TCREUR_Public/081001.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, October 1, 2008, Vol. 9, No. 195

                            Headlines

A U S T R I A

BAU-DEK LLC: Claims Registration Period Ends October 22
BOB-HOME BETEILIUNG: Claims Registration Period Ends October 21
HATON LLC: Claims Registration Period Ends October 21
OBRADOVIC TRANSPORTE: Claims Registration Period Ends October 21
WIMBERGHOF GASTRO: Claims Registration Period Ends October 27


B E L G I U M

FORTIS NV: To Sell ABN AMRO Stake After EUR11.2BB Cash Injection
FORTIS: Fitch Cuts Individual Ratings on Holding Companies to 'D'


B U L G A R I A

KREMIKOVTZI AD: Bulgarian State is Biggest Creditor
KREMIKOVTZI AD: Creditors Elect Two Receivers


D E N M A R K

EBH BANK: Gets Financial Rescue from Nationalbanken

* DENMARK: Banks Scramble to Rescue Smaller Lenders


F I N L A N D

M-REAL CORP: Sells Graphic Papers Business Area to Sappi Ltd.
M-REAL CORP: S&P Affirms Corporate Credit Ratings at B-/B/Stable
M-REAL OYJ: Moody's Says No Rating Change Following Sale


G E R M A N Y

1A REIFEN-DISCOUNT: Claims Registration Period Ends October 9
DE-TE-MA MOTORSPORT: Creditors' Meeting Slated for October 9
FRESENIUS: US$500 Mil. Loan Increase Does Not Affect S&P's Ratings
KSH-HOTELBETRIEBSGESELLSCHAFT: Creditors' Meeting Set October 9
LEAR CORP: S&P Lifts US$1 Bil. Facility Issue Level Rating to 'BB'

MAX TWO: S&P Drops Rating on EUR100 Million Senior Notes to BB+
MITO GMBH: Creditors' Meeting Slated for October 9
PRO GAST: Claims Registration Period Ends October 6
R.N. AUBELE: Claims Registration Period Ends October 6
RSE GMBH: Claims Registration Period Ends October 6

SCHOKOHOLIX GMBH: Creditors Meeting Slated for October 7
SCHUETZ GMBH: Claims Registration Period Ends October 7
SOFTWAREENTWICKLUNG HANESCH: Claims Registration Ends Oct. 7
STEVO GMBH: Claims Registration Period Ends October 10
TEX CONSULT: Claims Registration Period Ends October 6

TORO AUTOMATENBETRIEBS: Claims Registration Period Ends Oct. 6
V-TECHANDELS + SERVICE: Claims Registration Period Ends Oct. 7
ZONI TROCKENBAU: Claims Registration Period Ends October 9


I C E L A N D

* ICELAND: Faces Risks Due to Heavy Foreign Markets Exposure


I R E L A N D

* IRELAND: Falls Into Recession; Hit by Housebuilding Collapse


I T A L Y

IT HOLDING: Deteriorating Credit Cues S&P's Negative Outlook Shift


K A Z A K H S T A N

ALMAZ STROY: Creditors Must File Claims by November 12
BUILDING-SERVICE LLP: Claims Deadline Slated for November 12
CRONA LIMITED: Claims Filing Period Ends November 11
KURYLYS GAS: Creditors' Claims Due on November 11
LEONIS INCORPORATED: Claims Registration Ends November 11

OAZIS DELTA: Creditors Must File Claims by November 4
PROMYSHLENNYE TECHNOLOGIYI: Claims Deadline Slated for Nov. 12
TUKISTAN SHARUASHYLYK: Claims Filing Period Ends November 12
YAKSART-PETROLEUM LLP: Creditors' Claims Due on November 12
YAKSART-SHOW-BUSINESS LLP: Claims Registration Ends November 12


K Y R G Y Z S T A N

BATKEN NEFTE: Creditors Must File Claims by October 26


N E T H E R L A N D S

E-MAC DE 2006-II: S&P Cuts Class D, E, F Notes Ratings to BB/B/B
E-MAC DE 2007-I: S&P Lowers Ratings on Class D and E Notes to BB/B


P O R T U G A L

MAX TWO: S&P Drops Rating on EUR100 Million Senior Notes to BB+


R U S S I A

BASHKIR-AGRO-PROM-DOR-STROY: Claims Filing Period Ends Oct. 19
FINANCE LEASING: Moody's Lowers Debt Ratings to Ba3
KALININGRADSKIY WOODWORKING: Names I. Melnikov to Manage Assets
KORFOVSKIY DISTILLERY: Creditors Must File Claims by November 19
KUBANSKIY STURGEON: Creditors Must File Claims by November 19

MANUFACTURING MACHINERY: Court Starts Bankruptcy Supervision
OIL AND GAS INDUSRIAL: Creditors Must File Claims by October 19
PLAST-KOMPLEKT LLC: Creditors Must File Claims by November 19
PROM-KOMPLEKT: Creditors Must File Claims by October 19
ROS-TEKS LLC: Creditors Must File Claims by November 19

* OMSK CITY: S&P Places B Issuer Credit Rating on Negative Watch
* TOMSK OBLAST: S&P Puts B+ Long-Term Issuer Rating on Watch Neg.
* RUSSIA: Developers Ditch Projects Amid Global Credit Crisis


S W I T Z E R L A N D

BACKLAND LLC: Creditors Have Until Oct. 15 to File Claims
BEREN-BERG PROGRAMMIER: Oct. 15 Set as Deadline to File Claims
DPS ROTKREUZ: Creditors Must File Proofs of Claim by Oct. 16
KKP ROHSTOFF: Deadline to File Proofs of Claim Set Oct. 15
M&T LLC: Proofs of Claim Filing Deadline is Oct. 15

MUNZKABINETT ZURICH: Creditors’ Proofs of Claim Due by Oct. 12
OEKO-HANDEL LLC: Oct. 15 Set as Deadline to File Claims
ZBINDEN SIEBDRUCK: Creditors Must File Claims by  Oct. 15


U K R A I N E

ASSEMBLY HEAT: Creditors Must File Claims by October 2
BUSKY PLANT: Creditors Must File Claims by October 2
DYMOK LLC: Creditors Must File Claims by October 2
KHATSKIKH BREADPRODUCT: Creditors Must File Claims by October 2
NEW-ROMINVEST: Creditors Must File Claims by October 2

PRIDNEPROVSKY TRADE: Creditors Must File Claims by October 2
PRODMEGA-NK LLC: Creditors Must File Claims by October 2
SLAVUTICH: Creditors Must File Claims by October 2
SMILODON-1 LLC: Creditors Must File Claims by October 2
STATE PROVISIONS: Creditors Must File Claims by October 2

TECHNOTON LLC: Creditors Must File Claims by October 2
UGERSKO DISTILLERY: Creditors Must File Claims by October 2


U N I T E D   K I N G D O M

ACCUMA GROUP: To Put Loan Line Group Into Liquidation on Oct. 14
AMERICAN INT'L: Implements Retention Program for Executives
AMERICAN INT'L: Selling US$16BB in Real Estate to Repay U.S. Loan
AMERICAN INT'L: Secures Reinsurance From Berkshire for Unit
AMERICAN INT'L: Gov't to Get 80% Stake Without Shareholder OK

AMERICAN INT'L: Shareholders Sell 40MM Shares, To Buy Firm
EPIC INDUSTRIOUS: S&P Downgrades Rating on Class F Notes to BB
BRADFORD AND BINGLEY: Treasury Sets Loan Guarantee Arrangements
BRADFORD & BINGLEY: Moody's Lowers Jr. Sub. Debt Ratings to Ca
BUILDING SUPPLIES: Taps Joint Administrators from Baker Tilly

CHANNEL 4: To Axe Costs and 15% of Staff; Pleads for Public Aid
EUROSAIL 2006-1: Fitch Puts 'BB'-Rated Class E Notes on Watch Neg.
EUROSAIL 2006-2BL: Fitch Puts B-Rated Class F1C Notes on WatchNeg.
EUROSAIL 2006-3: Fitch Puts B-Rated Class FTc Notes on Watch Neg.
EUROSAIL 2007: S&P Slashes Ratings on Class A1b & A2b Notes to D

EUROSAIL-UK: Fitch Puts Two BB-Rated Note Classes on Watch Neg.
EUROSAIL-UK: Fitch Puts 'B'-Rated Class FTc Notes on Watch Neg.
FEDERAL-MOGUL: Court Bars Creditors from Filing Complaints
LEHMAN BROTHERS: Restructures Business; Axes 750 Jobs
MARBLE ARCH: Fitch Puts 'BB'-Rated Class E1c Notes on Watch Neg.

MEWSGREEN LTD: Brings in Joint Administrators from PwC
NEW CAP: Scheme Administrator Calls for Submission of Claims
NICHOLSON PROPERTIES: Taps KPMG as Joint Administrators
ROSEBYS: Brand Name Sold to Indian Parent GHCL
SOUTHERN PACIFIC: Fitch's Ratings Unaffected by Lehman's Issues

STP GROUP: Goes Into Administration; 170 Jobs at Risk
ULTRAMOVE LTD: Appoints Joint Administrators from BDO Stoy
WARNER MUSIC: Names Steven Macri as Chief Financial Officer

* U.K.: Regulators Blame Hedge Funds Over Lehman and HBOS Demise
* Plantation Place Noteholders Tap Bingham McCutchen as Adviser
* Profitability, Business Down in UK Financial Services Sector
* Pension Deficits May Hit U.K. Cos.; Trustees Coax More Cash
* European Servicers Aim to Optimize Portfolio Markets, S&P Says
* S&P Predicts Increasing Downgrades for European CMBS Markets


                         *********


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


BAU-DEK LLC: Claims Registration Period Ends October 22
-------------------------------------------------------
Creditors owed money by LLC Bau-Dek have until Oct. 22, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Dr. Wolfgang Pitzal
         Paulanergasse 9
         1040 Vienna
         Austria
         Tel: 587 31 11, 587 31 12, 587 87 50
         Fax: 587 87 50-50
         E-mail: office@pitzal-partner.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Nov. 5, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1707
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 1, 2008, (Bankr. Case No. 2 S 109/08d).


BOB-HOME BETEILIUNG: Claims Registration Period Ends October 21
---------------------------------------------------------------
Creditors owed money by LLC Bob-Home Beteiliung have until
Oct. 21, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. LL.M. Norbert Mooseder
         Stelzhamerstrasse 1
         4400 Steyr
         Austria
         Tel: +43 7252/424 24
         Fax: +43 7252/424 24-24
         E-mail: lawfirm@gltp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Nov. 4, 2008, for the
examination of claims at:

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

Headquartered in Linz, Austria, the Debtor declared bankruptcy on
Sept. 2, 2008, (Bankr. Case No. 17 S 33/08i).


HATON LLC: Claims Registration Period Ends October 21
-----------------------------------------------------
Creditors owed money by LLC Haton have until Oct. 21, 2008, to
file written proofs of claim to the court-appointed estate
administrator:

         Mag. Dr. Ulla Reisch
         Praterstrasse 62-64
         1020 Vienna
         Austria
         Tel: 212 55 00
         Fax: 212 55 00 5
         E-mail: office.wien@ulsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Nov. 4, 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 Sept. 2, 2008, (Bankr. Case No. 4 S 128/08p).


OBRADOVIC TRANSPORTE: Claims Registration Period Ends October 21
----------------------------------------------------------------
Creditors owed money by KEG Obradovic Transporte have until
Oct. 21, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Michael Neuhauser
         Esslinggasse 7
         1010 Wien
         Austria
         Tel: 90 333
         Fax: 90 333 55
         E-mail: wien@snwlaw.at

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

         The Trade Court of Vienna
         Room 1701
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 2, 2008, (Bankr. Case No. 6 S 110/08f).


WIMBERGHOF GASTRO: Claims Registration Period Ends October 27
-------------------------------------------------------------
Creditors owed money by LLC Wimberghof Gastro have until Oct. 27,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Mag. Andreas Meissner
         Feldgasse 6
         4840 Voecklabruck
         Austria
         Tel: 07672/24418
         Fax: 07672/77830
         E-mail: hitzenberger@geocomp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on Nov. 6, 2008, for the
examination of claims at:

         The Land Court of Wels
         Hall 101
         Wels
         Austria

Headquartered in Wels, Austria, the Debtor declared bankruptcy on
Sept. 2, 2008, (Bankr. Case No. 20 S 110/08i).


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


FORTIS NV: To Sell ABN AMRO Stake After EUR11.2BB Cash Injection
----------------------------------------------------------------
Fortis NV said it will sell its interest in ABN AMRO (RFS
Holdings) after the Governments of Belgium, the Netherlands and
Luxembourg agreed to inject EUR11.2 billion in the bank.
Specifically, Belgium will invest EUR4.7 billion in Fortis Bank
(Belgium), the Netherlands will invest EUR4.0 billion in Fortis
Bank Nederland (Holding) NV and Luxembourg will invest EUR2.5
billion in Fortis Banque Luxembourg SA.  Under the agreement, each
government will hold a 49% share in the bank's
respective subsidiaries.

According to Fortis, the sale of the stake in RFS Holdings will
represent the acquired activities of ABN AMRO, excluding Asset
Management (already transferred in the 2nd quarter of 2008).  The
sale, at a price below the acquisition price of EUR24 billion will
lead to an impairment.  The impairment will not impact total
regulatory capital.  However, a sales price below EUR12 billion
would, for that difference, negatively impact core equity, the
bank noted.

The bank, Bloomberg News notes, needs more capital after spending
EUR24.2 billion on ABN Amro assets last year, just as the U.S.
subprime-mortgage market started to collapse.  The Wall Street
Journal described the transaction as Fortis' biggest banking deal
ever.

Due to the change in strategy, the deteriorated business
environment and the decision to further de-risk the balance sheet,
Fortis said total value adjustments are expected of around EUR5
billion after tax in the third quarter, related to, among others,
the deferred tax assets, goodwill on the separately managed asset
managers and the structured credit portfolio.

Within the CDO origination portfolio, the high grade assets are
anticipated to be written down to 25% and the mezzanine and
warehouse positions to 10%.  On average 78% of the total CDO
origination portfolio is written down.  The remaining net exposure
on the CDO origination portfolio is expected to amount to EUR1.1
billion, subject to approval of the bank's external auditors.  In
addition to the impairments on the CDO origination portfolio,
further impairments are expected to be taken on the remainder of
the structured credit portfolio.

In addition, Fortis will impair EUR 1.2 billion of US deferred tax
assets.

Fortis said all the measures will lead to a core equity for Fortis
of around EUR30 billion, EUR9.5 billion above target.  Fortis Bank
Core Tier 1 ratio is estimated at above 9% (Basel I), well in
excess of regulatory minimum.  The total regulatory capital ratio
of Fortis Bank under Basel II is estimated to be around 13%.

Maurice Lippens meanwhile decided to step down from the Fortis
Board of Directors, the bank disclosed.  The new Chairman will be
recruited from outside the company in consultation with the
Belgian government.  In addition, the governments of Belgium, the
Netherlands and Luxembourg will receive significant board
representation in the respective Fortis banks.

Fortis, whose shares are down 71% this year, replaced Friday its
interim chief executive, Herman Verwilst, after he tried
unsuccessfully to reassure investors that the bank remains on
sound footing, WSJ relates.  The bank then named Filip Dierckx,
currently head of the Belgian-Dutch company's banking unit, as its
new CEO, the WSJ report says.

                       About Fortis N.V.

Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers.  The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance.  The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners.  In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited.  As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited.  In July 2008, the Company sold International Asset
Management Limited (IAM).


FORTIS: Fitch Cuts Individual Ratings on Holding Companies to 'D'
-----------------------------------------------------------------
Fitch Ratings has downgraded the ratings of Fortis's main
operating banks, insurance companies and holding companies.

The long-term Issuer Default Ratings of Fortis Bank, Fortis Banque
Luxembourg and Fortis Bank Nederland have been downgraded to 'A+'
from 'AA-'.  The Outlooks are Stable.  At the same time the
Insurer Financial Strength ratings of Fortis Insurance Belgium,
Fortis ASR Levensverzekering and Fortis ASR Schadeverzekering have
been downgraded to 'A+' from 'AA' and placed on Rating Watch
Negative.

The long-term IDR's of the five holding companies - Fortis SA/NV,
Fortis N.V., Fortis Brussels, Fortis Utrecht and Fortis Insurance
NV have been downgraded to 'BBB' from 'AA-'.  The Outlooks are
Stable.

The IDRs of Fortis Bank, Fortis Banque Luxembourg and Fortis Bank
Nederland (Holdings) are now at their support floors, which have
been increased to 'A+' from 'A-' to reflect the capital injections
made by the Belgian, Dutch and Luxembourg governments.  Following
these injections, each government will have a 49% stake in its
domestic bank.  In addition, the Individual Ratings have been
downgraded to 'D' to reflect the effect that recent events have
had on the banks' franchises.  This in turn could reduce the
ability to attract and retain business, which could lead to
earnings pressure.  The fact that the bank will sell its stake in
RFS Holdings will likely generate a significant realized loss and
undermine the banks' strategy.

The downgrades of the ratings of the insurance companies reflect
the agency's concerns on the potential tainting of the group's
insurance business franchise, in particular its long tail
activities such as life insurance and pensions.  The placement of
ratings on RWN reflects uncertainties surrounding the prospective
scope of Fortis Insurance activities.  Fitch expects to resolve
the RWN as soon as the management has clarified its intention to
this respect.

The downgrades of the holding companies reflect the fact they have
not received any support from the governments, which have chosen
to concentrate their efforts on the operating entities.

Fortis Bank
  -- Long-term IDR downgraded to 'A+' from 'AA-', Outlook Stable

  -- Short-term IDR affirmed at 'F1+'

  -- Individual rating downgraded to 'D' from 'B'

  -- Support rating affirmed at '1',

  -- Support Rating Floor upgraded to 'A+' from 'A-' Fortis Banque
     Luxembourg

  -- Long-term IDR downgraded to 'A+' from 'AA-', Outlook Stable

  -- Shor-term IDR affirmed at 'F1+'

  -- Individual rating downgraded to 'D' from 'A/B'

  -- Support rating affirmed at '1',

  -- Support Rating Floor upgraded to 'A+' from 'A-' Fortis Bank
     Nederland (Holdings)

  -- Long-term IDR downgraded to 'A+' from 'AA-', Outlook Stable

  -- Short-term IDR affirmed at 'F1+'

  -- Support rating affirmed at '1',

  -- Support Rating Floor upgraded to 'A+' from 'A-' Fortis Bank
     Nederland

  -- Long-term IDR downgraded to 'A+' from 'AA-', Outlook Stable

  -- Short-term IDR affirmed at 'F1+'

  -- Support rating affirmed at '1',

  -- Support Rating Floor upgraded to 'A+' from 'A-' Fortis
     Insurance Belgium

  -- Insurer Financial Strength downgraded to 'A+' from 'AA',
     Placed on RWN.

  -- Long-term IDR downgraded to 'A' from 'AA-', Placed on RWN.

Fortis ASR Levensverzekering
  -- Insurer Financial Strength downgraded to 'A+' from 'AA',
      Placed on RWN.

  -- Long-term IDR downgraded to 'A' from 'AA-', Placed on RWN.

Fortis ASR Schadeverzekering
  -- Insurer Financial Strength downgraded to 'A+' from 'AA', ]]
      Placed on RWN.

  -- Long-term IDR downgraded to 'A' from 'AA-', Placed on RWN.

Fortis Corporate Insurance N.V.
  -- Insurer Financial Strength downgraded to 'A-' from 'A+',
     Placed on RWN.

Ocidental-Companhia Portuguesa de Seguros de Vida S.A.
  -- Insurer Financial Strength downgraded to 'A' from 'A+',
     Placed on RWN.

Ocidental-Companhia Portuguesa de Seguros S.A.
  -- Insurer Financial Strength downgraded to 'A' from 'A+',
     Placed on RWN.

Companhia Portuguesa de Seguros de Saude S.A.
  -- Insurer Financial Strength downgraded to 'A' from 'A+',
     Placed on RWN.

Fortis Insurance Company (Asia) Ltd
  -- Insurer Financial Strength downgraded to 'A-' from 'A',
     Placed on RWN.

  -- Long-term IDR downgraded to 'BBB+' from 'A-', Placed on RWN.

Fortis SA/NV
  -- Long-term IDR downgraded to 'BBB' from 'AA-', Outlook Stable
  -- Short-term IDR downgraded to 'F3' from 'F1+'

Fortis N.V.
  -- Long-term IDR downgraded to 'BBB' from 'AA-', Outlook Stable
  -- Short-term IDR downgraded to 'F3' from 'F1+'

Fortis Brussels
  -- Long-term IDR downgraded to 'BBB' from 'AA-', Outlook Stable
  -- Short-term IDR downgraded to 'F3' from 'F1+'

Fortis Utrecht
  -- Long-term IDR downgraded to 'BBB' from 'AA-', Outlook Stable
  -- Short-term IDR downgraded to 'F3' from 'F1+'

Fortis Insurance N.V.
  -- Long-term IDR downgraded to 'BBB' from 'AA-', Outlook Stable
  -- Short-term IDR downgraded to 'F3' from 'F1+'


===============
B U L G A R I A
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KREMIKOVTZI AD: Bulgarian State is Biggest Creditor
---------------------------------------------------
The Bulgarian state is Kremikovtzi AD's biggest creditor,
according to a list obtained by Dnevnik daily, Dnevnik.bg reports.
Kremikovtzi racked up debts of about BGN2.37 billion and could
reach BGN2.4 billion as the final list of court-appointed receiver
Anna Milenkova contains several more claims.

Bulgarian state, dnevnik.bg discloses, is owed BGN881 million,
which accounts for 35.6% of the Kremikovtzi's total debt.
Dnevnik.bg relates the bulk of the debt -- BGN699 million -- stems
from the BGN431 million in state aid given at the time the steel
mill was privatized in 1999.

Dnevnik.bg however notes the figure owed to the Bulgarian state
does not include the claims of state-owned national power grid
operator NEK (BGN90.4 million), gas company Bulgargaz
(BGN35 million) and railways operator BDZ (BGN5 million).

Next on the list are the bondholders with Law Debenture Trust
Corporation, the trustee for the Kremikovtzi notes, with BGN692.6
million in claims acknowledged by the UK court, Dnevnik.bg says.

                      About Kremikovtzi

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

As of Dec. 31, 2007, Kremikovtzi AD had around BGN1.63 billion
(US$1.3 billion) in total debts.


KREMIKOVTZI AD: Creditors Elect Two Receivers
---------------------------------------------
FOCUS News Agency reports that creditors of Kremikovtzi AD elected
Tsvetan Bankov and Ana Milenkova as receivers for the plant.

Citing a source of the energy ministry, the report says the
receivers would launch proceedings to terminate bad contracts
inked after the plant was declared insolvent for many assets sold
much cheaper than market prices.

                        About Kremikovtzi

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

As of Dec. 31, 2007, Kremikovtzi AD had around BGN1.63 billion
(US$1.3 billion) in total debts.


=============
D E N M A R K
=============


EBH BANK: Gets Financial Rescue from Nationalbanken
---------------------------------------------------
Danmarks Nationalbank aka Nationalbanken was forced to step in to
secure liquidity at small Danish bank Ebh in its second bailout of
an ailing Danish lender in 10 weeks, Reuters said.

Danmarks Nationalbank aka Nationalbanken --
http://www.nationalbanken.dk/-- is the central bank of Denmark.
It is a non-eurozone member of the European System of Central
Banks (ESCB). The bank issues the Danish currency, the krone.  The
bank was established on Aug. 1, 1818 by King Frederick VI of
Denmark.  The private bank was given a 90-year monopoly on
currency issue, which was extended in 1907 out to 1938.  In 1914,
the National Bank became the sole banker for the Danish
government.  The bank became fully independent of the government
in 1936.  The objective of Danmarks Nationalbank as an independent
and credible institution is to ensure a stable krone.

Ebh Bank a/s (formerly Egnsbank Han Herred A/S) is a Denmark-based
regional bank, active mainly in the Danish region of Han Herred,
north Jutland. The Bank is engaged in the provision of such
services as savings accounts, loan facilities, household and
personal insurance, travel services, as well as pension and
investor services. It operates through its branches in Denmark, as
well as subsidiaries both in Denmark and Germany.


* DENMARK: Banks Scramble to Rescue Smaller Lenders
---------------------------------------------------
Danish banks are rushing to put together a rescue package for
smaller lenders that are struggling to remain liquid as wholesale
funding dries up, The Financial Times' Robert Anderson wrote on
Sept. 24, 2008.

Klaus Willerslev-Olsen, deputy chief executive of the Danish
Banking Association, disclosed that "the banking association and
the central bank are" coming up with a plan to ease the interbank
market function, FT noted.

Reuters said that Denmark's central bank was extending bank's and
mortgage credit institutes' lending facilities due to tight
liquidity conditions.

Nordea, the Nordic region's biggest bank by value, said last week
that it was interested in further acquisitions in Denmark
following its purchase of nine branches from failed Danish bank
Roskilde, Reuters related.

Danish regulators helped Sydbank took over the struggling Bank
Trelleborg in January and earlier this month Sweden's
Handelsbanken reached a deal to take over Lokalbanken
Nordsjaelland, while mortgage lender Nykredit made an agreed bid
for Forstaedernes, FT noted.

In a statement, Danmarks Nationalbank aka Nationalbanken said that
owing to the tight liquidity situation at present, Danmarks
National-bank extends the banks and mortgage credit institutes
lending facilities at Danmarks Nationalbank.

First, a facility is introduced, offering banks and institutes
credit on the basis of their excess capital adequacy.
Second, Danmarks Nationalbank increases the number of assets
accepted as collateral.  The changes take effect as from 26
September 2008.

Danmarks Nationalbank will closely monitor developments with a
view to introducing further measures.  The temporary extension of
the collateral lending facilities is described in more detail
under Rules -– Pledging of collateral at the bank's site.

                            Swap Lines

The Federal Reserve, the Reserve Bank of Australia, Danmarks
Nationalbank, Norges Bank and Sveriges Riksbank announced the
establishment of temporary reciprocal currency arrangements (swap
lines) to address elevated pressures in U.S. dollar short-term
funding markets.  These facilities, like those already in place
with other central banks, are designed to improve liquidity
conditions in global financial markets.  Central banks continue to
work together during this period of market stress and are prepared
to take further steps as the need arises.

The Federal Reserve and Danmarks Nationalbank have agreed on a
swap facility amounting to 5 billion dollar which will expire on
January 30, 2009.

Danmarks Nationalbank auctioned U.S. dollar liquidity on Sept. 26,
2008, with settlement yesterday, September 30.  The maturity of
the loans is 28 days and the loans will be provided against
Nationalbanken's eligible collateral.  A maximum amount of 5
billion dollars will be offered at the auction.  Danmarks
Nationalbank will monitor the need for additional U.S. dollar
auctions.


=============
F I N L A N D
=============


M-REAL CORP: Sells Graphic Papers Business Area to Sappi Ltd.
-------------------------------------------------------------
M-real Corporation signed an agreement to sell its Graphic Papers
Business Area to the South African Sappi Limited for an enterprise
value of EUR750 million.

The transaction consideration consists of EUR500 million in cash
and assumed debt, EUR200 million vendor loan note from Sappi to
M-real and EUR50 million of newly issued shares in Sappi.  After
the closing of the transaction, M-real's net debt will decrease
approximately by EUR630 million.

The sale comprises the Kirkniemi and Kangas mills in Finland, the
Stockstadt mill in Germany and the Biberist mill in Switzerland,
with total capacity of 1.9 million tons.  As part of the
transaction, M-real and Sappi have also entered into a long-term
agreement on the supply of pulp and BCTMP and other smaller
services and supplies.

Kari Jordan, Chairman of the M-real Board of Directors, comments,
"We have taken a major step in our strategic review, and we are
very satisfied to announce this deal.  The transaction will
significantly improve M-real's future prospects and is the first
major step in the European paper industry consolidation in the
21st century.  The operating environment of the industry will
improve which will be beneficial also for M-real as a future
shareholder in Sappi."

The transaction is expected to reduce M-real's annual sales by
approximately EUR1 billion.  The operating result of the units
included in the transaction was about EUR30 million negative in
the first half of 2008.

Headquartered in Espoo, Finland, M-real Corp. --
http://www.M-Real.com/-- produces and distributes coated and
uncoated fine papers for printing and packaging industries.  The
company has operations in Brazil and Mexico.

                        *     *     *

M-real continues to carry a B2 long-term corporate family rating
and a B2 senior unsecured debt rating from Moody's Investor
Service, with negative outlook.

Standard & Poor's rates the company's long-term foreign and
local issuer credit at B+ and its short-term foreign and local
issuer credit at B.  The outlook is negative.


M-REAL CORP: S&P Affirms Corporate Credit Ratings at B-/B/Stable
----------------------------------------------------------------
Standard & Poor's Rating Services has affirmed its 'B-' long-term
and 'B' short-term corporate credit ratings on Finland-based
forest product company M-real Corp.  The outlook is negative.

The affirmation follows the announcement of the disposal of M-
real's graphic paper business to Sappi Ltd. (BB/Stable/B) for
EUR750 million, of which about EUR500 million will be in the form
of cash and debt, EUR200 million a vendor loan note from Sappi,
and EUR50 million in Sappi shares.

"This rating action reflects our view that, although the
transaction will improve M-real's ability to meet debt maturities
in 2009, the company's liquidity position will remain vulnerable,
given the expiration of its revolving credit facility (RCF) in
2009 and large debt maturities in 2010," said S&P's credit analyst
Jacob Zachrison.  "It also reflects the risk of continued near-
term pressure on operating cash flows, resulting from high input
costs, weakening demand, and uncertainty over price increases.
Combined, these factors could lead to difficulties in meeting debt
obligations at the end of 2010."

The ratings continue to reflect M-real's exposure to challenging
market conditions, commoditized products, weak pricing power, and
high and escalating input costs.  They also reflect the company's
weak operating performance, profitability, credit measures, and
refinancing and liquidity risks.  These factors are partly offset
by the group's large and modern asset base, significant
restructuring initiatives, and sizable shares of the European
paperboard and uncoated fine paper markets.  On June 30, 2008,
M-real had adjusted debt of about EUR2.3 billion, including about
EUR86 million in postretirement and leasing liabilities.

Although disposal proceeds have been used to reduce debt, debt
protection measures continued to weaken in the first half of 2008,
with adjusted funds from operations to debt of about 3% for the
previous 12 months.  The company's adjusted EBITDA margin also
weakened to about 5.7% from 6%-7% the previous year, and cash
generation remains under severe pressure, with significant
negative free operating cash flows.

Liquidity resources as of June 30, 2008, (excluding the liquidity
reserves of the 30% owned and financially consolidated Metsa-
Botnia) comprised liquid assets of EUR73 million and the fully
unused EUR500 million committed RCF.  S&P expects the announced
disposal to bring in about EUR400 million in cash.  In addition,
S&P believes that interest-bearing receivables of EUR167 million
(mainly at Metsa Finance), relating largely to internal lending to
Metsa-Botnia, could be reclaimed at short notice.  S&P considers
further potential sources of liquidity, such as additional asset
disposals or an early repayment of the Sappi vendor note currently
unlikely.

On June 30, 2008, reported short-term debt was EUR491 million,
including EUR48 million in outstanding commercial paper and EUR33
million relating to drawings under an RCF at Metsa-Botnia.  Debt
maturities in 2009 totaled EUR322 million on the same date.
Despite lower capital expenditure, S&P expects free operating cash
flow to be negative over the near term.  The company is likely to
meet upcoming debt maturities in 2008 and 2009, but the majority
of debt maturing in 2010, including the RCF, will need to be
refinanced.

"The outlook is negative because of the risks M-real faces with
respect to securing adequate liquidity over the medium term in
light of the 2009 expiration of its RCF, debt maturities in 2010,
and the potential for further deterioration of the paper market,"
said Mr. Zachrison.


M-REAL OYJ: Moody's Says No Rating Change Following Sale
--------------------------------------------------------
Moody's Investors Service noted the announcement made by M-real
(rated B3 with a negative outlook) to take a new major step in its
strategic review initiated in 2006 by divesting its graphic paper
division.  According to the announcement, M-real reached an
agreement with Sappi Ltd. (rated Ba2 with a stable outlook) to
sell graphic paper assets for a consideration of EUR 500 million
in cash and assumed debt, a EUR200 million Loan Note from Sappi
and a EUR 50 million shareholding in Sappi.  M-real's strategic
review regarding its paper businesses, however, continues.

The transaction is expected to close latest during Q1 2009 after
receiving clearance from several authorities and shareholders of
Sappi.

Irrespective of the closing of the proposed transactions, M-real
has impaired assets in the scope of this transaction in the amount
of EUR210 million.  The impairment reduces covenant headroom
before closing of the transaction under its EUR500 million
revolving credit facility maturing December 2009 (pro-forma net
gearing 96%, equity ratio 41%).  Proceeds from the disposal are
earmarked for debt repayment, but funds will not flow until
closing which is expected latest during first quarter of 2009.  On
a pro-forma basis this reduces the gearing to 64% (120% covenant
maximum) and raises the equity ratio to 47% (30% minimum).

Though this transaction may bring some immediate benefits to the
liquidity profile of M-Real, which has been a concern of the
agency, Moody's notes that there is a degree of uncertainty
whether the main transaction with Sappi concludes as presented due
to various funding risks (Moody's understands that the equity
portion has reportedly been fully underwritten).  In addition
approvals need to be obtained, among those Sappi EGM consent and
EU competition clearance.  Moody's also notes that some time will
be required to establish the resiliency of the new business set-up
of the company.

In the forthcoming months, Moody's will assess (i) the likelihood
and progress of the transaction being financed and approved by
relevant competition authorities, (ii) M-real's new strategy and
business plan for the downsized group as well as (iii) the
assessment of the evolving capital structure subsequent to the
receipt of the disposal proceeds against the macroeconomic and
industry environment.

Although Moody's believes that M-real's intention to sell its
underperforming graphic paper assets sheds an important cash-
draining division, the agency awaits the establishment of a solid
track record that proves the group's new set-up with a focus on
two operating divisions (consumer packaging and office paper) as
well as the strategic shareholding in two key investments (Metsa
Botnia and PVO) to be viable.  Upward pressure on the rating
Moody's would only develop over time following the successful
closing of the transaction and the assessment of such a track
record. Any future positive movement of the rating would likely be
first a stabilization of the outlook.

However, should the transaction fail to materialise given several
conditions precedent to be met, Moody's will assess the default
probability of M-real with the current set-up, i.e. including the
graphic paper division, while at the same time analysing potential
recovery scenarios.  This assessment could well result in a rating
downgrade.

The last rating action for M-real has been on Oct. 26, 2007, when
Moody's affirmed M-real's B3 rating and changed the outlook to
negative from stable.

M-real, headquartered in Espoo, Finland, is among Europe's largest
integrated paper and forest products companies with sales of
EUR4.4 billion and an operating loss of EUR120 million for full
year 2007.  Core activities include consumer packaging, graphic
papers, and office papers.  At end-June 2008, M-real employed a
staff of more than 9,000.


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


1A REIFEN-DISCOUNT: Claims Registration Period Ends October 9
-------------------------------------------------------------
Creditors of 1A Reifen-Discount GmbH have until Oct. 9, 2008, to
register their claims with court-appointed insolvency manager Dr.
Rainer Eckert.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Oct. 30, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hameln
         Hall 106
         Zehnthof 1
         31785 Hameln
         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. Rainer Eckert
         Arthur-Menge-Ufer 5
         30169 Hannover
         Germany
         Tel: 0511/26094450
         Fax: 0511/26094451
         E-mail: eckert-hannover@rae-eckert.de
         Website: www.rae-eckert.de

The District Court of Hameln opened bankruptcy proceedings against
1A Reifen-Discount GmbH on Aug. 13, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         1A Reifen-Discount GmbH
         Philipp-Reis-Str. 9
         31832 Springe
         Germany


DE-TE-MA MOTORSPORT: Creditors' Meeting Slated for October 9
------------------------------------------------------------
The court-appointed insolvency manager for De-Te-Ma Motorsport
GmbH, Prof. Rolf Rattunde will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 10:05
a.m. on Oct. 9, 2008.

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

         The District Court of Neubrandenburg
         Hall 1
         Fr.-Engels-Ring 15-18
         Neubrandenburg
         Germany

The Court will also verify the claims set out in the insolvency
manager's report at 10:05 a.m. on Jan. 15, 2009, at the same
venue.

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

The insolvency manager can be reached at:

         Prof. Rolf Rattunde
         Kurfuerstendamm 26a
         10719 Berlin
         Germany

The District Court of Neubrandenburg opened bankruptcy proceedings
against De-Te-Ma Motorsport GmbH on Aug. 26, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         De-Te-Ma Motorsport GmbH
         Alt-Moabit 109
         10559 Berlin
         Germany


FRESENIUS: US$500 Mil. Loan Increase Does Not Affect S&P's Ratings
------------------------------------------------------------------
Standard & Poor's Ratings Services said that the issue and
recovery ratings on Fresenius SE's (BB/Negative/--) various debt
facilities -- including the recovery rating of '1' and issue
rating of 'BBB-' on the senior credit facility -- remain unchanged
following the proposed increase by US$500 million of the senior
credit facility.

S&P expects the additional US$500 million equivalent of term loan
B issued by Fresenius U.S. Finance I Inc. to be used for a partial
repayment of the bridge facility by the same amount.


KSH-HOTELBETRIEBSGESELLSCHAFT: Creditors' Meeting Set October 9
---------------------------------------------------------------
The court-appointed insolvency manager for KSH-
Hotelbetriebsgesellschaft mbH, Dr. Michael Jaffe will present his
first report on the Company's insolvency proceedings at a
creditors' meeting at 9:30 a.m. on Oct. 9, 2008.

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

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

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

Creditors have until Nov. 10, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Dr. Michael Jaffe
         Franz-Joseph-Str. 8
         80801 Munich
         Germany
         Tel: 089/255487-00
         Fax: 089/255487-10

The District Court of Munich opened bankruptcy proceedings against
KSH-Hotelbetriebsgesellschaft mbH on Sept. 1, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         KSH-Hotelbetriebsgesellschaft mbH
         Johann-Clanze-Str. 112
         81369 Munich
         Germany


LEAR CORP: S&P Lifts US$1 Bil. Facility Issue Level Rating to 'BB'
----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its issue-level
rating on Lear Corp.'s US$1 billion senior secured term loan
facility (US$988 million outstanding) to 'BB' from 'BB-' and
revised the recovery rating to '1' from '2'.  The recovery rating
indicates the expectation of very high recovery in the event of a
payment default.  The action follows the company's reduction of
its US$1.7 billion senior secured revolving credit facility to
US$1.3 billion until March 2010 and then US$822 million thereafter
until the final maturity of January 2012.  S&P does not rate the
senior secured revolving credit facility.

In addition, S&P lowered its issue-level ratings on Lear's senior
unsecured notes to 'B' from 'B+' and revised the recovery rating
to '5' from '4', indicating the expectation of modest recovery in
the event of a payment default.

Ratings List

Lear Corp.
Corporate credit rating                   B+/Stable/--

Ratings Raised
                                           To         From
                                           --         ----

US$1 bil. sr. secured term loan             BB         BB-
   Recovery rating                         1          2

Ratings Lowered

Sr. unsecured notes                       B          B+
   Recovery rating                         5          4


MAX TWO: S&P Drops Rating on EUR100 Million Senior Notes to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term debt
rating on the EUR100 million senior secured notes due 2024 issued
by Max Two Ltd. to 'BB+' from 'BBB-'.  S&P removed the rating from
CreditWatch, where it was placed with negative implications on
June 18, 2008.  The outlook is stable.

"The downgrade reflects a combination of structural weaknesses
compared with its peers and the historic underperformance at some
of the wind farms," said S&P's credit analyst Timon Binder.
Although 2007 was an average wind year, debt service cover ratios
for two wind farms were below the expected minimum 1.40x
threshold.  One of the German wind farms, for example, has
underperformed for a third consecutive year, reporting debt
service cover ratios below the expected minimum of 1.40x due to
lower-than-expected wind supply and higher-than-expected repair
costs.

"We expect that in the medium to longer term, and, in particular,
considering future tax payments under the new German tax regime,
coverage ratios for certain wind farms will be most likely below
the forecast minimum of 1.40x and therefore no longer compatible
with a 'BBB-' rating," said Mr. Binder.

The downgrade also reflects a lack of visibility regarding the
project's long-term financial performance.  The medium-term
liquidity plan, dividend policy, and expected repair costs are
carefully managed by the project's main sponsor, Germany-based
EnergieKontor AG on an ongoing basis.  However, the long-term
expectations regarding the repair and operating expenses have not
been updated since financial close in 2004, which introduces
additional uncertainty, given the increased repair costs at some
of the wind farms compared with original expectations.

The current performance of the Breeze One wind farms is
satisfactory.  In the first six months of 2008, revenue was about
12% above projections, driven by favorable wind conditions in
Germany and Portugal.  All individual wind farms exceeded their
projected energy production. The availability of the turbines was
also in line with the expected average (97%) at between 95.3% and
99.3%.  By the end of August 2008, 100% of the wind farms had
already been commissioned, therefore eliminating exposure to
construction risk.

Max Two Ltd. is a special-purpose vehicle acting as issuer for the
Breeze One transaction, and has financed and refinanced eight wind
farms in Germany and Portugal.


MITO GMBH: Creditors' Meeting Slated for October 9
--------------------------------------------------
The court-appointed insolvency manager for MITO GmbH, Hans-A.
Brauer will present his first report on the Company's insolvency
proceedings at a creditors' meeting at 12:00 p.m. on Oct. 9, 2008.

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

         The District Court of Cochem
         Hall 100 I.OG
         Ravenestrasse 39
         56812 Cochem
         Germany

The Court will also verify the claims set out in the insolvency
manager's report at 9:00 a.m. on Nov. 20, 2008, at the same venue.

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

The insolvency manager can be reached at:

         Hans-A. Brauer
         Jahnstrasse 1
         54550 Daun
         Germany
         Tel: 06592-7061
         Fax: 06592-7344

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

The Debtor can be reached at:

         MITO GmbH
         Hunsrueckstrasse 1-3
         56858 Altstrimmig
         Germany


PRO GAST: Claims Registration Period Ends October 6
---------------------------------------------------
Creditors of pro Gast Verwaltungs GmbH have until Oct. 6, 2008, to
register their claims with court-appointed insolvency manager
Dr. Frank Kebekus.

Creditors and other interested parties are encouraged to attend
the meeting at 9:25 a.m. on Oct. 27, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Duesseldorf
         Meeting Hall A 388
         Muehlenstrasse 34
         40213 Duesseldorf
         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. Frank Kebekus
         Carl-Theodor-Str. 1
         40213 Duesseldorf
         Germany

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

The Debtor can be reached at:

         pro Gast Verwaltungs GmbH
         Attn: Hans Josef Peiffer, Manager
         Auf'm Hennekamp 101
         40225 Duesseldorf
         Germany


R.N. AUBELE: Claims Registration Period Ends October 6
------------------------------------------------------
Creditors of R.N. Aubele GmbH have until Oct. 6, 2008, to register
their claims with court-appointed insolvency manager Dr. Carlos
Mack.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 22, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Augsburg
         Law Courts
         Meeting Room 162
         Alten Einlass 1
         86150 Augsburg
         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. Carlos Mack
         Brienner Str. 21
         80333 Muenchen
         Germany

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

The Debtor can be reached at:

         R.N. Aubele GmbH
         Gutenbergstr. 15
         86399 Bobingen
         Germany


RSE GMBH: Claims Registration Period Ends October 6
---------------------------------------------------
Creditors of RSE GmbH have until Oct. 6, 2008, to register their
claims with court-appointed insolvency manager Markus Ernestus.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 17, 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 Mannheim
         Area 232
         Second Floor
         West Wing
         Schloss
         68149 Mannheim
         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:

         Markus Ernestus
         O 3, 9-12
         68161 Mannheim
         Germany
         Tel: 0621/16680

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

The Debtor can be reached at:

         RSE GmbH
         Attn: Domenico Morrone, Manager
         C1, 8
         68159 Mannheim
         Germany


SCHOKOHOLIX GMBH: Creditors Meeting Slated for October 7
--------------------------------------------------------
The court-appointed insolvency manager for Schokoholix GmbH,
Christian Koehler-Ma, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at
11:05 a.m. on Oct. 7, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 11:05 a.m. on Dec. 2, 2008, at the same venue.

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

The insolvency manager can be reached at:

         Christian Koehler-Ma
         Kurfuerstendamm 26 a
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Schokoholix GmbH on Aug. 15, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Schokoholix GmbH
         Wilhelminenhofstr. 83-86
         12459 Berlin
         Germany


SCHUETZ GMBH: Claims Registration Period Ends October 7
-------------------------------------------------------
Creditors of Schuetz GmbH Geratebau Reinigungsmittel have until
Oct. 7, 2008, to register their claims with court-appointed
insolvency manager Stefan Herrmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:05 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 Schweinfurt
         Meeting Hall 22
         Eingang Friedenstr. 2
         Schweinfurt
         Germany

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

The insolvency manager can be reached at:

         Stefan Herrmann
         Heinestr. 7b
         97070 Wuerzburg
         Germany
         Tel: 0931/359800
         Fax: 0931/359 8050

The District Court of Schweinfurt opened bankruptcy proceedings
against Schuetz GmbH Geratebau Reinigungsmittel on Aug. 14, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Schuetz GmbH Geratebau Reinigungsmittel
         Dr. Georg Schaferstr. 14
         97762 Hammelburg
         Germany


SOFTWAREENTWICKLUNG HANESCH: Claims Registration Ends Oct. 7
------------------------------------------------------------
Creditors of SEH Softwareentwicklung Hanesch GmbH have until
Oct. 7, 2008, to register their claims with court-appointed
insolvency manager Holger Riedel.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Nov. 18, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Osnabrueck
         Hall N 302
         Kollegienwall 10
         49074 Osnabrueck
         Germany

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

The insolvency manager can be reached at:

         Holger Riedel
         Moeserstrasse 31
         49074 Osnabrueck
         Germany
         Tel: 0541/21002
         Fax: 0541/259255
         E-mail: info-riedel-insolvenz@osnanet.de

The District Court of Osnabrueck opened bankruptcy proceedings
against SEH Softwareentwicklung Hanesch GmbH on Sept. 8, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         SEH Softwareentwicklung Hanesch GmbH
         Attn: Uwe Hanesch, Manager
         Berthold-Brecht-Strasse 75
         49088 Osnabrueck
         Germany


STEVO GMBH: Claims Registration Period Ends October 10
------------------------------------------------------
Creditors of Stevo GmbH have until Oct. 10, 2008, to register
their claims with court-appointed insolvency manager Andreas
Sontopski.

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

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Hall 13 B
         Gerichtsstr. 2-6
         48149 Muenster
         Germany

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

The insolvency manager can be reached at:

         Andreas Sontopski
         Gnoiener Platz 10
         48493 Wettringen
         Germany
         Tel: 02557/9384-0
         Fax: +492557938450

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

The Debtor can be reached at:

         Stevo GmbH
         Harmate 12
         48683 Ahaus
         Germany


TEX CONSULT: Claims Registration Period Ends October 6
------------------------------------------------------
Creditors of TEX Consult GmbH have until Oct. 6, 2008, to register
their claims with court-appointed insolvency manager Dirk
Oelbermann.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Nov. 6, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Syke
         Hall 112
         Hauptstr. 5A
         28857 Syke
         Germany

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

The insolvency manager can be reached at:

         Dirk Oelbermann
         Ostertorsteinweg 74/75
         28203 Bremen
         Germany
         Tel: (0421)792 57-0
         Fax: (0421)792 57-57

The District Court of Syke opened bankruptcy proceedings against
TEX Consult GmbH on Sept. 8, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         TEX Consult GmbH
         Attn: Stefan Thomas, Manager
         Stuhrbaum 67 A
         28816 Stuhr
         Germany


TORO AUTOMATENBETRIEBS: Claims Registration Period Ends Oct. 6
--------------------------------------------------------------
Creditors of TORO Automatenbetriebs GmbH have until
Oct. 6, 2008, to register their claims with court-appointed
insolvency manager Dr. Thilo Streck.

Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on Nov. 6, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Dr. Thilo Streck
         Neuer Wall 86
         20354 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against TORO Automatenbetriebs GmbH on Aug. 13, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         TORO Automatenbetriebs GmbH
         Attn: Thomas Schommler, Manager
         Bürgerweide 36
         20535 Hamburg
         Germany


V-TECHANDELS + SERVICE: Claims Registration Period Ends Oct. 7
--------------------------------------------------------------
Creditors of V-TecHandels + Service GmbH have until Oct. 7, 2008,
to register their claims with court-appointed insolvency manager
Daniel A.C. Brosch.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 13, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Memmingen
         Meeting Hall 115
         Ground Floor
         Buxacher Str. 6
         Memmingen
         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:

         Daniel A.C. Brosch
         Kanzlei Poellmann
         Prannerstr. 11
         80333 Munich
         Germany
         Tel: 089/33008090
         Fax: 089/330080999

The District Court of Memmingen opened bankruptcy proceedings
against  V-TecHandels + Service GmbH on Sept. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         V-TecHandels + Service GmbH
         Attn: Joachim Veit, Manager
         Kneippstr. 4
         87700 Memmingen
         Germany


ZONI TROCKENBAU: Claims Registration Period Ends October 9
----------------------------------------------------------
The court-appointed insolvency manager for Zoni Trockenbau GmbH,
Christoph Rosenmueller will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 11:40
a.m. on Oct. 9, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 11:35 a.m. on Dec. 18, 2008, at the same
venue.

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

The insolvency manager can be reached at:

         Christoph Rosenmueller
         Berliner Str. 117
         10713 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Zoni Trockenbau GmbH on Aug. 28, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Zoni Trockenbau GmbH
         Glasgower Str. 25
         13349 Berlin
         Germany


=============
I C E L A N D
=============


* ICELAND: Faces Risks Due to Heavy Foreign Markets Exposure
------------------------------------------------------------
Iceland's small, open economy is always believed to withstand
world-wide market turmoil, The Wall Street Journal writes.
However, the country's heavy exposure to foreign markets and huge
external imbalances pose risks.  Icelanders, the Journal reports,
are living well above their means.  James Knightley, a London-
based economist at ING, said he agrees that Iceland's economy soon
faces recession, forecasting a 0.9% fall in gross domestic product
next year, after 0.7% growth this year, the Journal reports.

Since the credit crunch began in summer of 2007, the country's
currency, the krona, has lost nearly half its value against the
euro, hitting its weakest point ever on Sept. 25, 2008, at 136.25
kronur to the euro, the report notes.

Credit-default-swap spreads for the debt of some of Iceland's
major banks, skyrocketed to over 10 percentage points last week,
the Journal says.  The krona rose 3% against the euro and 2%
against the dollar on Sept. 26, 2008, while credit-default swaps
narrowed by around 10% over news of a plan to free U.S. balance
sheets of bad debt.

Analysts say much will depend on how well major international
financial authorities restore confidence to the global credit
market, the Journal relates.  But monetary management in Iceland
-- as well as in countries like Turkey, South Africa and Hungary,
with similar debt problems -- will also play a role, the Journal
relates, citing Lars Christensen, analyst at Danske Bank in
Copenhagen.

The Journal observes that price increases and extremely tight
monetary policy has been choking demand from Iceland's consumers.
Private consumption fell at an annual rate of 3.2% in the second
quarter.

However, providing the currency stabilizes, the economic slowdown
in the coming years is expected to reduce inflationary pressure,
according to the Journal.  This in turn will likely allow the
central bank to eventually ease monetary policy.

The challenge is whether Iceland's banks can make it through the
financial turbulence without the Icelandic authorities needing to
step in, the report continues.


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


* IRELAND: Falls Into Recession; Hit by Housebuilding Collapse
--------------------------------------------------------------
The Irish Republic's economy has fallen into recession after
shrinking for a second quarter in succession, BBC News reports.
This is Ireland's first experience of a recession since 1983.  The
Central Statistics Office (CSO) said gross domestic product (GDP)
had contracted by 0.5% in the three months to the end of June,
according to the report.  The economy had shrunk by 0.3% in the
first quarter of the year.

Technically, a recession is defined as two or more successive
quarters of negative growth, the report says.

BBC comments that the Irish economy is now facing its most
difficult period since high unemployment and emigration hit in the
early 1980s.

According to Pat McArdle, Chief economist at Ulster Bank, "there
is going to be a further slowdown in the third quarter of this
year, and this will be even bigger than the slowdown [] seen so
far," BBC relates.  Ireland is the first eurozone economy to slip
into recession this year.

Earlier this month, the Economic and Social Research Institute
predicted the Irish economy would contract by 0.4% over the year
after growing by 6% last year, the report says.  The Irish data,
based on the report, showed consumer spending in volume terms was
1.4% lower compared with the same period of the previous year.
Capital investment was also 18.8% lower in the quarter compared
with 2007.  Industrial output was ahead by 1% on the same quarter
in 2007. However, the output of the construction sector fell by
12.2% over the same period.

A government spokesman said: "As expected, lower levels of new
house building had a major restraining influence on growth in the
second quarter, as is evident from the very weak investment
figures.

BBC noted that the country has enjoyed a boom since the late
1990s, with multinationals arriving to take advantage of one of
the lowest corporate tax rates in Europe.

Bloxham Stockbrokers chief economist Alan McQuaid said: "Although
the domestic side of the economy is contracting at a significant
rate, the external side -- the multinationals -- is holding up
quite well, but one would have to question how long that's going
to last," the report adds.


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


IT HOLDING: Deteriorating Credit Cues S&P's Negative Outlook Shift
------------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook to
negative from stable on Italy-based fashion company IT Holding
SpA, reflecting a deterioration in credit protection metrics.  At
the same time, Standard & Poor's affirmed its 'B-' long-term
corporate credit rating on the company.

In addition, S&P raised its senior unsecured issue rating on the
EUR185 million senior secured notes issued by IT Holding Finance
S.A. to 'CCC+' from 'CCC'.  The rating is one notch below the
corporate credit rating on IT Holding, as opposed to two notches
previously, reflecting a significantly reduced amount of priority-
ranking debt in the company's capital structure.  The recovery
rating was also revised to '5' from '6', indicating S&P's
expectation of modest (10%-30%) recovery for senior noteholders in
the event of a payment default.

"The outlook revision reflects ITH's excessive financial leverage
after operating profits deteriorated in the quarter ended June 30,
2008," said Standard & Poor's credit analyst Diego Festa.

"It also reflects ITH's weakening liquidity position, which is
negatively affected by the company's increasing reliance on short-
term debt, most of which is uncommitted, and the risk of breaching
bank loan covenants in 2008."

These factors mean that near-term liquidity is heavily dependent
on free cash flow generation and continued bank support.  In the
12 months ended June 2008, the ratio of gross debt to EBITDA,
adjusted for operating leases, investments in collection
development, and the post-tax unfunded pension deficit, was 10.8x,
up from 9.3x in the same period of 2007.

"The negative outlook reflects the possibility that ITH's
operating underperformance may not be limited to just one
quarter," Mr. Festa added.  "The drag on group sales could prevail
over coming collections, chiefly led by weakening consumer
confidence in key markets such as Europe."

The ratings could be lowered if a liquidity issue arises and if
operating underperformance deepens, with the ratio of adjusted
EBITDA to interest remaining persistently below 1.5x (1.2x in the
12 months ended June 30, 2008).  Steady operating performance is
key for IT Holding to maintain credibility in its banking
relationships given its increased reliance on short-term
financing.

The outlook could be revised to stable if the company's second-
quarter 2008 performance proves to be an anomaly.  IT Holding's
liquidity position also has to improve, with reduced reliance on
uncommitted credit lines, an improved maturity profile, and better
headroom under the term loan covenants.


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


ALMAZ STROY: Creditors Must File Claims by November 12
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Almaz Stroy Temp insolvent.

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

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


BUILDING-SERVICE LLP: Claims Deadline Slated for November 12
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Building-Service insolvent.

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

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


CRONA LIMITED: Claims Filing Period Ends November 11
----------------------------------------------------
LLP Company Crona Limited has gone into liquidation.  Creditors
have until Nov. 11, 2008, to submit written proofs of claims to:

         LLP Company Crona Limited
         Kisanov Str. 17
         Almaty
         Kazakhstan


KURYLYS GAS: Creditors' Claims Due on November 11
-------------------------------------------------
LLP Kurylys Gas Aksai has gone into liquidation.  Creditors have
until Nov. 11, 2008, to submit written proofs of claims to:

         LLP Kurylys Gas Aksai
         Datov Str. 48
         Atyrau
         Kazakhstan
         Tel: 8 (7122) 35-53-14


LEONIS INCORPORATED: Claims Registration Ends November 11
---------------------------------------------------------
LLP Leonis Incorporated LLC has gone into liquidation.  Creditors
have until Nov. 11, 2008, to submit written proofs of claims to:

         LLP Leonis Incorporated LLC
         Baiseitova Str. 49
         Almaty
         Kazakhstan


OAZIS DELTA: Creditors Must File Claims by November 4
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau has
declared LLP Oazis Delta 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


PROMYSHLENNYE TECHNOLOGIYI: Claims Deadline Slated for Nov. 12
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Industrial Technologies Promyshlennye
Technologiyi insolvent.

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

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Office 105
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 57-83-69


TUKISTAN SHARUASHYLYK: Claims Filing Period Ends November 12
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Tukistan Sharuashylyk Baskarmasy insolvent.

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

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


YAKSART-PETROLEUM LLP: Creditors' Claims Due on November 12
-----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP Yaksart- Petroleum 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) 4-71-01
              8 (72422) 4-98-56


YAKSART-SHOW-BUSINESS LLP: Claims Registration Ends November 12
---------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP Yaksart-Show-Business 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) 4-71-01
              8 (72422) 4-98-56



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


BATKEN NEFTE: Creditors Must File Claims by October 26
------------------------------------------------------
LLC Oil and Gas Company Batken Nefte Gas Plus has shut down.
Creditors have until Oct. 26, 2008, to submit written proofs of
claim to:

         LLC Oil and Gas Company Batken Nefte Gas Plus
         Koshevoi Str. 2
         Bishkek
         Kyrgyzstan


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


E-MAC DE 2006-II: S&P Cuts Class D, E, F Notes Ratings to BB/B/B
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its credit ratings
on the class B, C, D, E, and F notes issued by E-MAC DE 2006-II
B.V. and the class B, C, D, and E notes issued by E-MAC DE 2007-I
B.V.  At the same time, S&P removed all these classes from
CreditWatch with negative implications and affirmed its ratings
on the class A1 and A2 notes in both transactions.

The rating actions follow full credit and cash flow analyses of
the most recent loan-level information for both transactions,
dating from the August interest payment date.

The pool performances in both transactions continue to deteriorate
as delinquencies increase.  Performance data as of August 2008
shows that since May 2008 loans more than 90 days in arrears
increased to 4.7% from 3.7% in E-MAC 2006-II and to 2.8% from 2%
in E-MAC 2007-I.  At the same time, total delinquencies have
increased for E-MAC 2006-II to 11.2% in August from 10% in May and
for E-MAC 2007-I to 9.5% from 7.2% over the same period.

Another major concern in these transactions is the worsening
credit quality of Residential Capital LLC (CCC+/Negative/C), the
parent company of the servicer/originator, GMAC-RFC Bank GmbH (not
rated).  Additionally, S&P is concerned about the uncertainty of
the cost that the subservicer or any replacement servicer would
charge for servicing the type of mortgage product backing this
pool should the current servicer become insolvent.

S&P considers in its assumptions that any subservicer would
require higher servicing fees due to the high and increasing
number of delinquent loans in these pools.

S&P placed the ratings in these transactions on CreditWatch
negative on July 29.

Ratings List:

E-MAC DE 2006-II B.V.

  -- EUR703.5 Million Mortgage-Backed Floating-Rate Notes

Ratings Lowered And Removed From CreditWatch Negative:

Class      To            From
-----      --            ----
  B         A         AA/Watch Neg
  C         BBB       A/Watch Neg
  D         BB        BBB/Watch Neg
  E         B         BBB-/Watch Neg
  F         B         BB/Watch Neg

Ratings Affirmed:

A1         AAA
A2         AAA


E-MAC DE 2007-I: S&P Lowers Ratings on Class D and E Notes to BB/B
------------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its credit ratings
on the class B, C, D, E, and F notes issued by E-MAC DE 2006-II
B.V. and the class B, C, D, and E notes issued by E-MAC DE 2007-I
B.V.  At the same time, S&P removed all these classes from
CreditWatch with negative implications and affirmed its ratings
on the class A1 and A2 notes in both transactions.

The rating actions follow full credit and cash flow analyses of
the most recent loan-level information for both transactions,
dating from the August interest payment date.

The pool performances in both transactions continue to deteriorate
as delinquencies increase.  Performance data as of August 2008
shows that since May 2008 loans more than 90 days in arrears
increased to 4.7% from 3.7% in E-MAC 2006-II and to 2.8% from 2%
in E-MAC 2007-I.  At the same time, total delinquencies have
increased for E-MAC 2006-II to 11.2% in August from 10% in May and
for E-MAC 2007-I to 9.5% from 7.2% over the same period.

Another major concern in these transactions is the worsening
credit quality of Residential Capital LLC (CCC+/Negative/C), the
parent company of the servicer/originator, GMAC-RFC Bank GmbH (not
rated).  Additionally, S&P is concerned about the uncertainty of
the cost that the subservicer or any replacement servicer would
charge for servicing the type of mortgage product backing this
pool should the current servicer become insolvent.

S&P considers in its assumptions that any subservicer would
require higher servicing fees due to the high and increasing
number of delinquent loans in these pools.

S&P placed the ratings in these transactions on CreditWatch
negative on July 29.

Ratings List:

E-MAC DE 2007-I B.V.

  -- EUR569.9 Million Mortgage-Backed Floating-Rate Notes

Ratings Lowered And Removed From CreditWatch Negative:

Class      To            From
-----      --            ----
   B        A          A/Watch Neg
   C        BBB        A/Watch Neg
   D        BB         BBB/Watch Neg
   E        B          BB/Watch Neg

Ratings Affirmed:

A1         AAA
A2         AAA


===============
P O R T U G A L
===============


MAX TWO: S&P Drops Rating on EUR100 Million Senior Notes to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term debt
rating on the EUR100 million senior secured notes due 2024 issued
by Max Two Ltd. to 'BB+' from 'BBB-'.  S&P removed the rating from
CreditWatch, where it was placed with negative implications on
June 18, 2008.  The outlook is stable.

"The downgrade reflects a combination of structural weaknesses
compared with its peers and the historic underperformance at some
of the wind farms," said S&P's credit analyst Timon Binder.
Although 2007 was an average wind year, debt service cover ratios
for two wind farms were below the expected minimum 1.40x
threshold.  One of the German wind farms, for example, has
underperformed for a third consecutive year, reporting debt
service cover ratios below the expected minimum of 1.40x due to
lower-than-expected wind supply and higher-than-expected repair
costs.

"We expect that in the medium to longer term, and, in particular,
considering future tax payments under the new German tax regime,
coverage ratios for certain wind farms will be most likely below
the forecast minimum of 1.40x and therefore no longer compatible
with a 'BBB-' rating," said Mr. Binder.

The downgrade also reflects a lack of visibility regarding the
project's long-term financial performance.  The medium-term
liquidity plan, dividend policy, and expected repair costs are
carefully managed by the project's main sponsor, Germany-based
EnergieKontor AG on an ongoing basis.  However, the long-term
expectations regarding the repair and operating expenses have not
been updated since financial close in 2004, which introduces
additional uncertainty, given the increased repair costs at some
of the wind farms compared with original expectations.

The current performance of the Breeze One wind farms is
satisfactory.  In the first six months of 2008, revenue was about
12% above projections, driven by favorable wind conditions in
Germany and Portugal.  All individual wind farms exceeded their
projected energy production. The availability of the turbines was
also in line with the expected average (97%) at between 95.3% and
99.3%.  By the end of August 2008, 100% of the wind farms had
already been commissioned, therefore eliminating exposure to
construction risk.

Max Two Ltd. is a special-purpose vehicle acting as issuer for the
Breeze One transaction, and has financed and refinanced eight wind
farms in Germany and Portugal.


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


BASHKIR-AGRO-PROM-DOR-STROY: Claims Filing Period Ends Oct. 19
--------------------------------------------------------------
Creditors of CJSC Bashkir-Agro-Prom-Dor-Stroy have until
Oct. 19, 2008, to submit proofs of claims to:

         A. Shaykhetdinov
         Temporary Insolvency Manager
         Frontovykh Brigad Str. 48/5
         450043 Ufa
         Bashkortostan
         Russia

The Arbitration Court of Bashkortostan will convene at 10:00
a.m. on Nov.29, 2008, to hear the company's bankruptcy
supervision procedure. The case is docketed under Case No.
A07-3627/2007-G-SVI.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Bashkir-Agro-Prom-Dor-Stroy
         Ufimskoe shosse 43
         450081 Ufa
         Bashkortostan
         Russia


FINANCE LEASING: Moody's Lowers Debt Ratings to Ba3
---------------------------------------------------
Moody's Investors Service has downgraded the long-term global
scale foreign and local currency issuer and debt ratings of
Finance Leasing Company to Ba3 from Ba2.  The Not Prime short-term
ratings have been affirmed.  Concurrently, Moody's Interfax Rating
Agency downgraded FLC's long-term national scale rating to Aa3.ru
from Aa2.ru. Moscow-based Moody's Interfax is majority-owned by
Moody's, a leading global rating agency.  The outlook on the long-
term global scale ratings is negative, while the national scale
rating carries no specific outlook.

According to Moody's and Moody's Interfax, the downgrades have
been prompted by the recent difficult conditions in the Russian
air carrier sector, which -- along with the high single-name and
industry concentration in FLC's assets -- have been weighing on
the company's asset quality and the performance of its leasing
book, in particular.  In addition, the rapid leveraging of the
company's balance sheet over the past year has not been adequately
supported by asset-liability management systems and procedures and
has therefore exposed the company to notable refinancing risks.
Moody's also cautions that certain corporate governance issues may
pose a potential threat to the company's asset quality and
liquidity profile going forward.

As a result of these concerns, Moody's has lowered the company's
Baseline Credit Assessment to 17 from 16 (on a scale of 1 to 21,
where 1 represents the lowest credit risk).  FLC's Baseline Credit
Assessment forms one of its key rating inputs under Moody's
methodology for government-related issuers (GRIs). The company's
other GRI rating inputs remain unchanged: Moody's assessment of
medium state support and high dependence.

Moody's will continue to closely monitor the performance of the
company's leasing book and the overall asset quality and liquidity
profiles.  The negative outlook on the global scale ratings
reflects the potential for a further downgrade in the event of a
further leveraging of FLC's business, as currently implied by the
strategy, or a further deterioration in asset quality, such as
might arise from its weak corporate governance profile.

Headquartered in Moscow, Russia, Finance Leasing Company reported
shareholders' equity of US$446 million, total assets of US$766
million and net income of US$6.7 million as at year-end 2007. The
company's lease portfolio includes 14 Russian civil aircraft which
the company has leased to several Russian air carriers.


KALININGRADSKIY WOODWORKING: Names I. Melnikov to Manage Assets
----------------------------------------------------------------
The Arbitration Court of Kaliningrad appointed I. Melnikov as
Insolvency Manager for OJSC Kaliningradskiy Woodworking Plant
(TIN 3904052664, RVC 390401001).  He can be reached at:

         I. Melnikov
         Poltavskaya Str. 5
         Kaliningrad
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A21-72/2008.

The Court is located at:

         The Arbitration Court of Kaliningrad
         Rokossovskogo Str. 2
         Kaliningrad
         Russia

The Debtor can be reached at:

         OJSC Kaliningradskiy Woodworking Plant
         Gavrilenko Str. 33
         236019 Kaliningrad
         Russia


KORFOVSKIY DISTILLERY: Creditors Must File Claims by November 19
----------------------------------------------------------------
Creditors of LLC Korfovskiy Distillery have until Nov. 19, 2008,
to submit proofs of claims to:

         V. Veselkov
         Insolvency Manager
         Post User Box 6/12
         Central Post Office
         680000 Khabarovsk
         Russia

The Arbitration Court of Khabarovsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A73–3504/2007-38.


KUBANSKIY STURGEON: Creditors Must File Claims by November 19
-------------------------------------------------------------
Creditors of FSUE Kubanskiy Sturgeon Fish Hatchery have until
Nov. 19, 2008, to submit proofs of claims to:

         A. Radionov
         Insolvency Manager
         Armavirskaya Str. 37
         353680 Yeysk
         Krasnodarskiy
         Russia

The Arbitration Court of Krasnodarskiy will convene at 2:30 p.m.
on Sept. 9, 2009, to hear bankruptcy proceedings against the
company after finding it insolvent.  The case is docketed under
Case No. A-32-2611/2008-1/70 B.

The Court is located at:

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

The Debtor can be reached at:

         FSUE Kubanskiy Sturgeon Fish Hatchery
         Korzhevskiy
         Slavyanskiy
         Krasnodarskiy
         Russia


MANUFACTURING MACHINERY: Court Starts Bankruptcy Supervision
-------------------------------------------------------------
The Arbitration Court of Rostovskaya commenced bankruptcy
supervison procedure for LLC Manufacturing Machinery
Plant.  The case is docketed under Case No. A53–7696/
2008-S1–31.

The Temporary Insolvency Manager is:

         S. Shatalov
         Office 419
         Menzhinskogo Str.2L
         344029 Rostov-on-Don
         Russia

The Court is located at:

         The Arbitration Court of Rostovskya
         Office 104
         Stanislavskogo Str.8a
         Rostov-on-Don
         Russia

The Debtor can be reached at:

         LLC Manufacturing Machinery Plant
         Apt.8
         Ukrainskiy pereulok 31
         Taganrog
         347900 Rostovskaya
         Russia


OIL AND GAS INDUSRIAL: Creditors Must File Claims by October 19
---------------------------------------------------------------
Creditors of LLC Oil and Gas Industrial Association have until
Oct. 19, 2008, to submit proofs of claims to:

         R. Aupov
         Temporary Insolvency Manager
         Apt. 35
         Chkalova Str. 31
         453204 Ishimbay
         Bashkortostan
         Russia
         Tel/fax: (34794)7-13-56

The Arbitration Court of Bashkortostan commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A07-9614/2008-G-KhRM.

The Court is located at:

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

The Debtor can be reached at:

         LLC Oil and Gas Industrial Association
         Stakhanovskaya Str. 45
         453203 Ishimbay
         Bashkortostan
         Russia


PLAST-KOMPLEKT LLC: Creditors Must File Claims by November 19
-------------------------------------------------------------
Creditors of LLC Plast-Komplekt (TIN 6319100032) have until
Nov. 19, 2008, to submit proofs of claims to:

         N. Deryabina
         Insolvency Manager
         Komsomolskaya Str. 5
         443099 Samara
         Russia

The Arbitration Court of Samara commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A55-7212/08.

The Court is located at:

         The Arbitration Court of Samara
         Avrory Str. 148
         443045 Samara
         Russia

The Debtor can be reached at:

         LLC Plast-Komplekt
         Kirova Str. 2
         443009 Samara
         Russia


PROM-KOMPLEKT: Creditors Must File Claims by October 19
-------------------------------------------------------
Creditors of LLC Prom-Komplekt (TIN 7204100503) have until
Oct. 19, 2008, to submit proofs of claims to:

         S. Aleksandrov
         Temporary Insolvency Manager
         Office 207
         Lenina Str. 31
         640000 Kurgan
         Russia

The Arbitration Court of Tumenskaya commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A34-3694/3-2008.

The Debtor can be reached at:

         LLC Prom-Komplekt
         Yamskaya Str. 87a
         Tumen
         Russia


ROS-TEKS LLC: Creditors Must File Claims by November 19
-------------------------------------------------------
Creditors of LLC Ros-Teks (TIN 7825424772) have until Nov. 19,
2008, to submit proofs of claims to:

         O. Gonzharov
         Insolvency Manager
         Apt. 66
         Pyatnitskoe shosse 38
         125310 Moscow
         Russia

The Arbitration Court of St. Petersburg commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?56-48019/2007.

The Court is located at:

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

The Debtor can be reached at:

         LLC Ros-Teks
         Room 5
         Nevskiy prospect 100
         St. Petersburg
         Russia


* OMSK CITY: S&P Places B Issuer Credit Rating on Negative Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B' long-term
issuer and 'ruBBB+' Russia national scale ratings on the Russian
City of Omsk on CreditWatch with negative implications, due to the
rising refinancing risks under worsening credit market conditions
and the city's high amount of short-term debt to be repaid by the
end of 2008.

"The ratings are constrained by the city's poor debt profile, weak
budgetary performance, low liquidity, and limited financial
flexibility and predictability," said S&P's credit analyst Felix
Ejgel.

These risks are partly mitigated by the city's rapid revenue
growth, cofinancing of transport infrastructure projects from the
oblast budget, and solid industrial development.

Omsk's debt portfolio is dominated by short-term debt.  S&P
therefore expects debt service payments to be high, at 25% of
total revenues in 2008.  Despite its good relationship with banks,
this debt structure makes the city's refinancing risks relatively
high, especially now that interest rates are rising due to
negative market sentiment.  In the next two to three years, Omsk's
direct debt as a share of operating revenues will likely remain
stable, at about 20%-25%.  Its short-term profile and associated
risks are unlikely to change, however.

"We expect to resolve the CreditWatch placement by mid-November or
earlier, when the city has clarified how it plans to repay RUR800
million (US$31.7 million) in short-term bank loans due at the end
of October," said Mr. Ejgel.

If the city manages to toughen control over expenditures and
refinance its debts without significant deterioration of its
budgetary performance, or receive additional financial support
from the oblast to settle short-term debts, S&P will affirm the
ratings.

Alternatively, if the city fails to refinance its short-term debt
and cut expenses, or accumulates overdue payables to repay
short-term debt, or refinancing materially affects the city's
budgetary performance, a negative outlook or downgrade will likely
ensue.


* TOMSK OBLAST: S&P Puts B+ Long-Term Issuer Rating on Watch Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch with
negative implications its 'B+' long-term issuer rating, 'ruA+'
national scale credit rating, and 'ruA+' issue rating on the Tomsk
Oblast, which is located in Western Siberia, in the Russian
Federation.

"The CreditWatch placement reflects the potentially higher risks
posed by the oblast's need to borrow until the end of the year to
fund its capital program and to refinance its debt obligations in
the currently fragile Russian market environment," said S&P's
credit analyst Boris Kopeykin.

By year-end 2008, Tomsk will have had to borrow about RUR2.4
billion (US$96 million) -- which is about one-quarter of the
oblast's expected revenues until the end of the year -- to fund
its capital program and refinance debt.  It plans to place a RUR2
billion bond issue and/or secure bank loans for the comparable
amount in October-November.  The oblast has to repay RUR1.7
billion (about 6% of its total budget expenditure) in debt by the
end of this year, including a RUR450 million bond due Nov. 9, RUR1
billion in loans due on Dec. 8, and RUR250 million due on Dec. 26.
Because of uncertainties in the Russian credit market, prospects
for obtaining financing and the terms under which it will be
granted appear more uncertain than S&P previously assumed.  The
oblast council has just passed a resolution to lift an interest
cap on the borrowings.  Free cash, at RUR1.05 billion as of Sept.
25, 2008, provides only a moderate cushion because it covers only
about 40% of the oblast's overall financing needs.

"We will resolve the CreditWatch after we obtain more certainty on
the oblast's ability to receive the needed loans and the terms of
the future borrowings," said Mr. Kopeykin.  "We will affirm the
rating and revise the outlook to stable, if the oblast obtains the
necessary financing.  However, if the oblast is unable to obtain
funding, or obtains it at a very high cost, putting 2009 financial
performance at risk, S&P would likely lower the ratings."

In either case, the ratings will continue to be constrained by
Tomsk Oblast's exposure to a single taxpayer, unrated oil company
Tomskneft VNK, which provides about 17% of revenue.  Additional
constraints include the oblast's dependence on federal government
decisions, expenditure pressures, and relatively high debt
service, reported at 26% in 2007.


* RUSSIA: Developers Ditch Projects Amid Global Credit Crisis
-------------------------------------------------------------
Real estate developers in Russia are affected by the global
financial crisis, executives say, The Wall Street Journal reports.
Banks have stopped lending, prompting developers to shelve new
projects for the domestic and international markets.

Developers and analysts say they expect intense industry
consolidation in the months ahead, along with a fall in prices,
the Journal relates.  Moscow real-estate prices have jumped nearly
30% this year, with average residential prices hovering at just
below US$5,000 a square meter, after tripling in the past three
years, the report notes.

The slowdown, according to the report, is likely to trim economic
growth and carries political risk for the Kremlin, which has made
a nationwide program to build affordable housing a priority.

The Journal states that the so-called Moscow City business and
administrative center, seen under construction, is now at risk.
Dmitry Lutsenko, of Moscow-based developer Mirax Group, said his
company had canceled US$4 billion of new investment projects and
would focus on existing projects instead.  Loan costs have tripled
for Mirax from bank rate of 8.5% to 25%, the Journal notes.

Alexei Yazykov of Moscow-based finance house Renaissance Capital
said that his company has "been put in the grave," the Journal
writes.

The Journal names developer OAO Sistema-Hals as one of the
victims, whose share price on Moscow's dollar-denominated RTS
exchange stood at just US$1.25 late last week, down from at least
US$7 early July.  Sistema-Hals is unloading some 25% of its real-
estate portfolio to pay down debts of about US$1.2 billion.

Semyon Fomin of Moscow-based investment bank Troika Dialog
commented that "[e]ven big companies face trouble" and are
abandoning projects due to the lack of funds, based on the report.

Bakhattin Demirbilek at Esta Construction Co. a shopping mall
builder around Russia, said that the credit crunch is proving
scary for midsize builders, the Journal reports.  Three of Mr.
Demirbilek's company's five current mall contracts are in question
because the buyer wants to back out.

Yury Reylyan of Basic Element, in charge of a US$4 billion
infrastructure project of the Black Sea resort of Sochi for the
2014 Winter Olympics, said they might be scaling back due to
falling demand.  However, Prime Minister Vladimir Putin, who
visited Sochi's Olympic sites Thursday, called on officials to
ensure that the projects are completed on schedule.

As reported by the Troubled Company Reporter on Sept. 26, 2008,
Russia's Finance Ministry is offering banks up to 500 billion
rubles (US$20 billion) in temporarily available budget funds to
boost liquidity.

Despite the present crisis, developers say they expect a moderate
correction in prices, not a sudden collapse, the Journal adds.


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


BACKLAND LLC: Creditors Have Until Oct. 15 to File Claims
---------------------------------------------------------
Creditors owed money by LLC BackLand are requested to file their
proofs of claim by Oct. 15, 2008, to:

         Claudia Scherrer-Eisenhut
         Oberdorfstrasse 18
         9230 Flawil
         Switzerland

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


BEREN-BERG PROGRAMMIER: Oct. 15 Set as Deadline to File Claims
---------------------------------------------------------------
Creditors owed money by JSC Beren-Berg Programmier Beratung are
requested to file their proofs of claim by Oct. 15, 2008, to:

         Nollisweid 17
         9050 Appenzell
         Switzerland

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


DPS ROTKREUZ: Creditors Must File Proofs of Claim by Oct. 16
------------------------------------------------------------
Creditors owed money by JSC DPS, Rotkreuz are requested to file
their proofs of claim by Oct. 16, 2008, to:

         Erlenstrasse 4a
         6343 Rotkreuz
         Switzerland

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


KKP ROHSTOFF: Deadline to File Proofs of Claim Set Oct. 15
----------------------------------------------------------
Creditors owed money by JSC KKP Rohstoff are requested to file
their proofs of claim by Oct. 15, 2008, to:

         Schweizergasse 8
         Mail Box: 2277
         8021 Zurich
         Switzerland

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


M&T LLC: Proofs of Claim Filing Deadline is Oct. 15
---------------------------------------------------
Creditors owed money by LLC M&T are requested to file their proofs
of claim by Oct. 15, 2008, to:

         Mustafa Uygur
         Neumuhlestrasse 13
         8406 Winterthur
         Switzerland

The company is currently undergoing liquidation in Winterthur.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 24, 2006.


MUNZKABINETT ZURICH: Creditors’ Proofs of Claim Due by Oct. 12
--------------------------------------------------------------
Creditors owed money by JSC Munzkabinett Zurich are requested to
file their proofs of claim by Oct. 12, 2008, to:

         JSC Kurt H. Lanz Treuhand + Revisions
         Oliver Hoflich
         Langgrutstrasse 172
         8047 Zurich
         Switzerland

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


OEKO-HANDEL LLC: Oct. 15 Set as Deadline to File Claims
-------------------------------------------------------
Creditors owed money by LLC Oeko-Handel und Engineering are
requested to file their proofs of claim by Oct. 15, 2008, to:

         Schuppisstrasse 13
         9016 St. Gallen
         Switzerland

The company is currently undergoing liquidation in St. Gallen.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 15, 2008.


ZBINDEN SIEBDRUCK: Creditors Must File Claims by  Oct. 15
---------------------------------------------------------
Creditors owed money by JSC Zbinden Siebdruck are requested to
file their proofs of claim by Oct. 15, 2008, to:

         Friedentalstrasse 40
         6004 Luzern
         Switzerland

The company is currently undergoing liquidation in Luzern.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 22, 2008.


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


ASSEMBLY HEAT: Creditors Must File Claims by October 2
------------------------------------------------------
Creditors of LLC Assembly Heat Service (code EDRPOU 24417807)
have until Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

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

The Debtor can be reached at:

         LLC Assembly Heat Service
         Ap. 27
         B. Vishnevetsky Str. 47
         Cherkassy
         Ukraine


BUSKY PLANT: Creditors Must File Claims by October 2
----------------------------------------------------
Creditors of LLC Busky Plant of Glass Products (code EDRPOU
34045898) 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 the bankruptcy supervision
procedure on the company on July 8, 2008.  The case is docketed as
28/227-b.

The Debtor can be reached at:

         LLC Busky Plant of Glass Products
         Patrice Lumumba Str. 15-a
         01042 Kiev
         Ukraine


DYMOK LLC: Creditors Must File Claims by October 2
--------------------------------------------------
Creditors of LLC Dymok (code EDRPOU 19096474) have until Oct. 2,
2008, to submit proofs of claim to:
         The Economic Court of Dnipropetrovsk
         Kujbishev Str. 1a
         49600 Dnipropetrovsk
         Ukraine

The Economic Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on Aug.
13, 2008.  The case is docketed as B 24/274-08.

The Debtor can be reached at:

         LLC Dymok
         Rabochaya Str. 6
         Novopokrovka
         52400 Dnipropetrovsk
         Ukraine


KHATSKIKH BREADPRODUCT: Creditors Must File Claims by October 2
---------------------------------------------------------------
Creditors of LLC Khatskikh Breadproduct (code EDRPOU 30238833)
have until Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

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

The Debtor can be reached at:

         LLC Khatskikh Breadproduct
         Shevchenko Str. 335
         Cherkassy
         Ukraine


NEW-ROMINVEST: Creditors Must File Claims by October 2
------------------------------------------------------
Creditors of Subsidiary Enterprise New-Rominvest (code EDRPOU
33490198) have until Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Zhytomir
         Putiatinskiy Square 3/65
         10014 Zhytomir
         Ukraine

The Economic Court of Zhytomir commenced bankruptcy proceedings
against the company after finding it insolvent on July 1, 2008.
The case is docketed as 7/98-b.

The Debtor can be reached at:

         Subsidiary Enterprise New-Rominvest
         Filatov Lane, 7-a
         Romanov
         13033 Zhytomir
         Ukraine


PRIDNEPROVSKY TRADE: Creditors Must File Claims by October 2
------------------------------------------------------------
Creditors of LLC Pridneprovsky Trade Union (code EDRPOU 30238833)
have until Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

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

The Debtor can be reached at:

         LLC Pridneprovsky Trade Union
         Ap. 43
         Taraskov Str. 12
         Cherkassy
         Ukraine


PRODMEGA-NK LLC: Creditors Must File Claims by October 2
--------------------------------------------------------
Creditors of LLC Prodmega-NK (code EDRPOU 33493251) 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 Feb. 8, 2008.
The case is docketed as 24/81-b.

The Debtor can be reached at:

         LLC Prodmega-NK
         Malo-Kitayevskaya Str. 39
         03029 Kiev
         Ukraine


SLAVUTICH: Creditors Must File Claims by October 2
--------------------------------------------------
Creditors of OJSC Cherkassy Radio Everyday Technics Subsidiary
Company Technical-Trading Firm Slavutich (code EDRPOU 24417807)
have until Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine
The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company after finding it insolvent.

The Debtor can be reached at:

         JSC Cherkassy Radio Everyday Technics Subsidiary
         Company Technical-Trading Firm Slavutich
         Paris Commune Str. 65-A
         Cherkassy
         Ukraine


SMILODON-1 LLC: Creditors Must File Claims by October 2
-------------------------------------------------------
Creditors of LLC Smilodon-1 (code EDRPOU 25213458) have until
Oct. 2, 2008, to submit proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

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


The Debtor can be reached at:

         LLC Smilodon-1
         Ap. 151
         Gagarin Str. 89
         Cherkassy
         Ukraine


STATE PROVISIONS: Creditors Must File Claims by October 2
---------------------------------------------------------
Creditors of State Provisions Plant (code EDRPOU 22784261) 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 Hmelnitskij commenced bankruptcy proceedings
against the company after finding it insolvent.
The case is docketed as 2/14/19-B.

The Debtor can be reached at:

         State Provisions Plant
         Pilotskaya Str. 18
         Hmelnitskij
         Ukraine


TECHNOTON LLC: Creditors Must File Claims by October 2
------------------------------------------------------
Creditors of LLC Technoton (code EDRPOU 30996395) 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 supervision
procedure on the company on Aug. 12, 2008.  The case is docketed
as 22/50b.

The Debtor can be reached at:

         LLC Technoton
         Gastello Str. 39
         91047 Lugansk
         Ukraine


UGERSKO DISTILLERY: Creditors Must File Claims by October 2
-----------------------------------------------------------
Creditors of State Enterprise Ugersko Distillery (code EDRPOU
003374733) have until Oct. 2, 2008, to submit proofs of claim to:

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

The Economic Court of Lvov commenced bankruptcy supervision
procedure on the company.  The case is docketed as 8/84.

The Debtor can be reached at:

         State Enterprise Ugersko Distillery
         I. Franko Str. 2
         Ugersko
         Striy District
         Lvov
         Ukraine


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


ACCUMA GROUP: To Put Loan Line Group Into Liquidation on Oct. 14
----------------------------------------------------------------
Accuma Group Plc Board has concluded that the Loan Line Group
would be insolvent without further financial support from Accuma.
The Directors have therefore concluded that it is not in the
interests of Accuma's  shareholders to continue to fund the Loan
Line Group's losses.

Accordingly  the Loan Line Group directors have convened a meeting
on Oct. 14, 2008, to appoint a liquidator to put the Loan Line
Group into a Creditors Voluntary Liquidation.

For the six months ended June 30, 200,8 the Loan Line Group
recorded a loss of GBP196,000 and net liabilities of GBP81,181.
In the December 2007 accounts, a full impairment charge was made
for the goodwill of the Loan Line Group, of GBP11.8 million.

The closure of the Loan Line Group will result in a write off of
approximately GBP600,000 inter-company liability and an additional
net cash outflow of around GBP90,000 in settlement of liabilities
due to the Loan Line Group.  At June 30, 2008, Accuma Group Plc
had net cash of GBP1.5 million.

Accuma Group Plc -- http://www.accumagroup.com/-- is a specialist
financial solutions provider and one of the largest of its kind in
the UK.

The group is incorporated in England and Wales and transacts its
business in the United Kingdom.


AMERICAN INT'L: Implements Retention Program for Executives
-----------------------------------------------------------
American International Group, Inc.'s retention program became
effective on Sept. 22, 2008.  The program applies to about 130
executives and consists of cash awards payable 60% in
December 2008 and 40% in December 2009.

Executive officer Jay Wintrob is receiving an award of
US$3,000,000.

On Sept. 25, 2008, executive officer Robert M. Sandler retired
from AIG following a change in his position.  Mr. Sandler had been
employed by AIG for over 39 years.  In connection with his
retirement, AIG entered into an agreement and release with Mr.
Sandler that implements the retirement benefits of AIG's long-term
compensation plans and provides the separation pay and other
benefits to which AIG executives are entitled under AIG's
Executive Severance Plan for terminations without cause.  These
benefits include a payment of a total of US$2,514,168 in
separation pay, payable over 2 years.

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 of 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
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.


AMERICAN INT'L: Selling US$16BB in Real Estate to Repay U.S. Loan
---------------------------------------------------------------
American International Group Inc. might seek buyers for some of
its US$16 billion in global real estate holdings to repay a U.S.
government loan, Bloomberg News' Brian Louis reports.

The nation's largest insurer agreed last week to an US$85 billion
federal loan to prevent the company's collapse.

"Many of AIG's properties could be trophy properties that don't
come up for sale very often," said Ray Torto, Boston-based global
chief economist for CB Richard Ellis Group Inc., the world's
largest commercial real estate broker.  That could spur interest
from multiple bidders, he said.

AIG's plans comes amid a weak real estate climate and the
reluctance of banks to unload their excess cash.

"AIG has plenty of high quality businesses potentially for sale,"
analysts led by Thomas Gallagher said.  The insurer's overseas
life insurance and U.S. retirement services units are the most
"coveted" businesses, he said.  AIG's foreign life insurance
division could sell for more than US$60 billion before taxes and
its
U.S. life and retirement companies may fetch US$25.2 billion.  The
company's aircraft leasing unit could sell for US$3.4 billion
before taxes, he said.

American International Group said on Friday that it will not seek
shareholder approval for a plan to issue convertible preferred
shares that will give the U.S. government 79.9 percent stake in
the insurer, Reuters reported Friday.

According to Reuters, AIG said its board's audit committee had
decided that delaying the deal to seek shareholder approval "would
seriously jeopardize the financial viability of AIG."

               About American International Group

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

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

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.


AMERICAN INT'L: Secures Reinsurance From Berkshire for Unit
-----------------------------------------------------------
American International Group Inc. said on Friday that it has
struck a deal to buy reinsurance for its real estate insurance
business, Lexington Insurance Co., from National Indemnity Co., a
unit of Warren Buffett's Berkshire Hathaway Inc., according to a
report by Liam Pleven at The Wall Street Journal.

According to WSJ, AIG said that the deal means that Berkshire
Hathaway will help cover losses on certain Lexington Insurance
policies, largely involving real estate.  Lavonne Kuykendall at
Dow Jones Newswires relates that under the deal, National
Indemnity will provide a contingent property reinsurance cover for
Lexington Insurance's real estate portfolio, along with policies
having limits of US$250 million or more, policies with home and
foreign exposure, and the property sections of most of its
homeowners insurance business.

WSJ states that an AIG spokesperson said that some of the policies
are "sensitive" to the insurer's ratings from Standard & Poor's,
which downgraded AIG's ratings earlier this month.  According to
Dow Jones, the deal could reassure big real estate customers whose
lenders often require that insurance carry a top credit rating,
like Berkshire.

AIG did not say how much it will pay Berkshire for the coverage
and how extensive the coverage is, Dow Jones reports.

Mr. Buffett has said that he is interested in some AIG assets, WSJ
states, citing an expert.  WSJ relates that the expert said that
Berkshire already has extensive insurance holdings and could learn
more about Lexington Insurance as a result of the deal.  "When you
underwrite reinsurance, you do the same work as if you are buying
the company," WSJ quoted Rancho Santa Fe reinsurance consultant
Andrew Barile as saying.

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.


AMERICAN INT'L: Gov't to Get 80% Stake Without Shareholder OK
-------------------------------------------------------------
Liam Pleven at The Wall Street Journal reports that the American
International Group Inc. said on Friday it will give the
government control of 80% of the company without seeking
shareholder approval.

The board's audit committee determined that the "delay" in getting
the shareholder approval "would seriously jeopardize the financial
viability" of the company, WSJ says, citing AIG.

WSJ relates that the New York Stock Exchange approved AIG's
decision to grant the government a stake in the firm without
getting shareholder approval.  The report states that the
company's decision deprives shareholders seeking alternatives of
potential leverage.  According to the report, some shareholders
have been trying to find a way to repay the US$85 billion loan
before the government took the stake.  AIG had borrowed US$44.57
billion from the Federal Reserve as of Wednesday, the report says,
citing the central bank.

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.


AMERICAN INT'L: Shareholders Sell 40MM Shares, To Buy Firm
----------------------------------------------------------
Liam Pleven at The Wall Street Journal reports that American
International Group Inc.'s former CEO, Maurice R. Greenberg, and a
group of affiliated shareholders said that they sold off 40
million shares on Thrusday, shrinking their stake to 9.99%, just
below the 10% key regulatory threshold.

According to WSJ, moving under the 10% level gives Mr. Greenberg
more room to maneuver as a potential buyer.  Shareholders below
that level could explore the possibility of purchasing the company
with outside investors with less risk of triggering the
requirement, WSJ states.

Under New York law, shareholders who control more than 10% of an
insurer's shares must apply to the New York State Insurance
Department before making moves seen as exercising control over the
company.

Mr. Greenberg and other shareholders have said that they may try
to buy AIG units or take control of the company, WSJ reports.

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.


EPIC INDUSTRIOUS: S&P Downgrades Rating on Class F Notes to BB
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered and kept on
CreditWatch with negative implications its credit rating on the
class F notes issued by Epic (Industrious) PLC.  At the same time,
S&P placed the credit rating on the class E notes on CreditWatch
negative.  All other classes of notes in this transaction remain
unaffected.

S&P placed the rating on the class F notes on CreditWatch negative
on July 16 after it received an updated market value of the
underlying properties, which showed a 17% decline in the initial
open market value ("Class F Notes In Epic (Industrious) PLC's CMBS
Transaction Placed on CreditWatch Negative").  There was a breach
of the loan-to-value (LTV) ratio covenant (a current ratio
of 90.7% versus a default covenant of 75%) that was not cured.

Then, on Sept. 18, S&P was informed by the servicer that an
administrative receiver had been appointed to the borrower on its
insolvency.  The borrower's insolvency now constitutes a credit
event under the credit default swap (CDS) between The Royal Bank
of Scotland PLC (RBS; the CDS counterparty) and the issuer.  S&P
understands that this credit event does not affect RBS's payment
of the swap premium and consequently the payment of interest under
the notes.

In light of recent events, S&P believes there is a wide range of
possible scenarios, including an immediate sale of the assets or
the restoration of the cash flows and a subsequent sale.  The
uncertainty around the ultimate recovery value has resulted in the
rating action.

Epic (Industrious) closed in October 2006 and was arranged by RBS.
The notes are backed by one loan secured by 120 industrial
properties in the U.K.  The assets are let to more than 1,000
tenants, with the largest tenant accounting for 2.8% of the total
rental income.  Of the lettable area, 17% is currently vacant.

The securitized portion of the loan, which was initially GBP487.5
million, has now reduced to GBP472.7 million due to asset sales.

Epic (Industrious) PLC:

  -- GBP490 Million Commercial Mortgage-Backed Floating-Rate Notes

Rating Lowered And Remaining On CreditWatch Negative:

Class       To               From
-----       --               ----
   F     BB/Watch Neg    BBB/Watch Neg

Rating Placed On CreditWatch Negative

Class       To             From
-----       --             ----
   E      A/Watch Neg        A



BRADFORD AND BINGLEY: Treasury Sets Loan Guarantee Arrangements
---------------------------------------------------------------
The Chancellor of the Exchequer confirmed that, following advice
from the Governor of the Bank of England and the Chairman of the
Financial Services Authority, HM Treasury has put in place, with
immediate effect, guarantee arrangements to safeguard certain
wholesale borrowings, and derivative transactions of and wholesale
deposits with, Bradford & Bingley plc existing as at midnight on
September 28, 2008.

The Chancellor said arrangements will be put in place to ensure
that Bradford & Bingley will pay an appropriate fee for the
provision of these arrangements in order to ensure it does not
receive a commercial advantage.

Coverage of the guarantee arrangements include all unsubordinated
borrowings from and wholesale deposits with Bradford & Bingley
made by Bradford & Bingley International Limited (Bradford &
Bingley’s Isle of Man subsidiary), and any other unsubordinated
debt due from Bradford & Bingley to Bradford & Bingley
International Limited, in each case in existence at the relevant
time.

The guarantee arrangements will not extend to, among others, these
liabilities of Bradford & Bingley or its group:

    * securities issued pursuant to Bradford & Bingley's
      securitization program;

    * subordinated or other hybrid capital instruments;

    * liabilities owed by Bradford & Bingley to its
      subsidiary companies, save for those obligations
      owed to Bradford & Bingley International Limited;

    * any retail and wholesale deposits with and
      wholesale borrowing by or other liabilities
      (including, without limitation, liabilities pursuant
      to swap or other derivative transactions) of the
      subsidiaries of Bradford & Bingley;

    * liabilities of Bradford & Bingley which are not
      in respect of borrowing or financial indebtedness,
      for example trade creditors, salary payments to
      employees and tax liabilities; and

    * liabilities owed by Bradford & Bingley to the
      Financial Services Compensation Scheme.

The continuation of the guarantee arrangements beyond six months
will require the submission and approval of a restructuring plan
in accordance with the European Commission’s Rescue and
Restructuring Guidelines.  HM Treasury intends to submit such a
plan shortly.

The Chancellor earlier announced that by order (the Transfer
Order) under the Banking (Special Provisions) Act 2008, Bradford &
Bingley's UK and Isle of Man retail deposit business along with
its branch network has been transferred to Abbey National plc.
This transfer follows a competitive sale process for this part of
the business, conducted by Morgan Stanley on behalf of HM
Treasury.  The remainder of Bradford & Bingley's business will be
taken into public ownership.

Following recent turbulence in global financial markets, Bradford
& Bingley has found itself under increasing pressure as investors
and lenders lost confidence in its ability to carry on as an
independent institution.  The FSA determined on
Sept. 27 that the firm no longer met its threshold conditions for
operating as a deposit taker under the Financial Services and
Markets Act 2000 and FSA rules.

The remaining assets and liabilities of Bradford & Bingley -
principally comprising its mortgage book, personal loan book,
headquarters and relevant staff, and treasury assets and its
wholesale liabilities - has been taken into public ownership
through the transfer to the Treasury of the company's shares.  HM
Treasury and the Financial Services Compensation Scheme (“FSCS”)
will recover payments in the wind-down of the remainder of
Bradford & Bingley.

The FSCS was triggered following the determination by the FSA that
Bradford & Bingley was unable or likely to be unable to satisfy
claims against it, prior to the making of the Transfer Order.
Under the Transfer Order, the FSCS has paid out approximately
GBP14 billion to enable retail deposits held in Bradford & Bingley
and covered by the FSCS to be transferred to Abbey.  The Treasury
has made a payment to Abbey for retail deposit amounts not covered
by the FSCS, amounting to approximately GBP4 billion.  In return,
the FSCS and the Treasury have acquired rights in respects of the
proceeds of the wind-down and realization of the assets of the
remaining business of Bradford & Bingley in public ownership.

The FSCS has financed its payout through a short-term loan from
the Bank of England, which will be replaced with a loan from the
Government after a short period of time.  The repayment terms of
the loan for the first three years provide for repayment of
interest at a rate of one-year LIBOR plus 32 basis points for the
first 3 years and Libor plus 100 basis points for the following
years, plus the repayment of any recoverables accruing to the FSCS
from the wind-down of the business against the principal
outstanding.  The first payment, for interest from the period from
now until end-March 2009, will take place at end-September 2009
and subsequent payments will be made annually thereafter.  It is
currently estimated that the first payment required in September
2009 by the FSCS under the loan will be approximately GBP450
million.  After the first three months, the loan will be
refinanced by the Treasury, with repayments of the principal to be
made over a period of years in the light of prevailing market
conditions.

                    About Bradford & Bingley

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

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Sept. 25,
2008, Fitch downgraded its ratings on Bradford and Bingley's
hybrid and subordinated instruments to 'B+' from 'BBB-' and 'BB+'
from 'BBB', respectively.

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

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


BRADFORD & BINGLEY: Moody's Lowers Jr. Sub. Debt Ratings to Ca
--------------------------------------------------------------
Moody's Investors Service announced that it has put on review for
possible upgrade the Baa3 senior unsecured debt and deposits of
Bradford & Bingley plc.  The short-term ratings of P-3 were also
placed on review for possible upgrade.  At the same time, the
bank's subordinated and junior subordinated debt ratings were
downgraded to Ca from their respective Ba3 and B1 ratings with a
negative outlook; the preference shares were downgraded to C from
B2.  The Bank Financial Strength Rating (BFSR) of D was withdrawn.

The rating actions follow the announcement by HM Treasury that it
has transferred Bradford & Bingley's retail deposits valued at
approximately GBP 21 billion together with the branch network, to
Abbey National plc (Aa3/P-1).  Abbey is a wholly-owned subsidiary
of Banco Santander S.A (Aa1/P-1).  The remaining assets and
liabilities of the bank, including its mortgage and personal loan
book, treasury assets, all wholesale deposits and debts, have been
taken into public ownership through the transfer to the Treasury
of the company's shares.

Moody's said that the key driver for the review for upgrade of the
senior unsecured long term and short term ratings of Bradford &
Bingley was the government guarantee which covers all
unsubordinated and unsecured wholesale deposits and other
borrowings.  This guarantee has been initially put in place for
six months.  Moody's anticipates that the government would seek
state aid approval from the European Commission to extend the
guarantee, if necessary.  However, the ultimate disposition of the
retained deposits and other senior liabilities is not yet clear.
The review will focus on the details and the scope of this
guarantee once it becomes available.

The downgrades of the subordinated and the preferred shares are
based on their exclusion from the government guarantee. Moody's
believes that the assets remaining to satisfy these obligations
will be very limited after payments due to all other secured and
unsecured creditors.  The Ca rating of the subordinated and junior
subordinated debt and the C rating of the preferred shares reflect
Moody's expectation of a limited recovery for holders of these
instruments.  The negative outlook on the subordinated instruments
reflects the uncertainties around any possible recovery.

The bank financial strength rating of D and the BCA ratings of Ba2
were withdrawn as the newly formed government-owned entity will
cease to be a deposit taker and will no longer engage in mortgage
lending operations.  The details of the operational management of
the remaining parts of Bradford & Bingley, now in government
ownership, will be set out by the Government in due course.

Ratings put on review for upgrade:

   -- Long-term bank deposits of Baa3

   -- Senior unsecured debt ratings of Baa3

   -- Short-term bank deposits and debt ratings of P-3

   -- Commercial paper ratings of P-3

Ratings downgraded:

  -- Subordinated debt -- to Ca from Ba3

  -- Junior subordinated debt -- to Ca from B1

Bradford & Bingley Capital Funding LP

   -- Preferred securities -- to C from B2

Ratings withdrawn:

  -- BFSR of D

  -- BCA of Ba2

These specific entities or debt categories are not covered by this
press release:

  -- Covered bonds issued by Bradford and Bingley

  -- Mortgage-backed securities issued by the Aire
     Valley Master Trust


BUILDING SUPPLIES: Taps Joint Administrators from Baker Tilly
-------------------------------------------------------------
Lynn Robert Bailey and Graham Paul Bushby of Baker Tilly
Restructuring and Recovery LLP were appointed joint administrators
of Building Supplies R'Us Ltd. (Company Number 06032237) on Sept.
17, 2008.

The company can be reached at:

         Building Supplies R'Us Ltd.
         Unit 5 Brindley Court
         Gresley Road
         Shire Business Park
         Worcester
         WR4 9FD
         England


CHANNEL 4: To Axe Costs and 15% of Staff; Pleads for Public Aid
---------------------------------------------------------------
Channel 4 expects revenues to drop to GBP50 million this year
because of a 5% decline in advertising during 2008, according to
the Telegraph Company (U.K.).  Next year, the report said that
Channel 4 plans to cut its program budget further and begin a
round of redundancies that will see headcount fall from about
1,000 to 850 staff.

Chief executive Andy Duncan, who is campaigning for GBP150 million
a year in help from taxpayers, said: "[t]he economic downturn is
now affecting the entire media industry, the Telegraph said.  He
said that the company's "objective . . . is to operate at break-
even while maximizing creative investment.  With revenues falling,
[Channel 4 has] no alternative but to cut costs."

In order to break even, Channel 4 said it would cut GBP50 million
costs in 2008 and again in 2009, the Telegraph noted.  Some
GBP25 million will come out of a program budget this year, with
the balance made up from savings in marketing, new business
investments, new media and general overheads.  Last year's program
budget was GBP615 million, but that had already been cut to
GBP600 million for 2008.  Channel 4 will spend GBP575 million on
programming this year, GBP40 million less than a year ago.

To maintain popularity and preserve market share, Channel 4 would
preserve top-rated shows and drop loss-making genres, the report
said, citing a company a spokesman.

Channel 4 is arguing for public subsidy to supplement its
advertising income, and is predicting a shortfall of
GBP150 million a year by 2012, when the digital TV switchover is
complete, based on the report.  When every household is able to
tune in to more than the five terrestrial channels, Channel 4
expects a subsequent reduction in advertising income.

According to the Telegraph, media regulator Ofcom reportedly
outlined funding options for Channel 4.  Among these is granting
the broadcaster a share of the BBC license fee, or allowing it to
share in profits from the BBC's commercial arm.

Channel 4 has cash reserves of up to GBP200 million a year, but a
spokesman said it would not begin to spend these unless a
financial settlement is agreed with regulators and Government, the
Telegraph added.

Channel 4 -- http://www.channel4.com/-- transmits across the
whole of the U.K., except some parts of Wales, which are covered
by the Welsh language S4C.  It is available on all digital
platforms (terrestrial, satellite and cable) as well as through
traditional analogue transmission.

Channel 4 also operates a number of other services, including the
free-to-air digital TV channels E4, More4 and Film4, and an ever-
growing range of online activities at channel4.com, including the
broadband service FourDocs and Channel 4's bespoke video-on-demand
service 4oD.  The Film4 production division produces and co-
produces feature films for the UK and global markets.


EUROSAIL 2006-1: Fitch Puts 'BB'-Rated Class E Notes on Watch Neg.
------------------------------------------------------------------
Fitch Ratings has placed Eurosail 2006-1 PLC on Rating Watch
Negative following the downgrade of Lehman Brothers Holdings Inc.
Eurosail 2006-1 PLC has counterparty exposure to LBHI or its
subsidiaries on multiple levels, including a liquidity facility
agreement.  Due to the affect of the liquidity facility exposure
in the transaction, failure to replace it could potentially result
in multi-category downgrades.

Eurosail 2006-1 PLC

  -- Class A2c (ISIN XS0253567720): 'AAA'; On Rating Watch
     Negative

  -- Class B1a (ISIN XS0253569007): 'AA'; On Rating Watch Negative

  -- Class B1c (ISIN XS0253571243): 'AA'; On Rating Watch Negative

  -- Class C1a (ISIN XS0253572050): 'A'; On Rating Watch Negative

  -- Class C1c (ISIN XS0253573298): 'A'; On Rating Watch Negative

  -- Class D1a (ISIN XS0253573611): 'BBB-'; On Rating Watch
     Negative

  -- Class D1c (ISIN XS0253574932): 'BBB-'; On Rating Watch
     Negative

  -- Class E (ISIN XS0253576630): 'BB'; On Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the lack of liquidity funds
designed to provide interest payments on the notes in case income
deficiencies occur.  Fitch aims to resolve the RWN once
information is obtained regarding the replacement of the liquidity
facility provider.

The transaction also benefited from a fixed/floating rate swap
provided by Lehman Brothers Special Financing, Inc.  As of the
last IPD in September 2008 the fixed/floating swap generated 3.81%
of the available interest revenue.  The impact of the
fixed/floating swap will reduce over time as loans revert to
variable rate, with the majority of loans reverting by June 2009.

This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal.  However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.


EUROSAIL 2006-2BL: Fitch Puts B-Rated Class F1C Notes on WatchNeg.
------------------------------------------------------------------
Fitch Ratings has placed six tranches of Eurosail 2006-2BL PLC on
Rating Watch Negative following the downgrade of Lehman Brothers
Holdings Inc.  Eurosail 2006-2BL PLC has counterparty exposure to
LBHI or its subsidiaries via a fixed/floating rate swap.  Due to
the affect of these hedges on the transaction, failure to replace
the counterparties could potentially result in downgrades,
especially on the lower rated notes.

Eurosail 2006-2BL PLC

  -- Class A1b (ISIN XS0266228914) affirmed at 'AAA'; Outlook:
     Stable

  -- Class A1c (ISIN XS0266232197) affirmed at 'AAA'; Outlook:
     Stable

  -- Class A2c (ISIN XS0266235612) affirmed at 'AAA'; Outlook:
     Stable

  -- Class B1a (ISIN XS0266238715) affirmed at 'AA'; Outlook:
     Stable

  -- Class B1b (ISIN XS0266244440) affirmed at 'AA'; Outlook:
     Stable

  -- Class C1a (ISIN XS0266246817): 'A'; On Rating Watch Negative

  -- Class C1c (ISIN XS0266250413): 'A'; On Rating Watch Negative

  -- Class D1a (ISIN XS0266252625): 'BBB'; On Rating Watch
     Negative

  -- Class D1c (ISIN XS0266256709): 'BBB'; On Rating Watch
     Negative

  -- Class E1c (ISIN XS0266258317): 'BB'; On Rating Watch Negative

  -- Class F1c (ISIN XS0266260560): 'B'; On Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risk the swap was designed
to hedge.

As of the last IPD in September 2008 the fixed/floating swap
generated 2.76% of the available interest revenue.  The impact of
the swap will reduce over time as loans revert to variable rate,
with the majority reverting by October 2009.

This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal.  However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.

Fitch is continuing to assess the other European RMBS transactions
as detailed in Fitch's comment of 16 September, 'Fitch Assessing
Lehman Counterparty Exposure in 31 European RMBS Transactions'.
Further commentary or rating actions will take place as warranted.


EUROSAIL 2006-3: Fitch Puts B-Rated Class FTc Notes on Watch Neg.
-----------------------------------------------------------------
Fitch Ratings has placed seven tranches of Eurosail 2006-3 NC PLC
on Rating Watch Negative following the downgrade of Lehman
Brothers Holdings Inc.   Eurosail 2006-3 NC PLC has counterparty
exposure to LBHI or its subsidiaries via a fixed/floating rate
swap.  Due to the affect of this hedging agreement on the
transaction, subsequent rating action could potentially result in
downgrades, especially on the lower rated notes.

Eurosail 2006-3 NC Plc

  -- Class A2b (ISIN XS0271943200) affirmed at 'AAA'; Outlook:
     Stable

  -- Class A2c (ISIN XS0271944356) affirmed at 'AAA'; Outlook:
     Stable

  -- Class A3a (ISIN XS0271944604) affirmed at 'AAA'; Outlook:
     Stable

  -- Class A3c (ISIN XS0271945833) affirmed at 'AAA'; Outlook:
     Stable

  -- Class A3c DAC (ISIN XS0272142828) affirmed at 'AAA'; Outlook:
     Stable

  -- Class B1a (ISIN XS0271946054) affirmed at 'AA'; Outlook:
     Stable

  -- Class C1a (ISIN XS0271946484): 'A'; On Rating Watch Negative

  -- Class C1c (ISIN XS0271946641): 'A'; On Rating Watch Negative

  -- Class D1a (ISIN XS0271946724): 'BBB-'; On Rating Watch
     Negative

  -- Class D1c (ISIN XS0271947029): 'BBB-'; On Rating Watch
     Negative

  -- Class E1c (ISIN XS0271947375): 'BB-'; On Rating Watch
     Negative

  -- Class ETc (ISIN XS0271947458): 'B+'; On Rating Watch Negative

  -- Class FTc (ISIN XS0271947706): 'B-' with a Distressed
     Recovery rating of 'DR1'; On Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swap was designed
to hedge.

As of the last IPD in September 2008 the fixed/floating swap
generated 2.46% of the available interest revenue.  The impact of
the swap will reduce over time as loans revert to variable rate,
with the majority reverting by September 2009.  Although the
potential impact on revenue is small the substantial reserve fund
draws experienced by the transaction to date have reduced support
to the collateralized notes, placing them more at increased risk.

This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal.  However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.


EUROSAIL 2007: S&P Slashes Ratings on Class A1b & A2b Notes to D
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered and removed from
CreditWatch with negative implications its credit ratings on the
class A1b and A2b notes issued by Eurosail-UK 2007-3BL PLC, a U.K.
nonconforming RMBS transaction.  All the other classes of notes in
this deal remain on CreditWatch negative where they were placed on
Sept. 17, 2008.

S&P has been informed that having received sterling payments from
the mortgage pool, the currency swap counterparty (Lehman Brothers
Special Financing, Inc.) has failed to make return U.S. dollar
payments.  As a result, on the September interest payment date
(Sept. 15, 2008) the issuer was unable to make scheduled payments
of interest due on the U.S. dollar-denominated class A1b and A2b
notes.  S&P understands that Lehman's failure to make the U.S.
dollar swap payments constitutes an event of default and a
termination event under the swap documents.  S&P also understands
that the issuer's inability to make scheduled payments of interest
due on the class A1b and A2b notes constitutes an event of default
under the terms and conditions of the notes.

Having failed to receive due interest, the ratings on the class
A1b and A2b notes have been lowered to 'D' from 'AAA/Watch Neg'.
S&P has been informed that interest payments were made on all
other notes which remain on CreditWatch negative.  S&P continues
to monitor developments in both this transaction and other
European securitizations involving Lehman Brothers Holdings Inc.

Eurosail-UK 2007-3BL PLC

  -- EUR345 Million GBP268.53 Million US$300 Million Mortgage-
     Backed Floating-Rate Notes And An Overissuance Of GBP9.75
     Million Excess-Spread-Backed Floating-Rate Notes

Ratings Lowered And Removed From CreditWatch Negative:

Class        To          From
-----        --          ----
A1b           D      AAA/Watch Neg
A2b           D      AAA/Watch Neg

Ratings Remaining on CreditWatch Negative:

A1c           AAA/Watch Neg
A2a           AAA/Watch Neg
A2c           AAA/Watch Neg
A3a           AAA/Watch Neg
A3c           AAA/Watch Neg
B1a           AA/Watch Neg
B1c           AA/Watch Neg
C1a           A/Watch Neg
C1c           A/Watch Neg
D1a           BBB-/Watch Neg
ETc           BB/Watch Neg
E1c           BB/Watch Neg


EUROSAIL-UK: Fitch Puts Two BB-Rated Note Classes on Watch Neg.
---------------------------------------------------------------
Fitch Ratings has placed five tranches of Eurosail - UK 2007-2 NP
PLC on Rating Watch Negative following the downgrade of Lehman
Brothers Holdings Inc.  Eurosail - UK 2007-2 NP PLC has
counterparty exposure to LBHI or its subsidiaries via a
fixed/floating rate swap and a basis rate swap.  Due to the effect
of these hedges on the transaction, failure to replace the
counterparties could potentially result in downgrades, especially
on the lower rated notes.

Eurosail-UK 2007-2NP PLC
  -- Class A1a (ISIN XS0291411261) 'AAA'; Outlook Stable
  -- Class A1c (ISIN XS0291416658) 'AAA'; Outlook Stable
  -- Class A2a (ISIN XS0291420171) 'AAA'; Outlook Stable
  -- Class A2c (ISIN XS0291422466) 'AAA'; Outlook Stable
  -- Class A3a (ISIN XS0291422623) 'AAA'; Outlook Stable
  -- Class A3c (ISIN XS0291423605) 'AAA'; Outlook Stable
  -- Class M1a (ISIN XS0291424165) 'AAA'; Outlook Stable
  -- Class M1c (ISIN XS0291426889) 'AAA'; Outlook Stable
  -- Class B1a (ISIN XS0291433158) 'AA-'; Outlook Stable
  -- Class B1c (ISIN XS0291434123) 'AA-'; Outlook Stable
  -- Class C1a (ISIN XS0291436250) 'A-' on Rating Watch Negative
  -- Class D1a (ISIN XS0291441417) 'BBB' on Rating Watch Negative
  -- Class D1c (ISIN XS0291442498) 'BBB' on Rating Watch Negative
  -- Class E1c (ISIN XS0291443892) 'BB' on Rating Watch Negative
  -- Class ETc (ISIN XS0291443629) 'BB' on Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swaps were
designed to hedge.

As of the last IPD in September 2008 the fixed/floating swap
generated 4.65% of the available interest revenue, and the basis
rate swap generated a further 0.51% of the available revenue.  The
impact of the fixed/floating swap will reduce over time as loans
revert to variable rate, with the majority reverting by January
2009.  The basis rate swap can potentially cause more of an affect
on portfolio income over time, as approximately 15.22% of the pool
will ultimately reference a variable rate linked to the Bank of
England base rate, compared to approximately 6.09% at the
September 2008 IPD.

This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal.  However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.

Fitch is continuing to assess the other European RMBS transactions
as detailed in Fitch's comment of Sept. 16, 'Fitch Assessing
Lehman Counterparty Exposure in 31 European RMBS Transactions'.
Further commentary or rating actions will take place as warranted.


EUROSAIL-UK: Fitch Puts 'B'-Rated Class FTc Notes on Watch Neg.
-----------------------------=---------------------------------
Fitch Ratings has placed seven tranches of Eurosail - UK 2007-1 NC
PLC on Rating Watch Negative following the downgrade of Lehman
Brothers Holdings Inc.  Eurosail - UK 2007-1 NC PLC has
counterparty exposure to LBHI or its subsidiaries via a
fixed/floating rate swap and a basis rate swap.  Due to the effect
of these hedges on the transaction, failure to replace the
counterparties could potentially result in downgrades, especially
on the lower rated notes.

Eurosail UK 2007-1 NC Plc:

  -- Class A1a (ISIN XS0284926937): affirmed at 'AAA'; Outlook
     Stable

  -- Class A1c (ISIN XS0284929287): affirmed at 'AAA'; Outlook
     Stable

  -- Class A2a (ISIN XS0284931267): affirmed at 'AAA'; Outlook
     Stable

  -- Class A2c (ISIN XS0284945564): affirmed at 'AAA'; Outlook
     Stable

  -- Class A3a (ISIN XS0284931853): affirmed at 'AAA'; Outlook
     Stable

  -- Class A3c (ISIN XS0284999496):affirmed at 'AAA'; Outlook
     Stable

  -- Class A3c DAC (ISIN XS0285007182): affirmed at 'AAA'; Outlook
     Stable

  -- Class B1a (ISIN XS0284932315): affirmed at 'AA'; Outlook
     Stable

  -- Class B1c (ISIN XS0284947263): affirmed at 'AA'; Outlook
     Stable

  -- Class C1a (ISIN XS0284933719): 'A'; Rating Watch Negative

  -- Class D1a (ISIN XS0284935094): 'BBB'; Rating Watch Negative

  -- Class D1c (ISIN XS0284950994): 'BBB'; Rating Watch Negative

  -- Class DTc (ISIN XS0284954988): 'BBB'; Rating Watch Negative

  -- Class E1c (ISIN XS0284956330): 'BB'; Rating Watch Negative

  -- Class ETc (ISIN XS0284957064): 'BB'; Rating Watch Negative

  -- Class FTc (ISIN XS0284958542): 'B'; Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swaps were
designed to hedge.

As of the last IPD in September 2008 the fixed/floating swap
generated 2.10% of the available interest revenue, and the basis
rate swap generated a further 0.28% of the available revenue.  The
impact of the fixed/floating swap will reduce over time as loans
revert to variable rate, with the majority reverting by October
2009.  The basis rate swap can potentially cause more of an affect
on portfolio income over time, as approximately 13.67% of the pool
will ultimately reference a variable rate linked to the Bank of
England base rate, compared to approximately 2.25% at the
September 2008 IPD.

This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal.  However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.

Fitch is continuing to assess the other European RMBS transactions
as detailed in Fitch's comment of Sept. 16, 'Fitch Assessing
Lehman Counterparty Exposure in 31 European RMBS Transactions'.
Further commentary or rating actions will take place as warranted.


FEDERAL-MOGUL: Court Bars Creditors from Filing Complaints
----------------------------------------------------------
Federal-Mogul Corp. and its debtor-affiliates notify parties-in-
interest that all proceedings in an adversary complaint with
respect to Compagnie Europeenne d' Assurances Industrielles, S.A.,
are stayed pursuant to CEAI's Chapter 15 filing.

Donald M. Ransom, Esq., at Casarino Christman Shalk Ransom &
Doss, P.A., in Wilmington, Delaware, relates that the U.S.
Bankruptcy Court for the Southern District of New York has
recognized CEAI's foreign proceeding and granted permanent
injunction on all claims against CEAI on September 26, 2007.

CEAI has reorganization proceedings before the High Court of
Justice of England and Wales with respect to CEAI's proposed
Scheme of Arrangement, pursuant to Section 425 of the Companies
Act 1985 of England and Wales.  The U.K. Court has prohibited all
creditors from seizing, repossessing, transferring, relinquishing
or disposing of any property of CEAI in contravention of, or
inconsistent with, the Arrangement.

The New York Court, specifically, has permanently prohibited all
creditors from:

  1. commencing or continuing any action or legal proceeding in
     connection with Arrangement Liabilities or any claims
     against CEAI;

  2. enforcing any judicial, quasi-judicial, administrative
     judgment, assessment or order, or arbitration award ]
     obtained in connection with any Arrangement liabilities or
     claims against CEAI arising out of the Arrangement
     liabilities or any claims or any proceeds from them against
     CEAI, CEAI's business or any of CEAI's property in the
     United States.

  3. invoking, enforcing or relying on the benefits of any
     statue, rule or requirements of federal, state, or local
     law or regulation required that CEAI establish or post
     security in the form of a bond, letter of credit or
     otherwise as a condition of prosecuting or defending any
     proceedings, except as explicitly provided for by the
     Court; and

  4. taking any action in contravention of, or in inconsistent
     with, the Arrangement.

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

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.

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

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan.  On July 28, 2004, the
District Court approved the Disclosure Statement.  The estimation
hearing began on June 14, 2005.  The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007.  The Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14.  Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.

(Federal-Mogul Bankruptcy News, Issue No. 172; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)


LEHMAN BROTHERS: Restructures Business; Axes 750 Jobs
-----------------------------------------------------
Following the appointment of Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, as joint administrators to Lehman Brothers International
(Europe) and Lehman Brothers Limited on Sept. 15, 2008, the
administrators confirmed that a restructuring of the business was
necessary and 750 employees have been made redundant with effect
from Tuesday, Sept. 30, 2008.

Tony Lomas, partner, PricewaterhouseCoopers LLP, said:  "It is
extremely disappointing that despite exhausting all avenues these
jobs could not be saved.  As we move into our third week, we
continue to be focused on maximizing the value of recoveries for
creditors, while minimizing the impact on other stakeholders as
much as possible."

Arrangements are being made to ensure that over the coming days,
the individuals affected by this have the opportunity to attend a
one on one meeting to discuss how this impacts them personally.

                  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 Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.

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

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


MARBLE ARCH: Fitch Puts 'BB'-Rated Class E1c Notes on Watch Neg.
----------------------------------------------------------------
Fitch Ratings has placed three tranches of Marble Arch Residential
Securitization Ltd No 4 on Rating Watch Negative following the
downgrade of Lehman Brothers Holdings Inc.  MARS4 has counterparty
exposure to LBHI or its subsidiaries via a fixed/floating rate
swap and a basis rate swap.  Due to the effect of these hedges on
the transaction, failure to replace the counterparties could
potentially result in downgrades, especially on the lower rated
notes.

Marble Arch Residential Securitization Ltd No 4

  -- Class A2b (ISIN XS0270499667) 'AAA' affirmed; Outlook: Stable

  -- Class A2c (ISIN XS0270512949) 'AAA' affirmed; Outlook Stable

  -- Class A3c (ISIN XS0270513590) 'AAA' affirmed; Outlook Stable

  -- Class A3c DAC (ISIN XS0271098880) 'AAA' affirmed; Outlook
     Stable

  -- Class B1a (ISIN XS0270496994) 'AA' affirmed; Outlook Stable

  -- Class B1b (ISIN XS0270510224) 'AA' affirmed; Outlook Stable

  -- Class B1c (ISIN XS0270513756) 'AA' affirmed; Outlook Stable

  -- Class C1a (ISIN XS0270497612) 'A' affirmed; Outlook Stable

  -- Class C1c (ISIN XS0270513830) 'A' affirmed; Outlook Stable

  -- Class D1a (ISIN XS0270498180) 'BBB-' on Rating Watch Negative

  -- Class D1c (ISIN XS0270513913) 'BBB-' on Rating Watch Negative

  -- Class E1c (ISIN XS0270514309) 'BB' on Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swaps were
designed to hedge.

As of the last IPD in September 2008 the fixed/floating swap was
due to generate GBP0.2 million, while proceeds due from the basis
rate swap amounted to GBP0.68 million.  According to the investor
report for September 2008, the subsidiary of LBHI failed to meet
the payments due, causing the issuer to make further draws on the
reserve fund.  In September 2008 the reserve fund in MARS4 stood
at GBP9.9 million, i.e. 21.46% below its target amount.

This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal.  However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.

Fitch is continuing to assess the other European RMBS transactions
as detailed in Fitch's comment of 16 September, 'Fitch Assessing
Lehman Counterparty Exposure in 31 European RMBS Transactions'.
Further commentary or rating actions will take place as
warranted.'


MEWSGREEN LTD: Brings in Joint Administrators from PwC
------------------------------------------------------
Nicholas Edward Reed and Ian David Green and Russell Stewart Cash
of PricewaterhouseCoopers LLP were appointed Sept. 12, 2008, joint
administrators of:

   -- Mewsgreen Ltd. (Company Number 05477089);

   -- Waxton Properties Ltd. (Company Number 05477089);

   -- Dimehall Ltd. (Company Number 05891270);

   -- Centurion Management (Europe) Ltd.
     (Company Number 05413590);

   -- Landbury Corporate Ltd. (Company Number 05871038); and

   -- Downs Court Group Ltd. (Company Number 00971096).


NEW CAP: Scheme Administrator Calls for Submission of Claims
------------------------------------------------------------
John Gibbons, the duly appointed liquidator and scheme
administrator of New Cap Reinsurance Corp. Ltd., calls for all the
Debtor's creditors to submit their claims to him for adjudication.

Claims must be submitted to Mr. Gibson using the claim form that
can be obtained from the Debtor's Web site at:

            http://www.newcapaustralia.com.au

or from Mr. Gibson at:

     New Cap Reinsurance Corp. Ltd.
     c/o Ernst & Young
     Attn: John Gibbons & Keiran Hutchison
     680 George St.
     Sydney, NSW 2000, Australia
     Fax: +61 2 9248 5209

Creditors must note that only due claims will be adjudicated by
Mr. Gibbons during the initial reserving phase of the scheme of
arrangement with the Debtor, but the claim form must also include
all outstanding claims and IBNR claims.

Creditors must also note that they must notify Mr. Gibbons of any
outstanding claims or IBNR claims that become due claims (in part
or whole) after submission of the claim form (and before the
claims bar date), providing supporting information and requesting
adjudication of the due claims.

New Cap Reinsurance Corp. (Bermuda) Ltd. and its New Cap
Reinsurance Corp. Ltd. subsidiary filed chapter 11 petitions in
the U.S. Bankruptcy Court in Manhattan on April 27, 1999, with
the parent estimating both assets and liabilities at over
US$100 million.  The parent company, based in Hamilton, Bermuda,
is engaged in the business of insurance and reinsurance whereas
the Sydney, Australia-based subsidiary, founded in 1997, writes
worldwide casualty, catastrophe, marine, occupational, and
personal insurance policies.

The Supreme Court of Bermuda and the High Court of Justice of
England and Wales sanctioned on Feb. 23, 2006, a Scheme of
Arrangement between New Cap Reinsurance Corporation (Bermuda)
Limited, and the scheme creditors of the company.

Copies of the orders sanctioning the Scheme were delivered to
the registrars of companies in Bermuda and England on the same
day.  The Scheme became effective in both Bermuda and England on
that date.


NICHOLSON PROPERTIES: Taps KPMG as Joint Administrators
-------------------------------------------------------
Gerard Anthony Friar and Blair Carnegie Nimmo of KPMG LLP were
appointed joint administrators of Nicholson Properties (Carlisle)
Ltd. (Company Number 05593721) on Sept. 17, 2008.

The company can be reached at:

         Nicholson Properties (Carlisle) Ltd.
         9b King Street
         Penrith
         Cumbria
         CA11 7AJ
         England


ROSEBYS: Brand Name Sold to Indian Parent GHCL
----------------------------------------------
Kevin Reed of Accountancy Age reports that the brand name of
Rosebys has been sold to its Indian parent GHCL.

According to the report, the Rosebys group of 280 stores will
continue to trade under license while a buyer is sought.

Any purchasers will be able to license the brand on terms to be
agreed with the administrators, the report adds.

As a result of the brand sale the companies affected will change
their names from Rosebys to Textile & Design.  The new names are:
Textile & Design Limited (formally Rosebys Operations Limited);
Textile & Design (No.1) Limited (formally Rosebys Holdings
Limited); Textile & Design (No.2) Limited (formally Rosebys (2004)
Limited); and Textile & Design (No.3) (formally Rosebys), the
report discloses.

Rosebys, the report relates, appointed joint administrators from
KPMG on Sept. 25.

Howard Smith, joint administrator at KPMG, said Rosebys
experienced difficult trading conditions, resulting to continuing
losses.

Mr. Smith noted the company has been unable to refinance.

Based in Yorkshire, Rosebys is a textiles retailer.  The company
has an annual turnover of GBP100 million.  It employs 2,000 staff.


SOUTHERN PACIFIC: Fitch's Ratings Unaffected by Lehman's Issues
---------------------------------------------------------------
Fitch Ratings says Southern Pacific Financing 06-A plc, in which
an entity related to the Lehman Brothers group is acting as
interest rate cap counterparty, is not affected by the recent
downgrade of Lehman Brothers Holding Inc. and its subsidiaries.
Should the interest rate cap fail to be replaced, this would not
result in an immediate change to the current ratings of this UK
non-conforming transaction.

The current interest rate cap is provided by Lehman Brothers
Special Financing and guaranteed by Lehman Brother Holding Inc.,
with these conditions:

Southern Pacific Financing 06-A plc
  -- Cap 1 Strike rate: 8%, expiry date: June 2010
  -- Cap 2 Strike rate: 4.91%, expiry date: December 2010

The purpose of the first cap is to generate additional revenue in
case the floating interest rate paid on the notes exceeds the
agreed strike rate.  The proceeds are calculated on a fixed
notional amount that represents 11% of the initial note balance at
close.  The current level of interest rates means that the cap is
not currently active and therefore no immediate benefit will be
lost to the transaction if the risk is not transferred.

The second interest rate cap is designed to hedge the mismatch
arising from the receipt of fixed rate loan payments to the issuer
and the payment of floating rate notes.  According to the latest
investor report, the percentage of fixed-rate loans in the pool is
38.5%, of which 37.2% will convert to variable rate on or prior to
December 2008, thus virtually eliminating the need for an interest
rate cap.  The absence of any immediate rating change is due
primarily to the limited amount of unmatched interest between
December 2008 and December 2010, when the last fixed rate loan is
due to revert to its standard variable rate.

In addition, the structure of the transaction includes an interest
rate cap reserve fund, funded by the interest rate cap
counterparty.  The amount outstanding on the interest rate cap
reserve fund is used as available revenue redemption funds and
provides an additional layer of security to the collateralized
notes.  According to the investor report for September 2008, this
reserve fund stood at GBP3.16m.

This transaction has no other counterparty exposure to Lehman
Brothers or its subsidiaries.  Southern Pacific Financing 06-A is,
however, serviced by Capstone Mortgage Services Limited, a
subsidiary of Lehman Brothers which was recently downgraded to a
servicer rating of 'RPS3+'/Rating Watch Negative.  Fitch will
continue to monitor the performance of the transaction and any
impact that the bankruptcy of Lehman Brothers has on the ability
of Capstone to service the mortgages.

The current ratings of this transaction are:

Southern Pacific Financing 06-A plc (SPF 06-A):
  -- Class A (ISIN XS0241080075): 'AAA'; Outlook: Stable
  -- Class B (ISIN XS0241082287): 'AA'; Outlook: Positive
  -- Class C (ISIN XS0241083764): 'A'; Outlook: Stable
  -- Class D1 (ISIN XS0241084572): 'BBB'; Outlook: Stable
  -- Class E (ISIN XS0241085033): 'BB'; Outlook: Stable

The agency will continue to closely monitor the asset performance
of this deal, and will continue to take rating action as
necessary, independent of its counterparty exposure.


STP GROUP: Goes Into Administration; 170 Jobs at Risk
-----------------------------------------------------
STP Group has gone into administration, putting 170 jobs at risk,
Manchester Evening News reports.  The company called in
administrators from Ernst & Young.

According to the report, STP, which has a turnover of around GBP23
million, will continue to trade as normal while administrators
assess the situation.

In November 2007, Endless, a turnover investment group, acquired
the business for GBP6.4 million, the report relates.

Based in New Mills, STP Group manufactures timber doors and
stairs.  It supplies joiners, builders and builders' merchants.


ULTRAMOVE LTD: Appoints Joint Administrators from BDO Stoy
----------------------------------------------------------
C. K. Rayment and M. H. Thompson of BDO Stoy Hayward LLP were
appointed joint administrators of Ultramove Ltd. (Company Number
04695696) on Sept. 17, 2008.

The company can be reached at:

         Ultramove Ltd.
         c/o BDO Stoy Hayward LLP
         125 Colmore Row
         Birmingham
         B3 3SD
         England


WARNER MUSIC: Names Steven Macri as Chief Financial Officer
-----------------------------------------------------------
Warner Music Group Corp. disclosed in a Securities and Exchange
Commission filing on Sept. 16, 2008, that Lyor Cohen and
Michael Fleisher have each been promoted to Vice Chairman and
Steven Macri has been named Chief Financial Officer.

Mr. Cohen has been named Vice Chairman, Warner Music Group Corp.
and Chairman and CEO, Recorded Music - Americas and the U.K. In
his new position, Mr. Cohen will add oversight of WMG's U.K. and
Latin American recorded music operations to his current
responsibilities in the U.S. and Canada.

Mr. Fleisher has been named WMG's Vice Chairman, Strategy and
Operations.  In his new position, Mr. Fleisher will oversee global
corporate strategy and operations and will lead the transformation
of WMG's business models and operational processes.  He will also
continue to lead corporate development as well as the company's
investor relations and information technology departments.

Mr. Macri has been named Executive Vice President and Chief
Financial Officer of WMG.  In his new position, he will be
responsible for the company's worldwide financial operations.
Mr. Macri, age 39, has served as WMG's Senior Vice President and
Global Controller since February 2005.  Prior to joining WMG, he
held the position of Vice President Finance at Thomson Learning
(now Cengage Learning), which was a division of The Thomson
Corporation.  From 1998 to 2004, Mr. Macri held various financial
and business development positions at Gartner, Inc. including SVP,
Business Planning and Operations and SVP, Controller.

Mr. Macri has entered into an employment agreement with Warner
Music Inc. on July 21, 2008.  The employment agreement, among
other things, includes:

  -- the term of Mr. Macri's employment agreement shall end on
     Dec. 31, 2012; and

  -- upon elevation to the position of Chief Financial Officer,
     an annual base salary of US$600,000 and a target bonus of
     US$600,000.

In the event the Company terminates his employment agreement for
any reason other than for cause or if Mr. Macri terminates his
employment for good reason, each as defined in the agreement,
Mr. Macri will be entitled to severance benefits equal to:

  -- US$1,200,000;

  -- a pro-rated target bonus; and

  -- continued participation in the Company's group health and
     life insurance plans for up to one year after termination.

The employment agreement also contains standard covenants relating
to confidentiality and a one-year post-employment non-solicitation
covenant.

In addition, pursuant to the terms of Mr. Macri's employment
agreement, he received an award of 175,000 stock options of WMG.
The option grant was made under WMG's Amended and Restated 2005
Omnibus Award Plan.  Pursuant to WMG policy, the options were
granted on Aug. 15, 2008, the first 15th of the month following
approval of the grant by the Compensation Committee and execution
of the employment agreement, and the exercise price of the options
is the "fair market value" of the WMG common stock as defined in
the Plan, which is the closing price on the NYSE on the grant date
or the last preceding date if there is no such sale on that date.
The exercise price of the options is US$7.56 per share, which was
the closing price on Aug. 15, 2008.  The options will generally
vest 25% a year over four years (subject to continued employment)
and will have a term of 10 years.

                     About Warner Music

Warner Music Group Corp. -- http://www.wmg.com/-- (NYSE: WMG)
is a publicly traded in the United States.  With its broad
roster of new stars and legendary artists, Warner Music Group is
home to a collection of the best-known record labels in the
music industry including Asylum, Atlantic, Bad Boy, Cordless,
East West, Elektra, Lava, Nonesuch, Reprise, Rhino, Roadrunner,
Rykodisc, Sire, Warner Bros. and Word.  Warner Music
International, a leading company in national and international
repertoire, operates through numerous international affiliates
and licensees in more than 50 countries.  Warner Music Group
also includes Warner/Chappell Music, one of the world's leading
music publishers, with a catalog of more than one million
copyrights worldwide.

Outside the United States, the company has two subsidiaries in
Austria, one in Nova Scotia and another in Luxembourg.  It has
Latin American operations in Argentina, Brazil and Chile.

                       *     *     *

As reported in the Troubled Company Reporter on June 2, 2008,
Standard & Poor's Rating Services affirmed its ratings on New York
City-based Warner Music Group Corp., including its 'BB-' corporate
credit rating, based on its expectation that the company will have
sufficient resources to meet its financial covenant step-downs
over the near term.

S&P removed all ratings from CreditWatch with negative
implications, where they were placed on Feb. 22, 2007.  At the
same time, S&P raised its rating on the company's US$1.65 billion
senior secured credit facility to 'BB' from 'BB-' and revised the
recovery rating to '2' from '4'.  The '2' recovery rating
indicates S&P's expectation that lenders can expect substantial
(70%-90%) recovery in the event of a payment default.  The outlook
is negative.

Warner Music reported total assets of US$4.5 billion, total
liabilities of US$4.6 billion, and US$99 million in stockholders'
deficit as of June 30, 2008.


* U.K.: Regulators Blame Hedge Funds Over Lehman and HBOS Demise
----------------------------------------------------------------
Bloomberg News reported that London is turning against the
US$450 billion hedge-fund industry that helped make the city a
contender for the title of world financial capital.  U.K.
regulators and lawmakers blame an estimated 980 hedge funds that
reside in Britain, mostly in London, over the bankruptcy of Lehman
Brothers Holdings, Inc. and a government-brokered takeover of HBOS
Plc, Bloomberg related.

Harbinger Capital Partners Fund chief Philip Falcone was singled
out by the Daily Mirror branding him a "greedy pig" for short
selling, Bloomberg stated.

Bloomberg noted that Britain's Financial Services Authority moved
first among the world's regulators to ban short selling, after
bank stocks plunged and Lehman collapsed.

Lawmakers, including Ed Balls, Prime Minister Gordon Brown's main
cabinet ally, are pushing for tougher oversight, Bloomberg
reported.

"People are upset at the swift change of sentiment," Bloomberg
related, citing Jacob Schmidt, chief executive officer of London-
based hedge fund adviser Schmidt Research Partners.  He said that
"[t]he demonization of hedge funds isn't healthy."


* Plantation Place Noteholders Tap Bingham McCutchen as Adviser
---------------------------------------------------------------
An ad hoc committee of holders of GBP380,000,0000 Class A Secured
Floating Rate Notes due 2016 ISIN XS0262650889 and GBP51,500,000
Class B Secured Floating Rate Notes due 2016 ISIN XS0262650962
issued by REC Plantation Place Limited has appointed Bingham
McCutchen (London) LLP as its legal counsel.

Any questions to Bingham McCutchen should be directed to:

          James Terry
          james.terry@bingham.com
          +44 (0) 207 661 5310)

          or

          Philip Knott
          philip.knott@bingham.com
          +44 (0) 207 661 5401)


* Profitability, Business Down in UK Financial Services Sector
--------------------------------------------------------------
Profitability and business volumes in the UK financial services
sector have fallen at record rates as the industry continues to be
battered by the credit crunch, a new survey said Monday.

Business was lower across all customer bases, particularly
financial institutions and individuals.  Meanwhile incomes fell
heavily, and the cost of credit increased for a third consecutive
quarter.

Job losses continued, but is set to rise sharply over the coming
three months.  And 99% of firms think that it will take more than
six months for "normal" market conditions to return.

Asked how their business volumes had fared in the three months to
early September, 10% of firms said they had risen, while 61% said
they had dropped.  The resulting balance of -51% was much worse
than expected, and was the weakest result since the survey started
in December 1989.  Volumes are expected to fall again over the
coming three months, but at a slower rate (-31%).

Profitability in the sector declined at a record rate, as a
balance of 49% of firms reported a fall, and this rate is set to
continue over the next three months.

The value of fee, commission and premium incomes fell over the
last three months, as did income from net interest, investment or
trading.  All have been falling for a year and dropped more
heavily than in June's survey.  Slightly more moderate falls are
expected in the coming quarter.

Business sentiment fell sharply again, as a balance of 59% said
they are less optimistic about the overall business situation in
the financial services sector than they were in June.

The volume of business shrank across all customer bases, but was
most marked with financial institutions (a balance of -46%) and
private individuals (-41%), where further contractions are
expected over the coming three months.

Total operating cost growth stabilized (a balance of +3%) and a
drop is now expected over the coming three months.  Average
operating costs remained flat, as expected.

In an indication that credit continues to become more expensive,
average spreads, which mark the difference between the rates at
which money is borrowed and lent, widened for a third quarter
running, although a gentler increase is predicted in the next
three months.  A balance of 19% of firms reported an increase in
the value of non-performing loans, or bad debt, and 24% expect a
rise in the coming quarter, in what is becoming a steadily rising
trend.

Numbers employed in the sector fell (a balance of -16%) but a
significantly bigger reduction is expected over the three months
ahead (-44%).

Capital expenditure in real estate and machinery is expected to be
lower in the next 12 months than in the past year.  Drops in IT
investment and marketing expenditure are also predicted, as firms
cut back to save costs and readjust for lower demand.

Firms cited the level of demand and strength of competition as the
factors most likely to limit business expansion over the next
year.  However, all the factors cited were below their long-run
averages, except the ability to raise funds.  This was above its
long-run average for the fifth quarter in a row.

Supplementary questions about the credit crunch, which have now
been asked for a fourth successive survey, showed that virtually
all financial services firms (99%) expect it to be more than six
months before "normal" financial market conditions resume. Asked
about the impacts of the credit crunch, firms said that reduced
sales or revenue growth was the greatest concern across both the
short and medium terms.

John Cridland, CBI Deputy Director-General, said: "One year after
the credit crunch first took hold, business volumes and
profitability in the financial sector have taken their hardest
hammering yet.  Firms have become more fearful about the extent
and length of the credit crunch, and they are now looking to cut
more jobs and scale back investment.

"The survey paints an increasingly bleak picture of the sector,
but the dramatic turbulence across the world of finance over the
past fortnight, and the renewed paralysis in interbank markets,
will only have depressed market confidence even further.

"Difficulties in this crucial sector will have huge implications
for the rest of the UK economy."

                          Banking

Banks saw the negative trend in their profitability accelerate
during the past three months, as the decline in the volume of
business outweighed the effect of higher spreads between lending
and borrowing.  Business with domestic customers was below normal
to the greatest extent since December 1991.  Numbers employed were
stable, but look set for a big fall in the next quarter.

                      Building Societies

Building societies saw profitability decline at a record rate over
the last three months, on the back of lower business volumes, fee
& commission income, and the first fall in spreads for a year.
Numbers employed were flat, as predicted, but are set to fall
heavily for the second time this year in the coming quarter.

Andrew Gray, UK banking advisory leader, PricewaterhouseCoopers
LLP, said: "As the banking sector faces up to growing credit
impairments, slowing revenues and higher funding costs, the sector
remains more depressed than at any other time since 1998 and has
given its most downbeat prediction for profitability in nineteen
years.  While banks again report an increase in average spreads, a
key challenge going forward will be how to improve customer
service and develop new revenue streams to compete in a world of
slowing lending growth.

"Building societies' confidence may have pulled back from its
lowest ebb, but sentiment remains negative and the sector faces a
marked downturn in business activity.  The threat of falling
profitability is putting market consolidation back on the agenda
and helps to explain why the usually cautious societies have a
negative expectation on headcount for the first time in six
years."

                     Life Insurance

Life insurers saw another steep fall in both new and total
business volumes over the three months to September, as well as
declines in income from premiums, investment and trading.  This
outweighed the further increase in spreads, with profitability
falling - but more slowly than in the prior quarter.  Numbers
employed fell heavily, and the reduction in headcount is expected
to continue at the same rate next quarter.

                     General Insurance

General insurers saw their volume of business decline relatively
moderately over the past three months, as well as reporting lower
income values and higher total costs.  Reflecting this,
profitability fell for the second successive quarter.  Meanwhile,
general insurers plan to raise their marketing and IT investment,
but not other investment, over the coming year relative to last.

Andrew Kail, UK insurance leader, PricewaterhouseCoopers LLP,
said: "After reporting a marked downturn in sentiment, general
insurers retain a negative outlook.  The premium levels in most
classes continue to fall, owing to softening rates and the
downward trend in business volumes.  Profitability is falling in
response to lower like for like premiums combined with falling
investment returns, hit by the falling stockmarket values.  The
insurers are responding by managing the cost base down, including
an expectation that numbers employed will fall over the coming
months.

"Despite increasingly challenging market conditions, life insurers
are feeling slightly more sanguine about their prospects.  The
falling volumes, particularly in the retail business, are driving
lower profitability.  This, combined with the continuing
volatility in investment market, suggests that the sector will
need to keep a close watch on capital levels over the coming
months.  The sector is responding to the current environment by
"tightening its belt" and managing its operating costs."

                   Securities Trading

Business volumes fell sharply over the last three months,
completing a full year of declines.  Fee & commission income and
the value of interest, investment or trading income also declined
for the fourth successive survey.  Reflecting this, lower
profitability was reported.  Employment within securities trading
fell back less rapidly than it did last quarter, but a steeper
reduction is expected in the three months to December.

                   Fund Management

Business volumes fell for all survey respondents, ending a three
quarter sequence of increases.  The drop in volumes was
particularly pronounced with financial institutions and private
individuals.  Furthermore, the value of fee and commission income
was down, as was net interest, investment or trading income.  The
sharp falls in volumes of business and value of income over the
past quarter, meant that profitability fell for all respondents.

Robert Mellor, financial services tax leader,
PricewaterhouseCoopers LLP, said: "Securities traders report a
negative picture of business volumes, commission income and
trading performance and profitability predictions are at their
weakest level since the emerging markets crisis of 1998.  Levels
of business with financial institutions were a disappointment,
suggesting that concerns over counterparty creditworthiness
persisted into the survey period.  Activity across fixed income
remains subdued while investment banking continues to be affected
by reduced access to funding.  Setting an appropriate level of
costs and staffing is emerging as a key challenge for the sector.

"Fund managers' sentiment has plunged.  Facing up to falling asset
prices and net fund outflows across all customer segments, the
sector reports negative trends in business with retail,
institutional and corporate customers.  Fund managers are becoming
increasingly resigned to a long downturn, and are responding
accordingly but the sector needs to consider how it can profit
from increasing levels of risk aversion among investors."

                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.


* Pension Deficits May Hit U.K. Cos.; Trustees Coax More Cash
-------------------------------------------------------------
The Wall Street Journal wrote on Sept. 22, 2008, that finance
directors of British public companies with defined-benefit pension
schemes are expected to post pension deficits as the market falls.
Accounting rules insist the companies include pension deficits on
their balance sheets.  Otherwise, companies might resolve to treat
those accounts as long-term investment vehicles.

Among the companies facing the challenge are Compass Group PLC and
TUI Travel PLC, which had deficits last year and whose accounting
years end on September 30, the Journal noted.  British Airways
PLC, BAE Systems PLC and Taylor Wimpey PLC had deficits last year
equal to at least 10% of their market capitalization.  Actuaries
expect more FTSE 100 companies to join their ranks this year, the
report added.

According to the report, "[a]ccounting rules have changed recently
and companies are now exposed to recovery plans and keeping
pension-fund deficits on balance sheets," Mark Hyde-Harrison,
chief executive of Barclays PLC's Barclays Pension fund, at
GBP18 billion (US$33 billion) one of the U.K.'s largest.

A sharp rise in expected long-term inflation, from 3.5% at the
start of the year to 3.9%, has also knocked funding levels, the
Journal reported.

Recent results of local-government pension schemes shows the
funding position had deteriorated badly before the market fell
mid-September, the Journal observed.

According to Jerome Melcer, a partner in the mergers-and-
acquisitions advisory practice at U.K. actuarial and investment
consultancy firm Lane Clark & Peacock, the rising deficits meant
pension-fund trustees would try to negotiate more cash from
companies, the Journal said.  The trustees want to make good the
asset losses and to pre-fund expected increases in pension
payments arising from higher inflation.  However, companies are
going to be reluctant to give it up and negotiations would be
tense and protracted, Mr. Melcer warned.

Companies will be looking at ways to reduce or manage the
financial risk arising from their pension funds, Mr. Melcer added.
But some of those options are some of the companies' reach.


* European Servicers Aim to Optimize Portfolio Markets, S&P Says
----------------------------------------------------------------
European servicers are taking various steps to ensure optimum
portfolio performance in the current adverse market conditions,
according to the latest European servicer report card published by
Standard & Poor's Ratings Services.

"Our ranked servicers have found that the current market
conditions have resulted in a marked slowdown in the level of new
business they are receiving," said servicer analyst Beverley
Dunne.  "This is both in terms of new lenders entering the market
and the number of new accounts being produced by existing
lenders."

S&P understands that they are continuing their efforts to increase
the level and range of service that they provide to lenders with
nonperforming loan portfolios and are actively looking to manage
those portfolios to maximize cash collected from repossessions and
minimize losses.

A key measure that servicers S&P ranks are taking is to segment
and identify borrowers and loans that might be at risk.  They are
also aiming for earlier and more frequent borrower contact using
higher numbers of experienced management and staff with increased
levels of training.

Ms. Dunne added: "We have also found that our ranked servicers
have been focused on arrears management and are seeking special
servicer rankings in addition to primary servicer rankings.  This
is to attract new clients focused on nonperforming loans and to
reassure existing clients by demonstrating the efforts they have
taken in connection with arrears management."

So far in 2008, three servicers—two residential and one commercial
-- have either received or are in the process of receiving special
servicer rankings for the first time.

S&P maintains 47 public rankings on 26 European servicers.  The
published report provides summaries of the performance of these
servicers.


* S&P Predicts Increasing Downgrades for European CMBS Markets
--------------------------------------------------------------
Standard & Poor's Ratings Services has published the outcome of a
six-month study of ratings on European commercial mortgage-backed
securities (CMBS), blending its traditional transaction-focused
credit analysis with a broad exit yield-on-debt metric -- a proxy
for both options available to a borrower when it redeems a loan at
maturity.

The study notes that the majority of ratings remain unchanged from
their initial levels, although the challenging real estate
environment in Europe will result in losses for junior tranches.
The stress scenarios show the impact of further losses on the
capital structure.  The analysis did not take into account losses
arising from counterparty risks, such as from interest rate swap
providers.

"As we look forward, loan defaults will continue to rise from
historical lows and widespread losses for speculative-grade rated
tranches could result," commented credit analyst Michelle Weston.
"We think the challenging real estate environment, the slow
realization that the difficulties in real estate capital and debt
markets cannot be quickly resolved, and the deteriorating economic
outlook could see further weakness in loan performance and
recoveries."

Ms. Weston added:  "In these circumstances losses could
appropriately hit investment-grade tranches."

"We have taken into account in our ratings much of what we have
seen, with effective increases in whole subordination levels and
lower loan-to-market value attachment points.  We do not expect
the challenging conditions to endure beyond 2011," noted credit
analyst Anne Horlait.  "In our ratings, we are, however, assuming
that noteholders, servicers, and special servicers make informed
choices in accordance with prudent lender standards."

Ms. Horlait added:  "For loans where cash flow remains strong but
there has been adverse cap rate movement, any premature
enforcement action could trigger incremental rating changes.
Acquisitions of properties made toward the bottom of the cycle are
often the most profitable for their acquirers at the expense of
vendors and their lenders who were unable to hold on."


                            *********

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.


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