TCREUR_Public/081027.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Monday, October 27, 2008, Vol. 9, No. 213

                            Headlines

A U S T R I A

APT AUTOMOTIVE: Claims Registration Period Ends November 10
DDM BAU & ELEKTRO: Claims Registration Period Ends November 14
FISCH OEG: Claims Registration Period Ends November 12
K.B.I. LLC: Claims Registration Period Ends November 13
M.S.I. LLC: Claims Registration Period Ends November 12


B U L G A R I A

PETROL AD: Moody's Junks Corporate Family Rating to Caa1


B E L G I U M

ETHIAS VIE: Fitch Lowers Subordinated Debt Rating to BB+ from BBB


F R A N C E

AKERYS HOLDINGS: S&P Junks Corporate Credit Rating to CCC from B
PARIS PRIME: Fitch Junks Ratings on Two Classes of Notes
SIRF CAPITAL: Fitch Cuts EUR50MM Liquidity Facility Rating to 'C'

* FRANCE: Banks Snob Government's EUR40BB Recapitalization Fund


G E R M A N Y

ARCFOREST GMBH: Claims Registration Period Ends Oct. 30
A-V GESELLSCHAFT: Claims Registration Period Ends Oct. 30
AZ TRANS: Claims Registration Period Ends October 30
BAYERISCHE HYPO: S&P Rates Class F Credit-Linked Notes at BB
HEIDELBERGCEMENT: Moody's Cuts LT Ratings to Ba1; Outlook Negative

KOEDI AUTOMOBILE: Claims Registration Period Ends October 31
ROCA DACH: Claims Registration Period Ends October 31
TERRATHERM GMBH: Claims Registration Period Ends October 31
WESTLB AG: May Seek Aid Under Germany's EUR500 Bil. Rescue Plan
WOHNUNGSBAU KARLSFELD: Claims Registration Period Ends Oct. 31

ZIMMER GMBH: Claims Registration Period Ends October 31


I C E L A N D

KAUPTHING BANK: Seeks Judicial Review Over Unit's Administration

* ICELAND: May Get GBP6.5 Billion Funding from U.K. and IMF


I R E L A N D

ARGON CAPITAL: Fitch Chips EUR9MM Synthetic CDO Rating to C
CHEYNE ABS: S&P Junks Ratings to CC and Removes Negative Watch
CLOVERIE PLC: S&P Cuts JPY500MM Credit-Linked Notes Rating to D
STARLING PLC: S&P Chips EUR4MM Credit-Linked Notes Rating to D


K Y R G Y Z S T A N

WABBI LLC: Creditors Must File Claims by November 26


N E T H E R L A N D S

EUROSAIL-NL: Fitch Downgrades Ratings on Two Tranches to Low-B


R U S S I A

AMUR-PROM_INDUSTRY LLC: Creditor Must File Claims by November 10
ASTRAKHAN SHIPBUILDING: Creditors Must File Claims by Nov. 10
BANK SEVERNAYA: Moody's Junks Currency Deposit Ratings to Caa2
DALNEVOSTOCHNY HEATING: Creditors Must File Claims by Nov. 10
EGORYEVSK TIMBER: Creditors Must File Claims by December 10

MOBILE OJSC: Fitch Assigns 'BB+' Rating on RUB10BB Proposed Bonds
PROM-TEKH LLC: Court Names O. Voronin as Insolvency Manager
STEKLO-MASH-52: Creditor Must File Claims by November 10
TOPSEL LLC: Creditors Must File Claims by December 10

* CITY OF OMSK: Moody's Assigns Ba3 Ratings; Outlook Stable
* Moody's Affirms Positive Outlook on Russia's Key Ratings


T U R K E Y

* TURKEY: S&P Affirms BB-/B Foreign & BB/B Local Currency Ratings


U K R A I N E

AFAMIYA LTD: Creditors Must File Claims by October 31
BANK KHRESCHATYK: Fitch Chips UAH70MM Covered Bonds Rating to 'B'
DRUZHBA LLC: Creditors Must File Claims by October 31
ENERGYRESOURCE LLC: Creditors Must File Claims by October 31
FORUM LTD: Creditors Must File Claims by October 31

INTELLEKT-SERVICE: Creditors Must File Claims by October 31
ONIS LLC: Creditors Must File Claims by October 31
UKRAINE AUTO: Fitch Cuts Rating on Class B Loan to 'B-'
UKRAINE MORTGAGE: Fitch Trims Class B Loan Rating to 'B'
REPAIR SERVICE: Creditors Must File Claims by October 31

SIGMA-PLAST LLC: Creditors Must File Claims by October 30
SUPPLY INDUSTRIAL: Creditors Must File Claims by October 31


U N I T E D   K I N G D O M

AD-AIR GROUP: Joint Liquidators Take Over Operations
ADVANCE MACHINERY: Taps Joint Administrators from Tenon Recovery
AIRTEK SCAFFOLDING: Taps BDO Stoy Hayward to Administer Assets
AMERICAN INT'L: U.K. Clients Blame Banks on AIG-Related Losses
ARKAGA HEALTHCARE: Calls in Joint Administrators from PwC

BACH HOMES: Appoints Joint Administrators from Vantis
BARLAND LTD: Taps Liquidators from BDO Stoy Hayward
BORE ELECTRICAL: Brings in Liquidators from Moore Stephens
BRITANNIA BULK: Moody's Reviews B2 CFR for Possible Downgrade
BROOKLANDS EURO 2001-1: Fitch Slashes Class E Notes Rating to 'C'

BROOKLANDS EURO 2002-1: Fitch Cuts Ratings on Nine Notes Classes
BROOKLANDS EURO 2002-2: Fitch Junks Ratings on Two Notes Classes
BROOKLANDS EURO 2004-1: Fitch Junks Ratings on Four Notes Classes
BROOKLANDS EURO 2005-1: Fitch Junks Ratings on Four Notes Classes
CASTLE FINANCE: S&P Removes WatchNeg & Withdraws CCC Credit Rating

CHEMIX LTD: Calls in Joint Administrators from Grant Thornton
CHERRY TREE: Appoints Joint Administrators from PwC
CHESS II: S&P Removes Negative Watch & Withdraws Credit Ratings
COOLFAST LTD: Taps Joint Administrators from Tenon Recovery
DOLPHIN CONTRACT: Joint Liquidators Take Over Operations

EXCALIBUR FUNDING: S&P Downgrades Rating on Class A Notes to BB+
GLOBE PUB: Fitch Trims GBP57MM Class B1 Notes Rating to 'BB-'
HILLCO CONSTRUCTION: Taps Vantis to Administer Assets
LEHMAN BROTHERS: Pension Scheme Enters the PPF Assessment Period
MADDISON BISTROS: Appoints Liquidators from BDO Stoy Hayward

NUCAM SYSTEMS: Calls in Joint Administrators from Tenon Recovery
PASTICHE BISTRO: Appoints Liquidators from BDO Stoy Hayward
T. SMITH: Brings in Liquidators from BDO Stoy Hayward
TATA STEEL: S&P Shifts Outlook; Affirms BB-/B Corp. Credit Ratings
UPSTAIRS LTD: Appoints Liquidators from Smith & Williamson

VERTO DEVELOPMENTS: Taps BDO Stoy Hayward to Administer Assets
XPRESS FLOORS: Andrew Appleyard Leads Liquidation Procedure

* UNITED KINGDOM: Recession Nears and Insolvencies Rise, FT Says
* Mercer Says Defined Benefit Pension Schemes Still Face Risks
* S&P Analyzes Effects of Market Events on European CMBS Tranches

* BOND PRICING: For the Week Oct. 20 to Oct. 24, 2008


                         *********


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


APT AUTOMOTIVE: Claims Registration Period Ends November 10
-----------------------------------------------------------
Creditors owed money by LLC APT Automotive Plasma Technology
(FN 259474f) have until Nov. 10, 2008, to file written proofs of
claim to the court-appointed estate administrator:

         Clemens Jaufer
         LLC Scherbaum/Seebacher Rechtsanwalte
         Einspinnergasse 3/II
         8010 Graz
         Austria
         Tel: 0316/832460
         Fax: 0316/832460-20
         E-mail: office&scherbaum-seebacher.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Nov. 25, 2008, for the
examination of claims at:

         The Graz Land Court
         Room 205
         Second Floor
         Hall K
         Graz
         Austria

Headquartered in Graz, Austria, the Debtor declared bankruptcy on
Sept. 23, 2008, (Bankr. Case No. 40 S 49/08s).


DDM BAU & ELEKTRO: Claims Registration Period Ends November 14
--------------------------------------------------------------
Creditors owed money by KG DDM Bau & Elektro have until Nov. 14,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Christiane Pirker
         Hasenhutgasse 9 Haus 3
         1120 Vienna
         Austria
         Tel: 817 57 57
         Fax: 817 57 55 17
         E-mail: Dr.Christiane.Pirker@chello.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Nov. 27, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 16, 2008, (Bankr. Case No. 5 S 98/08h).


FISCH OEG: Claims Registration Period Ends November 12
------------------------------------------------------
Creditors owed money by OEG Fisch (FN 206330b) have until Nov. 12,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Mag. Peter Freiberger
         Wienerstrasse 50-54
         8680 Muerzzuschlag
         Austria
         Tel: 03852-30080
         Fax: 03852-30080-80
         E-mail: office@rpf.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 12:15 p.m. on Nov. 26, 2008, for the
examination of claims at:

         The Land Court of Leoben
         Hall IV
         First Floor
         Leoben
         Austria

Headquartered in Muerzzuschlag, Austria, the Debtor declared
bankruptcy on Sept. 22, 2008, (Bankr. Case No. 18 S 56/08y).


K.B.I. LLC: Claims Registration Period Ends November 13
-------------------------------------------------------
Creditors owed money by LLC K.B.I. (FN 263927d) have until
Nov. 13, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Susi Pariasek
         Gonzagagasse 15
         1010 Vienna
         Tel: 01/533 28 55
         Fax: 01/533 28 55 28
         E-mail: office@anwaltwien.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:50 a.m. on Nov. 27, 2008, for the
examination of claims at:

         The Land Court of Korneuburg
         Hall II
         Room 104
         First Floor
         Korneuburg
         Austria

Headquartered in Eibesbrunn, Austria, the Debtor declared
bankruptcy on Sept. 19, 2008, (Bankr. Case No. 32 S 37/08s).


M.S.I. LLC: Claims Registration Period Ends November 12
-------------------------------------------------------
Creditors owed money by LLC M.S.I. (FN 92602f) have until Nov. 12,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Johannes Jaksch
         Landstrasser Hauptstrasse 1/2
         1030 Vienna
         Tel: 713 44 33, 713 34 05
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:45 a.m. on Nov. 26, 2008, for the
examination of claims at:

         The Trade court of Vienna
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 19, 2008, (Bankr. Case No. 3 S 109/08m).  Dr. Stephan
Riel represents Dr. Jaksch in the bankruptcy proceedings.


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


PETROL AD: Moody's Junks Corporate Family Rating to Caa1
--------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Petrol AD to Caa1 and the rating assigned to the senior
unsecured guaranteed EUR100 million Eurobond to Caa2 / LGD 5
(74%).  The ratings remain under review for further downgrade.

The rating downgrade reflects the sustained deterioration in
adjusted debt and cash flow metrics of the group over the last
twelve months as a result of stagnating operating performance,
sizable book and cash losses under a portfolio of derivatives on
crude oil used by Petrol to hedge its inventory risk and
aggressive financial policies as illustrated by the group's
decision to use a significant portion of the proceeds from the
sale of 75 petrol stations to Lukoil to upstream cash to its
ultimate parent through the buyback of treasury shares (BGN91
million) rather than to apply to debt reduction or to retain in
support of its liquidity needs.  The remainder of the proceeds
from the disposal of the stations was used to finance (i) working
capital consumption of BGN81 million, (ii) derivatives losses of
BGN74 million, and (iii) repayments of bank and trade loans of
BGN59 million during H1 2008. Moody's also notes that the disposal
of these profitable assets has substantially weakened the business
profile of the group.  The action also reflects the agency's
concerns over Corporate Governance reflected by the issuer's
history of qualified accounts and repeated accounting errors as
well as by the size of the group's intra group loans including to
its ultimate parent, which is directly controlled by private
individuals.

The review for downgrade will focus on the steps that the
management and shareholders of Petrol AD would consider
implementing in order to restore the capital base of the group and
support the liquidity requirements of Petrol's network of petrol
stations in the near term future as well as the outlook for the
group in light of current market conditions and the recent changes
to its business profile.

These ratings of Petrol AD were affected by the action:

   * Corporate Family Rating downgraded to Caa1 from B2;

   * Probability of Default Rating downgraded to Caa1 from B2;

   * EUR100 million Senior Unsecured Guaranteed Eurobond
     downgraded to Caa2 / LGD 5 (74%) from B3 / LGD 5 (73%)

Petrol AD, based in Sofia, is Bulgaria's largest fuel retailer
with 457 stations operated following the sale of 75 stations to
Lukoil in April 2008.  Petrol sold 850 million liters of oil
products in 2007.  Total revenues in the first six months of 2008
amounted to BGN 731 million (EUR374mio).


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


ETHIAS VIE: Fitch Lowers Subordinated Debt Rating to BB+ from BBB
-----------------------------------------------------------------
Fitch Ratings downgraded the Belgian mutual insurance companies
Ethias Vie's and Ethias Droit Commun's Insurer Financial Strength
ratings to 'BBB' from 'A-' due to the group's capital adequacy
decrease and concern about Ethias's ability to win new business.

The agency has also downgraded Ethias Vie's Long-term Issuer
Default rating to 'BBB-' from 'BBB+' and its subordinated debt
rating to 'BB+' from 'BBB'.  As a consequence of the rating action
on Ethias, Fitch has also downgraded Bel Re, Ethias group's
wholly-owned reinsurance subsidiary based in the Grand Duchy of
Luxembourg, to IFS 'BBB' from 'A-'.  In addition, Ethias Vie's
Long-term IDR and all the IFS ratings remain on Rating Watch
Negative.

'BBB' IFS ratings indicate there is a low expectation of
interrupted or ceased payments.  The capacity to meet policyholder
and contract obligations on a timely basis is considered adequate,
but adverse changes in circumstances and economic conditions are
more likely to impact this capacity.

The downgrades mainly reflect the current pressure on the business
position of Ethias and Fitch's concerns over the challenge the
group will have to attract and retain business.  They also reflect
the sharp decline in Ethias's capital adequacy due to unsettled
financial markets.  This has been intensified due to Ethias's
important investment concentration risk through its holding in
Dexia shares (Dexia Bank Belgium rated IDR 'AA-' /Outlook Stable)
which have fallen significantly since early 2008.

However, Fitch has also taken note of external support expected
from the Walloon region, the Flanders region and the Belgian
Federal Government for a total of EUR1.5 billion.  Although Fitch
takes a positive view on these actions, the agency notes that the
group's capital adequacy remains low-in-the range for a company in
the 'BBB' category.  In addition, Fitch considers there are
uncertainties concerning the role of the mutual insurance
companies of the Ethias group related to an expected new group
structure.  This new structure includes the transfer of most
insurance activities to a limited company that will be indirectly
75%-owned by public organizations.

The RWN on Ethias's ratings continue to reflect Fitch's view of a
potential further decline in the group's capital strength amid
financial market conditions.

Fitch still expects to resolve the RWN on Ethias's ratings by
February to March 2009.  The resolution will depend on the return
of the group's surrender rates to satisfactory levels and the
implementation of the group's project to change its structure.
Conversely, should these objectives not be achieved, the ratings
could be downgraded further.

As a group, Ethias is one of the leading composite insurers in
Belgium by written premiums.  With over 1.1 million individual
clients at end-2007, it enjoyed a market share of 13% of the
Belgian insurance market.  In addition, the group benefits from
its strong business position with government-related bodies and
local authorities in Belgium, as well as with civil servants.

Ethias Vie is the group's largest company and accounted for 69% of
group premiums in 2007.  It plays a key role in the group's
strategy, which is to boost its life insurance business and
exploit cross-selling opportunities.  Ethias Droit Commun wrote
21% of the group's premiums in 2007 in non-life insurance
products.  Bel Re has an instrumental role in the group's
reinsurance policy.


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


AKERYS HOLDINGS: S&P Junks Corporate Credit Rating to CCC from B
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on France-based homebuilder Akerys
Holdings S.A. to 'CCC' from 'B'.  The outlook is developing.

At the same time, S&P lowered its rating on Akerys' EUR300 million
floating-rate notes due 2014 to 'CCC-' from 'B-'.  The recovery
rating remains unchanged at '5', indicating S&P's expectation of
modest (10%-30%) recovery for noteholders in the event of a
payment default.

"The downgrade reflects the company's recent announcement that it
has engaged an investment bank to advise it about potential
strategic alternatives, including a review of the group's capital
structure," said S&P's credit analyst Pierre Georges.

S&P considers this to be a change in the group's financial policy
that evidences a potential lack of willingness to fully meet
financial commitments.  If the 2014 bond were repaid at a
discount, losses for bondholders could indeed result.  However,
the 'CCC' rating does not reflect a change in its assessment of
Akerys' business profile and liquidity situation, which continues
to be weak but S&P does not see as a near-term risk.

"We will monitor developments in potential negotiations with
bondholders and future strategic options, said Mr. Georges.

Under its criteria, S&P could lower the ratings to 'D' in case of
completion of an exchange offer, where some or all of an issue is
either repurchased for an amount of cash or replaced by other
securities having a total value that is clearly less than par.

Alternatively, in the absence of a bond exchange offer below par
and provided that liquidity and Akerys' future operating
performance do not deteriorate, S&P could raise the ratings.


PARIS PRIME: Fitch Junks Ratings on Two Classes of Notes
--------------------------------------------------------
Fitch Ratings downgraded Paris Prime Commercial Real Estate FCC's
class D and E notes and removed them from Rating Watch Negative.
At the same time, Fitch has assigned Distressed Recovery ratings
to the class D and E notes.

The Class C notes are affirmed and also removed from RWN.  Class
A, X1, X2 and B notes are affirmed, with Stable Outlook.

  -- EUR210.1 million Class A (FR0010382309) due 2014
     affirmed at 'AAA'; Outlook Stable

  -- Class X1 due 2014 affirmed at 'AAA'; Outlook Stable

  -- Class X2 due 2014 affirmed at 'AAA'; Outlook Stable

  -- EUR29.4 million Class B (FR0010382317) due 2014
     affirmed at 'AA'; Outlook Stable

  -- EUR33.6 million Class C (FR0010382325) due 2014
     affirmed at 'A'; off RWN, Outlook Stable

  -- EUR31.5 million Class D (FR0010382333) due 2014
     downgraded to 'C' from 'BBB' - 'DR1' assigned

  -- EUR8.8 million Class E (FR0010382341) due 2014
     downgraded to 'C' from 'BBB-' - 'DR2' assigned

These rating actions are in response to the termination of the
existing issuer-level hedging arrangements with a subsidiary of
the bankrupt entity Lehman Brothers and the execution of a new
hedge on less favorable terms.  The result of this is that the
issuer is no longer able to pay interest in full under the class D
and E notes.  The shortfalls are expected to be permanent in
nature unless breakage amounts owed to the issuer by the Lehman
Brothers subsidiary can be recovered.  Given the uncertainty of
making such a recovery, both of these notes are downgraded to 'C'
to reflect imminent risk of default.

As these notes are distressed, Fitch has assigned a DR rating to
each.  With a short average life, and unchanged prospects for full
receipt of bond principal, both notes are expected to record
strong total recoveries.  For this reason, the class D has been
awarded the highest DR rating of 'DR1' and the class E a high DR
rating of 'DR2'.


SIRF CAPITAL: Fitch Cuts EUR50MM Liquidity Facility Rating to 'C'
-----------------------------------------------------------------
Fitch Ratings has downgraded SIRF Capital 3 Limited's EUR50
million primary liquidity facility due 2014 to 'C' from 'B'.  The
notes are removed from Rating Watch Negative.  The downgrade comes
after the issuer failed to implement a restructuring proposal that
would have increased the credit enhancement for the notes.

Since Fitch's rating action in May 2008, there has been further
deterioration in the reference portfolio.  Non-investment grade
assets have increased to 30.5% of the portfolio from 25%.  Of
these, assets rated 'CCC+' or below have increased to 24.2% from
11.7%.  This compares unfavorably to a credit enhancement level of
3.4% for the primary liquidity facility.  Further, 21% of the
reference portfolio is currently on RWN compared to 11% in May
2008.

This transaction is a liquidity facility agreement between SIRF 3,
a special purpose vehicle, and Calyon, the facility lender.  The
liquidity facility will be drawn if the underlying assets
experience a loss on the principal.  The rating addresses the
probability of the principal and interest being paid under the
liquidity facility, when drawn, in accordance with the terms of
the documentation.  The rating of the liquidity facility is linked
to the credit quality of a EUR1 billion portfolio, which
synthetically references structured finance assets.


* FRANCE: Banks Snob Government's EUR40BB Recapitalization Fund
---------------------------------------------------------------
Until last Monday night, France's banks had given no indication
they were interested in accessing a EUR40 billion recapitalization
fund unveiled by the government weeks ago, The Financial Times
reports.

However, the French government said it would inject
EUR10.5 billion (US$14 billion) into France's six largest banks in
an effort to shore up their balance sheets and ensure they
continued to provide credit to consumers and businesses, the FT
notes.

The move was indispensable if banks were to be "in a position to
properly finance the economy", the reports quotes Christine
Lagarde, finance minister, as saying.

But Ms. Lagarde said Credit Agricole would receive EUR3 billion,
BNP Paribas EUR2.55 billion, Societe Generale EUR1.7 billion,
Credit Mutuel EUR1.2 billion, Caisse d'Epargne EUR1.1 billion, and
Banque Populaire EUR0.95 billion, the report relates.

The capital will come in the form of subordinated loans that are
repayable after other debts have been met, do not dilute existing
shareholders and do not require a change in dividend policy.
Nevertheless, subordinated debt can nonetheless be used to
increase the banks' tier one capital ratios, a main measure of
balance sheet strength. The loans will be provided at base rate
plus 400 basis points.

The French finance ministry said the plan, agreed in principle
with the banks, was subject to approval of the European
Commission's competition authorities.

The Bank of France, which also acts as the country's banking
regulator, is expected to raise from 25% to 35% the proportion of
tier one capital than can be a hybrid of equity and debt
instruments, the FT says.

However, Christian Noyer, governor of the Bank of France said
Monday that French banks "absolutely did not need new
shareholders' funds" and were "very well capitalized", the report
notes.  He said the plan is not for recapitalization but to assist
the economy by providing new credit.

According to the FT, France's banks have shown little interest in
the government's EUR40 billion recapitalization fund, perhaps
fearing the stigma if they sought to use it.

The FT recalls that François Fillon, prime minister, had said
banks wishing to access the government's EUR320 billion loan
guarantee fund would have to promise to increase their stock of
credit at an annual rate of 3% to 4% to qualify.  The same will
apply to banks receiving capital from the state.  However, some
lenders have suggested that maintaining credit flows could be
difficult to ensure given the sluggish economy, the FT adds.

Banks benefiting from the scheme will also have to respect pay
curbs for top managers, with restrictions on severance payments
and stock-options, the report says.  All French banks weeks ago
agreed to abide by a code of practice setting out these curbs.

         Moody's: Gov't. Package Helps Restore Confidence

As reported by the Troubled Company Reporter on Oct. 17, 2008,
Moody's views the French Government's announcement of a package to
restore confidence in the French financial and banking system as a
very positive development.  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.


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


ARCFOREST GMBH: Claims Registration Period Ends Oct. 30
-------------------------------------------------------
Creditors of arcForest GmbH have until Oct. 30, 2008, to register
their claims with court-appointed insolvency manager  Andreas
Rohe.

Creditors and other interested parties are encouraged to attend
the meeting at 1:30 p.m. on Dec. 1, 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 Neubrandenburg
         Hall 1
         Fr.-Engels-Ring 15-18
         Neubrandenburg
         Germany

The Court will also verify the claims set out in the insolvency
manager's report 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 Rohe
        Kamigstrasse 2
        17373 Ueckermuende
        Germany

The District Court of Neubrandenburg opened bankruptcy proceedings
against arcForest GmbH on Sept. 29, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         arcForest GmbH
         Franzfelde 31
         17309 Franzfelde
         Germany


A-V GESELLSCHAFT: Claims Registration Period Ends Oct. 30
---------------------------------------------------------
Creditors of A-V Gesellschaft fuer Alters-Versorgung mbH have
until Oct. 30, 2008, to register their claims with court-appointed
insolvency manager Hans-Peter Burghardt.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Nov. 21, 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 Detmold
         Meeting Room 12
         Ground Floor
         Gerichtsstr. 6
         32756 Detmold
         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:

         Hans-Peter Burghardt
         Bunsenstr. 3
         32052 Herford
         Germany

The District Court of Detmold opened bankruptcy proceedings
against A-V Gesellschaft fuer Alters-Versorgung mbH on Sept. 4,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         A-V Gesellschaft fuer Alters-Versorgung mbH
         Attn: Ansgard Mueller, Manager
         Fichtenweg 13
         32760 Detmold
         Germany


AZ TRANS: Claims Registration Period Ends October 30
----------------------------------------------------
Creditors of AZ TRANS GmbH have until Oct. 30, 2008, to register
their claims with court-appointed insolvency manager Bernward
Widera.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Dec. 11, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Chemnitz
         Hall 28
         Fuerstenstr. 21-23
         09130 Chemnitz
         Germany

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

The insolvency manager can be reached at:

         Bernward Widera
         Buettenstrasse 4
         08058 Zwickau
         Germany
         Tel: (03 75) 81 89 20
         Fax: (03 75) 818 92 14
         E-mail: widera@zwickau-net.de

The District Court of Chemnitz opened bankruptcy proceedings
against AZ TRANS GmbH on Sept. 22, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         AZ TRANS GmbH
         Attn: Sebastian Drechsel, Manager
         Wildenfelser Str. 4
         08056 Zwickau
         Germany


BAYERISCHE HYPO: S&P Rates Class F Credit-Linked Notes at BB
------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its credit ratings
to the EUR15.25 million floating-rate credit-linked notes issued
by Bayerische Hypo- und Vereinsbank AG (HVB) in its Building
Comfort 2008 transaction.  In addition, HVB issued EUR19.25
million unrated credit-linked notes.

Building Comfort 2008 is structured as a synthetic, partially
funded residential mortgage-backed securities (RMBS) transaction.
Its purpose is to transfer credit risk associated with a pool of
residential mortgage loans that are currently on HVB's balance
sheet.  The transaction aims to provide economic and regulatory
capital relief to HVB.  The initial reference pool amounts to
approximately EUR3.5 billion.

The risk transfer is achieved by HVB issuing credit-linked notes
(CLNs).  The issuance of CLNs represents the funded portion of
this transaction.  The unfunded portion is represented through
potential reference to the respective rated notes class A+ through
E+, where the loss allocation is linked to those notes.  This loss
allocation is engineered so that a potential allocation to the
classes of notes mirrors, in relative terms, the same potential
loss allocation on the whole portfolio.

The notes are direct obligations of HVB.  They are secured by cash
deposits corresponding to the principal amounts of the class A+
through D+ notes held at 'A-1' rated banks in a trust account
("Treuhandkonto") and adequate amounts of interest payable by HVB
to cover the note interest.  The class E+ and F notes are directly
linked to the rating on HVB, as no collateral is posted.

In addition to subordination, credit enhancement is provided in
this transaction through synthetic excess spread.

HVB issued notes directly without making recourse to an
intermediary special-purpose entity.  HVB has implemented special
measures that help to de-link the ratings on the class A+ through
D+ notes from that on itself.

Bayerische Hypo- und Vereinsbank AG

  -- EUR34.5 Million Floating-Rate Credit-Linked Notes (Building
     Comfort 2008)

Class          Rating         Amount (EUR)
-----          ------         ------
  A+             AAA             0.10 million
  B+             AAA             0.10 million
  C+             AA              0.10 million
  D+             A               0.10 million
  E+             BBB             0.10 million
  F              BB             14.75 million
  G              NR             19.25 million


HEIDELBERGCEMENT: Moody's Cuts LT Ratings to Ba1; Outlook Negative
------------------------------------------------------------------
Moody's Investors Service has downgraded HeidelbergCement's (HC)
long-term ratings to Ba1 and the short term rating from P-3 to NP.
The outlook for the ratings is negative.  In accordance with its
established practices, Moody's concurrently assigned a Ba1
Corporate Family Rating to HC and expects to withdraw the long-
term issuer rating shortly.  The ratings of HC's EMTN program and
outstanding and guaranteed bonds are lowered to Ba1.

The rating action was prompted by ongoing weaker performance in
HC's North American and other developed markets such as the UK and
the expectation that these markets will remain challenging for the
foreseeable future, coupled with lower than initially expected
proceeds from the sale of assets to reduce the leverage to levels
commensurate with the Baa3 level.  In addition, HC's refinancing
profile has weakened mainly as a result of high maturities over
the coming 20 months.  Moody's also notes that the financing
arranged for the acquisition of Hanson included financial
covenants that were tailored to planned assets divestitures and
free cash flow generation.  The delay in achieving these
divestitures has the consequence of a material reduction of
headroom.

The outlook remains negative mainly taking into account the
expectation of ongoing weakness in HC's key markets such as the UK
and the US and the challenge to improve credit metrics.  In case
the challenging market conditions would not allow an improvement
of credit metrics, further negative pressure might develop in the
coming quarters.  In addition Moody's will continue to monitor the
group's liquidity situation and re-financing needs for the coming
18 months.

With the acquisition of Hanson plc by HeidelbergCement AG in
mid-2007 the leverage of the group increased significantly.
Reduction of the leverage had been expected to be achieved by the
sale of non-core assets and the use of free cash flows to pay down
debt which has now only partly materialized.

HC has already sold assets with total proceeds of around EUR4
billion (sale of Vicat, maxit and several other assets) and has
also been provided with around EUR1 billion of fresh equity from
its main shareholder.  Moody's believes that further substantial
proceeds from asset sales will be difficult to achieve given the
current market environment for companies in the building materials
industry.

Although Moody's expects HC's management to continue to use cash
generated to pay down debt this may lead to a longer than expected
recovery of HC's RCF/Net Debt ratio, which is required to be
sustainably above 15% to maintain the Ba1 ratings.

On a more positive side, HC has a strong market position in some
of the growing emerging countries, such as Russia, the Ukraine,
Romania and Indonesia.  The positive development in these markets
has helped to partly offset the weaker performance in some of the
mature markets; however, growth in Eastern European markets is
expected to slow down.  Cost cutting measures and the integration
of Hanson are well under way which gives HC an efficient cost
structure based on the now achieved vertical integration of its
businesses in the US and in the UK and strong market power in
these markets.

Downgrades:

  Issuer: HeidelbergCement AG

  * Issuer Rating, Downgraded to Ba1 from Baa3

  * Senior Unsecured Medium-Term Note Program, Downgraded to a
    range of Ba1 to NP from a range of Baa3 to P-3

  Issuer: Heidelbergcement Finance B.V.

  * Senior Unsecured Medium-Term Note Program, Downgraded to a
    range of Ba1 to NP from a range of Baa3 to P-3

  * Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1
    from Baa3

  Issuer: Hanson Lmitied/Hanson Australia Funding Limited/Hanson
          Building Materials Limited

  * Senior Unsecured Regular Bond/Debentures, downgraded to Ba1
    from Baa3

New Assignments:

  Issuer: HeidelbergCement AG

  * Corporate Family Rating: Ba1

Originally founded in Germany, HeidelbergCement AG is the world's
third-largest cement producer.  HC generated sales of EUR12.9
billion per last 12 months (June 2008).  With the acquisition of
UK building materials producer Hanson plc in mid-2007, HC is now
the world's largest producer of aggregates with an annual output
in 2007 of 334 mt, and the second-largest producer of ready-mixed
concrete with an output of 46 million cubic meters, behind Cemex.


KOEDI AUTOMOBILE: Claims Registration Period Ends October 31
------------------------------------------------------------
Creditors of KoeDi Automobile GmbH have until Oct. 31, 2008, to
register their claims with court-appointed insolvency manager
Bernd Wetjen.

Creditors and other interested parties are encouraged to attend
the meeting at 11:05 a.m. on Nov. 18, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hildesheim
         Hall 124
         Main Building
         Kaiserstrasse 60
         31134 Hildesheim
         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:

         Bernd Wetjen
         Alter Markt (Kaiserhaus) 1
         31134 Hildesheim
         Germany
         Tel: 91710
         Fax: 917171

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

The Debtor can be reached at:

         KoeDi Automobile GmbH
         Marggrafstr. 21
         31137 Hildesheim
         Germany


ROCA DACH: Claims Registration Period Ends October 31
-----------------------------------------------------
Creditors of RoCa Dach & Wand Elegant GmbH have until Oct. 31,
2008, to register their claims with court-appointed insolvency
manager Berthold Brinkmann.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Nov. 14, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Niebuell
         Hall 1
         Gerichtsgebaude Sylter Bogen 1A
         25899 Niebuell
         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:

         Berthold Brinkmann
         Sechslingspforte 2
         22087 Hamburg
         Germany

The District Court of Niebuell opened bankruptcy proceedings
against RoCa Dach & Wand Elegant GmbH on Sept. 19, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         RoCa Dach & Wand Elegant GmbH
         Attn: Werner Bahne Schmidt, Manager
         Buellsbueller Chaussee 7
         25917 Leck
         Germany


TERRATHERM GMBH: Claims Registration Period Ends October 31
-----------------------------------------------------------
Creditors of TerraTherm GmbH have until Oct. 31, 2008, to register
their claims with court-appointed insolvency manager Andreas
Pantlen.

Creditors and other interested parties are encouraged to attend
the meeting at 12:00 p.m. on Dec. 2, 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 Detmold
         Meeting Room 12
         Ground Floor
         Gerichtsstr. 6
         32756 Detmold
         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 Pantlen
         Hermannstr. 31
         32756 Detmold
         Germany

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

The Debtor can be reached at:

         TerraTherm GmbH
         Stoddartstr. 92
         32758 Detmold
         Germany


WESTLB AG: May Seek Aid Under Germany's EUR500 Bil. Rescue Plan
---------------------------------------------------------------
James Wilson at The Financial Times reports that WestLB AG is
likely to avail of the government's EUR500 billion financial
sector rescue fund.

"The government initiative offers the possibility of strengthening
WestLB and thereby strengthens the starting point for a
positioning of WestLB in the Landesbanken consolidation process,"
the report quotes the bank as saying.  "Likely measures will be
elaborated by the management board in agreement with owners, the
government and the European Commission in coming weeks."

However, Neelie Kroes, the EU's competition commissioner, has been
unimpressed with restructuring measures offered so far by WestLB
in return for the aid, the report notes.

WestLB, the report discloses, is among the Landesbanken, a group
of mainly wholesale, regionally-owned lenders, hardest hit by
their relatively large investments in structured credits,
reflecting their low profitability and unsustainable models as
critics claim.

On Oct. 22, 2008, the TCR-Europe reported, citing the Associated
Press, that Germany's federal government approved a financial
sector rescue plan, worth up to EUR500 billion, or US$675 billion.

The German rescue plan, the report said, provides for up to
EUR400 billion in lending guarantees for banks, plus as much as
EUR80 billion to recapitalize banks and, if necessary, buy up
risky assets.  According to the report, an additional EUR20
billion is intended to back up the guarantees.

          EU Commission Opens Probe Into State Aid

As reported in the TCR-Europe, the European Commission, on
Oct. 1, 2008, opened under EC Treaty state aid rules an in-depth
investigation into state support measures in favor of WestLB.
The report noted this is a first step towards finding a viable
long-term solution, in close contact with the German authorities.

The report disclosed as a consequence of investments in US sub-
prime markets, WestLB ran into financial difficulties.

On Feb. 8, 2008, the State of North Rhine-Westphalia set up a risk
shield for WestLB to protect it against the volatility of its
EUR23 billion structured investment portfolio, because of
difficulties arising from the subprime crisis in financial
markets.  The Commission concluded on April 30, 2008 that the risk
shield constitutes state aid, but that the aid was in line with
the EU rules on rescue aid because strict conditions ensure that
the aid is limited in time and reversible.

In line with the Commission's decision on the rescue aid, Germany
notified on Aug. 8, 2008 a restructuring plan for WestLB,
including a prolongation of the risk shield.  This notification
temporarily extends the legality of the risk shield until the
Commission has finalized its assessment of the restructuring plan.

                         About WestLB

Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.

In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.

WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).

                          *     *     *

West LB AG continues to carry Fitch's 'F' Individual Rating.
The rating was previously at 'D/E' and was downgraded by Fitch
to its current level in January 2008.


WOHNUNGSBAU KARLSFELD: Claims Registration Period Ends Oct. 31
--------------------------------------------------------------
Creditors of Wohnungsbau Karlsfeld Objektgesellschaft mbH have
until Oct. 31, 2008, to register their claims with court-appointed
insolvency manager Michael Mansfeld.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 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 Traunstein
         Meeting Hall C 001
         Herzog-Otto-Str. 1
         83278 Traunstein
         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 Mansfeld
         Bahnhofstr. 18
         83278 Traunstein
         Germany
         Tel: 0861/9 095 905-0
         Fax: 0861/9 095 905-9

The District Court of Traunstein opened bankruptcy proceedings
against Wohnungsbau Karlsfeld Objektgesellschaft mbH on Sept. 29,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Wohnungsbau Karlsfeld Objektgesellschaft mbH
         Thauernhausen 5a
         83339 Chieming
         Germany


ZIMMER GMBH: Claims Registration Period Ends October 31
-------------------------------------------------------
Creditors of Zimmer GmbH Edelstahl- und Anlagentechnik have until
Oct. 31, 2008, to register their claims with court-appointed
insolvency manager Mechthild Bruche.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Dec. 16, 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 Nuremberg
         Meeting Hall 152/I
         Flaschenhofstr. 35
         Nuremberg
         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:

         Mechthild Bruche
         Stahlstr. 17
         90411 Nuremberg
         Germany

The District Court of Nuremberg opened bankruptcy proceedings
against Zimmer GmbH Edelstahl- und Anlagentechnik on Sept. 25,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Zimmer GmbH Edelstahl- und Anlagentechnik
         Attn: Frank Pompetzki, Manager
         Lenkersheimer Str. 10a
         90431 Nuernberg
         Germany


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


KAUPTHING BANK: Seeks Judicial Review Over Unit's Administration
----------------------------------------------------------------
Alex Spence at the Times Online reported Monday last week that
Kaupthing Bank hf. was preparing groundwork for a judicial review
in the High Court over the Treasury's decision to put its UK arm
Kaupthing, Singer & Friedlander into administration.

Richard Beresford, a partner at Grundberg Mocatta Rakison, the
City law firm acting for Kaupthing, said that the Treasury's
decision triggered the panic that caused its parent in Iceland to
collapse, the report disclosed.

The Treasury, the report recalled, seized KSF on October 8 and
transferred around 160,000 depositors from Kaupthing Edge, its
retail arm, to ING Direct.  The following day, Kaupthing, unable
to meet its obligations to creditors and therefore technically in
default, was taken over by the Icelandic Financial Services
Authority, the report recounted.

Mr. Beresford declared Kaupthing has a strong case that the
Treasury acted outside its powers under the Banking (Special
Provisions) Act 2008.  He added the bank is also looking at
seeking damages for misfeasance in public office and negligence,
although he indicated that would be significantly harder to prove,
the report said.

Kaupthing has up to three months to seek a judicial review but
according to Mr. Beresford preliminary investigation —- a
precursor to formally filing proceedings -—  would probably be
finished within weeks, the report revealed.

The bank has instructed John Jarvis to lead the investigation, the
report added.

The report stated that once the bank is granted judicial review
Kaupthing's lawyers are likely to demand access to correspondence
between senior Government officials and their advisers in an
attempt to show that the decision to seize KSF was politically
motivated.  Such disclosure, the report noted, could result in
discussions between the Prime Minister and the Chancellor being
recounted in court.

               About Kaupthing Singer & Friedlander

Kaupthing Singer & Friedlander is a UK-based banking subsidiary of
Iceland's Kaupthing Bank hf.

                     About Kaupthing Bank

Headquarted in Reykjavik, Iceland, Kaupthing Bank --
http://www.kaupthing.com-- is engaged in the provision of
financial services, such as private banking, asset management,
pension services, brokerage services, investment banking, as well
as corporate and retail banking.  The Bank's offer is targeted at
companies, institutional investors and individuals. The Bank is
operational in thirteen countries, including Luxembourg,
Switzerland, the Nordic countries, the United Kingdom and the
United States.  The main subsidiaries include Kaupthing Singer &
Friedlander and FIH Erhvervsbank.


* ICELAND: May Get GBP6.5 Billion Funding from U.K. and IMF
-----------------------------------------------------------
Reuters, citing The Financial Times, says that Iceland is set to
receive a US$6 billion (GBP3.5 billion) from an International
Monetary Fund-led rescue package soon, as the crisis that has
derailed the country's banking system showed no sign of letting
up.

The Financial Times reports that the United Kingdom is poised to
extend about GBP3 billion to Iceland so it can repay U.K.
depositors in Icesave, the online banking unit of Landsbanki, the
collapsed Icelandic bank.

As reported by the Troubled Company Reporter-Europe on Oct. 20,
2008, Iceland, according to the report, has tapped the
International Monetary Fund for financing to help ease the crisis.
Some ministers have raised the possibility of membership of the
European Union, long resisted by its fishing sector, to safeguard
the economy.

The TCR-Europe, citing Reuters, added that Russia is currently
studying Iceland's multi-billion euro loan request.  Talks in
Moscow ended with Russia agreeing to consider the request for a
loan which the North Atlantic island initially put at EUR4 billion
(US$5.45 billion).

Iceland's central bank reported nagging problems with payments
from abroad to its banks and said it had called on some other
central banks to help it fix the situation, Reuters notes.

On Monday, October 20, Iceland's central bank said it had asked
other central banks for help in getting banks in their countries
to use the central bank as a conduit for transferring payments,
Reuters relates.

As cited by Reuters, a Bank of England spokesman said the central
bank had been in regular contact with Icelandic authorities on
payments transfers and frozen assets.

However, CreditSights, an independent analysis group, said in a
client note on October 20 that the way Iceland has handled the
banks meant bondholders would probably get less than had the firms
simply gone into liquidation, Reuters notes.

Implied recovery rates for senior notes from Kaupthing, Landsbanki
and Glitnir are in the 5% to 6% area, while for subordinated notes
they are as little as 1%, Reuters cites data from Markit.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 10,
2008, various news said Iceland is nearing bankruptcy.

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

The Financial Times reported that Prime Minister Geir Haarde had
said a mounting financial crisis and a 30% dive in the krona
forced the government to take the emergency action.

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


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


ARGON CAPITAL: Fitch Chips EUR9MM Synthetic CDO Rating to C
-----------------------------------------------------------
Fitch Ratings has downgraded Argon Capital plc's EUR9 million
Series 63 secured synthetic collateralized debt obligation
floating-rate notes to 'C' from 'CC'.  The notes are removed from
Rating Watch Negative.  The downgrade comes after the issuer
failed to implement a restructuring proposal that would have
increased the credit enhancement for the notes.

Since Fitch's rating action in May 2008, there has been further
deterioration in the reference portfolio.  Non-investment grade
assets have increased to 31.5% of the portfolio from 26%.  Of
these, assets rated 'CCC+' or below have increased to 24.3% from
15.4%.  This compares unfavorably to a credit enhancement level of
2.5% for the Series 63 notes.  Further, 19.5% of the reference
portfolio is currently on RWN compared to 8% in May 2008.

The Argon Capital Series 63 synthetic CDO references a
substitutable portfolio of asset-backed securities obligations
with a maximum notional amount of EUR1bn.  At close, proceeds from
the issuance of the notes were used to collateralize a credit
default swap between the issuer and Merrill Lynch International,
the CDS counterparty (guaranteed by Merrill Lynch & Co., Inc.,
rated 'A+'/'F1'/Outlook Evolving).


CHEYNE ABS: S&P Junks Ratings to CC and Removes Negative Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered and removed from
CreditWatch with negative implications its credit ratings on all
classes of notes issued by Cheyne ABS Investments I PLC.

These rating actions follow the receipt of a notice of
enforcement that declares that all notes are to be immediately
repaid.  Payment of the amounts due to the rated notes will be
made if funds are available after the payment of senior expenses
and the payments due to the total return swap (TRS) counterparty
under the TRS.

The lowering of the ratings to 'CC' is based on S&P's view that
the rated notes are highly vulnerable to nonpayment.

The notice of enforcement followed a previous notice declaring an
event of default as of Oct. 2.  The event of default occurred as
per the condition of the notes' indenture after the class 'A-1'
par value ratio fell below 100%.

The ratings on the class A-2, B, and C notes were originally
lowered on April 15 as a result of the deteriorating credit
quality of the collateral.

The rating actions reflect S&P's view, given current market
conditions, that the effect of these termination payments on
Cheyne ABS Investments I's ability to pay back the rated notes
will be substantial.

The decision to call for an immediate redemption of the notes is
likely to result in an increase in the collateral valuation risk.
There is thus a high potential for material losses to the holders
of the rated notes.

Cheyne ABS Investments I PLC

  -- US$178 Million Floating-Rate Notes

Ratings Lowered And Removed From CreditWatch Negative:

Class         To           From
-----         --           ----
  A-1          CC       BBB/Watch Neg
  A-2          CC       BB/Watch Neg
   B           CC       CCC-/Watch Neg
   C           CC       CCC-/Watch Neg


CLOVERIE PLC: S&P Cuts JPY500MM Credit-Linked Notes Rating to D
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered to 'D' and removed
from CreditWatch with negative implications its credit ratings on
the credit-linked notes issued by Cloverie PLC series 2005-22 and
Starling Finance PLC series 2006-6.

The rating actions are a consequence of the recent downgrade of
the underlying collateral, which the issuer purchased using note
proceeds in each transaction.  They do not reflect any changes to
S&P's opinion of the reference portfolio.

The debt issued by Sigma Finance Corp. makes up the collateral in
these transactions.  On Oct. 17, 2008, S&P lowered its issuer
credit and senior debt ratings on Sigma to 'D' from 'CCC-/Watch
Neg'.

Cloverie PLC

  -- JPY500 Million Credit-Linked Floating-Rate Notes (Turner I)
     Series 2005-22

Class        To           From
-----        --           -----
   A           D       AAA/Watch Neg

Starling Finance PLC

  -- EUR4 Million Floating-Rate Portfolio Credit-Linked Notes
     Series 2006-6

              To           From
              --           ----
               D       AA-/Watch Neg


STARLING PLC: S&P Chips EUR4MM Credit-Linked Notes Rating to D
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered to 'D' and removed
from CreditWatch with negative implications its credit ratings on
the credit-linked notes issued by Cloverie PLC series 2005-22 and
Starling Finance PLC series 2006-6.

The rating actions are a consequence of the recent downgrade of
the underlying collateral, which the issuer purchased using note
proceeds in each transaction.  They do not reflect any changes to
S&P's opinion of the reference portfolio.

The debt issued by Sigma Finance Corp. makes up the collateral in
these transactions.  On Oct. 17, 2008, S&P lowered its issuer
credit and senior debt ratings on Sigma to 'D' from 'CCC-/Watch
Neg'.

Cloverie PLC

  -- JPY500 Million Credit-Linked Floating-Rate Notes (Turner I)
     Series 2005-22

Class        To           From
-----        --           ----
   A           D       AAA/Watch Neg

Starling Finance PLC

  -- EUR4 Million Floating-Rate Portfolio Credit-Linked Notes
     Series 2006-6

              To           From
              --           ----
               D       AA-/Watch Neg


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


WABBI LLC: Creditors Must File Claims by November 26
----------------------------------------------------
LLC Wabbi has shut down.  Creditors have until Nov. 26, 2008,
to submit written proofs of claim to:

         LLC Wabbi
         Frunze Str. 390
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 90-32-93


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


EUROSAIL-NL: Fitch Downgrades Ratings on Two Tranches to Low-B
--------------------------------------------------------------
Fitch Ratings has downgraded two un-collateralized tranches of
Eurosail-NL 2007-1 B.V. and Eurosail-NL 2007-2 B.V.  The
downgraded tranches and the remaining ten tranches remain on
Rating Watch Negative.  The rating actions are:

Eurosail-NL 2007-1 B.V.
  -- Class A (ISIN XS0307254259) 'AAA' on Rating Watch Negative

  -- Class B (ISIN XS0307256114) 'AA' on Rating Watch Negative

  -- Class C (ISIN XS0307257435) 'A' on Rating Watch Negative

  -- Class D (ISIN XS0307260496) 'BBB-' on Rating Watch Negative

  -- Class E1 (ISIN XS0307265370) 'BB' on Rating Watch Negative

  -- Class ET (ISIN XS0307265883) downgraded to 'B' from 'BB'; on
     Rating Watch Negative

Eurosail-NL 2007-2 B.V.
  -- Class A (ISIN XS0327216569) 'AAA' on Rating Watch Negative

  -- Class M (ISIN XS0330526772) 'AAA' on Rating Watch Negative

  -- Class B (ISIN XS0327217880) 'AA-' on Rating Watch Negative

  -- Class C (ISIN XS0327218425) 'A' on Rating Watch Negative

  -- Class D1 (ISIN XS0327219159) 'BBB' on Rating Watch Negative

  -- Class DT (ISIN XS0327219746) downgraded to 'BB' from 'BBB';
     on Rating Watch Negative

Following the downgrade of Lehman Brothers Holdings Inc., on 26
September 2008, the agency placed the two transactions on Rating
Watch Negative.  Since then Fitch has been in regular contact with
the servicer of the transactions, ELQ Hypotheken N.V., who has
taken on an active role in replacing Lehman Brothers as the
counterparty on these deals.  Fitch has been informed by the
servicer, that the negotiations with potential counterparty
replacements have reached advanced stages and that a final
agreement is expected before the next interest payment date.

The downgrade of the two un-collateralized tranches in the two
Eurosail-NL transactions follows Fitch's concern about the
decreasing volumes of excess spread, which the agency believes may
be insufficient to cover counterparty replacement costs.
According to the latest reports available for October 2008, the
interest waterfall showed a decrease from levels reported in the
previous quarter.  In Q3 2008 Eurosail-NL 2007-1 B.V. generated
EUR491,208 of excess spread (compared to EUR1.4 million in July
2008), while Eurosail-NL 2007-2 B.V. reported EUR379,763 (compared
to EUR877,320 in July 2008).  The decrease in volumes occurred due
to the absence of the Euribor swaps and fixed/floating swaps;
these swap together generated EUR373,904 (Eurosail-NL 2007-1) and
EUR146,651 (Eurosail-NL 2007-2) of revenue funds in the previous
quarter.

The October 2008 reports also showed further losses.  Amounts of
EUR757,311 (Eurosail-NL 2007-1 B.V.) and EUR443,298 (Eurosail-NL
2007-2 B.V.) were cleared through the principal deficiency ledgers
of the junior tranches on the two transactions, bringing
cumulative losses to levels of 0.37% and 0.23% in Eurosail-NL
2007-1 B.V. and Eurosail-NL 2007-2 B.V. respectively.  Fitch
believes further losses are likely, which will put additional
stress on the available excess spread amounts and bring into
question further principal payments due on the two un-
collateralized notes.

The principal payments of the two excess spread notes are also
affected by the structure of the transaction, according to which
residual noteholders are expected to receive payments senior to
the principal payments of class ET (Eurosail 2007-1), and class DT
notes (Eurosail 2007-2).  Consequently, in October 2008, the DT
noteholders of Eurosail 2007-2, received only EUR236,241, while
the DT noteholders in Eurosail 2007-1 failed to receive any
principal payments.

As the transaction termination payments, which Lehman Brothers is
liable to pay, carry a high degree of uncertainty, Fitch expects
that the transaction replacement costs could cause severe reserve
fund draws on both deals in the forthcoming interest payment date
in January 2009.  The potential reserve fund draws could result in
multi-category downgrades to the transactions.

Fitch will continue to monitor the progress of the counterparty
replacement, as well as the actual performance of these
transactions.  The agency expects to resolve the Rating Watch by
the next interest payment date in January 2009.


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


AMUR-PROM_INDUSTRY LLC: Creditor Must File Claims by November 10
----------------------------------------------------------------
Creditors of LLC Amur-Prom-Industry (TIN 2801094607)( Forestry)
have until Nov. 10, 2008 to submit proofs of claims to:

         M.Pintusov
         Temporary Insolvency Manager
         Shimanovskogo Str. 36/81
         675000 Blagoveshchensk
         Russia

The Arbitration Court of Amurskaya will convene on Jan. 12, 2009,
to hear bankruptcy supervision procedure.  The case is docketed
under Case No. A04–3744/07–11/108B.

The Debtor can be reached at:

         LLC Amur-Prom-Industry
         Sovetskaya Str.
         Ovsyanka
         Zeyskiy
         Amurskaya
         Russia


ASTRAKHAN SHIPBUILDING: Creditors Must File Claims by Nov. 10
-------------------------------------------------------------
Creditors of OJSC Astrakhan Shipbuilding Yard (TIN 3016022894)
have until Nov. 10, 2008, to submit proofs of claims to:

         Yu. Kharitonov
         Insolvency Manager
         Office 003
         Building 6
         Sen-Simona Str. 42
         414014 Astrakhan
         Russia
         Tel: (8512) 38–60-16

The Arbitration Court of Astrakhan commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A06–4772/2008–11.

The Debtor can be reached at:

         OJSC Astrakhan Shipbuilding Yard
         Ukrainskaya Str.3
         Astrakhan
         Russia


BANK SEVERNAYA: Moody's Junks Currency Deposit Ratings to Caa2
--------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local and
foreign currency deposit ratings of Bank Severnaya Kazna to Caa2
from B2 and placed the ratings on review with direction uncertain.
Severnaya Kazna's bank financial strength rating (BFSR) was
downgraded to E (stable outlook) from E+.  The bank's Not-Prime
short-term local and foreign currency deposit ratings were
affirmed.  Concurrently, Moscow-based Moody's Interfax Rating
Agency, which is majority-owned by Moody's, downgraded Severnaya
Kazna's long-term national scale rating (NSR) to B2.ru from
Baa1.ru and placed it on review with direction uncertain.

According to Moody's and Moody's Interfax, the Caa2/Not Prime/E
global scale ratings reflect Severnaya Kazna's global default and
loss expectation, while the B2.ru national scale rating reflects
the standing of the bank's credit quality relative to its domestic
peers.

"This rating action reflects a significant deterioration of
Severnaya Kazna's liquidity profile following the recent mass
withdrawal of customer deposits," explains Olga Ulyanova, a
Moody's Assistant Vice President - Analyst.  Moody's notes that
the bank's action to limit withdrawals by individual depositors to
only those deposits that have already matured is in direct
contravention of Russian law, according to which individuals have
the right to withdraw funds from their bank accounts at any time
throughout the term of a deposit.  Severnaya Kazna has also
delayed the processing of a number of payments by legal entities.

"Although Severnaya Kazna reacted promptly to the negative
developments by borrowing RUB2.5 billion from Sberbank on 17
October 2008, and further funding has been attracted shortly from
the Central Bank of Russia, the bank's liquidity position remains
very tight," explains Ms. Ulyanova. Moody's is uncertain as to
whether the bank will be able to process in the near time all the
delayed client payments, while further withdrawals -- from both
private and corporate accounts -- are very likely to continue.
Furthermore, in case Severnaya Kazna can overcome liquidity
challenges over the short term, a large number of client claims
against the bank over the medium term is possible, as is a decline
in overall client commitment, given the concentration of the
bank's activity in one large region and its high dependence on the
sentiments of the local clientele.

According to Moody's, the review of Severnaya Kazna's ratings will
focus on the bank's ability to improve its liquidity profile and
stabilize the customer funding base in the short term, as well as
the bank's capacity to maintain its share of the regional market
and absorb potentially increased funding costs in the medium term.

Moody's previous rating action on Severnaya Kazna was implemented
on January 11, 2007, when the rating agency assigned first-time
ratings of B2/NP/E+/Baa1.ru to the bank.

Domiciled in Yekaterinburg, Russia, Severnaya Kazna reported total
IFRS assets of US$1.518 billion, total shareholders' equity of
US$145 million and a net income of US$18 million as at
December 31, 2007.


DALNEVOSTOCHNY HEATING: Creditors Must File Claims by Nov. 10
-------------------------------------------------------------
Creditors of OJSC Dalnevostochny Heating Equipment Plant have
until Nov. 10, 2008, to submit proofs of claims to:

         Yu. Bezverbny
         Temporary Insolvency Manager
         Post User Box 141
         Irkisk-81
         Russia

The Arbitration Court of Khabarovskiy commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A73-9708/2008-38.

The Debtor can be reached at:

         OJSC Dalnevostochny Heating Equipment Plant
         Suvorova Str. 73
         Khabarovsk
         Russia


EGORYEVSK TIMBER: Creditors Must File Claims by December 10
-----------------------------------------------------------
Creditors of LLC Egoryevsk Timber Company (TIN 5011021675) have
until Dec. 10, 2008 to submit proofs of claims to:

         A. Tigulev
         Insolvency Manager
         Beketova Str. 38a
         603163 Nizhny Novgorod
         Russia
         Tel: 8(831) 412-21-62

The Arbitration Court of Moscoskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A41-6203/08.

The Debtor can be reached at:

         LLC Egoryevsk Timber Company
         Kolomenskoe Shosse 16
         Egoryevsk
         Moskovskaya
         Russia


MOBILE OJSC: Fitch Assigns 'BB+' Rating on RUB10BB Proposed Bonds
-----------------------------------------------------------------
Fitch Ratings has assigned OJSC Mobile TeleSystems's two proposed
domestic bond issues, totaling up to RUB10 billion each and with
headline maturity of five and seven years, expected senior
unsecured foreign currency ratings of 'BB+' and National Long-term
ratings of 'AA(rus)'.  MTS is rated Long-term Issuer Default 'BB+'
with a Stable Outlook, Short-term IDR 'B' and National Long-term
'AA(rus)' with a Stable Outlook.

The bonds will constitute senior unsecured obligations of MTS.
The bond prospectus does not contain any financial or other
covenants.  The final ratings are contingent on the receipt of
final documents conforming to information already received.

The ratings reflect MTS's sound competitive strengths and strong
market positions in all of its countries of operations.  Fitch
expects MTS to maintain healthy EBITDA margins, and demonstrate
strong free cash flow generation in the long-run.  Although the
company is not totally immune to the impact of the ongoing global
financial crisis, its revenues are primarily derived from mobile
telecoms services that are likely to be reasonably defensive in an
economic downturn.  MTS's financial position and performance are
strong, and leverage is considered low for its ratings.  Exposure
to parent JSFC Sistema's ('BB-'/Stable) group-wide risks
associated with the lower credit quality of its other subsidiaries
and possible changes in MTS's capital structure by Sistema are
viewed by Fitch as a significant credit constraint.


PROM-TEKH LLC: Court Names O. Voronin as Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Primorskiy appointed O. Voronin as
Insolvency Manager for LLC Prom-Tekh.  He can be reached at:

         O. Voronin
         Post User Box 68
         692525 Ussuriysk
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A51-8082/2008 11-09.

The Debtor can be reached at:

         LLC Prom-Tekh
         Prospect Krasnogo Znameni 59
         Vladivostok
         Russia


STEKLO-MASH-52: Creditor Must File Claims by November 10
--------------------------------------------------------
Creditors of LLC Steklo-Mash-52 have until Nov. 10, 2008, to
submit proofs of claims to:

         O. Yershov
         Temporary Insolvency Manager
         Apt.4
         Building 1
         B. Kornilova Str.
         603106 Nizhny Novgorod
         Russia

The Arbitration Court of Moskovskaya will convene at 2:15 p.m.
on Dec. 22, 2008, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. A41–10488/08.

The Debtor can be reached at:

         LLC Steklo-Mash-52
         Moiseyenko Str. 2
         Orekhovo-Zuyevo
         Moskovskaya
         Russia


TOPSEL LLC: Creditors Must File Claims by December 10
-----------------------------------------------------
Creditors of LLC Topsel (TIN 2721087812) (Glass Production) have
until Dec. 10, 2008 to submit proofs of claims to:

         E. Savitskiy
         Insolvency Manager
         Komsomolskaya Str.82/1
         Khabarovsk
         Russia

The Arbitration Court of Khabarovskiy commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A73–1599/2008–37.

The Debtor can be reached at:

         LLC Topsel
         Komsomolskaya Str.82/1
         Khabarovsk
         Russia


* CITY OF OMSK: Moody's Assigns Ba3 Ratings; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has assigned global scale local and
foreign currency issuer ratings of Ba3 to the City of Omsk, with a
stable outlook.  At the same time, Moody's Interfax Rating Agency,
which is majority-owned by Moody's, has assigned a national scale
rating of Aa3.ru to the City.

"Moody's ratings for the City of Omsk are supported by its
favorable socio-economic profile and its increasing own-source
budget revenue. The City has also pursued a conservative debt
policy in recent years, with a rapidly decreasing direct-debt-to-
operating-revenue ratio from 59% in 2005 to less than 20% in 2008,
while interest payments have remained at a modest 3% of operating
revenues over past two years," says Alexander Proklov, a Moody's
Senior Analyst and lead analyst for the city.

In Moody's view, the City's administration has improved its budget
and debt policy over recent years.  "Omsk is also expected to
benefit from the celebration of its 300-year jubilee in 2016,
which will be supported by funding from the federal government,"
Mr. Proklov adds.

Moody's also notes that the ratings are constrained by the City's
low, albeit positive, gross and primary operating balances, which
averaged 2.8% and 5.5% of operating revenues in 2004-2007,
respectively.  The rating agency also cautions that further growth
in its rigid spending base, mainly public sector wages and social
benefits, coupled with pressures stemming from the anticipated
economic slowdown, could result in a weakening of operating
balances in the near future.  Moreover, the City's direct debt is
composed of short-term bank loans due in the next 12 months,
exposing the city to refinancing risks and higher cost of funding
as current market conditions remain tight.

"Another factor exerting pressure on the City's credit profile is
its reliance on asset sales as a source of revenue, mainly land
and real estate.  Although an expected decline in the property
sales could be compensated by offsetting measures, the City could
be forced to cut its capital expenditure significantly,"
Mr. Proklov adds.

The City of Omsk is the capital of Omsk Oblast (region) in
southern Siberia (rated Ba2/Aa2.ru, stable).  The City has over
1.1 million inhabitants (0.8% of total Russian population) and
contributes more than 70% to the Oblast's gross regional product
(GRP).  The City's industrial activity is concentrated on oil
refining, food manufacture, machinery building and construction
materials.


* Moody's Affirms Positive Outlook on Russia's Key Ratings
----------------------------------------------------------
Moody's Investors Service has affirmed the positive outlooks on
Russia's key debt and foreign currency deposit ratings.

"Notwithstanding heightened financial concerns, Moody's believes
the combination of ample financial buffers and determined policy
measures are likely to help Russia overcome the current global
liquidity crunch," said Jonathan Schiffer, Moody's lead sovereign
analyst for the Russian Federation.

"Against the backdrop of a global financial crisis, it seems
appropriate to look at the resources at hand and the policy
initiatives undertaken by the government and central bank of the
Russian Federation in comparison to the resources and actions of
its rating peers. F rom this perspective, the generic strength and
creditworthiness of the Russian Federation as well as its medium-
to-long term upward movement has yet to be undermined," said Mr.
Schiffer.  "Of course, it remains to be seen whether the actions
taken by the government and central bank so far will be sufficient
in light of continued market turbulence, and how a prolonged
decline of oil prices would affect credit metrics in relative
terms."

Like many countries, Russian financial markets have been deeply
embroiled in the global liquidity crunch.  Still, the government's
foreign currency reserves plus excess resources derived from the
current year's budget surplus are enormous, and by any measure
they should be more than enough to provide support to the banking
system and to Russian corporate borrowers unable to refinance
maturing external debt.  Such interventions will not prevent the
real economy from being hit hard by the credit turmoil, but they
are expected to avert systemically disruptive payments defaults or
delays that would be a risk in countries with smaller reserve
cushions and less determined policymakers.

In spite of the announced support packages, which currently total
nearly $200 billion, the Russian government's balance sheet
remains strong, said the analyst.  Even after its emergency
measures are enacted (and assuming that all identified funds would
need to be disbursed fully), the Russian Federation's foreign
currency reserves and debt ratios would leave the rating
comfortably positioned.  In fact, even if one assumed that the
government would take direct responsibility for the liabilities
represented by debt of quasi-sovereign corporations and banks and
received little or no valuable assets in return -- a highly
unlikely scenario -- its net debt burden would not be onerous.

In Moody's opinion, therefore, the public sector finances of the
Russian Federation could emerge from the global crisis in
relatively better shape than some of its closest rating peers,
validating the positive outlook.  While Moody's financial
institution group analysts have placed a negative outlook on the
country's overbanked financial system because of the restructuring
taking place there, market mechanisms and the process of "creative
destruction" suggest that it may emerge more streamlined and more
efficient from the crisis.

"Moody's also expects that stable and decisive leadership will
ensure predictable and prudent fiscal and monetary policy
decisions even in the face of the profound challenges posed by
falling oil and other commodity prices," said Mr. Schiffer.
"These challenges are likely to drive the implementation of
necessary structural reforms in the aftermath of the credit
crisis."

Mr. Schiffer said the positive outlook applies to the Russian
government's Baa1 local and foreign currency bond ratings, the A2
country ceiling for foreign currency bonds and the Baa1 country
ceiling for foreign currency bank deposits.

The analyst also emphasized that Moody's will remain vigilant in
monitoring the government's creditworthiness in this period of
heightened global uncertainty, especially in light of continued
market dislocations in Russia and around the world.


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


* TURKEY: S&P Affirms BB-/B Foreign & BB/B Local Currency Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-/B'
foreign currency and 'BB/B' local currency sovereign credit
ratings on the Republic of Turkey.  At the same time, the 'BB+'
Transfer & Convertibility assessment on the Republic was affirmed.

"The external imbalances in the Turkish economy continue to
constrain the ratings," S&P's credit analyst Farouk Soussa said.
"We expect Turkey's current account to register a deficit of 7.3%
of GDP in 2008, up from 5.8% in 2007, as high oil prices in the
first half of 2008 continued to inflate the import bill."

The outlook for 2009 and beyond is mixed. While softening oil
prices are expected to benefit external balances, a weakening
global and, in particular, European economic outlook is likely to
have a negative effect on export growth.  Overall, S&P expects the
deficit to narrow in the medium term, to around 5% of GDP in 2009
and 4.5% in 2010, and real economic growth to soften to 3.4% in
2008.

In terms of current account financing, a key credit concern, S&P
expects net inward foreign direct investment to amount to roughly
28% of the current account deficit this year.  Portfolio inflows
have been volatile and are expected to remain so in the near term,
but S&P expects borrowing by the banking and, in particular, the
non-bank private sector will continue to ensure adequate financing
of the deficit.  While it has concerns regarding the open foreign
currency position of the non-bank private sector (net external
borrowing is currently around US$74 billion, or 10% of GDP), S&P
calculates that a significant proportion of this (around 50%)
comes from foreign branches of Turkish banks and from parent
company lending, which the rating agency0 expects will continue to
prove relatively resilient to global liquidity conditions.

Supporting the ratings are the Turkish government's track record
of sound economic and fiscal management and the significant
structural improvements these have yielded to Turkey's public
finances since 2001.  Banking sector resilience is also a key
support to the ratings.  Since significant restructuring of the
banking sector took place in 2002, and under the oversight of the
Banking Regulation and Supervisory Agency (BRSA), key banking
sector indicators have shown a marked strengthening.

The stable outlook on Turkey balances the Republic's significant
external imbalances against S&P's expectation that the resilience
of the banking sector and external financing to poor global
liquidity conditions will continue.

"The ratings may improve as the government continues to strengthen
long-term macroeconomic stability through fiscal and monetary
prudence, thereby supporting long-term investment and growth
prospects and reducing external vulnerabilities," Mr. Soussa said.
"The ratings could, however, come under downward pressure should
our current view of the banking sector's resilience or of the
adequacy of external financing change for the worse."


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


AFAMIYA LTD: Creditors Must File Claims by October 31
-----------------------------------------------------
Creditors of LLC Joint Ukrainian-Syrian Enterprise Afamiya Ltd
(code EDRPOU 19351452) have until Oct. 31, 2008, to submit proofs
of claim at:

         The Economic Court of Chernovcy
         O. Kobylianska Str. 14
         58000 Chernovcy
         Ukraine

The Economic Court of Chernovcy commenced bankruptcy supervision
procedure on the company on Aug. 26, 2008.  The case is docketed
as 9/51/b.

The Debtor can be reached at:

         LLC Joint Ukrainian-Syrian Enterprise Afamiya Ltd
         Krasnoarmeyskaya Str. 57
         Chernovcy
         Ukraine


BANK KHRESCHATYK: Fitch Chips UAH70MM Covered Bonds Rating to 'B'
-----------------------------------------------------------------
Fitch Ratings downgraded Bank Khreschatyk's UAH70 million covered
bonds issue to 'B' from 'B+' and affirmed its National Rating at
'A(ukr)'.

The rating action follows the downgrade of Ukraine's sovereign
rating (both foreign and local currency Issuer Default ratings
downgraded to 'B+' from 'BB-' on October 17, 2008 with Outlook
Negative), which is a key reference point used in Fitch's default
and cash flow analyses.  Therefore, the downgrade of the covered
bonds is primarily driven by negative macroeconomic trends rather
than by an observed deterioration in the quality of the underlying
collateral.  As at October 1, 2008, the covered bonds were secured
on a portfolio of mortgage loans amounting to UAH82.8 million,
resulting in nominal over-collateralization of 18.3%.

The agency believes borrowers are likely facing increased economic
difficulties and has therefore revised its assumptions of
foreclosure and loss severity, which, according to Fitch's
structured finance criteria for emerging markets, are tied to the
local currency rating of the sovereign.  Fitch has also revised
the stressed discount rates used to derive expected recoveries on
the covered bonds in the different rating scenarios.  To maintain
the previous rating on the covered bonds, the cover pool,
including legal minimum OC (11.1%), would therefore need to absorb
higher stress levels to capture increased systemic risk.

The 'B' rating on the covered bonds is based on Khreschatyk's
Long-term Issuer Default rating of 'B-' and a discontinuity factor
(D-Factor) of 100%, which indicates that the covered bonds have
the same probability of default as their issuer.  In addition, the
rating incorporates a one-notch uplift above the bank's IDR,
reflecting stressed recoveries on the covered bonds from the cover
pool in the 51% to 70% range.  Previously, stressed recoveries
from the cover pool were assumed in the 71% to 90% range in a 'B+'
scenario, justifying a two-notch uplift above the IDR, in
accordance with Fitch's rating methodology.

The covered bonds' National Rating has been affirmed at 'A(ukr)'
and is based on Khreschatyk's National Long-term Rating of 'BBB-
(ukr)' and on a recovery uplift of four notches above this rating.
In Fitch's view the downgrade of Ukraine's sovereign rating has no
significant impact on the relative expected performance of
Khreschatyk' s covered bonds compared to other debt instruments
issued out of Ukraine.

Fitch will continue to closely monitor Ukraine's economic
developments and the potential impact on the ratings of the
covered bonds.


DRUZHBA LLC: Creditors Must File Claims by October 31
------------------------------------------------------
Creditors of Agricultural LLC Druzhba (code EDRPOU 22778645) have
until Oct. 31, 2008, to submit proofs of claim at:

         V. Kunashenko
         Liquidator/Insolvency Manager
         Ap. 30
         Sheshukov Str. 10
         Shepetovka
         30400 Hmelnitsky
         Ukraine
         Tel: 8(03840)5-49-45

The Economic Court of Hmelnitskij commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 17, 2008.
The case is docketed as 4/68-B.

         The Economic Court of Hmelnitskij
         Nezalezhnosti Square 1
         29000 Hmelnitskij
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Druzhba
         Pluzhnoye
         Iziaslav District
         Hmelnitskij Region
         Ukraine


ENERGYRESOURCE LLC: Creditors Must File Claims by October 31
-----------------------------------------------------------
Creditors of LLC Energyresource (code EDRPOU 25392646) have until
Oct. 31, 2008, to submit proofs of claim at:

         V. Kirik
         Temporary insolvency manager
         Ap. 127
         Architect Verbitsky Str. 28
         Kiev
         Ukraine

The Economic Court of Kiev commenced the bankruptcy supervision
procedure on the company.  The case is docketed as 28/229-b.

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

The Debtor can be reached at:

         LLC Energyresource
         Ap. 70
         Tchekistov Lane 10
         Kiev
         Ukraine


FORUM LTD: Creditors Must File Claims by October 31
---------------------------------------------------
Creditors of LLC Forum Ltd (code EDRPOU 13439559) have until
Oct. 31, 2008, to submit proofs of claim at:

         Irene Chernilevskaya
         Liquidator
         Gagarin Avenue 32
         Dnepropetrovsk
         Ukraine
         Tel: 34-09-50

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on July
17, 2008.  The case is docketed as B 24/307-08.

         The Economic Court of Dnipropetrovsk
         Kujbishev Str. 1a
         49600 Dnipropetrovsk
         Ukraine

The Debtor can be reached at:

         LLC Forum Ltd
         Kirov Avenue 21
         Dniepropetrovsk
         Ukraine


INTELLEKT-SERVICE: Creditors Must File Claims by October 31
-----------------------------------------------------------
Creditors of LLC Intellekt-Service (code EDRPOU 31607604) have
until Oct. 31, 2008, to submit proofs of claim at:
         Viacheslav Letskan
         Temporary insolvency manager
         Ap. 42
         Dovzhenko Str. 16V
         03057 Kiev
         Ukraine

The Economic Court of Kiev commenced the bankruptcy supervision
procedure on the company.  The case is docketed as 28/205-b.

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

The Debtor can be reached at:

         LLC Intellekt-Service
         Pervomaysky Str. 11
         01023 Kiev
         Ukraine


ONIS LLC: Creditors Must File Claims by October 31
--------------------------------------------------
Creditors of LLC Company Onis (code EDRPOU 33488428) have until
Oct. 31, 2008, to submit proofs of claim at:

         O. Agafonov
         Liquidator/Insolvency Manager
         P.O. Box 88
         01024 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 11, 2008.
The case is docketed as B 2/169-08.

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

The Debtor can be reached at:

         LLC Company Onis
         Stovpiagi
         Pereyaslav-Hmelnitsky District
         Kiev
         Ukraine


UKRAINE AUTO: Fitch Cuts Rating on Class B Loan to 'B-'
-------------------------------------------------------
Fitch Ratings downgraded Ukraine Auto Loan Finance No. 1 Plc and
changed the Outlook on Class B to Negative from Stable.

  -- Class A (ISIN XS0364719640) downgraded to 'BB+' from 'BBB-';
     Outlook remains Negative

  -- Class B (ISIN XS0364720143) downgraded to 'B-' from 'B';
     Outlook changed to Negative from Stable.

The actions follow the downgrade of Ukraine's sovereign rating and
Country Ceiling (both downgraded to 'B+' on October 17, 2008),
both of which are key reference points used in Fitch's structured
finance criteria.  Therefore, the downgrade is primarily driven by
negative macro trends, rather than by an observed deterioration in
the performance of the underlying collateral.  However, the agency
believes borrowers in the securitized portfolio are likely to face
increasing financial difficulties, particularly if current
negative macro trends are sustained.  As such, the outlook for the
Class B notes was changed to Negative from Stable.

The transaction funds a portfolio of auto loans originated within
the Ukraine by CJSC Privatbank (rated 'B'/Outlook Stable), the
largest privately-owned bank in the country.  It closed in May
2008 and is still in its revolving period, allowing additional
purchases until May 2009 unless an early amortization is
triggered.  Only one reporting period has lapsed since closing, so
no clear performance trend can be derived.

The loans funded are denominated and disbursed in US$.  This
introduces two risks that, in the agency's view, have increased in
recent weeks.  First, authorities may disallow or suspend the
expatriation of foreign currency leading to a liquidity shock at
the issuer level.  Structural features including a cash reserve
and Transfer & Convertibility insurance support 18 months of
interest payments on the Class A notes.  In Fitch's view this
supports a three-notch differential above the Country Ceiling.
The downgrade on the Class A notes therefore maintains this
differential above the new Country Ceiling.

Second, stress in the consumer segment in Ukraine could trigger
interference by the authorities with contractually agreed payment
obligations.  In the event the sovereign is unable to prevent a
substantial devaluation of the Ukrainian Hryvna, obligors will be
confronted with rising payment obligations in UHF terms.  This
could prompt the authorities to re-denominate US$ debt into local
currency.  Depending on the conversion rate used and the
subsequent exchange rate movements, such intervention could lead
to collections falling short of their expected amounts in US$
terms.

The transaction has no structural protection against this risk.
As of today, it is unclear how the authorities would react if
these risks are realized.  However, in Fitch's view, the risk that
such measures will be considered, as the ongoing liquidity crisis
puts pressure on Ukraine's economy, has increased.  This is
reflected in today's rating action.

The downgrade was also prompted by a revision of the assumptions
on the rating default and loss rates, which are tied to the local
currency rating of the sovereign.  For the Class A notes this
means that loss assumptions for the 'BBB-' scenario are now
applicable at a 'BB+' level to maintain the three-notch distance
above the sovereign's rating.  As the available enhancement has
not shrunk since closing, the transaction can still withstand
these unchanged assumptions as detailed in the new issue report at
the new rating level of 'BB+'.

For the Class B notes, the downgrade on the sovereign has narrowed
the rating differential, implying the systemic risk to which the
portfolio is exposed has increased.  As such, the previous rating
of the Class B notes will only be sustainable if the notes could
absorb a higher default and loss severity.  Fitch deems a
cumulative default rate of 14% and a recovery rate of 36.6% to be
appropriate for a 'B' scenario while the available enhancement is
insufficient to support this revised loss expectation.  However,
according to the agency's calculation, the Class B notes can
withstand a cumulative default rate of 7.7% with a recovery rate
of 44%, which Fitch attaches to a 'B-' rating.

While the transaction's seasoning is too short to derive
meaningful performance information, the agency will continue to
monitor surrounding economic developments and their potential
impact on the transaction.


UKRAINE MORTGAGE: Fitch Trims Class B Loan Rating to 'B'
--------------------------------------------------------
Fitch downgraded Ukraine Mortgage Loan Finance No. 1 Plc and
changed the Outlook on Class B to Negative from Stable.

  -- Class A (ISIN XS0285818075) downgraded to 'BB+' from 'BBB-';
     Outlook remains Negative

  -- Class B (ISIN XS0285819123) downgraded to 'B' from 'B+';
     Outlook changed to Negative from Stable.

The actions follow the downgrades of Ukraine's sovereign rating
and Country Ceiling (both downgraded to 'B+' on 17 October 2008),
both of which are key reference points used in Fitch's structured
finance criteria.  Therefore, the downgrade is primarily driven by
the negative macro trends, rather than by an observed
deterioration in the performance of the underlying collateral.
However, the agency believes borrowers are likely facing increased
economic difficulties, which may increase if current negative
macro trends are sustained.  As such, the outlook for the Class B
has been changed to Negative from Stable.

The issuance funds a portfolio of mortgage loans originated within
Ukraine by CJSC Privatbank (rated 'B'/Outlook Stable), the largest
privately owned bank in the country.

The loans are denominated and disbursed in USD. This introduces
two risks that, in the agency's view, have increased over the past
weeks.  First, authorities may disallow or suspend the
expatriation of foreign currency, leading to a liquidity shock at
the issuer level.  Structural features including a cash reserve
and a Transfer & Convertibility insurance support 18 months of
interest payments on the Class A notes.  In Fitch's view this
supports a three-notch rating differential above the Country
Ceiling a measure of the likelihood of the introduction of T&C
restrictions.  The downgrade of the Class A notes therefore
maintains this distance above the new Country Ceiling.

Second, the stress in the consumer segment may trigger the
interference of public authorities with contractually agreed
payment obligations. In the event the sovereign is unable to
prevent a substantial devaluation of the Ukrainian Hryvna,
obligors will be confronted with rising payment obligations in UHF
terms.  This could prompt the authorities to re-denominate US$
debt into local currency.

Depending on the conversion rate used and the subsequent exchange
rate movements, such intervention could lead to collections
falling short of their expected amounts in USD terms.  The
transaction has no structural protection against this risk.  As of
today, it is unclear how the authorities would react if these
risks are realized.  However, in Fitch's view, the risk that such
measures will be considered has increased, as the ongoing
liquidity crisis puts pressure on Ukraine's economy.  This is
reflected in [the] rating action.

The downgrade of the Class B notes was prompted by a revision of
Fitch's assumptions of foreclosure and loss severity, which are
tied to the local currency rating of the sovereign.  To maintain
the previous rating, the Class B notes would need to absorb a
higher default and loss severity to capture the increased systemic
risk.

Based on the current portfolio reported by Privatbank, Fitch
determined a resulting weighted average foreclosure frequency of
58% for a 'BB+', 41.1% for a B+ and 28.2% for a 'B' scenario.
Market value declines were assumed at 78.7% (BB+), 66.9% (B+) and
62.2% (B) respectively, resulting in weighted average recovery
rates of 15.1% (BB+) , 34.9% (B+) and 41.1% for the 'B' scenario.
Fitch has tested these assumptions in its cash flow model.
Although credit enhancement has built up, the Class B does not
withstand the results from the RMBS default model tied to a B+
rating as stated above.  Testing the results for a 'B' scenario
shows that the payments due on the notes would be met in
accordance with the documentation.  Additionally, the rating on
the Class A notes was tested successfully using the assumptions
linked to a BB+ scenario.

The transaction closed in January 2007 and amortized in strict
sequential order.  So far, its reported performance has been
satisfactory.  No defaults have been reported since January 2008,
leaving the cumulative default ratio stable at 1.81%.  Early
delinquency buckets are still at a low level.

Fitch will continue to closely monitor Ukraine's economic
developments and their potential impact on the ratings of the
notes.


REPAIR SERVICE: Creditors Must File Claims by October 31
---------------------------------------------------------
Creditors of LLC Repair Service (code EDRPOU 31788266) have until
Oct. 31, 2008, to submit proofs of claim at:

         I. Shevchenko
         Liquidator/Insolvency Manager
         Kharkov Str. 4/172
         40024 Sumy
         Ukraine

The Economic Court of Sumy commenced bankruptcy proceedings
against the company after finding it insolvent on May 5, 2008.
The case is docketed as 7/138-08.

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

The Debtor can be reached at:

         LLC Repair Service
         40 Years of October Str. 49a
         40007 Sumy
         Ukraine


SIGMA-PLAST LLC: Creditors Must File Claims by October 30
---------------------------------------------------------
Creditors of LLC Sigma-Plast (code EDRPOU 35942385) have until
Oct. 30, 2008, to submit proofs of claim at:

         The Economic Court of Dnipropetrovsk
         Kujbishev Str. 1a
         49600 Dnipropetrovsk
         Ukraine

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
Sept. 15, 2008.  The case is docketed as B 29/186-08.

The Debtor can be reached at:

         The Economic Court of Dnipropetrovsk
         Kujbishev Str. 1a
         49600 Dnipropetrovsk
         Ukraine


SUPPLY INDUSTRIAL: Creditors Must File Claims by October 31
-----------------------------------------------------------
Creditors of LLC Supply Industrial Technics (code EDRPOU 34565740)
have until Oct. 31, 2008, to submit proofs of claim at:

         O. Tomashevsky
         Liquidator/Insolvency Manager
         Rabochaya Str. 7
         Nikolaev
         Ukraine
         Tel: (0512)36-72-27

The Economic Court of Nikolaev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 23, 2008.
The case is docketed as 5/417/08.

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

The Debtor can be reached at:

         LLC Supply Industrial Technics
         Lenin Avenue 171
         Nikolaev
         Ukraine


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


AD-AIR GROUP: Joint Liquidators Take Over Operations
----------------------------------------------------
Stephen Robert Cork and Joanne Elizabeth Milner of Smith &
Williamson Ltd. were appointed Oct. 13, 2008, joint administrators
of:

   -- Ad-Air Group plc (Company Number 3828522);
   -- Ad-Air UK Ltd. (Company Number 03828144); and
   -- Ad-Air Global Ltd. (Company Number 03828381).

The companies can be reached at:

         Ad-Air Global Ltd.
         1 Conduit Street
         London
         W1S 2XA
         England


ADVANCE MACHINERY: Taps Joint Administrators from Tenon Recovery
----------------------------------------------------------------
Jeremy Woodside and Christopher Ratten of Tenon Recovery were
appointed joint administrators of Advance Machinery Services Ltd.
(Company Number 03882322) on Oct. 14, 2008.

The company can be reached at:

         Advance Machinery Services Ltd.
         10 Colville Court
         Winwick Quay
         Warrington
         Cheshire
         WA2 8QT
         England


AIRTEK SCAFFOLDING: Taps BDO Stoy Hayward to Administer Assets
--------------------------------------------------------------
Simon Edward Jex Girling and Graham David Randall of BDO Stoy
Hayward LLP were appointed joint administrators of Airtek
Scaffolding Ltd. (Company Number 05699015) on Oct. 10, 2008.

The company can be reached at:

         Airtek Scaffolding Ltd.
         c/o BDO Stoy Hayward LLP
         One Victoria Street
         Bristol
         BS1 6AA
         England


AMERICAN INT'L: U.K. Clients Blame Banks on AIG-Related Losses
--------------------------------------------------------------
Chris Hughes, Investment Banking Correspondent (United Kingdom) at
The Financial Times, writes that banks are facing criticism over
possible losses suffered by thousands of their wealthy private
banking clients on a supposedly low-risk investment fund run by
American International Group Inc.

According to the report, the AIG Enhanced Fund suffered a run of
redemptions last month in the wake of the Lehman Brothers collapse
and the bail-out of AIG.  However, investors have been able to
liquidate only 50% of their holdings.

AIG has guaranteed investors will receive the rest in three years,
with the option of cashing out this year at a discount, the FT
notes.  Independent advisers estimate this discount could be 20%
to 50%.  At the mid-point, that would imply a collective loss of
nearly GBP1 billion (US$1.7 billion).

The product, the report says, was popular with rich investors in
the U.K., and financial advisers estimate that about two-thirds of
the fund, last valued at GBP5.5 billion, was sold through U.K.
private banking operations, including those of Barclays, Lloyds
TSB, UBS, Credit Suisse and Coutts, which is owned by Royal Bank
of Scotland.

Bankers estimated that the average investment in the fund was
about GBP750,000, although a large minority of clients were less-
wealthy investors, the FT relates.

As cited by the FT, Barclays said it had a dedicated team working
with AIG management to secure the best outcome for its clients,
while Lloyds said it wanted "to ensure that all AIG policyholders
made the most suitable choices with regards to their investments".

Coutts said it was also in discussions with AIG to understand the
situation so it could "advise each client accordingly", the FT
notes.  UBS and Credit Suisse declined to comment.  Jason Butler,
investment manager at Bloomsbury Financial Planning, said banks
should have taken more note of the risks involved.  "The
information was there for those who wanted to look, he said, the
FT reports.

The Financial Services Authority declined to comment, the FT adds.

               About American International Group

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

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

The Federal Reserve Bank of New York has extended to AIG a
revolving credit facility up to US$85 billion.  AIG's borrowings
under the revolving credit facility will bear interest, for each
day, at a rate per annum equal to three-month Libor plus 8.50%.
The revolving credit facility will have a 24-month term and will
be secured by a pledge of assets of AIG and various subsidiaries.
The revolving credit facility will contain affirmative and
negative covenants, including a covenant to pay down the facility
with the proceeds of asset sales.  The summary of terms also
provides for a 79.9% equity interest in AIG.

Standard & Poor's Ratings Services revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and the 'A+' counterparty credit
and financial strength ratings on most of AIG's insurance
operating subsidiaries -- to CreditWatch developing from
CreditWatch negative.

S&P raised its ratings on preferred stock of International Lease
Finance Corp. (ILFC; A-/Watch Dev/A-1) to 'BBB' from 'B', and
revised the CreditWatch implications to developing from negative.
All other ILFC ratings remain on CreditWatch with developing
implications.

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

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

                        *     *     *

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

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


ARKAGA HEALTHCARE: Calls in Joint Administrators from PwC
---------------------------------------------------------
Robert William Birchall and David Christian Chubb of
PricewaterhouseCoopers LLP were appointed joint administrators of
Arkaga Healthcare & Technology Holdings Ltd. (Company Number
03152195) and Arkaga Ltd. (Company Number 05209613) on Oct. 10,
2008.

The companies can be reached at:

         Arkaga Ltd.
         Ames House
         7 Duke of York Street
         London
         SW1Y 6LA
         England


BACH HOMES: Appoints Joint Administrators from Vantis
-----------------------------------------------------
P. R. Boyle and Jonathon Birch of Vantis plc were appointed joint
administrators of Bach Homes Holdings Ltd. (Company Number
04619153) on Oct. 6, 2008.

The company can be reached at:

         Bach Homes Holdings Ltd.
         4 St. Giles Court
         Southampton Street
         Reading
         Berkshire
         RG1 2QL
         England


BARLAND LTD: Taps Liquidators from BDO Stoy Hayward
---------------------------------------------------
David Harry Gilbert and Malcolm Cohen of BDO Stoy Hayward LLP were
appointed joint liquidators of Barland Ltd. on Oct. 3, 2008, for
the creditors' voluntary winding-up proceeding.

The company can be reached at:

         Barland Ltd.
         c/o BDO Stoy Hayward LLP
         55 Baker Street
         London
         W1U 7EU
         England


BORE ELECTRICAL: Brings in Liquidators from Moore Stephens
----------------------------------------------------------
Neil Henry of Lines Henry and Colin Andrew Prescott of Moore
Stephens were appointed joint liquidators of Bore Electrical
Services Ltd. on Oct. 7, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Bore Electrical Services Ltd.
         c/o Lines Henry
         Sixth Floor
         Grafton Tower
         Stamford New Road
         Altrincham
         WA14 1DQ
         England


BRITANNIA BULK: Moody's Reviews B2 CFR for Possible Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed the B2 Corporate Family
Rating (CFR) and Probability of Default Rating of Britannia Bulk
plc on review for possible downgrade.

"The review was prompted by Moody's concerns surrounding the
effects that the current negative market conditions for the dry
bulk shipping industry may have on the financial flexibility of
Britbulk, given its high exposure to the spot market," explains
Marco Vetulli, a Vice President-Senior Analyst in Moody's
Corporate Finance Group.

At the end of June 2008, Moody's assessed Britbulk's 2008
liquidity as acceptable.  At that date, the company had around
US$50 million in cash and generated operating cash flows of about
US$52 million.  Given the positive market conditions and
expectations for the dry bulk sector, Moody's expected that the
remaining quarters in 2008 would be roughly in line with Q2 2008,
with expected operating cash flow generation of around US$120
million-US$150 million.

"However, in light of the gradual deterioration in the market
conditions in the dry bulk shipping sector since the end of
September, due the combined effects of an economic slowdown and
the credit crunch, Moody's is now expecting the cash-flow
generation and the liquidity position of Britbulk to deteriorate
in the last months of 2008," says Mr. Vetulli.  "However, Moody's
realizes that, at this stage, it is difficult to estimate the
sustainability of the current unusual market conditions and its
impact on operating cash flow."

Moody's review will focus on these factors: (i) the trend in the
dry bulk shipping market; (ii) the company's overall operating
performance, in light of both the difficult trading conditions and
its exposure to the spot market; (iii) the measures the company is
undertaking to reverse the current negative trend; (iv) the
development of its liquidity profile; and (v) covenants in
compliance at the end of 2008.

The last rating action on Britbulk was taken on July 14, 2008,
when Moody's upgraded the company's CFR to B2 from B3.

Britbulk is a dry bulk shipping company with a primary focus on
the Baltic Northern European coal trade.  It is the market leader
in this niche, which has unique characteristics such as a
predominance of short-haul trades, substantial regulatory
requirements and icy conditions.  As of the end of June 2008,
Britbulk operated a fleet comprising 66 ships, of which it owns 13
dry bulk vessels, five barges and four tugs.  At year-end 2007, it
reported revenues of US$597 million.  It is 100% controlled by
Britannia Bulk Holding Inc.


BROOKLANDS EURO 2001-1: Fitch Slashes Class E Notes Rating to 'C'
-----------------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2001-1, following credit events on Landsbanki Islands and
Kaupthing Bank hf., and assigned Rating Outlooks as:

  -- Class A (ISIN XS0132520098) downgraded to 'BBB' from 'AAA';
     Outlook Negative

  -- Class B (ISIN XS0132520841) downgraded to 'B' from 'AA-';
     Outlook Negative

  -- Class C (ISIN XS0132521575) downgraded to 'CCC' from 'BBB'

  -- Class D (ISIN XS0132521906) downgraded to 'CC' from 'BBB-'

  -- Class E (ISIN XS0132525725) downgraded to 'C' from 'B+'

The rating downgrades follow the recent credit events on
Landsbanki Islands and Kaupthing Bank hf.  Each entity makes up
EUR20 million of the EUR998,718,750 reference portfolio.  A
previous credit event, WorldCom Inc in 2003, had led to a loss of
EUR1.2875 million reducing the portfolio balance from its initial
amount of EUR1 billion and writing down unrated Class F notes to
EUR4,218,750 (from EUR5.5 million at closing).

Using an estimated recovery rate of 15% for both Landsbanki
Islands and Kaupthing Bank, the recent credit events will result
in a EUR34 million loss.  Approximately EUR5 million of this loss
will be absorbed by the accrued interest of Class F and Class E
notes before the principal balances will be written down
respectively.  Losses in excess of Class E and F principal are
expected to reduce the Class D principal balance.

Further, the portfolio contains a combined 1.9% exposure to Ford
Motor Credit Company LLC and Ford Credit Europe Bank plc, rated
'CCC' which is currently on Rating Watch Negative.  Additionally,
using Fitch derived ratings, 11.9% of assets in the corporate
reference portfolio are currently on RWN and 9.6% on Negative
Outlook.

In addition to the corporate portfolio performance, approximately
1.2% of the portfolio is exposed to U.S. sub-prime RMBS securities
of the pre-2005 vintage and 7.4% of the portfolio is made up of
U.K. non-conforming RMBS.  Of the latter, six securities
comprising 2.3% of the portfolio are currently on RWN, making
future negative rating migration likely.  In addition, the
portfolio contains one U.S. commercial aircraft loan, rated 'B',
which is also on RWN.  Overall, 7.8% of the structured finance
portfolio is on RWN.

The issuer, Brooklands, is a special purpose vehicle incorporated
with limited liability under the laws of the Cayman Islands.
Brooklands provides protection to UBS AG, London Branch (rated
'AA-'/Outlook Negative/'F1+') on a portfolio of reference credits
with an initial notional value of EUR1 billion.

The ratings of the Class A to D notes address the full and timely
payment of interest and ultimate payment of principal.  The rating
of the Class E notes addresses a total return of 13.5% p.a.

Fitch announced proposals to change its rating methodology for
structured finance CDOs on October 14, 2008 and, at that time,
noted that the updated approach will apply to CDOs exposed to all
types of global structured finance assets following the issuance
of final criteria.  In this case, Fitch took rating action prior
to the finalization of SF CDO criteria due to the negative
portfolio performance.  This transaction is not expected to suffer
additional rating action due to the pending methodology change.

Fitch's Rating Outlook indicates the likely direction of any
rating change over a one- to two-year period and may be Positive,
Negative, Stable or, occasionally, Evolving.  More information is
available in Fitch's September 11, 2008 report 'Introducing Rating
Outlooks for U.S. Structured Finance Bonds'.


BROOKLANDS EURO 2002-1: Fitch Cuts Ratings on Nine Notes Classes
----------------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2002-1, following the recent credit events on Lehman Brothers
Holding Inc and Kaupthing Bank hf, and assigned Rating Outlooks
as:

  -- Class A+ (ISIN XS0238513344) downgraded to 'A' from 'AAA';
     Outlook Negative

  -- Class A (ISIN XS0148886913) downgraded to 'BB' from 'AAA';
     Outlook Negative

  -- Class B1 (ISIN XS0148887481) downgraded to 'B' from 'AA';
     Outlook Negative

  -- Class B2 (XS0148887721) downgraded to 'B' from 'AA'; Outlook
     Negative
  -- Class C (ISIN XS0148887994) downgraded to 'CCC' from 'BBB'

  -- Class D (ISIN XS0148888372) downgraded to 'CCC' from 'BBB-'

  -- Class E1 (ISIN XS0148888703) downgraded to 'CC' from 'BB'

  -- Class E2 (XS0148889180) downgraded to 'CC' from 'BB'

  -- Class G1 (ISIN XS0148948291) downgraded to 'B' from 'AA';
     Outlook Negative

  -- Class G2 (ISIN XS0148948705) paid-in-full

The downgrades follow the recent credit events on Lehman Brothers
Holding Inc (EUR13,532,835) and Kaupthing Bank hf (EUR20 million).
In its analysis Fitch uses an 8.6% and 15% estimated recovery rate
respectively.  The resulting loss of EUR29,365,628 is expected to
be absorbed by the accrued interest of unrated Class F notes
before writing down the principal balance.  As a result, Class F
notes will be written down to approximately EUR2 million from an
initial EUR30 million balance.

In addition to the corporate portfolio performance, approximately
5.5% of the portfolio is exposed to U.S. sub-prime RMBS securities
of the 2004 and 2005 vintage.  The three securities from the 2005
vintage are all rated 'CCC' and below.  Furthermore, 10.17% of the
portfolio is made up of U.K. non-conforming RMBS.  Future negative
rating migration is likely as 10 of the securities from this
sector, comprising 6.2% of the portfolio, are currently on RWN.
Overall, 9.5% of the structured finance portfolio is on RWN.

The Class G2 combination notes have been paid-in-full.  The rating
addressed the ultimate payment of principal and a total return of
1% p.a.  Interest payments to Class G2 above the 1% p.a. are used
to reduce the rated balance of the Class G2, while the actual
principal balance remains outstanding.  Class G2 is made up of
EUR1 million of Class E2, accruing interest at an annual rate of
11.855%, and EUR2 million of Class F, accruing interest at 21%
p.a.  As of the last payment date, in June 2008, the excess
interest reached EUR3 million.  Therefore the rated balance of
Class G2 has now been paid-in-full.

Brooklands is a special purpose vehicle incorporated with limited
liability under the laws of the Cayman Islands.  Brooklands
provides protection to UBS AG, London Branch ('AA-'/Outlook
Negative/'F1+') on a portfolio of reference credits with a
notional value of EUR1 billion.

The ratings of the Class A+ to E notes address the full and timely
payment of interest and ultimate payment of principal.  The
ratings of the Class G notes address the ultimate payment of
principal and a total return of 1% p.a.

Fitch announced proposals to change its rating methodology for
structured finance CDOs on 14 October 2008 and, at that time,
noted that the updated approach will apply to CDOs exposed to all
types of global structured finance assets following the issuance
of final criteria.  In this case, Fitch took rating action prior
to the finalization of SF CDO criteria due to the negative
portfolio performance.  This transaction is not expected to suffer
additional rating action due to the pending methodology change.

Fitch's Rating Outlook indicates the likely direction of any
rating change over a one- to two-year period and may be Positive,
Negative, Stable or, occasionally, Evolving.  More information is
available in Fitch's September 11, 2008 report 'Introducing Rating
Outlooks for U.S. Structured Finance Bonds'.


BROOKLANDS EURO 2002-2: Fitch Junks Ratings on Two Notes Classes
----------------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2002-2, following a recent downgrade of two US sub-prime RMBS
securities, and assigned Rating Outlooks as:

  -- Class SA2 (ISIN XS0159993905) downgraded to 'BBB' from 'AAA';
     Outlook Negative

  -- Class A1 (ISIN XS0159841989) downgraded to 'BB' from 'AAA';
     Outlook Negative

  -- Class A2 (ISIN XS0159842011) downgraded to 'B' from 'AA';
     Outlook Negative

  -- Class A3 (ISIN XS0159842284) downgraded to 'CCC' from 'A'

  -- Class A4 (ISIN XS0159842367) downgraded to 'CC' from 'BBB;
     removed from Rating Watch Negative

  -- Class B1 (ISIN XS0159842441) paid-in-full; Rating
     Watch Negative withdrawn

The downgrades follow the recent downgrade of two US sub-prime
RMBS securities to 'C'.  According to the definition of the
transaction documentation, the downgrade to a 'C' level
constitutes a credit event.  For both securities, BSABS 2005-HE12
M7 (EUR5 million exposure) and CWL 2005-13 MV7 (EUR10 million
exposure), Fitch expects a zero recovery rate, leading to a
combined loss of EUR15 million in the transaction.  This loss will
first be absorbed by the accrued interest of the unrated Class B2
notes before writing down the principal balance.  Following that,
any other losses will be absorbed by the accrued interest on Class
B1 and subsequently Class B1 principal.

Furthermore, the portfolio contains a further 7.6% of U.S. RMBS
securities of the 2004 and 2005 vintage.  In addition,
approximately 14.8% of the portfolio is exposed to U.K. non-
conforming RMBS securities.  Future negative rating migration is
likely as 10 of the securities from this sector, comprising 7.8%
of the portfolio, are currently on Rating Watch Negative.
Overall, using Fitch derived ratings, 14.8% of the portfolio is on
RWN.

As of the last payment date in June 2008, the rated Class B1
balance has been paid-in-full.  The rating of Class B1 addressed
the ultimate payment of principal.  Therefore any interest
payments received by Class B1 are used to reduce the rated
balance, while the actual principal balance remains outstanding.
Class B1 accrues interest at 20% p.a..  As of the last payment
date, in June 2008, the interest payments reached EUR17 million.
Therefore the rated balance of Class B1 has now been paid-in-full.

Brooklands is a special-purpose vehicle incorporated with limited
liability under the laws of Cayman Islands.  It provides
protection to UBS AG, London Branch ('AA-'/Outlook Negative/'F1+')
on a portfolio of asset-backed securities reference entities with
a notional value of EUR1 billion.  These are collateralized by
'AAA'-rated securities purchased pursuant to a repurchase
agreement.  Substitution of ABS reference portfolio entities is
permitted but subject to certain reference pool guidelines.  The
final maturity date is scheduled for December 2042.

The ratings of the Class SA2 to A4 notes address the full and
timely payment of interest and ultimate payment of principal.

Fitch announced proposals to change its rating methodology for
structured finance CDOs on October 14, 2008 and, at that time,
noted that the updated approach will apply to CDOs exposed to all
types of global structured finance assets following the issuance
of final criteria.  In this case, Fitch took rating action prior
to the finalization of SF CDO criteria due to the negative
portfolio performance.  This transaction is not expected to suffer
additional rating action due to the pending methodology change.

Fitch's Rating Outlook indicates the likely direction of any
rating change over a one- to two-year period and may be Positive,
Negative, Stable or, occasionally, Evolving.  More information is
available in Fitch's September 11, 2008 report 'Introducing Rating
Outlooks for U.S. Structured Finance Bonds'.


BROOKLANDS EURO 2004-1: Fitch Junks Ratings on Four Notes Classes
-----------------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2004-1, following the recent credit events on Lehman Brothers
Holding Inc and Kaupthing Bank hf., and assigned Rating Outlooks
as:

  -- Class A1-a (ISIN XS0193140901) downgraded to 'BBB' from
     'AAA'; Outlook Negative;

  -- Class A1-b (ISIN XS0193141388) downgraded to 'BBB' from
     'AAA'; Outlook Negative;

  -- Class A2 (ISIN XS0193141891) downgraded to 'BB' from 'AAA';
     Outlook Negative;

  -- Class B (ISIN XS0193142436) downgraded to 'B' from 'AA';
     Outlook Negative;

  -- Class C-E (ISIN XS0193142782) downgraded to 'CCC' from 'A';

  -- Class C-Y (ISIN XS0193142865) downgraded to 'CCC' from 'A';

  -- Class D (ISIN XS0193143590) downgraded to 'CCC' from 'BBB'
     and

  -- Class E (ISIN XS0193143913) downgraded to 'CC' from 'BB'.

The downgrades follow the recent credit events on Lehman Brothers
Holding Inc and Kaupthing Bank hf.  The entities represent 1.25%
and 1.15%, respectively, of the EUR750 million reference
portfolio.  Using an estimated recovery rate of 8.6% for Lehman
Brothers and 15% for Kaupthing Bank, the credit events result in a
combined loss of EUR15,897,656.  This loss will first be absorbed
by the accrued interest of unrated Class F notes before writing
down the principal balance to approximately EUR5 million from an
initial EUR18.75 million.

In addition to the corporate portfolio performance, approximately
9.89% of the portfolio is exposed to U.K. non-conforming RMBS
securities.  Future negative rating migration is likely as 11 of
the securities from this sector, comprising 8.4% of the portfolio,
are currently on Rating Watch Negative.  Furthermore,
approximately 5.5% of the portfolio is exposed to U.S. sub-prime
RMBS securities of the 2004 and 2005 vintage.  In addition, the
portfolio contains two SME CDOs which are also on RWN.  Overall,
using Fitch derived ratings, 14.1% of the structured finance
portfolio is on RWN.

The transaction represents a synthetic securitization of asset-
backed securities and corporate debt.  Brooklands has entered into
a credit swap with UBS AG, London Branch (UBS rated 'AA-'/Outlook
Negative/'F1+') and issued the notes listed above.  These are
collateralized by 'AAA'-rated securities, which have been
purchased pursuant to a repurchase agreement with UBS.

Under the credit swap, Brooklands agreed to make payments to UBS
of up to a maximum of EUR187.5 million plus the interest on the
unrated Class F notes for losses on a substitutable portfolio of
publicly- and privately-rated ABS reference securities and
corporate reference entities with a notional amount of EUR750
million.

The ratings of the Class A to E notes address the full and timely
payment of interest and ultimate payment of principal by the final
maturity.

Fitch announced proposals to change its rating methodology for
structured finance CDOs on October 14, 2008 and, at that time,
noted that the updated approach will apply to CDOs exposed to all
types of global structured finance assets following the issuance
of final criteria.  In this case, Fitch took rating action prior
to the finalization of SF CDO criteria due to the negative
portfolio performance.  This transaction is not expected to suffer
additional rating action due to the pending methodology change.

Fitch's Rating Outlook indicates the likely direction of any
rating change over a one- to two-year period and may be Positive,
Negative, Stable or, occasionally, Evolving.  More information is
available in Fitch's September 11, 2008 report 'Introducing Rating
Outlooks for U.S. Structured Finance Bonds'.


BROOKLANDS EURO 2005-1: Fitch Junks Ratings on Four Notes Classes
-----------------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2005-1, following recent credit events on Lehman Brothers Holding
Inc and Kaupthing Bank hf., and assigned Rating Outlooks as:

  -- Class A1 (ISIN XS0226765807) downgraded to 'BBB' from 'AAA';
     Outlook Negative

  -- Class A2 (ISIN XS0226770559) downgraded to 'BB' from 'AAA';
     Outlook Negative

  -- Class B (ISIN XS0226771102) downgraded to 'B' from 'AA';
     Outlook Negative

  -- Class C (ISIN XS0226776911) downgraded to 'CCC' from 'A'

  -- Class D1 (ISIN XS0226777133) downgraded to 'CC' from 'BBB'

  -- Class D2 (ISIN XS0226777216) downgraded to 'CC' from 'BBB'

  -- Class E (ISIN XS0226777729) downgraded to 'C' from 'BB'

The downgrades follow the recent credit events on Lehman Brothers
Holding Inc and Kaupthing Bank hf.  Each entity represented 2% of
the EUR1 billion reference portfolio.  Using an estimated recovery
rate of 8.6% for Lehman Brothers and 15% for Kaupthing Bank, the
credit events result in a combined expected loss of EUR35.274
million.  This loss will be first absorbed by the accrued interest
of the unrated Class F notes before writing down the principal
balance of Class F notes.  The Class F notes are expected to be
entirely eroded by the recent credit events, and remaining losses
are expected to reduce the Class E principal balance.

In addition to the corporate portfolio performance, approximately
9.4% of the portfolio is exposed to U.K. non-conforming RMBS
securities of 2005-2007 vintage.  Future negative rating migration
is likely as three of the securities from this sector comprising
1.8% of the portfolio are currently on Rating Watch Negative.  In
addition, the portfolio contains one German SME CDO which is also
on RWN.  Overall, using Fitch derived ratings, 3.6% of the
portfolio is on RWN and 12.6% is on Outlook Negative.

At closing, Brooklands, a special purpose vehicle, incorporated
under the laws of the Cayman Islands, entered into a credit
default swap with UBS AG, London Branch and issued EUR200m of
notes.  These notes are collateralized by securities rated 'AAA',
purchased pursuant to a repurchase agreement with UBS AG, London
Branch ("UBS" rated 'AA-'/Outlook Negative/'F1+').  Under the
credit default swap, Brooklands agreed to make payments to UBS (up
to a maximum of EUR200 million plus the interest accrued on the
unrated Class F notes) for losses on a substitutable portfolio of
corporate reference entities and ABS reference securities with an
initial notional amount of EUR1 billion.

The ratings of the Class A to E notes address the full and timely
payment of interest and ultimate payment of principal by the final
maturity.

Fitch announced proposals to change its rating methodology for
structured finance CDOs on October 14, 2008 and, at that time,
noted that the updated approach will apply to CDOs exposed to all
types of global structured finance assets following the issuance
of final criteria.  In this case, Fitch took rating action prior
to the finalization of SF CDO criteria due to the negative
portfolio performance.  This transaction is not expected to suffer
additional rating action due to the pending methodology change.

Fitch's Rating Outlook indicates the likely direction of any
rating change over a one- to two-year period and may be Positive,
Negative, Stable or, occasionally, Evolving.  More information is
available in Fitch's September 11, 2008 report 'Introducing Rating
Outlooks for U.S. Structured Finance Bonds'.


CASTLE FINANCE: S&P Removes WatchNeg & Withdraws CCC Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services has removed from CreditWatch
with negative implications and withdrawn its credit ratings on
five constant proportion debt obligation (CPDO) transactions
issued by Chess II Ltd. and Castle Finance I Ltd..

The actions follow the unwind of the notes at the noteholders'
request.

Ratings Removed From CreditWatch Negative And Withdrawn:

Castle Finance I Ltd.

  -- EUR60 Million Surf Constant Proportion Debt Obligation Notes
     Series 9

            CCC                  CCC/Watch Neg
            NR


CHEMIX LTD: Calls in Joint Administrators from Grant Thornton
-------------------------------------------------------------
David Riley and Les Ross of Grant Thornton UK LLP were appointed
joint administrators of Chemix Ltd. (Company Number 05838860) on
Oct. 9, 2008.

The company can be reached at:

         Chemix Ltd.
         Unit 32
         Vauxhall Industrial Estate
         Gregg Street
         Reddish
         Stockport
         SK5 3BR
         England


CHERRY TREE: Appoints Joint Administrators from PwC
---------------------------------------------------
Derek Anthony Howell, Dan Yoram Schwarzmann and Anthony Victor
Lomas of PricewaterhouseCoopers LLP were appointed joint
administrators of Cherry Tree Mortgages Ltd. (Company Number
05529374) on Oct. 13, 2008.

The company can be reached at:

         Cherry Tree Mortgages Ltd.
         6 Broadgate
         London
         EC2M 2QS
         England


CHESS II: S&P Removes Negative Watch & Withdraws Credit Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services has removed from CreditWatch
with negative implications and withdrawn its credit ratings on
five constant proportion debt obligation (CPDO) transactions
issued by Chess II Ltd. and Castle Finance I Ltd..

The actions follow the unwind of the notes at the noteholders'
request.

Ratings Removed From CreditWatch Negative And Withdrawn:

Chess II Ltd.

  -- US$100 Million Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 24

            B                    B/Watch Neg
            NR                   B

  -- JPY5 Billion Surf Constant Proportion Debt Obligation
     Floating-Rate Notes Series 26

            CCC                  CCC/Watch Neg
            NR                   CCC

  -- EUR10 Million WGZ INCO 2006 Constant Proportion Debt
     Obligation Notes Series 32

            CCC                  CCC/Watch Neg
            NR                   CCC

  -- EUR50 Million Constant Proportion Debt Obligation Notes
     Series 39

            BB                   BB/Watch Neg
            NR                   BB


COOLFAST LTD: Taps Joint Administrators from Tenon Recovery
-----------------------------------------------------------
Christopher Ratten and Jeremy Woodside of Tenon Recovery were
appointed joint administrators of Coolfast Ltd. (Company Number
4245975) on Oct. 10, 2008.

The company can be reached at:

         Coolfast Ltd.
         c/o Tenon Recovery
         Arkwright House
         Parsonage Gardens
         Manchester
         M3 2LF
         England


DOLPHIN CONTRACT: Joint Liquidators Take Over Operations
--------------------------------------------------------
Mark Newman and Vincent John Green of Vantis Business Recovery
Services were appointed joint liquidators of Dolphin Contract
Packers Ltd. on Oct. 9, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Dolphin Contract Packers Ltd.
         c/o Vantis Business Recovery Services
         Judd House
         16 East Street
         Tonbridge
         Kent
         TN9 1HG
         England


EXCALIBUR FUNDING: S&P Downgrades Rating on Class A Notes to BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered to 'BB+' from 'A'
its credit rating on the class A notes issued by Excalibur Funding
No.1 PLC.  This class remains on CreditWatch with negative
implications.

Lehman Brothers Inc. entities are involved in Excalibur Funding
No. 1 in a number of capacities, including as liquidity provider,
administrator of the collateral and hedge arrangements, undrawn
commitment funder, and swap counterparty.  On Sept. 17, following
rating actions on Lehman and related entities, S&P placed the
class A notes in this transaction on CreditWatch negative.

The rating action follows S&P's initial review of the implications
of Lehman's insolvency for the rating, and its concern that
defaults on swap or other arrangements could cause interest
payment shortfalls on the class A notes.

More specifically, if swaps are not in place by the next interest
payment date to hedge interest and currency differences, the
issuer could experience shortfalls in amounts required to meet
payments due under the notes.  If an alternative liquidity
provider is not in place by the next interest payment date, the
issuer will not have sources to draw on to fund such shortfalls.
Other obligations that rest with Lehman—such as the obligation to
fund undrawn commitments—could exacerbate these challenges and
increase risks to the noteholders.

S&P anticipates a range of likely options to be open to the
transaction parties and investors to deal with the issues raised
by the Lehman insolvency, ranging from finding alternative
counterparties and collateral managers to restructuring some or
all features of the transaction.

As it achieves greater visibility on the actions taken to counter
the counterparty issues, S&P will factor this into its analysis
of potential risks for the rated notes.  S&P will also continue
to closely monitor and evaluate information available to us on
the loans and performance of the assets securing this
transaction.

Excalibur Funding No.1 is a commercial real estate collateralized
debt obligation (CRE CDO) backed by a portfolio of pan-European
commercial real estate assets.


GLOBE PUB: Fitch Trims GBP57MM Class B1 Notes Rating to 'BB-'
-------------------------------------------------------------
Fitch Ratings downgraded Globe Pub Issuer Plc's notes as listed
below:

  -- GBP193.1 million Class A1 secured fixed/floating rate
     notes due 2033: downgraded to 'BBB-' from 'BBB+';
     Outlook remains Negative

  -- GBP57 million Class B1 secured floating rate notes due 2036:
     downgraded to 'BB-' from 'BBB-'; removed from Rating Watch
     Negative; Negative Outlook assigned

Globe is a whole business securitization of a portfolio of 425
tenanted and leased pubs owned by Globe Pub Company and managed by
Scottish and Newcastle Pub Enterprises.

The downgrade follows a recent performance review and discussions
with S&NPE's management.  It reflects Fitch's opinion on the
likely weakening performance of the transaction in a potentially
worsening UK macro-economic and retail environment.

The effects of the smoking ban and the continued price gap on
alcohol between the off-trade and the on-trade have led to further
severe declines in beer sales, rents and machine income for Globe.
The wet-led nature of the Globe estate means that tenants are
still not generating sufficient food sales to mitigate the decline
in beer sales, and are therefore receiving more beer discounts and
rent concessions to remain in operation.  In addition, the number
of short-term tenancies, reported as tenancies at will, as well as
the number of closures keeps increasing, while the number of pubs
on long-term leases is decreasing, introducing more pressure and
volatility on the overall rent roll of the transaction.

As a result, the trailing 12 months EBITDA as of August 30, 2008
of GBP25.6 million was down by almost 9% over the last two
quarters, showing an accelerated decline.  The effects of past and
recent refurbishment programs have not helped to reverse the
declining trend of the operating profit.  Fitch considers it
unlikely in the short- to medium-term that the Globe estate, in
its current size and form, will experience a deceleration or even
a reversal of EBITDA declines, particularly in a worsening UK
macro-economy climate and despite the negative effects of the
smoking ban fading away.  The agency has assumed similar to worse
EBITDA declines than the ones recently reported in the next two to
four quarters.

In the last reported financial quarter, Globe breached its
restricted payment condition, a structural protection for
noteholders, and the transaction has begun trapping cash.
However, this mechanism means that S&NPE will now receive a
smaller portion of management fees.


HILLCO CONSTRUCTION: Taps Vantis to Administer Assets
-----------------------------------------------------
Frank Wessely and Peter James Hughes-Holland of Vantis Business
Recovery Services were appointed joint administrators of Hillco
Construction Ltd. on Oct. 10, 2008.

The company can be reached at:

         Hillco Construction Ltd.
         Venture Court
         2 Debdale Road
         Wellingborough
         Northamptonshire
         NN8 5AA
         England


LEHMAN BROTHERS: Pension Scheme Enters the PPF Assessment Period
----------------------------------------------------------------
The Pension Protection Fund, on Oct. 22, confirmed that a section
of the Lehman Brothers Pension Scheme –- which covers Lehman
Brothers Ltd -- has entered the PPF's assessment period.

During the assessment, the PPF will work with trustees to make
sure that the details of all scheme members and their benefits
under the scheme are complete, up-to-date and accurate.

There is then a valuation of the scheme to check whether funding
is sufficient to buy benefits for members in excess of PPF levels.
Once assessment is complete, a scheme will either come to the PPF,
or be allowed to wind-up outside, by "buying out" benefits with an
insurance company.  The PPF aims to complete assessments for most
schemes within two years.

The Lehman Brothers Pension Scheme has around 2,400 members: 180
pensioners and 2,220 that have not yet retired.

Further information about the PPF assessment period and what
happens next can be found in the PPF leaflet "Your journey to
becoming a member of the Pension Protection Fund".

              About the Pension Protection Fund

The PPF -- http://www.pensionprotectionfund.org.uk/-- was set up
under the provisions of the Pensions Act 2004 in April 2005 and is
classified as a public financial corporation.  It has been
established to pay compensation to members of eligible defined
benefit and hybrid pension schemes when there has been a
qualifying insolvency event in relation to the employer, and where
there are insufficient assets in the pension scheme to cover
Pension Protection Fund levels of compensation.

                 About Lehman Brothers

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

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

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

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

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

             International Operations Collapse

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

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

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


MADDISON BISTROS: Appoints Liquidators from BDO Stoy Hayward
------------------------------------------------------------
David Henry Gilbert and Malcolm Cohen of BDO Stoy Hayward LLP were
appointed joint liquidators of Maddison Bistros Ltd. (formerly
Pastiche Bistro) on Oct. 3, 2008, for the creditors' voluntary
winding-up proceeding.

The company can be reached at:

         Maddison Bistros Ltd.
         c/o BDO Stoy Hayward LLP
         55 Baker Street
         London
         W1U 7EU
         England


NUCAM SYSTEMS: Calls in Joint Administrators from Tenon Recovery
----------------------------------------------------------------
Dilip K. Dattani and Patrick Ellward of Tenon Recovery were
appointed joint administrators of Nucam Systems Ltd. (Company
Number 03126251) on Oct. 13, 2008.

The company can be reached at:

         Nucam Systems Ltd.
         c/o Tenon Recovery
         1 Bede Island Road
         Bede Island Business Park
         Leicester
         LE2 7EA
         England


PASTICHE BISTRO: Appoints Liquidators from BDO Stoy Hayward
-----------------------------------------------------------
David Harry Gilbert and Malcolm Cohen of BDO Stoy Hayward LLP were
appointed joint liquidators of Pastiche Bistro (Franchising) Ltd.
on Oct. 3, 2008, for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         Pastiche Bistro (Franchising) Ltd.
         c/o BDO Stoy Hayward LLP
         55 Baker Street
         London
         W1U 7EU
         England


T. SMITH: Brings in Liquidators from BDO Stoy Hayward
-----------------------------------------------------
C. K. Rayment and M. Dunham of BDO Stoy Hayward LLP were appointed
joint liquidators of T. Smith (Furnishers) Ltd. on Oct. 8, 2008,
for the creditors' voluntary winding-up
proceeding.

The company can be reached at:

         T. Smith (Furnishers) Ltd.
         Old Bank Chambers
         582-586 Kingsbury Road
         Erdington
         England


TATA STEEL: S&P Shifts Outlook; Affirms BB-/B Corp. Credit Ratings
------------------------------------------------------------------
Standard & Poor's Ratings Services has revised its rating outlook
on Tata Steel U.K. Ltd. (TSUK) to stable from positive.  At the
same time, S&P affirmed the 'BB-' long-term and 'B' short-term
corporate credit ratings on the company.  S&P also affirmed the
'BB+' issue rating on senior secured notes totaling GBP3.67
billion issued by TSUK and its subsidiary Corus Nederland
B.V. (not rated).  The recovery rating is '1'.

"The outlook revision reflects the higher capital expenditure
plans of TSUK's parent Tata Steel Ltd. [BB/Stable/--] in India,
Tata Steel's overseas joint ventures in upstream resources to
secure raw materials, and uncertainties over the parent's equity-
raising plan of US$1 billion, given the prevailing capital market
conditions," said S&P's credit analyst Joey Chew.

The affirmed issue rating is two notches higher than the corporate
credit rating on TSUK to reflect the recovery rating of '1',
indicating recovery prospects of 90%-100%, as per S&P’s criteria.

For the fiscal year ended March 31, 2008, TSUK and its
subsidiaries reported an EBITDA margin of about 8.8%, which was
within S&P’s expectations.  TSUK has been able to pass some of the
higher costs for raw materials, such as iron ore, to its end
buyers.  The actual operating lease adjusted (OLA) ratio of funds
from operations (FFO) to total debt of 11.6% was below S&P’s
expectations, largely reflecting higher debt.  Weakening steel
demand and prices have led to further downward pressure on
operating margins and cash flows, and S&P therefore expects the
OLA ratio of FFO to debt to remain below 20%.


UPSTAIRS LTD: Appoints Liquidators from Smith & Williamson
----------------------------------------------------------
Adrian Paul Dante and Stephen John Tancock of Smith & Williamson
Ltd. were appointed joint liquidators of Upstairs (UK) Ltd. on
Oct. 10, 2008, for the creditors' voluntary winding-up procedure
proceeding.

The company can be reached at:

         Upstairs (UK) Ltd.
         c/o Smith & Williamson Ltd.
         First Floor
         89 King Street
         Maidstone
         Kent
         ME14 1BG
         England


VERTO DEVELOPMENTS: Taps BDO Stoy Hayward to Administer Assets
--------------------------------------------------------------
Francis Graham Newton and Dermot Justin Power of BDO Stoy Hayward
LLP were appointed joint administrators of Verto Developments Ltd.
(Company Number 05449980) on Oct. 8, 2008.


XPRESS FLOORS: Andrew Appleyard Leads Liquidation Procedure
-----------------------------------------------------------
Andrew Appleyard of Tenon Recovery was appointed liquidator of
Xpress Floors Ltd. on Oct. 9, 2008, for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         Xpress Floors Ltd.
         c/o Tenon Recovery
         6th Floor
         The White House
         111 New Street
         Birmingham
         B2 4EU
         England


* UNITED KINGDOM: Recession Nears and Insolvencies Rise, FT Says
----------------------------------------------------------------
Jeremy Grant at The Financial Times wrote that recession is
looming in the United Kingdom and company insolvencies is rising
with dwindling sales, eroding profit margins and defaulting
debtors.

Lynn Gibson, a partner at Gibson Hewitt, told the FT that more
people are walking into her office and asking for help.  According
to the government's Insolvency Service, compulsory liquidations -–
when creditors force a company into insolvency through court
action –- and voluntary liquidations rose 15% to 3,560 in the
second quarter, compared with a year earlier.  By themselves,
compulsory liquidations rose almost 20%.  Figures for the third
quarter are due in November, the FT notes.

As cited by the FT, Nigel Atkinson, head of the restructuring team
at Begbies Traynor, a restructuring specialist, said "The new
challenge is the lack of liquidity and the change in the risk
appetite at the banks, which may constrain purchasers' ability to
buy insolvent companies unless they are cash rich.  Properly
executed pre-packs go some way to mitigating this but you still
need to have buyers with finance out there."

David Kerr, chief executive of the Insolvency Practitioners
Association, said his organization has noticed a rise in the
number of administrators appointed to handle insolvencies "which,
in part, reflects that there are fewer opportunities for full
recovery", the FT relates.

Company directors should constantly review management accounts and
cash flows to ensure the viability of the business, the FT quoted
Clive Fortis, a director at Wiltshire-based insolvency practice
Middleton Partners, as saying.


* Mercer Says Defined Benefit Pension Schemes Still Face Risks
--------------------------------------------------------------
Despite current market volatility, using standard accounting
measures, defined benefit pension scheme funding levels have not
been hit as hard as drastic stock market falls might suggest,
according to the Mercer Pension Update report.  The report also
highlighted the increased threat of counterparty risk and
corporate insolvency as fall out from the economic crisis, and
called for greater diligence by trustees and companies.

According to the report, when measured using methods consistent
with the accounting standard IAS19, the aggregate FTSE350 pension
scheme surplus was GBP1 billion as of Sept. 30, 2008.  Taking
market movements up to October 10 into account, Mercer estimates
that despite asset falls of GBP39 billion, decreasing liabilities
have left this GBP1 billion surplus virtually unchanged.  In
comparison, there were deficits of GBP14 billion on Dec. 31, 2007
and GBP47 billion on June 30, 2008.

The report noted that there remains an investment bias towards
return-seeking assets so exposure to equity market volatility
still accounts for a substantial portion of total risk.  The
headline equity proportion was estimated at 47 percent for FTSE350
companies.  However, 25 percent of FTSE350 companies continue to
hold over 60 percent of their pension scheme assets in equities.
With September showing the largest one month fall in UK equities
for 10 years and a general 21 percent decline in UK equities over
the past 18 months, equity price movements will have a significant
impact on some schemes.

According to Deborah Cooper, principal in Mercer's retirement
business, "While undoubtedly distressing, snapshot calculations of
asset and liability values can paint a misleading picture to
members of defined benefit schemes, where the employer is obliged
to support the scheme.  Defined benefit scheme assets are held to
cover long-term liabilities that also fluctuate with market
movements.  It is therefore important to look at both asset and
liability values, and the employer's covenant, when considering
the impact of market volatility on pension scheme funding levels."

"Schemes have reduced their exposure to volatile 'return-seeking'
assets in recent years, with a marked increase in bond holdings,
but often for good reasons they remain considerably exposed to
equity markets.  Recent equity market falls have been offset – on
an accounting basis – by falls in liability values, so company
balance sheet liabilities will not have increased by as much as
was perhaps expected.  However this will not always be the case.
Those schemes most exposed to equity markets continue to present
the highest risk to their sponsoring employer – especially with
the uncertainty in global financial markets," Dr. Cooper added.

As of Sept. 30, 2008, the aggregate funding level of the FTSE350
was 100 percent.  By contrast, the funding levels on Dec. 31, 2007
and June 30, 2008 were 97 percent and 90 percent.  Between
Dec. 31, 2007 and Sept. 30, 2008 the funding level varied between
86 percent and 106 percent.

"Although the volatility of funding levels on an accounting basis
is of interest to trustees, they will be more concerned with
monitoring experience on their own basis, which will depend on the
employer's covenant.  Recent high profile corporate failures act
as a stark reminder of the very real risk of sponsoring employers
becoming insolvent, which could leave members with reduced
benefits if funding levels are low," cautioned Dr Cooper.

The current economic climate poses a significant risk to trustees
and plan sponsors.  With an increasing focus on risk management
and use of complex investment strategies, often involving the use
of derivative instruments, trustees and sponsoring employers can
become exposed to a wider range of covenant risk, albeit not
originating from the sponsoring employer.

Dr. Cooper commented, "This counterparty risk originates from
schemes' reliance on the ability of external entities to meet
their obligations and relates to positions in investments such as
swap contracts.  The demise of some of the world's largest banks
shows that, while risk can be mitigated and transferred,
eliminating it altogether is nearly impossible.

"Trustees must diligently measure and monitor the credit risk of
sponsoring employers as well as any counterparties the scheme
relies on.  Sponsoring employers should also be concerned, since
they are likely to be exposed to any shortfalls created by the
collapse of external counterparties."

                           About Mercer

Mercer is the global leader for trusted HR and related financial
advice, products and services.  In work with clients, Mercer makes
a positive impact on the world every day by enhancing the
financial and retirement security, health, productivity and
employment relationships of the global workforce.  Mercer has more
than 18,000 employees serving clients in over 180 cities and 40
countries and territories worldwide.


* S&P Analyzes Effects of Market Events on European CMBS Tranches
-----------------------------------------------------------------
Standard & Poor's Ratings Services has been analyzing both the
short and long-term impact of recent financial market events on
European commercial real estate finance in general and on European
commercial mortgage-backed securities (CMBS) in particular.

In a published article, S&P reviews key topics in a period of
exceptionally volatile credit and equity market conditions.

"In less than one month, we have seen major bank mergers,
effective nationalization of some financial institutions both in
U.S. and Europe, and, in the U.S., the two large remaining
investment banks opting for commercial bank status," said credit
analyst Ronan Fox.

Of specific note has been Lehman Brothers Holdings Inc.'s filing
for Chapter 11 bankruptcy protection on Sept. 15 and rating
changes on it and related entities.  Some of these entities have
acted in various capacities, including as swap counterparties and
tenant, within European commercial real estate securitizations.

"We held initial committees in early October in view of impending
interest payment dates.  We lowered the rating on some classes of
certain transactions in view of potential losses that could occur
if issuer level swap arrangements are not fulfilled,"  credit
analyst Michelle Weston said.  "We are continuing to work through
impact of the Lehman insolvency and anticipate that this could
result in rating actions through the capital structure in certain
transactions."

Ms. Weston added:  "Many tranches may need to remain on
CreditWatch as we await the resolution of outstanding issues,
including any ongoing replacement of Lehman's counterparty
obligations."


* BOND PRICING: For the Week Oct. 20 to Oct. 24, 2008
-----------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

AUSTRIA
-------
Republic of Austria       1.000    06/22/22     EUR      68.83

CYPRUS
------
Alfa MTN Iss              7.875    10/10/09     USD      74.43
Abh Financial Lt          8.200    06/25/12     USD      94.90
Alfa MTN Invest           9.250    06/24/13     USD      62.34

FRANCE
------
Alcatel S.A.              4.750    01/01/11     EUR      12.73
                          6.375    04/07/14     EUR      71.92
Altran Technologies S.A.  3.750    01/01/09     EUR      12.72
BNP Paribas               0.250    12/20/14     USD      73.35
Bouygues                  4.250    07/22/20     EUR      73.70
                          5.500    10/06/26     GBP      73.01
Calyon                    6.000    06/18/47     EUR      36.74
Credit Agricole           3.750    10/20/20     EUR      74.78
Soc Air France            2.750    04/01/20     EUR      18.51
Wavecom S.A.              1.750    01/01/14     EUR      19.21

GERMANY
-------
Bayer AG                  6.000    04/10/12     EUR     100.10
                          5.000    07/29/05     EUR      67.05

IRELAND
-------
Alfa Bank                 8.625    12/09/15     USD      72.35
Allied Irish Bks          5.625    11/29/30     GBP      63.45
                          5.250    09/10/25     GBP      66.90
Ardagh Glass              7.125    06/15/17     EUR     62.625
Banesto Finance Plc       6.120    11/07/37     EUR       6.12
Bank of Ireland           4.625    02/27/19     EUR      77.18
Bank Soyuz                9.375   02/16/10      USD      54.96

LUXEMBOURG
----------
Acergy SA                 2.250    10/11/13     USD      54.03
AK Bars Bank              8.250    06/28/10     USD      98.98
Alrosa Finance            8.875    11/17/14     USD      72.58
Bank of Moscow            7.335    05/13/13     USD      99.27
                          7.500    11/25/15     USD      54.87
                          6.807    05/10/17     USD      44.87
Beverage Pack             9.500    06/15/17     EUR      55.62
                          8.000    12/15/16     EUR      66.20
Breeze                    4.524    04/19/27     EUR      74.66

NETHERLANDS
-----------
ABN Amo Bank B.V.         4.650    06/04/18     USD      79.00
                          8.060    01/13/20     USD      30.50
                          6.000    03/16/35     EUR      54.55
Air Berlin Finance B.V.   1.500    04/11/27     EUR      25.02
ALB Finance BV            9.000    11/22/10     USD      37.34
                          8.750    04/20/11     USD      34.92
                          7.875    02/01/12     EUR      29.93
                          9.250    09/25/13     USD      34.89
Ardagh Glass Fin          8.875    07/01/13     EUR      74.12
Astana Finance            7.875    06/08/10     EUR      67.43
ATF Capital BV            9.250    02/21/14     USD      63.57
                          9.250    09/25/13     USD      47.33
Biopetrol Finance         4.000    02/21/12     EUR      47.50
BK Ned Gemeenten          0.500    06/27/18     CDN      66.49
                          0.500    02/24/25     CDN      45.98
Centercrdt Intl           8.625    01/30/14     USD      49.86
                          8.000    02/02/11     USD      97.53
JSC Bank Georgia          9.000    02/08/12     USD      66.54
Turanalem Fin BV          7.875    06/02/10     USD      98.54
                          6.250    09/27/11     EUR      72.29
                          7.750    04/25/13     USD      45.16
                          8.000    03/24/14     USD      37.16
                          8.500    02/10/15     USD      42.32
                          8.250    01/22/37     USD      47.13
                          8.250    01/22/37     USD      75.61

ROMANIA
-------
Bucharest                 4.125    06/22/15     EUR      75.61

RUSSIA
------
Sistema Capital           8.875    01/28/11     USD      74.45

SPAIN
-----
Auvisa                    4.790    12/15/27     EUR      70.30
Ayt Cedulas Caja          3.750    12/14/22     EUR      74.61
                          3.750    06/30/25     EUR      71.74
                          4.750    05/25/27     EUR      81.18

UKRAINE
-------
Azovstal                  9.125    02/28/11     USD      79.55

UNITED KINGDOM
--------------
Amlin Plc                 6.500     12/19/26    GBP      70.51
Anglian Water
  Finance Plc             2.400     04/20/35    GBP      47.51
Aspire Defence            4.670     03/31/40    GBP      59.21
                          4.670     03/31/40    GBP      59.17
Aviva Plc                 6.875     05/20/58    GBP      78.49
Bank Of India             6.625     09/22/21    USD      69.06
Barclays Bank Plc        11.650     05/20/10    USD      60.50
                          5.700     07/14/25    USD      67.98
                          5.750     09/14/26    GBP      79.17
Beazley Group             7.250     10/17/26    GBP      71.00
BL Super Finance          5.578     10/04/25    GBP      72.72
Bradford&Bin BLD          4.875     06/28/17    EUR      90.06
                          5.750     12/12/22    GBP       9.97
                          4.910     02/01/47    EUR      67.99
Brit Insurance            6.630     12/09/30    GBP      65.20
British Sky Broadcasting  6.000     0 5/21/27   GBP      75.57
Britannia Building
  Society                 5.875     03/28/33    GBP      64.24
                          5.750     12/02/24    GBP      67.40
British Land Co           5.005     09/24/35    GBP      71.37
British Tel Plc           5.750     12/07/28    GBP      74.96
Brixton Plc               6.000     09/30/19    GBP      77.67

Broadgate Finance         4.999     10/05/31    GBP      71.54
                          5.098     04/05/33    GBP      65.91
                          4.821     07/05/33    GBP      74.36
CGNU Plc                  6.125     11/16/26    GBP      68.46



                            *********

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

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

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

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

                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *