TCREUR_Public/080929.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Monday, September 29, 2008, Vol. 9, No. 193

                            Headlines

A U S T R I A

ELEKTRO LANZ: Claims Registration Period Ends October 15
HORVAT KROATISCHE: Claims Registration Period Ends October 14
RIZVIC KEG: Claims Registration Period Ends October 20
SOLKAV ENERGIE: Claims Registration Period Ends October 14
TREND REISEN: Claims Registration Period Ends October 10


C Z E C H   R E P U B L I C

KARLOVARSKY PORCELAN: Undergoes Insolvency Proceedings


F R A N C E

DELPHI CORP: Gets Green Light to Halt Pension Contributions
MATUSSIER ET FOREST: Goes Into Liquidation, Halts Production


G E R M A N Y

A + B LOGISTIK: Claims Registration Period Ends October 6
AGSIST GMBH: Claims Registration Period Ends October 6
ALKORIA DV: Claims Registration Period Ends October 6
LINDENAU-WERFT: Declares Insolvency; Hit by Cash Crunch
SEGMENT GMBH: Creditors' Meeting Slated for October 1

SOLAR-DIRECT GMBH: Claims Registration Period Ends Oct. 1


K A Z A K H S T A N

PEREKRESTOK ZS: Claims Registration Ends November 12
SAER KERAMIKA: Creditors Must File Claims by November 12
SHAT LLP: Claims Deadline Slated for November 4
SHYN STROY: Claims Filing Period Ends November 11
TSEMENT STROY: Creditors' Claims Due on November 11

UNITED UNIVERSAL: Claims Registration Ends November 12


K Y R G Y Z S T A N

BUILDING MATERIALS: Creditors Must File Claims by November 3


N O R W A Y

MPF CORP: Files for Bankruptcy in Texas and Bermuda
MPF CORP: Case Summary & 20 Largest Unsecured Creditors


R U S S I A

BARNAULSKIY FOUNDRY: Creditor Must File Claims by October 11
DAURSKAYA MINING: Names Ye. Rumyantsev as Insolvency Manager
EVROMET LLC: Creditors Must File Claims by October 11
FSUE MICHURINSKIY: Creditors Must File Claims by November 11
GRYAZINSKIY GAS-FITTING: Creditors Must File Claims by Nov. 11

NORTH-WEST OAO: Fitch Holds 'BB-' Long-Term Issuer Default Rating
PACKER OJSC: Creditor Must File Claims by November 11
RUSSIA'S HOUSING: Fitch Affirms Individual Rating at 'D/E'
SAPROTEK LLC: Creditors Must File Claims by October 11
RENAISSANCE CAPITAL: Moody's Puts Ba3 CIR for Possible Downgrade

TATTELECOM OJSC: Fitch Holds ID Ratings; Changes Outlook to Stable
TOPAZ OJSC: Creditor Must File Claims by October 11
VEK STROY: Krasnodar Bankruptcy Hearing Set December 1
YARANSKIY MECHANICAL: Kirov Bankruptcy Hearing Set December 17

* BALASHIKTA CITY: S&P Affirms 'B' Long-Term Issuer Credit Rating


S P A I N

FTPYME BANCAJA 6: S&P Places BB-Rated Class C Notes on Neg. Watch


S W E D E N

CRYSTAL RESEARCH: Files for Bankruptcy


S W I T Z E R L A N D

GENERAL MOTORS: Delphi Wants to Shift US$3.4BB in Pension Debts
GENERAL MOTORS: May Lack Cash, Hires Outsider to Help Cut Costs
SHUNLI LLC: Creditors' Proofs of Claim Due by Oct. 8
TRUMA JSC: Oct. 8 Set as Deadline to File Proofs of Claim


T U R K E Y

CLAIRE'S STORES: Posts US$16.9 Mil. Net Loss in Qtr. Ended Aug. 2
IZMIT SU: Fitch Affirms 'B' Foreign & Local Currency Ratings
KENT KONUT: Fitch Affirms Foreign & Local Currency Ratings at 'B'


U K R A I N E

ARHIN-BUILDING LLC: Creditors Must File Claims by October 2
ENERGYEXPORT-1 LLC: Creditors Must File Claims by October 1
IMHOTEN LLC: Creditors Must File Claims by October 2
NIKOLAYEV MANUFACTURES: Creditors Must File Claims by October 2
RADIANSKA DONETCHTCHINA: Creditors Must File Claims by October 2

REPAIR-BUILDING MANAGEMENT: Creditors Must File Claims by Oct. 2
SPORT MEDIA: Creditors Must File Claims by October 2
VEAG LLC: Creditors Must File Claims by October 1
VOLOCHYSK-SUGAR: Creditors Must File Claims by October 2
YARMOLINTSY BREADRECEIVING: Creditors Must File Claims by Oct. 2

* Fitch Changes Outlooks on Nine Ukrainian Banks to Negative
* UKRAINE: Fitch Holds BB- Foreign & Local Issuer Default Ratings


U N I T E D   K I N G D O M

AKUBIO LTD: Claims Filing Period Ends October 24
AMERICAN INT'L: SEC Subpoenas Funds on Share Manipulation
BRITISH ENERGY: Moody's Places Ba2 CFR for Possible Upgrade
BRITISH ENERGY: S&P Puts BB Corporate Credit Rating on WatchPos
CONGREGATIONAL & GENERAL: S&P Holds Negative Watch on 'BB+' Rating

GALFEN LTD: Brings in Liquidators from Tenon Recovery
HOME BUYER: Calls in Liquidators from Tenon Recovery
LEHMAN: Gives Update on Position with Various Clearing Houses
LEHMAN BROTHERS: Gives Update on Unsettled OTC Cash Trades
O. Z REALISATIONS: Appoints Liquidators from Ernst & Young

PROTEA PRODUCTS: Joint Liquidators Take Over Operations
PURE FLIGHTS: Taps Liquidators from PricewaterhouseCoopers
WATSON NORIE: Brings in Joint Administrators from PwC
WILLIS GAMBIER: Goes Into Administration; PwC Appointed

* Construction Sector Has Highest Default Risk in the UK, S&P Says
* S&P Cuts Ratings on Various European Synthetic CDO Transactions
* S&P Sees Bleak Outlook for Euro Sovereign Ratings in 2008/2009
* Sovereign Credit Ratings for Emerging Markets Peaking, S&P Says
* S&P Eyes Widening Credit Gap Between European Consumer Goods Biz

* BOND PRICING: For the Week Sept. 22 to Sept. 26, 2008


                         *********


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


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

         Dr. Georg Freimueller
         Alser Strasse 21
         1080 Wien
         Austria
         Tel: 01/406 05 51-Serie
         Fax: 01/406 96 01
         E-mail: kanzlei@jus.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Oct. 29, 2008, for the
examination of claims at:

         The Land Court of Korneuburg
         Room 204
         2nd Floor
         Korneuburg
         Austria

Headquartered in Lassee, Austria, the Debtor declared bankruptcy
on Sept. 3, 2008, (Bankr. Case No. 36 S 101/08g).


HORVAT KROATISCHE: Claims Registration Period Ends October 14
-------------------------------------------------------------
Creditors owed money by LLC Horvat Kroatische Immobilien have
until Oct. 14, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Wolfgang Gerhard Zorn
         Plankengasse 6/15a
         1010 Vienna
         Austria
         Tel: 512 77 88
         Fax: 512 77 88 20
         E-mail: office@zorn-law.eu

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 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. 28, 2008, (Bankr. Case No. 4 S 124/08z).


RIZVIC KEG: Claims Registration Period Ends October 20
------------------------------------------------------
Creditors owed money by KEG Rizvic have until Oct. 20, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Mag. German Storch
         Buergerstrasse 62
         4020 Linz
         Austria
         Tel: 0732/66 18 61
         Fax: 0732/661861-19
         E-mail: storch@storch-ra.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Nov. 3, 2008, for the
examination of claims at:

         The Land Court of Linz
         Room 522
         5th Floor
         Linz
         Austria

Headquartered in Haid bei Ansfelden, Austria, the Debtor declared
bankruptcy on Aug. 27, 2008, (Bankr. Case No. 12 S 72/08p).


SOLKAV ENERGIE: Claims Registration Period Ends October 14
----------------------------------------------------------
Creditors owed money by LLC Solkav Energie Systeme have until
Oct. 14, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Hans-Joerg Haftner
         Wiener Strasse 12
         3100 St. Poelten
         Austria
         Tel: 02742/35 42 34
         Fax: 02742/351448
         E-mail: office@plusjus.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on Nov. 4, 2008, for the
examination of claims at:

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

Headquartered in Wilhelmsburg, Austria, the Debtor declared
bankruptcy on Sept. 2, 2008, (Bankr. Case No. 14 S 131/08t).


TREND REISEN: Claims Registration Period Ends October 10
--------------------------------------------------------
Creditors owed money by LLC Trend Reisen have until Oct. 10, 2008,
to file written proofs of claim to the court-appointed estate
administrator:

         Mag. Volker
         KEG Flick Bartl und Partner Rechtsanwalt
         Hauptplatz 3
         8010 Graz
         Austria
         Tel: 0316/837517
         Fax: 0316/837517-20
         E-mail: kanzlei@bartl-partner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 3:10 p.m. on Oct. 23, 2008, for the
examination of claims at:

         The Graz Land Court
         Hall L
         Room 230
         Second Floor
         Graz
         Austria

Headquartered in Graz, Austria, the Debtor declared bankruptcy on
Sept. 2, 2008, (Bankr. Case No. 25 S 74/08g).


===========================
C Z E C H   R E P U B L I C
===========================


KARLOVARSKY PORCELAN: Undergoes Insolvency Proceedings
------------------------------------------------------
Czech china maker Karlovarsky porcelan, a unit of Porcela Plus, is
undergoing insolvency proceedings, CTK reports, citing data from
the Insolvency Register.

According to the report, KP is unable to pay its debts of more
than CZK600 million, CZK56.7 million of which are more than three
months overdue.

KP owes around CZK194 million to suppliers, while its bank loans
stood at about CZK415.4 million, the report discloses.

"The situation is still developing, so we cannot say whether KP
will end in bankruptcy, or not," group spokesman Karel Samec told
CTK Tuesday last week.

KP, which employs around 1,800 staff, has total assets of around
CZK795 million.  In 2007, the company reduced its loss from the
previous year by about CZK60 million to CZK82 million.  Its
revenues increased by 2.5% to about CZK948 million, the report
relates.


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


DELPHI CORP: Gets Green Light to Halt Pension Contributions
-----------------------------------------------------------
David McLaughlin at Dow Jones Newswires reports that the
Hon. Robert Drain U.S. Bankruptcy Court for the Southern District
of New York granted Delphi Corp. permission on Tuesday to freeze
contributions to pension plans for hourly and salaried workers,
despite an objection by the Committee of Unsecured Creditors.

Dow Jones relates that Delphi will freeze the pension plan for
salaried workers on Sept. 30,2008.  Delphi, says Dow Jones, will
freeze the pension plan for hourly workers as soon as an agreement
can be reached with labor unions.

Delphi said that it will save US$4 million per quarter by freezing
the pension plan for hourly workers and US$26 million per quarter
by freezing the plan for salaried workers, Dow Jones states.
Christopher Scinta at Bloomberg News reports that court documents
indicate that each month the hourly pension plan costs Delphi
about US$1 million.

Delphi will provide workers with replacement plans based on
defined contributions by the company, Dow Jones says.

According to Dow Jones, Robert Rosenberg, an attorney for the
creditors committee, said that the plan for top executives should
be approved as part of Delphi's bankruptcy plan.  "Of all the
times to lock in a new program given what's going on in the auto
industry and the capital markets with no knowledge of what reality
is going to look like tomorrow let alone in a year, the timing is
just not appropriate," Dow Jones quoted Mr. Rosenberg as saying.

"It would be patently unreasonable" to create replacement plans
for everyone except 460 top executives, Bloomberg says, citing
Delphi attorney John W. Butler Jr., Esq.

Delphi will also ask the Court to shift US$3.4 billion in pension
liabilities to General Motors Corp., Dow Jones says.  Bloomberg
relates that the creditors committee is also opposing revised
agreements that increase the financial contributions GM will make
to Delphi as part of its reorganization to US$10.6 billion from
US$6 billion.  Attorneys from Latham & Watkins representing the
creditors said in a court filing that Delphi will "give away
control over the Chapter 11 plan process to GM" in exchange for
financing.

Bloomberg reports that the Court must approve the changes by the
end of September if GM is to take on US$3.4 billion of Delphi's
pension liabilities to block the federal Pension Benefit Guaranty
Corp. from putting a lien on Delphi's foreign assets.

The Court will hold a hearing amending the GM agreements until
Sept. 25, Bloomberg states.

                   About General Motors

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

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

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

                      About Delphi Corp.

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

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

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

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


MATUSSIER ET FOREST: Goes Into Liquidation, Halts Production
------------------------------------------------------------
The Grenoble Commercial Court, on Tuesday, Sept. 23, 2008, imposed
a liquidation order on French paper manufacturer Matussier et
Forest, EUWID reports.  The liquidation process is to take effect
immediately.

A spokesperson for the company, which halted its entire production
on Sept. 16, 2008, told EUWID that AVP and Meylan 70 will not be
affected by the liquidation.

AVP is responsible for recovered paper procurement, while Meylan
70 handles administrative functions.


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


A + B LOGISTIK: Claims Registration Period Ends October 6
---------------------------------------------------------
Creditors of A + B Logistik GmbH have until Oct. 6, 2008, to
register their claims with court-appointed insolvency manager
Ruediger Bauch.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 5, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Hall 24
         Fuerstenstrasse 21-23
         09130 Chemnitz
         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:

         Ruediger Bauch
         Promenadenstrasse 3
         09111 Chemnitz
         Germany
         Tel: (0371) 38 23 70
         Fax: (0371) 38 23 710
         E-mail: RBauch@schubra.de

The District Court of Chemnitz opened bankruptcy proceedings
against A + B Logistik GmbH on Sept. 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         A + B Logistik GmbH
         Wachbergstrasse 5
         08280 Aue/Alberoda
         Germany


AGSIST GMBH: Claims Registration Period Ends October 6
------------------------------------------------------
Creditors of AgSiSt GmbH have until Oct. 6, 2008, to register
their claims with court-appointed insolvency manager Christian
Hafften.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 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 Schwerin
         Hall 7
         Demmlerplatz 14
         19053 Schwerin
         Germany

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

The insolvency manager can be reached at:

         Christian Hafften
         Alexandrinenstr. 17
         19055 Schwerin
         Germany

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

The Debtor can be reached at:

         AgSiSt GmbH
         Attn: Wilfried Hoehn, Manager
         Wismarsche Strasse 302
         19055 Schwerin
         Germany


ALKORIA DV: Claims Registration Period Ends October 6
-----------------------------------------------------
Creditors of ALKoRIA DV- und  Informationsberatung GmbH have until
Oct. 6, 2008, to register their claims with court-appointed
insolvency manager Gerhard Tonhauser.

Creditors and other interested parties are encouraged to attend
the meeting at 10:45 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 Heilbronn
         Hall 4
         Rollwagstr. 10a
         74072 Heilbronn
         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:

         Gerhard Tonhauser
         Moltkestrasse 40
         74072 Heilbronn
         Germany
         Tel: 07131/60990
         Fax: 07131/609961

The District Court of Heilbronn opened bankruptcy proceedings
against ALKoRIA DV- und  Informationsberatung GmbH on Sept. 1,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         ALKoRIA DV- und  Informationsberatung GmbH
         Attn: Bernhard Alber, Manager
         Eichenweg 14
         74376 Gemmrigheim
         Germany


LINDENAU-WERFT: Declares Insolvency; Hit by Cash Crunch
-------------------------------------------------------
Kiel, Germany-based shipbuilder Lindenau-Werft has declared
insolvency after talks with the IG-Metall union, banks and
government officials aimed at getting the yard out of a cash
crunch broke down, Marine Log reports.  Jan H. Wilhelm of HWW
Wienberg Wilhelm has been appointed insolvency administrator.

According to the report, the yard, which has an order book worth
EUR225 million and no debt, failed to raise about EUR9 million of
short-term financing, threatening its ability to complete
a double-hull tanker currently under construction for long-time
customer German Tanker Shipping of Bremen.

Kiel IG-Metal chief Wolfgang Madel however thinks the yard can be
brought out of insolvency through the creation of a new GmbH
limited company structure, adding the yard's payroll would be met
through the end of November under the insolvency process, the
report discloses.

Schleswig-Holstein's Economics Minister Werner Marnette, on the
other hand, declared and promised the full support of the state
government for the yard, although EU competition rules will
severely restrict what he can do, the report notes.

Meanwhile, Dieter Gorlitz, a retired former member of the Board of
HDW Kiel, will be looking at restructuring production at the yard,
the report relates.


SEGMENT GMBH: Creditors' Meeting Slated for October 1
-----------------------------------------------------
The court-appointed insolvency manager for SEGMENT GmbH & Co.
Hermannstrasse KG, Udo Feser will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 9:10
a.m. on Oct. 1, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 9:00 a.m. on Jan. 7, 2009, at the same venue.

Creditors have until Oct. 30, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Udo Feser
         Uhlandstr. 165/166
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against  SEGMENT GmbH & Co. Hermannstrasse KG on Aug. 20, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         SEGMENT GmbH & Co. Hermannstrasse KG
         Uhlandstr. 7-8
         10623 Berlin
         Germany


SOLAR-DIRECT GMBH: Claims Registration Period Ends Oct. 1
---------------------------------------------------------
Creditors of solar-direct GmbH have until Oct. 1, 2008, to
register their claims with court-appointed insolvency manager
Dr. Helmut Eisner.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Oct. 23, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Crailsheim
         Hall 113
         First Floor
         Schillerstrasse 1
         74564 Crailsheim
         Germany

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

The insolvency manager can be reached at:

         Dr. Helmut Eisner
         Josef-Schmitt-Str.10
         97922 Lauda-Koenigshofen
         Germany
         Tel: 09343/2065
         Fax: 09343/3833

The District Court of Crailsheim opened bankruptcy proceedings
against solar-direct GmbH on Sept. 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         solar-direct GmbH
         Attn: Michael Bareither, Manager
         Bahnhof 5-7
         97990 Weikersheim
         Germany


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


PEREKRESTOK ZS: Claims Registration Ends November 12
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Perekrestok ZS insolvent.

Creditors have until Nov. 12, 2008, Creditors have until

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


SAER KERAMIKA: Creditors Must File Claims by November 12
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP Saer Keramika insolvent.

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

         The Specialized Inter-Regional
         Economic Court of Kyzylorda
         Jahayev Str. 71
         Kyzylorda
         Kazakhstan
         Tel: 8 (72422) 24-98-56


SHAT LLP: Claims Deadline Slated for November 4
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau region has
declared LLP Shat insolvent.

Creditors have until Nov. 4, 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


SHYN STROY: Claims Filing Period Ends November 11
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Akmola has
declared LLP Construction Company Shyn Stroy 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


TSEMENT STROY: Creditors' Claims Due on November 11
---------------------------------------------------
LLP Construction Company Tsement Stroy Project has declared
liquidation.  Creditors have until Nov. 11, 2008, to submit
written proofs of claims to:

         LLP Construction Company Tsement Stroy Project
         Suyunbai ave. 2
         Almaty
         Kazakhstan


UNITED UNIVERSAL: Claims Registration Ends November 12
------------------------------------------------------
The Tax Committee of Almaty has ordered the compulsory liquidation
of LLP Holding Company United Universal Holding.

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

         The Tax Committee of Almaty
         Office 307
         Tole bi Str. 295
         Almaty
         Kazakhstan
         Tel: 8 (7272) 44-54-96
              8 (7272) 27-31-15


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


BUILDING MATERIALS: Creditors Must File Claims by November 3
------------------------------------------------------------
LLC Building Materials Company has shut down.  Creditors have
until Nov. 3, 2008, to submit written proofs of claim to:

         LLC Building Materials Company
         Tolstoi Str. 17a-15
         Bishkek
         Kyrgyzstan


===========
N O R W A Y
===========


MPF CORP: Files for Bankruptcy in Texas and Bermuda
---------------------------------------------------
The Board of Directors of MPF Corp. filed a voluntary petition
under Chapter 11 of the United States Bankruptcy Code in the
United States Bankruptcy Court for the Southern District of Texas
and provisional liquidation in Bermuda.

According to the board, substantial cost overruns to complete
the MPF 01 Project were identified in June 2008.  Together with
its advisors and the bondholders, the board has been running a
process to sell or refinance the project.  The company's
bondholders will continue to fund the project at present.

A sale and refinancing process have not resulted in any firm
offers from potential buyers and the company has exhausted its
financial resources.

The company stated that the objectives for the filing is to create
a framework to achieve the orderly sale of its assets and protect
the interests of its creditors.  Efforts to sell the project
including the equipment contracts continue, the company noted.

The company listed assets and debts of between US$100 million and
US$500 million in its filing.  The company, Bloomberg says, owes
US$156.5 million to unsecured creditors, including Norsk
Tillitsmann ASA, which is owed US$75 million for bond debt; Aker
Kvaerner Mh AS, US$21 million for trade debt; and Dragados
Offshore SA, US$16 million for trade debt.

The company's consolidated balance sheets at June 30, 2008, showed
total assets of US$466.32 million and total debts of US$399.52
million resulting in a US$66.80 million stockholders' equity.
Furthermore, the company reported a US$8.57 million net loss on
total revenue of US$0.33 million for the quarter ended June 30,
2008, compared with a US$0.76 million net loss on total revenue of
US$0.30 million for the same period as year ago.

"[It] has incurred significant operating losses and cash outflows
and has a negative working capital as at June 30, 2008," the
company stated in its website.  "[Its] available cash and cash
equivalents and committed sources of cash are not presently
sufficient to fund expected cash requirements through the next 12
months," the company continued.  Its ability to continue as a
going concern depends upon raising additional financing through
borrowings or equity financing.

A full-text copy of the company's consolidated balance sheets at
June 30, 2008, is available for free at:

              http://ResearchArchives.com/t/s?32cf

Headquartered in Bermuda, MPF Corp. Ltd. --
http://www.mpf-corp.com/-- engages in deep water oil and gas
exploration.  The company was established on April 25, 2006.  It
Norwegian and U.S. subsidiaries -- MPF Corp. (Norway) AS in Oslo
and MPF Operating Company LLC in Houston, Texas.


MPF CORP: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: MPF Corp. Ltd.
       Clarendon House
       2 Church Street
       Hamilton HM11
       Bermuda

Bankruptcy Case No.: 08-36086

Debtor-affiliate filing separate Chapter 11 petitions:

       Entity                                     Case No.
       ------                                     --------
MPF Holding US LLC                                 08-36084

Type of Business: The Debtors are into deep water oil and gas
                 exploration.  They were established to build
                 tools to improve oil industries develop
                 oilfields.  MPF Corp. is based in Bermuda
                 with Norwegian and U.S. subsidiaries -- MPF Corp.
                 (Norway) AS in Oslo and MPF Operating Company
                 LLC in Houston, Texas.

                 MPF Corp. shares are traded on the OTC-list in
                 Norway.

                 See: http://www.mpf-corp.com

Chapter 11 Petition Date: September 24, 2008

Court: Southern District of Texas (Houston)

Judge: Jeff Bohm

Debtor's Counsel: D. Bobbitt Noel, Jr., Esq.
                 bnoel@velaw.com
                 Vinson & Elkins LLP
                 1001 Fannin, Suite 2300
                 Houston, TX 77002
                 Tel: (713) 758-2084
                 Fax: (713) 615-5222

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

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

Debtor's 20 Largest Unsecured Creditors:

  Entity                      Nature of Claim       Claim Amount
  ------                      ---------------       ------------
Norsk Tillitsmann ASA          Bond Debt             US$75,000,000
Postboks 1470 Vika
0116 Oslo Norway
Tel: +47 22 87 94 00
Fax: +47 22 87 94 10

Aker Kvaerner Mh AS            Trade Debt            US$20,970,140
Serviceboks 413
4604 KRISTIANSAND S
Tel: +47 38 05 70 00
Fax: +47 38 05 72 50

Dragados Offshore S.A.         Trade Debt            US$15,948,440
Bajo de la Cabezuela
11510 Puerto Real (Cadiz)
Direccion Postal
Apartado 2616-1080
Cŕdiz, Spain
Tel: +34 956 470 700
Fax: +34 956 470 729

Cosco Dalian Shipyard          Trade Debt            US$13,200,000
Group Co. Ltd.
80 Zhongyuan Road, Dalian
116113 LIAONING, China
Tel: + 86 411 8712 3640
Fax: + 86 411 8760 1056

Pharmadule Emtunga AB          Trade Debt            US$11,795,446
Danvik Center 28
SE-13130
Nacka, Sweden
Tel: +46 8 58 899 800
Fax: +46 8 58 899 888

Keppel Shipyard Limited        Trade Debt            US$6,767,976
51 Pioneer Sector 1
628437 Singapore
Tel: +65 686 14141
Fax: + 65 686 17767

Hydril Company LP              Trade Debt            US$4,375,266
P.O. Box 73762
Dallas, TX 75397-3762
Tel: (281) 449-2000
Fax: (281) 985-3498

Hamworthy Gas                  Trade Debt            US$2,479,721
Solbraaveien 10
NO-1383
Asker, Norway
Tel: +47 815 48500
Fax: +47 815 48510

Parisco AS                     Trade Debt           US$2,315,958
Karenslyst Alle 12
PO Box 81
NO-0212
Oslo, Norway
Tel: +23 27 48 90
Fax: +23 27 48 90

KCA Deutag Drilling Limited    Trade Debt             US$858,889
Minto Drive
Altens Industrial Estate
Aberdeen AB12 3LW
United Kingdom
Tel: +44 (0) 1224 299 600
Fax: +44 (0) 1224 895 813

Wartsila Norway AS             Trade Debt             US$697,249
Ship Power
P.O. Box 252
5420 RUBBESTADNESET
Norway
Tel: +47 53 422 500
Fax: + 47 53 422 501

Fjord Technology AS            Trade Debt             US$520,774
P.O. Box 336
1301 SANDVIKA
Trade Debt US$520,774.76
Norway
Tel: +47 67 80 71 20
Fax: +47 67 80 71 21

Det Norske Veritas             Trade Debt             US$398,016
MSHNO080
1322 HoVIK
Norway
Tel: +47 67 57 99 00
Fax: +47 67 57 99 11

Inocean AS                     Trade Debt             US$355,511
Bryggegata 3
NO-0250 OSLO
Norway
Tel: +22 33 11 31
Fax: +22 33 11 32

L.C. Eldridge Sales Co., Inc.  Trade Debt             US$332,656
9800 Richmond Ave., Suite 325
Houston, Texas 77042
Tel: (713) 780-7200
Fax: (713) 780-9324

Mustang Engineering            Trade Debt             US$186,253
St. Andrews House, West Street
Woking Surrey
United Kingdom, GU21 6EB
Tel: +44 1483 717700
Fax: +44 1483 717701

First Commissioning Service    Trade Debt             US$169,121
Centro Comercial Vista Hermosa
11500 Elpuerto de Santa Maria,
Cadiz, Spain
Tel: +34 956 873 900
Fax: +34 956 875 420

CLH Invest AS                  Trade Debt             US$60,612
Bamseveien 3B
0774 Oslo Norway
Tel: +47 95 25 58 49

Dong Nam Precision Ind.        Trade Debt             US$52,937
Co., Inc.
1593-6 Song Jeong-Dong,
Gang Seo-Gu
Busan, Korea
Tel: +82 52 239 0300
Fax: +82 52 238 7213

Panalpina Inc.                 Trade Debt             US$39,783
19409 Kenswick Drive
Humble, Texas 77338
Tel: (281) 446-0600


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


BARNAULSKIY FOUNDRY: Creditor Must File Claims by October 11
------------------------------------------------------------
Creditors of CJSC Barnaulskiy Foundry have until Oct. 11, 2008, to
submit proofs of claims to:

         Yu. Shelyagin
         Temporary Insolvency Manager
         Post User Box 646
         656031 Barnaul
         Russia

The Arbitration Court of Altayskiy will convene at 11:15 a.m. on
Jan. 28, 2009, to hear the company's bankruptcy supervision
procedure.  The case is docketed under Case No. A03-7623/08-B.


DAURSKAYA MINING: Names Ye. Rumyantsev as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Chita appointed Ye. Rumyantsev as
Insolvency Manager for LLC Daurskaya Mining Company ( TIN
7535013957).  He can be reached at:

         Ye. Rumyantsev
         Post User Box 95
         664031 Irkutsk
         Russia

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

The Debtor can be reached at:

         LLC Daurskaya Mining Company
         Nedorezova Str. 2b
         672000 Chita
         Russia


EVROMET LLC: Creditors Must File Claims by October 11
-----------------------------------------------------
Creditors of LLC Evromet have until Oct. 11, 2008, to submit
proofs of claims to:

         O. Yudin
         Insolvency Manager
         Petropavlovskaya Str. 3
         Tambov
         Russia

The Arbitration Court of Tambov commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A64-4111/08-10.

The Court is located at:

         The Arbitration Court of Tambov
         Penzenskaya Str. 67/12
         392020 Tambov
         Russia

The Debtor can be reached at:

         LLC Evromet
         Mordovo
         Mordovskiy
         Tambovskaya
         Russia


FSUE MICHURINSKIY: Creditors Must File Claims by November 11
------------------------------------------------------------
Creditors of FSUE Michurinskiy Research and Development Plant
have until Nov. 11, 2008, to submit proofs of claims to:

         D.Kozlov
         Insolvency Manager
         Studencheskaya Naberezhnaya Str. 20
         Tambov
         Russia

The Arbitration Court of Tambov will convene at 10:00 a.m. on
Sept. 26, 2009, to hear the bankruptcy proceedings against the
company after finding it insolvent.  The case is docketed under
Case No. A64–1898/08–10.

The Court is located at:

         The Arbitration Court of Tambov
         Penzenskaya Str. 67/12
         392020 Tambov
         Russia

The Debtor can be reached at:

         FSUE Michurinskiy Research and Development Plant
         Tambovskaya Str. 270
         Michurinsk
         393760 Tambovskya
         Russia


GRYAZINSKIY GAS-FITTING: Creditors Must File Claims by Nov. 11
--------------------------------------------------------------
Creditors of LLC Gryazinskiy Gas-Fitting Machinery Plant have
until Nov. 11, 2008, to submit proofs of claims to:

         S. Lebedev
         Insolvency Manager
         Post User Box 52
         394030 Voronezh
         Russia

The Arbitration Court of Lipetskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A36–520/2008.

The Court is located at:

         The Arbitration Court of Lipetsk
         Skorokhodova Str. 2
         398019 Lipetsk
         Russia

The Debtor can be reached at:

         LLC Gryazinskiy Gas-Fitting Machinery Plant
         Gagarina Str. 1a
         Gryazi
         Lipetskaya
         Russia


NORTH-WEST OAO: Fitch Holds 'BB-' Long-Term Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed Russia-based OAO North-West Telecoms's
ratings at Long-term Issuer Default 'BB-', National Long-term
'A+(rus)' and Short-term IDR 'B'.  The Outlooks on the Long-term
IDR and National Long-term rating are Stable.

"The company's operating and financial performance remains robust.
It has maintained and increased its market shares in key segments
while the management has been able to keep a lid on leverage,"
says Nikolay Lukashevich, Senior Director with Fitch's European
TMT team.

The ratings reflect NWT's dominant position as a regional
incumbent telecoms operator, mild competitive pressures in key
segments and a diversified subscriber base that ensures cash flow
visibility and stability.  The company's position remains
particularly strong in the residential segment with a market share
of over 90%.  NWT has been able to preserve its dominance as a
lack of unbundling regulation has made alternative fixed-line
operators reluctant to invest in sizable last-mile infrastructure.
Despite increasing competition with the mobile sector, the
existing subscriber base has been stable so far, although growth
opportunities are limited in the fixed-line sector.

NWT's key medium-term growth driver will be broadband.  As the
company is a relatively late starter of this service, management
is focusing on improving market share, particularly in the City of
St.Petersburg.  NWT is putting in place more new broadband
infrastructure than all its competitors combined, in a bid to
significantly strengthen its market position.

The company's net leverage has been modest so far, with a net
debt/EBITDA of 1.2x at end-2007.  Net leverage for 2008 is
projected to peak slightly above 2x, largely due to increased
capex for the roll-out of a universal telecoms service in
remote/rural areas.  Capex is expected to decline considerably in
2009, paving the way for stronger cash flow generation and de-
leveraging flexibility.

NWT's divestment of a 15% stake in Telecominvest for RUB10.4
billion in 2007 provided ample cash to finance the 2008 capex
increase, but also served as a liquidity cushion.  A significant
amount of this cash was invested in short-term promissory notes of
Svyazbank which defaulted on some of its obligations in mid-
September 2008.  However, following the state-owned
Vnesheconombank's ('BBB+'/Stable) acquisition of the troubled
bank, Fitch is no longer concerned that NWT would incur losses on
these instruments.

In May 2008 NWT successfully placed a RUB3 billion domestic bond
with an effective maturity of two years, and also reclassified
another RUB3 billion bond into a longer-term instrument earlier in
the year, which significantly extended the average tenor of the
company's debt.  At end-H108 only 18% of NWT's debt had maturities
of less than one year, which is lower than at most of its domestic
peers and consistent with its rating.

The ratings also reflect the influence of the company's 50.8%
majority shareholder, Svyazinvest, on the decision-making process
at NWT and its potential lobbying support, although no direct cash
support is expected.


PACKER OJSC: Creditor Must File Claims by November 11
-----------------------------------------------------
Creditors of OJSC Packer (TIN 3616000589 ) have until
Nov. 11, 2008, to submit proofs of claims to:

         N.Korobkin
         Temporary Insolvency Manager
         Post User Box 15
         394005 Voronezh-5
         Russia

The Arbitration Court of Voronezh commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A14-6784/2008/36/27b.

The Court is located at:

         The Arbitration Court of Voronezh
         Sredne-Moskovskaya Str. 77
         394033 Voronezh
         Russia

The Debtor can be reached at:

         OJSC Packer
         Polevaya Str. 1a/1
         Novaya Usman
         Novousmanskiy
         396311 Voronezhskaya
         Russia


RUSSIA'S HOUSING: Fitch Affirms Individual Rating at 'D/E'
----------------------------------------------------------
Fitch Ratings has placed Russia's Housing Finance Bank's ratings
of Long-term Issuer Default 'B-', Short-term IDR 'B' and National
Long-term 'BB-(rus)' on Rating Watch Negative.  The bank's other
ratings are affirmed at Individual 'D/E', Support '5' and Support
Rating Floor 'No Floor'

The rating action reflects Fitch's concerns over the liquidity
position of Russian residential developer, OJSC PIK Group, with
whom HFB is affiliated, and whose Long-term IDR 'BB-' was recently
placed on RWN.  Although HFB's revised strategy provides for a
diversification of its business, its operations at present remain
highly dependent on those of PIK, to whom it has substantial
contingent credit risk exposure and on whom it relies to a
significant degree for funding and liquidity.  PIK's relatively
sound credit profile was a key factor in the upgrade of HFB's
Long-term IDR to 'B-' from 'CCC' in February 2008.

At the same time, Fitch notes that HFB's liquidity position has
not come under heightened pressure during the last two weeks.
HFB's domestic interbank funding is short-term, but small in
volume and broadly matched by interbank placements with the same
tenors, while issued promissory notes mature only in 2009 and
customer funding has been stable.  While PIK may seek to withdraw
some funds from HFB to support its liquidity position should
expected revenues and debt refinancing not be forthcoming on
schedule, Fitch notes that available liquidity from HFB is small
relative to PIK's upcoming debt repayments and so could not be
targeted by PIK as a primary source for these repayments.  Fitch
also notes that PIK's near-term liquidity requirements will be
covered in full if sizable cash receipts are received on time from
the City of Moscow (Long-term IDR 'BBB+'/Outlook Stable) in the
fourth quarter of 2008.

Fitch expects to resolve the RWN on HFB upon resolution of the RWN
on PIK.  However, the agency will also continue to monitor closely
the bank's liquidity position in the interim.

HFB is a Moscow-based bank ranked 158th by assets in Russia at
end-H108 and primarily focused on home loans.  Capitalization and
reported asset quality are currently adequate, but performance has
been weak, mainly due to rising operating costs.  HFB is jointly
and wholly beneficially owned by Kirill Pisarev and Yury Zhukov,
who also together control around an 80% stake in PIK.


SAPROTEK LLC: Creditors Must File Claims by October 11
------------------------------------------------------
Creditors of LLC Evromet have until Oct. 11, 2008, to submit
proofs of claims to:

         O. Yudin
         Insolvency Manager
         Petropavlovskaya Str. 3
         Tambov
         Russia

The Arbitration Court of Tambov commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. ?64-4321/08-10.

The Court is located at:

         The Arbitration Court of Tambov
         Penzenskaya Str. 67/12
         392020 Tambov
         Russia

The Debtor can be reached at:

         LLC Saprotek
         Sovetskaya Str. 68
         Zherdevka
         Tambovskaya
         Russia


RENAISSANCE CAPITAL: Moody's Puts Ba3 CIR for Possible Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed the Ba3 long-term foreign
currency and local currency issuer ratings of Renaissance Capital
Holdings Limited on review for possible downgrade.  At the same
time, Moody's Interfax Rating Agency has placed the bank's Aa3.ru
long-term national scale credit rating (NSR) on review for
possible downgrade.  Moscow-based Moody's Interfax is majority-
owned by Moody's, a leading global rating agency.

"The rating action reflects Moody's concerns that the current
market turmoil is likely to continue or even deteriorate and that
this could negatively affect the company's financial metrics and
liquidity profile," explains Vladlen Kuznetsov, AVP-Analyst at
Moody's Moscow office.  Moody's holds this view despite the recent
arrival of a strong shareholder -- namely Onexim group (Not rated)
-- which has committed USD500 million of capital and expressed the
availability of additional financing for RCHL, if needed.  (Onexim
group is active in the mining industry, innovative projects in
energy and nanotechnology, real estate and other industries, and
boasts total assets of over USD25 billion.)

In addition, Moody's also notes that the company is likely to face
a decline in earnings if the markets remain weak as the majority
of revenues is generated by trading income on equity, fixed income
and derivatives markets.  Moreover, RCHL's relatively concentrated
exposures to a few names also presents additional credit and
liquidity risks.

On the one hand, Moody's acknowledges that the entry of a cash-
rich minority shareholder (50% - 1 share) is positive for RCHL's
capitalisation, and gives the company a strong foothold in
franchise development given the current market situation when the
industry is under consolidation.  On the other hand, Moody's
remains concerned that the occurrence of major shifts in the
market and/or the possible continuation of the adverse market
situation are likely to expose the company to risks which more
than offset the benefits of having gained a new shareholder.

Moody's notes that its review for possible downgrade will be
concluded once there is more clarity over the company's position
in terms of its strength to withstand potential market stresses
and ability to continue to generate high earnings.

In October 2006, Moody's Investors Service has assigned Ba3/Not-
Prime long- and short-term foreign currency and local currency
issuer ratings to RCHL.  The outlooks for the ratings were stable.

Renaissance Capital Holdings Limited is the investment banking arm
of the Renaissance Group, which also includes consumer finance,
asset management and merchant banking.  RCHL reported total
consolidated assets of US$6.4 billion and total equity of US$917
million under IFRS as of June 30, 2008.


TATTELECOM OJSC: Fitch Holds ID Ratings; Changes Outlook to Stable
------------------------------------------------------------------
Fitch Ratings has revised OJSC Tattelecom's Outlook to Stable from
Positive.  Its ratings are affirmed at Long-term Issuer Default
'B+' and Short-term IDR 'B'.

The Outlook change reflects Fitch's view that, although Tattelecom
is expected to refinance its RUB1.5 billion bond put option
maturing in November 2008, refinancing risks are likely to remain
until the company can secure long-term funding.  Due to existing
liquidity constraints in the financial markets and expected
diminishing availability of long-term financial instruments at
least over the next 12 months, Tattelecom's debt is likely to
remain significantly biased to short maturities.

Fitch also notes that worsening market conditions may make it
difficult for Tattelecom to address debt refinancing in a timely
manner, although the agency believes the company's parent, OJSC
Svyazinvestneftekhim (rated 'BBB-', Stable Outlook), would provide
liquidity support.

Tattelecom's operational and financial performance is expected to
remain healthy over the medium term.  Its debt net of cash/EBITDA
was modest at 1.6x in 2007 and is expected by Fitch to be no more
than 2x over the medium term.  No significant increase in capital
expenditure is expected for 2008-2009.


TOPAZ OJSC: Creditor Must File Claims by October 11
---------------------------------------------------
Creditors of OJSC Topaz have until Oct. 11, 2008, to submit proofs
of claims to:

         O.Kotelnikov
         Temporary Insolvency Manager
         Office 100
         Pochainskaya Str. 17
         Nizhny Novgorod
         Russia

The Arbitration Court of Nizhegorodskaya commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A43-11314/08-18-58.

The Debtor can be reached at:

         OJSC Topaz
         Manufakturnaya Str. 18
         Nizhny Novgorod
         Russia


VEK STROY: Krasnodar Bankruptcy Hearing Set December 1
------------------------------------------------------
The Arbitration Court of Krasnodar will convene at 2:15 p.m. on
Dec. 1, 2008, to hear bankruptcy supervision procedure on LLC Vek
Stroy.  The case is docketed under Case No. A-32-14610/
2008-1/1012B.

The Temporary Insolvency Manager is:

         Ye. Bocharov
         Post User Box 2897
         350004 Krasnodar
         Russia

The Court is located at:

         The Arbitration Court of Krasnodar
         Krasnaya Str. 6
         Krasnodar
         Russia

The Debtor can be reached at:

         LLC Vek Stroy
         Sedina Str. 6
         350063 Krasnodar
         Russia


YARANSKIY MECHANICAL: Kirov Bankruptcy Hearing Set December 17
--------------------------------------------------------------
The Arbitration Court of Kirov will convene at 10:00 a.m. on
Dec. 17, 2008, to hear bankruptcy supervision procedure on LLC
Yaranskiy Machanical Plant Financial Industrial Group.  The case
is docketed under Case No. A-28-7029/2008-197/6.

The Temporary Insolvency Manager is:

         N. Petukhov
         Apt. 2
         Truda Str. 37a
         610020 Kirov
         Russia
         Tel: 8-921-724-15-71

The Debtor can be reached at:

         LLC Yaranskiy Machanical Plant Financial Industrial
         Group
         Rudnitskogo Str.52
         Yaransk
         612260 Kirovskaya
         Russia


* BALASHIKTA CITY: S&P Affirms 'B' Long-Term Issuer Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Balashikha City District to stable from positive on concerns
regarding its commitment to prioritize debt service when faced
with increased budgetary pressures and difficult credit market
conditions.  At the same time, the 'B' long-term issuer credit
rating and the 'ruA' Russia national scale rating were affirmed.

Balashikha City District is in the Moscow Oblast (BB/Stable/--;
Russia national scale 'ruAA') in The Russian Federation (foreign
currency BBB+/Stable/A-2; local currency A-/Stable/A-2; Russia
national scale 'ruAAA').

"The ratings on the city district reflect its high dependence on
decisions and financial transfers from the oblast which are
sometimes unpredictable," said S&P's credit analyst Boris
Kopeykin.  "The rating also incorporates Balashikha's exposure to
short-term debt, low revenue and expenditure flexibility, and our
concerns regarding Balashikha's debt management policies."

These constraints are, however, mitigated by the growth in the
city district's economy, boosted by its strategic location near
the City of Moscow (BBB+/Stable/--); the related budget revenue
growth; and modest borrowing plans.

Balashikha's dependence on Moscow Oblast for financial decisions
creates unpredictability in the financial framework.  The city
district covers large portions of its capital expenditures with
short-term loans, while awaiting compensatory transfers from the
oblast during the budget year.  As a result of this recourse to
short-term debt, debt service exceeds 10% of revenues.

Furthermore, oblast transfers also accounted for about 38% of
operating revenues in 2007.  This share is gradually diminishing,
as the ongoing Russian municipal reforms lead to an increase in
the city's modifiable revenues.  This evolution gives Balashikha
slightly more flexibility, but also adds unpredictability to its
revenue base, as about 15% of its revenues depend on the
construction sector.

Overall, the city's revenue and expenditure flexibility continues
to remain low and S&P expects the underfinanced burden of
delegated expenditures to continue to pressure Balashikha's
financial performance in 2008-2010.

As of Sept. 24, 2008, the city had cash reserves of approximately
5% of its expected 2008 budget revenues on its accounts, while the
total debt service payments till the end of the year, including
all guarantees, will be less than 7% of budget spending, and will
consist of budget loans and guarantees only.

"We expect that the rapid development of Balashikha's economy will
continue to support budget revenue growth above inflation levels
in 2008-2010, which will help mitigate expected expenditure
pressure," said Mr. Kopeykin.  "It also reflects our view that
debt will expand only moderately, with increased maturities, and
will remain below 30% of revenues until the end of 2010."

Future positive rating actions will depend on Balashikha's ability
to adopt a more prudent approach to debt policies, with longer
maturities and its ability to maintain structurally robust
operating surplus of about 10% of operating revenues in 2008-2010,
despite expenditure pressures.  Future upside also depends on the
city district's ability to decrease risks related to its
dependence on ad hoc oblast transfers and short-term loans.

Alternatively, the ratings could come under pressure if the city
district suffers weaker-than-expected financial performance, with
operating balances near or less than zero, or undertakes riskier
funding policy.


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


FTPYME BANCAJA 6: S&P Places BB-Rated Class C Notes on Neg. Watch
-----------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch with
negative implications its credit ratings on the class B and C
notes issued by FTPYME Bancaja 6, Fondo de Titulizacion de
Activos.  The ratings on all the other classes in this transaction
remained unchanged.

The CreditWatch placements follow an initial analysis of the
transaction's performance.  The current collateral performance has
highlighted factors that have increased the likelihood of negative
rating actions for the junior classes.

These CreditWatch placements are not related to the recent
downgrade of the originator, Caja de Ahorros de Valencia,
Castellon y Alicante, the treasury account provider and paying
agent for this transaction.  S&P will closely monitor the effect
of Bancaja's downgrade on FTPYME Bancaja 6's notes.

FTPYME Bancaja 6 closed in September 2007, and is backed by a
portfolio of Spanish small to midsize enterprise (SME) loans
originated by Bancaja.  One year after closing, 3.15% of the loans
in the outstanding pool are currently in more than 90 days in
arrears.  The current credit support provided by the cash reserve
is 3.29% of the outstanding balance of the notes.

S&P notes that the growth in arrears is exceeding the historical
experience, and believe that a continuation of this growth rate
and a sufficient rollover into default may lead to the credit
support levels being insufficient to maintain the current ratings.
Currently, the transaction has experienced no loan defaults, given
its limited seasoning.

Over half the pool is concentrated in the Valencia region, and
almost two-thirds of the loans are to entities in the real estate
and related sectors.  In the latter case, S&P observed that these
sectors are generating a higher level of arrears than their
portfolio weighting might otherwise suggest.  S&P will conduct a
deeper analysis of these trends to ascertain the ffect of the
current Spanish economic environment on these sectors in
particular and will update its credit and cash flow analyses.
This will allow us to determine whether credit enhancement levels
for the classes placed on CreditWatch are sufficient to support
the ratings at any new modeled default level.

Ratings Placed On CreditWatch Negative:

FTPYME Bancaja 6, Fondo de Titulización de Activos:

  -- EUR1.028 Billion Floating-Rate Notes

Class        Rating To        Rating From
-----        ---------        -----------
   B        A-/Watch Neg            A-
   C        BB/Watch Neg            BB


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


CRYSTAL RESEARCH: Files for Bankruptcy
--------------------------------------
Crystal Research AB, a unit of Swedish investment firm MedCap AB,
filed for bankruptcy after failing to reach agreements with
creditors, Niklas Magnusson of Bloomberg News reports.

The bankruptcy however won't affect MedCap's earnings as the value
of its investment in Crystal Research has been booked at zero
since January, the report notes.

Based in Stockholm, Crystal Research AB --
http://www.crystalresearch.se/-- provides tailor-made contract
services for outsourcing all aspects of crystal structure
determination.


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


GENERAL MOTORS: Delphi Wants to Shift US$3.4BB in Pension Debts
---------------------------------------------------------------
Delphi Corp will ask the U.S. Bankruptcy Court for the Southern
District of New York to shift US$3.4 billion in pension
liabilities to General Motors Corp., David McLaughlin at Dow Jones
Newswires reports.

According to Dow Jones, the Hon. Robert Drain U.S. Bankruptcy
Court for the Southern District of New York granted Delphi
permission on Tuesday to freeze contributions to pension plans for
hourly and salaried workers, despite an objection by the Committee
of Unsecured Creditors.

Dow Jones relates that Delphi will freeze the pension plan for
salaried workers on Sept. 30,2008.  Delphi, says Dow Jones, will
freeze the pension plan for hourly workers as soon as an agreement
can be reached with labor unions.

Delphi said that it will save US$4 million per quarter by freezing
the pension plan for hourly workers and US$26 million per quarter
by freezing the plan for salaried workers, Dow Jones states.
Christopher Scinta at Bloomberg News reports that court documents
indicate that each month the hourly pension plan costs Delphi
about US$1 million.

Delphi will provide workers with replacement plans based on
defined contributions by the company, Dow Jones says.

According to Dow Jones, Robert Rosenberg, an attorney for the
creditors committee, said that the plan for top executives should
be approved as part of Delphi's bankruptcy plan.  "Of all the
times to lock in a new program given what's going on in the auto
industry and the capital markets with no knowledge of what reality
is going to look like tomorrow let alone in a year, the timing is
just not appropriate," Dow Jones quoted Mr. Rosenberg as saying.

"It would be patently unreasonable" to create replacement plans
for everyone except 460 top executives, Bloomberg says, citing
Delphi attorney John Butler Jr.

Bloomberg relates that the creditors committee is also opposing
revised agreements that increase the financial contributions GM
will make to Delphi as part of its reorganization to US$10.6
billion from US$6 billion.  Attorneys from Latham & Watkins
representing the creditors said in a court filing that Delphi will
"give away control over the Chapter 11 plan process to GM" in
exchange for financing.

Bloomberg reports that the Court must approve the changes by the
end of September if GM is to take on US$3.4 billion of Delphi's
pension liabilities to block the federal Pension Benefit Guaranty
Corp. from putting a lien on Delphi's foreign assets.

The Court adjourned a hearing amending the GM agreements until
Sept. 25, Bloomberg states.

                   About General Motors

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

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

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

                      About Delphi Corp.

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

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

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

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


GENERAL MOTORS: May Lack Cash, Hires Outsider to Help Cut Costs
---------------------------------------------------------------
Sharon Terlep at The Wall Street Journal reports that General
Motors Corp. has hired an outside company to help find ways to
reduce spending.  GM didn't name the company.

According to WSJ, GM is accelerating its US$10 billion cost-
cutting plan.  WSJ relates that GM investors are concerned that
the company's cash is insufficient to withstand the current
downturn, sparked by the company's latest move to draw US$3.5
billion from its credit facilities.  GM's Treasurer Walter Borst
explained that GM made the move because of turmoil in financial
markets and "it seemed like a good time to take the money in house
and make sure it was available if and when we need it," WSJ says.
Mr. Borst said that GM remains on track to boost its liquidity by
US$15 billion by 2009 through cost cuts, asset sales, and by
tapping financial markets, WSJ states.

As part of plans to raise US$4 billion through asset sales, GM is
looking to sell a parts factory in Strasbourg, France, along with
GM's Hummer truck brand, WSJ says, citing Mr. Borst.  According to
the report, Mr. Borst said GM is considering to sell other assets
and will disclose plans in the fourth quarter.

WSJ reports that GM is on schedule with its plan to cut
US$1.5 billion in costs by year-end and will make further cuts
in 2008.  GM, says WSJ, has already reduced production,
suspending plans to develop a next generation of pickup truck.

                   About General Motors

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

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

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

As reported in the Troubled Company Reporter on Sept. 24, 2008,
Fitch Ratings downgraded the Issuer Default Rating of General
Motors by one notch to 'CCC' from 'B-', due to diminishing
liquidity and lack of access to capital.  In Fitch's previous
downgrade, Fitch stated that diminished capacity to refinance
short-term maturities, or Fitch projections that GM would drop
below US$15 billion in cash could be cause for further
downgrades.


SHUNLI LLC: Creditors' Proofs of Claim Due by Oct. 8
----------------------------------------------------
Creditors owed money by LLC Shunli are requested to file their
proofs of claim by Oct. 8, 2008, to:

         Guogen Tang
         Bodenacherring 35
         8303 Bassersdorf
         Switzerland

The company is currently undergoing liquidation in Bassersdorf.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 31, 2008.


TRUMA JSC: Oct. 8 Set as Deadline to File Proofs of Claim
---------------------------------------------------------
Creditors owed money by JSC Truma are requested to file their
proofs of claim by Oct. 8, 2008, to:

         JSC Grant Thornton Consulting
         Im Tiergarten 7
         8055 Zurich
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 14, 2008.


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


CLAIRE'S STORES: Posts US$16.9 Mil. Net Loss in Qtr. Ended Aug. 2
-----------------------------------------------------------------
Claire's Stores, Inc., reported its financial results for the 2008
second quarter ending August 2, 2008, posting a net loss of
US$16.93 million on net sales of US$359.97 million.  Effective
with the fiscal quarter ended May 3, 2008, the company has changed
its fiscal year naming convention to coincide with the calendar
year in which the fiscal year begins.  Accordingly, the current
fiscal quarter is referred to as the 2008 second quarter and the
comparable prior year quarter is referred to as the 2007 second
quarter.

                    Second Quarter Results

The company reported net sales of US$360.0 million for the 2008
second quarter, a 1.5% decrease from the 2007 second quarter.  The
decrease was primarily attributable to a decline in same store
sales, partially offset by the growth in its new store base and
the effect of foreign currency translation.

Consolidated same store sales declined 5.8% in the 2008 second
quarter.  A decline in average transactions per store of 12.0%,
was partially offset by a 7.5% increase in average sales per
transaction.  The increase in sales per transaction reflects the
company's strategy to increase average ticket through good, better
and best price tiering.  The decline in the number of transactions
reflects both weaker mall traffic and less reliance on low margin,
low dollar value promotional transactions.  In North America, same
store sales decreased 8.1%, with sales at Claire's stores
declining less than at Icing stores.  European same store sales
declined 1.7%.  The company computes same store sales on a local
currency basis, which eliminates any impact from changes in
foreign exchange rates.

Chief Executive Officer Gene Kahn said, "In the second quarter, we
saw an improvement in the tone of business as our comparable store
sales improved during each month of the quarter and our
merchandise margin increased.  We also successfully completed
phase one of our Pan-European Transformation project.  As a
result, we now have an integrated team managing our European
business, and a more focused North American merchandising team,
within which there are now dedicated groups responsible for each
of our Claire's and Icing brands.  We launched our Cost Savings
Initiative during the quarter and are on target to achieve our
previously announced goals of US$15 million of expense reductions
this year and an annualized amount in excess of US$40 million.

"I would also like to note, in the 14 months since the transaction
was completed, we have made significant progress in upgrading our
management team and refining our organizational structure,
creating a strong foundation to sustain us through this difficult
retail environment and positioning us to reach our performance
goals."

The gross profit percentage was flat at 49.9% for both 2008 and
2007 second quarters.  A 290 basis point increase in the
merchandise margin was offset by an equal increase in occupancy
and buying costs.  Excluding US$1.4 million of non-recurring costs
related to the PET project, gross profit percentage increased to
50.3%.

Selling, general and administrative expenses increased 7.2% to
US$132.4 million in the second quarter of Fiscal 2008 compared to
US$123.5 million in last year's comparable fiscal quarter.
Adjusting for changes in foreign exchange rates and excluding
US$2.0 million of non-recurring PET costs, US$1.7 million of
expense relating to CSI, and US$0.3 million of additional sponsor
management fees this fiscal quarter compared to the 2007 second
quarter, SG&A increased US$0.9 million or 0.7%.

Adjusted EBITDA in the 2008 second quarter was US$58.1 million
compared to US$64.3 million in the 2007 second quarter.  The
company defines Adjusted EBITDA as earnings before interest,
income taxes, depreciation and amortization, excluding the impact
of transaction related costs incurred in connection with its May
2007 acquisition and other non-recurring or non-cash expenses, and
normalizing occupancy costs for certain rent-related adjustments.

At August 2, 2008 the company's US$200 million revolving credit
facility was undrawn and fully available aside from an ongoing
US$5.9 million letter of credit in connection with the company's
self-insured workers' compensation program. Cash and cash
equivalents were US$35.2 million.

During the 2008 second quarter, cash used in operating activities
was US$12.0 million, compared with cash used in operating
activities of US$59.5 million during the 2007 second quarter.  The
change in cash used in operating activities was impacted by an
increase in operating income, due primarily to a decrease in
transaction-related costs, and a decrease in working capital,
partially offset by higher interest expense paid on the debt
incurred to fund the acquisition of the company.  Capital
expenditures during the 2008 second quarter were US$16.0 million,
of which US$9.2 million related to new store openings and
remodeling projects. Capital expenditures during the 2007 second
quarter were US$24.6 million.

As of Aug. 2, 2008, the company's balance sheet showed
US$3,342,990,000 in total assets, US$2,542,492,000 in total
liabilities and US$568,759,000 in total stockholders' equity.

A full-text copy of the company's financial statements on Form
10-Q is available for free at http://researcharchives.com/t/s?3282

                Amendment to Stock Incentive Plan

On September 9, 2008, the board of directors and stockholders of
Claire's Inc., the parent of Claire's Stores, Inc. adopted an
amendment to Parent's Amended and Restated Stock Incentive Plan to
increase the number of shares available for issuance to 8,200,000
shares.

                      About Claire's Stores

Headquartered in Pembroke Pines, Florida, Claire's Stores Inc.
(NYSE: CLE) -- http://www.clairestores.com/-- is a specialty
retailer of value-priced jewelry and accessories for girls and
young women through its two store concepts: Claire's and Icing.
While the latter operates only in North America, Claire's operates
worldwide.  As of May 3, 2008, Claire's Stores, Inc. operated
3,053 stores in North America and Europe.  Claire's Stores Inc.
also operates through its subsidiary, Claire's Nippon Co. Ltd.,
201 stores in Japan as a 50:50 joint venture with AEON Co. Ltd.
The company also franchises 169 stores in the Middle East, Turkey,
Russia, South Africa, Poland and Guatemala.

                         *     *     *

As reported in the Troubled Company Reporter on May 6, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Claire's Stores Inc. to 'B-' from 'B'.  At the same
time, S&P lowered the ratings on the company's US$1.65 billion
senior secured credit facilities to 'B' from 'B+', its
US$600 million senior unsecured notes to 'CCC+' from 'B-', and its
US$335 million senior subordinated notes to 'CCC' from 'CCC+'.
The outlook is negative.

The TCR reported on July 29, 2008, that Moody's Investors Service
downgraded Claire's Stores, Inc.'s, ratings, including its
probability of default rating to Caa1 from B3 and speculative
grade liquidity rating to SGL-4 from SGL-3.  In addition, Claire's
long term ratings were placed on review for further possible
downgrade.  The downgrade to Caa1 reflects Claire's weak operating
performance over the past two quarters that has led to
deterioration in its debt protection measures.  In particular,
EBITA to interest expense fell to 0.9 times for the lagging twelve
month period ending May 3, 2008.  The review for further possible
downgrade reflects the high likelihood that Claire's debt
protection measures will get worse given the challenging economic
environment which makes the company highly susceptible to further
earnings and cash flow pressure.


IZMIT SU: Fitch Affirms 'B' Foreign & Local Currency Ratings
------------------------------------------------------------
Fitch Ratings has affirmed Turkey's Kent Konut A.S's and Izmit Su
ve Kanalizasyon Idaresi's Long-term foreign and local currency 'B'
ratings with Stable Outlooks and withdrawn them.  Fitch will no
longer provide ratings or analytical coverage of these issuers.


KENT KONUT: Fitch Affirms Foreign & Local Currency Ratings at 'B'
-----------------------------------------------------------------
Fitch Ratings has affirmed Turkey's Kent Konut A.S's and Izmit Su
ve Kanalizasyon Idaresi's Long-term foreign and local currency 'B'
ratings with Stable Outlooks and withdrawn them.  Fitch will no
longer provide ratings or analytical coverage of these issuers.


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


ARHIN-BUILDING LLC: Creditors Must File Claims by October 2
-----------------------------------------------------------
Creditors of LLC Arhin-Building (code EDRPOU 34569745) have until
Oct. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 11, 2008.
The case is docketed as 50/163-b.

The Debtor can be reached at:

         LLC Arhin-Building
         Okhtyrsky Lane
         03022 Kiev
         Ukraine


ENERGYEXPORT-1 LLC: Creditors Must File Claims by October 1
-----------------------------------------------------------
Creditors of LLC Energyexport-1 (code EDRPOU 30515633) have until
Oct. 1, 2008, to submit proofs of claim to:

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The Economic Court of Zaporozhje commenced bankruptcy supervision
procedure on the company on Aug. 1, 2008.  The case is docketed as
16/201/08.

The Debtor can be reached at:

         LLC Energyexport-1
         Ap. 40
         Ladozhskaya str. 8
         69000 Zaporozhje
         Ukraine


IMHOTEN LLC: Creditors Must File Claims by October 2
----------------------------------------------------
Creditors of LLC Imhoten (code EDRPOU 33643199) have until
Oct. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 12, 2008.
The case is docketed as 28/255-b.

The Debtor can be reached at:

         LLC Imhoten
         Ap. 51A
         B. Hmelnitsky/M. Kotsiubinsky, 66/2
         01030 Kiev
         Ukraine


NIKOLAYEV MANUFACTURES: Creditors Must File Claims by October 2
---------------------------------------------------------------
Creditors of LLC Nikolayev Manufactures (code EDRPOU 33250544)
have until Oct. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Nikolaev commenced bankruptcy supervision
procedure on the company on July 1, 2008.  The case is docketed as
5/342/08

The Debtor can be reached at:

         LLC Nikolayev Manufactures
         Hydro Complex Str. 4.
         Yuzhnoukrainsk
         55002 Nikolaev
         Ukraine


RADIANSKA DONETCHTCHINA: Creditors Must File Claims by October 2
----------------------------------------------------------------
Creditors of LLC Radianska Donetchtchina (code EDRPOU 00414457)
have until Oct. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on June 29, 2008.
The case is docketed as 33/123B.

The Debtor can be reached at:

         LLC Radianska Donetchtchina
         Ukraine
         Donetsk
         Solntsevo
         Lenin Str. 53


REPAIR-BUILDING MANAGEMENT: Creditors Must File Claims by Oct. 2
----------------------------------------------------------------
Creditors of State Enterprise Repair-Building Management (code
EDRPOU 00181183) have until Oct. 2, 2008, to submit proofs of
claim to:

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

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on July 22, 2008.
The case is docketed as 21/112b.

The Debtor can be reached at:

         State Enterprise Repair-Building Management
         Garibaldi Str. 1
         Lisichansk
         93100 Lugansk
         Ukraine


SPORT MEDIA: Creditors Must File Claims by October 2
----------------------------------------------------
Creditors of LLC Sport Media Project (code EDRPOU 32113520) have
until Oct. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 18, 2008.
The case is docketed as 49/208-b.

The Debtor can be reached at:

         LLC Sport Media Project
         Tchapayev Str. 4 of. 3
         01030 Kiev
         Ukraine


VEAG LLC: Creditors Must File Claims by October 1
-------------------------------------------------
Creditors of LLC Veag (code EDRPOU 34511208) have until Oct. 1,
2008, to submit proofs of claim to:

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

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 15, 2008.
The case is docketed as 2/338/08.

The Debtor can be reached at:

         LLC Veag
         Ap. 97
         Krilov Str. 38B
         Nikolaev
         Ukraine


VOLOCHYSK-SUGAR: Creditors Must File Claims by October 2
--------------------------------------------------------
Creditors of Subsidiary Company Volochysk-Sugar (code EDRPOU
32461570) have until Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Hmelnitskij
         Nezalezhnosti Square 1
         29000 Hmelnitskij
         Ukraine

The Economic Court of Hmelnitskiy commenced bankruptcy supervision
procedure on the company on June 13, 2008.  The case is docketed
as 2/136-B.

The Debtor can be reached at:

         Subsidiary Company Volochysk-Sugar
         Zavodskaya Str. 1
         Volochysk
         31200 Hmelnitskij
         Ukraine


YARMOLINTSY BREADRECEIVING: Creditors Must File Claims by Oct. 2
----------------------------------------------------------------
Creditors of OJSC Yarmolintsy Breadreceiving Enterprise (code
EDRPOU 00952443) have until Oct. 2, 2008, to submit proofs of
claim to:

         The Economic Court of Hmelnitskij
         Nezalezhnosti Square 1
         29000 Hmelnitskij
         Ukraine

The Economic Court of Hmelnitskiy commenced bankruptcy supervision
procedure on the company on July 11, 2008.  The case is docketed
as 3/153-B.

The Debtor can be reached at:

         LLC Nikolayev Manufactures
         32101 Hmelnitskij
         Yarmolintsy
         Zheleznodorozhnaya Str. 16
         Ukraine


* Fitch Changes Outlooks on Nine Ukrainian Banks to Negative
------------------------------------------------------------
Fitch Ratings has changed the Outlooks for the Long-term Issuer
Default ratings of nine Ukrainian banks to Negative from Stable,
and affirmed their ratings.  This action follows the revision of
the Outlook on Ukraine to Negative from Stable.

The change in Outlooks for the IDRs of Swedbank, Forum, ProCredit
Ukraine, VTBU, UkrSib, Ukrsots and Pravex reflects the potential
downward revision of Ukraine's Country Ceiling (currently 'BB-'),
following the change in Ukraine's Outlook.  The Country Ceiling of
Ukraine limits the extent to which support from the foreign
shareholders of these banks can be factored into their Long-term
foreign currency IDRs, and their Long-term local currency IDRs
also take into account of Ukrainian country risks.

Swedbank is 100%-owned by Swedbank AB ('A+'/Stable), Forum is
majority (60%+one share)-owned by German Commerzbank AG
('A'/Rating Watch Negative), ProCredit Ukraine is 60%-owned by
Germany's ProCredit Holding AG ('BBB-'/Stable), VTBU is more than
99%-owned by Russia's JSC Bank VTB ('BBB+'/Stable), UkrSib is 51%-
owned by France's BNP Paribas ('AA'/Stable), Ukrsots is 94%-owned
by Italy-based UniCredit ('A+'/Positive) and Pravex is 100%-owned
by Italy's Intesa Sanpaolo ('AA-'/Stable).  The Long- and Short-
term IDRs and Support ratings of these banks reflect the moderate
probability of support being forthcoming from their majority
shareholders, in case of need.

The change in Outlooks for the Long-term IDRs of Oschadny and
Ukreximbank reflect the increased likelihood of a deterioration in
the government's ability to provide support in case of need, as
reflected in the change in the Outlooks for the sovereign Long-
term IDRs.

Oschadny's and Ukreximbank's Long- and Short-term IDRs and Support
ratings reflect Fitch's view of the very strong propensity of the
Ukrainian authorities to provide support for these banks in case
of need, although the ability to provide that support is less
certain, as reflected in Ukraine's 'BB-' Long-term IDRs.  Both
Oschadny and Ukreximbank are 100%-owned by the state (represented
by the Cabinet of Ministers of Ukraine).  Non-binding letters of
support from the government have been provided in the offering
circulars of Ukreximbank's international debt issues (the most
recent being dated March 2007).

OJSC Swedbank (Swedbank):
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

Bank Forum (Forum):
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

ProCredit Bank (Ukraine) (ProCredit Ukraine):
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

JSC VTB Bank (Ukraine):
  -- Long-term foreign currency IDR: affirmed at 'BB-' (BB minus);
     Outlook changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

JSCIB UkrSibbank (UkrSib):
  -- Long-term foreign currency IDR: affirmed at 'BB-' (BB minus);
     Outlook changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

Ukrsotsbank (Ukrsots):
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D'

Pravex Bank (Pravex)
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

JSC State Savings Bank of Ukraine (Oschadbank):
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

  -- Long-term local currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D'

  -- Support Rating Floor: affirmed at 'BB-'

  -- National Long-term rating: affirmed at 'AA(ukr)'; Outlook
     Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):
  -- Long-term foreign currency IDR: affirmed at 'BB-'; Outlook
     changed to Negative from Stable

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

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D',

  -- Support Rating Floor: affirmed at 'BB-',

  -- National Long-term rating: affirmed at 'AA(ukr)'; Outlook
     Stable


* UKRAINE: Fitch Holds BB- Foreign & Local Issuer Default Ratings
-----------------------------------------------------------------
Fitch Ratings has revised Ukraine's Outlook to Negative from
Stable.  Its ratings are affirmed at Long-term foreign and local
Issuer Default 'BB-' and at Short-term foreign currency IDR 'B'.
The agency has also affirmed the Country Ceiling at 'BB-'.

"The Negative Outlooks signal Fitch's concern that Ukraine faces a
growing risk of a currency crisis, driven by a widening current-
account deficit and deteriorating financing prospects," said
Andrew Colquhoun, Director in Fitch's Sovereigns Group.  "Strong
capital inflows and reserves growth so far in 2008 are evidence of
some resilience, but Ukraine faces growing risks with
deteriorating fundamentals."

Ukraine's need for foreign financing is likely to rise even as
availability seems to be diminishing in a worsening global market
and macroeconomic environment.  Fitch projects Ukraine's current
account deficit will rise to 7% of GDP in 2008 and 8.5% in 2009
from 4.2% in 2007, driven by a widening trade deficit.  Ukraine is
heavily exposed to commodity prices, in particular natural gas and
steel.  The gas import price is set to go up in 2009 as Russia
continues to narrow Ukraine's price gap with western Europe.  A
sharp drop in steel prices from currently elevated levels would
intensify the terms-of-trade shock facing Ukraine.  Ukraine's
external liquidity ratio of 96% for 2008 is well below the 'BB'
median of 223%, leaving the country with relatively thin buffers
against external-financing shocks.

Capital inflows remain strong so far in 2008, boosting official
reserves by 20% to US$38 billion over the eight months to end-
August.  But Ukraine's prospects for attracting needed financing
in the rest of 2008 and 2009 are suffering from deterioration in
economic policy-making, ongoing political volatility and worsening
macroeconomic fundamentals.  The fall of the government on 3
September threw Ukraine into its fourth political crisis in as
many years and left the country without a credible government able
to tackle the risks building up in the economy.

Monetary policy was tightened moderately in April-May 2008, but
real interest rates remain strongly negative and Fitch expects
inflation of 20% by end-2008, albeit down from 26% in August.
Nonetheless, growth is slowing, with construction already in
recession.  A moderate slowdown could ease risks by cutting
imports, but a sharp one could damage investor confidence and the
banking system.  Debt management has deteriorated as the
government's refusal to accept higher yields means it has yet to
secure financing for 2008's 2% budget deficit, risking draw-down
of fiscal deposits, which would send a poor signal to the markets.
However, low government debt of just 10% of GDP (end-2007) and
sovereign external amortization totaling just US$1.3 billion in
H208 and 2009, relative to foreign reserves of US$38 billion and
projected 2008 GDP of US$191 billion, are rating strengths.

Materialization of risks in the external finances leading to a
sharp drop in the UAH would accelerate already-high inflation, and
would affect asset quality in the banking system where 51% of
loans are denominated in foreign currency.  Further increases in
the risk of an external-financing crisis would likely trigger a
rating downgrade.  Monetary or fiscal policy slippage would also
be negative for creditworthiness.


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


AKUBIO LTD: Claims Filing Period Ends October 24
------------------------------------------------
Creditors of Akubio Ltd. have until Oct. 24, 2008, to send in
their names and addresses, with particulars of their debts or
claims, to:

        Graham Paul Bushby
        Joint Liquidator
        Baker Tilly Restructuring and Recovery LLP
        5th Floor
        Exchange House
        446 Midsummer Boulevard
        Milton Keynes
        MK9 2EA
        England

G. P. Bushby and G. L. Carton-Kelly were appointed joint
liquidators of the company on Sept. 5, 2008, for the creditors'
voluntary winding-up proceeding.


AMERICAN INT'L: SEC Subpoenas Funds on Share Manipulation
---------------------------------------------------------
The U.S. Securities and Exchange Commission subpoenaed more than
two dozen hedge funds on Sept. 22 as part of its probe on whether
traders were spreading rumors to manipulate shares, Kara Scannell
at The Wall Street Journal reports, citing people familiar with
the matter.

Elizabeth MacDonald at Foxbusiness.com relates that the SEC has
subpoenaed 50 hedge funds to find out if they were engaging in
rumor mongering to drive down shares in 19 financial companies
"they had shorted in naked short sales to book a profit."

According to WSJ, the subpoenas identified these financial
institutions affected by manipulation:

    -- American International Group Inc.,
    -- Goldman Sachs Group Inc.,
    -- Lehman Brothers Holdings Inc.,
    -- Morgan Stanley,
    -- Washington Mutual Inc., and
    -- Merrill Lynch & Co.

WSJ relates that the subpoenas seek trading data -- include
details of funds' positions in stocks, derivatives, swaps and
other financial instruments, when trades were initiated and
settled, and whom they involved -- and e-mail communications
between Sept. 1 and Sept. 19, when certain financial markets came
close to freezing up.

Bloomberg News relates that the Federal Bureau of Investigation is
probing the financial troubles of AIG, Lehman Brothers, Fannie Mae
and Freddie Mac.  Evan Perez at WSJ relates that law enforcement
officials said that the FBI's preliminary inquiries are focusing
on whether fraud helped cause some of the troubles at these four
companies.  According to WSJ, the U.S. Attorney in Brooklyn has
brought charges against brokers who allegedly tricked some
institutional investors into purchasing risky auction-rate
securities.

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.

The Federal Reserve Bank of New York has extended to AIG a
revolving credit facility up to US$85 billion. AIG's borrowings
under the revolving credit facility will bear interest, for each
day, at a rate per annum equal to three-month Libor plus 8.50%.
The revolving credit facility will have a 24-month term and will
be secured by a pledge of assets of AIG and various subsidiaries.
The revolving credit facility will contain affirmative and
negative covenants, including a covenant to pay down the facility
with the proceeds of asset sales.

The summary of terms also provides for a 79.9% equity interest in
AIG. The corporate approvals and formalities necessary to create
this equity interest will depend upon its form.

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has 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.

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.

The Troubled Company Reporter reported on Sept. 19, 2008 that that
Edward Liddy replaced Robert Willumstad as AIG's CEO.

                    *     *     *

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.


BRITISH ENERGY: Moody's Places Ba2 CFR for Possible Upgrade
-----------------------------------------------------------
Moody's Investors Service placed on review for possible downgrade
the Aa1 long-term senior unsecured debt and issuer ratings of
Electricite de France SA, as well as the ratings of certain of its
subsidiaries, including the A3 senior unsecured debt and issuer
ratings of EDF Energy plc and EDF Trading Limited, which
incorporate a degree of support from their positioning within the
EDF Group.  The short-term debt and issuer ratings of EDF (at
Prime-1) and EDF Energy plc (at Prime-2) were affirmed.  At the
same time, Moody's placed on review for possible upgrade the Ba2
corporate family and probability of default ratings of British
Energy Group plc (British Energy), and the Ba3 guaranteed debt
rating of British Energy Bond Finance plc (formerly British Energy
Holdings plc).

The rating actions follow the announcement that the boards of EDF
and British Energy have agreed on the terms of the recommended
offers to be made by EDF, through its wholly-owned subsidiary Lake
Acquisitions Limited, for the entire issued and to be issued share
capital of British Energy.  The offers, which include a cash offer
and a partial CVR alternative, value British Energy at
approximately GBP12.5 billion.  The transaction is expected to
become effective in the last quarter of 2008, or early 2009,
subject to certain conditions including required thresholds for
shareholder acceptances, and approval by the European Commission
and UK Competition Commission. EDF and Centrica (rated A3/Prime-2
by Moody's) are in discussions in relation to an option for
Centrica to acquire 25% of Lake Acquisitions.  Moody's notes that
although there is no certainty that such an agreement will be
reached, EDF's willingness to proceed with the acquisition of
British Energy is in no way dependent on reaching such an
agreement.

Ratings placed on review for possible downgrade:

   EDF SA -- the Aa1 senior unsecured debt and issuer ratings

   EDF Energy plc -- the A3 senior unsecured debt ratings

   EDF Energy Networks (LPN) plc -- the A2/Prime-1 senior
   unsecured debt and issuer ratings

   EDF Energy Networks (EPN) plc -- the A2/Prime-1 senior
   unsecured debt and issuer ratings

   EDF Energy Networks (SPN) plc -- the A3 senior unsecured
   debt and issuer ratings

   EDF Trading Limited - the A3 senior unsecured issuer
   rating

   EDF Energy (South East) plc -- the A3 senior unsecured
   issuer rating

   EDF Energy Customers plc- the A3 senior unsecured issuer
   rating

   SEEBOARD Energy Ltd -- the A3 senior unsecured issuer
   rating

Ratings affirmed:

   EDF SA -- the Prime-1 senior unsecured short-term debt
             and issuer ratings

   EDF Energy plc -- the Prime-2 senior unsecured short-term
                     debt rating

   EDF Energy Networks (SPN) plc -- the Prime-2 senior
                      unsecured short-term debt rating

   EDF Energy (South East) plc -- the Prime-2 senior
                      unsecured short-term issuer rating

Ratings placed on review for possible upgrade:

   British Energy Group plc -- the Ba2 corporate family
   and probability of default ratings

   British Energy Bond Finance plc (formerly British Energy
   Holdings plc) -- the Ba3 guaranteed debt rating

The review for possible downgrade of EDF's Aa1 ratings reflects
the negative pressure exerted by the planned acquisition on EDF's
Baseline Credit Assessment (BCA) of 4 (equivalent to a Aa3
rating).  While recognizing the potential benefits and strategic
rationale of the acquisition, these are offset, in Moody's view,
by additional business and operational risks, as well as the
negative impact on EDF's financial profile of the debt required to
fund it.

Moody's says the planned transaction is in line with EDF's
ambition to be at the forefront of the global nuclear revival, and
leaves it well placed to participate in New Nuclear Build in the
UK.  It will also strengthen the Group's position within the UK
energy sector by transforming EDF Energy plc's hitherto short
generation position, and securing its access to power during a
period of possible pressure on generation capacity.

The review for downgrade is prompted nevertheless by the scale of
the transaction and its possible impact on EDF's business risk
profile, currently considered low.  The review also reflects
Moody's view that additional debt incurred, combined with limited
net incremental cash flow generation after financing costs, is
likely to be reflected in a weakening of the Group's financial
risk profile.  In the event that the acquisition were to complete
as planned, EDF's credit metrics are likely to decline to levels
inconsistent with a BCA of 4, even if Centrica were to acquire a
25% stake in Lake Acquisitions.  Moody's estimates, for example,
that on the basis of current operating performance expectations,
there is a risk that the additional borrowing would be reflected
in EDF's RCF/net debt declining to less than 20%, the current
guidance level for its BCA of 4 given a low business risk profile.

Moody's says that the review process will evaluate the impact of
the proposed acquisition on the Group's business risk profile,
including in the shorter-term its plans for managing its increased
position in UK power generation and the operational risks
associated with running British Energy's relatively old nuclear
reactors, most of which are AGRs.  It will also factor in the
longer-term implications of the substantial investment which will
be required in New Nuclear Build in the UK.

As part of its review of EDF's financial profile, Moody's will
incorporate the possible stake sale to Centrica, any land or plant
sales potentially required as remedies by the competition
authorities, as well as expected future capital investment
requirements.  It will also consider the impact of the
acquisition, if any, on the structure and financing of the Group's
UK activities, including any potential implications for the EDF
Energy plc sub-group.  Finally, the review will take account of
the integration and execution risks associated with an acquisition
of this size.

Moody's adds that the review for upgrade of British Energy's Ba2
ratings is prompted by the potential improvement in British
Energy's business risk profile through its position within EDF
which should broaden its access to markets, finance and
engineering expertise.  The rating review will take account of
EDF's plans for the future capital structure and financing of
British Energy, as well as for investment both in the existing
fleet and New Nuclear Build.

In two related releases, Moody's has commented on Centrica's
discussions with EDF, and affirmed its Baa3 ratings of Sutton
Bridge Financing.

Electricite de France SA is an integrated provider of electricity
generation, transmission, distribution, and supply services,
leader, by far, in its domestic French market.  The company also
has a major presence in the international markets through
ownership interests in power utility operations in Europe
(primarily Italy, UK and Germany) and globally.  In the six months
ended 30 June 2008 it recorded revenues of EUR32 billion and
EBITDA of EUR9 billion.

EDF Energy plc is an integrated electricity generation,
distribution and supply company, and is the largest UK regulated
network owner.  The company has approximately 5.5 million customer
accounts and nearly 5,000 MW of generation.  In the year to
YE2007, the company reported revenues of GBP6 billion and EBITDA
of GBP0.9 billion.

British Energy Group plc is the largest power generator in the UK,
delivering around 20% of UK electricity demand from around 10.6 GW
of installed capacity (83% of which is nuclear).  In the three
months ended June 30, 2008, British Energy reported total output
of 11.4 TWh, revenues of GBP629 million and EBITDA of GBP129
million.


BRITISH ENERGY: S&P Puts BB Corporate Credit Rating on WatchPos
---------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'BB' long-term
corporate credit ratings on U.K.-based nuclear generator British
Energy Group PLC (BE) and its subsidiary British Energy Bond
Finance PLC (BEBF) on CreditWatch with positive implications.
This follows the GBP12.4 billion cash offer from French
electricity incumbent Electricite de France S.A. (EDF; AA-/Watch
Neg/A-1+) for 100% of BE's shares.  The offer has been approved
by BE's board but still requires the approval of BE's
shareholders, the Office of Fair Trading, and the European
Commission.  BE and EDF expect these to be obtained by the last
quarter of 2008 or early 2009.

"The CreditWatch placement reflects the expectation that the
ratings on BE would be raised if the acquisition is successful,
given the higher ratings on EDF," said S&P's credit analyst Mark
Davidson.

BE would be an important strategic investment for EDF.  The U.K.
is one of EDF's core overseas markets, and the transaction would
increase vertical integration at EDF's existing U.K. subsidiary,
EDF Energy PLC (A/Stable/A-1).  In addition, BE would provide EDF
with a platform to participate in nuclear new build in the U.K.,
since BE owns the majority of suitable sites.  On the other hand,
BE would represent only about 6% of the enlarged EDF's EBITDA, and
the company continues to face ongoing operational issues with
nuclear output that has been below expectations in recent years.

EDF has also signed a nonlegally binding memorandum of
understanding with U.K.-based energy supplier Centrica PLC
(A/Negative/A-1) that gives Centrica the option to acquire a 25%
interest in BE after BE's acquisition by EDF has been completed.
S&P expects this transaction, if completed, would not be a key
driver of the ratings on BE due to the lack of management or
operational control resulting from Centrica's minority holding.

The 'BB' ratings on BE and BEBF continue to reflect the group's
predominant focus on nuclear power, which makes it a price-taker
given its lack of downstream integration in retail supply; the
exposure of its cash flows to volatile wholesale forward
electricity prices; and weaker-than-expected nuclear output due to
ongoing operational issues.  These risks are partially offset by
BE's strong liquidity, considerably reduced debt levels following
the restructuring that was completed in January 2005, supportive
covenants, and fuel-supply agreements that provide a partial hedge
against the risk of decreasing electricity prices.  BE is now also
benefiting from high base load power prices and its success at
achieving more low-collateral, longer-term, fixed-price trades.

The CreditWatch placement will be resolved once the required
shareholder and regulatory approvals are obtained and the
acquisition is made unconditional.  BE and EDF expect this to
occur in the last quarter of 2008 or early 2009.  EDF requires the
acceptance of at least 75% of the voting rights in BE, with an
option to reduce this to more than 50%.

If the acquisition is successful, S&P would likely raise the
ratings on BE, given the higher ratings on EDF.  If it is
unsuccessful, S&P would affirm the ratings on BE.


CONGREGATIONAL & GENERAL: S&P Holds Negative Watch on 'BB+' Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services views the co-insurance
agreement between U.K. non-life insurer Congregational & General
Insurance PLC (BB+/Watch Neg/--) and Hiscox Underwriting Ltd. on
behalf Of Hiscox Insurance Co. Ltd. (A-/Positive/--) as a positive
development for Congregational & General.  Nevertheless, the 'BB+'
rating on Congregational & General remains on CreditWatch with
negative implications.

The ratings were placed on CreditWatch negative on July 30, 2008,
to reflect uncertainty regarding implementation of the stated
company strategy.

S&P aims to resolve the CreditWatch placement before the end of
2008, after meeting with management and receiving more in-depth
information.  S&P will discuss with management, in detail, its
future strategy, as well as plans for operating and capital
improvements.

S&P could affirm the ratings if Congregational & General can
demonstrate a sustainable strategy to deliver good operating
performance over the medium term and to successfully rebuild its
capital.  By contrast, S&P could lower the ratings by up to two
notches if the company does not deliver a sustainable strategy.


GALFEN LTD: Brings in Liquidators from Tenon Recovery
-----------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Galfen (Northern) Ltd. on
Sept. 10, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         Galfen (Northern) Ltd.
         Tenon Recovery
         Tenon House
         Ferryboat Lane
         Sunderland
         SR5 3JN
         England


HOME BUYER: Calls in Liquidators from Tenon Recovery
----------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Home Buyer North East Ltd.
(formerly Steel House Developments Ltd.) on for Sept. 9, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached at:

        Home Buyer North East Ltd.
        c/o Tenon Recovery
        Tenon House
        Ferryboat Lane
        Sunderland
        SR5 3JN
        England


LEHMAN: Gives Update on Position with Various Clearing Houses
-------------------------------------------------------------
The joint administrators of Lehman Brothers International (Europe)
wish to inform affected clients of LBIE about the current status
of its position with various Recognised Investment Exchanges
(RIE), Recognised Overseas Investment Exchanges (ROIE), Recognised
Clearing Houses (RCH) and Recognised Overseas Clearing Houses
(ROCH).

An RIE is an investment exchange, and an RCH is a clearing house,
which is recognized and supervised by the FSA under the Financial
Services and Markets Act 2000.  The FSA has also recognized and
supervises a number of ROIEs and ROCHs under the Financial
Services and Markets Act 2000.

Please note that the list below does not detail all RIEs, ROIEs,
RCHs and ROCHs that LIBE is currently working with.  The
Administrators intend to update this communication in the coming
days and weeks with further information.

For further details about the rules, regulations and actions of
each RIE, ROIE, RCH and ROCH, please refer to their respective Web
sites.

LCH.Clearnet

The Administrators have been working with LCH.Clearnet to transfer
client positions to other brokers as nominated by LBIE's clients.
This exercise is now concluded.

EUREX & Eurex Clearing AG

The Administrators have been working with Eurex Clearing AG to
transfer client positions to other brokers as nominated by LBIE's
clients.  This exercise has largely been concluded.

Euroclear UK & Ireland Limited ("EUI")

Accounts relating to LBIE and its UK affiliates remain disabled
and all related unsettled instructions remain frozen and will not
be included in CREST settlement processing.  For further
information regarding OTC cash trades in CREST please refer to
http://www.pwc.co.uk/eng/issues/Lehman_exchange_update_240908.html

The London Metal Exchange Limited ("LME")

Outstanding trades on LME, currently registered with LCH, will be
addressed in the coming days.

London Stock Exchange plc ("LSE")

LSE issued a default notice on Sept. 15, 2008.  The Administrators
have been working with the LSE to provide the relevant data
required to ensure the LSE can calculate the appropriate net
settlement due to or from LBIE.  This relates to transactions not
cleared through LCH.Clearnet, but which are subject to the LSE
default rules.

EDX London Ltd ("EDX")

The Administrators are not aware of any outstanding trades on EDX.

LIFFE

The Administrators are not aware of any outstanding trades on
LIFFE.

ICE Futures Europe ("ICE")

The Administrators are not aware of any outstanding trades on ICE.

AV Lomas, SA Pearson, DY Schwarzmann and MJA Jervis were appointed
as Joint Administrators of Lehman Brothers International (Europe)
on Sept. 15, 2008 to manage its affairs, business and property as
agents without personal liability.  AV Lomas, SA Pearson, DY
Schwarzmann and MJA Jervis are licensed to act as insolvency
practitioners by the Institute of Chartered Accountants in England
and Wales.

                 About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders.  More than 146,000 people in 150 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a
limited liability partnership in the United Kingdom) or, as the
context requires, the PricewaterhouseCoopers global network or
other member firms in the network, each of which is a separate
and independent legal entity.

                   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: Gives Update on Unsettled OTC Cash Trades
----------------------------------------------------------
The Administrators of Lehman Brothers International (Europe) wish
to update counterparties of LBIE regarding unsettled OTC cash
trades that were due to be settled in CREST (Euroclear UK&
Ireland).

                        Background

The Administrators appreciate the degree of uncertainty in the
market created by the unsettled OTC cash trades that were due to
be settled in CREST and confirm that they are working closely with
CREST and treating the resolution of this as a very important and
urgent matter.

                       Process

Certain counterparties and customers have contacted the
Administrators with proposals concerning the possible cancellation
of OTC cash unsettled trades.  It is currently possible for the
Administrators to deal with such proposals in limited
circumstances.

Accordingly, the Administrators request that, until further
notice, counterparties contact them with a proposal if all of
these principles apply:

    * The counterparty will be required to pay a fee, to be
      agreed with the Administrators.

    * The proposal should concern OTC cash trades that were to
      be settled in CREST.

    * The unsettled trades must have been executed OTC, and not
      be subject to the default or other rules of an Exchange or
      Clearing House.

    * As a precondition for cancellation the counterparty will
      be required to lodge an amount equivalent to the net value
      of the cancellation in escrow, to be released on
      conclusion of the cancellation process.

    * Prior to agreeing to any proposal, the Administrators will
      require a confidentiality undertaking to be signed.

    * A standard indemnity will be required indemnifying the
      Administrators.  Details will be provided on request.

Once these principles are satisfied, the Administrators will
consider a proposal for effecting cancellation of trades.

                  About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders. More than 146,000 people in 150 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a
limited liability partnership in the United Kingdom) or, as the
context requires, the PricewaterhouseCoopers global network or
other member firms in the network, each of which is a separate
and independent legal entity.

                     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.


O. Z REALISATIONS: Appoints Liquidators from Ernst & Young
----------------------------------------------------------
Simon Allport and Thomas Andrew Jack of Ernst & Young LLP were
appointed joint liquidators of O. Z Realisations Ltd. (formerly
Ozmo Ltd.) on Sept. 11, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         O. Z Realisations Ltd.
         c/o Ernst & Young LLP
         100 Barbirolli Square
         Manchester
         M2 3EY
         England


PROTEA PRODUCTS: Joint Liquidators Take Over Operations
-------------------------------------------------------
Glyn Mummery and Jeremy Stuart French of Vantis Business Recovery
Services were appointed joint liquidators of Protea Products Ltd.
on Sept. 5, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

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


PURE FLIGHTS: Taps Liquidators from PricewaterhouseCoopers
----------------------------------------------------------
Ian Christopher Oakley-Smith and Robert William Birchall of
PricewaterhouseCoopers LLP were appointed joint liquidators of
Pure Flights Ltd. on Sept. 12, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Pure Flights Ltd.
         c/o PricewaterhouseCoopers LLP
         Hill House
         Richmond Hill
         Bournemouth
         BH2 6HR
         England


WATSON NORIE: Brings in Joint Administrators from PwC
-----------------------------------------------------
Ian Green and Mark Loftus of PricewaterhouseCoopers LLP were
appointed joint administrators of Watson Norie Limited on
Sept. 25, 2008.

The company, which was formed in 1920, and has a turnover of
approximately GBP28 million per annum, is a highly regarded major
electrical and instrumentation contractor for a wide range of
clients throughout the UK.  Its head office is located in Walker,
Newcastle upon Tyne and has further offices situated in Scunthorpe
and Grangemouth.

The company had been in negotiations with an interested party to
sell part of the business, however they withdrew due to the
potential costs they might incur under the T.U.P.E. regulations.

Regrettably it is not possible to continue the operations and
fulfill outstanding contracts without significant additional
funding.  Accordingly, a significant number of employees across
the various sites and offices have been made redundant with
immediate effect.

Mark Loftus, joint administrator and director at
PricewaterhouseCoopers LLP said: "It is clearly disappointing that
such a long established company and a well known name in the
industry has been placed into insolvency proceedings, particularly
for the employees.  We are very keen to hear from anyone who may
be interested in purchasing the business in whole or in part."

                About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders.  More than 146,000 people in 150 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a
limited liability partnership in the United Kingdom) or, as the
context requires, the PricewaterhouseCoopers global network or
other member firms in the network, each of which is a separate
and independent legal entity.


WILLIS GAMBIER: Goes Into Administration; PwC Appointed
-------------------------------------------------------
David Chubb, Stephen Oldfield and Graham Frost of
PricewaterhouseCoopers have been appointed Administrators of
Willis Gambier Holdings Limited and its subsidiaries.

Willis Gambier is an importer and leading supplier of premium
quality furniture to major, national and independent retailers
with the core focus of the business being high-end bedroom and
dining collections.

The Administrators are trading the business while they seek to
sell it as a going concern.

Any expressions of interest in the business should be directed in
the first instance to the PricewaterhouseCoopers Central Press
Office on 020 7213 1768; Email: emma.thorogood@uk.pwc.com

                 About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders.  More than 146,000 people in 150 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a
limited liability partnership in the United Kingdom) or, as the
context requires, the PricewaterhouseCoopers global network or
other member firms in the network, each of which is a separate
and independent legal entity.


* Construction Sector Has Highest Default Risk in the UK, S&P Says
------------------------------------------------------------------
Standard & Poor's Risk Solutions' analysis of the 2007 year-end
financial returns of U.K. SMEs shows, not surprisingly, that the
sector with the highest default risk in 2008 is construction.
Even the best of the bottom quartile of the industry is showing a
one–year probability of default (PD) of 2.65%.  Conversely, the
top quartile starts with PDs of just 0.7% and strengthens from
there.

Manufacturing too is showing significant risk of default, with
the bottom quartile starting at a PD of 1.9%.  The wholesale and
retail trade sector, however, has an average PD of 0.7%, an upper
quartile starting at 0.3% and a bottom quartile starting at just
1.3%.

"These results show the dramatic differences in default risk
between sectors in the U.K., even among sectors most exposed to
the credit crunch" says Stuart Shipperlee, head of PD model
products for S&P's Risk Solutions.  "The bottom 25% of the
construction industry is twice as likely to default as the
equivalent firms in the trade sector and more than 10 times as
likely as the strongest 25% of wholesale and retail traders."

The research covers U.K. SMEs with annual turnover of between
GBP0.5 million and GBP50 million and reflects a review of the 2007
year-end accounts of 200,000 companies out of a total 575,000
companies.

"The results may worsen as more accounts are received," said
Mr. Shipperlee, "since later filing of financial returns can be
more common among weaker firms.  Certainly, the results are
unlikely to improve."

Among the strongest sectors are those whose customers are often in
the public sector (such as Defence, Education and Social Work) and
primary industries such as Agriculture and Mining and Quarrying.

While risk of default is clearly increasing in most sectors,
having improved from 2003 to 2006, Mr. Shipperlee notes that the
main risk factors are industry driven as much as a function of the
economic cycle.  "Construction has shown approximately three times
the default risk of the Education sector throughout the past five
years," he said.

The analysis was conducted using S&P's Risk Solutions proprietary
SME credit scoring service, Credit Risk Tracker U.K.  Ten
different sector-specific models covering 50 individual industries
are available, along with PDs on more than 575,000 U.K. firms.


* S&P Cuts Ratings on Various European Synthetic CDO Transactions
-----------------------------------------------------------------
Standard & Poor's Ratings Services has taken these rating actions
on various European synthetic collateralized debt obligation (CDO)
transactions:

  -- S&P placed 328 ratings on CreditWatch with negative
     implications; and

  -- S&P lowered 68 ratings, 36 of which were placed on
     CreditWatch negative.

The downgrades and CreditWatch placements reflect the impact of
these events that have occurred since the start of September on
the relevant portfolios:

  -- Fannie Mae and Freddie Mac were placed under regulatory
     conservatorship.

  -- Lehman Brothers filed for Chapter 11 bankruptcy.

  -- Negative rating migration occurred that reflects, but is not
     limited to, the downgrades and CreditWatch placements of
     American International Group (AIG), Bank of America Corp.,
     and Washington Mutual, Inc.

Transactions with exposure to either Fannie Mae or Freddie Mac
that had ratings placed on CreditWatch negative were failing their
synthetic rated overcollateralization (SROC) ratio tests
regardless of outcome of final recovery valuations.

Transactions with exposure to either Fannie Mae or Freddie Mac
that had ratings lowered were failing their SROC ratio tests based
on a fixed recovery as documented at closing.  If the SROC ratio
was lower than 100% at the current date and at a 90-day-forward
projected date, S&P lowered the rating on the tranche.  If the
SROC ratio was lower than 100% at the current date at the lower
rating level and above 100% at a 90-day-forward projected date,
S&P lowered the rating on the tranche and left it on CreditWatch
negative.

Ratings List:

Aphex Pacific Capital Ltd.

JPY500 million DESIGN secured portfolio floating-rate credit-
linked notes series 6

            BB+                  AA

Claris Ltd.

EUR3.5 million Gascogne floating-rate credit-linked notes series
31/2004

            BB+/Watch Neg        BB+

Coriolanus Ltd.

EUR7.5 million variable credit-linked secured notes series 78

            BB-                  BBB-


ELM B.V.

EUR50 million secured floating-rate notes series 8
            BB+                  AA-

Elva Funding PLC

EUR178 million and US$10 million secured floating-rate notes
series 2004-6

C1          A+/Watch Neg         AA
C2          A+/Watch Neg         AA
C3          A+/Watch Neg         AA
D1A         BBB                  AA
D2          BBB                  AA
D3          BBB                  AA

Elva Funding PLC

EUR157 million, JPY4.15 billion and US$28 million floating and
fixed-rate notes series 2005-2

B-1         AA+/Watch Neg        AAA
B-3         AA+/Watch Neg        AAA
B-4         AA+/Watch Neg        AAA
C           AA/Watch Neg         AAA
D-1         BBB+/Watch Neg       AA
D-3         BBB+/Watch Neg       AA
D-4         BBB+/Watch Neg       AA
D-5         BBB+/Watch Neg       AA
E-1         BBB/Watch Neg        AA-
E-3         BBB/Watch Neg        AA-
E-4         BBB/Watch Neg        AA-
F-1         BB+/Watch Neg        BBB+
F-2         BB+/Watch Neg        BBB+
F-3         BB+/Watch Neg        BBB+
F-4         BB+/Watch Neg        BBB+


Green Forest Securities Ltd.

US$12 million tailored synthetic alternative risk notes series
2005-1

            BB                   BBB-

Heartland Funding PLC

EUR5 million tranche D secured floating-rate notes series 2007-6
(PICCADILLY II)

D           BB/Watch Neg         BB


Helix Capital (Jersey) Ltd.

AU$9 million step-up coupon callable managed synthetic CDO notes
series 2006-3C

            BB-                  A

Helix Capital (Jersey) Ltd.

AU$3 million step-up coupon callable managed synthetic CDO notes
series 2006-3D

            B-/Watch Neg         BBB

Magnolia Finance I PLC

JPY700 million floating-rate Orion Global synthetic CDO portfolio
credit-linked notes series 2006-24

            BB-/Watch Neg        BB-

Rabobank International and Rabo Groen Bank B.V.

EUR29.788 million credit default swap

            BB+                  BBB

Sceptre Capital B.V.

EUR2 million secured credit-linked variable-rate notes series
2004-8

            BB+/Watch Neg        AA

Sceptre Capital B.V.

EUR3 million secured credit-linked variable-rate notes series
2004-9

            BB/Watch Neg         AA-

Sceptre Capital B.V.

EUR12 million secured credit-linked variable-rate notes series
2004-10

            BB/Watch Neg         AA-

Starling Finance PLC

JPY5 billion Class C floating-rate Keltic One portfolio credit-
linked notes series 2006-14

            BB                   A

Trees S.A.

EUR21 million fixed- and floating-rate notes series 74 (Moselle
Synthetic CDO)

A           BB+                  BBB+
B           BB+                  BBB+
C           BB+                  BBB+


* S&P Sees Bleak Outlook for Euro Sovereign Ratings in 2008/2009
----------------------------------------------------------------
Following a number of downgrades and negative outlook revisions in
2008, Standard & Poor's Ratings Services expects to see more
downward movements in Emerging European sovereign ratings over the
remainder of 2008 and in 2009.  According to a new report, titled
"Bleak Outlook For Emerging Europe Sovereign Ratings As Economic
Woes Continue," risks from overheating and excessive leveraging
across Emerging Europe, which could affect growth and the
potential cost to governments of re-capitalizing overburdened
banking systems, largely explain the increase in S&P's negative
rating actions over the past 12 months.

"The breathtaking expansion of domestic credit -- in many cases
exacerbated by the boost to consumer confidence provided by the
European Union accession process -- has fuelled excessive domestic
demand growth in much of the region," S&P's credit analyst Ana
Mates said.  "The result has been ballooning current account
deficits and a concurrent rise in external liabilities, which have
had an adverse effect on sovereign creditworthiness."

S&P's ratings analysis remains focused on how Emerging European
sovereigns will close the credit-fuelled gap between overheating
aggregate demand and pressured aggregate supply -- in the face
of weakening external demand and a potential credit drought.
Those countries most at risk are those where gross external
financing needs are highest and banking systems are most
leveraged.

A sudden stop of financial inflows has so far only directly
affected the CIS.  Not coincidentally, it is also the CIS where
parent bank support is the weakest and hence refinancing risk is
highest.  Whether the rest of Eastern Europe remains sheltered by
motherly parent banks with deep pockets depends very much on the
health of those largely Western European institutions.  So far,
Emerging European central banks have risen to the challenge of
facilitating liquidity into interbank markets when necessary.

"The problem is that the financial squeeze this time around is
the most intense S&P has seen in several decades, and central
banks and regulatory authorities are now being tested more than
ever," S&P's credit analyst Frank Gill said.


* Sovereign Credit Ratings for Emerging Markets Peaking, S&P Says
-----------------------------------------------------------------
The trend of improving credit fundamentals in emerging market
sovereigns that has prevailed since 2003 appears to have run its
course, according to an article published by Standard & Poor's
Ratings Services titled, "Emerging Market Sovereign Credit: At The
Top Looking Down."

"The credit quality of most of these governments has improved
during this five-year period, and we have raised the ratings most
of them, including six in the last six months," said S&P's credit
analyst John B. Chambers, chairman of the Sovereign Ratings
Committee.  "We think that these gains in credit quality will not
be lost, and we are signaling that view with stable outlooks on 33
of 43 emerging market sovereigns," he continued.  "However, we do
not see much further upside to the overall credit standing of this
asset class, and a pronounced downside is beginning to appear."

At present, only Poland and the Slovak Republic have positive
outlooks among the emerging market sovereigns covered in this
report.  The Dominican Republic, El Salvador, Hungary, Kazakhstan,
Pakistan, Serbia, Sri Lanka, and Vietnam have negative outlooks.
The forecasts for most emerging market sovereigns call for lower
growth, higher inflation, and deteriorating current accounts.

"We've cautioned that global conditions may become less benign,
putting emerging market policymakers to the test," Mr. Chambers
said.  "As dislocations in the credit markets of industrialized
nations persist, clouding prospects for the growth of world trade,
that trial is now upon us.  If our analysis is correct, this
emerging market class as a whole has peaked in credit quality."

The article includes data on rating trends, rating distribution,
and default experience.  It also contains a comment on the factors
that could change a rating or outlook on each of the 43 emerging
market sovereigns discussed, and a bibliography of research
published on emerging market sovereigns by S&P.  The article will
appear in the Oct. 8 special issue on emerging markets published
by S&P's CreditWeek.


* S&P Eyes Widening Credit Gap Between European Consumer Goods Biz
------------------------------------------------------------------
The divergence in credit quality between the mostly
investment-grade non-cyclical consumer goods companies (those in
the food, beverage, personal care, and tobacco segments) and their
largely speculative-grade cyclical peers (in apparel, white goods,
and furnishings) is getting larger, says a research report
published by Standard & Poor's Ratings Services.  Titled "The
Widening Credit Gap Among Europe's Consumer Goods Firms," the
report points out that the deteriorating credit environment
evident since the beginning of 2008 has already left its mark,
triggering a wave of 11 negative rating actions in the sector,
compared with just three positive actions.  And this trend will
likely continue next year.

"We expect to see greater credit divergence developing within the
'BBB' category in 2009, with three main issues driving negative
rating actions," said S&P's credit analyst Anna Overton.  "Those
issues cover a squeeze on operating margins; share buybacks and
dividends; and continuing mergers and acquisitions.

"The biggest challenge for Europe-based international consumer
goods manufacturers will be to manage their product mix in order
to keep the share of lower-margin products down to an optimum
level.  In addition, these companies face an uphill struggle to
increase their margins in emerging markets, where input costs have
been running ahead of personal income growth."

In 2009, S&P expects to see a reversal of the revenue and cost
trends of 2008.  Sales growth is likely to slow markedly due to
tougher demand and competitive conditions in Europe and the U.S.
Although like-for-like sales growth will continue for a range of
product niches, S&P expects a flat year-on-year comparison in 2009
among diversified consumer goods manufacturers, with mutually
offsetting sales trends in their product ranges and geographic
markets. Cost-wise, the situation is likely to improve, however.
This is because capacity adjustments in the past 12 months should
start feeding through into the prices of agricultural commodities.
Raw material prices should plateau as a result.  In addition,
manufacturers should start to benefit from the business
restructuring programs implemented in 2007 and 2008.  All in all,
S&P expects operating margin pressure to be the dominant theme of
2009, given significant overheads, sales, and marketing costs, as
well as unfinished plant rationalizations across the industry.

That said, S&P's expectations for deleveraging by Danone (Groupe)
(A-/Stable/A-2), Pernod Ricard S.A. (BB+/Negative/B), Imperial
Tobacco Group PLC (BBB/Stable/A-2), and InBev N.V./S.A.
(BBB+/Stable/A-2) should still hold.


* BOND PRICING: For the Week Sept. 22 to Sept. 26, 2008
-------------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

AUSTRIA
-------
Republic of Austria       1.000    06/22/22     EUR      68.94

BELGIUM
-------
Fortis BanK SA/NV         4.375    02/01/17     EUR      72.32
                          5.757    10/04/17     EUR      66.02
                          4.250    03/23/21     EUR      62.50

FRANCE
------
Alcatel S.A.              4.750    01/01/11     EUR      14.63
Altran Technologies S.A.  3.750    01/01/09     EUR      12.76
Calyon                    6.000    06/18/47     EUR      40.68
CAP Gemini S.A.           2.500    01/01/10     EUR      50.74
                          1.000    01/01/12     EUR      41.38
Club Mediterranee S.A.    3.000    11/01/08     EUR      67.61
                          4.380    11/01/10     EUR      45.46
CMA CGM                   5.500    05/16/12     EUR      70.08
Credit Agricole           4.500    02/22/26     EUR      73.97
Essilor Intl              1.500    07/02/10     EUR      70.15
FCC Rome Alliannce        2.256    01/08/21     EUR      70.86
Soc Air France            2.750    04/01/20     EUR      20.25
Wavecom S.A.              1.750    01/01/14     EUR      17.85

GERMANY
-------
Allgemeine HypothekenBank
  Rheinboden              5.080    12/10/14     EUR      64.38
City of Moscow            5.064    10/20/16     EUR      76.37
Deutsche Schifbk          4.200    01/23/09     EUR      99.69
Escada AG                 7.500    04/01/12     EUR      69.14

ICELAND
-------
Glitnir Banki HF          4.375    02/05/10     EUR      66.42
                          6.000    03/05/12     GBP      75.45

IRELAND
-------
Alfa Bank                 8.625    12/09/15     USD      78.54
                          8.635    02/22/17     USD      75.57
Allied Irish Bks          5.625    11/29/30     GBP      63.99
                          5.250    09/10/25     GBP      63.55
Banesto Finance Plc       6.120    11/07/37     EUR       6.11
Depfa ACS Bank            0.500    03/03/25     CDN      47.58
                          0.250    07/08/33     CDN      29.12
Gazprombank               6.500    09/23/15     USD      72.04
GE Cap Eur Fund           4.125    10/27/16     EUR      75.45
                          4.350    11/03/21     EUR      69.75
                          4.625    02/22/27     EUR      66.08
                          6.025    03/01/38     EUR      71.28
GE Capital UK             5.125    05/24/23     GBP      70.47
                          5.875    01/18/33     GBP      72.41
                          6.250    05/05/38     GBP      79.86
UT2 Funding Plc           5.320    06/30/16     EUR      67.15

ITALY
-----
CIR SPA                   5.750    12/16/24     EUR      70.09

LUXEMBOURG
----------
Acergy SA                 2.250    10/11/13     USD      63.64
Bank of Moscow            6.810    05/10/17     US$      64.46
Beverage Pack             9.500    06/15/17     EUR      73.12
Cirsa Capital LX          7.875    07/15/12     EUR      69.20
Del Monte Fin SA          6.630    05/24/06     EUR      31.56
Evraz Group SA            8.250    11/10/15     USD      73.86
                          8.250    11/10/15     USD      74.78
                          9.500    04/24/18     USD      75.39
Gaz Capital SA            5.136    03/22/17     EUR      70.32
                          5.440    11/02/17     EUR      70.62
                          6.510    03/07/22     USD      73.32
                          7.288    08/16/37     USD      71.77
Globus Capital            8.500    03/05/12     USD      67.92

NETHERLANDS
-----------
ABN Amo Bank B.V.         6.000    03/16/35     EUR      60.81
                          6.250    06/29/35     EUR      59.77
Air Berlin Finance B.V.   1.500    04/11/27     EUR      28.17
ALB Finance BV            9.000    11/22/10     USD      59.85
                          9.750    02/14/11     GBP      55.73
                          8.750    04/20/11     USD      44.77
                          7.875    02/01/12     EUR      44.24
                          9.250    09/25/13     USD      47.33
Biopetrol Finance         4.000    02/21/12     EUR      47.50
BK Ned Gemeenten          0.500    06/27/18     CDN      67.59
                          0.500    02/24/25     CDN      47.62
Cemex Fin Europe          4.750    03/05/14     EUR      77.04
Centercrdt Intl           8.625    01/30/14     USD      64.84
                          8.000    02/02/11     USD      67.79
Cirio Del Monte           7.750    03/14/05     EUR       7.98
Clondalkin BV             8.000    03/15/14     EUR      74.12
                          8.000    03/15/14     EUR      73.41
DAF BV                    6.750    06/15/10     EUR       2.90
EM.TV Finance B.V.        5.250    05/08/13     EUR       3.80
Ford Capital BV           9.500    06/01/10     USD      71.47
GMAC Intl Fin BV          5.750    05/21/10     EUR      68.85
                          4.800    12/15/10     EUR      74.85
                          4.850    01/15/11     EUR      74.13
                          4.900    01/15/11     EUR      74.21
                          5.100    01/15/11     EUR      74.55
Turanalem Fin BV          7.875    06/02/10     USD      78.12
                          6.250    09/27/11     EUR      62.37
                          7.750    04/25/13     USD      59.94
                          8.000    03/24/14     USD      59.58
                          8.500    02/10/15     USD      59.59
                          8.250    01/22/37     USD      57.49
                          8.250    01/22/37     USD      57.45

NORWAY
------
Eksportfinans             0.250    07/14/33     CAD      30.81

SPAIN
-----
Ayt Cedulas Caja          3.750   06/30/25      EUR      78.50
Bancaja                   4.380   02/14/17      EUR      72.66
General De Alqui          2.750   08/20/12      EUR      71.73

SWITZERLAND
-----------
Cytos Biotechnology       2.875   02/20/12      CHF      71.93

UNITED KINGDOM
--------------
Anglian Water
  Finance Plc             2.400     04/20/35    GBP      49.35
Aspire Defence            4.670     03/31/40    GBP      62.23
                          4.670     03/31/40    GBP      62.28
Barclays Bank Plc         5.700     07/14/25    USD      71.28
Bradford&Bin BLD          7.625     02/16/10    GBP      29.97
                          4.875     06/28/17    EUR      91.99
                          5.750     12/12/22    GBP      29.84
                          6.625     06/16/23    GBP      29.81
Brit Insurance            6.630     12/09/30    GBP      70.40
Britannia Building
  Society                 5.875     03/28/33    GBP      64.34
                          5.750     12/02/24    GBP      70.36
Broadgate Finance         5.100     04/05/33    GBP      69.39
Cattles plc               7.130     07/05/17    GBP      70.98
City Of Kiev              8.000     11/06/15    USD      77.30
Daily Mail & Gen          5.750     12/07/18    GBP      73.81
                          6.375     06/21/27    GBP      67.98
Derby Eealthcare          5.560     06/30/41    GBP      70.54
Enterprise Inns           6.380     09/26/31    GBP      68.62
Exim of Ukraine           6.800     10/04/12    USD      73.38
F&C Asset Mngmt           6.750     12/20/26    GBP      65.39
FCE Bank Plc              4.625     10/25/10    NOK      70.82
                          7.125     01/16/12    EUR      73.09
Focus Diy Fin             9.375     03/03/15    GBP      35.62
Ford Cred Europe          7.125     01/15/13    EUR      68.63
Greene King Fin           5.106     03/15/34    GBP      70.68
                          5.702     12/15/34    GBP      71.32
Unique Pub Fin            6.460     03/30/32    GBP      69.43


                            *********

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

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

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

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

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy
Agravante, Melanie Pador, Marie Therese V. Profetana and Peter A.
Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


                 * * * End of Transmission * * *