TCREUR_Public/081017.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 17, 2008, Vol. 9, No. 207

                            Headlines

A U S T R I A

JET MARINE: Claims Registration Period Ends October 28
LUCIJA SOKCEVIC: Claims Registration Period Ends October 28
NORBERT LATTNER: Claims Registration Period Ends October 27


E S T O N I A

SUPERSEACAT: Distributes Liquidation Bulletin to Passengers


F R A N C E

ELECTRICITE DE FRANCE: Withdraws Bid for Constellation Energy
PARIS PRIME: S&P Junks Rating on Class D Notes to CCC-
THOMSON SA: Third Quarter Revenue Down by 15%

* FRANCE: Gov't. Package Helps Restore Confidence, Moody's Says


G E R M A N Y

ALPHA 1 HAUSVERTRIEB: Claims Registration Period Ends Oct. 24
AXXIS MARKETING: Claims Registration Period Ends October 24
CAMA FERTIGUNGSTECHNOLOGIE: Claims Registration Ends Oct. 20
CRIVITZ CONSULT: Claims Registration Period Ends October 24
EVENT-ART: Claims Registration Period Ends October 24

FIP PUBLISHING: Creditors' Meeting Slated for October 24
GP VERMOEGENSVERWALTUNGS: Claims Filing Period Ends Oct. 20
IFE PRIVAT-INSTITUT: Creditors Meeting Slated for October 24
KIFFE AMC: Claims Registration Period Ends October 20
TAS GMBH: Claims Registration Period Ends October 23

TS CO.MIT: S&P Downgrades Ratings on Class E and F Notes to B/CCC
VULCAN LIMITED: Fitch Affirms EUR3MM Class G Notes Rating at 'BB'
WOLFGANG BAUER: Creditors Meeting Slated for October 24


H U N G A R Y

* HUNGARY: Forint and Stock Drop Wednesday on Foreign Lending Cuts


I C E L A N D

* S&P Lists Synthetic CDO Tranches Exposed to Icelandic Banks


I T A L Y

ALITALIA SPA: Italy Notifies EU on Administration Procedure
BANCA ITALEASE: Fitch Keeps 'BB' Securities Rating Under RWN
BANCAPULIA SPA: Moody's Retains Stable Outlook on D+ BFSR

* S&P Hikes High Constant Payment Rate Assumption for Italian RMBS


K A Z A K H S T A N

ANT BUILDER: Creditors Must File Claims by November 25
DATA WIZARDS: Claims Deadline Slated for November 25
ENERGO SERVICE: Claims Filing Period Ends November 25
FOSFOHIM+ LLP: Creditors' Claims Due on November 21
KAGANAT-1 LLP: Claims Registration Ends November 25

KOSTANAI-PRESS LLP: Creditors Must File Claims by November 25
KPP-AKTAU LLP: Claims Deadline Slated for November 25
SERVICE-JOLY LLP: Claims Filing Period Ends November 25
SIMAKS LIMITED: Creditors' Claims Due on November 21
SPETS COMPLECT: Claims Registration Ends November 25


K Y R G Y Z S T A N

CITY VISION: Creditors Must File Claims by November 19


L U X E M B O U R G

EVRAZ GROUP: Crude Steel Production Volume Up 32% in 3Q 2008
RUSSIAN FACTORING: S&P Puts BB Rating on RUR200MM Mezzanine Loan


N E T H E R L A N D S

ASTIR BV: Fitch Withdraws Ratings on Lack of Ongoing Information
PANGAEA ABS: Fitch Puts 'BB-'Rated Class F Notes Under Watch Neg.

* Moody's Gives Negative Credit Outlook for Dutch Insurance Sector


P O R T U G A L

* PORTUGAL: Retains 2.2% of GDP Budget Deficit Target for 2009


R U S S I A

EVRAZ GROUP: Crude Steel Production Volume Up 32% in 3Q 2008
GLOBEX: Bars Withdrawals Wednesday Amid Bank Run
KHNATI MANSISK: Rumors on Insolvency Prompt Heavy Withdrawals
NIZHNI NOVGOROD: Account Closures Rise Amid Financial Crunch
PENOIZOL LLC: Creditor Must File Claims by November 3

SIBUR HOLDING: Moody's Confirms Ba2 Corporate Family Rating
TOMSKOE AIRCRAFT: Creditors Must File Claims by November 26
URAL CONSTRUCTION: Creditor Must File Claims by November 3
WEST SIBERIAN: Standard & Poor's Affirms Short-Term Rating at 'C'
YAMAL-NENETS: West Siberian Share Increase Won't Hurt S&P Ratings

YURYUZANSKAYA ENERGY: Creditors Must File Claims by November 3
ZENIT LLC: Creditor Must File Claims by November 3


S P A I N

AYT DEUDA: S&P Slashes Rating on Class C Notes to BB


S W E D E N

SEQUANA CAPITAL: S&P Withdraws B Short-Term Corp. Credit Rating


S W I T Z E R L A N D

BAGGI'S DESKTOP-TEAM: Creditors Must File Claims by Oct. 30
CORMEX LLC: Deadline to File Proofs of Claim Set Oct. 30
EMEAA COMPUTER: Creditors Have Until Oct. 30 to File Claims
LOCHER CONSULTING: Proofs of Claim Filing Deadline is Oct. 30
NOVASEP JSC: Creditors' Proofs of Claim Due by Oct. 30

SASSA LLC: Oct. 30 Set as Deadline to File Claims
SCHIFFSKONSTRUKTIONEN LLC: Deadline to File Claims Set Oct. 29
UBS AG: Takes Measures to De-Risk and Reduce Balance Sheet


T U R K E Y

* TURKEY: Banking System Still Resilient, Moody's Says


U K R A I N E

COMMUNAL SERVICES: Creditors Must File Claims by October 22
GLUKHOV PLANT: Creditors Must File Claims by October 22
INDUSTRIAL BUILDING: Creditors Must File Claims by October 22
KIROVOGRAD REGIONAL: Creditors Must File Claims by October 22
KHLEBODAR LLC: Creditors Must File Claims by October 22

PENEZHKOVOYE LLC: Creditors Must File Claims by October 22
PRIOZERNOYE: Creditors Must File Claims by October 22
REPAIR AND BUILDING: Creditors Must File Claims by October 22
SOBOL LLC: Creditors Must File Claims by October 22
SOKHA LLC: Creditors Must File Claims by October 22

TOOL PRODUCTION: Creditors Must File Claims by October 22
UKRAINIAN BUILDING: Creditors Must File Claims by October 22

* ODESSA: S&P Puts B+ Credit Rating on WatchNeg Over Growing Risks
* UKRAINE: Rising Deficits Cue S&P to Put Low-B Ratings on Watch
* S&P Puts Ratings on 6 Ukrainian Governments Under Negative Watch


U N I T E D   K I N G D O M

AERCO LTD: S&P Drops Rating on Class A-3 Notes to 'BB'
BRITISH AIRWAYS: Drops Fuel Surcharge by Up to GBP13
GREGOR SHORE: Calls in Administrators from Deloitte and Touche
KAUPTHING SINGER: Liquidator In Talks with Potential Buyers
LE FROG BISTRO: Calls in Begbies Traynor as Administrators

LEHMAN BROTHERS: Hedge Funds Await UK Unit's US$65BB Frozen Assets
NORTHERN ROCK: Reports Encouraging Progress Against Plan
OXFORD UNIVERSITY: Losses GBP30 Mil. on Icelandic Banking Crisis
STORM FUNDING: Appoints Joint Administrators from PwC
SWANSONS LTD: Brings in Joint Administrators from Deloitte

TAG ENVIRONMENTAL: Calls in Administrators from Tenon Recovery
TURKEY REALESTATE: Taps Moore Stephens to Administer Assets
VIRGIN MEDIA: Seeks Amendments to Senior Facilities Agreement
VIRGIN MEDIA: Fitch Affirms LT Issuer Default Rating at 'BB-'
VIRGIN MEDIA: S&P's Ratings Unhurt By Proposed Amendment Requests

* S&P Examines Exposure of European CDO Transactions to AIG
* Financial Turmoil Hits UK Retail Sales, BRC-KPMG Monitor Shows
* KPMG Appoints John Griffith-Jones as EMA Region Chairman

* BOOK REVIEW: Distressed Investment Banking:


                         *********


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


JET MARINE: Claims Registration Period Ends October 28
------------------------------------------------------
Creditors owed money by LLC Jet Marine have until Oct. 28, 2008,
to file written proofs of claim to the court-appointed estate
administrator:

         Dr. Gerd Moessler
         St. Veiter Strasse 9
         9020 Klagenfurt
         Austria
         Tel: 0463/507 510
         Fax: 0465/507 510-11
         E-mail: rechtsanwalt@kucher-moessler.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on Nov. 4, 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. 29, 2008, (Bankr. Case No. 40 S 58/08g).


LUCIJA SOKCEVIC: Claims Registration Period Ends October 28
-----------------------------------------------------------
Creditors owed money by KEG Lucija Sokcevic have until Oct. 28,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Stephan Riel
         Landstrasser Hauptstrasse 1/2
         1030 Vienna
         Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 12:15 a.m. on Nov. 11, 2008, for the
examination of claims at:

         The Trade court of Vienna
         Room 1701
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 29, 2008, (Bankr. Case No. 6 S 116/08p).


NORBERT LATTNER: Claims Registration Period Ends October 27
-----------------------------------------------------------
Creditors owed money by LLC Norbert Lattner 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 11:05 a.m. on Nov. 10, 2008, for the
examination of claims at:

         The Land Court of Eisenstadt
         Hall F
         Eisenstadt
         Austria

Headquartered in Eisenstadt, Austria, the Debtor declared
bankruptcy on Sept. 30, 2008, (Bankr. Case No. 26 S 86/08m).


=============
E S T O N I A
=============


SUPERSEACAT: Distributes Liquidation Bulletin to Passengers
-----------------------------------------------------------
SuperSeaCat is going into liquidation according to a bulletin the
company distributed to passengers at the port of Tallinn in
Estonia, Newsroom Finland reports.

The company, previously known as SeaContainers Finland, blames
financing difficulties and intense competition for its decision to
liquidate the business.

In an interview with the Finnish News Agency, Mr. Simo Zitting, of
the Finnish Seamen's Union, estimates around 150 jobs lost from
discontinued operations.

Mr. Peter Walker, SuperSeaCat chief executive, promised customers
that tickets will be refunded, the report added citing Finnish
Daily, Helsingin Sanomat.


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


ELECTRICITE DE FRANCE: Withdraws Bid for Constellation Energy
-------------------------------------------------------------
Electricite de France SA aka EDF said Wednesday it would not make
a competing bid for U.S. power company Constellation Energy Group
Inc. because the credit crisis has made financing more difficult
to obtain, Reuters reports.

MidAmerican Energy, a unit of Warren Buffett's Berkshire Hathaway
Inc., purchased Constellation Energy Group last month for
US$4.7 billion in cash after fears that the U.S. power company
could face liquidity issues sent its shares plummeting.

EDF later disclosed that, along with private equity funds Kohlberg
Kravis Roberts & Co and TPG, it had proposed a US$6.24 billion bid
to Constellation Energy Group, Reuters writes.  That offer
received no response from Constellation Energy Group, which moved
ahead with the MidAmerican bid instead.

EDF, which owns nearly 10% of Constellation Energy Group, had
continued to examine its options for a deal with the U.S. power
company until the economic downturn made the transaction too
difficult, FT says.

Shares of Constellation Energy Group fell US$1.57, or 6.13%, to
close at $24.05 on the New York Stock Exchange Wednesday, the FT
states.

Even if EDF had managed to put together a higher bid for the
company, it would have been tough for it to prevail in buying
Constellation Energy Group, the FT comments.  EDF would also have
to contend with U.S. regulations for ownership of nuclear plants
and a standstill agreement it had signed with Constellation Energy
Group that limits its ability to raise its stake in the company.

Nevertheless, EDF said the United States was still one of its four
target countries for international nuclear development, the FT
notes.

The FT adds that EDF is already acquiring British Energy Group
Plc, owner of the UK reactor's network, for GBP12.5 billion.

                 About Constellation Energy Group

Baltimore, Maryland-based Constellation Energy Group Inc. --
http://www.constellation.com/-- is an energy company that
conducts its business through various subsidiaries, including a
merchant energy business and Baltimore Gas and Electric Company
(BGE).  BGE is a regulated electric transmission and distribution
utility company and a regulated gas distribution utility company
with a service territory that covers the City of Baltimore and all
or part of 10 counties in central Maryland.  The company's
operating segments are Merchant Energy, Regulated Electric and
Regulated Gas.  Its remaining non-regulated businesses design,
construct and operate renewable energy, heating, cooling and
cogeneration facilities.

As reported by the Troubled Company Reporter on Sept. 25, 2008,
MidAmerican Energy Holdings Company and Constellation Energy
reached a tentative agreement in which MidAmerican purchased all
of the outstanding shares of Constellation Energy Group for
US$4.7 billion, or US$26.50 per share.  On Sept. 19, 2008,
Constellation Energy Group said it entered into an agreement and
plan of merger, with MidAmerican Energy Holdings Company, and MEHC
Merger Sub Inc., a Maryland corporation and a wholly owned
subsidiary of MidAmerican.  Under the deal, MidAmerican agreed to
make a US$1 billion investment into Constellation, in exchange for
shares of 8% convertible preferred stock of Constellation Energy
Group.  The stock purchase agreement provides for the
private placement of 10,000 shares of series A convertible
preferred stock of Constellation Energy Group for an aggregate
purchase price of US$1 billion or roughly about 20% stake.

                   About Electricite de France

Headquartered in Paris, France, Electricite de France SA (PA: EDF)
is a France-based integrated energy operator active in the
generation, distribution and transmission of electrical energy.
Although based in France, the company is active globally; it
provides energies and services to 37.8 million customers
throughout the world.  The EDF Group is made up of Electricite de
France SA, the parent company, and a network of over 75 affiliates
and investments established in Europe and around the world.  Over
70% of the Group's energy is generated using nuclear technology;
around 20% is of thermal origin; hydroelectricity and other
renewable energies make up the remaining 10%.  The Group network
carries out energy-related activities focused on the core
businesses of generation, trading, transmission, distribution,
supply and services.


PARIS PRIME: S&P Junks Rating on Class D Notes to CCC-
------------------------------------------------------
Standard & Poor's Ratings Services has lowered to 'CCC-' from
'BBB' and kept on CreditWatch with negative implications its
credit rating on the class D notes issued by Paris Prime
Commercial Real Estate FCC.  All classes of notes in the
transaction remain on CreditWatch negative.

The notes were initially placed on CreditWatch negative on
Sept. 17, following the appointment of an administrator for Lehman
Brothers International (Europe) and the filing for Chapter 11
bankruptcy protection of Lehman Brothers Holdings Inc.  The rating
on the class E notes was subsequently lowered to 'CCC-' on Oct. 8.

S&P has taken the rating action because of its increased concerns
about the recoverability of the interest shortfall that is likely
to occur for the class D notes on the next note interest payment
date (IPD) in October 2008.

Lehman Brothers International (Europe) acts as swap provider at
the issuer level.  The management company (EuroTitrisation S.A.)
terminated the issuer-level swap transactions on Sept. 22, by
sending a notice to Lehman Brothers International (Europe).  S&P
understands that the management company is considering the
implications of this swap termination.

In view of the insolvency proceedings, S&P assumed that the issuer
will not receive any amounts from Lehman on the next IPD.
Consequently, S&P understands that interest is not likely to be
paid in full to the class D noteholders on the upcoming IPD.

S&P notes, however, that the issuer is likely to be able to meet
its interest obligations on the class D notes on the following
IPD (January 2009) and the subsequent IPDs.  It is uncertain
whether the October 2008 interest shortfall will be recovered by
the legal final maturity date of the notes.

S&P is currently investigating the implications for the class A
to C notes and consequently may take further rating actions as
hedging arrangements are implemented.

S&P will continue to liaise closely with the parties involved to
resolve the CreditWatch placements in due course.

Paris Prime Commercial Real Estate FCC

  -- EUR452.15 Million Commercial Mortgage-Backed Floating-Rate
     Notes

Rating Lowered And Kept On CreditWatch Negative:

Class         To                   From
-----         --                   ----
   D           CCC-/Watch Neg       BBB/Watch Neg

Ratings Kept On CreditWatch Negative:

A              AAA/Watch Neg
X1             AAA/Watch Neg
X2             AAA/Watch Neg
B              AA/Watch Neg
C              A/Watch Neg
E              CCC-/Watch Neg


THOMSON SA: Third Quarter Revenue Down by 15%
---------------------------------------------
Thomson SA recorded a 15% decline in third quarter revenues.  From
EUR1.38 billion in the same period in 2007, revenues are down to
EUR1.17 billion for the three months ending Sept. 30, 2008, Jethro
Mullen of Dow Jones Newswires reports.

Mr. Frederic Rose, chief executive, said, "Our businesses must
pursue revenues that are profitable - not revenues for their own
sake - and our cost base will be tailored accordingly."

On Aug. 6, 2008, TCR-Europe reported that Standard & Poor's
Ratings Services lowered Thomson SA's long-term corporate credit
and senior unsecured bank loan ratings to 'B+' from 'BB-'.  At the
same time, the 'B' short-term corporate credit rating was
affirmed.  The outlook remains negative.

On Aug. 4, 2008, TCR-Europe reported that Moody's Investor's
Service downgraded Thomson SA's Corporate Family Rating to B1 from
Ba2 and downgraded the junior subordinated rating for perpetual
junior subordinated bonds to Caa1 from B2 reflecting a LGD 6 loss
given default assessment given the deeply subordinated status of
this instrument.  The outlook has been changed to stable.

Headquartered in Boulogne-Billancourt, France, Thomson SA (NYSE:
TMS, Euronext: TMS) -- http://www.thomson.net/-- provides
solutions for the creation, management, delivery and access of
video, for the Communication, Media and Entertainment
industries.  The has main offices in Indianapolis, Burbank,
Princeton, London, Rennes, Bangalore and Beijing.


* FRANCE: Gov't. Package Helps Restore Confidence, Moody's Says
---------------------------------------------------------------
Moody's Investors Service commented on the statement made by the
French Government regarding a package to restore confidence in the
French financial and banking system.  Moody's views the
announcement as a very positive development, in helping to restore
confidence in the banking system.  Moody's believes that these
actions will support greater stability for ratings of French banks
although the rating agency does not expect wholesale rating
changes in the sector, where ratings of large banks are already
incorporating external support.

The announcement includes the following:

   (i) the creation of a new public body ("Caisse de
       Refinancement des Etablissements de Credits"),
       benefiting from an explicit State guarantee,
       to provide loans to the French banks for up to
       EUR320 billion

  (ii) the provision of EUR40 billion of funds to the
       "Societe de prises de participation de l'Etat"
       to subscribe to Tier 1 subordinated capital,
       preference shares or ordinary shares of banks
       (including the participation recently taken in
       Dexia's capital)

(iii) the confirmation of the guarantee on Dexia's
       interbank and  institutional funding, as agreed
       with the Governments of Belgium and Luxembourg
       on September 30.

All financial institutions headquartered in France and respecting
regulatory ratios are eligible to apply for loans of a maturity of
up to five years, until December 31, 2009.  The loans granted by
the "Caisse de Refinancement des Etablissements de Credits" will
be collateralized by the following assets:

   -- first lien mortgage loans

   -- non-mortgage backed property loans, for properties
      based in France

   -- loans to public sector bodies

   -- high quality corporate loans

   -- consumer loans to French residents

The pricing of the loans will incorporate the refinancing costs of
the "Caisse de Refinancement des Etablissements de Credits" and an
additional spread reflecting the State guarantee.

Also to restore confidence in the system, the Government, through
its "Societes de prises de participation de l'Etat", will be able
to subscribe to subordinated capital or Preference Shares of
banks.  The Government will decide which banks are eligible for
this measure.  In addition, the "Societes de prises de
participation de l'Etat" will also be able to subscribe to
ordinary shares of banks facing difficulties and which failure
could create systemic problems.  Those capital interventions are
not limited in time but will be temporary.

The French plan is in accordance with the coordinated Eurozone
plan announced on October 12.  It has been approved by the French
Cabinet on October 13 and will be submitted to the French
Parliament under an emergency procedure.

While to varying degrees, systemic support already had been
incorporated into our ratings for the larger banks the provision
of liquidity and capital by government actions will result in a
reduction of the pace of negative rating actions.  However, rating
actions (positive or negative) will continue to be influenced by
underlying credit and franchise fundamentals utilizing Moody's
established bank rating methodology and will anticipate franchise
strength following the scaling back of these support programs when
the financial crisis abates.  The exception will be for
obligations of banks for which there is clear substitution of risk
by the government for that of the bank, as in the case of explicit
guarantees.  Here, Moody's will de-link the risk assessment from
the bank and apply the appropriate government rating to the
specific obligations.

                       Moody's Perspective

On October 8, Moody's released a Special Comment 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" and on October Moody's 14 released
another Special Comment on the coordinated European response to
the crisis titled "Actions by European Sovereigns provide
substantial de-risking for large European banks".

Moody's expects the announced plan to provide French banks with
significant capital cushions if needed in a difficult environment.
Moody's also expects that the overall demonstrated support by the
French and European authorities, through capital, loans or
guarantees, will ease the liquidity pressures exerted on banks
through the loss of market confidence.


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


ALPHA 1 HAUSVERTRIEB: Claims Registration Period Ends Oct. 24
-------------------------------------------------------------
Creditors of Alpha 1 Hausvertrieb GmbH have until Oct. 24, 2008,
to register their claims with court-appointed insolvency manager
Ruediger Bauch.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 26, 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 Braunschweig
         E 01
         Martinikirche 8
         38100 Braunschweig
         Germany

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

The insolvency manager can be reached at:

         Ruediger Bauch
         Damm 18
         38100 Braunschweig
         Germany
         Tel: 0531 38848-10
         Fax: 0531 38848-11

The District Court of Braunschweig opened bankruptcy proceedings
against Alpha 1 Hausvertrieb GmbH on Aug. 21, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Alpha 1 Hausvertrieb GmbH
         Brabandtstr. 5
         38100 Braunschweig
         Germany

         Attn: Hans Moser, Manager
         Am Sagisdorfer Park 13
         06116 Halle
         Germany


AXXIS MARKETING: Claims Registration Period Ends October 24
-----------------------------------------------------------
Creditors of Axxis Marketing GmbH have until Oct. 24, 2008, to
register their claims with court-appointed insolvency manager
Stephan Muenzel.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Nov. 24, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Stephan Muenzel
         Bachstrasse 85 a
         22083 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against Axxis Marketing GmbH on Sept. 16, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Axxis Marketing GmbH
         Attn Ahmet Guener, Manager
         Suederstrasse 30
         20097 Hamburg
         Germany


CAMA FERTIGUNGSTECHNOLOGIE: Claims Registration Ends Oct. 20
------------------------------------------------------------
Creditors of CAMA Fertigungstechnologie und Maschinenbau GmbH have
until Oct. 20, 2008, to register their claims with court-appointed
insolvency manager Michael Pfeffer.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 19, 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 Aschaffenburg
         Meeting Hall 5.103
         Schlossplatz 5
         63739 Aschaffenburg
         Germany

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

The insolvency manager can be reached at:

         Michael Pfeffer
         Kapuzinerplatz 1
         63739 Aschaffenburg
         Germany
         Tel: 06021/386710
         Fax: 06021/3867130

The District Court of Aschaffenburg opened bankruptcy proceedings
against CAMA Fertigungstechnologie und Maschinenbau GmbH on Aug.
29, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         CAMA Fertigungstechnologie und Maschinenbau GmbH
         Daimlerring 5
         63839 Kleinwallstadt
         Germany


CRIVITZ CONSULT: Claims Registration Period Ends October 24
-----------------------------------------------------------
Creditors of Crivitz Consult GmbH have until Oct. 24, 2008, to
register their claims with court-appointed insolvency manager
Andreas Franz.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Nov. 24, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Schwerin
         Hall 7
         Demmlerplatz 14
         Germany

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

The insolvency manager can be reached at:

         Andreas Franz
         Steinstrasse 26
         19053 Schwerin
         Germany
         Tel: 0385/714446

The District Court of Schwerin opened bankruptcy proceedings
against Crivitz Consult GmbH on Sept. 9, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Crivitz Consult GmbH
         Attn: Sabine Blatt, Manager
         Parchimer Strasse 64
         19089 Crivitz
         Germany


EVENT-ART: Claims Registration Period Ends October 24
-----------------------------------------------------
Creditors of Event-Art Gastronomiegesellschaft mbH have until
Oct. 24, 2008, to register their claims with court-appointed
insolvency manager Gerhard Brinkmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Dec. 3, 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 Rostock
         Hall 330
         Zochstrasse 13
         18057 Rostock
         Germany

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

The insolvency manager can be reached at:

         Gerhard Brinkmann
         Freiligrathstrasse 1
         18055 Rostock
         Germany

The District Court of Rostock opened bankruptcy proceedings
against Event-Art Gastronomiegesellschaft mbH on Sept. 12, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         Event-Art Gastronomiegesellschaft mbH
         Attn: Remo Herbst, Manager
         Kistenmacherstrasse 17/18
         18055 Rostock
         Germany


FIP PUBLISHING: Creditors' Meeting Slated for October 24
--------------------------------------------------------
The court-appointed insolvency manager for FIP Publishing GmbH,
Dr. Bjoern Gehde will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 9:20 a.m. on
Oct. 24, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 9:20 a.m. on Jan. 30, 2009, at the same venue.

Creditors have until Dec. 4, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Dr. Bjoern Gehde
         Goethestr. 85
         10623 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against FIP Publishing GmbH on Sept. 4, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         FIP Publishing GmbH
         Bleibtreustrasse 38
         10623 Berlin
         Germany


GP VERMOEGENSVERWALTUNGS: Claims Filing Period Ends Oct. 20
-----------------------------------------------------------
Creditors of GP Vermoegensverwaltungsgesellschaft mbH have until
Oct. 20, 2008, to register their claims with court-appointed
insolvency manager Dr. Christian Frystatzki.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Nov. 20, 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 Cologne
         Meeting Hall 1240
         12th Floor
         Luxemburger Str. 101
         50939 Cologne
         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. Christian Frystatzki
         Sankt Augustiner Str. 94 a
         53225 Bonn
         Germany

The District Court of Cologne opened bankruptcy proceedings
against  GP Vermoegensverwaltungsgesellschaft mbH on Aug. 27,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         GP Vermoegensverwaltungsgesellschaft mbH
         Adenauerallee 50-52
         53113 Bonn
         Germany

         Attn: Erwin Heuser-Hahn, Manager
         Markgrafenstr. 33
         53639 Koenigswinter
         Germany


IFE PRIVAT-INSTITUT: Creditors Meeting Slated for October 24
------------------------------------------------------------
The court-appointed insolvency manager for IfE Privat-Institut
fuer Entsorgungswirtschaft und Recycling GmbH, Christian Koehler-
Ma, will present his first report on the Company's insolvency
proceedings at a creditors' meeting at 11:15 a.m. on Oct. 24,
2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 10:30 a.m. on Jan. 23, 2009, at the same
venue.

Creditors have until Nov. 24, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Christian Koehler-Ma
         Kurfuerstendamm 26 a
         10719 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against IfE Privat-Institut fuer Entsorgungswirtschaft und
Recycling GmbH on July 31, 2008. Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         IfE Privat-Institut fuer
         Entsorgungswirtschaft und Recycling GmbH
         Koenigsallee 10
         14193 Berlin
         Germany


KIFFE AMC: Claims Registration Period Ends October 20
-----------------------------------------------------
Creditors of KIFFE AMC GmbH have until Oct. 20, 2008, to register
their claims with court-appointed insolvency manager Michael
Moenig.

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

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Hall 101 B
         First Floor
         Gerichtsstr. 2-6
         48149 Muenster
         Germany

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

The insolvency manager can be reached at:

         Michael Moenig
         Von-Steuben-Strasse 18
         48143 Muenster
         Germany
         Tel: 0251/38484-333
         Fax: +4925138484300

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

The Debtor can be reached at:

         KIFFE AMC GmbH
         Albersloher Weg 54
         48155 Muenster
         Germany

         Attn: Dr. Hans-Burchard Turner
               and Elke Turner-Kiffe, Managers
         Admiral-Scheer-Str. 14
         48145 Muenster
         Germany


TAS GMBH: Claims Registration Period Ends October 23
----------------------------------------------------
Creditors of Tas GmbH have until Oct. 23, 2008, to register their
claims with court-appointed insolvency manager Dr. Juergen M.
Thiel.

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

The meeting of creditors will be held at:

         The District Court of 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:

         Dr. Juergen M. Thiel
         Markt 8
         32423 Minden
         Germany

The District Court of Bielefeld opened bankruptcy proceedings
against Tas GmbH on Sept. 3, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         Tas GmbH
         Gellertstr. 11
         32584 Loehne
         Germany


TS CO.MIT: S&P Downgrades Ratings on Class E and F Notes to B/CCC
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on the
class E and F notes issued by TS Co.mit One GmbH, a German SME
collateralized loan obligation transaction.  The rating on the
class F notes has been removed from CreditWatch with negative
implications and the class E notes remain on CreditWatch negative.
At the same time, the ratings on the class A to D notes were
affirmed.

The class E and F notes were placed on CreditWatch negative on
July 10, 2008.

The rating actions follow S&P's full credit and cash flow analysis
of the underlying portfolio of certificates of indebtedness
(Schuldscheine) issued by German small and midsize enterprises
(SMEs).  This analysis relies on an updated mapping of Commerzbank
AG's internal ratings for SME assets.  The mapping was used to
assess the most recent internal rating assigned to each obligor in
the portfolio and derive an updated rating estimate from it.

Note that the mapping update included the identification and
correction of an earlier mapping error S&P made.  Although the
correction led to a more conservative mapping, S&P confirms that
the error has had no impact on the initial ratings in this
transaction.

At closing, the portfolio contained 396 certificates of
indebtedness relating to 372 obligors.  Following amortization,
defaults, and the removal of certain certificates due to
ineligibility, the total number of certificates reduced to 288 as
of Sept. 20, 2008.  Of these 288 certificates, 14 are
Schuldscheine that have already triggered a principal deficiency
event in the transaction.

The underlying portfolio in TS Co.mit One has demonstrated weak
performance since 2006.  Cumulative defaults total more than 5%
(2.9% after the removal of ineligible certificates) of the initial
pool balance and the overall credit quality of the portfolio has
deteriorated.  According to Commerzbank's internal rating model,
at closing the weighted-average portfolio rating was 3.0; it is
currently 3.6.

Cumulative defaults grossed up to EUR25.3 million (EUR14.6 million
after the removal of ineligible certificates) and were caused by
the default of 21 certificates of indebtedness (15 after the
removal of ineligible certificates).  The entire exposure was
credited to the transaction's principal deficiency ledger (PDL)
and has gradually been cleared through excess spread and
recoveries.

On the most recent payment date, the PDL was zero.  At the same
time, however, the reserve was fully depleted and also currently
stands at zero.  In its projections, S&P does not expect the
reserve to build to its required level over the remaining life of
the transaction.

S&P's credit and cash flow analysis has shown that the class F
notes are facing the apparent risk of not being fully repaid.
Furthermore, S&P remains cautious with regard to the class E notes
on the expectations of further portfolio deterioration.

The senior notes in the transaction are well protected following
the substantial de-leverage of the structure and the decrease of
the weighted-average life (WAL) of the portfolio.  The WAL of the
pool was 1.45 years on the last payment date.

TS Co.mit One GmbH

  -- EUR503 Million Floating-Rate Asset-Backed Notes

Ratings Lowered And Remaining On CreditWatch Negative:

Class        To                From
-----        --                ----
   E          B/Watch Neg       BB/Watch Neg


Rating Lowered And Removed From CreditWatch Negative:

Class        To                From
-----        --                ----
   F          CCC               B/Watch Neg


Ratings Affirmed:

A           AAA                 AAA
B           AA                  AA
C           A                   A
D           BBB                 BBB


VULCAN LIMITED: Fitch Affirms EUR3MM Class G Notes Rating at 'BB'
-----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Vulcan (European Loan
Conduit No. 28) Limited's class E, class F and class G commercial
mortgage-backed notes to Negative from Stable and affirmed the
outstanding ratings.  The ratings are:

  -- EUR784.8 million XS0314738963 Class A due May 2017:
     affirmed at 'AAA'; Outlook Stable

  -- EUR0.1 million XS0314739342 Class X due May 2017:
     affirmed at 'AAA'; Outlook Stable

  -- EUR20.9 million XS0314739938 Class B due May 2017:
     affirmed at 'AAA'; Outlook Stable

  -- EUR73.6 million XS0314740431 Class C due May 2017:
     affirmed at 'AA'; Outlook Stable

  -- EUR75.3 million XS0314740944 Class D due May 2017:
     affirmed at 'A'; Outlook Stable

  -- EUR38 million XS0314741595 Class E due May 2017:
     affirmed at 'BBB'; Outlook revised to Negative from Stable

  -- EUR3 million XS0314742056 Class F due May 2017:
     affirmed at 'BBB-'; Outlook revised to Negative from Stable

  -- EUR3 million XS0314742213 Class G due May 2017:
     affirmed at 'BB'; Outlook revised to Negative from Stable

The principal reason for the revision of Outlook is the
underperformance of the largest loan in the pool, the Tishman
German Office loan (35.2% of the current balance).  This is due to
an increase in vacancy level to 29% by floor area (from 20% at
closing), combined with an increase in non-recoverables by nearly
50%.  This had led to a fall in the securitized interest coverage
ratio to 1.03x (1.5x at closing) and of 0.71x on the whole loan
ICR (1x at closing), implying a shortfall in interest payment on
the whole loan.

This shortfall had initially been funded through a EUR3.5m
interest reserve the sponsor had put in place, which at this stage
has been used up.  The sponsor has committed to an additional
reserve guarantee of EUR4.5 million.  This would at the current
conditions be sufficient for another year of interest coverage.

Although Tishman Speyer has so far re-let around 16,000 sqm of
vacant space this year, Fitch is concerned that if no additional
re-letting is achieved, the increase in non-recoverables is likely
to be of permanent nature.  Fitch is also concerned that once the
guarantee has been used up, Tishman Speyer could decide to not
further support this loan.

In addition, even though ring-fenced a potential default of
Tishman Speyer could have implications on the underlying fund
holding this loan.

Two additional loans are currently on the servicer's watchlist due
to an ICR dividend trap breach.  PFF France's (11.6% of the
portfolio) ICR has dropped to 1.23x (1.7x at closing); however,
this is due to a rent free period granted to the largest tenant,
Ministre de la Justice (30% by total passing rent), in exchange
for extending its lease, bringing the 12 months projected ICR to
2.03x.  On Inovalis Eboue the whole loan ICR is at 1.06 (1.34x at
senior level) which is due to a fall in net revenue as well as an
increase in the expenses.  On the positive side, vacancy has
slightly decreased, a new lease has been signed and two other
tenants are going to renew their leases although they are still in
dispute over the determination of rent level.

Overall, the transaction coverage levels are broadly stable, with
ICR at 1.71x (1.7x at closing) and debt service coverage ratio at
1.62x (1.7x).  Fitch will continue to monitor the performance of
the transaction.


WOLFGANG BAUER: Creditors Meeting Slated for October 24
-------------------------------------------------------
The court-appointed insolvency manager for Wolfgang Bauer GmbH,
Dr. Petra Hilgers, will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 10:50 a.m. on
Oct. 24, 2008.

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

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

The Court will also verify the claims set out in the insolvency
manager's report at 10:15 a.m. on Jan. 28, 2009, at the same
venue.

Creditors have until Nov. 24, 2008, to register their claims with
the court-appointed insolvency manager.

The insolvency manager can be reached at:

         Dr. Petra Hilgers
         Goethestr. 85
         10623 Berlin
         Germany

The District Court of Charlottenburg opened bankruptcy proceedings
against Wolfgang Bauer GmbH on Aug. 25, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Wolfgang Bauer GmbH
         Nunsdorfer Ring 25 - 27
         12277 Berlin
         Germany


=============
H U N G A R Y
=============


* HUNGARY: Forint and Stock Drop Wednesday on Foreign Lending Cuts
------------------------------------------------------------------
Hungary plunged into financial uncertainty Wednesday, October 15,
with its currency and stock market falling sharply and bankers
reporting credit shortages, as concern spread across eastern
Europe about the impact of the global financial crisis, The
Financial Times reports.

In Budapest, the forint fell 5.3% to HUF266.09 to the euro and the
BUX index of leading stocks closed down 11.9%, dragged down by a
15% fall of shares in OTP, the biggest bank, the FT relates.
Currencies and stock markets also fell in Poland, the Czech
Republic, Romania and Ukraine.

According to the FT, the Hungarian turmoil followed moves by
leading Budapest banks to stop or curtail foreign currency
lending, the dominant form of credit in Hungary in recent years.

As cited by the FT, Gyorgy Barcza, chief treasury economist at K&H
Bank, part of Belgium's KBC group, said: "If there is no foreign
currency lending in Hungary, it will mean the capital inflow will
be smaller.  Currently that capital inflow amounts to about
EUR3 billion to EUR4 billion a year, which is close to the current
account gap."

Hungarian officials, FT writes, indicated that they were working
on a package to support the markets with the help of the
International Monetary Fund.   But the central bank declined to
give details.


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


* S&P Lists Synthetic CDO Tranches Exposed to Icelandic Banks
-------------------------------------------------------------
Standard & Poor's Ratings Services said that a substantial number
of global synthetic collateralized debt obligation (CDO)
transactions have exposure to one or more of three Icelandic banks
-- Glitnir Bank, Landsbanki Islands, and Kaupthing Bank -- that
Iceland's banking supervisor has placed into receivership.  S&P
lowered the long-term counterparty credit rating on Glitnir Bank
to 'D' on Oct. 9, 2008.

S&P believes the impact of these exposures is likely to be
significant for transactions that reference these and other
obligors, such as Lehman Bros. and Washington Mutual, that have
recently experienced credit events.

Synthetic CDO Exposure

               Glitnir   Landsbanki   Kaupthing   Two of    All
(No.)         only      only         only        three     three
-----         ----      ----         ----        -----     -----
U.S.
  Transactions   7         10           79          128       87
  Tranches       12        14           108         174       162

Europe
  Transactions   14        31           96          114       214
  Tranches       16        32           125         126       263

Asia-Pacific (excl. Japan)
  Transactions   3         4            7           32        49
  Tranches       3         4            7           32        59

Japan
  Transactions   0         3            23          23        26
  Tranches       0         4            26          26        39


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


ALITALIA SPA: Italy Notifies EU on Administration Procedure
-----------------------------------------------------------
The Italian Government has notified the European Commission of an
extraordinary administration procedure for Alitalia SpA, including
a sale of the company's assets, an October 14 article posted on
World Aeronautical Press Agency's site said.

According to the article, the notification was made to obtain
legal certainty, in conformity with the principle of loyal
cooperation that has constantly guided relations between Italy and
the European Commission in the context of the Alitalia case.

The European Commission, the article said, will assess the content
of the  notification in accordance with the normal procedures in
order to verify its compatibility with community rules in matter
of state aid.

A TCR-Europe report on Oct. 6, 2008, said low fare airline Ryanair
submitted a formal complaint to the EU Commission regarding the
latest bailout of Alitalia.  Ryanair said it has previously
submitted several complaints against Alitalia and other flag
carrier airlines, including Olympic, Air France and Lufthansa,
against which the EU Commission has taken no action.  Ryanair
highlighted that this ongoing unlawful protection of flag carriers
by their member state governments, which amounts to billions of
euro, increasingly makes a mockery of the EU Commission's
enforcement of the state aid rules.

The EU Commission meanwhile said the complaint from Ryanair will
be addressed in the same meticulous way as any other it receives,
The Associated Press reported.

                          Tie-Up Talks

Agence France-Presse says Italian news agencies reported Wednesday
that the managing director of British Airways reiterated his
company's interest in a partnership with Alitalia.

The reports cited by AFP said Willie Walsh of British Airways met
with Roco Sabelli, the administrator of Compagnia Aerea Italiana
s.r.l., a consortium of Italian investors created to save the
Italian carrier.

According to AFP, CAI representatives would meet next week with
counterparts from Air France-KLM and the following week with those
from German carrier Lufthansa, afterwhich, they will hold further
discussions with British Airways.

                     Delayed Newco Launching

As reported in the Troubled Company Reporter-Europe on Oct. 14,
2008, CAI extended the deadline on its conditional offer to
relaunch the national carrier until Oct. 31, 2008.  CAI had
originally given a deadline of October 15 but extended it to give
time for CAI to complete due diligence work.

A shareholder meeting has been set for October 28 to among others
change the company's charter.

As reported in the Troubled Company Reporter-Europe on Sept. 30,
2008, CAI is considering launching the new Alitalia by November 1.
CAI revived its bid for Alitalia after it reached agreement with
all the nine Alitalia unions.  CAI's rescue plan calls for
renaming of Alitalia and writing off between EUR1.2 billion and
EUR2 billion worth of its debt.

On Sept. 22, 2008, the TCR-Europe reported that CAI withdrew its
bid to buy Alitalia's healthier assets after failing to win the
support of labor unions.  After CAI's withdrawal, Alitalia
proceeded with its fourth public request for offers to buy any or
all parts of the company's assets until Sept. 30, 2008.

As reported in the TCR-Europe on Oct. 2, 2008, Alitalia
Extraordinary Commissioner Augusto Fantozzi said he received
several expressions of interest for Alitalia within the terms of
the deadline on Sept. 30, 2008.  However, only CAI's proposal is
directly concerned with the overall activities of air transport.
Other expressions of interest meanwhile concerned specific
branches or activities of the various companies making up the
Alitalia Group.

                         About Alitalia

Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina.  The
Italian government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.

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


BANCA ITALEASE: Fitch Keeps 'BB' Securities Rating Under RWN
------------------------------------------------------------
Fitch Ratings is keeping Banca Italease's Long-term Issuer Default
rating of 'BBB-', Short-term IDR of 'F3' and Support rating of '2'
on Rating Watch Negative, where they were placed on 5 March 2008.
The Individual rating is affirmed at 'D/E'.  The Long-term 'BB'
rating of the bank's EUR150 million trust preferred securities
also remains on RWN.

On October 11, 2008, Italease announced that it has agreed to
establish a 40:60 joint venture with German leasing company, VR-
LEASING AG (VRL; rated 'A'/Stable; see separate comment published
today) to take over Italease's leasing assets of about EUR8
billion and receivables from factoring transactions of about EUR2
billion (based on end-March 2008 volumes), as well as debt for
about EUR9.7 billion.

Italease's main shareholders, Banco Popolare ('A'/Stable), Banca
Popolare dell'Emilia Romagna ('A-'/Stable), Banca Popolare di
Sondrio ('A'/Stable) and insurer, Reale Mutua di Assicurazione
(IFS 'A-'/Stable), announced that they would renew the
shareholders' pact for a further 28 months from its original
expiry in February 2009.  At the same time, Banca Popolare di
Milano ('A'/Stable) announced that it would withdraw from the pact
in February 2009.

Fitch expects to resolve the RWN once details on the future
strategy of the bank have been made available.  In resolving the
watch, the agency will evaluate the strategic importance of the
businesses remaining in Italease for the shareholders and their
potential profitability, Italease's capitalization, as well as the
shareholders' ongoing commitment to the bank.

Italease will announce a new strategic plan for the businesses
that remain in the bank following the spin-off of the joint
venture by the time it announces its financial results for FY08 in
March 2009, but some indications of the future strategy are
expected by December 2008.  The business that remains in Italease
will mainly consist of leasing contracts distributed through the
bank's network of agents and intermediaries and of medium-term
loans as the assets generated directly by Italease and through the
shareholder banks' branch networks will be transferred to the
joint venture.

The announcement of the renewal of the shareholders' pact, with a
longer three-year duration, in Fitch's opinion confirms the
shareholders' commitment to Italease as the members have stated
that they would not reduce funding lines for Italease from their
current level.  However, the exit of Banca Popolare di Milano from
the pact and the reduction of Reale Mutua di Assicurazione's stake
transferred to the pact will result in the pact controlling 32.78%
of Italease's shares, compared to the current 36.96%.

The transaction is subject to regulatory approval and several
other conditions, including the approval of capital measures at
VRL, the agreement of a funding plan and of a shareholders'
agreement between Italease and VRL, by mid-December 2008, and the
transaction is expected to be completed by H109.


BANCAPULIA SPA: Moody's Retains Stable Outlook on D+ BFSR
---------------------------------------------------------
Moody's Investors Service changed to negative from stable the
outlook for the Baa2 and Prime-2 long- and short-term deposit
ratings of BancApulia.  The outlook for the bank's D+ Bank
Financial Strength Rating (BFSR) remains stable.  The bank's D+
BFSR currently maps to a Baseline Credit Assessment (BCA) of Baa3.
Moody's said that the negative outlook on the deposit ratings
reflects the possibility that the challenges faced by the bank, in
the current difficult economic and market conditions could lead to
the bank becoming more weakly positioned in the D+ BFSR category,
resulting in a lowering of the bank's BCA to Ba1.  Given the
moderate expectation of systemic support for the bank, this would
lead to a one-notch downgrade of the bank's deposit ratings.

According to Moody's this change in the outlook to negative takes
into account the bank's modest and weakening financial
fundamentals, including its profitability and efficiency
indicators in particular, and high reliance on market funding,
which, in the current difficult economic and market conditions may
come under increasing pressure in the coming months.

BancApulia has made significant use of securitization as a means
of supporting strong loan growth in recent years.  This market is
effectively closed at present with ongoing securitization being
used to provide assets eligible for repo at the European Central
Bank.  Other forms of market funding are also clearly more
expensive and Moody's said that it believes that the bank's
business model, relying on wholesale funding may prove difficult
to sustain going forward.  This is also mirrored in the
significant slowdown of the new lending volumes projected for this
year.

BancApulia's capital ratios have been declining in recent years as
a result of rapid volume growth in the bank's loan portfolio. The
bank plans to increase its capital by EUR20 million this year, and
by EUR10 million in each of the subsequent two years.  At June 30,
2008, the Tier 1 ratio of the bank was at about 7% under Basel II
(estimated at 5.7% under Basel I) and it is expected to reach the
7.8% under Basel II at year-end following the recapitalization.
Moody's said that it views achievement of the bank's plans to
strengthen its capital as important steps in maintaining a
sufficient capital cushion relative to the challenges and risks
faced by the bank.

Headquartered in San Severo, Italy, BancApulia reported total
assets of EUR 4.49 billion at June 30, 2008.


* S&P Hikes High Constant Payment Rate Assumption for Italian RMBS
------------------------------------------------------------------
Standard & Poor's Ratings Services has increased its high constant
payment rate (CPR) assumption for Italian residential mortgage-
backed securities (RMBS) transactions to 24% from 20%.  The
revision of this rating assumption follows the substantial
increase in prepayment levels seen over the past year.

According to S&P's latest Italian RMBS index report ("Italian RMBS
Index Report Q2 2008—Issuance Volumes Pick Up, While Performance
Weakens Slightly," published on Aug. 13, 2008), the average
prepayment rate in the Italian RMBS market was 10.8% in the second
quarter of 2008.  At the beginning of 2007, the average prepayment
rate was only slightly above 6%.

In reviewing its high CPR assumptions, S&P has assessed the effect
of the new stress test on the ratings of existing transactions.
S&P's analysis showed that the updated stress does not materially
affect its assessment of these transactions and as a result it
does not result, per se, in any rating actions being taken.


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


ANT BUILDER: Creditors Must File Claims by November 25
------------------------------------------------------
LLP Ant Builder Company has declared liquidation.  Creditors have
until Nov. 25, 2008, to submit written proofs of claims to:

         LLP Ant Builder Company
         Eset Batyr Str. 67a-32
         Aktobe
         Aktube
         Kazakhstan


DATA WIZARDS: Claims Deadline Slated for November 25
----------------------------------------------------
LLP Data Wizards has declared liquidation.  Creditors have until
Nov. 25, 2008, to submit written proofs of claims to:


         LLP Data Wizards
         Kunaev Str. 106-10
         Almaty
         Kazakhstan


ENERGO SERVICE: Claims Filing Period Ends November 25
-----------------------------------------------------
LLP Energo Service & K has declared liquidation.  Creditors have
until Nov. 25, 2008, to submit written proofs of claims to:

         LLP Energo Service & K
         Moskovskaya Str. 3
         Saran
         Karaganda
         Kazakhstan

FOSFOHIM+ LLP: Creditors' Claims Due on November 21
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Fosfohim+ insolvent.

Creditors have until Nov. 21, 2008, to submit written proofs of
claims to:

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


KAGANAT-1 LLP: Claims Registration Ends November 25
---------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared LLP Kaganat-1 insolvent.

Creditors have until Nov. 25, 2008, to submit written proofs of
claims to:
         The Specialized Inter-Regional
         Economic Court of Jambyl
         Suleimenov Str. 17
         Taraz
         Jambyl
         Kazakhstan


KOSTANAI-PRESS LLP: Creditors Must File Claims by November 25
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Service-Joly insolvent.

Creditors have until Nov. 25, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Maulenov Str. 21
         Kostanai
         Kazakhstan


KPP-AKTAU LLP: Claims Deadline Slated for November 25
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Mangistau has
declared LLP KPP-Aktau insolvent.

Creditors have until Nov. 25, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Mangistau
         Micro District 28, 25-12
         Aktau
         Mangistau
         Kazakhstan
         Tel: 8 (7292) 40-03-12
              8 701 416 22-23


SERVICE-JOLY LLP: Claims Filing Period Ends November 25
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Service-Joly insolvent.

Creditors have until Nov. 25, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Maulenov Str. 21
         Kostanai
         Kazakhstan


SIMAKS LIMITED: Creditors' Claims Due on November 21
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Simaks Limited insolvent.

Creditors have until Nov. 21, 2008, to submit written proofs of
claims to:

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


SPETS COMPLECT: Claims Registration Ends November 25
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Spets Complect Postavka insolvent.

Creditors have until Nov. 25, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Karaganda
         Mametov Str. 131-21
         Karaganda
         Kazakhstan


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


CITY VISION: Creditors Must File Claims by November 19
------------------------------------------------------
LLC City Vision Bishkek has shut down.  Creditors have until Nov.
19, 2008, to submit written proofs of claim.

Inquiries can be addressed to (+996 312) 66-75-22.


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


EVRAZ GROUP: Crude Steel Production Volume Up 32% in 3Q 2008
------------------------------------------------------------
The Evraz Group S.A. released its third quarter operational
results.

Product           3Q 2008  3Q 2007  3Q 2008/  2Q 2008  3Q 2008/
'000 tonnes unless                  3Q 2007,           2Q 2008
otherwise stated                    change**           change**
---------------   -------  -------  --------  -------  --------
Steel division

Coke (saleable)   438      602      (27.2)%   651      (32.7)%
Pig iron          3,621    2,761     31.1%    3,628    (0.2)%
Pig iron
(saleable)       239      230       3.8%     275      (13.3)%
Crude steel       4,886    3,695     32.2%    4,743     3.0%
Rolled products,
net of rerolled
volumes           4,491    3,460     29.8%    4,324     3,9%
Semi-finished
products         1,184    620       91.0%    993      19.2%
Construction
products         1,318    1,349     (2.4)%   1,604    (17.9)%
Railway
products         688      563       22.3%    622      10.7%
Flat-rolled
products         889      594       49.2%    759      17.1%
Tubular
products         254      124       104.0%   138      83.6%
Other steel
products         159      207       (23.1)%  207      (23.0)%

Mining division

Iron ore
(saleable products)
Lumping ore     612      n/a       n/a      792      (22.7)%
Concentrate      1,087    923       17.7%    867       25.3%
Sinter           1,979    1,914     3.4%     1,899     4.2%
Pellets          1,363    1,439    (5.3)%    1,520    (10.4)%
Coal
Coking coal
(mined)         2,176    1,352     60.9%    2,367     (8.1)%
Steam coal
(mined)         1,003    1,319     (23.9)%  676       48.4%
Concentrate
(production)    888      784       13.4%    1,075     (17.3)%
Steam
concentrate
(production)     195      0         n/a      131       48.2%

Vanadium (tonnes of V)3

Vanadium in slag
(saleable)       3,016    2,919     3.3%     2,814     7.2%
Vanadium in
alloys and
chemicals        3,734    3,535     5.6%     4,239    (11.9)%

Equity investments

Raspadskaya6
Coking coal
(mined)         2,939    3,684     (20.2)%  2,172    35.3%


    * All information on production volumes of the enterprises
      presented in the press release concerns only the period of
      their operation within Evraz Group.  The total volume of
      rolled steel products excludes those re-rolled at other
      Group's plants.  These volumes are eliminated as
      intercompany sales for purposes of Evraz's consolidated
      operating results.

  ** Percentage changes may not be exact due to rounding.

   1 Operational results of the Ukrainian assets –
     Dnepropetrovsk Steel Works and coke chemical plants -
     are consolidated into the Group since Dec. 12, 2007.

   2 Operational results of Claymont Steel are consolidated into
     the Group since January 2008.  Operational results of IPSCO
     Canada are consolidated into the Group since June 12, 2008.

   3 Calculated in pure vanadium equivalent.

   4 Operational results of Nikom, a.s.,. are consolidated into
     the Group since Dec. 20, 2007.

   5 The disposal of the Vanchem operations was implemented with
     effect from Aug. 29, 2008.

   6 Evraz Group holds a 40% effective interest in OAO
     Raspadskaya.

                        About Evraz

Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) --
http://www.evraz.com/-- manufactures and distributes steel and
related products.  In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in the Sverdlovsk
region and two mills in the Kemerovo region.

                         *     *     *

Evraz Group S.A. continues to carry a Ba2 corporate family rating,
a Ba2 rating for Senior Notes due 2009 and a Ba3 rating for Senior
Notes due 2015 from Moody's Investors Service, which placed them
on review in March 2008 for possible downgrade.

The company also carries BB- long-term corporate credit and
senior unsecured debt ratings from Standard & Poor's Ratings
Services, with positive outlook.  The ratings were affirmed in
March 2008.

Evraz carries BB long-term Issuer Default and senior unsecured
ratings and B Short-term Issuer Default rating from Fitch
Ratings, with stable outlook.  The ratings were affirmed in
March 2008.


RUSSIAN FACTORING: S&P Puts BB Rating on RUR200MM Mezzanine Loan
----------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its credit ratings
to the RUR3.125 billion notes and RUR200 million mezzanine loan
issued by Russian Factoring No. 2 S.A., a special-purpose entity
based in Luxembourg.

The notes and the mezzanine loan are backed by factoring
receivables originated by CJSC "Eurokommerz FC", a factoring
company based in Russia.

This is the third factoring receivables transaction in Russia that
S&P has publicly rated, and the second factoring receivables
transaction originated by Eurokommerz.  This transaction provides
adequate structural features to mitigate loss, commingling, and
fraud risks.

Due to the revolving nature of the collateral which comprises
short-term maturing factoring contracts, the transaction benefits
from dynamic credit enhancement.  This means overcollateralization
increases if portfolio losses increase.  The dynamic enhancement
is calculated on the basis of S&P's trade receivables model.
Daily and monthly performance-related triggers offer additional
protection to the transaction.

As a notable structural component, the transaction uses LLC
"Eurokommerz Cash Manager" as the collection agent, to collect the
repayments from the debtors and customers.  The collection agent
is used to avoid the issuer's receipts being commingled with the
originator's money and with the collection account bank's estate.
The collection agent was established to act as such in the first
securitization transaction originated by Eurokommerz (Russian
Factoring No. 1 S.A.).  To spread the collection agent's functions
onto the current transaction, the issue joined the collection
agency agreement by accession.

Russian Factoring No. 2 S.A.

  -- RUR3.325 Billion Senior And Mezzanine Notes

Class             Rating      Amount (RUR)
-----             -----       ------------
Senior notes       BBB        3,125 Million
Mezzanine loan     BB         200 Million


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


ASTIR BV: Fitch Withdraws Ratings on Lack of Ongoing Information
----------------------------------------------------------------
Fitch Ratings has withdrawn the ratings on Astir B.V.'s Series 14
EUR250 million Class A1 (ISIN: XS0238951536) and Series 15 EUR10
million Class A2 (ISIN: XS0238952187) notes (also known as Regatta
CDO).

As a result of a recent noteholder resolution, Fitch has been
informed that it will no longer receive on going portfolio
information.  As a result, Fitch has decided to withdraw the
ratings due to lack of ongoing information.

Both notes were downgraded to 'BB' from 'BBB-' and assigned
Negative Outlook on October 13, 2008.


PANGAEA ABS: Fitch Puts 'BB-'Rated Class F Notes Under Watch Neg.
----------------------------------------------------------------
Fitch Ratings has placed Pangaea ABS 2007-1 B.V. notes due 2096 on
Rating Watch Negative, as:

  -- EUR216,758,733 Class A floating-rate notes
     (ISIN XS0287257280): 'AAA' on RWN

  -- EUR16 million Class B floating-rate notes
    (ISIN XS0287266356): 'AAA' on RWN

  -- EUR18 million Class C floating-rate notes
    (ISIN XS0287267677): 'AA' on RWN

  -- EUR22 million Class D floating-rate notes
    (ISIN XS0287268642): 'A' on RWN

  -- EUR16 million Class E floating-rate notes
    (ISIN XS0287271604): 'BBB-' on RWN

  -- EUR5 million Class F floating-rate notes
    (ISIN XS0287272164): 'BB-' on RWN

  -- EUR4,466,525 Class S1 combination notes
    (ISIN XS0289328394): 'A' on RWN

Pangaea is a securitization of mainly European structured finance
securities with the total note issuance of EUR309.2 million
invested in a EUR287 million portfolio.

This action is due to portfolio performance deterioration
primarily driven by the default of Lehman Brothers Holdings Inc.
Fitch notes that five issuers forming 4.8% or EUR14.2 million of
the portfolio are currently in default.  These five issuers are
all credit- linked notes issued with counterparty exposure to
Lehman Brothers Holdings Inc which is in bankruptcy.  Due to the
defaults, Classes E and F are currently under-collateralized and
as such the over-collateralization tests are 99.4% and 97.7%
respectively as of the last trustee report.

Although the RWN is primarily driven by the default of the five
CLNs, Fitch notes that 5.3% of the portfolio is currently on RWN,
suggesting future negative portfolio migration is likely.

As of October 2008, the EUR287 million portfolio contained
structured finance securities from 86 issuers, with the largest
exposure accounting for 2.4% of the outstanding portfolio amount,
and the three largest obligors counting for 7.3% of the
outstanding portfolio amount.  The weighted average portfolio
quality is 'BBB-' and the weighted average life of the portfolio
is approximately 5.6 years.  The underlying securities consist
primarily of RMBS (26.1%), CMBS (36.4%), CDOs (20.4%) and SME CDOs
(8.8%).  The portfolio is actively managed by Investec Principal
Finance, a business unit division of Investec Bank (UK) Ltd.

As announced in Fitch's Rating Action Commentary titled "Fitch
Proposes Fully Updated Approach For SF CDOs; Places Transactions
Under Analysis," published on its Web site on October 14, 2008,
Fitch has announced proposals to change its rating methodology for
structured finance CDOs.  Fitch is reassessing its analytic views
which could also impact existing ratings, including the ratings
assigned to the securities referred to in this announcement.

Resolution of the current Rating Watch Negative status will
consider all updated criteria assumptions once published, as well
as any additional credit migration with respect to the underlying
portfolio, or any credit risk sales undertaken by the asset
manager.

The notional amount for Class F excludes deferred interest which
is currently EUR122,660 which results in a total principal amount
outstanding of EUR5,122,660.  The notional amount of Class S1
combination note refers to the outstanding rated balance.  This
takes into account all previous payments that have been used to
reduce the note balance, in accordance with the terms and
conditions of the notes.


* Moody's Gives Negative Credit Outlook for Dutch Insurance Sector
------------------------------------------------------------------
The fundamental credit outlook for the Dutch insurance industry is
negative, reflecting the absence of growth opportunities in the
non-life segment, uncertainties surrounding the health segment and
the negative prospects for the life insurance market, Moody's
Investors Service says in a new Industry Outlook.  The outlook
also reflects the pressures on profitability in all the segments
of the industry.

Moody's negative outlook for the Dutch insurance industry
expresses the rating agency's view on the likely future direction
of fundamental credit conditions in the industry over the next 12
to 18 months.  It does not represent a projection of rating
upgrades versus downgrades.

"The Dutch life insurance market has been hit by a controversy
relating to unit-linked contracts, including an investigation by
the financial services ombudsman revealing some evidence of a lack
of transparency in the cost structure of these contracts.  It is
now clear that insurers will be obliged to indemnify
policyholders, but the costs for the industry remain uncertain.
However, more important than the financial impact, Moody's
believes this situation will depress sales of retail insurance
savings products for the medium-term, especially in the unit-
linked segment, as well as the future profitability of life
players.  Relative demand for guaranteed products will also
increase," says Benjamin Serra, a Moody's Analyst and author of
the report.

In Moody's opinion, these negative impacts will be exacerbated by
the increased competition in the savings segment introduced by new
legislation allowing banks to sell savings products with the same
favorable taxation as insurance products.  However, some
opportunities will arise for life insurance companies in the
pension segment, although insurers also have to compete with
pension funds in this area.  Nonetheless, annuities already
represent a significant part of Dutch insurers' liabilities and
successful growth in the pensions segment would lead to life
players being increasingly exposed to longevity risk.

"As far as non-life insurance is concerned, the Dutch market is
mature, with limited growth opportunities.  High competition also
translates into a decreasing trend in average premiums.  This
phenomenon has been reinforced recently by the rapid growth in
competition from low-cost Internet players.  Moody's therefore
expects the profitability of the industry to steadily decline
going forward," adds Mr Serra.

Meanwhile, health insurance, the largest segment in terms of
premiums since the healthcare system was privatized in 2006, is
characterized by ongoing uncertainties, as the legislation
governing this segment is still evolving. This political risk may
weigh on the profitability of this sector.

In addition, expenses have increased in all segments, driven by IT
investments aimed at improving services to customers and
intermediaries, which will likely weigh on profitability in the
near term.  In this context, most insurers are focusing on
improving efficiency and creating economies of scale, which has
led to significant market consolidation recently, which Moody's
expects to continue in the short to medium term. However, this
will be accompanied by significant execution risks.

Nonetheless, Moody's recognizes that the Dutch insurance industry
remains adequately capitalized and its asset quality is relatively
good.  However, solvency ratios have declined in recent months
given the recent decrease in equity markets, interest rate
increases and spread widening.  Financial flexibility has also
deteriorated recently, due to the combination of decreases in
capitalization and higher funding costs.


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


* PORTUGAL: Retains 2.2% of GDP Budget Deficit Target for 2009
--------------------------------------------------------------
Portugal's finance minister Fernando Teixeira Santos said
Wednesday that the country's economic growth was expected to slide
to 0.8% this year and 0.6% in 2009, down from previous government
forecasts of 1.5% for 2008 and 2% for 2009, The Financial Times
reports.  He set the 2009 budget deficit target at 2.2% of gross
domestic product, unchanged from 2008 in response to the global
financial crisis and economic slowdown.  The government, the FT
recalls, had previously agreed with the European Commission to cut
the deficit to 1.5% of GDP next year.

The new target marks the postponement of successful efforts to cut
a soaring budget deficit, which had spiraled to 6.8% of GDP in
2004, shortly before the Socialists took office, the FT notes.

After three years of austerity that brought the deficit well below
3% of GDP, the maximum limit allowed under the European Union's
fiscal rules, Portugal was poised for economic recovery when the
onset of the global crisis hit growth prospects, the FT writes.

As cited by the FT, Mr. Teixeira Santos said the budget proposals
were an attempt to respond to the challenges of the global crisis
while maintaining the government's commitment to disciplining
public finances.

Under the proposals, the FT relates that state workers will
receive their biggest pay rise in seven years.  The planned
increase of 2.9% is the first time the Socialist government has
offered public employees a pay increase above inflation, which the
government forecasts at 2.9% this year and 2.5% in 2009.

Portugal, the FT reports, will vote in local, European and
parliamentary elections next year.  However, Mr. Teixeira Santos
said the public sector pay increase was a planned compensation for
sacrifices workers had made in recent years and was not related to
the election calendar.


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


EVRAZ GROUP: Crude Steel Production Volume Up 32% in 3Q 2008
------------------------------------------------------------
The Evraz Group S.A. released its third quarter operational
results.

Product           3Q 2008  3Q 2007  3Q 2008/  2Q 2008  3Q 2008/
'000 tonnes unless                  3Q 2007,           2Q 2008
otherwise stated                    change**           change**
---------------   -------  -------  --------  -------  --------
Steel division

Coke (saleable)   438      602      (27.2)%   651      (32.7)%
Pig iron          3,621    2,761     31.1%    3,628    (0.2)%
Pig iron
(saleable)       239      230       3.8%     275      (13.3)%
Crude steel       4,886    3,695     32.2%    4,743     3.0%
Rolled products,
net of rerolled
volumes           4,491    3,460     29.8%    4,324     3,9%
Semi-finished
products         1,184    620       91.0%    993      19.2%
Construction
products         1,318    1,349     (2.4)%   1,604    (17.9)%
Railway
products         688      563       22.3%    622      10.7%
Flat-rolled
products         889      594       49.2%    759      17.1%
Tubular
products         254      124       104.0%   138      83.6%
Other steel
products         159      207       (23.1)%  207      (23.0)%

Mining division

Iron ore
(saleable products)
Lumping ore     612      n/a       n/a      792      (22.7)%
Concentrate      1,087    923       17.7%    867       25.3%
Sinter           1,979    1,914     3.4%     1,899     4.2%
Pellets          1,363    1,439    (5.3)%    1,520    (10.4)%
Coal
Coking coal
(mined)         2,176    1,352     60.9%    2,367     (8.1)%
Steam coal
(mined)         1,003    1,319     (23.9)%  676       48.4%
Concentrate
(production)    888      784       13.4%    1,075     (17.3)%
Steam
concentrate
(production)     195      0         n/a      131       48.2%

Vanadium (tonnes of V)3

Vanadium in slag
(saleable)       3,016    2,919     3.3%     2,814     7.2%
Vanadium in
alloys and
chemicals        3,734    3,535     5.6%     4,239    (11.9)%

Equity investments

Raspadskaya6
Coking coal
(mined)         2,939    3,684     (20.2)%  2,172    35.3%


    * All information on production volumes of the enterprises
      presented in the press release concerns only the period of
      their operation within Evraz Group.  The total volume of
      rolled steel products excludes those re-rolled at other
      Group's plants.  These volumes are eliminated as
      intercompany sales for purposes of Evraz's consolidated
      operating results.

  ** Percentage changes may not be exact due to rounding.

   1 Operational results of the Ukrainian assets –
     Dnepropetrovsk Steel Works and coke chemical plants -
     are consolidated into the Group since Dec. 12, 2007.

   2 Operational results of Claymont Steel are consolidated into
     the Group since January 2008.  Operational results of IPSCO
     Canada are consolidated into the Group since June 12, 2008.

   3 Calculated in pure vanadium equivalent.

   4 Operational results of Nikom, a.s.,. are consolidated into
     the Group since Dec. 20, 2007.

   5 The disposal of the Vanchem operations was implemented with
     effect from Aug. 29, 2008.

   6 Evraz Group holds a 40% effective interest in OAO
     Raspadskaya.

                        About Evraz

Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) --
http://www.evraz.com/-- manufactures and distributes steel and
related products.  In addition, the Company owns and operates
certain mining assets.  Its steel production and mining
facilities are mainly located in the Russian Federation.  It
operates three steel mills in Russia, one mill in the Sverdlovsk
region and two mills in the Kemerovo region.

                         *     *     *

Evraz Group S.A. continues to carry a Ba2 corporate family rating,
a Ba2 rating for Senior Notes due 2009 and a Ba3 rating for Senior
Notes due 2015 from Moody's Investors Service, which placed them
on review in March 2008 for possible downgrade.

The company also carries BB- long-term corporate credit and
senior unsecured debt ratings from Standard & Poor's Ratings
Services, with positive outlook.  The ratings were affirmed in
March 2008.

Evraz carries BB long-term Issuer Default and senior unsecured
ratings and B Short-term Issuer Default rating from Fitch
Ratings, with stable outlook.  The ratings were affirmed in
March 2008.


GLOBEX: Bars Withdrawals Wednesday Amid Bank Run
------------------------------------------------
Globex banned depositors Wednesday from withdrawing their money as
confidence in the Russian banking system began to show signs of
evaporating, The Financial Times writes.

Globex, a mid-sized retail bank with assets of US$4 billion
(EUR2.95 billion, GBP2.32 billion), is the first Russian bank to
experience a run on deposits during the crisis, the report notes.
An economist at a western bank in Moscow said Globex was probably
the first in what could be a number of bank panics, if the
government did not take concerted action soon, the FT reports.

As cited by the FT, Maxim Raskosnov, an analyst at Renaissance
capital, said the bank lost 13% of its deposits last month.  It
further lost 15% this month according to Emilya Alieva, Globex's
vice-president.

Despite a Kremlin promise of US$200 billion in relief funds –-
US$87 billion this week -– the fall-out of a stock market plunge
and the global credit crunch appears to be worse than anticipated,
the FT quotes analysts as saying.

The crunch has not affected the living standards of ordinary
Russians, but a rash of bank failures could, the FT says.  Banks
across Russia have faced a rise in outflows as depositors have
begun to lose trust in banks.

Mr. Raskosnov, FT relates, said Globex was in an especially
difficult situation, as a high concentration of its lending was in
property, one of the sectors most under pressure from the credit
crunch.  He said the bank was also not rated by a leading credit
rating agency, the prerequisite for central bank funding.

Globex confirmed that the ban on withdrawals had been in effect
since Tuesday, according to the report.  Globex blamed "demand
from depositors, many of whom explained their wish to transfer
their money to VTB or Sberbank".

In the past two months three Russian banks have been forced into
mergers as a result of the credit crisis, and analysts expect more
consolidation, the report continues.

Russia's central bank, however, made no public mention of Globex
crisis, sparking criticism from analysts, the FT notes.


KHNATI MANSISK: Rumors on Insolvency Prompt Heavy Withdrawals
-------------------------------------------------------------
At least a dozen Russian banks have reported a sharp rise in
withdrawals and account closures, The Financial Times reports.

According to the report, Tatyana Sadovskaya, the director of a
branch of Khnati Mansisk Bank in the city of Nizhnevartovsk,
responded Wednesday to the Interfax news agency in relation to
rumors of her bank's insolvency.  She said "People have formed
long lines at cashiers and at bankomats, people are taking their
deposits and closing their accounts."

The crunch has not affected the living standards of ordinary
Russians, but a rash of bank failures could, the FT says.  Banks
across Russia have faced a rise in outflows as depositors have
begun to lose trust in banks.

In the past two months three Russian banks have been forced into
mergers as a result of the credit crisis, and analysts expect more
consolidation, the report continues.


NIZHNI NOVGOROD: Account Closures Rise Amid Financial Crunch
------------------------------------------------------------
At least a dozen Russian banks have reported a sharp rise in
withdrawals and account closures, The Financial Times relates.

As cited by the FT, Natalia Elisseva, vice-president for financial
development at the Bank Nizhni Novgorod, said the number of
clients closing accounts had risen.  "If there is something that
can sink the banks, it is panic amongst the population . . . .  If
there is a panic, not one bank will stand, regardless of state
support."

The crunch has not affected the living standards of ordinary
Russians, but a rash of bank failures could, the FT says.  Banks
across Russia have faced a rise in outflows as depositors have
begun to lose trust in banks.

In the past two months three Russian banks have been forced into
mergers as a result of the credit crisis, and analysts expect more
consolidation, the report continues.


PENOIZOL LLC: Creditor Must File Claims by November 3
-----------------------------------------------------
Creditors of LLC Penoizol Production Commercial Firm ( Heat and
Sound-Insulating Materials and Items Production)  have until
Nov.3, 2008 to submit proofs of claims to:

         V. Kevarkov
         Temporary Insolvency Manager
         Apt.15
         Generalskaya Str. 12
         620062 Yekaterinburg
         Russia

The Arbitration Court of Chelyabinskaya will on Dec. 10, 2008, to
hear bankruptcy supervision procedure.  The case is docketed
under Case No. A76–7442/2008–55-121.

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

The Debtor can be reached at:

         LLC Penoizol
         Postysheva Str. 2
         454091 Chelyabinsk
         Russia


SIBUR HOLDING: Moody's Confirms Ba2 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has confirmed the Ba2 Corporate Family
Rating and the Ba2 Probability of Default rating of Sibur Holding
OJSC with a stable outlook.  The ratings were put on review for
possible downgrade in May 2008 following the announcement of the
contemplated management buyout of 50% +1 share of the company from
its main shareholder Gazprombank (Baa1, stable) for approximately
US$2.3 billion (RUR 53.5 billion).

In September 2008, the company announced the cancellation of the
MBO transaction due to unfavorable market conditions, and advised
that it does not intend to resume such activity in the foreseeable
future.

In its action plan aiming at mitigating the potential chemical
market downturn, the company re-evaluated and re-prioritized its
investment program (including acquisition activity) and embarked
on a cost-saving program.  The company is expected to repay its
debt of US$542 million maturing in 2009 thanks to a moderate non-
discretionary capex that should be fully financed by operating
cash-flow and available bank facilities of US$570 million.

Based on year 2007 and expected LTM 2008 financial results, Sibur
is strongly positioned in its rating category, given its high
profitability vis-a-vis industry peers (EBITDA margin of 23% in
2007, 27% in 2008), low leverage of Debt/EBITDA comfortably below
1 and positive free cash flow.  However, Moody's notes that Sibur
might consider to increase capex spending up to ca. US$6 billion
for 2009-2010, which would require to raise new debt.  The agency
will monitor the company's ability to raise required financing for
potential tightening of liquidity.

The stable outlook reflects Moody's expectation that the company
will be able to defend its margins in the lower phase of the
chemical cycle, adhere to conservative financial policies and
liquidity management and apply prudent project selection criteria.
In view of the planned ambitious capex program and potential
acquisition activity, Moody's expects Sibur to be able to maintain
over time the level of Cash From Operations (CFO) to Debt
consistently above 30%, and leverage measured by adjusted
Debt/EBITDA below 1.5x.  A failure to maintain such metrics might
create negative pressure on the rating.

Domiciled in St. Petersburg, Russian Federation OJSC Sibur Holding
is the largest Russian vertically integrated petrochemical
holding, producing hydrocarbon feedstock, fertilizers, Synthetic
rubbers, polymers and tyres.  Sibur's reported revenues in 2007
amounted to RUR143 billion, EBITDA RUR34 billion and net income
RUR22.3 billion.


TOMSKOE AIRCRAFT: Creditors Must File Claims by November 26
-----------------------------------------------------------
Creditors of OJSC Tomskoe Aircraft Producion Association (TIN
7017115933, PSRN 1057000135455) have until Nov. 26, 2008, to
submit proofs of claims to:

         N. Razumov
         Insolvency Manager
         Office 207
         Nakhimova Str. 13/1
         634045 Tomsk
         Russia

The Arbitration Court of Tomskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No.A67-9053/06.

The Court can be reached at:

         The Arbitration Court of Tomsk
         Kirova Pr. 10
         634050 Tomsk
         Russia

The Debtor can be reached at:

         OJSC Tomskoe Aircraft Producion Association
         Airport poselok
         634539 Tomskaya
         Russia


URAL CONSTRUCTION: Creditor Must File Claims by November 3
----------------------------------------------------------
Creditors of LLC Ural Construction Technology have until Nov. 3,
2008, to submit proofs of claims to:

         I. Bulatov
         Temporary Insolvency Manager
         Zavodskaya Str.29
         Plast
         457020 Chelyabinskaya
         Russia

The Arbitration Court of Chelyabinskaya will convene at 3:00 p.m.
on Dec. 10, 2008, to hear bankruptcy supervision procedure.
The case is docketed under Case No. A76–7434/2008–55-122.

The Court is located at:

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

The Debtor can be reached at:

         LLC Ural Construction Technology
         Khudyakova Str. 12
         454080 Chelyabinsk
         Russia


WEST SIBERIAN: Standard & Poor's Affirms Short-Term Rating at 'C'
-----------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B' long-term
counterparty credit and 'ruBBB+' Russia national scale ratings on
West Siberian Commercial Bank on CreditWatch with developing
implications.  At the same time, the 'C' short-term rating was
affirmed.

"The CreditWatch placement follows the announcement that a 50.2%
stake in the bank will be acquired by two local regional
governments," said S&P's credit analyst Victor Nikolskiy.
"Uncertainties regarding the financial condition of the bank also
played a significant role in the CreditWatch placement."

The Tyumen Oblast (not rated) and Yamal-Nenets Autonomous Okrug
(AO; BB+/Stable/--; Russia national scale 'ruAA+'), the two
regional governments acquiring West Siberian, have not disclosed
the price and structure of the acquisition.

S&P considers that the acquisition could positively affect the
bank's liquidity, financial flexibility, and capitalization, and
offer some protection in the current domestic financial crisis.

At the same time, the sudden change of ownership and the
difficult operating environment Russian banks are experiencing
create uncertainties about West Siberian's current
creditworthiness, which could lead us to lower the ratings on the
bank.

"We will resolve the CreditWatch placement upon the completion of
the acquisition and our evaluation of its impact on the bank,"
said Mr. Nikolskiy.

This will include a review of the bank's financial condition,
changes in strategy and management, and most importantly, the
capacity and willingness of the majority shareholders to provide
financial support, including new capital and funding resources.


YAMAL-NENETS: West Siberian Share Increase Won't Hurt S&P Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that the planned increase
of the Russian Yamal-Nenets Autonomous Okrug's (AO; B+/Stable/--;
Russia national scale 'ruAA+') share in the capital of West
Siberian Commercial Bank (B/Watch Dev/--; Russia national scale
'ruBBB+') has no immediate negative impact on the okrug's
creditworthiness.  Yamal-Nenets AO's robust finances, with budget
surpluses and large cash reserves, and with no direct debt, make
it capable of withstanding the increase in contingent liabilities
associated with a larger share in an important regional bank.

The okrug, together with neighboring Tyumen Oblast (not rated),
decided to increase their share in the capital of the bank to
25.1% each.  The two regions have committed to supporting the bank
in order to secure its important role in the territory -–
servicing retail depositors and providing payroll services in the
public sector and loans to citizens and local enterprises.  This
decision increases Yamal-Nenets AO's contingent liabilities.

The amount of Yamal-Nenets AO's injections to the bank's capital
is still under discussion, along with the scope and form of
additional financial support from both regions.  S&P doesn't
expect the assistance to the bank will negatively impact the
okrug's creditworthiness in the medium term, due to the okrug's
comfortable liquidity, zero direct debt, and financial
flexibility.  Should the assistance to the bank be imprudently
high and lead to consistently negative operating performance
and/or depletion of liquidity reserves, the ratings on Yamal-
Nenets AO could come under pressure.

The okrug's direct debt is zero after the Russian ruble 1.8
billion bond repayment in August 2008.  Yamal Nenets AO's
liquidity is currently secured by a budget surplus and cash on
accounts, which together represented 20% of the okrug's
expenditures as of Oct. 1, 2008.  The okrug's financial
flexibility is better than that of most Russian peers, due to high
per capita revenues (the bulk of which is provided by OAO Gazprom
{BBB/Stable/--}).  Wealth indicators in the okrug are high, with
estimated per-capita gross regional product of US$46,041.40 in
2007.


YURYUZANSKAYA ENERGY: Creditors Must File Claims by November 3
--------------------------------------------------------------
Creditors of CJSC Yuryuzanskaya Energy Saving Company (TIN
7410006224) have until Nov. 3, 2008, to submit proofs of claims
to:

         K. Rudakov
         Insolvency Manager
         Post User Box 12555
         454080 Chelyabinsk
         Russia

The Arbitration Court of Chelyabinsk commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A76-7859/2008-34-74.

The Court is located at:

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

The Debtor can be reached at:

         CJSC Yuryuzanskaya Energy Saving Company
         Varganova Str. 1
         Yuryuzan
         Chelyabinskaya
         Russia


ZENIT LLC: Creditor Must File Claims by November 3
--------------------------------------------------
Creditors of LLC Zenit Insurance Entity have until Nov. 3, 2008
to submit proofs of claims to:

         A. Tsekh
         Temporary Insolvency Manager
         Office 31
         Kavalergardskaya Str. 6
         191015 Saint-Petersburg
         Russia

The Arbitration Court of Moscow will convene on Jan. 13, 2009, to
hear bankruptcy supervision procedure. The case is docketed
under Case No. A40–36988/08–71-89 B .

The Court is located at:

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

The Debtor can be reached at:

         LLC Zenit
         Building 2
         Obrucheva Str. 34/63
         117342 Moscow
         Russia


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


AYT DEUDA: S&P Slashes Rating on Class C Notes to BB
----------------------------------------------------
Standard & Poor's Ratings Services has lowered and removed from
CreditWatch with negative implications its credit ratings on the
class A, B, and C notes issued by AyT Deuda Subordinada I, Fondo
de Titulizacion de Activos.

The rating actions are based on a review of the current pool
credit quality and concentration risks given the credit profile.
S&P's review concluded that the overall pool credit quality has
deteriorated since closing, giving rise to an increase in assessed
default risk for each class of notes.  At the same time, given the
present financial situation there is a higher risk of co-
dependence of the assets.

AyT Deuda Subordinada I issued EUR298 million of notes in November
2006, backed by nine subordinated debt bonds issued by nine
Spanish savings banks.  The bonds were tailored specifically for
the purpose of this issuance—their terms and conditions match
those of the issued notes.

AyT Deuda Subordinada I, Fondo de Titulizacion de Activos

  -- EUR298 Million Asset-Backed Floating-Rate Notes

Ratings Lowered And Removed From CreditWatch Negative:

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


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


SEQUANA CAPITAL: S&P Withdraws B Short-Term Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its 'B' short-
term corporate credit rating on Sequana at the company's request.


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


BAGGI'S DESKTOP-TEAM: Creditors Must File Claims by Oct. 30
-----------------------------------------------------------
Creditors owed money by LLC Baggi's Desktop-Team are requested to
file their proofs of claim by Oct. 30, 2008, to:

         R. Baggenstos
         Fasanenstrasse 5
         5737 Menziken
         Switzerland

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


CORMEX LLC: Deadline to File Proofs of Claim Set Oct. 30
--------------------------------------------------------
Creditors owed money by LLC Cormex are requested to file their
proofs of claim by Oct. 30, 2008, to:

         Corina Girell di Giovanoel
         LLC Cormex
         Leimstrasse 3A
         4805 Vordemwald
         Switzerland

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


EMEAA COMPUTER: Creditors Have Until Oct. 30 to File Claims
-----------------------------------------------------------
Creditors owed money by JSC EMEAA Computer are requested to file
their proofs of claim by Oct. 30, 2008, to:

         Werner Wild
         Obermattweg 12
         6052 Hergiswil 6
         Switzerland

The company is currently undergoing liquidation in Hergiswil NW.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 11, 2008.


LOCHER CONSULTING: Proofs of Claim Filing Deadline is Oct. 30
-------------------------------------------------------------
Creditors owed money by LLC Locher Consulting are requested to
file their proofs of claim by Oct. 30, 2008, to:

         Marianne Locher
         Herbstackerstrasse 35
         8472 Seuzach
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 24, 2005.


NOVASEP JSC: Creditors' Proofs of Claim Due by Oct. 30
------------------------------------------------------
Creditors owed money by JSC NOVASEP (Switzerland) are requested to
file their proofs of claim by Oct. 30, 2008, to:

         Martin Herb
         Herb Takata Rechtsanwalte
         Kappelergasse 15
         Mail Box 2400
         8022 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Sept. 12, 2008.


SASSA LLC: Oct. 30 Set as Deadline to File Claims
-------------------------------------------------
Creditors owed money by LLC Sassa are requested to file their
proofs of claim by Oct. 30, 2008, to:

         Jeannette Bussmann-Rechsteiner
         Aegerisaumweg 6B
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 11, 2008.


SCHIFFSKONSTRUKTIONEN LLC: Deadline to File Claims Set Oct. 29
--------------------------------------------------------------
Creditors owed money by LLC Schiffskonstruktionen are requested to
file their proofs of claim by Oct. 29, 2008, to:

         Dr. Werner Dessauer
         JSC Commercial Investment
         Alte Landstrasse 134
         8702 Zollikon 6
         Switzerland

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


UBS AG: Takes Measures to De-Risk and Reduce Balance Sheet
----------------------------------------------------------
The Swiss National Bank and UBS yesterday unveiled a comprehensive
solution to materially de-risk and reduce UBS's balance sheet.

Peter Kurer, Chairman of UBS said, "In these turbulent times we
want to ensure that we do everything possible to safeguard the
solidity of our bank.  We are taking practical steps to eliminate
legacy risks.  We thank the Swiss Government and the Swiss
National Bank for their willingness to develop a commercial
solution under economic terms that will support both the stability
of the Swiss financial system and UBS.  Their efforts and
decisiveness to act swiftly demonstrates the professionalism of
the Swiss financial center, to which we are deeply committed."

Marcel Rohner, Group CEO said, "This transaction gives comfort in
UBS's future.  The extremely difficult market environment led us
to accelerate our risk reduction with a definitive move. Our aim
is to protect our clients from the impact of the crisis to the
fullest extent possible and to provide our shareholders an
opportunity to renew their confidence in the bank.  Our
shareholders have borne the losses from this crisis.  They now
have the certainty that our risks related to these distressed
assets have been substantially removed while still participating
in the recovery of these assets."

Up to US$60 billion in assets to be transferred to new entity,
fully owned and controlled by SNB

Based on an agreement with the SNB, UBS will transfer up to
US$60 billion of assets to a newly created fund entity.  UBS will
capitalize the fund with equity of up to US$6 billion.

The SNB will finance the fund with a loan of up to US$54 billion,
secured on the assets of the fund.  At the time it grants the
loan, the SNB will take over control and ownership of the entity
by purchasing the equity for a nominal price of
US$1.  The loan will be non-recourse to UBS, assuming no change of
control of UBS and will be priced at LIBOR plus 250 basis points.
It will mature in eight years, but the maturity may be extended to
10 or 12 years.

The US$6 billion equity will absorb any potential realized losses
up to this amount.

The purpose of the fund is to ensure an orderly financing and
liquidation of securities that are currently illiquid as well as
other assets from UBS's balance sheet over the long-term.

The assets transferred into the fund include around US$31 billion
(as per valuation at September 30, 2008) of primarily cash
securities, previously disclosed in these categories:

    * US sub-prime

    * US Alt-A

    * US prime

    * US commercial real estate and mortgage-backed securities

    * US student loan auction rate certificates and other
      securities backed by student loans

    * US reference-linked note program (RLN) (1)

At completion of the transaction, UBS's net exposure in these risk
categories will be reduced to nearly zero (compared to
US$44.2 billion on June 30, 2008), with residual long positions
held by UBS in these asset classes hedged through existing short
positions, including credit protection embedded in the RLN
programs.

UBS will also transfer additional, mainly non-US debt instruments
with a total net value of US$18 billion to the fund – a wide range
of securities backed by a variety of asset classes.  The inclusion
of these positions follows UBS's decision to downsize its
securitization business and provides a better diversification of
the fund's portfolio.

The transfer of the US$49 billion of assets will take place over
the coming months, during fourth quarter 2008 or first quarter
2009, but will be priced at valuations as of September 30, 2008.
These prices will be verified by independent third parties and
potential differences will be recorded in the bank's income
statement.

UBS will have the right to transfer up to an additional
US$9 billion of assets into the fund at a later stage.  These
include up to US$5 billion of student loan auction rate securities
the bank may buy back from clients as part of the recent
settlements and up to US$3.5 billion of positions which may become
unhedged in the event of commutation of the credit protection
contracts with one or more monoline insurers. (2)

UBS will act as the investment manager of the fund, overseen by a
board controlled by the SNB.  The oversight board will approve
specified matters including certain major transactions and changes
in investment guidelines.  It will also be empowered to change the
investment manager.

As part of this transaction, UBS has been granted the option to
buy back the equity of the entity, once the loan is fully repaid,
by paying the SNB US$1 billion plus 50% of the amount by which the
equity value at the time of exercise exceeds that amount.  Any
remaining equity up to US$1 billion will go to the SNB and UBS
will participate in 50% of the equity value exceeding US$1
billion.  The option will be carried on UBS's balance sheet at its
fair value.

If – over the life of the transaction – the fund equity declines
in value, the SNB will be able to participate in some manner in
the appreciation of the UBS share price.  The arrangement will be
based on no more than 100 million UBS shares and will be further
defined early next year.

The transaction will result in a significant reduction in UBS's
risk-weighted assets and its balance sheet total.  The impact of
the transaction and related capital measures will be shown in the
fourth quarter results separately from the operating performance.
On a preliminary basis, UBS estimates that the transaction will
result in a charge against earnings of approximately CHF4 billion.
These impacts would produce a year-end Tier 1 ratio of
approximately 11.5%, before any other fourth quarter effects.

    UBS to Raise CHF6 Billion of New Capital to Fund Entity

UBS will raise CHF6 billion of new capital in the form of
mandatory convertible notes (MCN).  This will allow the bank to
retain a strong Tier 1 capital ratio, even after providing the
equity to the newly established entity.  The MCN has been fully
placed with the Swiss Confederation.  The Swiss Confederation
reserves the right to reduce part or all of its investment by
transferring the MCN to third party investors.

The MCN issue is subject to approval by UBS shareholders who will
vote on the creation of the required conditional capital
underlying the MCN at an extraordinary general meeting (EGM) to be
held in late November 2008.  The MCN will count as Tier 1 capital
for BIS capital adequacy purposes following EGM approval.
Issuance of the MCN is expected to take place five business days
after the EGM.

The MCN will pay a coupon of 12.5% until conversion into UBS
registered shares, which must take place no later than 30 months
after issuance.

The MCN will have a minimum conversion price corresponding to the
reference price and a maximum conversion price set at 117% of the
reference price.

The reference price of the MCN will be determined as the lower of:

    * the volume-weighted average price (VWAP) of UBS shares on
      SWX Europe on the trading day preceding this announcement
     (CHF20.24 on 15 October 2008), and

    * the average of the daily VWAP on each of the three trading
      days ending on the day before the EGM.

However, in no case will the reference price be less than
CHF18.21, or 90% of the VWAP of October 15, 2008.

Upon conversion of the MCN, the Swiss Confederation will hold
approximately 9.3% of UBS's share capital, on the basis of
currently outstanding shares and assuming conversion of the
mandatory convertible notes issued in March 2008.

A summary of the terms and conditions of the MCN can be found at
www.ubs.com/media.  UBS shareholders will be provided with more
details on the proposed transactions together with the invitation
to the EGM.

                Update on Third Quarter Results

In line with the pre-announcement on October 2, UBS recorded a
small net profit attributable to its shareholders of CHF296
million for third quarter 2008.

Estimated third quarter results by division are:

    * Global Wealth Management & Business Banking's profit
      before tax rose 66% from second quarter 2008 to CHF1,862
      million.  The previous quarter, however, included a
      provision of CHF919 million for the expected costs of the
      repurchase of auction rate securities and related costs,
      including fines.

    * Global Asset Management's pre-tax profit was CHF414
      million, up 18% from the previous quarter.  This includes
      an extraordinary gain of approximately CHF168 million from
      the previously announced disposal of Adams Street
      Partners.

    * The Investment Bank's pre-tax result was negative
      CHF2,748 million, compared to a loss of CHF5,233 million
      in the second quarter.  As credit spreads widened in the
      third quarter, the Investment Bank recorded gains of
      CHF2,207 million on own credit (compared to CHF122 million
      in second quarter).  Disclosed concentrated risk positions
      were significantly reduced by US$13.5 billion, mainly
      through the sale of assets.  Writedowns and losses on
      those disclosed positions totaled US$4.4 billion (compared
      to US$5.1 billion in second quarter), recorded in the
      Investment Bank's Fixed Income, Currencies and Commodities
      (FICC) business.  Revenues were down across businesses, in
      line with prevailing market conditions.

Corporate Center recorded a pre-tax loss of CHF7 million
(CHF330 million in second quarter).

Group results in third quarter include a tax credit of
CHF912 million.

Costs were again reduced across the bank, with cuts in
discretionary spending and lower personnel expenses, reflecting
lower staff levels and a decrease in bonus accruals in line with
business performance.

During third quarter, UBS reduced its balance sheet by around
CHF80 billion to CHF1,997 billion.  UBS's total BIS capital ratio
on September 30 was estimated at 14.8% and its Tier 1 ratio at
approximately 10.8%, compared to 15.7% and 11.6% respectively at
the end of June.

Wealth Management & Business Banking invested assets were
CHF1,932 billion.  The division recorded net new money of negative
CHF49.3 billion in the third quarter, with a significant part of
the outflow taking place in the last few weeks of the quarter.
Global Asset Management invested assets were CHF708 billion with
net new money negative 34.4 billion.

With today's measures, in addition to its earlier steps, UBS is
confident that it has created the conditions necessary to reverse
the outflow of client assets.

UBS's concentrated risk positions were reduced substantially
during the quarter.

In line with the recently announced re-positioning of the
Investment Bank, UBS will continue to manage capital and resources
carefully and diligently.

More detailed third quarter results will be disclosed on
November 4, 2008, as planned.

   1) The US reference-linked program will continue to be
      operated by UBS.

   2) The difference between the maximum facility size of
      US$60 billion and the total amount of securities described
      above resulted from asset sales and write-downs from mid
      September to the September 30 valuation date.

                        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.


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


* TURKEY: Banking System Still Resilient, Moody's Says
------------------------------------------------------
The Turkish banking system is continuing to exhibit healthy
profitability and mostly solid asset quality on the back of a
growing though slowing economy, says Moody's Investors Service in
its new Banking System Outlook for Turkey.  However, Turkey's
vulnerability to global financial market shocks and weakening
economic conditions could have an adverse impact on domestic
banking conditions, with the degree of deterioration in asset
quality and profitability dependent on the magnitude and duration
of the economic weakening.

As a result, Moody's fundamental credit outlook for the Turkish
banking system is now stable-to-negative.  This outlook expresses
the rating agency's view on the likely future direction of
fundamental credit conditions in the industry over the next 12 to
18 months.  It does not represent a projection of rating upgrades
versus downgrades.

"Turkish banks generally remain in a relatively healthy condition:
profitability, capitalization and asset quality are all currently
at strong levels and their liquidity positions are adequate.  The
largest banks have grown rapidly and aggressively in recent years
as branches typically become profitable very quickly, while
expansion strategies are now more targeted.  In addition, the
participation of foreign banks in the capital of many Turkish
banks has reaped benefits in terms of franchise development and
risk management," explains George Chrysaphinis, a Moody's Vice
President / Senior Analyst and author of the report.

As a result of the progress the sector has made since 2002,
Moody's is confident that the Turkish banks' business models and
franchises will prove resilient to financial market turbulence,
with the domestic market still offering considerable potential for
growth. Nonetheless, the rating agency anticipates that the global
credit crunch and weakening economic conditions in most of Europe
could spread into Turkey, possibly sooner rather than later, with
Turkish real GDP growth expected to slow in 2008 and further in
2009.

"As the domestic economy slows down and loan growth eases, we
would expect a moderate deterioration in asset quality over the
coming months.  However, if the Turkish economic environment were
to weaken more severely than we currently anticipate and the
availability of credit to Turkish companies become significantly
restricted, banks could face more substantial asset quality
problems," says Mr. Chrysaphinis.  Moody's base scenario is for
only a moderate increase in non-performing loans that would be
well within the banks' ability to provision. Nonetheless, given
continuing turbulence on the global financial markets, the
situation could change rapidly, in which case Moody's could
incorporate a more severe scenario into its analysis, with
possible negative rating consequences for the Turkish banks.


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


COMMUNAL SERVICES: Creditors Must File Claims by October 22
-----------------------------------------------------------
Creditors of OJSC South Electrical Engineering Plant Subsidiary
Company Communal Services (code EDRPOU 30769169) have until
Oct. 22, 2008, to submit proofs of claim to:

         Nikolay Krizhanovsky
         Liquidator
         Ap. 18
         Kalinin Str. 125-A
         73008 Herson
         Ukraine
         Tel: 8(050)318-62-65, 8(0552)31-13-17

The Economic Court of Herson commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 10, 2008.
The case is docketed as 12/219-B-08.

         The Economic Court of Herson
         Gorkiy Str. 18
         73000 Herson
         Ukraine

The Debtor can be reached at:

         OJSC South Electrical Engineering Plant Subsidiary
         Company Communal Services
         Pervomayskaya Str. 35
         Novaya Kakhovka
         74903 Herson
         Ukraine


GLUKHOV PLANT: Creditors Must File Claims by October 22
-------------------------------------------------------
Creditors of OJSC Glukhov Plant on Raw Materials Processing (code
EDRPOU 01878408) have until Oct. 22, 2008, to submit proofs of
claim to:

         Eugene Chuprun
         Temporary Insolvency Manager
         Ap. 49A
         Petropavlovskaya Str. 74
         Sumy
         Ukraine

The Economic Court of Sumy commenced bankruptcy supervision
procedure on the company on Sept. 15, 2008.  The case is docketed
as 7/217-08.

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

The Debtor can be reached at:

         OJSC Glukhov Plant on Raw Materials Processing
         Industrial Str. 25
         Glukhov
         41400 Sumy
         Ukraine


INDUSTRIAL BUILDING: Creditors Must File Claims by October 22
-------------------------------------------------------------
Creditors of LLC Industrial Building Delivery (code EDRPOU
31621058) have until Oct. 22, 2008, to submit proofs of claim to:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Economic Court of Kiev commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 17, 2008.
The case is docketed as B 11/259-08.

The Debtor can be reached at:

         LLC Industrial Building Delivery
         Ap. 10
         Mayakovsky Svenue 32-D
         02222 Kiev
         Ukraine


KIROVOGRAD REGIONAL: Creditors Must File Claims by October 22
-------------------------------------------------------------
Creditors of Kirovograd Regional Radiotelevision Transmission
Center State Enterprise (code EDRPOU 20650935) have until Oct. 22,
2008, to submit proofs of claim to:

         Igor Omelchenko
         Temporary Insolvency Manager
         Ap. 72
         Ac. Pavlov Str. 132
         Kharkov
         Ukraine

The Economic Court of Kirovograd commenced bankruptcy supervision
procedure on the company on June 23, 2008.  The case is docketed
as 10/130.

         The Economic Court of Kirovograd
         Lunacharski Str. 29
         25006 Kirovograd
         Ukraine

The Debtor can be reached at:

         Kirovograd Regional Radiotelevision Transmission Center
         State Enterprise
         P.O. Box 300
         03150 Kharkov
         Ukraine


KHLEBODAR LLC: Creditors Must File Claims by October 22
-------------------------------------------------------
Creditors of LLC Khlebodar (code EDRPOU 31309433) have until
Oct. 22, 2008, to submit proofs of claim to:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Economic Court of Kiev commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 17, 2008.
The case is docketed as B 11/257-08.

The Debtor can be reached at:

         LLC Khlebodar
         Korolev Str. 4
         Svetilnia
         Brovary District
         07444 Kiev
         Ukraine


PENEZHKOVOYE LLC: Creditors Must File Claims by October 22
----------------------------------------------------------
Creditors of Penezhkovoye LLC (code EDRPOU 24417093) have until
Oct. 22, 2008, to submit proofs of claim to:

         Sergey Smilianets
         Liquidator/Insolvency Manager
         Gorky Str. 14
         Uman
         20300 Cherkassy
         Ukraine
         Tel/fax: 8(04744)40860

The Economic Court of Cherkassy commenced and bankruptcy
proceedings against the company after finding it insolvent on
Sept. 9, 2008.  The case is docketed as 10/3988.

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         Penezhkovoye LLC
         Lenin Str. 1
         Penezhkovoye
         Khristinovsky District
         Cherkassy
         Ukraine


PRIOZERNOYE: Creditors Must File Claims by October 22
-----------------------------------------------------
Creditors of State Education-Research Farm Priozernoye (code
EDRPOU 00489811) have until Oct. 22, 2008, to submit proofs of
claim to:

         The Economic Court of Herson
         Gorkiy Str. 18
         73000 Herson
         Ukraine

The Economic Court of Herson commenced and bankruptcy proceedings
against the company after finding it insolvent on July 8, 2008.
The case is docketed as 5/128-B.


REPAIR AND BUILDING: Creditors Must File Claims by October 22
-------------------------------------------------------------
Creditors of OJSC South Electrical Engineering Plant Subsidiary
Company Repair and Building (code EDRPOU 30769078)  have until
Oct. 22, 2008, to submit proofs of claim to:

         Nikolay Krizhanovsky
         Liquidator
         Ap. 18
         Kalinin Str. 125-A
         73008 Herson
         Ukraine
         Tel: 8(050)318-62-65, 8(0552)31-13-17

The Economic Court of Herson commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 10, 2008.
The case is docketed as 12/218-B-08.

         The Economic Court of Herson
         Gorkiy Str. 18
         73000 Herson
         Ukraine

The Debtor can be reached at:

         OJSC South Electrical Engineering Plant Subsidiary
         Company Repair and Building
         Pervomayskaya Str. 35
         Novaya Kakhovka
         74903 Herson
         Ukraine


SOBOL LLC: Creditors Must File Claims by October 22
---------------------------------------------------
Creditors of LLC Sobol (code EDRPOU 34002901) have until Oct. 22,
2008, to submit proofs of claim to:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Economic Court of Kiev commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 17, 2008.
The case is docketed as B 11/258-08.

The Debtor can be reached at:

         LLC Sobol
         Korolev Str. 4
         Svetilnia
         Brovary District
         07444 Kiev
         Ukraine


SOKHA LLC: Creditors Must File Claims by October 22
---------------------------------------------------
Creditors of LLC Science-Production Firm Sokha (code EDRPOU
32277235) have until Oct. 22, 2008, to submit proofs of claim to:

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

The Economic Court of Zhytomir commenced and bankruptcy
proceedings against the company after finding it insolvent on
Sept. 4, 2008.  The case is docketed as 3/142-b.

The Debtor can be reached at:

         LLC Science-Production Firm Sokha
         October Str. 1
         Pavelki
         Andrushevka District
         13442 Zhytomir
         Ukraine


TOOL PRODUCTION: Creditors Must File Claims by October 22
---------------------------------------------------------
Creditors of OJSC South Electrical Engineering Plant Subsidiary
Company Tool Production (code EDRPOU 30769111) have until Oct. 22,
2008, to submit proofs of claim to:

         Nikolay Krizhanovsky
         Liquidator
         Ap. 18
         Kalinin Str. 125-A
         73008 Herson
         Ukraine
         Tel: 8(050)318-62-65, 8(0552)31-13-17

The Economic Court of Herson commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 10, 2008.
The case is docketed as 12/220-B-08.

         The Economic Court of Herson
         Gorkiy Str. 18
         73000 Herson
         Ukraine

The Debtor can be reached at:

         OJSC South Electrical Engineering Plant Subsidiary
         Company Tool Production
         Pervomayskaya Str. 35
         Novaya Kakhovka
         74903 Herson
         Ukraine


UKRAINIAN BUILDING: Creditors Must File Claims by October 22
------------------------------------------------------------
Creditors of LLC Ukrainian Building Investment 2010 (code EDRPOU
33456157) have until Oct. 22, 2008, to submit proofs of claim to:

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Economic Court of Kiev commenced and bankruptcy proceedings
against the company after finding it insolvent on Sept. 17, 2008.
The case is docketed as B 11/256-08.

The Debtor can be reached at:

         LLC Ukrainian Building Investment 2010
         Korolev Str. 4
         Svetilnia
         Brovary District
         07444 Kiev
         Ukraine


* ODESSA: S&P Puts B+ Credit Rating on WatchNeg Over Growing Risks
------------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B+' long-term
issuer credit and 'uaA+' Ukraine national scale ratings on the
City of Odessa, on the Black Sea coast of southern Ukraine, on
CreditWatch with negative implications.

"The CreditWatch placement reflects the increased potential risks
related to the safety of Odessa's deposits earmarked for 2008 debt
service, which are placed in several unrated local banks," said
S&P's credit analyst Boris Kopeykin.  "In addition, the city has
contravened its reserves policy by using for general expenses a
small portion of the deposits previously earmarked for debt
service only."

The city's overall reserves still exceed debt service until the
end of the year by 1.5x.  However, two recent events make us more
concerned about the city's ability to ensure the timely withdrawal
of its Ukrainian hryvnia (UAH)68 million (US$13 million) deposits
held in local banks for its upcoming bond repayment (the city has
to repay UAH70 million on its bonds on Dec. 31):

  -- The National Bank of Ukraine's Oct. 13 decision to place a
     moratorium on the early redemption of term deposits; and

  -- The effect of the ongoing international market turbulence on
     the financial and commercial profiles of Ukrainian banks, and
     the consequent increasing pressure on their asset quality,
     liquidity, and funding.

S&P will resolve the CreditWatch placement after it obtains
certainty that the city will have access to enough free cash to
repay its bonds coming due on Dec. 31.

"If the city experiences difficulties accessing its cash deposits,
and/or its overall cash levels fall below debt service, we would
likely lower the ratings," said Mr. Kopeykin.


* UKRAINE: Rising Deficits Cue S&P to Put Low-B Ratings on Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services has placed the following
ratings on Ukraine on CreditWatch with negative implications: its
'B+/B' foreign currency and 'BB-/B' local currency sovereign
credit ratings on its global scale; and its 'uaAA' ratings on its
national scale.  A resolution of the CreditWatch action is likely
this month pending further clarification of the government's
strategy in addressing the intensifying stresses in Ukraine's
financial sector, which could require capital injections from the
government.  S&P is in the process of assessing these potential
fiscal costs and the impact of weakened growth prospects on the
budgetary position of the government.

"The CreditWatch placements reflect our concerns over the impact
of a deteriorating economic situation and associated exchange-rate
depreciation on the country's financial sector asset quality,
especially in light of its high level of private sector foreign
currency borrowing, equivalent to 35% of GDP.  The current account
deficit increased sixfold in U.S. dollar terms during the first
half of 2008 to US$6.8 billion (an estimated 7% of GDP), but this
figure is likely to shrink markedly during the remainder of 2008
and into 2009 as Ukraine faces a sudden stop in external
financing," said S&P's credit analyst Frank Gill.

High short-term financing needs will remain -- Ukraine's gross
external financing requirements (current account balance,
amortization of long-term external debt, and stock of short-term
external debt) will be 147% of international reserves over the
next 12 months.  A reversal in terms of trade is also underway,
complicating the outlook for growth in the midst of an evolving
electoral cycle.

The Ukrainian government is in talks with the International
Monetary Fund to negotiate an arrangement that could provide long-
term support for its economy.  "We expect to resolve the
CreditWatch placement this month, as terms of the IMF deal and any
associated foreign currency funding become clear," added Mr. Gill.


* S&P Puts Ratings on 6 Ukrainian Governments Under Negative Watch
-----------------------------=------------------------------------
Standard & Poor's Ratings Services has placed its ratings on six
rated Ukrainian local and regional governments (LRGs) on
CreditWatch negative following a similar action on the sovereign.
These entities include Kyiv, Lviv, Dnipropetrovsk, Ivano-
Frankivsk, Lugansk, and the Autonomous Republic of Crimea.

The city of Odessa (B+/Watch Neg/--) remains on CreditWatch
negative where it was placed on Oct. 15, 2008.

"We will resolve the placement of the six LRGs on CreditWatch
following the resolution of the CreditWatch on Ukraine.  The
ratings on the LRGs will be affected if any downside action on
the sovereign takes place following the CW resolution," said
S&P's credit analyst Boris Kopeykin.

"Regarding Odessa, we also need to be certain that the city will
have access to enough free cash to repay its bonds, which mature
on Dec. 31, 2008.  If the city experiences difficulties accessing
its cash deposits, and/or its overall amount of cash falls below
debt service levels, we would likely lower the ratings," Mr.
Kopeykin added.


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


AERCO LTD: S&P Drops Rating on Class A-3 Notes to 'BB'
------------------------------------------------------
Standard & Poor's Ratings Services has lowered its rating on the
class A-3 notes issued by AerCo Ltd. to 'BB' from 'BBB-' and
affirmed its 'A-' rating on the class A-4 notes.  At the same
time, S&P removed the ratings from CreditWatch negative, where
they were originally placed on March 25, 2008.  Additionally, S&P
assigned a negative outlook to the class A-3 notes.  The outlook
on the class A-4 notes is stable.

In addition to accounting for historically higher fuel prices and
the slowing global economy, the downgrade of the class A-3 notes
primarily reflects S&P's view of ongoing value declines in the
transaction's portfolio (as the value of the portfolio is an
indicator of future lease revenues) and the payment priority
mechanisms within the structure.

Like other aircraft securitizations that were originated in the
late 1990s to early 2000s, the fleet in the AerCo Ltd. transaction
has a significant concentration of older aircraft that were
designed in the 1980s, some of which, in S&P's view, are likely to
become economically obsolete earlier than originally anticipated.
The weighted average age of the fleet in the AerCo Ltd.
transaction, which was issued in 2000, is approximately 16 years.
These planes (which include older B737s and MD80s) are less fuel
efficient than newer models, which has led S&P to adjust its
useful life and depreciation assumptions.  Furthermore, S&P
believes the slowing global economy and the likelihood of a
recession in the U.S. will continue to put additional pressure on
the airline industry, and in its view, lessen the credit quality
of lessees contained in the securitization pool.

In evaluating this transaction, S&P used the same methodology in
its analysis and initial rating of previous aircraft operating
lease pool securitizations.  As part of this analysis, S&P
reviewed various sets of cash flow stress tests designed to
capture the impact of a number of risk factors and their timing
on the cash flow expected to be generated by the 48 aircraft in
the fleet. These cash flow stress assumptions are consistent with
those applied to recent pooled aircraft asset-backed
securitizations and are more conservative than those used when
this transaction was originally evaluated, reflecting sector
performance after 2000.

Typical Cash Flow Stresses

                                         A(ii)      BB(ii)
                                         -----      ------
Depression 1 start(i)
Depression 2 start                    2008-2012   2008-2012
Depression 3 start                    2014-2017   2014-2017
Length of depression (mos)             48          48
Lessee defaults – depression 1(i)
Lessee defaults – depression 2 & 3     60-65%      48-52%
Lease rate decline – depression 1(i)
Lease rate decline – depression 2 & 3  68-75%      38-47%
Repossession/remarketing time (mos)    8-11        7-9
Lease term – depression 1(i)
Lease term – depression 2 (mos)        36          36
Repossession costs (US$ mil.)          0.2-1.5     0.2-1.5

(i) At inception, S&P assumed that the securitization would
experience three economic depressions.  For mid-stream
projections, S&P assumes that the first depression has already
taken place. In these cases, S&P runs the two remaining
depressions for the life of the transaction.

(ii) Rating stress analysis; not indicative of the credit ratings
assigned to the AerCo Ltd. notes.

The A-3 notes, which were not refinanced on the expected maturity
date in 2002 during adverse market conditions, have an outstanding
balance of US$448.75 million.  After the missed refinancing, the
scheduled amortization for the A-3 notes didn't commence until
early 2006.  Therefore, the principal reduction of the A-3 notes
will experience challenges given the current appraised value of
the fleet (US$640.63 million) and S&P's forecasted cash flows
generated by the planes in the securitization.  The A-3 notes are
ahead of their scheduled amortization, according to the base pool
factors detailed in appendix A of the trust indenture.
Essentially, base and extended pool factors are principal
amortization schedules established by the issuer at deal inception
to allocate principal among subclasses.  Although the A-3 note is
currently ahead of its scheduled amortization (refer to base and
extended pool factors in trust indenture appendix A) and currently
receives the bulk of principal, during its stressed cash flow
runs, S&P expects most, if not all, available principal would be
diverted to the A-4 holders to the detriment of the A-3 tranche.

On the other hand, S&P affirmed its rating on the class A-4 notes,
which have a significantly smaller outstanding balance (US$46.32
million) than the A-3 notes, and continue to amortize according to
the base pool factors detailed in appendix A of the trust
indenture.  During its stressed cash flow runs, S&P expects the A-
4 notes to fall behind base or extended pool factor schedules.
However, S&P also expects the structural payment mechanisms to
help the principal payments to the A-4 notes ultimately "catch
up."  The transaction's "catch up" mechanism, along with the
class' small outstanding balance, shortens the weighted average
life of this tranche and ultimately enhances its ability to
withstand S&P's 'A-' rating stress threshold.

S&P's rating outlook for the A-3 tranche is negative and its
outlook for the A-4 tranche is stable.  Its rating actions and
outlooks incorporate S&P's current expectations of a downturn in
the global aviation market, driven by recessions or slow growth
in all regions of the world, and high jet fuel prices.  Still, if
the downturn is materially worse than it anticipates, S&P could
lower the rating on the A-3 notes further.  Conversely, if the
downturn turns out to meet its expectations and S&P sees the
beginnings of a sustained recovery, it could revise the rating
outlook for this class of securities.  The stable outlook
associated with class A-4 reflects its shorter weighted average
life and smaller outstanding balance.


BRITISH AIRWAYS: Drops Fuel Surcharge by Up to GBP13
----------------------------------------------------
British Airways dropped its fuel surcharge by as much as
GBP13, starting midnight of Oct. 15, 2008.

World Traveller passengers will pay GBP13 less on longer sectors
and GBP10 less on shorter sectors.  World Traveller Plus
passengers will pay GBP6.50 less on longer sectors and GBP5 on
shorter sectors.

The changes will mean:

   -- For World Traveller, the surcharge for long haul flights
      of more than nine hours will drop by GBP13 per flight from
      GBP109 per flight to GBP96 per flight.

   -- The surcharge for long haul flights of less than nine
      hours will drop by GBP10 per flight from GBP78 per flight
      to GBP68 per flight.

   -- For World Traveller Plus, the surcharge for long haul
      flights of more than nine hours will drop by GBP6.50 per
      flight from GBP121 per flight to GBP114.50.

   -- The surcharge for long haul flights of less than nine
      hours will drop by GBP5 per flight from GBP88 per flight
      to GBP83 per flight.

                      About British Airways

Headquartered in Harmondsworth, England, British Airways Plc
-- http://www.ba.com/-- operates of international and domestic
scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British
Airways plc and a number of subsidiary companies including in
particular British Airways Holidays Ltd.  and British Airways
Travel Shops Ltd.  BA has offices in India and Guatemala.

                         *     *     *

British Airways Plc continues to carry a "Ba1" senior
unsecured debt rating from Moody's with a stable outlook.


GREGOR SHORE: Calls in Administrators from Deloitte and Touche
--------------------------------------------------------------
Gregor Shore has gone into administration.  Messrs. John Reid and
Patrick Lannagan, of Deloitte and Touche, were appointed joint
administrators, Erikka Askeland and Lindsay McIntosh of Scotsman
report.

The company said, "Due to the material downturn in the housing
market, Gregor Shore has been suffering severe cash-flow problems
and the directors concluded they had no other option than to
appoint administrators."

Gregor Shore -- http://www.gregorshore.co.uk/-- is a luxury
property developer on the coast of Leith.  The company employs 120
personnel.


KAUPTHING SINGER: Liquidator In Talks with Potential Buyers
-----------------------------------------------------------
Michael Simpson, the provisional liquidator of Kaupthing Singer
and Friedlander (Isle of Man) Ltd. (KS&FIOM), on Tuesday said he
has entered preliminary negotiations with parties interested in
purchasing parts of the business, and has instructed lawyers in
London and Iceland to assist him in attempting to receive assets
of the bank currently held in those locations.

According to IOM Today, there have been at least three expressions
of interest from other banking institutions.

                Provisional Liquidation Order

On Oct. 9, 2008, the Isle of Man Court made a provisional
liquidation order in relation to KS&FIOM.  Subsequently,
Mr. Simpson of PricewaterhouseCoopers was appointed as provisional
liquidator of the bank.

               Suspension of Banking License

On Oct. 8, 2008, The Isle of Man Financial Supervision Commission
suspended KS&FIOM's banking license, accordingly KS&FIOM has
ceased to trade as a bank.  The provisional liquidation is
necessary because of the bank's financial position and to ensure
that the best interests of customers and creditors are served.

                       Operations

Mr. Simpson said the purpose of the liquidation order is to seek
to ensure the best long term solution can be adopted for customers
and creditors.  He stated KS&FIOMw ill continue to manage its
current loan book and the provisional liquidator will be seeking
to find purchasers for the bank's business and loan book to
maximize recovery for customers and creditors.  He added the
existing mortgage/loan agreements of borrowers remain in place,
the repayment profile of your mortgage/loans is not being changed
and borrowers are not being expected to refinance elsewhere.  He
stressed borrowers should continue to make payments in the usual
way.

Mr. Simpson disclosed the directors are still the directors of
KS&FIOM, however the provisional liquidator is ultimately
responsible for the bank.  However, he noted the directors and
existing management structure will remain in place and the
directors and their existing management team will be assisting the
provisional liquidator with the day-to-day operations.

       About Kaupthing Singer & Friedlander (Isle of Man)

Kaupthing Singer & Friedlander (Isle of Man) Ltd. --
http://www.kaupthingsingers.co.im/-- is the UK subsidiary of
Iceland-based Kaupthing Bank hf.


LE FROG BISTRO: Calls in Begbies Traynor as Administrators
----------------------------------------------------------
Le Frog Bistro has gone into administration.  Following the
collapse of its owner, Wolfteam Limited, the company has called in
administrators from Begbies Traynor, Dominic Walsh of timesonline
reports.

Begbies Traynor in turn has utilized the services of Christie &
Co., a property agent, to sell all 5 of Le Frog's outlets.


LEHMAN BROTHERS: Hedge Funds Await UK Unit's US$65BB Frozen Assets
------------------------------------------------------------------
Richard Baker, the head of the US Managed Funds Association (MFA),
one of America's biggest hedge fund industry groups, has warned
that a failure to free up assets frozen in Lehman Brothers
Holdings, Inc.'s could trigger "systemic" losses, Times Online's
Suzy Jagger writes.

The Wall Street Journal says administrator PricewaterhouseCoopers
confirmed Wednesday that when Lehman's main European unit, Lehman
Brothers International (Europe), entered administration last
month, it took with it US$65 billion in client assets, made up of
US$45 billion in long positions and US$20 billion in short
holdings.

Delays could be "disastrous for UK plc," Mr. Baker said in a
letter to Mervyn King, Governor of the Bank of England, noting
that the handling of the wind-up of Lehman Brothers and the
carving up of its remaining assets is adding new uncertainty to
already panicky global markets, Times Online relates.

In the letter cited by Times Online, Mr. Baker explained that
releasing the bank's securities would give the market "a much
needed boost of liquidity and confidence."

                          Margin Calls

Tom Cahill of Bloomberg News reports that Lehman Brothers' hedge-
fund clients may have to pay more collateral on the frozen assets
as the value of the securities continues to fluctuate along with
the markets, a process known as a margin call.

Lehman's London-based prime brokerage has about 3,500 active
clients including hedge funds that own about US$45 billion in
securities, Steven Pearson at PricewaterhouseCoopers told
Bloomberg News in an interview.  Hedge funds relied on Lehman to
provide loans, clear trades and handle administrative tasks.
According to Bloomberg News, MKM Longboat Capital Advisors LLP
will shutter its US$1.5 billion Multi-Strategy fund in part
because assets are stuck at Lehman while Olivant Ltd., run by ex-
UBS AG President Luqman Arnold, said this month it can't access a
2.78% UBS stake it held through Lehman.

                      About Lehman Brothers

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

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

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

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

Dennis F. Dunne, Esq., Luc A. Despins, Esq., and Wilbur F. Foster,
Jr., Esq., at Milbank, Tweed, Hadley & Mccloy LLP, in New York,
and Paul Aronzon, Esq., and Gregory A. Bray, Esq., at Milbank in
Los Angeles, California, represent the official unsecured
creditors committee.

                International Operations Collapse

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

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

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

                           *     *     *

As reported by the Troubled Company Reporter on Oct. 14, 2008,
Moody's Investors Service downgraded the Counterparty Ratings
of Lehman Brothers Financial Products Inc. and Lehman Brothers
Derivative Products Inc. from Baa3 with direction uncertain to B1
on review for downgrade.


NORTHERN ROCK: Reports Encouraging Progress Against Plan
--------------------------------------------------------
Northern Rock plc continues to make good progress towards
achieving the objectives set out in its Business Plan approved in
March 2008.

Ron Sandler, Chairman, said, "I am pleased with the progress
Northern Rock is making.  We have continued to repay the
Government loan well ahead of plan, our deposit base is growing,
our restructuring program has been completed successfully, and a
new and stronger management team is now in place.  These are
encouraging developments.  However, dislocated financial markets
and falling house prices mean that the pace of progress achieved
to date will be significantly more challenging to maintain going
forward."

                  Repayment of Government Loan

The initial priority of the Plan is repayment of the Government
loan and Northern Rock is repaying the loan well ahead of target.
At Sept. 30, 2008, the net balance outstanding on the loan stood
at GBP11.5 billion (Dec. 31, 2007: GBP26.9 billion; June 30, 2008:
GBP17.5 billion), a reduction of GBP15.4 billion since the start
of the year.  The net loan amount is stated after the deduction of
Northern Rock's liquidity deposits held with the Bank of England
of GBP7.1 billion at Sept. 30, 2008 (June 30, 2008: GBP3.5
billion).

The Company's success in repaying the Government loan has been
achieved primarily through its mortgage redemption program,
providing assistance to customers to access new products with
alternative lenders.  This program will continue, although the
Company anticipates that it will be more challenging in the future
to maintain the 2008 redemption levels, given the significant
slowdown in the housing market and reduced availability of
alternative mortgage financing.

As the Company announced in its Half Year Results for 2008, the
Bank of England loan facilities were novated to HM Treasury during
August.

                            Funding

Northern Rock has continued to attract new retail deposits in the
third quarter, with total retail funding balances rising to
GBP17.2 billion at the end of Sept. 2008, an increase of GBP3.0
billion since the end of June.  UK retail deposits represent
GBP15.5 billion of this total.

The Company has committed that it will not take unfair advantage
of Government support while in receipt of State aid and remains
within its self-imposed Competitive Framework.  This includes
undertakings to avoid market-leading products and to limit
Northern Rock’s share of UK retail deposit balances to 1.5%.

As a consequence of the turmoil in financial markets, the rate of
retail deposit inflows to Northern Rock increased markedly during
Sept.  In response, the Company has taken a number of actions in
recent weeks to uphold its competitive commitments.  These include
withdrawing a number of key products, lowering savings rates and
introducing caps on the size of new deposits.  The Company will
continue to monitor the situation and will take action as
necessary to ensure that it remains compliant with the Framework.
No breach of the Framework has occurred since its introduction at
the end of March.

Non-retail funding balances continue to reduce as the balance
sheet contracts as planned.  In July 2008, Northern Rock resumed
new wholesale funding albeit on a modest scale, reflecting market
conditions and the Company's intention to achieve a more balanced
mix of retail and non-retail funding.  Since the resumption,
GBP927 million of new wholesale funds have been raised.

                       Credit Quality

The deterioration in economic and market conditions has resulted
in mortgage arrears increasing for Northern Rock, and the sector
as a whole.  In addition, the reduction in the size of Northern
Rock’s total mortgage book has contributed to an increase in the
proportion of the book in arrears.  At the end of Sept. 2008,
residential arrears over three months were 1.87%, compared with
1.18% at the end of June 2008.  The arrears figure on Together
loans, which is included in the above, has continued to increase
at a faster rate than non-Together loans.  Together loans also
accounted for the majority of the property possessions during the
third quarter. The Company’s possessions stock increased to 4,201
at the end of Sept. 2008 (end-June 2008: 3,710).

Northern Rock is continuing to strengthen its debt management
capabilities, including recruitment of new management and staff,
redesign of core strategies and investment in new systems.
Notwithstanding these actions, the trends outlined above are
anticipated to continue, resulting in further expected increases
in the Company’s loan loss provisions going forward.

                         Organization

At the end of August, Northern Rock completed its formal
redundancy consultation process and now employs around 4,500
staff, a reduction of approximately 1,500 from the start of the
process.  This reduction was achieved with no operational
disruption or erosion of customer service.  The Company worked
hard to minimize the number of compulsory redundancies as part of
this process and managed to redeploy over 600 staff into new roles
within the business.  It continues to work closely with the
Regional Development Agency, One NorthEast, to offer comprehensive
outplacement support services to help those made redundant find
alternative employment.

As part of the restructuring, Northern Rock has reorganized its
business operations to support the delivery of its key objectives,
including a significant enhancement of its risk and control
environment.

Northern Rock has completed the introduction of its company-wide
incentive scheme as set out in the Plan. This scheme was designed
alongside the Plan in March, although its introduction was
deferred until the restructuring program had been completed.  It
applies to all staff at Northern Rock, subject to certain
qualification criteria, and delivers rewards based upon the
Company achieving its core Plan objectives.

The Company has also taken a number of steps to strengthen
significantly the management team.  Mr. Gary Hoffman joined the
Company as Chief Executive on Oct. 1, 2008.  He leads a
substantially reconstituted Executive team with some key new
external appointments, including Chief Risk Officer, HR Director
and Director of Debt Management.

                           Governance

The Board has been further strengthened in recent weeks by the
appointments of Messrs. Kent Atkinson, Richard Coates and Bob
Davies as Non-Executive Directors.  These appointments bring
valuable further experience to the Board and will provide
considerable assistance to the Company as it proceeds towards
delivery of the Plan.

On Sept. 7 and Sept. 30, 2008, respectively, Messrs. Andy Kuipers
and Stephen Hester resigned from the Board.  Following Mr.
Hester’s departure, Mr. John Devaney has been appointed Chair of
the Company's Remuneration Committee.  Mr. Simon Laffin has
confirmed his intention to step down from the Board on
Dec. 31, 2008, at which time he will also cease to be Chair of the
Audit Committee, and will be replaced in this role by
Mr. Atkinson with effect from Jan. 1, 2009.

A review of the conduct of the previous Board in respect of
funding and liquidity has been undertaken with the assistance of
external advisors, Freshfields and KPMG Forensic.  The Board has
concluded that there are insufficient grounds to proceed with any
legal action for negligence against the former Directors, and has
no intention of bringing any such action.  The Board has also
completed a similar review in respect of the Company’s auditors
and has determined that no action is warranted.

                            Outlook

As set out in the Company's Plan in March 2008 and reported for
the first six months of the year, Northern Rock will be
significantly loss-making in 2008, due to one-off restructuring
costs, higher funding costs and the deteriorating credit
environment.  The extremely difficult housing and mortgage market
conditions which have emerged in recent months will make the
Company's achievement of its objectives more challenging going
forward.  Notwithstanding these conditions, however, the Company's
progress to date is encouraging.  The balance sheet continues to
contract, retail savings balances continue to grow, the loan to
the Government is being repaid rapidly, the restructuring of the
organization has been satisfactorily concluded, and a new, high
quality management team has been recruited.

As announced in August, HM Treasury has committed to reinforce the
Company's capital base through conversion into Ordinary shares of
its holding of GBP400 million of Preference shares and swapping up
to GBP3 billion of the outstanding debt into equity.  These
measures will not involve any cash transfer to Northern Rock.  The
Company is working with HM Treasury to finalize the package and
obtain State aid approval.

Over time the emphasis of the Plan will shift from repaying the
government loan towards restoring profitability to allow, in due
course, the lifting of the Government's deposit guarantees and the
return of the Company to private ownership.

                       About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                          *     *     *

Northern Rock plc continues to carry a B1 subordinated debt
rating, a B3 junior subordinated rating, a C preferred stock
rating and an E+ bank financial strength rating from Moody's with
developing outlook.  The bank still carries an 'F' individual
rating from Fitch.


OXFORD UNIVERSITY: Losses GBP30 Mil. on Icelandic Banking Crisis
----------------------------------------------------------------
The University of Oxford faces losses of up to GBP30 million after
becoming yet another public body to admit it had money trapped,
The Telegraph reports.

According to the report, the Audit Commission refused to deny that
it had up to GBP10 million frozen in Reykjavik, while a spokesman
said he is "not in a position to confirm anything at the moment."

The disclosure, The Telegraph says, will be a blow to its
credibility and will help the defense of councils and other public
authorities who argue that their decision to save in Iceland was
not irresponsible.  The commission Web site declares that it aims
to drive "economy, efficiency and effectiveness in local public
services to deliver better outcomes for everyone," the report
notes.  The disclosure came as savers and councils were told they
may be able to recover only a third of trapped deposits.

The size of Oxford's stranded deposits eclipses those of other
universities, including Cambridge, Manchester and the Open
University, which have also been blocked from access to funds,
according to the report.

The Local Government Association, The Telegraph relates, said
about GBP300 million frozen in British bank branches could be
released sooner than it expected.  But another GBP558 million was
stuck in Iceland, and recovery was likely to be a slow process.

Oxford said it had GBP30 million in three banks, Landsbanki,
Glitnir and Kaupthing Singer and Friedlander, representing five
per cent of its cash deposits. Some belonged to 17 of Oxford's
individual colleges, which put money in a central fund controlled
by the university finance committee.

A spokesman said colleges would be fully reimbursed – leaving the
university to carry the financial burden.  Giles Kerr, Oxford's
director of finance, said students and academics would not suffer.

But it comes as a blow to the institution as it struggles to
compete with the financial muscle of Ivy League universities in
the US.

Oxford, based on the report, has GBP600 million in cash deposits
and an annual turnover of more than GBP600 million.  It also has
an overall endowment wealth of around GBP3.4 billion.  But its
Icelandic investments dwarf those of other universities.

At least 12 universities have GBP77 million in the country's
banks, The Telegraph notes.  Cambridge placed GBP11million (3% of
its cash deposits), Manchester Metropolitan invested
GBP10 million, the Open University GBP6.5 million, Manchester
University GBP5 million and Glyndwr University, Wrexham, has up to
GBP3 million in frozen accounts.

Councils stand to lose at least GBP858 million in Icelandic banks,
The Telegraph reveals.  But the LGA said authorities may be able
to recover a third of taxpayers' funds within several weeks.

The Telegraph writes that emergency finance teams have gone into
three councils facing the biggest losses, including Uttlesford, in
Essex, and Wyre Forest, in Worcestershire.  A spokesman for
Uttlesford said services would not be affected, though it had
GBP2.2 million in Landsbanki.  Wyre Forest council in
Kidderminster, had GBP9 million in three Icelandic banks but said
there was no immediate concern over services.

            Oxford University's Release on Exposure to
                     Icelandic Banking Crisis

The University of Oxford said it welcomed the engagement of the
Higher Education Funding Council for England (HEFCE) in the issue
of the higher education sector’s exposure to the Icelandic banking
crisis.  The University's Director of Finance has written to HEFCE
urging it to do all in its power to help protect the higher
education sector from the impact of the crisis.

The Director of Finance, Giles Kerr, sent the letter to HEFCE,
which is the regulator of universities in England, following
extensive consultations.

He said: "It is important that we get co-ordinated action and I
know that HEFCE, DIUS and the Treasury are well aware of the
challenges faced by the sector.  We expect them to do all they can
to protect the position of higher education institutions, which
are vital to the country's future prosperity."

The University's own exposure in Iceland is about five per cent of
its overall cash pool, which in itself represents only a small
part of the collegiate University's overall wealth.

Mr. Kerr said he had contacted colleges who had money in the
University cash pool to explain the position.  Mr. Kerr said that
colleges should be assured that the University's cash pool has
more than sufficient liquidity to meet their requirements.  He
also said that the University will make every effort to recover
deposits in Iceland in full.

Mr. Kerr added: "This is clearly a difficult time across the
economy, and no-one is immune.  However, the finance committee is
monitoring the situation closely and we are taking all necessary
and available steps."

The University has made no Icelandic deposits in the last 18
months.  The existing ones were made with institutions with fully
assessed and approved creditworthiness.  Iceland was rated AAA
(the highest credit rating) at the time the investments were made.
The fixed-term contracts have maturity dates between next month
and next June.  University policy has been, and is, to have a wide
a portfolio of deposits in order to spread risk, and to review
them regularly.

                  About the University of Oxford

The University of Oxford aka Oxford University or Oxford, --
http://www.ox.ac.uk/-- located in the city of Oxford,
Oxfordshire, England, is the oldest university in the English-
speaking world.  It is also regarded as one of the world's leading
academic institutions.  The name is sometimes abbreviated as Oxon.
in post-nominals (from the Latin Oxoniensis), although Oxf is
sometimes used in official publications.  The University has 38
independent colleges, and 6 permanent private halls.  The
University of Oxford is a member of the Russell Group of research-
led British universities, the Coimbra Group (a network of leading
European universities), the League of European Research
Universities, International Alliance of Research Universities and
is also a core member of the Europaeum.  Academically, Oxford is
consistently ranked in the world's top 10 universities.  For more
than a century, it has served as the home of the Rhodes
Scholarship, which brings highly accomplished students from a
a number of countries to study at Oxford as postgraduates.


STORM FUNDING: Appoints Joint Administrators from PwC
-----------------------------------------------------
Anthony Victor Lomas, Steven Anthony Pearson, Dan Yoram
Schwarzmann and Michael John Andrew Jervis of
PricewaterhouseCoopers LLP were appointed joint administrators of
Storm Funding Ltd. (Company Number 2682306) and Marble Commercial
Funding Ltd. (Company Number 2682316) on Sept. 24, 2008.

The company can be reached at:

         Storm Funding Ltd.
         25 Bank Street
         London
         E14 5LE
         England


SWANSONS LTD: Brings in Joint Administrators from Deloitte
----------------------------------------------------------
Richard Michael Hawes and Robin David Allen of Deloitte & Touche
LLP were appointed joint administrators of Swansons (Lighting and
Electrical) Ltd. (Company Number 03644433) on Oct. 1, 2008.

The company can be reached at:

         Deloitte & Touche LLP
         Blenheim House
         Fitzalan Court
         Newport Road
         Cardiff
         CF24 0TS
         England


TAG ENVIRONMENTAL: Calls in Administrators from Tenon Recovery
--------------------------------------------------------------
David Willis and Jonathan Philmore of Tenon Recovery were
appointed joint administrators of Tag Environmental Ltd. (Company
Number 04367992) on Sept. 26, 2008.

The company can be reached at:

         Tag Environmental Ltd.
         c/o Tenon Recovery
         Suite 5c
         Tower House Business Centre
         Fishergate
         York
         YO10 4UA
         England


TURKEY REALESTATE: Taps Moore Stephens to Administer Assets
-----------------------------------------------------------
Simon Geoffrey Paterson and David Ronald Elliott of Moore Stephens
LLP were appointed joint administrators of Turkey Realestate
Direct Ltd. (Company Number 05130339) on Oct. 2, 2008.

The company can be reached at:

         Turkey Realestate Direct Ltd.
         Victory House
         Quayside
         Chatham Maritime
         Kent
         ME4 4QU
         England


VIRGIN MEDIA: Seeks Amendments to Senior Facilities Agreement
-------------------------------------------------------------
Virgin Media Inc. is seeking the consent of its senior lenders to
amendments to its senior facilities agreement which would,
alongside other changes, roll back bank amortization payments owed
to participating lenders to June 2012.  Virgin Media's top ten
relationship banks have unanimously confirmed their support for
the proposed amendments.

          Background to and Reasons for Amendment Request

Virgin Media's senior facilities agreement currently comprises
GBP4,324 million of term loans in A, B and C tranches, in addition
to a GBP100 million revolving facility.  The company has already
repaid approximately GBP900 million of its indebtedness under its
senior facilities agreement from cash generated from its
operations and from the proceeds of subordinated indebtedness
since March 2006.  The company is on track to meet its debt
obligations in the near term and expects to fund its next material
amortization payment, due in Q1 2010, from available cash
generated from its operations.

Virgin Media originally anticipated entering into a new credit
facility by mid 2009 to refinance its obligations under its senior
facilities agreement.  However, in light of the disruption to the
credit markets, the company has decided to proactively address its
amortization payments that are due in 2010 and 2011.  The proposed
amendments will allow Virgin Media significantly more time to seek
a complete refinancing of the principal amounts that will remain
outstanding under its senior facilities agreement after the
amendment process is complete.

Virgin Media has brought in a new experienced management team that
is focusing on the core strengths of the business and maximizing
the generation of cash flow.  The company has also recently
expanded its Board with the addition of five new directors with
significant relevant experience.  By seeking the amendments today,
Virgin Media aims to remove any potential future concerns that
might otherwise arise over its ability to meet its principal
amortization obligations, thereby permitting its management to
focus on continuing to enhance operations and grow cashflow over
the next three years.  Virgin Media therefore is requesting
amendments that it believes are in the best interest of its
customers, stockholders, lenders, employees and other stakeholders
in light of the current status of the credit markets.

                    The Proposed Amendments

The principal aims of the proposed amendments to Virgin Media's
senior facilities agreement are to:

   (i) defer the remaining amortization payments and the final
       maturity date of the A tranches and the final maturity
       date of the revolving facility until June 2012;

  (ii) obtain agreement of the lenders under the B tranches to
       relinquish their pro rata right to prepayments until the
       A tranches are repaid, in order to enable greater paydown
       of remaining amortization payments under the A tranches;

(iii) permit additional high yield debt offerings with the net
       proceeds being applied to repay indebtedness under the
       senior facilities agreement;

  (iv) provide flexibility to add tranches to the senior
       facilities agreement that will have a maturity no earlier
       than the final maturity of the B tranches to be used to
       facilitate any  additional refinancing under the senior
       facilities agreement;

   (v) relax the leverage and interest coverage financial
       covenants and adjust definitions to accommodate, among
       other things, the impact of increased interest expense
       and other effects of these proposed amendments to the
       senior facilities agreement; and

  (vi) add an additional debt basket for tax-related financings
       to be used to repay debt under the senior facilities
       agreement.

The changes to the amortization schedule of the A tranches and the
final maturity date of the revolving facility, as well as the
relaxation of the financial covenant ratios, are conditional upon
Virgin Media's repayment of at least 20% (approximately GBP415
million) of the amounts currently outstanding under the A tranches
to those lenders.  The company will have until the later of April
30, 2009 and six months after the effective date of the proposed
amendments, subject to a further three-month extension right, to
satisfy this repayment condition.  Virgin Media must also make
simultaneous payments to those B lenders who have not consented to
relinquish their pro rata right to prepayments when it makes
repayments under the A tranches. Virgin Media anticipates using
cash generated from operations and cash on its balance sheet,
supplemented by potential proceeds from debt offerings or other
sources, to meet this repayment condition.

The proposed amendments require the consent of two-thirds of all
lenders under the senior facilities agreement as well as the
consent of two-thirds of all lenders other than the lenders under
the C tranche.  Additionally, each lender under the A tranches and
the revolving facility must individually consent to the changes to
the amortization schedule of the A tranches and the final maturity
date of the revolving facility and each lender under the B
tranches must individually consent to the change to their pro rata
right to prepayments in order for those provisions to be effective
with respect to that lender.  No minimum acceptance rate is
required for those individual consents, and lenders who do not
consent will continue to be subject to the current payment and
repayment provisions governing the A and B tranches and the
revolving facility.

After giving effect to the proposed amendments (assuming that 100%
of the lenders under the A and B tranches give their consent as
outlined above), Virgin Media's first amortization payment would
not be due until June 2012, after giving effect to the 20% paydown
of the A tranches.

The deadline for lenders to respond to the amendment request is
October 31, 2008.

In connection with the amendment request, Virgin Media will pay a
fee to each lender who consents to the proposed amendments in an
amount equal to 0.25% of the total participation of such lender.
In addition, Virgin Media will pay a fee to each lender under the
A and B tranches and revolving facility who individually consents
to be subject to the new provisions governing those tranches
(amendments (i) and (ii) above) in an amount equal to 1.00% of the
amount of that lender's participation in those tranches.  The
total amount of fees can be up to approximately GBP70 million.
Additionally, the lenders who individually consent to the new
provisions governing the new A tranches and revolving facility
will enjoy a margin increase of 1.375% compared to the margins on
the existing A tranches and revolving facility, and the lenders
who individually consent to the new provisions governing the new B
tranches will enjoy a margin increase of 1.50% compared to the
margins on the existing B tranches.

A copy of Virgin Media's letter requesting the consent of its
senior lenders to the proposed amendments to its senior facilities
agreement is available on the company's Web site at
www.virginmedia.com/investors.

Neil Berkett, Chief Executive of Virgin Media, said, "Virgin Media
has never been in better operational shape and generates
significant cashflow.  These amendments to our senior facilities,
if approved, will enhance our financial flexibility and allow
management to focus on continuing to enhance operations and grow
cashflow.

"We believe that these amendments are in the best interest of
customers, stockholders, lenders, employees and other stakeholders
in light of the current status of the credit markets."

                      About Virgin Media

Headquartered in London, England, Virgin Media Inc. (fka NTL
Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides
broadband, digital television, telephony, content and
communications services, reaching over 50% of the U.K. homes and
85% of the U.K. businesses.

                          *     *     *

Virgin Media continues to carry a Ba3 corporate family rating from
Moody's Investors Service with negative outlook.

The company still carries a 'B+' long-term corporate credit rating
from Standard & Poor's with positive outlook.

The company also carries Fitch's 'BB-' long-term issuer default
rating and 'B' short-term issuer default rating with stable
outlook.


VIRGIN MEDIA: Fitch Affirms LT Issuer Default Rating at 'BB-'
-------------------------------------------------------------
Fitch Ratings affirmed Virgin Media Inc.'s Long-term Issuer
Default Rating at 'BB-' with a Stable Outlook and Short-term IDR
at 'B', following its announcement that it is seeking amendments
to its senior secured facilities.  All instrument ratings are
affirmed, as detailed at the end of this release.

"Fitch views the proposed amendments to Virgin Media's bank
facility as a positive step towards addressing the refinancing
risk which the company will face in 2010," says Michelle De
Angelis, Senior Director in Fitch's European Leveraged Finance
team.

"Although, in the agency's view, Virgin Media's credit profile
should ordinarily have enabled an orderly refinancing of its
credit facilities when the time came, recent developments in the
global financial markets and the quantum of debt involved make
such a wholesale refinancing uncertain in the current environment.
Therefore, Virgin Media's initiative to restructure its
amortization and prepayment profile is a prudent step which, if
approved, would ensure a longer refinancing window for the
company."

The amendments proposed would, among other things, allow the
company to extend the final repayment date of at least part of its
amortizing Tranche A to 2012 from 2010-2011, and enable a higher
proportion of prepayments to be applied against the A tranches.
In return the company has offered to prepay a part of the
facilities which are extended, as well as to pay amendment fees to
its lenders.  Fitch views the proposed amendments as a form of
insurance policy against the risk that financial markets do not
recover in time.

As with any insurance, there is a cost to the company, but this
should be weighed against the reduction in risk which is achieved.
The agency believes the additional cost can be supported by Virgin
Media's strong cashflows in the coming years, and therefore there
would be no change to the ratings if the amendment is approved.

On the other hand, if the amendment is not approved, the agency
believes there still remain some other options open to Virgin
Media to address the increased refinancing risk, and would look to
discuss these further with the company at that time.

Instrument ratings affirmed:

  -- Virgin Media Investment Holdings Limited senior secured bank
     facility: 'BB+'

  -- Virgin Media Finance PLC's senior unsecured notes due 2014
     and 2016: 'BB'


VIRGIN MEDIA: S&P's Ratings Unhurt By Proposed Amendment Requests
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on U.K.-based telecommunications provider Virgin Media
Inc. (VMI) and related entities (B+/Positive/--) are unchanged by
the company's announcement that it has requested various
amendments to the senior facilities agreement.

The proposed amendments would, among other things, enable VMI to
defer the three remaining amortization payments and the final
maturity date under the A tranches and the final maturity date of
the revolving facilities until June 2012, to issue additional high
yield debt to repay the senior facilities, and to reset interest
coverage and leverage ratios.

S&P recognizes that such actions, if executed, would postpone
material repayments until 2012 and reduce senior debt.  As a
result, S&P believes that the lower amount of senior debt
outstanding at default might improve recovery prospects for
unsecured notes and, in particular, junior lien debt, given the
small size of this instrument and its sensitivity to any
redemption of the contractually senior credit facilities.

Rating upside for the corporate credit rating remains reliant on
VMI's continuing to focus on deleveraging to below 4x adjusted
total debt to EBITDA, steadily increasing both revenue and EBITDA,
and generating increasing free operating cash flow.


* S&P Examines Exposure of European CDO Transactions to AIG
-----------------------------------------------------------
Standard & Poor's Ratings Services said that 15 European cash flow
CDO transactions remain under close scrutiny following the recent
rating actions (taken on Sept. 15 and Sept. 17) affecting American
International Group Inc. and its affiliated entities.

While S&P considers that the collateralized debt obligations
(CDOs) are currently in line with its criteria, it continues to
monitor the transactions closely pending clarification of the
intentions of issuers and their counterparties.  AIG acts as
currency swap, currency option, or interest rate swap counterparty
to each of these transactions:

   * Adagio III CLO PLC
   * Alpstar CLO 2 PLC
   * BACCHUS 2007-1 PLC
   * Dalradian European CLO III B.V.
   * DRYDEN XIV - EURO CLO 2006 PLC
   * DRYDEN XV - EURO CLO 2006 PLC
   * eleX Alpha S.A.
   * Harvest CLO V PLC
   * Hudson CLO 1 B.V.
   * Jubilee CDO VII B.V.
   * Mercator CLO II PLC
   * Neptuno CLO I B.V.
   * OCI Euro Fund I B.V.
   * RMF Euro CDO V PLC
   * Wood Street CLO V B.V.

According to S&P's most recent counterparty and supporting party
criteria ("Revised Framework For Applying Counterparty And
Supporting Party Criteria" published on May 8, 2007):

"For 'AAA' rated structured finance transactions, any counterparty
rated at least 'A-1' (or 'A+' and above if it has no short-term
rating) would be eligible to provide derivatives (including
interest rate and currency swaps), provided it agrees to seek a
replacement or guarantor and post 'additional collateral' upon
becoming ineligible.  Counterparties that are financial
institutions will continue to be considered eligible while rated
'A-2' (or 'BBB+' to 'A' if it has no short-term rating) provided
it agrees to collateralize 100% of the contract's mark-to-market.
Any counterparty replacement or guarantee will be subject to
rating confirmation."

Cash flow CDOs arranged before May 2007 may have a minimum rating
requirement of 'A-1+' for currency swap and option counterparties.
However, in the listed transactions, the documentation requiring a
counterparty to seek a replacement or guarantor or post collateral
once it no longer satisfies the initial documented rating
requirement may differ in some respects from what is envisaged in
S&P's current criteria.

If S&P does not receive clarification of the intentions of issuers
and AIG following its recent rating action, it may place some or
all of the listed transactions under review for possible
downgrade.


* Financial Turmoil Hits UK Retail Sales, BRC-KPMG Monitor Shows
----------------------------------------------------------------
Turmoil in financial markets hit UK retailers with sales down six
months out of seven, according to the BRC-KPMG Retail Sales
Monitor for September 2008.

    * UK retail sales values fell 1.5% on a like-for-like basis,
      from September 2007, when they had risen 3.0%.  Sales have
      now been lower than a year ago in six of the past seven
      months, the worst since summer 2005.

    * Colder, wetter weather than last September hit sales but
      some sunny weekends helped end-of-season clearances of
      summer lines.

    * As in August, food and drink was the only sector to show
      sales significantly up on a year ago.  Clothing and
      footwear remained poor.  Furniture and homewares were well
      down on a year ago, despite continued discounts and
      promotions.

    * Turmoil in financial markets hit consumer confidence while
      increasing demands on household budgets meant shoppers
      looked for value and discounts and planned spending
      carefully, both for food and nonfood items.  Housing
      market weakness continued to hit big-ticket homewares.

Stephen Robertson, Director General, British Retail Consortium,
said: "The financial turmoil has further undermined consumer
confidence with like-for-like sales now down in six of the last of
seven months.  Furniture retailers suffered their worst
performance for at least eight years.  Food and drink sales grew
with hard-pressed families focusing on value ranges.  Impulse
buying is disappearing as people consider purchases carefully and
actively seek out promotions.  If you're after a bargain it's
great news as shops have responded with some of the most dramatic
discounts and offers in recent times.

"Retailers will be hoping customers are willing and able to spend
for Christmas as an antidote to the current gloom."

Helen Dickinson, Head of Retail, KPMG, said: "Despite the ongoing
turmoil in global and the UK financial markets and the doom and
gloom headlines, UK retail is not in freefall.  The UK consumer is
still spending and total retail sales were up in September on the
same period a year ago.  However, the trend continues in a
downward direction - the growth in total sales is marginal at 1%
and at like-for-like level there is a decline, which has been the
case for six of the last seven months. Inflation is behind much of
the growth in food, and this is the main driver of overall
performance.  The non-food sectors continue to suffer, with all
apart from footwear showing like-for-like falls in the month.  The
key question now is not what has happened but what will be the
impact of the current environment on sales over the crucial
Christmas trading period - many will be holding their breath."

Food & Drink – Joanne Denney-Finch, Chief Executive, IGD, said:
"September was a month of two halves – after a couple of quiet
weeks where spending on food slowed, the end of the month saw the
grocery sector bounce back to produce growth on a par with August.

"IGD research has shown that, despite financial worries, consumers
have been able to maintain the quality of what they are eating by
putting more effort into food shopping.  Over the last six months
shoppers have been making some changes.  For example, one in five
are walking to the shops more, a quarter are spending more time
over their shopping trips and a fifth are doing more meal
planning."

                        About KPMG

KPMG -- http://www.kpmg.co.uk/-- is a global network of
professional firms providing Audit, Tax, and Advisory services.
It operates in 144 countries and have more than 104,000
professionals working in member firms around the world.  The
independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss cooperative.  KPMG International
provides no client services.


* KPMG Appoints John Griffith-Jones as EMA Region Chairman
----------------------------------------------------------
John Griffith-Jones has been appointed as Chairman of KPMG's EMA
(Europe, Middle East, Africa and India) region.

EMA is the largest of KPMG's three regions, comprising more than
3,000 partners and 55,000 staff in 105 countries.

John, who will also continue in his role as joint Chairman of KPMG
Europe LLP, said: "I am looking forward to the challenge of
ensuring that KPMG continues to expand in a region that includes
some of the world's fastest growing economies.

"At a time when the global business environment is changing so
rapidly, part of my role will be to help member firms' clients
benefit from KPMG's increased international capability and
increase their awareness of our services and insights.

"I will also continue to maintain my focus on the UK marketplace -
meeting our senior clients, regulators and opinion formers."

Mr. Griffith-Jones joined KPMG in 1975, and held senior positions
in the Audit and Corporate Finance practices.  He was CEO of KPMG
in the UK for four years, and was appointed Chairman and Senior
Partner of KPMG's U.K. member firm in 2006.

He takes over from Ben van der Veer, who is also retiring as the
Senior Partner of KPMG's member firm in the Netherlands.  He was
EMA region Chairman for three years and successfully led EMA
through a period of unprecedented growth and change.

KPMG has also appointed Alan Buckle as head of its Global Advisory
practice, which accounts for more than 30,000 professional
partners and staff in KPMG member firms globally. Advisory works
with clients to help them grow their businesses, improve their
performance while enhancing governance and risk management.

Mr. Buckle was previously Chief Executive of KPMG's Advisory
practice in Europe, and led KPMG Consulting in Europe, prior to
its separation and sale.  His clients have included global
corporates and government agencies.

Mr. Buckle said: "This is a tremendously exciting time to be asked
to lead KPMG’s Advisory business, with fundamental changes
occurring to economies and businesses globally.  The shift of
industrial activity and capital flows further east and south are
changing the nature of the market for advisory services – both the
demand from our firms' clients and our own internal delivery
models.

"Key themes for the next few years will include unparalleled focus
on the fastest growing Eastern markets; the completion of the
integration of our mature Western practices; and harnessing the
ever increasing power of technology."

Tim Flynn, Chairman of KPMG International, said: "In this time of
unprecedented change for businesses globally, it is critically
important that KPMG continues to advance leaders who have
extensive international experience.  John Griffith-Jones and Alan
Buckle are outstanding professionals who are well suited to lead
in this rapidly changing world, and I am proud to welcome them as
they join our global executive team."

                          About KPMG

KPMG -- http://www.kpmg.co.uk/-- is a global network of
professional firms providing Audit, Tax, and Advisory services.
It operates in 144 countries and have more than 104,000
professionals working in member firms around the world.  The
independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss cooperative.  KPMG International
provides no client services.


* 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.


                 * * * End of Transmission * * *