TCREUR_Public/081010.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

           Friday, October 10, 2008, Vol. 9, No. 202

                            Headlines

A U S T R I A

DIMEX ACCORD: Claims Registration Period Ends October 27
SPORT 2000: Claims Registration Period Ends October 20
STG SILOTRANSPORT: Claims Registration Period Ends October 27


B E L G I U M

CHEROKEE INTERNATIONAL: To Merge with Lineage Power Holdings
FORTIS BANK: Fitch Downgrades Individual Rating to 'F' from 'D'
FORTIS NV: Ping An to Lose CNY15.7 Billion on Investment in 3Q


F R A N C E

TEREOS UNION: S&P Revises Outlook to Negative, Keeps 'BB' Ratings


G E R M A N Y

BEHR GMBH: 2008 First Half Sales Up 5% to EUR1.81 Billion
BEHR GMBH: Moody's Cuts Senior Unsecured Rating to 'Ba2'
KOETHEN GMBH: Claims Registration Period Ends October 14
BMC MANAGEMENT: Claims Registration Period Ends October 14
DIE FUNDGRUBE: Claims Registration Period Ends October 14

EPOS 24 LOGISTIC: Claims Registration Period Ends October 14
FORD MOTOR: German Unit to Cut Production, Lay Off 204 Workers
GARTNERSTRASSE 120 MBH: Claims Registration Period Ends Oct. 14
H.S.W. TRANSPORTE: Claims Registration Period Ends October 14
PAPIERFABRIK SCHEUFELEN: Signs Powerflute's Takeover Proposal

UNITYMEDIA: S&P Lifts Ratings on Subordinated Unsecured Notes to B


I C E L A N D

GLITNIR BANKI: Moody's Cuts Bank Financial Strength Rating to E
GLITNIR BANKI: Fitch Affirms Individual Rating at 'F'
KAUPTHING BANK: Moody's Lowers BFSR to 'D+'; Still on Review
LANDSBANKI ISLANDS: Moody's Downgrades BFSR to E from C-
LANDSBANKI ISLANDS: Fitch Cuts Individual Rating to 'F'

STRAUMUR BURDURAS: Fitch Chips Individual Rating to 'D'

* ICELAND: Takes Emergency Action to Stave Off Looming Bankruptcy


I R E L A N D

EDUCATION MEDIA: S&P Shifts Outlook to Negative, Affirms B- Rating
ELAN CORP: Credit Crisis Delays Sale of Drug Delivery Unit
IRALCO: Completes Sale to C&F Tooling; Deal Saves 300 Workers

* No Default on S&P's Ratings If Ireland Won't Honor Guarantees


K A Z A K H S T A N

ALSHYN-ATYRAU LLP: Creditors Must File Claims by November 15
CONTINENT GROUP: Claims Deadline Slated for November 18
DA-FF-CAPITAL LLP: Claims Filing Period Ends November 18
DIGITAL ELECTRONICS: Creditors' Claims Due on November 18
KAZAKH MORTGAGE: Fitch Holds 'BB' Rating on Class C Securities

NURBEK KURYLYS: Claims Registration Ends November 15
PETRO TECH: Creditors Must File Claims by November 15
TARLA KUIUMDJULUK: Claims Deadline Slated for November 18
TAS LLP: Claims Filing Period Ends November 15
VAK-AGRO LLP: Creditors' Claims Due on November 18

VITA-XVII LLP: Claims Registration Ends November 18


K Y R G Y Z S T A N

SVET INVEST: Creditors Must File Claims by November 12


L U X E M B O U R G

FORTIS BANQUE: Fitch Downgrades Individual Rating to 'F' from 'D'


N E T H E R L A N D S

HEAD N.V.: Moody's Junks CFR to Caa1; Outlook Stable
INDOVER BANK: Assets Frozen; Administrators Appointed
TRONOX INC: Jonathan Gallenn Discloses 10.9% Stake


R U S S I A

ENER-PRED LLC: Creditors Must File Claims by October 26
GAZO-APPARAT PLANY: Creditors Must File Claims by October 26
OKTYABRSK-KRAY-GAZ: Creditor Must File Claims by November 26
REPAIR WORKS: Creditors Must File Claims By October 26
RESURS-INVEST CLSC: Creditors Must File Claims By October 26

ROSSIYSKY KAPITAL: Moody's Cuts National Scale Rating to B3.ru
SISTEMA-HALS JSC: Fitch Cuts Long-Term Issuer Default Rating to B
SITRONICS JSC: Appoints Oksana Kovalevskaya as VP for Strategy
TRUB-MASH-POVOLZHYE: Names A. Postyushkov as Insolvency Manager
URAL-REM-MASH LLC: Creditors Must File Claims By October 26

* KARELIA: Fitch Holds Low-B Ratings; Changes Outlook to Positive
* KOMI REPUBLIC: Fitch Lifts Foreign & Local Currency IDRs to BB


S P A I N

METROVACESA SA: May Have to Ask Creditors for Waiver

* S&P Reports Decline of Spanish RMBS Performance in 2Q 2008


S W I T Z E R L A N D

AIP INVEST: Creditors Must File Proofs of Claim by Oct. 25
ALTERNATIVE ENERGY: Deadline to File Proofs of Claim Set Oct. 25
BECKER & PARTNER: Creditors Have Until Oct. 25 to File Claims
CERFMONT JSC: Proofs of Claim Filing Deadline is Oct. 23
DURAC HANDEL: Creditors' Proofs of Claim Due by Oct. 25

EUROSTROKE AGENCY: Oct. 25 Set as Deadline to File Claims
GENERAL MOTORS: Loses Third of Market Value at Thursday's Trading
RITMIC RECORDS: Creditors Must File Proofs of Claim by Oct. 25
UBS AG: Former Executive Settles Auction-Rate Related Case
VON ROLL: Deadline to File Proofs of Claim Set Oct. 25


T U R K E Y

VESTEL ELEKTRONIK: Moody's Cuts Ratings on US$255MM Notes to B3


U K R A I N E

COMMUNITY-PROM LLC: Creditors Must File Claims by October 12
DIAZHIO-HOLDING LLC: Creditors Must File Claims by October 12
KONOTOP ELECTROMECHANICAL: Creditors Must File Claims by Oct. 15
LVOV AGRICULTURAL: Creditors Must File Claims by October 15
MERTOLDI LLC: Creditors Must File Claims by October 15

METINVEST BV: Fitch Assigns 'BB-' LT Foreign & Local Currency IDRs
STOZHARY CJSC: Creditors Must File Claims by October 15
SV-RESOURCE LLC: Creditors Must File Claims by October 15
TSENTROBUILDING LLC: Creditors Must File Claims by October 12


U N I T E D   K I N G D O M

20:20 DEVELOPMENTS: Appoints Joint Administrators from KPMG
AMERICAN INTERNATIONAL: Gov't to Lend Firm Additional US$37.8BB
BRADFORD & BINGLEY: Banco Santander Says Acquisition May Add Value
BUSINESS MORTGAGE: Fitch Takes Rating Actions on Various Notes
CORVUS CAPITAL: CEO Mulls Firm Delisting and Payment of Dividend

EDEUS MORTGAGE: Brings in Administrators from KPMG
FOCUS: To Terminate 750 Workers Over Difficult Economic Climate
HERITABLE BANK: Fitch Trims Individual Rating to 'D'
INSTANT ACCESS: Head Puts Up Own Money to Lure Investors
LASER BROADCASTING: Files Liquidation Petition in Leeds Court

LUCITE INTERNATIONAL: Moody's Junks CFR to Caa1; Outlook Negative
MACGREGOR GOLF: Appoints Joint Administrators from KPMG
MOBESTAR HOLDINGS: Can't Secure Funding; Seeks Administrators
ONYX SECURITY: Calls in Joint Administrators from Vantis
PREMIER PROPERTIES: Taps Joint Administrators from KPMG

SKINNER LANE: Calls in Joint Administrators from KPMG
SRM HOLDINGS: Goes Into Administration
YRC WORLDWIDE: Reaffirms Financial Forecast for Second Half 2008
YRC WORLDWIDE: Warns of Likely Impairment of Goodwill, Trade Names

* UK Gov.'t Support to Banking Sector Won't Affect Moody's Ratings
* UK Gov't Support Won't Affect Banks' Credit Ratings, S&P Says
* PwC Says Interest Rate Cut May Weaken Impending Recession
* UK Non-Life Run-off Market Liabilities Fall, KPMG Survey Says
* UK Labor Market Conditions Deteriorate, KPMG Survey Says
* BCC Survey Says Domestic Economy Under Immense Pressure
* Moody's Reports Negative Outlook for European Retailers
* ECB Alters Eligibility Rules for Fine-Tuning Operations

* BOOK REVIEW: Distressed Investment Banking:


                         *********


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A U S T R I A
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DIMEX ACCORD: Claims Registration Period Ends October 27
--------------------------------------------------------
Creditors owed money by LLC Dimex Accord Profile have until
Oct. 27, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Johann Hochleitner
         Kirchenplatz 8
         4070 Eferding
         Tel: 07272/2255, 3781, 3782
         Fax: 07272/3783
         E-mail: office@iura.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:40 a.m. on Nov. 6, 2008, for the
examination of claims at:

         The Land Court of Wels
         Hall 101
         Maria Theresia Strasse 12
         First Floor
         Wels
         Austria

Headquartered in Alkoven, Austria, the Debtor declared bankruptcy
on Sept. 19, 2008, (Bankr. Case No. 20 S 114/08b).


SPORT 2000: Claims Registration Period Ends October 20
------------------------------------------------------
Creditors owed money by LLC Sport 2000 Suedpark have until
Oct. 20, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Alexander Todor-Kostic
         Neuer Platz 5/II
         9020 Klagenfurt
         Austria
         Tel: 0463/54155
         Fax: 0463/54155-44
         E-mail: office@a-h-t.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on Oct. 27, 2008, for the
examination of claims at:

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

Headquartered in Klagenfurt, Austria, the Debtor declared
bankruptcy on Sept. 23, 2008, (Bankr. Case No. 41 S 96/08b).


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

         Dr. Klaus Doernhoefer
         Franz Liszt-Gasse 1
         7000 Eisenstadt
         Austria
         Tel: 02682/62468
         Fax: 02682/66214
         E-mail: office@wirhabenrecht.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:45 a.m. on Nov. 10, 2008, for the
examination of claims at:

         The Land Court of Eisenstadt
         Hall F
         Eisenstadt
         Austria

Headquartered in Rattersdorf, Austria, the Debtor declared
bankruptcy on Sept. 22, 2008, (Bankr. Case No. 26 S 85/08i).


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


CHEROKEE INTERNATIONAL: To Merge with Lineage Power Holdings
------------------------------------------------------------
Cherokee International Corporation disclosed in a Securities and
Exchange Commission filing that it has entered into a definitive
merger agreement with Lineage Power Holdings, Inc., under which
Lineage will acquire all of the outstanding shares of the company.

Under the terms of the agreement, stockholders of Cherokee
International will receive US$3.20 per share of common stock held,
in an all cash transaction, representing an aggregate enterprise
value of approximately US$105 million.  The transaction has been
unanimously approved by the board of directors of Cherokee
International, and certain stockholders have agreed to vote their
Cherokee International shares in favor of the transaction.

"We believe the sale of Cherokee to Lineage will add value and
scale for our customers," said Jeffrey Frank, Cherokee's President
and Chief Executive Officer.  "Over the past 30 years, Cherokee
has earned a great reputation for our strong engineering team,
manufacturing, quality and responsiveness, all of which come down
to our outstanding employees and our focus on the customer.  Going
forward, our employees and customers will be well served by
becoming part of Lineage and The Gores Group portfolio of
companies.  Gores has a stellar reputation for customer
satisfaction and the proven ability to profitably grow its
businesses."

According to Ryan Wald, Managing Director of The Gores Group,
Cherokee will become a division of Lineage and will continue to be
a leader in the custom power solutions marketplace.

"We are impressed by the accomplishments that Jeff and his
management team have made to date regarding Cherokee's North
American and Asian operations," said Mr. Wald.  "We look forward
to partnering with them in those regions to create a more
compelling value proposition for our combined customers."

The transaction is subject to the approval of Cherokee
International's stockholders and to regulatory approvals. The
companies anticipate that the transaction will be completed in the
fourth calendar quarter of 2008.

Based in Tustin, California, Cherokee International Corp.
(NASDAQ:CHRK) -- http://www.cherokeellc.com/-- is a designer
and manufacturer of a range of switch mode power supplies for
original equipment manufacturers in the telecommunications,
networking, high-end workstations and other electronic equipment
industries.  The company has offices and manufacturing plants in
Tustin and Irvine, California, Wavre, Belgium, Bombay, India,
Guadalajara, Mexico, and Penang, Malaysia.

                         Going Concern Doubt

Mayer Hoffman McCann P.C. in Orange County, California, expressed
substantial doubt about the company's ability to continue as a
going concern after auditing the consolidated financial statements
of Cherokee International Corporation and subsidiaries as of Dec.
30, 2007, and Dec. 31, 2006.  The company's management anticipates
that there will be insufficient cash balances available to repay
the outstanding debt at its
maturity.

On Nov. 1, 2008, the US$46.6 million aggregate principal amount
outstanding under the company's 5.25% Senior Notes will become due
and payable. The company does not expect to have sufficient cash
available at the time of maturity to repay this indebtedness and
are currently working on a variety of possible alternatives to
satisfy this obligation.  The company also cannot be certain that
it will have sufficient assets or cash flow available to support
refinancing these notes at current market rates or on terms that
are satisfactory to the company.  If the company is unable to
refinance on terms satisfactory to it, it may be forced to
refinance on terms that are materially less favorable, seek funds
through other means such as a sale of some of assets, or otherwise
significantly alter its operating plan, any of which could have a
material adverse effect on its business, financial condition and
results of operation.  These circumstances create substantial
doubt about the company's ability to continue as a going concern.


FORTIS BANK: Fitch Downgrades Individual Rating to 'F' from 'D'
---------------------------------------------------------------
Fitch Ratings has placed Fortis Bank's and Fortis Banque
Luxembourg's Long-term Issuer Default Ratings of 'A+' on Rating
Watch Positive, following BNP Paribas's planned acquisition of
controlling stakes.  At the same time, Fortis Bank Nederland
(Holdings) is affirmed at Long-term IDR 'A+' with a Stable
Outlook.

The RWP on Fortis Bank and Fortis Banque Luxembourg reflects the
potential benefits from BNP Paribas, which has today announced
that it plans to acquire a 75% stake in Fortis Bank and a 67%
stake in Fortis Banque Luxembourg.  This acquisition is expected
to take place end-2008 or early 2009 and in the meantime the
Belgian government will take full control of Fortis Bank.

The respective additional capital injections announced this
weekend by the Belgian and Dutch governments into Fortis Bank and
Fortis Bank Nederland (Holdings) have reassured Fitch's view of
the governments' willingness to support these banks and Fortis
Banque Luxembourg.  Therefore, the Support Rating Floors of the
three banks remain at 'A+' and continue to underpin their Long-
term IDRs.  The Support Rating floor is based on Fitch's judgement
of a potential supporter's propensity to support a bank and of its
ability to do so.  The floor communicates Fitch's judgement of
whether a bank would receive support should this become necessary.

However, the capital injections are considered to be explicit
external support by Fitch.  Accordingly the Individual Ratings of
Fortis Bank and Fortis Banque Luxembourg have been downgraded to
'F'. In line with Fitch policy, this 'F' Individual rating is
retrospective in character, reflecting Fitch's opinion that the
banks needed support.  This rating will be in place for a short
period of time only.  Once clarity is achieved on how the support
measures, including BNP Paribas's prospective ownership, will
impact the banks' financial profile, management and business
model, Fitch will re-rate the banks and the Individual ratings
will be upgraded.

Fortis Bank
  -- Long-term IDR 'A+', placed on RWP
  -- Short-term IDR affirmed at 'F1+'
  -- Individual rating downgraded to 'F' from 'D'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'

Fortis Banque Luxembourg
  -- Long-term IDR 'A+', placed on RWP
  -- Short-term IDR affirmed at 'F1+'
  -- Individual rating downgraded to 'F' from 'D'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'

Fortis Bank Nederland (Holdings)
  -- Long-term IDR affirmed at 'A+', Outlook Stable
  -- Short-term IDR affirmed at 'F1+'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'

Fortis Bank Nederland
  -- Long-term IDR affirmed at 'A+', Outlook Stable
  -- Short-term IDR affirmed at 'F1+'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'


FORTIS NV: Ping An to Lose CNY15.7 Billion on Investment in 3Q
--------------------------------------------------------------
Ping An Insurance (Group) Co of China Ltd. expects to post a
CNY15.7 billion (US$2.29 billion) loss in the third quarter on its
investment in Fortis NV, in effect wiping out the company's
profits for the first nine months and halting its overseas
expansion plans, The Financial Times reports.

As reported by the Troubled Company Reporter-Europe, citing the
The Wall Street Journal, major European bank Fortis NV was bailed
out by a trio of governments after its shares slumped Thursday,
September 25, followed by another 20% decline the next day, amid
concerns about the company's solvency.  Particularly, investors
are concerned the firm would struggle to raise the EUR8.3 billion
(US$12.1 billion) it's seeking to bolster reserves, the TCR-EUR
report said.

Bloomberg News reported on October 6 that Ping An's shares fell
the most in a week in Hong Kong trading after saying it will take
a charge on losses from its investment in Fortis.  The stock,
Bloomberg News said, dropped 8% to close at HK$46, taking the
decline this year to 45%.

"The company will post a loss for the first three quarters as the
charge erases its profit in the first half.  Any third-quarter
profit won't be able to offset that loss even if the stock market
rebounds," Bloomberg News cited Peng Yulong, a Shanghai-based
analyst at Guotai Junan Securities Co., as saying.

According to Bloomberg News, Ping An's first-half profit fell 2.1%
to CNY9.49 billion after investment income plunged 64% as the
nation's stocks dropped.  Ping An has invested CNY23.87 billion in
Fortis shares since November last year.

Ping An spokesman Sheng Ruishen, the Daily notes, said it plans to
make provisions for impairment in its investment in Fortis but
will still maintain sufficient capital adequacy and a solid
financial position, with payment capability of more than 300%.
"The accounting treatment will impact on this year's profit only,
and it is predicted to recover to normal profit levels next year,"
Sheng said.

Meanwhile, the Times notes that Ping An plans to inject CNY20
billion in fresh capital into its life insurance subsidiary to
ensure it meets solvency and capital adequacy requirements.
However, net asset value per share and cash flow position would
not be affected after making the impairment provisions and it
expected earnings to return to normal next year, the same report
relates.

Moreover, the Daily adds, Ping An will also terminate its plans to
purchase Fortis' asset management company's 50% share.  The
halting of further investment in Fortis largely eases investors'
worries, given the increased turbulence in the global financial
market," the Daily cited Wang Xiaogang, a senior analyst with
Shanghai-based Orient Securities, as saying.

                     About Ping An Insurance

Ping An Insurance (Group) Co of China, Ltd. --
http://www.pingan.com/homepage/-- is a China-based company.  The
Company is engaged in providing a range of financial products and
services with a focus on life and property and casualty insurance
products.  The Company conducts its insurance business through
Ping An Life, Ping An Annuity and Ping An Health. The property and
casualty insurance business of the Company is conducted through
Ping An Property & Casualty and Ping An Hong Kong.  The Company
provides asset management services to the customers through Ping
An Trust.  In addition, Ping An Trust also provides infrastructure
investment and property investment services to other subsidiaries.
The Company conducts securities business through Ping An
Securities, and provide securities services to customers through
the PA18 Internet financial portal.  During the year ended
December 31, 2006, the Company completed the acquisition of
Shenzhen Commercial Bank.

                      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).


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F R A N C E
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TEREOS UNION: S&P Revises Outlook to Negative, Keeps 'BB' Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
France-based sugar and sugar derivatives producer Tereos Union de
Cooperatives Agricoles a Capital Variable to negative from stable.

At the same, S&P affirmed the 'BB' long-term corporate credit
rating on the group.  S&P also affirmed the 'BB' rating on the
senior secured bonds.  The '3' recovery rating remains unchanged,
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.

"The downward revision follows the new terms and conditions of
Tereos' waived syndicated loan covenants, which lessen the group's
financial flexibility," said S&P's credit analyst Michael Seewald.

The ratings continue to reflect Tereos' aggressive financial
profile stemming from the group's ongoing diversification and
transformation.  An additional ratings constraint is the margin
pressure in the generally protected European sugar market,
resulting from the European Commission's revision of sugar
regulations.  The group's satisfactory business risk rofile --
because of Tereos' position as the second-largest sugar processor
in the EU and its proven track record of operating efficiency and
diversification -- underpin the ratings.

"The negative outlook primarily incorporates Tereos' tightened
financial flexibility, and to a lesser extent, the more volatile
business environment in the agricommodity industry," said
Mr. Seewald.

These factors could prevent the group from meeting S&P's expected
financial metrics for the ratings in fiscal 2008 and beyond.

The rating agency could lower the ratings if declining operating
performance through volatile world market conditions, further
temporary quota restrictions in the European sugar market, or a
lack of continued shareholder support make it unlikely for Tereos
to achieve and maintain adjusted funds from operations to debt of
about 15%.

S&P could raise the ratings if the group's financial metrics
sustainably move above 20%, but this possibility appears remote
for the time being.


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G E R M A N Y
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BEHR GMBH: 2008 First Half Sales Up 5% to EUR1.81 Billion
---------------------------------------------------------
The Behr Group achieved a 5% growth in sales in the first half of
2008 to EUR1.81 billion.  Adjusted to include currency effects,
this increase corresponds to 8%.  The Group companies in Europe,
Braziland Chinamade the largest contributions to this growth.  The
joint ventures with Hella and Plastic Omnium, Behr-Hella
Thermocontrol (ECUs and control heads for vehicle air
conditioning), and HBPO (front-end modules), as well as the spare
parts business, also developed positively.  Behr was again able to
profit from its strong commercial vehicles business.  The
industrial technology sector also recorded an increase in sales.
Due to the weakness of the market in the USA, however, sales from
Behr America decreased by 11% in US dollars and by 22% in euros.

Investments came to EUR84 million, around 23% higher than the
previous year's level.  Areas of investment focus included the
expansion of equipment and facilities at the new plants in the
CzechRepublic and Mexico.  Investments were also made in
Germanyand France in order to prepare for growth through new
products and production startups.  As of June 30, 2008, Behr
employed 19,941 staff, 2.5% more than at the end of 2007.  This
growth was especially evident in the Czech Republic and Mexico.
In Germany, employees numbered 7,377 at the middle of the year (as
compared to 7,316 on Dec. 31, 2007).

"For the second half of 2008, we predict a significant weakening
of the market in Europe, Markus Flik, Behr Group Chairman and CEO
said.  "This, coupled with the intensified market downturn in the
USA and further increases in material costs will place a
significant burden on our profits this year."

Based in Stuttgart, Germany, Behr GmbH & Co. KG --
http://www.behr.de/-- is a systems partner for the international
automobile industry.  A specialist in automotive air conditioning
and engine cooling systems, the Behr Group is one of the world's
leading manufacturers and suppliers of original equipment for
passenger and commercial vehicles.  Group sales in the 2007
business year came to around EUR3.4 billion. Currently, Behr
employs some 20,000 staff at 17 development locations, 28
production sites and 12 joint ventures worldwide.


BEHR GMBH: Moody's Cuts Senior Unsecured Rating to 'Ba2'
--------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Baa3 the
senior unsecured rating of Behr GmbH & Co KG and assigned a Ba2
Corporate Family Rating.  Moody's also downgraded the subordinated
rating for Behr's perpetual subordinated bond to B1 from Ba2
reflecting a LGD 6 loss given default assessment given the deeply
subordinated status of this instrument.  The rating outlook
remains negative.

Falk Frey, Senior Vice President and Moody's lead analyst for Behr
said: "The downgrade was triggered by the company's announcement
of a significant burden on profits expected for the current year
resulting from the intensified market weakening in US and Europe
as well as rising material costs in the second half of the year."

"This development is clearly below Moody's expectations. Moody's
notes that the company has not been able to reverse a multi-year
downward trend in its financial performance and we are cautious
that an acceleration of the weakening environment could result in
a continued worsening of Behr's financial flexibility in 2009",
Frey went on to say.

Downgrades:

Issuer: Behr GmbH & Co.KG

   -- Junior Subordinated Regular Bond/Debenture,
      Downgraded to B1 from Ba2

Assignments:

Issuer: Behr GmbH & Co.KG

   -- Corporate Family Rating, Assigned Ba2

Withdrawals:

Issuer: Behr GmbH & Co.KG

   -- Issuer Rating, Withdrawn, previously rated Baa3

Behr reported a 5% growth in sales in the first half of 2008 to
EUR1.8 billion compared to the same period last year.  Adjusted to
include currency effects, this increase corresponds to 8% driven
by Europe, Brazil and China as the largest contributors to this
growth.  Whereas revenues in North America decreased by 11% in US$
and by 22% in Euro currency.

The Ba2 rating takes into account the risks related to (i) the
limited absolute scale of Behr's operations, (ii) its focus on the
European market which limit economies of scale and which may
expose Behr's operating performance to regional cyclicality, (iii)
customer concentration which exposes Behr to the operating
performance of a limited number of OEMs, (iv) the ability to
offset recent raw material price increases and accelerating OEM
price reduction requests by cost reduction and efficiency
improvement activities.

The Ba2 rating also reflects Behr's (1) solid and sustained
position in the market for thermal management and, in particular,
its market-leader position in the commercial vehicle segment, (2)
its stable customer relations and its long established ties with
major European automotive manufacturers, (3) its strong
technological position and the existence of market-entry barriers
aided by above-average R&D expenditures and (4) joint venture
strategy to penetrate Asian markets and to expand business
activities by increasing content per-vehicle, and to more
efficiently develop the respective aftermarket.

The negative outlook reflects (i) the significant challenges the
company faces to turn around the negative performance in an
environment that is expected to worsen as a consequence of the
negative trend in car and truck production in Behr's key markets;
(ii) the potential need for implementing a significant
restructuring program, negatively affecting profits, cash flows
and debt levels as well as (iii) uncertainty about the depth and
length of the current downcycle and the impact on Behr's ability
and scope to regain financial strength over the short to medium
term with financial metrics more in line with the Ba-rating range.

The outlook could be stabilized should Behr be able to turn around
the negative trend in operating performance thereby improving its
financial profile significantly in 2009 compared to 2008.  Such
improvements would be evidenced by (i) EBITA margin of 1.5% in
2009, trending to above 2.0% thereafter; (ii) interest cover
(EBIT/Interest expense) above 1.5x in 2009 and (iii) RCF/Net Debt
trending to above 15%.  In contrast, failure to achieve these
targets could result further pressure on the rating.

Moody's considers Behr's available liquidity arrangements as
solid, given its sound cash position and available headroom under
its committed credit lines.  These sources should cover maturing
short term debt, working capital as well as investment needs over
the next 12 months.

Moody's notes that the notching of the perpetual subordinated debt
(hybrid) which is currently two notches below the corporate family
rating might be reassessed in the future should the the company's
ability to meet the cash flow to interest expense coverage ratio
tightened further from the current level thereby raising the risk
that it might trigger a mandatory interest deferral for the
instrument.

Moody's last rating action on Behr was a downgrade to Baa3 with a
negative outlook from Baa2 negative outlook on April 9, 2008.

Headquartered in Stuttgart, Germany, Behr GmbH & Co KG is a
leading supplier of thermal management products (e.g., heating and
vehicle air conditioning modules and engine cooling systems) for
the automotive industry as well as for other industrial
applications (e.g., railways, aircraft and construction
machinery).  In 2007, Behr reported sales of EUR3.4 billion.


KOETHEN GMBH: Claims Registration Period Ends October 14
--------------------------------------------------------
Creditors of Koethen GmbH & Co. Quartier KG have until
Oct. 14, 2008, to register their claims with court-appointed
insolvency manager Dr. Nikolaus Schmidt.

Creditors and other interested parties are encouraged to attend
the meeting at 10:25 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Dessau-Rosslau
         Hall 123
         Willy-Lohmann-Str. 33
         Germany

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

The insolvency manager can be reached at:

         Dr. Nikolaus Schmidt
         Magdeburger Strasse 23
         06112 Halle
         Germany
         Tel: 0345/2311111
         Fax: 0345/2311199

The District Court of Dessau-Rosslau opened bankruptcy proceedings
against Koethen GmbH & Co. Quartier KG on
Sept. 12, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Koethen GmbH & Co. Quartier KG
         Attn: Thomas Kloecker, Manager
         Wallstr. 71
         06366 Koethen
         Germany


BMC MANAGEMENT: Claims Registration Period Ends October 14
----------------------------------------------------------
Creditors of BMC Management GmbH have until Oct. 14, 2008, to
register their claims with court-appointed insolvency manager Dirk
Hammes.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Nov. 12, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Duisburg
         Hall C207
         Kardinal-Galen-Strasse 124-132
         47058 Duisburg
         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 Hammes
         Wilhelmshofallee 75
         47800 Krefeld
         Germany

The District Court of Duisburg opened bankruptcy proceedings
against BMC Management GmbH on Aug. 26, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         BMC Management GmbH
         Promenade 61
         46047 Oberhausen
         Germany

         Attn: Natalie Mauvalin, Manager
         Weseler Str. 85a
         47169 Duisburg
         Germany


DIE FUNDGRUBE: Claims Registration Period Ends October 14
---------------------------------------------------------
Creditors of DIE FUNDGRUBE Zimmertueren und Bauelemente GmbH have
until Oct. 14, 2008, to register their claims with court-appointed
insolvency manager Frank M. Welsch.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         Fourth Floor
         Gerichtstrasse 66
         33602 Bielefeld
         Germany

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

The insolvency manager can be reached at:

         Frank M. Welsch
         Barkeystrasse 30
         33330 Guetersloh
         Germany

The District Court of Bielefeld opened bankruptcy proceedings
against DIE FUNDGRUBE Zimmertueren und Bauelemente GmbH on
Aug. 27, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         DIE FUNDGRUBE Zimmertueren und
         Bauelemente GmbH
         Attn: Sabine Huelsmann, Manager
         Bartholomaus Weg 8
         33334 Guetersloh
         Germany


EPOS 24 LOGISTIC: Claims Registration Period Ends October 14
------------------------------------------------------------
Creditors of epos 24 Logistic Deutschland GmbH have until
Oct. 14, 2008, to register their claims with court-appointed
insolvency manager Thorsten Klepper.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Nov. 25, 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 Dortmund
         Hall 3.201
         Gerichtsplatz 22
         44135 Dortmund
         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:

         Thorsten Klepper
         Kleppingstrasse 20
         44135 Dortmund
         Germany

The District Court of Dortmund opened bankruptcy proceedings
against epos 24 Logistic Deutschland GmbH on Sept. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         epos 24 Logistic Deutschland GmbH
         Attn: Udo Nienaber, Manager
         Roemerstr. 18
         59075 Hamm
         Germany


FORD MOTOR: German Unit to Cut Production, Lay Off 204 Workers
--------------------------------------------------------------
The Associated Press reports that Ford Motor Co.'s German unit
said on Tuesday it will cut production and lay off about 204 part-
time workers at its Saarlouis plant.

According to The AP, the plant has about 6,500 workers.  Ford
Motor produces the Focus, C-Max, and Cougar models, at that plant,
the report says, citing Ford Motor spokesperson Bernd Meyer said.

Ford Motor said that the Cologne plant in the northwest of Germany
will continue production without changes, The AP states.

In its UK operations, Ford Motor has introduced a four-day week
work at the Southampton plant, which makes Transits, The Guardian
reports.  About 970 workers at Ford Motor is also implementing
short-time working at its stamping plant at Dagenham, The Guardian
relates.

                    About Ford Motor Co.

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

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

                         *     *     *

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


GARTNERSTRASSE 120 MBH: Claims Registration Period Ends Oct. 14
---------------------------------------------------------------
Creditors of Grundstuecksgesellschaft Gartnerstrasse 120 mbH have
until Oct. 14, 2008, to register their claims with court-appointed
insolvency manager Dr. Gideon Boehm.

Creditors and other interested parties are encouraged to attend
the meeting at 11:30 a.m. on Nov. 25, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Reinbek
         Parkallee 6
         21465 Reinbek
         Germany

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

The insolvency manager can be reached at:

         Dr. Gideon Boehm
         Bachstr. 85 a
         22083 Hamburg
         Germany

The District Court of Reinbek opened bankruptcy proceedings
against Grundstuecksgesellschaft Gartnerstrasse 120 mbH on Sept.
22, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Grundstuecksgesellschaft Gartnerstrasse 120 mbH
         Attn: Karl-Heinz Michels, Manager
         Flerrentwiete 49 b
         22559 Hamburg
         Germany


H.S.W. TRANSPORTE: Claims Registration Period Ends October 14
-------------------------------------------------------------
Creditors of H.S.W. Transporte GmbH have until Oct. 14, 2008, to
register their claims with court-appointed insolvency manager
Wolfgang Ott.

Creditors and other interested parties are encouraged to attend
the meeting at 2:15 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Weilheim
         Meeting Hall E 007
         Waisenhausstr. 5
         Weilheim
         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:

         Wolfgang Ott
         Nymphenburger Str. 139
         80636 Muenchen
         Germany
         Tel: 089/120260
         Fax: 089/12026127

The District Court of Weilheim opened bankruptcy proceedings
against H.S.W. Transporte GmbH on Sept. 2, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         H.S.W. Transporte GmbH
         Blumenstrasse 22
         82407 Wielenbach
         Germany


PAPIERFABRIK SCHEUFELEN: Signs Powerflute's Takeover Proposal
-------------------------------------------------------------
Papierfabrik Scheufelen GmbH & Co. has signed Powerflute Oyj's
letter of intent to takeover the company, according to various
reports.

The deal is scheduled for completion by end of November 2008.
The Thompson Financial, citing Powerflute, says that the
acquisition will be financed from internal resources.

A spokeswoman for Finnish paper mill operator Powerflute said she
was at that time unable to provide more information, but the
agreement is subject to due diligence and to final approval by
Powerflute's board of directors, the Thomson Financial News
relates.

Operations are planned to continue at the Lenningen site with
around 500 employees, EUWID Pulp and Paper reports.

The Lenningen, South Germany-based Papierfabrik Scheufelen GmbH &
Co. employs at least 500 staff and produces a range of different
papers with different finishes.  The company filed for insolvency
in June 2008 and administrators are expected to run the business
until a take over transaction is concluded, Packaging News Company
says.


UNITYMEDIA: S&P Lifts Ratings on Subordinated Unsecured Notes to B
------------------------------------------------------------------
Standard & Poor's Ratings Services has revised its issue and
recovery ratings on German cable TV operator Unitymedia GmbH's
(B+/Positive/--) unsecured debt issues.  The issue and recovery
ratings on the secured facilities were affirmed.

The issue ratings on the EUR215 million, EUR235 million, and
US$151 million subordinated unsecured notes were raised to 'B'
from 'B-' and are now one notch below the 'B+' corporate credit
rating.  The recovery ratings were raised to '5' from '6',
indicating S&P's expectation of modest (10%-30%) recovery for
unsecured creditors in the event of a payment default.

The issue ratings on the EUR100 million senior secured bank loan
facility and EUR1.275 billion senior secured floating-rate notes
(FRN) issued by subsidiaries, Unitymedia Hessen GmbH & Co.  KG and
Unitymedia NRW GmbH, remain 'BB', two notches above the corporate
credit rating on the group.  The recovery rating remains '1',
indicating S&P's expectation of very high (90%-100%) recovery in
the event of a payment default.

"The revision of the recovery ratings for the subordinated
unsecured debt issues mainly reflects our modified approach on
repurchased debt that has not been cancelled," said S&P's credit
analyst Carlo Castelli.  "By Sept. 1, 2008, Unitymedia had bought
back EUR236 million par value FRNs.  We now assume that this debt
is unlikely to be drawn during the path to default, whereas in
our previous analysis we had assumed that, to provide additional
liquidity, the repurchased debt would have been resold to the
market prior to default."

The impact of this revised approach is that S&P now assumes a
hypothetical default in 2011 (previously 2013).  However, a lower
amount of senior secured debt outstanding at default enhances
recovery prospects for subordinated debt.  Therefore, depending on
the approach taken on repurchased debt, the recovery prospects for
subordinated debt could be materially different.


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


GLITNIR BANKI: Moody's Cuts Bank Financial Strength Rating to E
---------------------------------------------------------------
Moody's Investors Service has downgraded the bank financial
strength rating (BFSR) of Glitnir banki hf (Glitnir) to E from D,
its long-term deposit ratings to Caa1 from Baa2 and its senior
unsecured ratings to Caa2 from Baa2.  Consequently, the bank's
Prime-2 short-term rating was downgraded to Not Prime.  In
addition, subordinated and preferred stock ratings were downgraded
to C.  The bank's deposit and debt ratings remain under review for
possible downgrade.

"The rating action is in response to today's announcement that the
Icelandic supervisory authority (FME) has taken control of
Glitnir," says Moody's analyst Kimmo Rama.  Moody's underlines
that although the FME now controls the bank, no financial support
has so far been extended.  The new legislation gives the FME
enhanced powers such as limiting or prohibiting the disposal of
the banks' capital and assets.

In downgrading the BFSR to E from D, Moody's explains that in
light of the rapidly deteriorating market conditions Glitnir's
franchise and its overall creditworthiness have been significantly
impaired since the latest rating action.  The rating agency also
believes that the bank is facing increasing liquidity challenges
and its ability to fund coming debt maturities has weakened.

In terms of notching between Glitnir's deposit and debt ratings,
Moody's notes that in accordance with the new legislation that was
put in place on October 6, 2008, the amount paid out by the
deposit guarantee fund will result in the fund having a priority
of claim in the event of insolvency proceedings.  Therefore,
Moody's has assigned lower ratings to senior unsecured debt, to
reflect potentially higher severity of loss for those obligations.
It should be noted that Moody's deposit ratings do not capture the
deposits covered by deposit guarantee schemes.

The FME is currently investigating potential restructuring of
Glitnir's operations.  Moody's review on Glitnir's debt and
deposit ratings incorporates the high uncertainty of further
governmental support as well as the future viability of the bank's
franchise.

The downgrade of Glitnir's subordinated debt and preferred stock
ratings reflect Moody's view that holders of these instruments are
likely to experience a substantial loss.

On September 30, 2008, Glitnir's ratings were downgraded following
the announcement that the Government of Iceland provides the bank
with a capital injection in response to its liquidity
difficulties.

Ratings downgraded:

   -- Long Term Bank Deposits: to Caa1 from Baa2
   -- Short Term Bank Deposits: to Not-Prime from Prime-1
   -- Bank Financial Strength: to E from D
   -- Senior Unsecured: to Caa2 from Baa2
   -- Subordinate: to C from Ba1
   -- Preferred Stock: to C from B1
   -- Commercial Paper: to Not Prime from Prime-2
   -- Other Short Term: to Not Prime from Prime-2

Headquartered in Reykjavik, Iceland, Glitnir banki hf reported
total assets of ISK3,863 billion (EUR31 billion) at the end of
June 2008.


GLITNIR BANKI: Fitch Affirms Individual Rating at 'F'
-----------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default ratings
of Glitnir Banki hf. and Landsbanki Islands to 'B' from 'BBB-' and
'BBB' respectively, and that of Straumur Burduras Investment Bank
to 'BB-' from 'BB+'.  The ratings of Kaupthing Bank hf. are under
review.

This rating action follows the announcement of legislative
measures providing for broad authority to Icelandic authorities to
intervene in the Icelandic financial system and the statement that
Landsbanki has been placed in receivership, and reflects Fitch's
view that both the ability and propensity of the Icelandic
authorities to support the Icelandic banking system are becoming
increasingly compromised.  The support rating floor for the major
Icelandic banks is now 'B'.

Both Glitnir, following the acquisition by the Icelandic
authorities last month of a 75% stake, and Landsbanki, which was
placed in receivership, are now at their support rating floor.
Glitnir's Individual rating of 'F' is affirmed and Landsbanki's
Individual rating has been downgraded to 'F' from 'C' to reflect
the receivership arrangement.  Fitch notes that under the
receivership arrangement, Landsbanki could be subjected to
'temporary protection from payments of debts and obligations as
they fall due'.  It is not clear that such a moratorium will be
enacted but Fitch would view it as a default.

The Rating Watch Evolving on the ratings of Glitnir and Landsbanki
reflects Fitch's view that uncertainty surrounding the
availability of resources to support the banks could drive the
ratings in either direction.

Straumur's ratings reflect a different risk profile from the three
major Icelandic banks.  The bank has not been involved so far in
negotiations with Icelandic authorities, but Fitch's view is that,
despite low leverage and the relative liquidity of its balance
sheet, some contagion risk is likely to continue to affect the
bank and that support cannot be relied upon in the current
environment given its limited Icelandic business.

The rating actions detailed below of Landsbanki's UK subsidiary
Heritable Bank Ltd are based on Fitch's view that, while support
from the Icelandic authorities is unlikely to extend to overseas
subsidiaries, Heritable's fundamentals, and its requirement to
abide by local prudential requirements, offer some moderately
greater flexibility, although exposure to and/or reliance on the
parent means the risk of contagion is high.

The ratings of the three banks and those of Heritable are:

Glitnir Banki:
  -- Long-term IDR and senior debt: downgraded to 'B' from
     'BBB-'; on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-' on Rating
     Watch Evolving

  -- Individual rating: affirmed at 'F'

  -- Subordinated debt: downgraded to 'CCC+' from 'BB'; on Rating
     Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'B'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Landsbanki Islands:
  -- Long-term IDR and senior debt: downgraded to 'B' from 'BBB';
     on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-'; on Rating
     Watch Evolving

  -- Individual rating: downgraded to 'F' from 'C'

  -- Subordinated debt: downgraded to 'CCC+' from 'BBB-'; on
     Rating Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'BB+'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Heritable Bank Ltd:
  -- Long-term IDR downgraded to 'BB' from 'BBB'; on Rating Watch
     Evolving

  -- Short-term IDR downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: downgraded at '4' from '2' ; on Rating Watch
     Evolving

  -- Individual rating: downgraded to 'D' from 'C'; on Rating
     Watch Evolving

Straumur Burdaras Investment Bank:
  -- Long-term IDR and senior debt downgraded to 'BB-' from 'BB+';
     on Rating Watch Evolving

  -- Short-term IDR affirmed at 'B'; revised to Rating Watch
     Evolving

  -- Support rating: changed to '5' from '3';

  -- Support Rating Floor: revised to 'No Floor'

  -- Individual rating: downgraded to 'D' from 'C/D'; on Rating
     Watch Evolving

  -- Subordinated debt: downgraded to 'B' from 'BB'; on Rating
     Watch Evolving


KAUPTHING BANK: Moody's Lowers BFSR to 'D+'; Still on Review
------------------------------------------------------------
Moody's Investors Service has downgraded the long-term deposit
ratings of Kaupthing Bank hf. to Baa3 from A1, the long-term
senior debt ratings to Ba1 from A1 and the bank's financial
strength rating (BFSR) to D+ (mapping to a Ba1 Baseline Credit
Assessment -- BCA) from C-.  In addition, Moody's downgraded the
bank's subordinated debt to Ba2 from A2 and its preferred stock to
B1 from A3.  The bank's short term rating was downgraded to P-3
from P-1.  All ratings are on review with direction uncertain.

The downgrade of Kaupthing's BFSR reflects its weakened liquidity,
financial position and further franchise impairment following the
recent market turmoil in Iceland.  Most recently, it was announced
that Kaupthing Singer & Friedlander Limited (KSF)(not rated),
Kaupthing's UK based subsidiary, has been put into administration
by the UK FSA.  At end-June 2008, KSF accounted for 20% of
Kaupthing's total assets and 41% of total deposits, evidencing
further liquidity stress imposed on the bank.

Moody's noted that the EUR500 million loan provided to Kaupthing
by Central Bank of Iceland provided earlier this week, and the
announced SEK 5 billion loan to Kaupthing's Swedish subsidiary
provided by the Swedish Central Bank, allow for certain tolerance
in respect to further liquidity stress.  However, Moody's believes
that significant uncertainty remains regarding the bank's future
liquidity position.

During the review, Moody's will closely monitor the bank's success
in restoring its liquidity position.  Moody's acknowledges the
bank's focus on preserving its liquidity position; however, the
potential for rapid franchise impairment and outflow of deposit
funding in this environment remains a significant rating concern
for Moody's.  Moody's notes that, there could be a rapid migration
of ratings from the current level if the bank fails to restore its
liquidity position.  In this respect, an important part of the
review will be to assess the impact of the KSF administration
status on Kaupthing's outstanding funding.

The review also will focus on Kaupthing's future role within the
Icelandic banking system.  It was announced by Kaupthing that it
is in talks with the Icelandic Financial Supervisory Authority
(FME) on its involvement in the reorganization of Glitnir Bank hf.
A consolidation of the bank's position in Iceland, combined with a
sustainable improvement in their liquidity position, could lead an
affirmation of the current rating level.

Moody's has previously factored in very high systemic support on
Kaupthing's ratings.  However, recent events in Iceland have in
Moody's opinion created uncertainty regarding the extent and
nature of government support to Kaupthing.  This uncertainty is
reflected in the direction uncertain of the ratings.

In terms of notching between Kaupthing's deposit and debt ratings,
Moody's notes that in accordance with the new legislation that was
put in place on October 6, 2008, the amount paid out by the
deposit guarantee fund will result in the fund having a priority
of claim in the event insolvency proceedings.  Therefore, Moody's
has assigned lower ratings to senior unsecured debt, to reflect
potentially higher severity of loss for those obligations.  It
should be noted that Moody's deposit ratings do not capture the
deposits covered by deposit guarantee schemes.

As regards the downgrade of Kaupthing's subordinated, jr
subordinated and preferred stock ratings, Moody's says that this
action reflects the higher expected loss as the stand-alone
creditworthiness of the bank has deteriorated, as well as the
greater uncertainty about the extent and timeliness of any support
that could be forthcoming on behalf of these instruments.

Ratings downgraded:

   -- Bank Deposits: to Baa3 from A1
   -- Bank Financial Strength: to D+ from C-
   -- Senior Unsecured: to Ba1 from A1
   -- Subordinate: to Ba2 from A2
   -- Jr Subordinate: to B1 from A3
   -- Preferred Stock: to B1 from A3
   -- Commercial Paper: P-3
   -- Other Short-Term: P-3

The covered bonds issued by Kaupthing are not covered by this
press release as well as the ratings of Kaupthing's 100% owned
subsidiary FIH Erhversbank A/S (FIH)(A1/C+/P-1, negative outlook).

Headquarted in Reykjavik, Iceland, Kaupthing Bank hf reported
asset of ISK6,604 billion (EUR52.8 billion) at the end of June
2008.


LANDSBANKI ISLANDS: Moody's Downgrades BFSR to E from C-
--------------------------------------------------------
Moody's Investors Service has downgraded the bank financial
strength rating (BFSR) of Landsbanki Islands hf to E from C-, its
long-term deposit ratings to Caa1 from A2 and its senior unsecured
ratings to Caa2 from A2.  Consequently, the bank's Prime-1 short-
term rating was downgraded to Not-Prime.  In addition, the bank's
subordinated, junior subordinated and preferred stock ratings were
downgraded to C.  The outlook on all ratings is developing.

"The rating action is in response to the announcement that the
Icelandic supervisory authority (FME) has taken control of
Landsbanki following the concerns about the bank's ability to
continue its operations as a viable stand-alone entity," says
Kimmo Rama, Moody's lead Analyst for Landsbanki.  Moody's
underlines that, although the FME now controls the bank, no
financial support has so far been extended.  The new legislation
gives the FME enhanced powers such as limiting or prohibiting the
disposal of the banks' capital and assets.

In downgrading the BFSR to E from C-, Moody's explains that
Landsbanki's franchise and the overall credit profile have been
significantly impaired in light of the bank's business model which
became challenged due to rapidly weakening market conditions.
Furthermore, the bank has stopped making payouts from its Icesave
deposit scheme, which accounts for a large part of the bank's
deposit base.

Commenting on notching between Landsbanki's deposit and debt
ratings, Moody's notes that in accordance with the new legislation
that was put in place on October 6, 2008, deposit balances in the
Icelandic deposit fund are given priority in the event of
insolvency proceedings.  Therefore, Moody's has assigned lower
ratings to senior unsecured debt, in order to reflect potentially
higher default risk as well as greater severity of loss for those
obligations.  It should be noted that Moody's deposit ratings do
not capture the deposits covered by deposit guarantee schemes.

The FME is currently investigating potential solutions as regards
Landsbanki.  The developing outlook on Landsbanki's ratings
incorporates the high uncertainty in respect of the likelihood and
extent of future governmental support as well as the future
viability of the bank's franchise.

The downgrade of Landsbanki's subordinated debt, junior
subordinated debt and preferred stock ratings reflects Moody's
view that it is highly likely that the holders of these
instruments will experience a substantial loss.

Ratings downgraded:

   -- Long Term Bank Deposits: to Caa1 from A2
   -- Short Term Bank Deposits: to Not-Prime from Prime-1
   -- Bank Financial Strength: to E from C-
   -- Senior Unsecured: to Caa2 from A2
   -- Subordinate: to C from A3
   -- Jr Subordinate: to C from Baa1
   -- Preferred Stock: to C from Baa1
   -- Commercial Paper: to Not-Prime from Prime-1
   -- Other Short Term: to Not-Prime from Prime-1

The previous rating action on Landsbanki was implemented on
September 30, 2008, when Moody's placed all of Landsbanki's
ratings on review for possible downgrade due to a weakening of its
financial fundamentals.

Headquartered in Reykjavik, Iceland, Landsbanki reported total
assets of ISK3,970 billion (EUR32 billion) at the end of June
2008.


LANDSBANKI ISLANDS: Fitch Cuts Individual Rating to 'F'
-------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default ratings
of Glitnir Banki hf. and Landsbanki Islands to 'B' from 'BBB-' and
'BBB' respectively, and that of Straumur Burduras Investment Bank
to 'BB-' from 'BB+'.  The ratings of Kaupthing Bank hf. are under
review.

This rating action follows the announcement of legislative
measures providing for broad authority to Icelandic authorities to
intervene in the Icelandic financial system and the statement that
Landsbanki has been placed in receivership, and reflects Fitch's
view that both the ability and propensity of the Icelandic
authorities to support the Icelandic banking system are becoming
increasingly compromised.  The support rating floor for the major
Icelandic banks is now 'B'.

Both Glitnir, following the acquisition by the Icelandic
authorities last month of a 75% stake, and Landsbanki, which was
placed in receivership, are now at their support rating floor.
Glitnir's Individual rating of 'F' is affirmed and Landsbanki's
Individual rating has been downgraded to 'F' from 'C' to reflect
the receivership arrangement.  Fitch notes that under the
receivership arrangement, Landsbanki could be subjected to
'temporary protection from payments of debts and obligations as
they fall due'.  It is not clear that such a moratorium will be
enacted but Fitch would view it as a default.

The Rating Watch Evolving on the ratings of Glitnir and Landsbanki
reflects Fitch's view that uncertainty surrounding the
availability of resources to support the banks could drive the
ratings in either direction.

Straumur's ratings reflect a different risk profile from the three
major Icelandic banks.  The bank has not been involved so far in
negotiations with Icelandic authorities, but Fitch's view is that,
despite low leverage and the relative liquidity of its balance
sheet, some contagion risk is likely to continue to affect the
bank and that support cannot be relied upon in the current
environment given its limited Icelandic business.

The rating actions detailed below of Landsbanki's UK subsidiary
Heritable Bank Ltd are based on Fitch's view that, while support
from the Icelandic authorities is unlikely to extend to overseas
subsidiaries, Heritable's fundamentals, and its requirement to
abide by local prudential requirements, offer some moderately
greater flexibility, although exposure to and/or reliance on the
parent means the risk of contagion is high.

The ratings of the three banks and those of Heritable are:

Glitnir Banki:
  -- Long-term IDR and senior debt: downgraded to 'B' from
     'BBB-'; on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-' on Rating
     Watch Evolving

  -- Individual rating: affirmed at 'F'

  -- Subordinated debt: downgraded to 'CCC+' from 'BB'; on Rating
     Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'B'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Landsbanki Islands:
  -- Long-term IDR and senior debt: downgraded to 'B' from 'BBB';
     on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-'; on Rating
     Watch Evolving

  -- Individual rating: downgraded to 'F' from 'C'

  -- Subordinated debt: downgraded to 'CCC+' from 'BBB-'; on
     Rating Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'BB+'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Heritable Bank Ltd:
  -- Long-term IDR downgraded to 'BB' from 'BBB'; on Rating Watch
     Evolving

  -- Short-term IDR downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: downgraded at '4' from '2' ; on Rating Watch
     Evolving

  -- Individual rating: downgraded to 'D' from 'C'; on Rating
     Watch Evolving

Straumur Burdaras Investment Bank:
  -- Long-term IDR and senior debt downgraded to 'BB-' from 'BB+';
     on Rating Watch Evolving

  -- Short-term IDR affirmed at 'B'; revised to Rating Watch
     Evolving

  -- Support rating: changed to '5' from '3';

  -- Support Rating Floor: revised to 'No Floor'

  -- Individual rating: downgraded to 'D' from 'C/D'; on Rating
     Watch Evolving

  -- Subordinated debt: downgraded to 'B' from 'BB'; on Rating
     Watch Evolving


STRAUMUR BURDURAS: Fitch Chips Individual Rating to 'D'
-------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default ratings
of Glitnir Banki hf. and Landsbanki Islands to 'B' from 'BBB-' and
'BBB' respectively, and that of Straumur Burduras Investment Bank
to 'BB-' from 'BB+'.  The ratings of Kaupthing Bank hf. are under
review.

This rating action follows the announcement of legislative
measures providing for broad authority to Icelandic authorities to
intervene in the Icelandic financial system and the statement that
Landsbanki has been placed in receivership, and reflects Fitch's
view that both the ability and propensity of the Icelandic
authorities to support the Icelandic banking system are becoming
increasingly compromised.  The support rating floor for the major
Icelandic banks is now 'B'.

Both Glitnir, following the acquisition by the Icelandic
authorities last month of a 75% stake, and Landsbanki, which was
placed in receivership, are now at their support rating floor.
Glitnir's Individual rating of 'F' is affirmed and Landsbanki's
Individual rating has been downgraded to 'F' from 'C' to reflect
the receivership arrangement.  Fitch notes that under the
receivership arrangement, Landsbanki could be subjected to
'temporary protection from payments of debts and obligations as
they fall due'.  It is not clear that such a moratorium will be
enacted but Fitch would view it as a default.

The Rating Watch Evolving on the ratings of Glitnir and Landsbanki
reflects Fitch's view that uncertainty surrounding the
availability of resources to support the banks could drive the
ratings in either direction.

Straumur's ratings reflect a different risk profile from the three
major Icelandic banks.  The bank has not been involved so far in
negotiations with Icelandic authorities, but Fitch's view is that,
despite low leverage and the relative liquidity of its balance
sheet, some contagion risk is likely to continue to affect the
bank and that support cannot be relied upon in the current
environment given its limited Icelandic business.

The rating actions detailed below of Landsbanki's UK subsidiary
Heritable Bank Ltd are based on Fitch's view that, while support
from the Icelandic authorities is unlikely to extend to overseas
subsidiaries, Heritable's fundamentals, and its requirement to
abide by local prudential requirements, offer some moderately
greater flexibility, although exposure to and/or reliance on the
parent means the risk of contagion is high.

The ratings of the three banks and those of Heritable are:

Glitnir Banki:
  -- Long-term IDR and senior debt: downgraded to 'B' from
     'BBB-'; on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-' on Rating
     Watch Evolving

  -- Individual rating: affirmed at 'F'

  -- Subordinated debt: downgraded to 'CCC+' from 'BB'; on Rating
     Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'B'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Landsbanki Islands:
  -- Long-term IDR and senior debt: downgraded to 'B' from 'BBB';
     on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-'; on Rating
     Watch Evolving

  -- Individual rating: downgraded to 'F' from 'C'

  -- Subordinated debt: downgraded to 'CCC+' from 'BBB-'; on
     Rating Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'BB+'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Heritable Bank Ltd:
  -- Long-term IDR downgraded to 'BB' from 'BBB'; on Rating Watch
     Evolving

  -- Short-term IDR downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: downgraded at '4' from '2' ; on Rating Watch
     Evolving

  -- Individual rating: downgraded to 'D' from 'C'; on Rating
     Watch Evolving

Straumur Burdaras Investment Bank:
  -- Long-term IDR and senior debt downgraded to 'BB-' from 'BB+';
     on Rating Watch Evolving

  -- Short-term IDR affirmed at 'B'; revised to Rating Watch
     Evolving

  -- Support rating: changed to '5' from '3';

  -- Support Rating Floor: revised to 'No Floor'

  -- Individual rating: downgraded to 'D' from 'C/D'; on Rating
     Watch Evolving

  -- Subordinated debt: downgraded to 'B' from 'BB'; on Rating
     Watch Evolving


* ICELAND: Takes Emergency Action to Stave Off Looming Bankruptcy
-----------------------------------------------------------------
Various news were released early this week saying that Iceland is
nearing bankruptcy.

Iceland's Althingi parliament accepted a bill Monday, October 6,
on an emergency law enabling the government to stage an extensive
intervention in the country's financial system, Iceland Review
Online says.  That was reportedly the most radical economic
measures taken in the country's history.

The Financial Times reports that Prime Minister Geir Haarde had
warned Monday, as a mounting financial crisis and a 30% dive in
the krona forced the government to take the emergency action.

Iceland, according to the Market Oracle, seeks to rescue all of
its collapsed banks, Kaupthing, Landsbanki, Glitnir, Straumur-
Burdaras, Exista and Spron.  The shares have already been
suspended while politicians prepare to rescue the banks from
potential bankruptcy.

The Associated Press comments that home to just 320,000 people on
a territory the size of Kentucky, Iceland has formidable
international reach because of an outsized banking sector that set
out with Viking confidence to conquer swaths of the British
economy -- from fashion retailers to top soccer teams.  The
strategy gave Icelanders one of the world's highest per capita
incomes.  But now they are watching helplessly as their economy
implodes.

Prime Minister Haarde, at parliamentary meeting, stressed that the
emergency law was necessary to prevent Iceland from falling into
crippling debt or even national insolvency in the coming decades,
Iceland Review Online writes.

According to a new law, under exceptional circumstances, the
minister of finance would be empowered to act on behalf of the
state to allocate capital to establish a new financial company or
assume the operations, in whole or in part, of existing financial
operations, including banks, Iceland Review Online notes.  The
state treasury may provide saving banks with funding of up to 20%
of their reported equity.

According to the law, the Financial Supervisory Authority (FME)
may intervene in the operations of financial companies with
extensive measures in order to minimize damage or the risk of
damage to the financial markets, Iceland Review Online reports.
These measures, according to Iceland Review Online, include:

   -- calling shareholder meetings or meetings for primary
      capital owners regardless of the company's approval or
      stipulations in the Icelandic Companies Act.

   -- assuming the power of shareholders or primary capital
      owners in order to make decisions on necessary actions.

      This includes limiting the board's right of decision,
      suspending the board's powers in part or in whole,
      assuming assets, rights and responsibilities in part or
      in whole of financial companies and dispose of the
      companies, including mergers with other companies.

   -- limiting or prohibiting financial companies from
      disposing of its financial instruments and assets.

   -- compelling financial companies to apply for moratoria
      or resort to debt pooling.

Deposits will be given priority in cases of bankruptcy, with
balances being reimbursed in ISK, Iceland Review Online says.  The
state Housing Financing Fund would then be permitted to assume
mortgage loans originally entered by financial companies.

The legislation, Iceland Review Online reports, follows the
Icelandic Financial Supervisory Authority's announcement that
trading would be suspended in all Icelandic financial companies on
October 6, including Glitnir Bank, Kaupthing Bank, Landsbanki
Bank, Straumur-Burdarás Investment Bank, SPRON and Exista.  The
suspension was primarily attributed to likely disruptions to
normal price formation.

Iceland Review Online, citing Visir.is, reports that Kaupthing
Bank has been granted a loan of EUR50 million (US$68 million) by
the Central Bank of Iceland against collateral in Kaupthing's
Danish bank FIH.

Kaupthing Bank chairman, Sigurdur Einarsson, appeared on news
magazine Kastljos Monday, October 6, stating that the bank's
position was rather good, but that conditions can quickly change
these days, Iceland Review Online notes.  He also commented that
the state taking a 75% stake in Glitnir Bank had been an ill-
advised move.  He verified that Kaupthing received a loan from the
Central Bank against shares in one of its subsidiaries abroad.  He
would not confirm the amount, but said it was large.

                     FSA Limits Short Selling

Due to extraordinary market circumstances, and to restore and
maintain financial stability, the Financial Supervisory Authority
has concluded to define the short selling of shares of certain
Issuers as behavior opposed to accepted market practices.
According to the FSA, a person who behaves in that manner may be
found guilty of market abuse in accordance with Article 117 of the
Act on Securities Transactions No. 108/2007.

Hence, FSA ordered that, as of Tuesday, Oct. 7, 2008, all persons
are prohibited from short selling the shares of Glitnir banki hf.,
Kaupþing banki hf., Landsbanki Islands hf., Straumur-Buroaras
fjarfestingarbanki hf., Spron hf. and Exista hf.  These entities
have been admitted to trading on a regulated market in Iceland.


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


EDUCATION MEDIA: S&P Shifts Outlook to Negative, Affirms B- Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services has revised its rating outlook
on Dublin, Ireland-based Education Media & Publishing Group Ltd.
and its Houghton Mifflin Harcourt Publishers Inc. subsidiary to
negative from stable.  S&P also affirmed all ratings on the
company, including the 'B-' corporate credit rating.  Education
Media (formerly HM Rivergroup PLC), a leading educational
publisher, had consolidated debt and preferred stock of about
US$7.6 billion as of June 30, 2008.

"The outlook revision is based on our concern that strained state
and local budgets may negatively affect textbook educational
funding and the company's operating performance, which would
result in a thinner margin of covenant compliance," said S&P's
credit analyst Hal Diamond.  "Also, we are concerned about the
company's exposure to Lehman Brothers Inc., which provided a
portion of the company's revolving credit agreement."

Liquidity is a key rating issue for Education Media for the
foreseeable future, based on its integration costs and
assumptions, and S&P's expectations of negligible discretionary
cash flow.  The May 2008 US$768 million sale of its Houghton
Mifflin college publishing business modestly lessened the
company's operating diversity and marginally reduced its steep
leverage by only 40 basis points.

The 'B-' rating reflects heightened financial risk resulting from
Education Media's December 2007 US$4 billion acquisition of the
Harcourt educational publishing business, minimally offset by the
company's good business positions in the educational publishing
industry.  The purchase doubled the size of Education Media, and
the combined company is the largest K-12 educational publisher.
The company, as well as other major industry players, faces a
significant risk that some adoptions would be postponed if state
and local budgetary pressures persist.  The company has higher
leverage than its peers, which could put it at a competitive
disadvantage.

Houghton Mifflin and Harcourt have good market positions in key
disciplines, but their combined market shares are likely to
decline slightly over the next few years as the company
consolidates some of its product lines.  S&P is concerned that
challenges may arise in integrating the businesses, including the
loss of revenue from state and local education systems using
texts and materials that the company eventually discontinues.
Education Media will depend on migrating these sales to its
surviving brands, and realizing significant product development
and additional cost savings to improve profitability and reduce
debt.  Any shortfalls in executing this strategy and in realizing
cost savings would exacerbate financial risk from the high price
that the company paid for Harcourt and the group's high debt
leverage.


ELAN CORP: Credit Crisis Delays Sale of Drug Delivery Unit
----------------------------------------------------------
Elan Corp plc's plan to sell its drug delivery unit Elan Drug
Technologies in an auction has been hampered by the credit crisis,
Ben Hirschler and Megan Davies of Reuters report, citing people
familiar with the situation.

Reuters relates Elan and its bankers failed to stick to the mid-
September target to secure second-round bids from private equity
firms as the market turmoil made it difficult for potential buyers
to obtain funding.

Reuters however notes that some discussions are still continuing.

"They are still trying to do something but there may well be
financing issues (for private equity bidders)," an unnamed source
was quoted by Reuters as saying.

Reuters discloses private equity companies thought to be
interested in the business before the full banking crisis hit
include Bain, Candover, Texas Pacific Group and Warburg Pincus.

However, a source indicated the field may have narrowed to just
two.

The EDT sale was being handled by both Goldman Sachs and Lehman
Brothers, Reuters reveals.  The spin-off of EDT, which had been
expected to fetch as much as US$1.3 billion to US$1.4 billion,
will leave Elan focused on its own biotech drugs and provide it
with an opportunity to restructure its debt, Reuters adds.

                          About Elan

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company.  Elan shares trade on the New York, London and Dublin
Stock Exchanges.

                          *    *    *

As reported in the Troubled Company Reporter-Europe on Aug. 5,
2008, Standard & Poor's Ratings Services revised its outlook on
Dublin, Ireland-based Elan Corp. PLC to stable from positive.  At
the same time, S&P affirmed its 'B' corporate credit rating on the
company.


IRALCO: Completes Sale to C&F Tooling; Deal Saves 300 Workers
-------------------------------------------------------------
C&F Tooling now owns the Westmeath car parts manufacturer Iralco
after completion of a sale, reports say.

The sale deal saved over 300 jobs at Iralco, according to Mr. Tom
Rogers of McStay Luby insolvency firm, West Meath Examiner
relates.

As reported in the Troubled Company Reporter-Europe on April 16,
2008, Iralco said it was going into voluntary liquidation after
facing financial difficulties due to increasing costs.

On Aug. 18, 2008, the Troubled Company Reporter-Europe reported
that 90% of the workers voted in favor of the survival plan
hatched by by CF Tooling owner John Flaherty and one-time Iralco
manager Tom Hyland.

Iralco -- http://www.iralco.ie-- designs and develops
decorative and functional trim for all the major automotive
OEM's.  The company's product range covers all high visibility
trim parts from drip rail systems to pillar cappings and
treadplates.

According to the Irish Times, Iralco produces components for some
of Europe's car manufacturers, including Audi, BMW, Ford, Seat,
Volvo and Jaguar.  The firm went into liquidation in April 2008
due to financial difficulties, however, despite having a large
number of orders on its books.


* No Default on S&P's Ratings If Ireland Won't Honor Guarantees
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it would not consider
it a default of the Republic of Iceland (foreign currency
BBB/Negative/A-3; local currency BBB+/Negative/A-2) if the
Depositors' and Investors' Guarantee Fund of Iceland did not honor
its guarantees on deposits outside Iceland.  S&P understands that
the Depositors' and Investors' Guarantee Fund is a private
foundation operating under Icelandic Law, and that its obligations
are not pari passu with Icelandic government debt.


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


ALSHYN-ATYRAU LLP: Creditors Must File Claims by November 15
------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau has
declared LLP Alshyn-Atyrau insolvent.

Creditors have until Nov. 15, 2008, to submit written proofs of
claims to:

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


CONTINENT GROUP: Claims Deadline Slated for November 18
-------------------------------------------------------
LLP Continent Group Telecom has gone into liquidation.  Creditors
have until Nov. 18, 2008, to submit written proofs of claims to:

         LLP Continent Group Telecom
         Bogenbai batyr ave. 3/3
         Saryarka
         Astana
         Kazakhstan


DA-FF-CAPITAL LLP: Claims Filing Period Ends November 18
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP DA-FF-Capital insolvent.

Creditors have until Nov. 18, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 24-06-50


DIGITAL ELECTRONICS: Creditors' Claims Due on November 18
---------------------------------------------------------
LLP Digital Electronics has gone into liquidation.  Creditors have
until Nov. 18, 2008, to submit written proofs of claims to:

         LLP Digital Electronics
         Grinko Str. 3
         Uralsk
         West Kazakhstan
         Kazakhstan


KAZAKH MORTGAGE: Fitch Holds 'BB' Rating on Class C Securities
--------------------------------------------------------------
Fitch Ratings has affirmed Kazakh Mortgage Backed Securities 2007-
I B.V, despite a difficult Kazakh economic environment and, in
particular, a sharply slowing housing market.  A number of factors
have protected the transaction from the deteriorating economic
backdrop, including originator repurchase of most delinquent loans
that have occurred to date at full par value and rapid
amortization, which has led to a substantial increase in credit
enhancement.

Kazakh Mortgage Backed Securities 2007-I B.V.:
  -- Class A (ISIN XS0293196266) - affirmed at 'A-'; Outlook
     Stable

  -- Class B (ISIN XS0293196696) - affirmed at 'BBB' Outlook
     Stable

  -- Class C (ISIN XS0293196779) - affirmed at 'BB'; Outlook
     Stable

In the investor reports for the transaction, loans in arrears by
more than 60 days have remained under 0.1% of the mortgage
balance, due to repurchases of delinquent loans by the originator,
BTA Ipoteka.  The originator has repurchased around 20% of the
initial transaction balance to date.  Fitch was informed that a
large majority of the repurchases were to carry out documentation
amendments the transaction does not allow for.  But BTAI also
repurchased almost all loans in severe delinquencies to facilitate
the work out process and support performance.

To estimate the default rate of the portfolio to date absent of
BTAI's repurchases, Fitch was provided with the amounts overdue on
each loan of the transaction for each month since closing until
their prepayment or repurchase, as well as the delinquency status
of all repurchased loans as of July 31, 2008.  Among all the 1,203
loans repurchased to date, 61 were written-off or were, as of 31
July, in arrears by more than 60 days.

In addition, 105 other loans have been in arrears by more than 60
days in either one of the three months preceding their exiting of
the transaction.  This may reflect instances of private sales or
loan restructuring.  Fitch was informed that only one loan
defaulted in the transaction itself, which was entirely recovered
with foreclosure proceeds.  Based on the 6,777 loans of the
initial closing pool, Fitch's default estimates at of end-June
would therefore amount to around 2.45% of the loans and 3.35% of
the initial transaction balance.

At this stage of portfolio seasoning (around 32 months on
average), this default rate exceeds Fitch's expectations and
implies a corresponding life-time default probability consistent
with its initial assumptions for the 'BB+' scenario.

In spite of the 45% drop in Almaty house price figures reported by
the Statistical Agency of Kazakhstan, prices of properties in the
transaction are deemed to have declined by only around 32% on
average from their peak in August 2007, as around half of the
properties are located outside Kazakhstan's main city.  In its
initial analysis, Fitch did not give credit to any house price
increase after the beginning of 2006; therefore current property
values are close to those initially accounted for by the agency.

For this reason it is unlikely that the agency would have revised
the ratings on the notes had BTAI not repurchased the delinquent
loans.  The loan-to-value of the loans in the closing pool, taking
into account the evolution of the house prices since origination,
was around 45.4% as of the closing date; this ratio went down to
around 34.5% in August 2007, at the peak of the property market,
before rising again to 43.3% by June 2008.  Fitch believes its
current market value decline assumptions (which would imply a
further decline of 35% for a 'BB' scenario) remain appropriate.

As a result of prepayments and repurchases, the transaction has
amortized rapidly, increasing the credit enhancement available to
the senior notes in particular.  The outstanding transaction
amount as of end-August 2008 was around 54% of the closing
balance, and the credit enhancement available to the class A notes
was 31.2%.

Fitch's structured finance team will continue to follow the
evolution of the Kazakh economy and house prices on a regular
basis and monitor the transaction accordingly.


NURBEK KURYLYS: Claims Registration Ends November 15
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Atyrau has
declared LLP Nurbek Kurylys insolvent.

Creditors have until Nov. 15, 2008, to submit written proofs of
claims to:

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


PETRO TECH: Creditors Must File Claims by November 15
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Petro Tech Com insolvent.

Creditors have until Nov. 15, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan
         Tel: 8 (3132) 21-30-32


TARLA KUIUMDJULUK: Claims Deadline Slated for November 18
---------------------------------------------------------
Branch of the Company Tarla Kuiumdjuluk Inshaat Sanayi Ve Tidjaret
Limited Shirketi has gone into liquidation.  Creditors have until
Nov. 18, 2008, to submit written proofs of claims to:

         Branch of the Company Tarla Kuiumdjuluk
         Inshaat Sanayi Ve Tidjaret Limited Shirketi
         Kurmangazy Str. 145-7
         Almaty
         Kazakhstan


TAS LLP: Claims Filing Period Ends November 15
----------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Company Tas insolvent.

Creditors have until Nov. 15, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan
         Tel: 8 (3132) 21-30-32


VAK-AGRO LLP: Creditors' Claims Due on November 18
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Astana has
declared LLP Vak-Agro insolvent.

Creditors have until Nov. 18, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Astana
         Vtoraya Nagornaya Str. 1
         Astana
         Kazakhstan
         Tel: 8 (7172) 23-06-49
              8 702 375 59-09


VITA-XVII LLP: Claims Registration Ends November 18
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Astana has
declared LLP Vita-XVII insolvent.

Creditors have until Nov. 18, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Astana
         Vtoraya Nagornaya Str. 1
         Astana
         Kazakhstan
         Tel: 8 (7172) 23-06-49
              8 702 375 59-09


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


SVET INVEST: Creditors Must File Claims by November 12
------------------------------------------------------
LLC Electricity Invest Svet Invest has shut down.  Creditors have
until Nov. 12, 2008, to submit proofs of claim to:

         LLC Electricity Invest Svet Invest
         Gvardeisky Side Street, 31
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 44-34-61


===================
L U X E M B O U R G
===================


FORTIS BANQUE: Fitch Downgrades Individual Rating to 'F' from 'D'
-----------------------------------------------------------------
Fitch Ratings has placed Fortis Bank's and Fortis Banque
Luxembourg's Long-term Issuer Default Ratings of 'A+' on Rating
Watch Positive, following BNP Paribas's planned acquisition of
controlling stakes.  At the same time, Fortis Bank Nederland
(Holdings) is affirmed at Long-term IDR 'A+' with a Stable
Outlook.

The RWP on Fortis Bank and Fortis Banque Luxembourg reflects the
potential benefits from BNP Paribas, which has today announced
that it plans to acquire a 75% stake in Fortis Bank and a 67%
stake in Fortis Banque Luxembourg.  This acquisition is expected
to take place end-2008 or early 2009 and in the meantime the
Belgian government will take full control of Fortis Bank.

The respective additional capital injections announced this
weekend by the Belgian and Dutch governments into Fortis Bank and
Fortis Bank Nederland (Holdings) have reassured Fitch's view of
the governments' willingness to support these banks and Fortis
Banque Luxembourg.  Therefore, the Support Rating Floors of the
three banks remain at 'A+' and continue to underpin their Long-
term IDRs.  The Support Rating floor is based on Fitch's judgement
of a potential supporter's propensity to support a bank and of its
ability to do so.  The floor communicates Fitch's judgement of
whether a bank would receive support should this become necessary.

However, the capital injections are considered to be explicit
external support by Fitch.  Accordingly the Individual Ratings of
Fortis Bank and Fortis Banque Luxembourg have been downgraded to
'F'. In line with Fitch policy, this 'F' Individual rating is
retrospective in character, reflecting Fitch's opinion that the
banks needed support.  This rating will be in place for a short
period of time only.  Once clarity is achieved on how the support
measures, including BNP Paribas's prospective ownership, will
impact the banks' financial profile, management and business
model, Fitch will re-rate the banks and the Individual ratings
will be upgraded.

Fortis Bank
  -- Long-term IDR 'A+', placed on RWP
  -- Short-term IDR affirmed at 'F1+'
  -- Individual rating downgraded to 'F' from 'D'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'

Fortis Banque Luxembourg
  -- Long-term IDR 'A+', placed on RWP
  -- Short-term IDR affirmed at 'F1+'
  -- Individual rating downgraded to 'F' from 'D'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'

Fortis Bank Nederland (Holdings)
  -- Long-term IDR affirmed at 'A+', Outlook Stable
  -- Short-term IDR affirmed at 'F1+'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'

Fortis Bank Nederland
  -- Long-term IDR affirmed at 'A+', Outlook Stable
  -- Short-term IDR affirmed at 'F1+'
  -- Support rating affirmed at '1',
  -- Support Rating Floor affirmed at 'A+'


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


HEAD N.V.: Moody's Junks CFR to Caa1; Outlook Stable
----------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating (CFR) of Head N.V. to Caa1 from B3, the Probability of
Default Rating (PDR) to Caa2 from B3, and the senior unsecured
rating on the EUR135 million notes issued by HTM Sport- und
Freizeitgerate AG due 2014 to Caa2 (LGD4, 50%) from Caa1.  The
outlook on the ratings is stable.

"Today's rating action reflects Moody's view that the company's
operating performance is likely to remain subdued beyond FYE
December 2008 due to ongoing pressure on consumer spending across
Europe and North America, and structural changes in the winter
sport market," says Paolo Leschiutta, Moody's lead analyst for
Head.  "The company's top line is expected to remain challenged by
the sustained price competition in both the tennis and ski
markets, and volumes are likely to come under modest pressure due
to the general economic downturn and the winter sports market's
steady move towards the rental business," adds Mr. Leschiutta.

Although the shift towards increased rental business is expected
to be gradual and rental operators tend to focus on premium
products and annually renew most equipment, Moody's expects modest
pressure on volumes to continue over time.  In addition, although
the rating agency recognizes management's effort in reducing
operating leverage by increasing production in low-cost countries
and outsourcing activity, a positive impact on profitability is
not expected in the short term.

Current pressure on Head's top line and profitability has resulted
in a further deterioration of its credit metrics despite Moody's
expectation for gradual improvement from the FYE December 2007
level.  At this stage, Moody's would not expect a significant drop
in credit metrics during the current financial year.  However, the
rating agency warns that an interest cover ratio (measured as
EBITA over interest expenses) below 1x and financial leverage
(measured as total debt to EBITDA) above 9x are not sustainable
over the medium term and are not commensurate with a single-B
rating.  In addition, although the company's liquidity needs are
modest, the rating agency is also concerned about the declining
cash balance available to the company.

The difference between the PDR of Caa2 and the CFR of Caa1
reflects Moody's view that, using both an asset coverage and a
distressed EBITDA valuation approaches, potential recovery rate
should remain higher than a 50% average in a stress scenario.
Both methodologies, in virtue of relatively high receivables
amounts, strong brand value (not entirely reflected on the
company's balance sheet) and limited operating and financial
liabilities (modest amount of trade payables and debt levels), or
in light of a 6 times multiple on a distressed EBITDA, would
indicate a loss-given-default estimate at family level below the
50% average.  The lower loss estimate (or higher recovery rate)
resulted in the Caa1 CFR deviating from the Caa2 PDR by one notch.

The stable outlook reflects Moody's view that despite the
expectation that the company's operating performance is likely to
remain subdued during the current year, downward pressure at
current level is relatively limited.  The stable outlook also
incorporates the expectation that the banks will continue to
support the company by renewing existing lines.

Ratings downgraded:

   -- Head's CFR downgraded to Caa1 from B3.

   -- Head's PDR downgraded to Caa2 from B3.

   -- The senior unsecured rating on the EUR135 million
      notes issued by HTM Sport- und Freizeitgeräte AG
      due 2014 downgraded to Caa2 from Caa1

Located in the Netherlands, Head is a leading global manufacturer
and marketer of branded sporting goods serving the skiing, tennis
and diving markets, with strong market positions and a good
reputation for product innovation.  The company reported revenues
of EUR320.9 million and EUR199 million at FYE December 2007 and
HYE June 2008, respectively.


INDOVER BANK: Assets Frozen; Administrators Appointed
-----------------------------------------------------
The District Court of Amsterdam, on Monday, Oct. 6, 2008, declared
the emergency regulations applicable to De Indonesische Overzeese
Bank N.V. (Indover) at Amsterdam and appointed  T. van Hees
(Stibbe lawyers) and H. de Haan as administrators.

Indover, a subsidiary of Bank Indonesia, is mainly active in the
professional and interbanking markets.  Regarding the EUR11
million deposits of private parties, it may be decided to declare
the deposit guarantee scheme applicable to Indover if the bank's
activities no longer prove sustainable.

Citing a spokesman at the Dutch central bank Reuters says the
assets and liabilities of Indover will be frozen as a result of
the court order.


TRONOX INC: Jonathan Gallenn Discloses 10.9% Stake
--------------------------------------------------
Jonathan Gallenn, in his capacity as the investment manager for
Ahab Opportunities L.P. and Ahab Opportunities, Ltd., disclosed in
a Securities and Exchange Commission filing that he may be deemed
to beneficially own 2,500,900 shares of Tronox Incorporated's
common stock, representing 10.9% of the 22,889,431  shares of
Class B common stock, par value US$0.01 per share, outstanding as
of July 31, 2008.

                            About Tronox

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

As reported by the Troubled Company Reporter on August 27, 2008,
Tronox said in a regulatory filing that it is evaluating all
strategic options for the company, including mitigation of
environmental liabilities and capital restructuring.  Tronox
said it has experienced significant losses for the year ended
December 31, 2007, and the six months ended June 30, 2008, and has
generated negative cash flows from operations in the current year.
Tronox said that if it continues to experience negative impacts on
its operations, it may need to seek relief under Chapter 11 of the
United States Bankruptcy Code to allow the company to, among other
things, restructure its capital structure and reorganize its
business, including its environmental legacy issues.

The company has US$1.7 billion in total assets, including US$703.5
million in current assets, as at June 30.  The company has
US$937.8 million in current debts and US$336.9 million in total
noncurrent debts.

Tronox has retained the investment banking firm Rothschild Inc. to
further assist the company in evaluating strategic options for the
business.

On May 22, 2008, the company announced an involuntary work force
reduction program as part of its ongoing efforts to reduce costs.
As a result of the program, the company's U.S. work force was
reduced by 31 employees. An additional 38 positions that were
vacant prior to the work force reduction will not be filled. There
were no costs associated with the elimination of vacant positions.
The program was substantially completed as of June 30, 2008.

On Aug. 28, 2008, the Company was notified by the New York Stock
Exchange that it is not in compliance with the NYSE's continued
listing standard regarding the average closing price of its Class
B Common Stock.  The Company said it has not decided on what
action, if any, it will take with respect to its failure to
satisfy NYSE listing standards.  If the Company fails to cure its
listing deficiencies, the NYSE will commence suspension and
delisting procedures.

The TCR said on Sept. 18 that Tronox has been sued by the U.S.
Government to recover costs related to hazardous substances at or
from the Federal Creosoting Superfund site located in the borough
of Manville, Somerset County, New Jersey.  According to the
complaint, as of June 15, 2008, the government has incurred at
least US$280 million in unreimbursed response costs related to the
cleanup.

Moody's Investors Service has downgraded affiliate Tronox
Worldwide LLC's Corporate Family Rating to Caa3 from Caa2, and the
Probability of Default Rating was lowered to Ca from Caa3.  In
addition, Moody's has downgraded the company's secured revolver
and term loan to B2 from B1 and its unsecured notes to Ca from
Caa3.  Standard & Poor's Ratings Services has lowered its ratings
on Tronox, including its corporate credit rating to 'CCC-' from
'CCC+'.


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


ENER-PRED LLC: Creditors Must File Claims by October 26
-------------------------------------------------------
Creditors of LLC Ener-Pred (TIN 3817000966) have until Oct. 26,
2008, to submit proofs of claims to:

         P. Moiseyev
         Insolvency Manager
         Post User Box 342
         Ust-Kut
         666793 Irkutskaya
         Russia

The Arbitration Court of Irkutskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A19-10537/07-34.

The Court is located at:

         The Arbitration Court of Irkutskaya
         Office 305
         Gagarina Blv. 70
         664025 Irkutsk
         Russia

The Debtor can be reached at:

         LLC Ener-Pred
         Belgradskaya Str.25/140
         Ust-Ilimsk
         666683 Irkutskaya
         Russia


GAZO-APPARAT PLANY: Creditors Must File Claims by October 26
------------------------------------------------------------
Creditors of LLC Gazo-Apparat Plant (TIN 4802008467) have until
Oct. 26, 2008, to submit proofs of claims to:

         A. Sukochev
         Insolvency Manager
         Apt. 28
         Leninskiy Prospect 72
         Voronezh
         Russia

The Arbitration Court of Lipetskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A36-2368/2008.

The Court is located at:

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

The Debtor can be reached at:

         LLC Gazo-Apparat Plant
         G. Uspenskogo Str. 129
         Usman
         Lipetskaya
         Russia


OKTYABRSK-KRAY-GAZ: Creditor Must File Claims by November 26
------------------------------------------------------------
Creditors of OJSC Oktyabrsk-Kray-Gaz (TIN 8614000328) have
until Nov. 26, 2008, to submit proofs of claims to:

         I. Krivopaltseva
         Post User Box 90
         620088 Yekaterinburg
         Russia

The Arbitration Court of Khanty-Mansiysk will convene at 9:00
a.m. on Sept. 7, 2009, to hear bankruptcy proceedings on the
company.  The case is docketed under Case No. A75–640/2008.

The Court is located at:

         The Arbitration Court of Khanty-Mansiysk
         Lenina Str. 54/1
         Khanty-Mansiysk
         Russia

The Debtor can be reached at:

         OJSC Oktyabrsk-Kray-Gaz
         Tsentralnaya Str. 13
         Priobye
         Khanty-Mansiysk
         Russia


REPAIR WORKS: Creditors Must File Claims By October 26
------------------------------------------------------
Creditors of LLC Repair Works have until Oct. 26, 2008, to submit
proofs of claims to:

         A. Volobuyev
         Insolvency Manager
         Office 2
         Idustrialnaya Str.5a
         355000 Stavropol
         Russia

The Arbitration Court of Stavropolskiy commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A63-3838/08-S5-8.

The Court is located at:

         The Arbitration Court of Stavropolskiy
         Mira Str. 4586
         Stavropol
         Russia


RESURS-INVEST CLSC: Creditors Must File Claims By October 26
------------------------------------------------------------
Creditors of CLSC Resurs-Invest have until Oct. 26, 2008, to
submit proofs
of claims to:

         A. Gilmetdinov
         Temporary Insolvency Manager
         Post User Box 3058
         426008 Izhevsk
         Russia

The Arbitration Court of Udmurtia commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A71-10392/2007-G26.

The Court is located at:

         The Arbitration Court of Udmurtia
         Lomonosova Str. 5
         Izhevsk
         426004 Udmurtiya
         Russia

The Debtor can be reached at:

         CLSC Resurs-Invest
         K. Marksa Str. 208
         Izhevsk
         Udmurtia
         Russia


ROSSIYSKY KAPITAL: Moody's Cuts National Scale Rating to B3.ru
--------------------------------------------------------------
Moody's Interfax Rating Agency has downgraded the long-term
National Scale Rating of Rossiysky Kapital Bank (RKB) to B3.ru
from Baa1.ru and placed it on review for possible further
downgrade.  Moscow-based Moody's Interfax is majority-owned by
Moody's Investors Service, a leading global rating agency.

"The downgrade of the RKB's NSR captures the fact that the bank
has defaulted on its obligations to creditors.  The bank's
liquidity shortage was partly caused by recent negative events on
the Russian capital markets, as well as a significant amount of
tax claims on the bank, which have recently materialized," says
Maxim Bogdashkin, a Moscow-based Moody's Analyst and lead analyst
for this issuer.

Moody's has placed RKB's NSR on review for possible further
downgrade, reflecting the possible developments as regards the
bank's ability to raise sufficient market funds and/or find
adequate collateral to pledge under new facilities.  Failure to do
this may merit further a rating downgrade.

The last rating announcement on RKB was on May 4, 2007, following
the implementation of Moody's Joint Default Analysis (JDA) and
Bank Financial Strength Rating methodologies -- in which the
bank's ratings remained unchanged.

Headquartered in Moscow, Russia RKB reported total assets of
RUR22.69 billion (US$924 million) under IFRS at year-end 2007.


SISTEMA-HALS JSC: Fitch Cuts Long-Term Issuer Default Rating to B
-----------------------------------------------------------------
Fitch Ratings has downgraded Russian property developer JSC
Sistema-Hals' Long-term Issuer Default to 'B' from 'B+' and
National Long-term rating to 'BBB(rus)' from 'A-(rus)'.  The
Short-term IDR has been affirmed at 'B'.  Following the downgrade,
the Outlooks on the Long-term IDR and National Long-term rating
are now Stable.

The downgrade reflects deterioration in the company's stand-alone
credit profile, stemming from a marked increase in leverage and
below-average back-up liquidity.  These concerns have been
compounded by the ongoing contraction of funding within the
Russian real estate industry.  The weaker funding environment will
reduce SH's ability to finance new projects and refinance existing
debt, and may lead to a weakening in demand for Russian real
estate, which could impair SH's future operating cash flows and
asset values.

Partially offsetting these concerns is SH's linkage with its 71%
owner Sistema Joint Stock Financial Corp (Sistema, 'BB-'/Stable).
Although Sistema does not guarantee SH's debt, there is a degree
of operational and financial linkage between Sistema and SH,
including the fact that SH's liabilities are now covered by some
of Sistema's cross-default provisions.  Tangible evidence of
support has also been observed in recent months, including arms-
length lending provided to SH from Sistema subsidiaries and the
pledge of assets by Sistema to assist SH with external debt
financing.  Given this linkage, Fitch continues to notch up SH's
ratings to reflect the possibility of Sistema providing financial
support to SH in time of need.

Nevertheless, in Fitch's opinion, SH's linkage with Sistema is not
in itself enough to completely offset the recent deterioration in
SH's stand-alone profile.  Its net debt/EBITDAR rose to 6.6x as of
end-H108 from 4.8x at end-H107, and well above previously budgeted
levels.  The increase in leverage reflects the company's
aggressive debt-funded growth of its project portfolio.  Leverage
of this magnitude is viewed as risky, especially as SH's portfolio
is less than mature, with many of its projects being in the
development stage, and not yet yielding much contracted, steady
rental income (estimated at less than 10% of FY08 EBITDA).

The stand-alone profile is also limited by SH's moderately weak
liquidity position.  Although short-term maturities (approximately
US$260m within the next 12 months as of September 08) are expected
to be covered by operational cash flows, SH has few back-up
facilities (cash, securities and medium-term committed undrawn
facilities of approximately US$90 million as of September 08)
should operational cash flows not materialize as expected.

Fitch also notes SH's liquidity position could be adversely
affected by unforeseen cash calls, such as the potential return of
USD100m of advanced payments associated with the disputed Siemens
tower project, or even the prepayment of certain debt packages if
a steep decline in market conditions were to lead to covenant
problems under existing loan agreements.

Although Fitch currently has a negative view on trading and
financing conditions in the Russian real estate market, the
Outlooks on SH's Long-term IDR and National Long-term rating are
Stable.  This reflects an expectation that SH's ratings can be
maintained at current levels due to potential support from
Sistema.  However, the ratings could deteriorate if either SH's
stand-alone profile or general market conditions deteriorate yet
further without tangible evidence of increased support from
Sistema.


SITRONICS JSC: Appoints Oksana Kovalevskaya as VP for Strategy
---------------------------------------------------------------
JSC Sitronics has appointed Oksana Kovalevskaya as Vice President
for Strategy, with immediate effect.  Ms. Kovalevskaya previously
held the position of Deputy General Director for Strategy and M&A
at Sistema Mass Media.

Sergey Aslanian, President and Chief Executive Officer of
Sitronics, commented: "We are pleased to welcome Oksana
Kovalevskaya to our management team.  In her new capacity, Ms.
Kovalevskaya will be focused on executing on our strategy to
further improve business efficiency levels, expand our operations
into new geographical and vertical markets, and strengthen our
leading position in the industry."

                     About JSC Sitronics

Headquartered in Moscow, Russia, JSC Sitronics (LSE: SITR) --
http://www.sitronics.com/-- provides telecommunications
solutions, IT solutions and microelectronic solutions in the CIS
region with a rapidly growing presence in other EEMEA markets.
Sistema controls the company.

                          *     *     *

JSC Sitronics still carries a 'B-' long-term issuer default rating
from Fitch with stable outlook.


TRUB-MASH-POVOLZHYE: Names A. Postyushkov as Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Saratovskaya appointed A. Postyushkov
as Insolvency Manager for LLC Trub-Mash-Povolzhye.  He can be
reached at:

         A. Postyushkov
         Building 15
         Nizhegorodskaya Str. 32
         109029 Moscow
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A-57-4624/2008-8.

The Court is located at:

         The Arbitration Court of Saratov
         Babushkin Vvoz 1
         Saratov
         Russia

The Debtor can be reached at:

         LLC Trub-Mash-Povolzhye
         Engels
         Saratovskaya
         Russia


URAL-REM-MASH LLC: Creditors Must File Claims By October 26
-----------------------------------------------------------
Creditors of LLC Ural-Rem-Mash (TIN 7415043780) Oct. 26, 2008,
to submit proofs of claims to:

         O. Artemov
         Insolvency Manager
         Post User Box 5
         620033 Yekaterinburg
         Russia

The Arbitration Court of Chelyaninskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A76-9992/08-55-133.

The Court is located at:

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

The Debtor can be reached at:

         LLC Ural-Rem-Mash
         Sevastopolskaya Str. 1a
         Miass
         Russia


* KARELIA: Fitch Holds Low-B Ratings; Changes Outlook to Positive
-----------------------------------------------------------------
Fitch Ratings has changed the Outlooks on Republic of Karelia's
International and National Long-term ratings to Positive from
Stable.  Its International Long- and Short-term ratings are
affirmed at 'BB-' and 'B', respectively.  The National Long-term
rating is affirmed at 'A+(rus)'.

The Positive Outlook reflects Fitch's expectations that continued
prudent fiscal discipline and economic development will support
revenue growth, allowing the region to overcome operating
expenditure pressures and improve budget performance in near
future.  An upgrade could be triggered by a consolidation of its
strong budgetary performance, with operating and current margins
above 10% over the next two years, and continued debt restraint.

The republic maintained its sound budget performance in 2007,
underpinned by high-quality management and continuous economic
growth.  The republic overcame the adverse effect of lower
corporate profits in 2006 and successfully controlled expenditure
pressures stemming from the public employee wage increase for
2007-2008.  Its operating performance improved considerably in
H108.  Fitch expects 2008 operating margin to exceed 10%, up from
8.7% a year earlier.

Karelia's administration has demonstrated sound debt management.
The republic has a moderate debt burden, with long-term issued
debt representing the dominant direct risk.  Its payback ratio is
relatively stable and strong, with a debt/current balance of 2.6
years at end-2007.  The administration has developed a
sophisticated debt management system, which includes control over
the republic's contingent liabilities and a total debt limit of
50% of own revenue (national legislation permits 100%).  Liquidity
is adequate and there is no immediate refinancing risk.

The regional budget is characterized by high expenditure rigidity.
Social expenditure pressures have increased as Karelia has
acquired new responsibilities for financing social allowances and
other social spending.  In absolute terms socially orientated
expenditure tripled over 2004-2007.  The federal government's
initiatives to raise wages in the public sector will further
increase pressure on socially orientated spending.

The regional economy has a strong industrial presence, which
provides a broad tax base for the region.  However, bias towards
the primary industry resulted in high tax concentration; the 10
largest taxpayers contributed about 35% of Karelia's total budget
in 2007.  This exposes its budgetary performance to corporate
profit fluctuation.

The Republic of Karelia is located northwest of the Russian
Federation and accounts for 0.4% of Russia's GDP and around 0.5%
of its population.


* KOMI REPUBLIC: Fitch Lifts Foreign & Local Currency IDRs to BB
----------------------------------------------------------------
Fitch Ratings has upgraded the Republic of Komi's Long-term
foreign and local currency ratings to 'BB' from 'BB-'.  The Short-
term foreign currency rating is affirmed at 'B'. Fitch has also
upgraded Komi's National Long-term rating to 'AA-(rus)' from
'A+(rus)'.  Following the upgrade, the Outlooks for the Long-term
ratings are now Stable.  The action affects RUB2.7bn of bonds
issued by the region.

The upgrade reflects the republic's improved budget performance,
low debt and high self-financing capacity of capex.  However, the
ratings also factor in a high dependence on natural resources
development and the rigidity of the region's operating
expenditure.

The region reported consistently strong budgetary performance in
2004-2007, with its operating balance reaching 15.6% of operating
revenue in 2007.  Sustainable growth of the operating balance is
supported by tax-driven revenue.  Fitch expects this trend to
continue, with the republic's operating margin anticipated to rise
above 15% by end-2008 and over the medium term.

The republic's direct debt stock is composed solely of domestic
bonds with a smooth repayment profile.  The proportion of direct
debt to current revenue declined to 9.9% in 2007 (2006: 13.2%),
while the payback period dropped to eight months of current
balance (2006: one year).  Contingent liabilities, comprising
issued guarantees and public sector entities' debt, are moderate
and properly controlled.

The region's expenditure is inflexible.  Overall rigidity reached
86.7% of total expenditure in 2007 due to provision of financial
support to municipalities, other current transfers and social
spending.  The region's prudent fiscal discipline and proper
control of expenditure so far will help to mitigate the risk of
growing pressure on expenditure.  The economy remains strongly
dependent on the development of oil, gas and coal.  As the local
economy is unlikely to diversify significantly in the medium term,
exposure to commodity price fluctuations is expected to continue.

The Republic of Komi lies in the north-eastern part of European
Russia.  It accounted for 1% of the national gross domestic
product in 2006 and 0.7% of its population.  The mining of prime
resources contributed 33.6% to the region's gross value added in
2006.


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


METROVACESA SA: May Have to Ask Creditors for Waiver
----------------------------------------------------
Metrovacesa SA will have to ask creditors for a waiver if it fails
to reinforce its capital by EUR1.75 billion before December to
refinance part of its debt, Reuters reports citing a source
familiar with the transaction.

"We could issue bonds, we think it is complicated, although over
the year we have seen some windows in the market and some property
companies have issued bonds," a spokeswoman for Metrovacesa said.

Reuters however notes a successful debt issue looks increasingly
difficult given the state of international credit markets.

Metrovacesa, Reuters relates, racked up total debts of almost
EUR7.14 billion up to the end of June.

Reuters discloses the company has until Nov. 27 to pay off a GBP10
million loan from HSBC it used to buy the bank's skyscraper
headquarters in London.  The company is also due to repay a GBP240
million loan on the Walbrook Square project in the City on Oct.
31.

                     Asset Sales Plan

Meanwhile, the company may not be able to achieve its goal of
raising about EUR2 billion (US$2.7 billion) from assets sales by
next July, according to Bloomberg News.

Citing a person privy to the matter, Bloomberg reveals the seizure
of credit markets around the world has made it harder for the
company to find buyers for its assets with only two shopping malls
and other real estate sold so far this year for about EUR600
million.

Bloomberg adds the company has been having difficulty generating
income to pay off the money it owes banks including Royal Bank of
Scotland Group Plc, after the Spain's decade-long property boom
ended last year.

                       About Metrovacesa SA

Headquartered in Madrid, Spain, Metrovacesa SA --
http://www.metrovacesa.es/-- is the biggest Spanish property
company and the fifth biggest in Europe with an asset portfolio
valued at EUR12,843 million.  Its business is mainly focused on
renting, promoting, trading and managing office buildings,
shopping centers and hotels.  It has assets in Spain, Germany, the
United Kingdom and France.


* S&P Reports Decline of Spanish RMBS Performance in 2Q 2008
------------------------------------------------------------
The performance of some of the Spanish RMBS transactions in
Standard & Poor's Ratings Services' index worsened in the second
quarter against a backdrop of rising interest rates on floating-
rate mortgages and a weakening economy, both of which are putting
more pressure on borrowers.

S&P's latest index report for that sector highlights deteriorating
collateral performance and an increase of 51 bps to 1.61% in the
second quarter in severe delinquencies.  Defaults, however, remain
minimal.

The rating agency's delinquency rate indices show that the
increasing trend in arrears in the Spanish RMBS market has
continued, at all levels.  The overall Spanish RMBS delinquency
index reached 4.16% in the second quarter 2008.

Although S&P observed increases in arrears across transactions
included in the index in the second quarter, some originators have
clearly experienced a greater increase than others.

While delinquency rates continued to rise, the prepayment rate
decreased for the sixth consecutive quarter by 49 bps to 9.01% in
the second quarter.  The decreases in this metric were sharper in
transactions originated by Barclays, Bancaja, and Caja Madrid.
The drop in prepayment rates is largely due to more conservative
origination conditions in the Spanish market.


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


AIP INVEST: Creditors Must File Proofs of Claim by Oct. 25
----------------------------------------------------------
Creditors owed money by JSC AIP Investment are requested to file
their proofs of claim by Oct. 25, 2008, to:

         JSC KENDRIS
         Steinengraben 5
         4051 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 8, 2008.


ALTERNATIVE ENERGY: Deadline to File Proofs of Claim Set Oct. 25
----------------------------------------------------------------
Creditors owed money by LLC Alternative Energy Finance are
requested to file their proofs of claim by Oct. 25, 2008, to:

         Harald Lusser
         Trust Company Christen und Zobrist Treuhand
         Achereggstrasse 10
         6362 Stansstad
         Switzerland

The company is currently undergoing liquidation in Stansstad.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 1, 2008.


BECKER & PARTNER: Creditors Have Until Oct. 25 to File Claims
-------------------------------------------------------------
Creditors owed money by JSC Dr. Becker & Partner are requested to
file their proofs of claim by Oct. 25, 2008, to:

         Dr. Jurg Greuter
         Steinenschanze 6
         4051 Basel
         Switzerland

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


CERFMONT JSC: Proofs of Claim Filing Deadline is Oct. 23
--------------------------------------------------------
Creditors owed money by JSC Cerfmont are requested to file their
proofs of claim by Oct. 23, 2008, to:

         Stephan Neidhardt
         Seefeldstrasse 123
         Postfach 1236
         8034 Zurich
         Switzerland

The company is currently undergoing liquidation in

         Trust Company JSC Tribeg Treuhand
         Baarerstrasse 73
         6302 Zug
         Switzerland

The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 13, 2008.


DURAC HANDEL: Creditors' Proofs of Claim Due by Oct. 25
-------------------------------------------------------
Creditors owed money by JSC Durac Handel are requested to file
their proofs of claim by Oct. 25, 2008, to:

         Micafilstrasse 14
         8048 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 4, 2008.


EUROSTROKE AGENCY: Oct. 25 Set as Deadline to File Claims
---------------------------------------------------------
Creditors owed money by JSC Eurostroke Agency are requested to
file their proofs of claim by Oct. 25, 2008, to:

         Dr. Richard Muller
         Artherstrasse 3
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 8, 2008.


GENERAL MOTORS: Loses Third of Market Value at Thursday's Trading
-----------------------------------------------------------------
Bernard Simon of The Financial Times reports that General Motors
lost almost a third of its market value on Thursday, October 9,
amid concerns about its ability to continue funding its operations
in the face of the credit crunch and weakening sales.

GM shares closed at US$4.76, their lowest level since the early
1950s, FT notes.  Share price reached US$40 in 2007.

Meanwhile, FT relates that Standard & Poor's placed GM's credit
rating, already deep in junk territory, on review on Thursday for
a further downgrade.  S&P analyst Bob Schulz said that while GM
had adequate liquidity for at least the rest of this year, "the
accelerating deterioration in industry fundamentals will be a
serious challenge to liquidity during 2009".

                Opel Brand to Cut Europe Production

As reported by the Troubled Company Reporter on Oct. 9, 2008,
citing Dow Jones Newswires, General Motors' Opel brand will cut
production in Europe by 40,000 cars by year-end due to declining
demand.  Dow Jones, according to TCR-Europe, related that an Opel
spokesperson said that the company will lessen production at its
German plants in Bochum and Eisenach to not build up inventory,
which would hurt prices for new cars.

As cited by the TCR-Europe, Business.techwhack.com reported that
GM already shut down the Bochum factory, which would remain down
until October 13.  GM said that production at their plant in
Eisenach would stop from October 13 for three weeks.

The spokesperson, according to Dow Jones, said that GM Europe is
also discussing about reducing production at its U.K. and Spain
plants.  The Opel plant in Gliwice, Poland, will stop production
for 20 days, reducing production by 15,000 cars at the Gliwice
plant, Przemyslaw Byszewski told TVN CNBC television.  Dow Jones
quoted Mr. Byszewski as saying, "Our daily output has recently
averaged 700 units a day and we're talking about a 20-day
shutdown."

                       About General Motors

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

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

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


RITMIC RECORDS: Creditors Must File Proofs of Claim by Oct. 25
--------------------------------------------------------------
Creditors owed money by LLC Ritmic Records are requested to file
their proofs of claim by Oct. 25, 2008, to:

         Marc Faeh
         Landenbergstrasse 26
         8037 Zurich
         Switzerland

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


UBS AG: Former Executive Settles Auction-Rate Related Case
----------------------------------------------------------
David Aufhauser, one of seven UBS AG executives alleged to have
sold personal holdings of auction-rate securities with early,
inside knowledge of problems in the marketplace, has settled with
New York Attorney General Andrew Cuomo on allegations of insider
trading in the auction-rate securities market, The Wall Street
Journal reports.

According to WSJ, Mr. Aufhauser had agreed to:

   -- forfeit his entire 2008 incentive compensation
      (US$6 million) to New York state as part of the
      settlement;

   -- pay a US$500,000 fine; and

   -- accept a two-year ban on practicing law in New York,
      working in the securities industry, or serving
      as an officer or director of a public company.
      He however is free to practice law in any other state.

Mr. Aufhauser, a onetime Treasury Department official and former
general counsel for UBS AG's investment bank, is the only top
executive to settle a personal case, but he neither admitted nor
denied wrongdoing in the matter, WSJ relates.

Auction rate securities are preferred equity securities that pay
dividends that are reset by an auction typically held every seven
or 28 days.  These auctions have consistently been failing since
February 2008.  Consequently, many holders desiring to sell these
securities, including UBS clients, have been unable to do so.

                          Cuomo Lawsuit

As reported in the Troubled Company Reporter-Europe on July 30,
2008, Mr. Cuomo sued UBS AG's U.S. units -- UBS Securities LLC and
UBS Financial Services Inc. -- for falsely selling and marketing
auction rate securities as safe, highly liquid, and cash-
equivalent securities.  According to Mr. Cuomo, UBS customers held
more than US$25 billion in illiquid, long-term paper as a result
of UBS's fraudulent misrepresentations and illegal conduct.

Mr. Cuomo's investigation into UBS also discovered that as the
securities market started to collapse, the bank's top executives
quickly sold-off US$21 million in personal holdings of auction
rate securities, but continued to market the securities to its
consumers.  Internal UBS e-mails subpoenaed by Cuomo detail top
executives' efforts to sell-off personal holdings of auction rate
securities.

The case is being handled by Assistant Attorneys General Pamela
Lynam Mahon, Ethan Zlotchew, and Christopher Mulvihill, as well as
Economist for the Division of Economic Justice Kitty Kay Chan,
under the supervision of Investor Protection Bureau Chief David A.
Markowitz and Executive Deputy Attorney General for Economic
Justice Eric Corngold.

UBS responded it will "vigorously defend" itself against the
allegations in the suit, and "categorically rejects any claim that
the firm engaged in a widespread campaign" to shift auction-rate
debt off its books and into client accounts.

                         Settlement Deal

A TCR-Europe report on Aug. 12, 2008, said UBS signed a
settlement, in principle, with the New York Attorney General, the
Massachusetts Securities Division, the U.S. Securities and
Exchange Commission and other state regulatory agencies
represented by North American Securities Administrators
Association to restore liquidity to all remaining clients'
holdings of auction rate securities.

Under the agreement in principle, UBS committed to purchase a
total of US$8.3 billion of ARS, at par, from most private clients
during a two-year time period beginning January 1, 2009.  Private
clients and charities holding less than US$1 million in household
assets at UBS will be able to avail themselves of this
relief beginning Oct. 31, 2008.

In addition, UBS also committed to provide liquidity solutions to
institutional investors and will agree from June 2010 to purchase
all or any of the remaining US$10.3 billion, at par, from its
institutional clients.

This agreement is separate from the firm's intention to repurchase
US$3.5 billion of tax-exempt Auction Preferred Stock (stated in
its July 15, 2008 press statement).

                          About UBS AG

Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/--
is a global provider of financial services for wealthy clients.
UBS's financial businesses are organized on a worldwide basis
into three Business Groups and the Corporate Center.  Global
Wealth Management & Business Banking consists of three segments:
Wealth Management International & Switzerland, Wealth Management
US and Business Banking Switzerland.  The Business Groups
Investment Bank and Global Asset Management constitute one
segment each.  The Industrial Holdings segment holds all
industrial operations controlled by the Group.  Global Asset
Management provides investment products and services to
institutional investors and wholesale intermediaries around the
globe.  The Investment Bank operates globally as a client-driven
investment banking and securities firm.  The Industrial Holdings
segment comprises the non-financial businesses of UBS, including
the private equity business, which primarily invests UBS and
third-party funds in unlisted companies.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on July 8,
2008, Moody's Investors Service downgraded to B- from B the
financial strength rating (BFSR) of UBS AG.  The rating outlook is
stable.

For second quarter of 2008, UBS reported a Group net loss
attributable to shareholders of CHF358 million.

As reported in the Troubled Company Reporter-Europe on Oct. 6,
2008, UBS said it will reposition its Investment Bank following a
detailed review of the strategy by the Chairman and CEO of the
Investment Bank, Jerker Johansson, members of the Group
Executive Committee and the UBS Board of Directors.  According to
UBS, the Investment Bank will re-prioritize its business portfolio
to preserve its core strengths and client franchises across
Equities, IBD and FICC, while downsizing or exiting certain
business activities.  The Investment Bank will reduce net
headcount by an additional 2,000, bringing staffing levels to
approximately 17,000 by year-end, a reduction of around 6,000
since the peak in third quarter 2007.  Reductions will be
predominantly targeted to businesses being exited or downsized in
order to protect and sustain core client franchises.


VON ROLL: Deadline to File Proofs of Claim Set Oct. 25
------------------------------------------------------
Creditors owed money by JSC Von Roll Stahlgiesserei are requested
to file their proofs of claim by Oct. 25, 2008, to:

         JSC Von Roll Management
         Steinacherstrasse 101
         8804 Au/Wdenswil
         Switzerland

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


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


VESTEL ELEKTRONIK: Moody's Cuts Ratings on US$255MM Notes to B3
---------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of Vestel
Elektronik Sanayi ve Ticaret A.S. to B3 from B2.  The outlook
remains negative.

The following ratings were affected:

   -- B3 Corporate Family Rating and Probability of
      Default Rating

   -- B3 rating on the US$225 million 8.75% Guaranteed
      Notes due 2012

This rating action reflects the accelerating deterioration in the
group's operating environment together with Moody's concerns
regarding the limited visibility on the outlook for the year 2009,
against the challenging macroeconomic backdrop in Vestel's
markets.

Moody's noted that the sharp decline in LCD TV prices in recent
months (prices for 32" and 42" LCD TVs have fallen by high-teens
percent in the past three months) due to a combination of high
competition and efforts to boost demand will take a toll on
Vestel's LCD TV revenues in 2008.  Although panel prices in the
sector have also declined as a result of over-supply, these
represent roughly half of the cost base and, therefore, the
overall impact of end-product price weakness on profitability is
likely to be negative.

In the white goods segment, Vestel reported a 3% increase in
exports in H1 2008 in terms of units sold.  However, in light of
the unsupportive macroeconomic outlook, Moody's anticipates that
demand for white goods in Europe will be sluggish in H2 2008,
which may ultimately put pressure on the profitability of this
segment. The domestic market both for TVs and white goods is
likely to remain challenging in the near term.  As regards digital
products, the sustained operational underperformance should pave
the way for scaling down in this segment going forward. In
addition, the number of units sold in old tech CRT TVs continues
to rapidly decline given the market saturation.

From a financial risk point of view, although the company's cash
position has strengthened over the past three quarters due to
favorable working capital management, Moody's expects its cash
level -- which stood at US$476 million as of June 2008 -- to
decline in Q3 2008 together with soaring stocks ahead of the
traditionally stronger TV sales period in Q4.  Nevertheless, the
remaining cash balance should broadly enable the company to cover
its short-term debt maturities (excluding letters of credit) in
the next nine months to June 2009.  However, Moody's considers
Vestel's liquidity profile to be vulnerable based upon its
reliance, to a significant extend, on funding provided by letters
of credit.  To the extend that the availability of these credit
lines were to decline in relation to an accelerating deterioration
in the group's operating environment, any demand for faster
payment to suppliers could hurt Vestel's cash flows.  The
potential risks associated with the company's lack of adequate
committed back-up facility in place contribute to Moody's
liquidity concerns.

More positively, Moody's notes that the depreciation of the
Turkish lira against the euro and the US dollar should have a
positive impact on Vestel's price competitiveness and EBITDA
margins.  However, considering the company's short foreign
exchange position, net foreign exchange losses in a period of
sharp depreciation of the local currency are likely to continue to
have a negative impact on its bottom-line result.

The negative outlook reflects: (i) the sustained competitive
pressure and the challenging operating environment in key segments
against the backdrop of a deteriorating macroeconomic environment;
and (ii) Moody's view that the headrooms under the covenants
(which stood around 9% under the fixed charge coverage ratio and
15% under the consolidated indebtedness to EBITDA ratio as of June
2008) are likely to remain tight at year-end 2008 while being
vulnerable to increasing borrowings costs in the financial
markets.

Moody's previous rating action on Vestel was in January 2008, when
the ratings were downgraded to B2 from B1.

Headquartered in Istanbul, Turkey, Vestel is a leading
manufacturer of consumer electronic products, including
televisions, digital products and white goods.  In the six months
to June 2008, the company reported US$1.792 billion in revenues
and US$162 million in EBITDA (excluding net foreign exchange
losses).


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


COMMUNITY-PROM LLC: Creditors Must File Claims by October 12
------------------------------------------------------------
Creditors of LLC Community-Prom (code EDRPOU 33432212) have until
Oct. 12, 2008, to submit proofs of claim to:

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

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 1, 2008.
The case is docketed as 12/68b.

The Debtor can be reached at:

         LLC Community-Prom
         Lomonosov Str. 73
         Lugansk
         Ukraine


DIAZHIO-HOLDING LLC: Creditors Must File Claims by October 12
-------------------------------------------------------------
Creditors of LLC Diazhio-Holding (code EDRPOU 33594545) have until
Oct. 12, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 6, 2008.
The case is docketed as 44/48-b.

The Debtor can be reached at:

         LLC Diazhio-Holding
         Yalta Str. 5B
         02099 Kiev
         Ukraine


KONOTOP ELECTROMECHANICAL: Creditors Must File Claims by Oct. 15
----------------------------------------------------------------
Creditors of OJSC Konotop Electromechanical Plant (code EDRPOU
31716652) have until Oct. 15, 2008, to submit proofs of claim to:

         Krivenko Boris
         Liquidator/Insolvency Manager
         Of. 408
         Independency Square 1
         40030 Sumy
         Ukraine
         Tel/fax: 8(0542)619-837

The Economic Court of Sumy commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 18, 2008.
The case is docketed as 12/106-05.

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

The Debtor can be reached at:

         OJSC Konotop Electromechanical Plant
         Krasnozavodskaya Str. 5
         Konotop
         41600 Sumy
         Ukraine


LVOV AGRICULTURAL: Creditors Must File Claims by October 15
-----------------------------------------------------------
Creditors of National Joint Stock Company Ukrainian Agricultural
Leasing Subsidiary Company Lvov Agricultural Machine-Technological
Station (code EDRPOU 32562177) have until Oct. 15, 2008, to submit
proofs of claim to:

         Duplika Pavel
         Liquidator
         Kotliarevsky Str. 55
         Drogobych
         82100 Lvov
         Ukraine
         Tel: 8-067-314-42-14

The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on July 10, 2008.
The case is docketed as 4/112.

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

The Debtor can be reached at:

         National Joint Stock Company Ukrainian Agricultural
         Leasing Subsidiary Company Lvov Agricultural Machine-
         Technological Station
         Sechevykh Streltsov Str. 7
         Lopatin
         Radekhovsky District
         Lvov
         Ukraine


MERTOLDI LLC: Creditors Must File Claims by October 15
------------------------------------------------------
Creditors of LLC Company Mertoldi (code EDRPOU 33494962) have
until Oct. 15, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 14, 2008.
The case is docketed as 24/257-b.

The Debtor can be reached at:

         LLC Company Mertoldi
         Telman Str. 5
         03150 Kiev
         Ukraine


METINVEST BV: Fitch Assigns 'BB-' LT Foreign & Local Currency IDRs
------------------------------------------------------------------
Fitch Ratings has assigned Ukraine-based Metinvest B.V.
(Metinvest) Long-term foreign and local currency Issuer Default
ratings of 'BB-' and a Short-term foreign currency IDR of 'B'.
The Outlook on the Long-term foreign currency IDR is Negative,
while that on the Long-term local currency IDR is Stable.  Fitch
has also assigned the company a National Long-term 'AA(ukr)'
rating with Stable Outlook and a National Short-term 'F1+(ukr)'
rating.

The ratings are driven by Metinvest's scale as the sixth-largest
global iron ore producer and the fourth-largest CIS crude steel
producer in fiscal year 2007.  They also reflect its proximity to
raw material sources and Black Sea ports, its self-sufficiency in
iron ore, its geographically balanced sales profile and its low-
cost core production assets.  Metinvest's satisfactory short-term
liquidity position and strong cash flow generation resulted in
cash flow from operations of US$1,125 million at fiscal year 2007,
up from US$472 million at fiscal year 2006.

Constraints on the ratings include the company's historically
lower expenditure on plant modernization, which over the past five
years has, on average, been 30%-40% lower than at key CIS peers
such as Severstal ('BB'/'B'/Stable) and NLMK ('BB+'/'B'/Stable).
As a result, Metinvest's production costs of basic products are
higher than those of its CIS peers.  Fitch also notes the group is
only 32% self-sufficient in coking coal, exposing it to price
volatility.  Despite several positive developments in corporate
governance, Metinvest's existing corporate governance practices
and its disclosure framework are still below international
standards.

At the end of first half of 2008, Metinvest had total debt of
US$3.9 billion, against US$0.6 billion in cash and US$0.6 billion
in undrawn credit lines.  Its fiscal year 2007 debt/EBITDA stood
at 1.3x, below the company's target of less than 3x.  Fitch
expects Metinvest to maintain a conservative gross leverage over
the cycle of less than 1x.

The Negative Outlook on the Long-term foreign currency IDR
reflects the potential downward revision of Ukraine's Country
Ceiling (currently 'BB-'), following the change in Ukraine's
Outlook to Negative from Stable on Sept. 25, 2008.  The Stable
Outlooks on the Long-term local currency IDR and National Long-
term rating reflect that, despite the downward trend of world
steel prices, they are likely to remain higher than historical
average prices over the next 12-18 months, allowing the company to
continue to generate solid cash flow from operations.


STOZHARY CJSC: Creditors Must File Claims by October 15
-------------------------------------------------------
Creditors of CJSC Stozhary (code EDRPOU 24587234) have until
Oct. 15, 2008, to submit proofs of claim to:

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

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 18, 2008.
The case is docketed as 44/178-b.

The Debtor can be reached at:

         CJSC Stozhary
         Smolenskaya Str. 31/33
         03057 Kiev
         Ukraine


SV-RESOURCE LLC: Creditors Must File Claims by October 15
---------------------------------------------------------
Creditors of LLC SV-Resource (code EDRPOU 31278609) have until
Oct. 15, 2008, to submit proofs of claim to:

         A. Dudarenko
         Liquidator/Insolvency Manager
         Ap. 77
         Rudnev Str. 49/20
         Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 14, 2008.
The case is docketed as 24/269-b.

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

The Debtor can be reached at:

         LLC SV-Resource
         Oranzhereynaya Str. 3
         04112 Kiev
         Ukraine


TSENTROBUILDING LLC: Creditors Must File Claims by October 12
-------------------------------------------------------------
Creditors of LLC Trading-Production Group Tsentrobuilding (code
EDRPOU 31145436) have until Oct. 12, 2008, to submit proofs of
claim to:

         Kobelnik Oleg
         Liquidator
         Dovbush Str. 21
         Pustomity
         81100 Lvov
         Ukraine

The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 4, 2008.
The case is docketed as 8/103.

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

The Debtor can be reached at:

         LLC Trading-Production Group Tsentrobuilding
         Zelenaya Str. 147
         79035 Lvov
         Ukraine


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


20:20 DEVELOPMENTS: Appoints Joint Administrators from KPMG
-----------------------------------------------------------
Richard Fleming and Mark Firmin from KPMG's Restructuring practice
in Leeds have been appointed as Joint Administrators to 20:20
Developments (Management) Ltd and Skinner Lane (Commercial) Ltd on
Wednesday, Oct. 8, 2008.

Both companies are subsidiaries of SRM Holdings Ltd, the Leeds-
based residential and commercial property group which went into
administration on Tuesday, Oct. 7.  Together, the two companies
hold a development site of approximately 272 residential flats in
Skinner Lane, Leeds.

Richard Fleming, joint administrator and head of KPMG's
Restructuring practice in the North, commented, "We've been
appointed as administrators to one specific development, which is
the major asset within the SRM Group, and will be working with
management over the coming days in order to assess the situation."

                    About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


AMERICAN INTERNATIONAL: Gov't to Lend Firm Additional US$37.8BB
---------------------------------------------------------------
Liam Pleven, Sudeep Reddy, and Carrick Mollenkamp at The Wall
Street Journal report that the federal government said on
Wednesday it would lend US$37.8 billion to American International
Group Inc.

WSJ relates that with the additional loan, the government raised
by almost 50% the amount it could lend to AIG as concerns that the
firm could once again run short on cash appeared to increase.

AIG's domestic life insurance subsidiaries have entered into a
securities lending agreement with the Federal Reserve Bank of New
York.  Under the Securities Lending Agreement, the Federal Reserve
will borrow, on an overnight basis, investment grade fixed income
securities from the AIG subsidiaries in return for cash
collateral.  As expected, drawdowns under the existing Federal
Reserve credit facility have been used, in part, to settle
securities lending transactions.  The New York Fed is prepared to
borrow securities to extend AIG's currently outstanding lending
obligations where those obligations are not rolled over or
replaced by transactions with other private market participants.
These borrowings by the Federal Reserve will allow AIG to
replenish liquidity to the securities lending program on an as-
needed basis, while providing possession and control of these
third-party securities to the Federal Reserve.  As of Oct. 6,
2008, about US$37.2 billion of securities were subject to loans
under AIG's securities lending program.

WSJ relates that AIG incurred losses stemming from complex credit
derivatives that helped lead to the firm's downfall and faces
extensive losses from a program that involves securities used to
back up life-insurance policies in its regulated subsidiaries.
WSJ states that under the program, AIG lent out securities to
third parties and received collateral in return. AIG, according to
the report, had invested some of that collateral in other assets
that devaluated.  The reports states that AIG was sometimes unable
to lend the securities back for fresh collateral.

WSJ reports that it was revealed during a congressional hearing on
Tuesday, where two former AIG CEOs were questioned on the firm's
downfall, that the company spent over US$440,000 at a California
resort for a gathering of insurance agents for one of its life-
insurance subsidiaries, after the firm secured the US$85 billion
loan from the Federal Reserve.

AIG's Chairperson and CEO Edward M. Liddy sent a letter to the
U.S. Treasury Secretary Henry M. Paulson to clarify the
circumstances of the business event held by an AIG subsidiary
which was discussed during the hearing by the House Committee on
Oversight and Government Reform.  The event, said Mr. Liddy, was
mischaracterized as an "Executive Retreat."  It was held by one of
AIG's insurance subsidiaries for independent life insurance
agents, not for AIG employees.  These agents were top business
producers for the company, and of the more than 100 attendees,
only 10 were employees of the AIG subsidiary who were there to
represent their company.  No AIG executives from headquarters
attended.  The meeting was planned months before the Federal
Reserve's loan to AIG.

Mr. Liddy assured Secretary Paulson that AIG now faces very
different challenges, and "that we owe our employees and the
American public new standards and approaches."  Mr. Liddy assured
Secretary of the Treasury Paulson that AIG is "reevaluating the
costs of all aspects of our operations in light of the new
circumstances in which we are all operating."

Mr. Liddy concluded, that "AIG is focused on doing what is
necessary to address our capital structure, repay the Fed credit
facility and emerge as a healthy global insurer.  In the meantime,
our insurance businesses continue to operate normally and satisfy
the needs of our policy holders."

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.


BRADFORD & BINGLEY: Banco Santander Says Acquisition May Add Value
------------------------------------------------------------------
Spain's Banco Santander SA, which bought Bradford & Bingley Plc's
deposits and branch network on Sept. 29, 2008, says it is "well-
positioned" in the new environment that has arisen from the global
financial crisis, Reuters quotes CFO Jose Antonio Alvarez as
saying.

Santander, according to Reuters, made the acquisition deal in
hopes to improve earnings per share by about 0.3% in 2009, 04% in
2010, and 0.6% in 2011.

"We can continue to deliver EPS growth above the industry thanks
to our strong balance sheet and low risk profile," Mr. Alvarez
said in a presentation at a Merrill Lynch Banking Conference,
published on its Web site.  He added that rescuing falling banks
like Bradford & Bingley at attractive prices can add value.

Meanwhile, Bloomberg News notes that Santander also agreed to buy
Alliance & Leicester Plc this year to make it the UK's third-
largest lender by deposits.  Chairman Emilio Botin has made more
than US$60 billion of acquisitions, helping Santander become
Europe's second-biggest bank by market value.

                       About Banco Santander

Banco Santander SA is a financial group that offers a range of
financial products.  At the primary level, the Bank's operating
units are segmented by geographical areas, such as Continental
Europe, United Kingdom and Latin America.  The primary level of
segmentation includes the Financial Management and Equity Stakes
segment.  The Continental Europe segment covers all retail banking
(including Banif, the specialized private bank), wholesale banking
and asset management, and insurance conducted in Europe, with the
exception of the operations of the Bank's subsidiary, Abbey
National plc (Abbey).  The United Kingdom (Abbey) segment includes
the operations of Abbey, which is focused on retail banking in the
United Kingdom.  The Latin America segment includes the financial
activities conducted via the Bank's subsidiaries.  In May 2008,
the Company completed the sale of Antonveneta to Banca Monte dei
Paschi di Siena.

                    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 by the Troubled Company Reporter on Oct. 1, 2008,
Moody's Investors Service placed 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 TCR-Europe reported on on Sept. 25, 2008, that Fitch Ratings
downgraded UK-based Bradford and Bingley's ratings to Long-term
Issuer Default 'BBB-' from 'BBB+', Short-term IDR 'F3' from 'F2',
and Individual 'D' from 'C'.  Its Support rating has been upgraded
to '2' from '3' resulting in an upgrade of the Support Rating
Floor to 'BBB-' from 'BB+'.  In line with Fitch's standard
notching policy for hybrid and subordinated instruments, the
ratings for these instruments of B&B have been downgraded to 'B+'
from 'BBB-' and 'BB+' from 'BBB', respectively.  All ratings with
the exception of the Individual rating have been placed on Rating
Watch Evolving.  Separately, Fitch has placed B&B's 'AAA'-rated
covered bonds on Rating Watch Negative.

The TCR-Europe reported on Sept. 2, 2008, that Standard & Poor's
Ratings Services said that its short-term counterparty credit
rating on Bradford & Bingley PLC (B&B; --/Watch Neg/A-2) is
unchanged following the announcement of a first-half loss of GBP17
million.  The current rating incorporates one notch of external
support and remains on CreditWatch with negative implications.


BUSINESS MORTGAGE: Fitch Takes Rating Actions on Various Notes
--------------------------------------------------------------
Fitch Ratings has downgraded the Class C notes of Business
Mortgage Finance PLC program 5 and downgraded the Class C notes of
BMF 6.  Fitch has also placed on Rating Watch Negative the Class
B1 and B2 notes of BMF 5 and the Class B2 notes of BMF 6, along
with the Class C notes of BMF 4, BMF 5 and BMF 6.  The other BMF
programs; BMF 1, BMF 2, BMF 3 and BMF 7 have all been affirmed.

The downgrades and RWN reflect that the reserve funds in BMF 4, 5
and 6 are not yet fully funded while the proportion of loans in
arrears has continued to increase.  Details of the analysis can be
found in a performance report, due to be published later this
week.

BMF1 (due 2036):
  -- GBP4.2 million Class A notes (XS018220413):
     affirmed at 'AAA'; Outlook Stable

  -- Detachable A coupon (XS0186221817):
     affirmed at 'AAA'; Outlook Stable

  -- GBP13.8 million Class M (XS0186220769):
     affirmed at 'AAA'; Outlook Stable

  -- GBP5.3 million Class B (XS0186221577):
     affirmed at 'AA-'; Outlook Positive

  -- MERCs (XS0186222468): affirmed at 'AAA'; Outlook Stable

BMF2 (due 2037):
  -- GBP8.1 million Class A notes (XS0203851117):
     affirmed at 'AAA'; Outlook Stable

  -- Detachable A coupon (XS0203848329):
     affirmed at 'AAA'; Outlook Stable

  -- GBP26.7 million Class M notes (XS0203851380):
     affirmed at 'AA'; Outlook Positive

  -- GBP10.1 million Class B notes (XS0203851463):
     affirmed at 'BBB+'; Outlook Positive

  -- MERCs (XS0203846380): affirmed at 'AAA'; Outlook Stable

BMF3 (due 2038):
  -- GBP32.8 million Class A1 notes (XS0223481325):
     affirmed at 'AAA'; Outlook Stable

  -- Detachable A1 coupon (XS0223483610):
     affirmed at 'AAA'; Outlook Stable

  -- EUR34.1 million Class A2 notes (XS0223481598):
     affirmed at 'AAA'; Outlook Stable

  -- Detachable A2 coupon (XS0223483883):
     affirmed at 'AAA'; Outlook Stable

  -- GBP42.5 million Class M notes (XS0223481838):
     affirmed at 'A'; Outlook Positive

  -- GBP9.5 million Class B1 notes (XS0223482307):
     affirmed at 'BBB'; Outlook Stable

  -- EUR8 million Class B2 notes (XS0223482729):
     affirmed at 'BBB'; Outlook Stable

  -- GBP2.5 million Class C notes (XS0223483024):
     affirmed at 'BB'; Outlook Stable

  -- MERCs (XS0224878099): affirmed at 'AAA'; Outlook Stable

BMF4 (due 2045):
  -- GBP111.4 million Class A (XS0249507947):
     affirmed at 'AAA'; Outlook Stable

  -- Detachable A coupon (XS0250410114):
     affirmed at 'AAA'; Outlook Stable

  -- GBP41.3 million Class M (XS0249508242):
     affirmed at 'A'; Outlook Stable

  -- GBP15 million Class B (XS0249508754):
     affirmed at 'BBB'; Outlook Stable

  -- GBP7.3 million Class C (XS0249509133): 'BB'; placed on RWN

  -- MERCs (XS0250413563): affirmed at 'AAA'; Outlook Stable

BMF5 (due 2039):
  -- GBP75.3 million Class A1 notes (XS0271320060):
     affirmed at 'AAA': Outlook Stable

  -- Detachable A1 coupon (XS0271321035):
     affirmed at 'AAA': Outlook Stable

  -- EUR135.6 million Class A2 notes (XS0271323163):
     affirmed at 'AAA': Outlook Stable

  -- Detachable A2 coupon (XS0271323676):
     affirmed at 'AAA': Outlook Stable

  -- GBP27 million Class M1 notes (XS0271324724):
     affirmed at 'A': Outlook Stable

  -- EUR36.5 million Class M2 notes (XS0271324997):
     affirmed at 'A': Outlook Stable

  -- GBP12 million Class B1 notes (XS0271325291):
     'BBB': placed on RWN

  -- EUR11.5 million Class B2 notes (XS0271325614):
     'BBB': placed on RWN

  -- GBP8.7 million Class C notes (XS0271326000):
     downgraded to 'B' from 'BB': placed on RWN

  -- MERCs (XS0271326778): affirmed at 'AAA': Outlook Stable

BMF6 (due 2040):
  -- GBP91.9 million Class A1 notes (XS0299445808):
     affirmed at 'AAA', Outlook Stable

  -- Detachable A1 coupon (XS0299535384):
     affirmed at 'AAA': Outlook Stable

  -- EUR347.3 million Class A2 notes (XS0299446103):
     affirmed at 'AAA': Outlook Stable

  -- Detachable A2 coupon (XS0299536515):
     affirmed at 'AAA': Outlook Stable

  -- GBP38 million Class M1 notes (XS0299446442):
     affirmed at 'A': Outlook Stable

  -- EUR55.6 million Class M2 notes (XS0299446798):
     affirmed at 'A': Outlook Stable

  -- EUR39.1 million Class B2 notes (XS0299447507):
     'BBB': placed on RWN

  -- GBP17.3 million Class C notes (XS0299447846):
     downgraded to 'B' from 'BB': placed on RWN

  -- MERCs (XS0300896775): affirmed at 'AAA': Outlook Stable

BMF7 (due 2041):
  -- GBP152.5 million Class A1 notes (XS0330211359):
     affirmed at 'AAA': Outlook Stable

  -- Detachable A1 coupon (XS0330212597):
     affirmed at 'AAA': Outlook Stable

  -- GBP38.7 million Class M1 notes (XS0330220855):
     affirmed at 'A': Outlook Stable

  -- EUR5.0 million Class M2 notes (XS0330222638):
     affirmed at 'A': Outlook Stable

  -- GBP12.4 million Class B1 notes (XS0330228320):
     affirmed at 'BBB': Outlook Stable

  -- GBP7.9 million Class C notes (XS0330229138):
     affirmed at 'BB': Outlook Stable

  -- MERCs: affirmed at 'AAA': Outlook Stable


CORVUS CAPITAL: CEO Mulls Firm Delisting and Payment of Dividend
----------------------------------------------------------------
Andrew Regan, chief executive officer of Corvus Capital Inc.,
intends to delist the company and pay shareholders a
GBP5.75 million pound special dividend, Reuters writes.

Mr. Regan said economic conditions meant the available investment
opportunities were high-risk and did not suit public based
investment, based on the report.

Corvus will pay a dividend of two pence per share before
liquidating the remaining assets and transferring the cash to
shareholders, Reuters adds.

Corvus Capital Inc. (CORV.L) is an investment holding company.
The company provides equity capital for, and invests in, companies
which have the potential for capital growth.  During the fiscal
year ended Sept. 30, 2007 (fiscal 2007), the company held
interests in Highway Capital plc, Roeford Properties plc,
Communications Inc., Global Gaming Technologies plc and
DiamondTech Inc. Disposal of investments during fiscal 2007,
included Gable Holdings Inc., Conival plc, Commoditrade Inc.,
Nanoscience Inc. and Global Structured Finance Inc.  As of
April 20, 2007, the Company acquired a 20.20% interest in
Commoditrade Inc. and a 22.40% in Canisp PLC.


EDEUS MORTGAGE: Brings in Administrators from KPMG
--------------------------------------------------
Administrators from KPMG have been appointed to Edeus Mortgage
Creators Ltd and Edeus Creators Ltd by the company's directors on
Wednesday, Oct. 8, 2008.

The business which has its headquarters in Wolverhampton employs
26 people, providing mortgage intermediary services.

Allan Graham, joint administrator from KPMG confirmed that the
business will continue to trade while they seek a going concern
sale.  He said: "Edeus has successfully transformed its business
model to focus on credit assessment and collections work and has
won contracts with several major companies.  However, the
conditions in the housing and financial markets have led to the
directors appointing administrators.

"Over the next few days we will be evaluating the business as we
work towards securing a going concern sale."

All customers who are currently on the Edeus mortgage book will be
unaffected by this announcement and their loans will continue to
be serviced as normal.

                    About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


FOCUS: To Terminate 750 Workers Over Difficult Economic Climate
---------------------------------------------------------------
Various reports say that Focus, the DIY chain, will lay off 750
workers at its support centers, stores, and distribution centers
due to "difficult economic climate" including slump in the housing
and home improvements market.  Focus said it wants to make sure it
maintained its position in the market amid the crisis.

According to the reports, although a distribution center in
Bristol will be closed, Focus' 181 stores remain open.

Crewe Chronicle relates that the firm said making redundancies was
a "difficult" but necessary decision.  "We provided a full
briefing to all those potentially affected and will now work
closely with them to look for alternative roles," the report says,
citing a company spokeswoman.

Focus, headquartered in Westmere Drive, Crewe Business Park,
employs around 500 people in the United Kingdom.

Crewe Business Park in South Cheshire in the United Kingdom is a
67 acre site established as a premier business park in the north
west and was the first ecologically-based development of its kind.


HERITABLE BANK: Fitch Trims Individual Rating to 'D'
----------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default ratings
of Glitnir Banki hf. and Landsbanki Islands to 'B' from 'BBB-' and
'BBB' respectively, and that of Straumur Burduras Investment Bank
to 'BB-' from 'BB+'.  The ratings of Kaupthing Bank hf. are under
review.

This rating action follows the announcement of legislative
measures providing for broad authority to Icelandic authorities to
intervene in the Icelandic financial system and the statement that
Landsbanki has been placed in receivership, and reflects Fitch's
view that both the ability and propensity of the Icelandic
authorities to support the Icelandic banking system are becoming
increasingly compromised.  The support rating floor for the major
Icelandic banks is now 'B'.

Both Glitnir, following the acquisition by the Icelandic
authorities last month of a 75% stake, and Landsbanki, which was
placed in receivership, are now at their support rating floor.
Glitnir's Individual rating of 'F' is affirmed and Landsbanki's
Individual rating has been downgraded to 'F' from 'C' to reflect
the receivership arrangement.  Fitch notes that under the
receivership arrangement, Landsbanki could be subjected to
'temporary protection from payments of debts and obligations as
they fall due'.  It is not clear that such a moratorium will be
enacted but Fitch would view it as a default.

The Rating Watch Evolving on the ratings of Glitnir and Landsbanki
reflects Fitch's view that uncertainty surrounding the
availability of resources to support the banks could drive the
ratings in either direction.

Straumur's ratings reflect a different risk profile from the three
major Icelandic banks.  The bank has not been involved so far in
negotiations with Icelandic authorities, but Fitch's view is that,
despite low leverage and the relative liquidity of its balance
sheet, some contagion risk is likely to continue to affect the
bank and that support cannot be relied upon in the current
environment given its limited Icelandic business.

The rating actions detailed below of Landsbanki's UK subsidiary
Heritable Bank Ltd are based on Fitch's view that, while support
from the Icelandic authorities is unlikely to extend to overseas
subsidiaries, Heritable's fundamentals, and its requirement to
abide by local prudential requirements, offer some moderately
greater flexibility, although exposure to and/or reliance on the
parent means the risk of contagion is high.

The ratings of the three banks and those of Heritable are:

Glitnir Banki:
  -- Long-term IDR and senior debt: downgraded to 'B' from
     'BBB-'; on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-' on Rating
     Watch Evolving

  -- Individual rating: affirmed at 'F'

  -- Subordinated debt: downgraded to 'CCC+' from 'BB'; on Rating
     Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'B'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Landsbanki Islands:
  -- Long-term IDR and senior debt: downgraded to 'B' from 'BBB';
     on Rating Watch Evolving

  -- Short-term IDR: downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: changed to '4' from '2'; on Rating Watch
     Evolving

  -- Support Rating Floor: revised to 'B' from 'BBB-'; on Rating
     Watch Evolving

  -- Individual rating: downgraded to 'F' from 'C'

  -- Subordinated debt: downgraded to 'CCC+' from 'BBB-'; on
     Rating Watch Evolving; recovery rating of 'RR5' assigned

  -- Hybrid capital instruments: downgraded to 'C' from 'BB+'; on
     Rating Watch Evolving; recovery rating of 'RR6' assigned

Heritable Bank Ltd:
  -- Long-term IDR downgraded to 'BB' from 'BBB'; on Rating Watch
     Evolving

  -- Short-term IDR downgraded to 'B' from 'F3'; on Rating Watch
     Evolving

  -- Support rating: downgraded at '4' from '2' ; on Rating Watch
     Evolving

  -- Individual rating: downgraded to 'D' from 'C'; on Rating
     Watch Evolving

Straumur Burdaras Investment Bank:
  -- Long-term IDR and senior debt downgraded to 'BB-' from 'BB+';
     on Rating Watch Evolving

  -- Short-term IDR affirmed at 'B'; revised to Rating Watch
     Evolving

  -- Support rating: changed to '5' from '3';

  -- Support Rating Floor: revised to 'No Floor'

  -- Individual rating: downgraded to 'D' from 'C/D'; on Rating
     Watch Evolving

  -- Subordinated debt: downgraded to 'B' from 'BB'; on Rating
     Watch Evolving


INSTANT ACCESS: Head Puts Up Own Money to Lure Investors
--------------------------------------------------------
Mr. Jim Moore, head of Instant Access Properties, injected his own
money into the company to lure investors.  The undisclosed amount
will be used to relaunch the company as IAP Global and to secure
properties for the 4,500 customers with incomplete deals, Alice
Ross of Financial Times reports.

The company went into administration on Sept. 17, 2008, blaming
squeeze on mortgage lending, FT notes.

Instant Access Properties -- http://www.iaprops.com/-- is the
largest residential property investment company in the UK having
sourced over 17,000 properties around the globe.


LASER BROADCASTING: Files Liquidation Petition in Leeds Court
-------------------------------------------------------------
Capital North East No 1 Limited Partnership has petitioned the
High Court in Leeds to force Laser Broadcasting into liquidation,
the Northumberland Gazette reports.

The petitioners have court appointment on Oct. 14, 2008, the
report adds.

A spokeswoman for the media regulator Ofcom was quoted by the
report as saying, "We are aware that a petition to wind up Laser
Broadcasting is due to be heard next week, and we are monitoring
developments closely."

Laser Broadcasting holds nine commercial radio licenses through
its subsidiaries.


LUCITE INTERNATIONAL: Moody's Junks CFR to Caa1; Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Lucite International Group Holdings to Caa1 and the
ratings assigned to the senior secured facilities raised at Lucite
International US Finco LLC and Lucite International Finco Ltd to
B3 / LGD 3 (33%).  The outlook is negative.

The rating action reflects a sustained weakness in the operating
performance of the group, whose margins and cash flow generation
has been affected by high input costs and lower volumes that led
to a rapid deterioration in financial metrics and restricted
financial flexibility at a time when the group has continued CAPEX
outflows under long term projects.  At the end of 2Q 2008,
Lucite's Cash Pay Gross Debt / EBITDA stood at 5.6 times
(estimated at 10.1 times including Lucite's EUR260 million PIK
notes and Moody's standard debt adjustments) with a weakening
liquidity profile.

In 2006, Lucite raised debt to pre-fund a multi-year investment in
the new MMA plant based on its proprietary cost-advantaged Alpha
technology, which is due to come on stream in October 2008.  The
group, owned by a private equity sponsor, is a well-managed niche
chemical producer with leading market shares globally that should
be further strengthened once the new Alpha plant comes on stream
this year.  Moody's concerns relate to the near term prospects
where the company is faced by a weakened cash flow and modest cash
cushion.

Lucite's had approximately GBP60 million in cash balances at the
end of 2Q and has full availability under its USD100 million
working capital facility.  It is anticipated that Lucite will need
access to this funding to support expected free cash flow losses
over the short term as remaining CAPEX requirements for Alpha
plant and maintenance investments continue.  Moody's cautions that
the liquidity position may be further restricted should the group
not comply with its financial covenants in its senior facilities,
which are due to re-adjust at year end.

To alleviate the stress on its credit profile and liquidity
situation, Lucite has indicated that it is currently working on
several contingency plans.  Moody's remain cautious with respect
to the timing of resolution to these plans in the context of
meeting its financial obligations in a timely manner.  In its
instrument ratings, Moody's has also taken into consideration the
anticipated recovery prospects for the senior secured facilities,
which are supported by the potential value inherent in the group's
key assets.

Moody's will continue to closely monitor operating developments
and the implementation of contingency plans announced by the
company.  The outlook will remain negative until Moody's has
assessed the outcome of this evolving situation.

Ratings affected:

   -- Corporate Family Rating downgraded to Caa1
      from B3;

   -- Probability of Default Rating downgraded to Caa1
      from B3;

   -- Lucite International US Finco LLC Senior Secured
      Bank Credit facility downgraded to B3, LGD 3 (33%)
      from B2, LGD3 (33%)

   -- Lucite International Finco Ltd Senior Secured Bank
      Credit facility downgraded to B3, LGD 3 (33%) from
      B2, LGD3 (33%)

Lucite is a world leading producer of methyl methacrylate ('MMA')
with a total annual production capacity of 700,000 tons and a
market share of 25%.  Lucite reported revenues of GBP849 million
and an EBITDA of GBP114 million for the fiscal year ended December
31, 2007.


MACGREGOR GOLF: Appoints Joint Administrators from KPMG
-------------------------------------------------------
Howard Smith and Brian Green of KPMG LLP were appointed joint
administrators of MacGregor Golf (Europe) Ltd. (Company Number
01030282) on Sept. 25, 2008.

The company can be reached at:

         MacGregor Golf (Europe) Ltd.
         c/o KPMG LLP
         1 The Embankment
         Neville Street
         Leeds
         England


MOBESTAR HOLDINGS: Can't Secure Funding; Seeks Administrators
-------------------------------------------------------------
Mobestar Holdings Plc has been unable to secure further funding
and has therefore requested that the Company's shares be
temporarily suspended from trading on AIM pending clarification of
the Company's financial position.

The board is currently seeking to appoint Administrators to the
Company.

Mobestar offers complete technology solution for mobile
communities.  The company is listed on the London and Frankfurt
stock exchanges.


ONYX SECURITY: Calls in Joint Administrators from Vantis
--------------------------------------------------------
Frank Wessely and Peter James Hughes-Holland of Vantis Business
Recovery Services were appointed joint administrators of Onyx
Security Hardware Ltd. (Company Number 05665140) on Sept. 23,
2008.

The company can be reached at:

         Onyx Security Hardware Ltd.
         29 Gloucester Place
         London
         W1U 8HX
         England


PREMIER PROPERTIES: Taps Joint Administrators from KPMG
-------------------------------------------------------
Jane Moriarty and Jim Tucker from KPMG have been appointed Joint
Administrators to Premier Properties Plc, following a request from
Royal Bank of Scotland.

The company, which is based in Camberley, Surrey, is involved in
the construction and development of residential property in the
South-East.

Administrator Jane Moriarty said: "Unfortunately Premier
Properties has become a victim of the collapse of the property
market and have found themselves under increasing trading and cash
pressures.  KPMG is currently working towards marketing and
selling land and properties previously owned by Premier Properties
Plc."

The company concentrated on the high end of the residential market
from one and two bedroom luxury apartments to luxury country
houses and mansions.  Prices range from around GBP200,000 for
certain apartments through to high end seven bedroom houses at
GBP3 million.

It made a profit before tax of GBP1 million in the year to
Dec. 31, 2007 on turnover of GBP28 million.  The book value of
land, developments in progress and properties held for resale at
that year end was GBP29 million.

Premier Property Plc was placed into administration on
Monday, Oct. 6, 2008 and employed 19 staff, most of whom have now
been made redundant.

                     About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


SKINNER LANE: Calls in Joint Administrators from KPMG
-----------------------------------------------------
Richard Fleming and Mark Firmin from KPMG's Restructuring practice
in Leeds have been appointed as Joint Administrators to Skinner
Lane (Commercial) Ltd and 20:20 Developments (Management) Ltd on
Wednesday, Oct. 8, 2008.

Both companies are subsidiaries of SRM Holdings Ltd, the Leeds-
based residential and commercial property group which went into
administration on Tuesday, Oct. 7.  Together, the two companies
hold a development site of approximately 272 residential flats in
Skinner Lane, Leeds.

Richard Fleming, joint administrator and head of KPMG's
Restructuring practice in the North, commented, "We've been
appointed as administrators to one specific development, which is
the major asset within the SRM Group, and will be working with
management over the coming days in order to assess the situation."

                    About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


SRM HOLDINGS: Goes Into Administration
--------------------------------------
Leeds-based property group SRM Holdings Ltd has gone into
administration, David Doyle of PropertyWeek.com reports.  Begbies
Traynor has been appointed administrator to the company, which
owned more than 500 properties, mostly apartments in Leeds.

The company, the report relates, was set up in the summer after
owner Simon Morris voluntarily dissolved Morris Properties and its
parent company SR Morris.

According to the report, the company owes more than GBP50 million
to a number of high street banks.

The company, the report discloses, earned more than GBP15 million
for the year ending July 31, 2006.


YRC WORLDWIDE: Reaffirms Financial Forecast for Second Half 2008
----------------------------------------------------------------
YRC Worldwide, Inc., in a Securities and Exchange Commission
filing, reaffirmed that it expects to have positive free cash flow
in both the third and fourth quarters of 2008 with a significant
debt reduction for the year.  In addition, the company expects to
remain in full compliance with all terms of its credit agreement,
including the leverage ratio.

"With more than US$9 billion in annual revenue and comprehensive
networks in the national and regional markets, we continue to
provide excellent service to our customers each and every day,"
stated Bill Zollars, Chairman, President and CEO of YRC Worldwide.
"Despite the continuing unrest in the broad financial markets, our
current financial position is solid and we remain well positioned
to weather this economic environment."

                       About YRC Worldwide

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.

                           *     *     *

As reported in the Troubled Company Reporter on April 29, 2008,
Standard & Poor's Ratings Services affirmed its ratings on YRC
Worldwide Inc., including the 'BB' corporate credit rating, and
removed the ratings from CreditWatch, where they had been placed
with negative implications on Feb. 21, 2008.  The outlook is
negative.  The ratings had been placed on CreditWatch because of
heightened concerns over the company's refinancing risk,
earnings performance, and liquidity position over the next year,
given the slowing U.S. economy and continuing pressures in the
trucking sector.


YRC WORLDWIDE: Warns of Likely Impairment of Goodwill, Trade Names
------------------------------------------------------------------
YRC Worldwide Inc., disclosed in a Securities and Exchange
Commission filing that due to its current market capitalization of
YRC Worldwide Inc., and in light of current economic conditions,
the company's management believes that, as of Sept. 30, 2008, the
possibility of impairment exists in connection with goodwill and
trade names for the National Transportation segment, trade names
for the Regional Transportation segment and goodwill for the YRC
Logistics segment.

As a result of these indicators, the Company is testing these
assets.  Once the impairment tests are complete, the Company will
be able to conclude whether any impairment exists and to what
extent, if any, an impairment charge should be included in the
Company's third quarter 2008 financial results. Such impairment
charge, if any, would be non-cash in nature and excluded from the
leverage ratio calculation under the Company's credit facility and
asset-backed securitization facility.

                       About YRC Worldwide

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.

                           *     *     *

As reported in the Troubled Company Reporter on April 29, 2008,
Standard & Poor's Ratings Services affirmed its ratings on YRC
Worldwide Inc., including the 'BB' corporate credit rating, and
removed the ratings from CreditWatch, where they had been placed
with negative implications on Feb. 21, 2008.  The outlook is
negative.  The ratings had been placed on CreditWatch because of
heightened concerns over the company's refinancing risk,
earnings performance, and liquidity position over the next year,
given the slowing U.S. economy and continuing pressures in the
trucking sector.


* UK Gov.'t Support to Banking Sector Won't Affect Moody's Ratings
------------------------------------------------------------------
Moody's Investors Service has commented on the statement by the UK
Government regarding its proposals to provide support to the UK
banking sector.  Moody's views government's proposals as a
positive development in the current environment, but the rating
agency considers they are unlikely to lead to wholesale rating
changes in the sector.

The proposals include:

   -- Provision of up to GBP50 billion of capital through
      subscribing to an issue of preference shares (or PIBS
      in the case of building societies) from eligible
      institutions (see below for details).

   -- A government guarantee of debt issuance of eligible
      institutions, of terms up to three years, expected to
      be around GBP250 billion .

   -- An increase in the size of the Special Liquidity Scheme
      to GBP200 billion, and further continuing liquidity
      auctions of sterling over a three month term, as well
      as plans for a permanent regime underpinning banking
      system liquidity, including a Discount Window facility

Eligible institutions are UK incorporated banks (including
subsidiaries of UK banks) that have a substantial business in the
UK, and UK building societies.  Eight institutions have confirmed
their participation: Abbey National plc (rated C+/Aa3, stable
outlook), Barclays Bank plc (rated B/Aa1, ratings under review for
possible downgrade), HBOS plc (rated Aa2, on review for possible
downgrade), HSBC Bank plc (rated B/Aa1, stable outlook), Lloyds
TSB plc (rated B+/Aaa, on review for possible downgrade),
Nationwide Building Society (rated B/Aa2, negative outlook), Royal
Bank of Scotland plc (rated B/Aa1, stable outlook), and Standard
Chartered Bank (rated C+/A2, stable outlook).

                    Moody's Perspective

Moody's released a position paper yesterday on its approach
towards incorporating government support for banking systems into
its ratings titled "Assessing the Rating Implications for Banks of
the Current Market Turmoil and Governmental Interventions to
Support Their Banking Systems".  With respect to the UK, Moody's
views proposals from the government as a positive development in
the current environment for the following reasons:

   -- Moody's expects that the support, both liquidity and
      capital, provided by the UK government will ease some
      of the more extreme pressure being exerted on the
      banks by the loss of market confidence, which is
      largely, in Moody's opinion, unrelated to the
      fundamentals of the banks themselves.

   -- In particular the guarantee on new debt should ease
      the funding constraints of the UK banks which have
      been affected, along with most financial institutions
      globally, by the disappearance of normal funding
      conditions

   -- The new capital will also provide a significant
      buffer for loan losses that Moody's expects to
      materialize over the next 12 to 18 months.

                  Capital Increases

The eight institutions noted above have committed to the
government, that by year-end 2008, they will increase their total
Tier 1 capital by GBP25 billion in aggregate, although the amount
will vary among the different institutions.  The government has
made GBP25 billion available to be drawn-on in the form of
preference shares or PIBS.  An additional GBP25 billion of further
capital support is available if requested.  Although the final
terms and conditions of any capital investment by the government
are still to be determined, if the capital is to be provided by
the government then the banks are likely to need to adjust their
dividend policies, and executive compensation policies, as well as
commit to continue lending in the UK.

However, the additional capital is unlikely to lead to wholesale
rating upgrades in the sector, given we already incorporate
systemic support in our ratings of UK financial institutions, and
these measures by themselves will not be sufficient to eliminate
the pressures UK banks and global financial systems are facing.
Similarly, it is unlikely to prevent downgrades that may be
prompted by M&A or that may reflect weakening credit profiles due
to the operating environment and specific exposures to the extent
the additional capital made available proves to be insufficient to
mitigate these circumstances.  The current reviews on Barclays,
HBOS and Lloyds TSB are largely M&A related.  Therefore, although
Moody's sees additional capital as supportive to the ratings of
these institutions, the ratings remain on review for possible
downgrade (see comments "Moody's reviews Barclays' ratings for
possible downgrade", dated September 17 and "Moody's reviews
Lloyds TSB and HBOS for possible downgrade", dated September 18
for the key factors that these reviews are focused on).

              Government Backed Debt Issuance

Moody's also commented on the guarantee which is being made
available by the government to eligible institutions for new short
and medium term debt issuance.  Moody's will provide more detailed
guidance on its approach when the full terms of the guarantee
become available, but subject to satisfactory terms, notably on
timeliness of payment and duration, such facilities could receive
backed short- and long-term ratings in line with the rating of the
UK government and distinct from the unbacked short- and long-term
debt ratings of the financial institution itself.

                    Banking System Outlook

The outlook for the UK banking system is negative, reflecting
Moody's expectations for the fundamental credit conditions in the
UK banking system over the next 12 to 18 months (see the Banking
System Outlook published in May 2008).  The economic situation in
the UK has been deteriorating over the course of 2008, and there
are many uncertainties as to how this will specifically impact
each bank.  In general the large UK banks have not seen
significant deterioration in their UK loan books to date.  The
initial stresses in UK assets have appeared at lenders with a high
proportion of non-conforming residential mortgages (such as
Bradford & Bingley), and the residential mortgage lending of the
large UK banks is generally better positioned with lower LTVs.
The high indebtedness of UK consumers is expected to lead to
higher arrears for unsecured lending, although the difficulties
the banks experienced 2-3 years ago in these books, means that
underwriting standards have been tightened and this will afford
some protection to the better positioned banks.

However, the funding squeeze and a slow down in retail spending
and consumer confidence, has had a visible impact on the pace of
companies restructuring their debt and going into administration.
Moody's view is that over the next 12-18 months this will have a
negative impact on the banks' corporate lending books as well as
their corporate property investment lending, which is affected by
falls in commercial property prices, refinancing difficulties and
an expected increase in tenant defaults.

In mitigation of the above, Moody's said that the high ratings it
assigns to the large UK banks remain supported by their strong
market shares over a broad range of business lines, and -- in the
case of some banks -- geographies, and good retail deposit bases.


* UK Gov't Support Won't Affect Banks' Credit Ratings, S&P Says
--------------------------------------------------------------
Standard & Poor's Ratings Services has welcomed the UK
government's proposals to provide financial assistance to the
UK banking system. This move is consistent with S&P's expectations
of extraordinary government action in supportive countries like
the UK in times of extreme stress.  As such, it provides support
to ratings which otherwise were potentially vulnerable to a
gathering crisis of confidence and an associated "credit cliff".
However, the plan is unlikely to result in changes to S&P's
counterparty credit ratings on the UK banks.   Downward rating
actions are still possible, reflecting for example a future
deterioration in asset quality and earnings, although the rating
agency expects such actions to be limited due to the support of
the plan for capital, funding, and liquidity.

The package is more comprehensive than most of the plans for
tangible support announced in other countries so far, in that it
seeks to substantially improve long-term capital, medium-term
funding, and short-term liquidity.  In combination, S&P believes
that these plans could be effective in restoring greater
confidence to markets and help re-establish a more conventional
operating environment, allowing fundamental analysis once again to
take precedence over short-term confidence issues.  That the UK
government has taken these extraordinary support measures reflects
the fragile state of the global capital markets and market
concerns regarding bank capitalization and potential future credit
losses.

The plan outlines these key points:

  -- Eight leading UK financial institutions will raise GBP25
     billion in Tier 1 capital -- equivalent to about 1.4
     percentage points of their risk-weighted assets -- either
     directly from the government or from the market, using the
     government's backing.  A further GBP25 billion is available
     to these banks or other UK-incorporated institutions.
     This capital is likely to  be in the form of preference
     shares, although support for common equity issues is also
     possible.

  -- Banks that raise Tier 1 capital will be able to raise new
     issues of wholesale funding of up to three years' maturity,
     with the government's guarantee, in order to assist in
     refinancing debt maturities as they fall due.  In aggregate,
     the UK Treasury expects to guarantee about GBP250 billion
     in debt.

  -- The Bank of England will expand its existing liquidity
     provision to the banking sector by enlarging the Special
     Liquidity Scheme to GBP200 billion from about GBP100 billion,
     allowing a broader range of collateral, and accelerate plans
     for a permanent discount window facility.

Many of the details of the package are yet to be announced.  In
some cases, banks could raise equity or other capital from
nongovernment sources, perhaps underwritten by the Treasury,
rather than forcibly dilute their own shareholders.  HSBC Holdings
PLC, for example, has said that the capital increase anticipated
for its UK bank subsidiary will come from internal group
resources, rather than the government.  Similarly, Abbey National
PLC plans to increase its capital by drawing on resources internal
to its parent, Banco Santander S.A.  In providing access to
capital, the government expects to take into account banks'
ordinary share dividend and executive compensation policies.  This
suggests to us that banks using the government recapitalization
facility will be expected to substantially reduce or eliminate the
payment of final cash dividends for 2008, at least.

S&P believes that these government actions are a significant,
broad, and tangible manifestation of extraordinary support for the
UK banking sector.  They differ from the actions taken in most
other countries so far, in that they attempt to address a wide
range of concerns for a broad number of banks.  As a result, S&P
thinks that the plan stands a better chance of restoring
confidence, and therefore improving the flow of cash both within
the banking system and to the real economy.

As outlined in S&P's report published on Oct. 2, 2008, Government
Support As A Ratings Factor For Private Sector European Banks, S&P
believes that such actions are likely in circumstances of extreme
stress in countries which it considers to be "supportive",
including European Union economies.  As such, and in view of the
continued deterioration in capital and money markets, the actions
are largely anticipated by S&P's current ratings on the banks
concerned, and S&P does not expect to change its counterparty
credit ratings or outlooks as a result.  However, S&P's ratings on
individual debt issues would benefit from timely guarantees from
the UK government (AAA/Stable/A-1+) where applicable.   It is not
yet certain whether any government-owned preference shares would
rank pari passu with existing preference shares, and S&P will
monitor the details of the plan as they emerge, and will consider
the implications for the risk of deferral.  This risk may increase
where a bank does not pay ordinary dividends.

S&P's counterparty credit ratings on UK banks will continue to be
driven by medium- and longer-term fundamentals.  These
fundamentals remain unfavorable, due to the weak economic
prospects for the UK, falling house prices, rising unemployment,
deteriorating corporate health, and difficult capital markets.
This places UK-biased institutions at a potential disadvantage to
some similarly rated peers, although HSBC Holdings PLC and
Standard Chartered Bank currently benefit from their exposure to
the better-performing Asian markets.  In the longer-term, S&P
expects banks in the UK -- and indeed in most countries -- to
reduce leverage and increase liquidity reserves.  This will likely
result in lower returns on equity, but would ultimately be
positive for bondholders.  However, despite such pressures, S&P
expects that UK banks have sufficiently strong margins and asset
quality to enable them to remain profitable through a downturn.

Banks participating in the Recapitalization Scheme:

     -- Abbey National PLC** (AA/Stable/A-1+)
     -- Barclays Bank PLC (AA/Watch Neg/A-1+)
     -- HBOS PLC* (A+/Watch Dev/A-1)
     -- HSBC Bank PLC*** (AA/Stable/A-1+)
     -- Lloyds TSB Bank PLC (AA/Watch Neg/A-1+)
     -- Nationwide Building Society (A+/Stable/A-1)
     -- Royal Bank of Scotland Group PLC* (A+/Negative/A-1)
     -- Standard Chartered Bank (A+/Stable/A-1)

*Holding company.
**Subsidiary of Banco Santander S.A. (AA/Stable/A-1+).
***Subsidiary of HSBC Holdings PLC (AA-/Stable/A-1+).


* PwC Says Interest Rate Cut May Weaken Impending Recession
-----------------------------------------------------------
PricewaterhouseCoopers LLP has welcomed the co-ordinated global
move to cut interest rates and the bank recapitalization plan
announced by the UK government on Wednesday, Oct. 8, 2008.

John Hawksworth, macro-economic adviser, PricewaterhouseCoopers
LLP, said: "We welcome this co-ordinated global move to cut
interest rates, together with the bank recapitalization plan
announced by the UK government this morning.  Although it is
probably too late to avoid the onset of a technical recession in
the UK, these measures should help to prevent a deeper and more
prolonged recession, which was becoming a real risk."

This follows Wednesday morning's response from John Hitchins, UK
banking leader, PricewaterhouseCoopers LLP, to the banking bail
out:

"The UK government's recently announced measures to restore
financial stability and to protect ordinary savers is a welcome
and necessary move to unlock the freeze in wholesale markets.

An essential difference between the UK government's proposal and
those proposed by other countries is that the UK is addressing
both capital and liquidity.

By ensuring the banking system has the funds necessary to maintain
lending in the medium term the government may provide the lynchpin
key to boosting confidence.  Of course, only time will tell
whether these measures are enough.  Something dramatic was
required to help confidence return and these measures may be it.

             About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


* UK Non-Life Run-off Market Liabilities Fall, KPMG Survey Says
---------------------------------------------------------------
Total liabilities of the UK non-life run-off market fell to an
estimated GBP28.3 billion, down from GBP32.7 billion in 2006. This
equates to 15 percent of the non-life market as a whole, according
to the sixth KPMG Run-Off Survey of non-life companies.

The reduction in the value of liabilities is primarily a result of
three factors:

    * The increase number of "reinsurance to close" (RITC)
      transactions at Lloyd's

    * The limited number of significant new run-offs in the
      market,

    * The continued acceleration of run-offs through
      commutations and settlement activity as companies pro-
      actively manage books of discontinued business.

While the total liabilities of the UK non-life run-off market fell
by GBP4.4 billion on last year's figure, total capital tied-up in
solvent UK non-life companies has only decreased by GBP0.3 billion
in the corresponding period to GBP4.6 billion.

Mike Walker partner and head of KPMG's Restructuring Insurance
Solutions practice said: "Capital efficiency is a boardroom mantra
and in the current climate many companies – both live and in run-
off - are increasingly looking at ways of restructuring in order
to optimize their capital structures.  These figures suggest that,
while the run-off market is managing down its liabilities
effectively, the challenge remains for the market as a whole as to
how best to access, release or redeploy trapped capital."

One tool which insurers have used to release capital is the Scheme
of Arrangement.  The survey demonstrates continued support for the
scheme mechanism; there were 27 sanctioned in 2007 and that number
will increase significantly in 2008 with the sanctioning of the 82
EW Payne pools schemes.

Walker, who advised on the schemes for the EW Payne pools
continues: "Significant innovation is taking place in solvent
schemes in particular with respect to underwriting pools.  The EW
Payne Pools scheme template could be used for resolving dozens of
other pools in run-off."

The survey also shows that, increasingly, shareholders are using
the disposal process to extract value from companies in run-off.
To date, the crisis in the credit market does not appear to have
dampened the enthusiasm of purchasers to bid significant amounts
for large portfolios of business.  A number of major transactions
were completed in 2007 and early in 2008.

The survey also suggests that Solvency II is high on the agenda
for businesses in run-off.  Steve Goodlud, Director of KPMG's
Restructuring Insurance Solutions practice noted that: "Solvency
II is a clear factor driving some aspects of strategy for
businesses in run-off.  If they have not already done so, time is
running out for companies to meet the challenges and opportunities
that the Solvency II regime will bring."

The impact of Solvency II and the maturing run-off market in the
UK has led some run-off specialists to look to Continental Europe
for new opportunities.  While there a number of obstacles to
overcome, the survey suggests that by adopting the right approach,
there is an opportunity to develop this market.

Walker concludes that the global landscape may change drastically
in the near future: "It's certainly possible that the current
financial crisis could result in more activity for run-off
specialists."

                     About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


* UK Labor Market Conditions Deteriorate, KPMG Survey Says
----------------------------------------------------------
September's Report on Jobs, from the Recruitment and Employment
Confederation and KPMG, showed that UK labor market conditions
continued to deteriorate.  Overall demand for staff fell at the
sharpest rate in the survey's eleven-year history, leading to
marked declines in permanent and temporary appointments.  Wages
and salaries were broadly static as strongly rising candidate
availability dampened pay pressures.

The Report on Jobs, published Wednesday, Oct. 8, 2008, by the
Recruitment & Employment Confederation and KPMG, provides the most
comprehensive guide to the UK labor market, drawing on original
survey data provided by recruitment consultancies.

Kevin Green, Chief Executive, Recruitment and Employment
Confederation (REC), says: "The rapidly worsening economic outlook
is now really starting to bite in the jobs market with temporary
and permanent appointments dropping rapidly.  With demand for
workers declining at its fastest pace since October 2001, it is
essential that the Government ensures that new measures do not
exacerbate the trend.  "To this end, we are calling on the
Government to reconsider removing the VAT staff hire concession.
Removing the concession will add GBP400 million to employer costs
at a time when key sectors like charity, financial and health-care
can least afford it."

Alan Nolan, Director at KPMG comments: "The impact of the banking
crisis has caused the UK jobs market to deteriorate in such a
manner not seen since September 2001.  Employers are clearly
feeling the effects, with redundancy programs at the center of all
cost reduction strategies and by refusing to invest in the skills
available in an ever increasing labor pool.  Continuing pressure
on both permanent and temporary placements may also see a radical
overhaul of the manner in which the UK recruitment industry
operates.  This may involve further consolidation, strategic
collaboration between agencies and maximum automation of process,
as the industry seeks to ride out the storm."

                     About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.


* BCC Survey Says Domestic Economy Under Immense Pressure
---------------------------------------------------------
The British Chambers of Commerce Quarterly Economic Survey (Q3
2008) received over 5,000 responses from businesses of all sizes
and sectors.

2008 Q3 results are exceptionally bad and follow worrying results
in the second quarter.  Virtually all the key national balances
have worsened, and many are in negative territory.

The domestic economy is under immense pressure for the second
quarter in a row, with the survey results showing that the UK is
now in a worsening recession.

The BCC believes that if the Government and the MPC act
immediately to return confidence to UK plc, a major recession can
be avoided.

Businesses and consumers need a half-point cut in interest rates
at Oct. 9, 2008, MPC meeting.

Key results from the survey show:

    * Domestic balances, sales as well as orders, have moved
      deeper into negative territory, for both manufacturing and
      services

    * All firm sizes, in both sectors, show negative Q3 domestic
      balances, a disturbing and unusual situation

    * Manufacturing export balances plummeted in Q3

    * Collapse in confidence across sectors

    * All confidence balances, turnover as well as
      profitability, fell to record lows in Q3, for both
      manufacturing and services

    * Cashflow balances remain negative in this quarter

    * Recruitment dip across sectors

    * Investment balances in plant and machinery moved into
      negative territory for both sectors

"We are clearly in a very difficult economic period but it is
important that we retain a sense of proportion," BCC Director-
General David Frost said.  Many parts of the business community
continue to perform well.

"Confidence is critical and it is vital that businesses are shown
leadership.  The BCC will be showing such leadership in the coming
months.

"The Government needs to say that business taxes will be cut. The
Bank of England need to cut interest rates immediately and
politicians need to get behind our businesses in these challenging
times.  More than just growth makers – businesses are critical to
our local communities."

"Overall, the alarming Q3 results point to worsening dangers of
major economic downturn and rising unemployment," David Kern,
economic advisor to the BCC, added.  The results support the view
that a UK recession has started and the downturn is getting worse.
The domestic economy is under immense pressure.

"The mounting global banking crisis reinforces our view that
immediate threats to growth are more critical than dangers of
higher inflation.  Without forceful and urgent corrective action,
there is a serious danger that the recession will deepen and cause
huge damage.

"The MPC must cut interest rates without delay, with a half per
cent cut on Thursday.  Over the next four months, interest rates
must be cut to four per cent as a minimum.

"The Government must put in place a credible framework for dealing
promptly with any financial institution that may experience
problems. We need a comprehensive scheme that replaces the current
ad-hoc and piecemeal arrangements.

"The smooth flow of finance to businesses must be sustained at all
costs.  Any thought of early tax increases must be quashed.

"While a moderate recession is very probably unavoidable, the
worst consequences can be mitigated if correct policies are
adopted."

The British Chambers of Commerce (BCC) is the National Voice of
Local Business.  The BCC sits at the heart of a powerful
nationwide network of Accredited Chambers of Commerce serving
business across the UK, which employ over five million people.


* Moody's Reports Negative Outlook for European Retailers
--------------------------------------------------------
The outlook for European retailers is negative, as a combination
of more restrained consumer spending and higher input costs for
core items such as food and energy weigh on companies'
performance, says Moody's Investors Service in a new report.  As a
result of the downturn in consumer spending, Moody's rating
actions in the sector have been largely negative in 2008.  The
report, "European Retailers Industry Outlook," expresses the
rating agency's expectations for fundamental credit conditions in
the industry for the next 12-18 months.

As expected, some retailers have been affected by the current
difficult economic situation more than others, largely reflecting
the degree of discretionary spending among their clientele.  "DIY
and home appliances, for example, have seen particularly weaker
spending, although demand at clothing retailers has also weakened.
While UK food retailers have largely reported positive like-for-
like sales growth, they have also faced growing pressure from food
price inflation, with some apparent trading-down effects, which
may impact margins going forward," says Richard Morawetz, a
Moody's Vice President-Senior Analyst and author of the report.

Retailers are, however, taking actions to mitigate the impact of
depressed consumer spending on their credit profiles, such as
reducing share buybacks or dividends, as well as restraining non-
core capital expenditures.  "Nevertheless, Moody's believes that
without an eventual pick-up in consumer spending, ratings could
come under further pressure," cautions Mr. Morawetz.

As the Eurozone remains less buoyant than most growth markets for
European retailers, international growth continues to be a key
strategy for some retailers. Moody's views positively the
expansion into higher growth markets, but notes that foreign
expansion can contribute to negative, or minimal, free cash flows,
and can result in greater volatility in earnings.

Moody's currently rates 15 European retailers, seven of which are
based in the UK (the rest are located in Belgium, Croatia, France,
Germany (3), the Netherlands and Russia).


* ECB Alters Eligibility Rules for Fine-Tuning Operations
---------------------------------------------------------
The European Central Bank disclosed last Friday changes to
eligibility rules for its fine tuning operations.

The ECB said that the Governing Council of the European Central
Bank (ECB) has decided that, from Oct. 6, 2008, until further
notice, all institutions that are eligible to participate in
Eurosystem open market operations based on standard tenders and
that fulfill additional operational or other selection criteria
specified by the respective national central bank will also be
eligible to participate in quick tenders, i.e. the tender
procedure normally used for fine-tuning operations.

The ECB added that the national central banks could announce
further details applicable for institutions established in the
respective Member States, where it will appear necessary.


* BOOK REVIEW: Distressed Investment Banking:
               To the Abyss and Back
---------------------------------------------
Authors: Henry F. Owsley and Peter S. Kaufman
Publisher:  Beard Books
Hardcover:  236 pages
List Price: US$59.96

Own your personal copy at
http://amazon.com/exec/obidos/ASIN/1587982676/internetbankrupt

This new book is the definitive work on distressed investment
banking by two widely acknowledged leaders in this field.

Dealing with the restructuring of troubled companies, an insider's
view is provided on the methods and complexities of this
fascinating area of investment banking.

It demystifies what investment bankers really do and conveys
difficult concepts in easily understandable terms.

Particular focus is directed to unconflicted advice to boards of
directors interested in recoveries of shareholders.

Attorneys, accountants, crisis mangers, business students, judges,
and investment bankers--as well as management and directors of
distressed companies--all will find this book of interest.

                            *********

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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