last summer when the crunch first hit.  This is
partly because banks are now generally holding less risk, FT
reports, citing Nishul Saperia of Markit Group.


* UK Retail Sales Volume Rise 1.2% in August, ONS Survey Says
-------------------------------------------------------------
Moderate underlying growth in retail sales volume continues,
driven by strength in clothing and footwear stores, according to
data from the Office of National Statistics.

Between August and July, total sales volume rose by 1.2 per cent.
The overall monthly growth was driven by textile, clothing and
footwear stores where sales rose by 4.1 per cent. Sales volume in
predominantly food stores fell by 0.2 per cent. Sales volume for
predominantly non-food stores rose by 2.1 per cent.  Sales volume
for the non-store retailing and repair sector rose by 2.4 per
cent.

Sales volume in the three months June to August fell by
0.8 per cent compared with the previous three months.  However, on
this occasion ONS advises caution in the interpretation of this
measure, because of the record increase in the May 2008 index,
which significantly affects this estimate this month.
Supplementary analysis provided with this release provides more
information on the recent trend in underlying sales volume.

Total sales volume in the three months to August was
2.5 per cent higher than the same period a year ago.  Sales for
predominantly food stores rose by 0.6 per cent.  Sales volume for
predominantly non-food stores rose by 2.9 per cent.  Sales for the
non-store retailing and repair sector increased by 11.0 per cent.

The non-seasonally adjusted value of retail sales for the three
months to August was 3.7 per cent higher than in the same period a
year earlier.  The average weekly value of sales in August was
GBP5.1 billion, 3.9 per cent higher than in August 2007.  Sales by
predominantly food stores rose by 5.5 per cent over the year. In
the predominantly non-food stores sales rose by 2.2 per cent.
Within the non-store retailing and repair sector sales increased
by 6.5 per cent.

The Office for National Statistics is the executive office of the
UK Statistics Authority, a non-ministerial department which
reports directly to Parliament.  ONS is the UK Government's single
largest statistical producer.


* Fitch Says Default in Loans Securing European CMBS is Mounting
----------------------------------------------------------------
Fitch Ratings says in a report that the number of loans securing
European commercial mortgage-backed securities in default is
rising.

Although the majority of recent rating actions have been
affirmations, there were 31 downgrades between Jan. 1, 2008 and
Sept. 1, 2008, compared to only 10 downgrades throughout 2007.
Currently, there are 42 tranches on Rating Watch Negative; 23 of
which were caused by underperformance of the underlying loans and
19 due to downgrades of, or RWN on, transaction counterparties
such as hedge providers (Lehman Brothers) and sole tenants (HBOS).

"The number of individual cases of loan problems is limited, but
has risen significantly in recent months," comments Mario Schmidt,
Associate Director in Fitch's European CMBS group.

"Loan and inter-creditor agreements are going to be tested for the
first time as loans have entered special servicing and their
security may be enforced.  In addition, valuers of commercial real
estate will find their work put to the test in forced or private
sales, which may explain a certain degree of conservatism of
valuers when conducting updated valuations for assets securing
distressed loans," adds Mr. Schmidt.


* Fitch Puts 18 Tranches in Six European CMBS Under Negative Watch
------------------------------------------------------------------
Fitch Ratings has placed 18 tranches in 6 European CMBS
transactions on Rating Watch Negative, following this week's
downgrade of Lehman Brothers Holdings Inc. to 'D'.  Subsidiaries
of LBHI act as hedge counterparties in various Fitch-rated
European CMBS transactions as detailed in Fitch's comment of
Sept. 16, 'Fitch Assessing Lehman Counterparty Exposure in 9
European CMBS Transactions'.  This action reflects the risk that
LBHI's subsidiaries will be unable to meet their obligations under
various hedge contracts, leaving the issuers with increased
exposure to risks related to interest rates and, for one issuer,
also currency exchange.

The issuers listed below had benefited from the terms of the
relevant hedge contracts; consequently, removal of this benefit
would place a strain on their ability to meet obligations under
the referenced notes.  The magnitude of this effect will differ
between issuers, depending on various factors such as the
availability of excess spread, the remaining life of the notes,
the timing of any action and the terms of the existing hedging
contracts.  Fitch has taken these factors into consideration in
identifying the tranches that could be affected as a result of the
bankruptcy of LBHI.

These tranches have been placed on RWN:

Paris Prime Commercial Real Estate FCC
  -- EUR33.6 million Class C (FR0010382325) due 2014 rated 'A'
     placed on RWN

  -- EUR31.5 million Class D (FR0010382333) due 2014 rated 'BBB'
     placed on RWN

  -- EUR8.8 million Class E (FR0010382341) due 2014 rated 'BBB-'
     placed on RWN

Windermere VIII CMBS Plc
  -- GBP49.8 million Class B (XS0261299746) due 2015 rated 'AA'
     placed on RWN

  -- GBP50.2 million Class C (XS0261300692) due 2015 rated 'A'
     placed on RWN

  -- GBP43.7 million Class D (XS0261300932) due 2015 rated 'BBB'
     placed on RWN

  -- GBP19.7 million Class E (XS0261301310) due 2015 rated 'BB'
     placed on RWN

Windermere IX CMBS (Multifamily)
  -- EUR121.3 million Class C (XS0275108099) due 2016 rated 'A'
     placed on RWN

Windermere X CMBS Ltd
  -- EUR109.2 million Class D (XS0293898457) due 2019 rated 'A'
     placed on RWN

  -- EUR7.7 million Class E (XS0293898887) due 2019 rated 'BBB'
     placed on RWN

  -- EUR14.0 million Class F (XS0293899265) due 2019 rated 'BB'
     placed on RWN

Windermere XI CMBS Plc
  -- GBP41.8 million Class C (XS0311592538) due 2017 rated 'A'
     placed on RWN

  -- GBP31.4 million Class D (XS0311592967) due 2017 rated 'BBB'
     placed on RWN

  -- GBP7.5 million Class E (XS0311590839) due 2017 rated 'BB'
     placed on RWN

Windermere XIV CMBS Ltd
  -- EUR75.7 million Class C (XS0330752949) due 2018 rated 'A'
     placed on RWN

  -- EUR32.0 million Class D (XS0330753244) due 2018 rated 'A'
     placed on RWN

  -- EUR42.6 million Class E (XS0330753590) due 2018 rated 'BBB'
     placed on RWN

  -- EUR20.7 million Class F (XS0330753673) due 2018 rated 'BBB'
     placed on RWN

The LBHI subsidiaries also act as counterparties to certain
underlying borrowers within European CMBS transactions.  Although
borrower-level hedge terminations may depress debt service
coverage ratios, this is unlikely to have a significant impact on
the key determinant of credit quality, balloon repayment risk.

Fitch intends to update the RWN actions as more information
surrounding events at LBHI and its subsidiaries becomes available,
and as the status of the issuers' hedging arrangements evolves.


                            *********

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
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *